<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
PERFORMANCE SUMMARY
These performance results do not reflect any applicable surrender charges. Past
performance is no guarantee of future results.
<TABLE>
<CAPTION>
UNIT VALUE PERCENTAGE
-------------------------------------- CHANGE
DECEMBER 31, 1998 DECEMBER 31, 1999 IN UNIT VALUE
------------------ ------------------ -------------
<S> <C> <C> <C>
REGATTA - NY CONTRACTS:
Capital Appreciation Series........................ $26.0156 $34.0262 30.79%
Massachusetts Investors Trust Series............... 26.3767 27.8818 5.71
Government Securities Series....................... 13.3628 12.9237 (3.29)
High Yield Series.................................. 14.8376 15.6326 5.36
Managed Sectors Series............................. 21.7749 39.8571 83.04
Money Market Series................................ 11.9179 12.3026 3.23
Total Return Series................................ 18.9202 19.1850 1.40
Utilities Series................................... 22.7757 29.4815 29.44
Global Governments Series.......................... 13.9401 13.0332 (6.51)
Global Growth Series............................... 15.7177 25.9348 65.00
REGATTA GOLD - NY CONTRACTS:
Bond Series........................................ $10.0000* $ 9.8200 (1.80)%
Capital Appreciation Series........................ 17.2946 22.6198 30.79
Capital Opportunities Series....................... 13.5854 19.7776 45.58
Massachusetts Investors Trust Series............... 17.8458 18.8640 5.71
Emerging Growth Series............................. 16.7445 29.0322 73.38
Equity Income Series............................... 10.0000* 9.8814 (1.19)
Emerging Markets Equity Series..................... 6.0241 9.0591 50.38
International Growth and Income Series............. 12.8587 14.8716 15.65
International Growth Series........................ 9.4088 12.5550 33.44
Government Securities Series....................... 11.7627 11.3761 (3.29)
High Yield Series.................................. 11.7316 12.3601 5.36
Managed Sectors Series............................. 15.5700 28.4991 83.04
Massachusetts Investors Growth Stock Series........ 10.0000* 12.5684 25.68
Money Market Series................................ 10.8609 11.2115 3.23
New Discovery Series............................... 10.0000* 16.0007 60.01
Research Equity Series............................. 16.1649 19.7914 22.43
Research Growth and Income Series.................. 12.9195 13.7803 6.66
Total Return Series................................ 14.2649 14.4646 1.40
Utilities Series................................... 16.9849 21.9857 29.44
Global Asset Allocation Series..................... 12.2289 14.2950 16.90
Global Governments Series.......................... 11.4123 10.6699 (6.51)
Global Growth Series............................... 13.3854 22.0864 65.00
Global Total Return Series......................... 13.8923 14.8545 6.93
Research International Series...................... 10.0000* 13.3890 33.89
Strategic Income Series............................ 10.0000* 10.1388 1.39
</TABLE>
*Reflects unit value on date of commencement of operations.
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION
-- December 31, 1999
<TABLE>
<CAPTION>
ASSETS: Shares Cost Value
Investments in MFS/Sun Life Series Trust: ---------- ------------ ------------
<S> <C> <C> <C>
Bond Series ("BDS")........................... 2,223 $ 22,983 $ 23,019
Capital Appreciation Series ("CAS")........... 1,268,970 50,455,251 68,671,262
Capital Opportunities Series ("COS").......... 341,947 6,005,966 8,379,765
Massachusetts Investors Trust
Series ("MIT")............................... 2,215,014 73,099,558 84,056,690
Emerging Growth Series ("EGS")................ 1,210,772 24,390,687 48,766,246
Equity Income Series ("EIS").................. 20,989 233,420 235,312
Emerging Markets Equity Series ("FCE")........ 22,844 200,056 260,902
International Growth and Income
Series ("FCG")............................... 244,353 2,915,165 3,658,846
International Growth Series ("FCI")........... 52,608 549,211 689,190
Government Securities Series ("GSS").......... 1,134,922 14,628,898 14,160,417
High Yield Series ("HYS")..................... 1,819,714 16,941,717 16,406,832
Managed Sectors Series ("MSS")................ 476,576 13,898,436 24,982,869
Massachusetts Investors Growth Stock
Series ("MIS")............................... 223,552 3,029,734 3,606,164
Money Market Series ("MMS")................... 14,451,155 14,451,155 14,451,155
New Discovery Series ("NWD").................. 66,056 785,256 1,116,108
Research Series ("RES")....................... 1,664,118 34,365,132 45,953,316
Research Growth and Income Series ("RGS")..... 272,225 3,540,841 3,930,183
Total Return Series ("TRS")................... 3,009,919 58,054,457 56,463,869
Utilities Series ("UTS")...................... 836,049 13,434,543 16,586,517
Global Asset Allocation Series ("GAA")........ 229,657 3,330,990 3,718,432
Global Governments Series ("GGS")............. 329,964 3,698,910 3,387,421
Global Growth Series ("GGR").................. 787,249 12,110,429 19,807,693
Global Total Return Series ("GTR")............ 280,450 4,299,129 4,668,344
Research International Series ("RSS")......... 21,254 249,444 310,081
Strategic Income Series ("SIS")............... 23,705 240,087 243,111
------------ ------------
$354,931,455 $444,533,744
============
LIABILITY:
Payable to sponsor............................ (87,267)
------------
Net Assets................................ $444,446,477
============
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION
-- December 31, 1999 -- continued
<TABLE>
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C> <C>
Applicable to Owners of
Deferred Variable Annuity
Contracts Reserve
--------------------------------- for
Unit Variable
Units Value Value Annuities Total
--------- -------- ------------ ---------- ------------
Regatta-NY Contracts:
CAS............................ 952,236 $34.0262 $ 32,393,721 $ 142,506 $ 32,536,227
MIT............................ 751,259 27.8818 20,944,633 157,723 21,102,356
GSS............................ 602,006 12.9237 7,780,463 68,169 7,848,632
HYS............................ 258,754 15.6326 4,059,356 11,578 4,070,934
MSS............................ 281,981 39.8571 11,239,145 -- 11,239,145
MMS............................ 471,149 12.3026 5,791,559 131,322 5,922,881
TRS............................ 1,226,124 19.1850 23,519,273 595,702 24,114,975
UTS............................ 95,916 29.4815 2,828,657 75,924 2,904,581
GGS............................ 186,528 13.0332 2,433,790 -- 2,433,790
GGR............................ 326,782 25.9348 8,476,461 70,498 8,546,959
------------ ---------- ------------
$119,467,058 $1,253,422 $120,720,480
------------ ---------- ------------
Regatta Gold-NY Contracts:
BDS............................ 2,344 $ 9.8200 $ 23,019 $ -- $ 23,019
CAS............................ 1,596,747 22.6198 36,119,035 -- 36,119,035
COS............................ 423,782 19.7776 8,379,765 -- 8,379,765
MIT............................ 3,305,098 18.8640 62,347,967 578,790 62,926,757
EGS............................ 1,674,168 29.0322 48,603,185 163,621 48,766,806
EIS............................ 23,813 9.8814 235,312 -- 235,312
FCE............................ 28,793 9.0591 260,902 -- 260,902
FCG............................ 246,036 14.8716 3,658,846 -- 3,658,846
FCI............................ 53,996 12.5550 677,933 11,727 689,660
GSS............................ 553,951 11.3761 6,300,750 8,907 6,309,657
HYS............................ 988,547 12.3601 12,226,799 118,607 12,345,406
MSS............................ 478,856 28.4991 13,647,419 98,516 13,745,935
MIS............................ 275,481 12.5684 3,461,507 144,591 3,606,098
MMS............................ 760,178 11.2115 8,525,281 -- 8,525,281
NWD............................ 69,746 16.0007 1,116,108 -- 1,116,108
RES............................ 2,320,814 19.7914 45,932,494 21,677 45,954,171
RGS............................ 283,227 13.7803 3,912,610 18,294 3,930,904
TRS............................ 2,196,447 14.4646 31,759,890 539,321 32,299,211
UTS............................ 616,993 21.9857 13,586,288 93,613 13,679,901
GAA............................ 259,810 14.2950 3,718,432 -- 3,718,432
GGS............................ 89,314 10.6699 953,631 -- 953,631
GGR............................ 509,687 22.0864 11,258,287 -- 11,258,287
GTR............................ 310,409 14.8545 4,611,168 58,513 4,669,681
RSS............................ 23,159 13.3890 310,081 -- 310,081
SIS............................ 23,978 10.1388 243,111 -- 243,111
------------ ---------- ------------
$321,869,820 $1,856,177 $323,725,997
------------ ---------- ------------
Net Assets...................................... $441,336,878 $3,109,599 $444,446,477
============ ========== ============
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS
-- Year Ended December 31, 1999
<TABLE>
<CAPTION>
BDS CAS COS MIT EGS
Sub-Account(a) Sub-Account Sub-Account Sub-Account Sub-Account
-------------- -------------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $-- $ 5,810,381 $ 101,152 $ 5,978,256 $ 445,534
Mortality and expense risk charges.... (195) (667,713) (62,737) (971,422) (381,293)
Administrative charges................ (23) (80,126) (7,528) (116,571) (45,755)
-------- ----------- ---------- ----------- -----------
Net investment income (loss)...... $ (218) $ 5,062,542 $ 30,887 $ 4,890,263 $ 18,486
-------- ----------- ---------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 24,615 $11,692,286 $ 647,388 $11,676,424 $ 3,567,444
Cost of investments sold............ (25,162) (9,569,270) (526,253) (9,215,886) (1,957,595)
-------- ----------- ---------- ----------- -----------
Net realized gains (losses)....... $ (547) $ 2,123,016 $ 121,135 $ 2,460,538 $ 1,609,849
-------- ----------- ---------- ----------- -----------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ 36 $18,216,011 $2,373,799 $10,957,132 $24,375,559
Beginning of year................... -- 9,286,704 325,674 13,988,903 5,446,101
-------- ----------- ---------- ----------- -----------
Change in unrealized appreciation
(depreciation)................... $ 36 $ 8,929,307 $2,048,125 $(3,031,771) $18,929,458
-------- ----------- ---------- ----------- -----------
Realized and unrealized gains
(losses)....................... $ (511) $11,052,323 $2,169,260 $ (571,233) $20,539,307
-------- ----------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ (729) $16,114,865 $2,200,147 $ 4,319,030 $20,557,793
======== =========== ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
EIS FCE FCG FCI GSS
Sub-Account(b) Sub-Account Sub-Account Sub-Account Sub-Account
-------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 40 $ -- $ 101,373 $ 2,343 $ 704,364
Mortality and expense risk charges.... (1,034) (2,385) (41,055) (5,662) (174,324)
Administrative charges................ (124) (286) (4,927) (679) (20,919)
------- --------- ---------- -------- -----------
Net investment income (loss)...... $(1,118) $ (2,671) $ 55,391 $ (3,998) $ 509,121
------- --------- ---------- -------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 1,391 $ 121,994 $ 827,732 $ 86,841 $ 3,614,568
Cost of investments sold............ (1,416) (131,717) (691,019) (85,091) (3,633,956)
------- --------- ---------- -------- -----------
Net realized gains (losses)....... $ (25) $ (9,723) $ 136,713 $ 1,750 $ (19,388)
------- --------- ---------- -------- -----------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ 1,892 $ 60,846 $ 743,681 $139,979 $ (468,481)
Beginning of year................... -- (26,171) 445,284 (20,437) 480,350
------- --------- ---------- -------- -----------
Change in unrealized appreciation
(depreciation)................... $ 1,892 $ 87,017 $ 298,397 $160,416 $ (948,831)
------- --------- ---------- -------- -----------
Realized and unrealized gains
(losses)....................... $ 1,867 $ 77,294 $ 435,110 $162,166 $ (968,219)
------- --------- ---------- -------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ 749 $ 74,623 $ 490,501 $158,168 $ (459,098)
======= ========= ========== ======== ===========
</TABLE>
(a) For the period May 27, 1999 (commencement of operations) through December
31, 1999.
(b) For the period May 7, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements
4
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS
-- Year Ended December 31, 1999 -- continued
<TABLE>
<CAPTION>
HYS MSS MIS MMS NWD
Sub-Account Sub-Account Sub-Account(c) Sub-Account Sub-Account(c)
----------- ------------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $1,269,362 $ -- $ 3,998 $ 644,053 $ 2,042
Mortality and expense risk charges.... (193,655) (184,585) (11,642) (174,064) (4,051)
Administrative charges................ (23,239) (22,150) (1,397) (20,888) (486)
----------- ----------- ---------- ----------- --------
Net investment income (loss)...... $1,052,468 $ (206,735) $ (9,041) $ 449,101 $ (2,495)
----------- ----------- ---------- ----------- --------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $4,328,866 $ 2,323,657 $ 280,401 $35,664,346 $ 88,832
Cost of investments sold............ (4,414,808) (1,859,831) (237,839) (35,664,346) (84,652)
----------- ----------- ---------- ----------- --------
Net realized gains (losses)....... $ (85,942) $ 463,826 $ 42,562 $ -- $ 4,180
----------- ----------- ---------- ----------- --------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ (534,885) $11,084,433 $ 576,430 $ -- $330,852
Beginning of year................... (374,889) 503,220 -- -- --
----------- ----------- ---------- ----------- --------
Change in unrealized appreciation
(depreciation)................... $ (159,996) $10,581,213 $ 576,430 $ -- $330,852
----------- ----------- ---------- ----------- --------
Realized and unrealized gains
(losses)....................... $ (245,938) $11,045,039 $ 618,992 $ -- $335,032
----------- ----------- ---------- ----------- --------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ 806,530 $10,838,304 $ 609,951 $ 449,101 $332,537
=========== =========== ========== =========== ========
</TABLE>
<TABLE>
<CAPTION>
RES RGS TRS UTS
Sub-Account Sub-Account Sub-Account Sub-Account
------------ ----------- -------------- -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 1,385,984 $ 13,223 $ 8,540,338 $ 1,417,357
Mortality and expense risk charges.... (504,218) (47,936) (709,078) (160,642)
Administrative charges................ (60,506) (5,752) (85,089) (19,277)
----------- ---------- ------------ -----------
Net investment income (loss)...... $ 821,260 $ (40,465) $ 7,746,171 $ 1,237,438
----------- ---------- ------------ -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 5,548,641 $1,005,143 $ 15,351,457 $ 1,479,052
Cost of investments sold............ (4,077,574) (798,551) (15,533,160) (1,187,702)
----------- ---------- ------------ -----------
Net realized gains (losses)....... $ 1,471,067 $ 206,592 $ (181,703) $ 291,350
----------- ---------- ------------ -----------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $11,588,184 $ 389,342 $ (1,590,588) $ 3,151,974
Beginning of year................... 5,393,099 340,493 5,203,414 1,025,507
----------- ---------- ------------ -----------
Change in unrealized appreciation
(depreciation)................... $ 6,195,085 $ 48,849 $ (6,794,002) $ 2,126,467
----------- ---------- ------------ -----------
Realized and unrealized gains
(losses)....................... $ 7,666,152 $ 255,441 $ (6,975,705) $ 2,417,817
----------- ---------- ------------ -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ 8,487,412 $ 214,976 $ 770,466 $ 3,655,255
=========== ========== ============ ===========
</TABLE>
(c) For the period April 26, 1999 (commencement of operations) through December
31, 1999.
See notes to financial statements
5
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS
-- Year Ended December 31, 1999 -- continued
<TABLE>
<CAPTION>
GAA GGS GGR GTR RSS
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account(d)
----------- -------------- ------------ ----------- --------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $181,883 $ 517,917 $ 481,352 $ 365,326 $--
Mortality and expense risk charges.... (41,641) (51,037) (158,939) (58,435) (639)
Administrative charges................ (4,997) (6,124) (19,073) (7,012) (77)
-------- ----------- ----------- --------- -------
Net investment income (loss)...... $135,245 $ 460,756 $ 303,340 $ 299,879 $ (716)
-------- ----------- ----------- --------- -------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $464,681 $ 1,554,561 $ 1,721,822 $ 911,396 $ 5,437
Cost of investments sold............ (457,181) (1,677,256) (1,269,217) (810,515) (4,597)
-------- ----------- ----------- --------- -------
Net realized gains (losses)....... $ 7,500 $ (122,695) $ 452,605 $ 100,881 $ 840
-------- ----------- ----------- --------- -------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $387,442 $ (311,489) $ 7,697,264 $ 369,215 $60,637
Beginning of year................... (11,804) 321,853 1,004,669 455,472 --
-------- ----------- ----------- --------- -------
Change in unrealized appreciation
(depreciation)................... $399,246 $ (633,342) $ 6,692,595 $ (86,257) $60,637
-------- ----------- ----------- --------- -------
Realized and unrealized gains
(losses)....................... $406,746 $ (756,037) $ 7,145,200 $ 14,624 $61,477
-------- ----------- ----------- --------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $541,991 $ (295,281) $ 7,448,540 $ 314,503 $60,761
======== =========== =========== ========= =======
</TABLE>
<TABLE>
<CAPTION>
SIS
Sub-Account(e)
--------------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ --
Mortality and expense risk charges.... (587)
Administrative charges................ (70)
----------
Net investment income (loss)...... $ (657)
----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 625
Cost of investments sold............ (622)
----------
Net realized gains (losses)....... $ 3
----------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ 3,024
Beginning of year................... --
----------
Change in unrealized appreciation
(depreciation)................... $ 3,024
----------
Realized and unrealized gains
(losses)....................... $ 3,027
----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS........................... $ 2,370
==========
</TABLE>
(d) For the period August 2, 1999 (commencement of operations) through December
31, 1999.
(e) For the period September 10, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements
6
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BDS CAS COS
Sub-Account Sub-Account Sub-Account
------------- ------------------------- -----------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
------------- ------------------------- -----------------------
1999(a) 1999 1998 1999 1998
------------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (218) $ 5,062,542 $ 4,135,133 $ 30,887 $ 38,427
Net realized gains (losses)........... (547) 2,123,016 2,308,268 121,135 125,390
Net unrealized gains (losses)......... 36 8,929,307 4,241,790 2,048,125 303,992
------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets
from operations.................. $ (729) $16,114,865 $10,685,191 $2,200,147 $ 467,809
------- ----------- ----------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $16,159 $ 3,420,550 $ 5,645,231 $ 843,965 $1,250,849
Net transfers between Sub-Accounts
and Fixed Account.................. 7,594 855,474 2,271,423 2,140,661 1,000,555
Withdrawals, surrenders,
annuitizations and contract
charges............................ (5) (2,622,533) (3,030,676) (134,822) (59,775)
------- ----------- ----------- ---------- ----------
Net accumulation activity......... $23,748 $ 1,653,491 $ 4,885,978 $2,849,804 $2,191,629
------- ----------- ----------- ---------- ----------
Annuitization Activity:
Annuitizations...................... $-- $ -- $ -- $ -- $ --
Annuity payments and account fees... -- (34,018) (39,858) -- --
Adjustments to annuity reserve...... -- (3,331) (3,612) -- --
------- ----------- ----------- ---------- ----------
Net annuitization activity........ $-- $ (37,349) $ (43,470) $ -- $ --
------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $23,748 $ 1,616,142 $ 4,842,508 $2,849,804 $2,191,629
------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets... $23,019 $17,731,007 $15,527,699 $5,049,951 $2,659,438
NET ASSETS:
Beginning of year..................... -- 50,924,255 35,396,556 3,329,814 670,376
------- ----------- ----------- ---------- ----------
End of year........................... $23,019 $68,655,262 $50,924,255 $8,379,765 $3,329,814
======= =========== =========== ========== ==========
</TABLE>
(a) For the period May 27, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements
7
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIT EGS EIS
Sub-Account Sub-Account Sub-Account
------------------------- ------------------------- -------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
------------------------- ------------------------- -------------
1999 1998 1999 1998 1999(b)
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 4,890,263 $ 3,202,718 $ 18,486 $ 333,723 $ (1,118)
Net realized gains (losses)........... 2,460,538 2,485,135 1,609,849 835,449 (25)
Net unrealized gains (losses)......... (3,031,771) 5,752,777 18,929,458 4,205,232 1,892
----------- ----------- ----------- ----------- --------
Increase (Decrease) in net assets
from operations.................. $ 4,319,030 $11,440,630 $20,557,793 $ 5,374,404 $ 749
----------- ----------- ----------- ----------- --------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 6,834,904 $13,430,158 $ 2,616,690 $ 4,565,860 $151,100
Net transfers between Sub-Accounts
and Fixed Account.................. 2,960,318 8,538,077 1,809,663 3,478,850 83,765
Withdrawals, surrenders,
annuitizations and contract
charges............................ (3,220,067) (3,468,420) (1,197,519) (857,070) (302)
----------- ----------- ----------- ----------- --------
Net accumulation activity......... $ 6,575,155 $18,499,815 $ 3,228,834 $ 7,187,640 $234,563
----------- ----------- ----------- ----------- --------
Annuitization Activity:
Annuitizations...................... $ 304,547 $ 54,952 $ 157,333 $ -- $--
Annuity payments and account fees... (45,178) (32,919) (391) -- --
Adjustments to annuity reserve...... (5,651) (6,680) 560 -- --
----------- ----------- ----------- ----------- --------
Net annuitization activity........ $ 253,718 $ 15,353 $ 157,502 $ -- $--
----------- ----------- ----------- ----------- --------
Increase (Decrease) in net assets from
contract owner transactions.......... $ 6,828,873 $18,515,168 $ 3,386,336 $ 7,187,640 $234,563
----------- ----------- ----------- ----------- --------
Increase (Decrease) in net assets... $11,147,903 $29,955,798 $23,944,129 $12,562,044 $235,312
NET ASSETS:
Beginning of year..................... 72,881,210 42,925,412 24,822,677 12,260,633 --
----------- ----------- ----------- ----------- --------
End of year........................... $84,029,113 $72,881,210 $48,766,806 $24,822,677 $235,312
=========== =========== =========== =========== ========
</TABLE>
(b) For the period May 7, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements
8
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
FCE FCG FCI
Sub-Account Sub-Account Sub-Account
----------------------- ------------------------- -----------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
----------------------- ------------------------- -----------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (2,671) $ 8,551 $ 55,391 $ 48,659 $ (3,998) $ (978)
Net realized gains (losses)........... (9,723) (192,800) 136,713 54,032 1,750 (3,247)
Net unrealized gains (losses)......... 87,017 25,906 298,397 385,099 160,416 (16,888)
-------- --------- ---------- ---------- -------- --------
Increase (Decrease) in net assets
from operations.................. $ 74,623 $(158,343) $ 490,501 $ 487,790 $158,168 $(21,113)
-------- --------- ---------- ---------- -------- --------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 22,461 $ 99,812 $ 87,199 $ 364,428 $ 71,687 $182,841
Net transfers between Sub-Accounts
and Fixed Account.................. 28,083 (159,531) (346,722) 775,936 86,593 155,918
Withdrawals, surrenders,
annuitizations and contract
charges............................ (4,298) (6,955) (72,236) (151,648) (29,465) (10,066)
-------- --------- ---------- ---------- -------- --------
Net accumulation activity......... $ 46,246 $ (66,674) $ (331,759) $ 988,716 $128,815 $328,693
-------- --------- ---------- ---------- -------- --------
Annuitization Activity:
Annuitizations...................... $ -- $ -- $ -- $ -- $ 8,601 $ --
Annuity payments and account fees... -- -- -- -- (365) --
Adjustments to annuity reserve...... -- -- -- -- 470 --
-------- --------- ---------- ---------- -------- --------
Net annuitization activity........ $ -- $ -- $ -- $ -- $ 8,706 $ --
-------- --------- ---------- ---------- -------- --------
Increase (Decrease) in net assets from
contract owner transactions.......... $ 46,246 $ (66,674) $ (331,759) $ 988,716 $137,521 $328,693
-------- --------- ---------- ---------- -------- --------
Increase (Decrease) in net assets... $120,869 $(225,017) $ 158,742 $1,476,506 $295,689 $307,580
NET ASSETS:
Beginning of year..................... 140,033 365,050 3,500,104 2,023,598 393,971 86,391
-------- --------- ---------- ---------- -------- --------
End of year........................... $260,902 $ 140,033 $3,658,846 $3,500,104 $689,660 $393,971
======== ========= ========== ========== ======== ========
</TABLE>
See notes to financial statements
9
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GSS HYS MSS
Sub-Account Sub-Account Sub-Account
----------------------- ----------------------- -----------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
----------------------- ----------------------- -----------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 509,121 $ 450,379 $1,052,468 $ 659,931 $ (206,735) $ 1,542,181
Net realized gains (losses)........... (19,388) 128,171 (85,942) 149,897 463,826 126,624
Net unrealized gains (losses)......... (948,831) 216,285 (159,996) (979,019) 10,581,213 (541,372)
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets
from operations.................. $ (459,098) $ 794,835 $ 806,530 $ (169,191) $10,838,304 $ 1,127,433
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 396,896 $1,440,848 $ 897,338 $3,046,502 $ 693,821 $ 1,471,282
Net transfers between Sub-Accounts
and Fixed Account.................. 2,214,722 2,333,811 757,430 2,266,782 1,306,321 1,246,414
Withdrawals, surrenders,
annuitizations and contract
charges............................ (663,475) (1,525,871) (830,606) (1,309,324) (553,762) (917,266)
----------- ----------- ----------- ----------- ----------- -----------
Net accumulation activity......... $1,948,143 $2,248,788 $ 824,162 $4,003,960 $1,446,380 $ 1,800,430
----------- ----------- ----------- ----------- ----------- -----------
Annuitization Activity:
Annuitizations...................... $ 80,761 $ (8,935) $ 49,893 $ 86,382 $ -- $ 54,124
Annuity payments and account fees... (1,683) -- (32,097) (8,589) (7,635) (520)
Adjustments to annuity reserve...... (1,719) (83) 11,303 (1,717) (48) 2,259
----------- ----------- ----------- ----------- ----------- -----------
Net annuitization activity........ $ 77,359 $ (9,018) $ 29,099 $ 76,076 $ (7,683) $ 55,863
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets from
contract owner transactions.......... $2,025,502 $2,239,770 $ 853,261 $4,080,036 $1,438,697 $ 1,856,293
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in net assets... $1,566,404 $3,034,605 $1,659,791 $3,910,845 $12,277,001 $ 2,983,726
NET ASSETS:
Beginning of year..................... 12,591,885 9,557,280 14,756,549 10,845,704 12,708,079 9,724,353
----------- ----------- ----------- ----------- ----------- -----------
End of year........................... $14,158,289 $12,591,885 $16,416,340 $14,756,549 $24,985,080 $12,708,079
=========== =========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements
10
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MIS MMS NWD
Sub-Account Sub-Account Sub-Account
------------- ------------------------- -------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
------------- ------------------------- -------------
1999(c) 1999 1998 1999(c)
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (9,041) $ 449,101 $ 392,475 $ (2,495)
Net realized gains (losses)........... 42,562 -- -- 4,180
Net unrealized gains (losses)......... 576,430 -- -- 330,852
---------- ----------- ----------- ----------
Increase (Decrease) in net assets
from operations.................. $ 609,951 $ 449,101 $ 392,475 $ 332,537
---------- ----------- ----------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $1,545,594 $ 4,578,279 $ 6,979,970 $ 97,352
Net transfers between Sub-Accounts
and Fixed Account.................. 1,456,383 (5,081,749) 4,354,504 686,241
Withdrawals, surrenders,
annuitizations and contract
charges............................ (150,410) (1,932,080) (5,785,099) (22)
---------- ----------- ----------- ----------
Net accumulation activity......... $2,851,567 $(2,435,550) $ 5,549,375 $ 783,571
---------- ----------- ----------- ----------
Annuitization Activity:
Annuitizations...................... $ 144,646 $ 142,142 $ -- $ --
Annuity payments and account fees... -- (13,200) (2,231) --
Adjustments to annuity reserve...... (66) (2,910) (6) --
---------- ----------- ----------- ----------
Net annuitization activity........ $ 144,580 $ 126,032 $ (2,237) $ --
---------- ----------- ----------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $2,996,147 $(2,309,518) $ 5,547,138 $ 783,571
---------- ----------- ----------- ----------
Increase (Decrease) in net assets... $3,606,098 $(1,860,417) $ 5,939,613 $1,116,108
NET ASSETS:
Beginning of year..................... -- 16,308,579 10,368,966 --
---------- ----------- ----------- ----------
End of year........................... $3,606,098 $14,448,162 $16,308,579 $1,116,108
========== =========== =========== ==========
</TABLE>
(c) For the period April 26, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements
11
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RES RGS
Sub-Account Sub-Account
------------------------ ------------------------
Year Ended Year Ended
December 31, December 31,
------------------------ ------------------------
1999 1998 1999 1998
----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 821,260 $ 789,974 $ (40,465) $ (15,287)
Net realized gains (losses)........... 1,471,067 868,151 206,592 20,804
Net unrealized gains (losses)......... 6,195,085 3,827,961 48,849 313,342
----------- ----------- ---------- ----------
Increase (Decrease) in net assets
from operations.................. $8,487,412 $ 5,486,086 $ 214,976 $ 318,859
----------- ----------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $2,291,829 $ 5,661,381 $ 609,314 $ 955,442
Net transfers between Sub-Accounts
and Fixed Account.................. (693,664) 8,373,302 344,254 1,012,621
Withdrawals, surrenders,
annuitizations and contract
charges............................ (1,817,915) (1,448,446) (143,333) (41,336)
----------- ----------- ---------- ----------
Net accumulation activity......... $ (219,750) $12,586,237 $ 810,235 $1,926,727
----------- ----------- ---------- ----------
Annuitization Activity:
Annuitizations...................... $ 17,754 $ -- $ 17,630 $ --
Annuity payments and account fees... (722) -- (690) --
Adjustments to annuity reserve...... 855 -- 721 --
----------- ----------- ---------- ----------
Net annuitization activity........ $ 17,887 $ -- $ 17,661 $ --
----------- ----------- ---------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $ (201,863) $12,586,237 $ 827,896 $1,926,727
----------- ----------- ---------- ----------
Increase (Decrease) in net assets... $8,285,549 $18,072,323 $1,042,872 $2,245,586
NET ASSETS:
Beginning of year..................... 37,668,622 19,596,299 2,888,032 642,446
----------- ----------- ---------- ----------
End of year........................... $45,954,171 $37,668,622 $3,930,904 $2,888,032
=========== =========== ========== ==========
</TABLE>
See notes to financial statements
12
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
TRS UTS GAA
Sub-Account Sub-Account Sub-Account
----------------------- ----------------------- -----------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
----------------------- ----------------------- -----------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $7,746,171 $4,609,014 $1,237,438 $ 701,567 $ 135,245 $ 175,045
Net realized gains (losses)........... (181,703) 968,898 291,350 245,135 7,500 1,766
Net unrealized gains (losses)......... (6,794,002) (735,171) 2,126,467 215,730 399,246 (68,262)
----------- ----------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets
from operations.................. $ 770,466 $4,842,741 $3,655,255 $1,162,432 $ 541,991 $ 108,549
----------- ----------- ----------- ----------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $2,858,711 $5,723,954 $1,363,693 $3,379,684 $ 129,985 $ 451,961
Net transfers between Sub-Accounts
and Fixed Account.................. 74,433 7,589,931 1,025,946 2,309,074 (122,538) 357,692
Withdrawals, surrenders,
annuitizations and contract
charges............................ (4,105,250) (3,756,499) (619,970) (626,782) (110,545) (149,424)
----------- ----------- ----------- ----------- ---------- ----------
Net accumulation activity......... $(1,172,106) $9,557,386 $1,769,669 $5,061,976 $ (103,098) $ 660,229
----------- ----------- ----------- ----------- ---------- ----------
Annuitization Activity:
Annuitizations...................... $ 176,608 $ 395,341 $ 152,945 $ -- $ -- $ --
Annuity payments and account fees... (130,587) (79,366) (4,046) -- -- --
Adjustments to annuity reserve...... 2,654 (7,297) (2,035) -- -- --
----------- ----------- ----------- ----------- ---------- ----------
Net annuitization activity........ $ 48,675 $ 308,678 $ 146,864 $ -- $ -- $ --
----------- ----------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $(1,123,431) $9,866,064 $1,916,533 $5,061,976 $ (103,098) $ 660,229
----------- ----------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets... $ (352,965) $14,708,805 $5,571,788 $6,224,408 $ 438,893 $ 768,778
NET ASSETS:
Beginning of year..................... 56,767,151 42,058,346 11,012,694 4,788,286 3,279,539 2,510,761
----------- ----------- ----------- ----------- ---------- ----------
End of year........................... $56,414,186 $56,767,151 $16,584,482 $11,012,694 $3,718,432 $3,279,539
=========== =========== =========== =========== ========== ==========
</TABLE>
See notes to financial statements
13
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GGS GGR GTR
Sub-Account Sub-Account Sub-Account
----------------------- ----------------------- -----------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
----------------------- ----------------------- -----------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 460,756 $ (3,839) $ 303,340 $ 604,265 $ 299,879 $ 99,809
Net realized gains (losses)........... (122,695) 11,823 452,605 394,360 100,881 77,786
Net unrealized gains (losses)......... (633,342) 527,568 6,692,595 170,808 (86,257) 333,955
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets
from operations.................. $ (295,281) $ 535,552 $7,448,540 $1,169,433 $ 314,503 $ 511,550
---------- ---------- ----------- ----------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 65,900 $ 98,948 $ 480,062 $ 560,743 $ 206,272 $ 557,044
Net transfers between Sub-Accounts
and Fixed Account.................. (246,018) (43,239) 1,749,618 424,047 (375,311) 1,590,561
Withdrawals, surrenders,
annuitizations and contract
charges............................ (223,096) (640,532) (448,581) (826,884) (170,240) (174,073)
---------- ---------- ----------- ----------- ---------- ----------
Net accumulation activity......... $ (403,214) $ (584,823) $1,781,099 $ 157,906 $ (339,279) $1,973,532
---------- ---------- ----------- ----------- ---------- ----------
Annuitization Activity:
Annuitizations...................... $ -- $ -- $ 50,832 $ -- $ -- $ 58,314
Annuity payments and account fees... (1,638) (2,179) (1,021) -- (6,721) (560)
Adjustments to annuity reserve...... 16 (87) (2,143) -- 606 730
---------- ---------- ----------- ----------- ---------- ----------
Net annuitization activity........ $ (1,622) $ (2,266) $ 47,668 $ -- $ (6,115) $ 58,484
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets from
contract owner transactions.......... $ (404,836) $ (587,089) $1,828,767 $ 157,906 $ (345,394) $2,032,016
---------- ---------- ----------- ----------- ---------- ----------
Increase (Decrease) in net assets... $ (700,117) $ (51,537) $9,277,307 $1,327,339 $ (30,891) $2,543,566
NET ASSETS:
Beginning of year..................... 4,087,538 4,139,075 10,527,939 9,200,600 4,700,572 2,157,006
---------- ---------- ----------- ----------- ---------- ----------
End of year........................... $3,387,421 $4,087,538 $19,805,246 $10,527,939 $4,669,681 $4,700,572
========== ========== =========== =========== ========== ==========
</TABLE>
See notes to financial statements
14
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RSS SIS
Sub-Account Sub-Account
------------- -------------
Year Ended Year Ended
December 31, December 31,
------------- -------------
1999(d) 1999(e)
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (716) $ (657)
Net realized gains (losses)........... 840 3
Net unrealized gains (losses)......... 60,637 3,024
-------- --------
Increase (Decrease) in net assets
from operations................... $ 60,761 $ 2,370
-------- --------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.......... $ 45,451 $240,741
Net transfers between Sub-Accounts
and Fixed Account.................. 205,489 --
Withdrawals, surrenders,
annuitizations and contract
charges............................ (1,620) --
-------- --------
Net accumulation activity......... $249,320 $240,741
-------- --------
Annuitization Activity:
Annuitizations...................... $-- $--
Annuity payments and account fees... -- --
Adjustments to annuity reserve...... -- --
-------- --------
Net annuitization activity........ $-- $--
-------- --------
Increase (Decrease) in net assets from
contract owner transactions.......... $249,320 $240,741
-------- --------
Increase (Decrease) in net assets... $310,081 $243,111
NET ASSETS:
Beginning of year..................... -- --
-------- --------
End of year........................... $310,081 $243,111
======== ========
</TABLE>
(d) For the period August 2, 1999 (commencement of operations) through
December 31, 1999.
(e) For the period September 10, 1999 (commencement of operations) through
December 31, 1999.
See notes to financial statements
15
<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 ("MFS"), an
affiliate of Sun Life Assurance Company of Canada (U.S.), is the 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 taxable, and
therefore, no provision has been made for federal income taxes.
16
<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.
17
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS
<TABLE>
<CAPTION>
Units Transferred
Between Units Withdrawn,
Units Outstanding Sub-Accounts Surrendered and
Beginning of Year Units Purchased and Fixed Account Annuitized
------------------------- ------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MFS REGATTA
- N.Y. CONTRACTS:
----------------------------------
CAS Sub-Account..... 1,030,044 1,098,819 61 -- (26,735) 16,251 (51,134) (85,026)
MIT Sub-Account..... 759,522 806,893 -- -- 21,064 16,355 (29,327) (63,726)
GSS Sub-Account..... 516,775 617,817 -- -- 120,671 6,548 (35,440) (107,590)
HYS Sub-Account..... 299,433 340,853 -- -- (15,972) 10,788 (24,707) (52,208)
MSS Sub-Account..... 294,045 314,374 -- -- (215) 3,793 (11,849) (24,122)
MMS Sub-Account..... 529,219 540,785 -- -- 42,161 428,614 (100,231) (440,180)
TRS Sub-Account..... 1,320,198 1,439,364 88 -- (9,988) (6,574 ) (84,174) (112,592)
UTS Sub-Account..... 88,196 103,362 -- -- 11,209 1,434 (3,489) (16,600)
GGS Sub-Account..... 219,014 277,498 -- -- (20,497) (17,719 ) (11,989) (40,765)
GGR Sub-Account..... 327,055 384,999 -- -- 11,581 (16,241 ) (11,854) (41,703)
MFS REGATTA
GOLD - N.Y. CONTRACTS:
----------------------------------
BDS Sub-Account(a).. -- -- 1,642 -- 702 -- -- --
CAS Sub-Account..... 1,387,198 933,956 188,906 377,035 85,637 155,695 (64,994) (79,488)
COS Sub-Account..... 245,193 61,777 53,060 103,389 134,413 85,059 (8,884) (5,032)
MIT Sub-Account..... 2,936,804 1,722,218 378,202 833,525 124,941 504,212 (134,849) (123,151)
EGS Sub-Account..... 1,482,470 966,583 140,252 324,632 110,205 255,069 (58,759) (63,814)
EIS
Sub-Account(b)..... -- -- 15,360 -- 8,484 -- (31) --
FCE Sub-Account..... 23,240 41,861 2,946 11,240 3,183 (28,912 ) (576) (949)
FCG Sub-Account..... 272,201 188,749 6,646 32,884 (27,235) 64,726 (5,576) (14,158)
FCI Sub-Account..... 41,872 9,227 7,232 18,569 8,088 15,201 (3,196) (1,125)
GSS Sub-Account..... 483,528 168,798 34,691 125,717 53,163 199,497 (17,431) (10,484)
HYS Sub-Account..... 869,291 482,767 73,815 256,362 82,266 176,263 (36,825) (46,101)
MSS Sub-Account..... 401,019 251,868 37,591 98,329 53,417 80,721 (13,171) (29,899)
MIS
Sub-Account(c)..... -- -- 149,516 -- 138,031 -- (12,066) --
MMS Sub-Account..... 921,204 395,655 424,895 653,207 (511,872) (65,544 ) (74,049) (62,114)
NWD Sub-Account(c).. -- -- 8,312 -- 61,436 -- (2) --
RES Sub-Account..... 2,330,245 1,478,012 136,515 388,372 (38,961) 566,075 (106,985) (102,214)
RGS Sub-Account..... 222,849 59,221 45,362 81,967 26,016 85,163 (11,000) (3,502)
TRS Sub-Account..... 2,154,305 1,288,455 198,169 424,309 15,680 571,586 (171,707) (130,045)
UTS Sub-Account..... 529,135 187,310 74,691 214,542 42,317 144,840 (29,150) (17,557)
GAA Sub-Account..... 267,873 215,473 10,414 36,286 (9,790) 28,666 (8,687) (12,552)
GGS Sub-Account..... 90,226 73,436 6,166 9,445 (1,143) 17,520 (5,935) (10,175)
GGR Sub-Account..... 402,319 324,362 30,765 44,685 91,578 53,301 (14,975) (20,029)
GTR Sub-Account..... 334,013 181,210 14,856 43,452 (26,106) 122,655 (12,354) (13,304)
RSS Sub-Account(d).. -- -- 4,409 -- 18,889 -- (139) --
SIS
Sub-Account(e)..... -- -- 23,978 -- -- -- -- --
<CAPTION>
Units Outstanding
End of Year
-------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998
------------ ------------
<S> <C> <C>
MFS REGATTA
- N.Y. CONTRACTS:
--------------------
CAS Sub-Account..... 952,236 1,030,044
MIT Sub-Account..... 751,259 759,522
GSS Sub-Account..... 602,006 516,775
HYS Sub-Account..... 258,754 299,433
MSS Sub-Account..... 281,981 294,045
MMS Sub-Account..... 471,149 529,219
TRS Sub-Account..... 1,226,124 1,320,198
UTS Sub-Account..... 95,916 88,196
GGS Sub-Account..... 186,528 219,014
GGR Sub-Account..... 326,782 327,055
MFS REGATTA
GOLD - N.Y. CONTRACT
--------------------
BDS Sub-Account(a).. 2,344 --
CAS Sub-Account..... 1,596,747 1,387,198
COS Sub-Account..... 423,782 245,193
MIT Sub-Account..... 3,305,098 2,936,804
EGS Sub-Account..... 1,674,168 1,482,470
EIS
Sub-Account(b)..... 23,813 --
FCE Sub-Account..... 28,793 23,240
FCG Sub-Account..... 246,036 272,201
FCI Sub-Account..... 53,996 41,872
GSS Sub-Account..... 553,951 483,528
HYS Sub-Account..... 988,547 869,291
MSS Sub-Account..... 478,856 401,019
MIS
Sub-Account(c)..... 275,481 --
MMS Sub-Account..... 760,178 921,204
NWD Sub-Account(c).. 69,746 --
RES Sub-Account..... 2,320,814 2,330,245
RGS Sub-Account..... 283,227 222,849
TRS Sub-Account..... 2,196,447 2,154,305
UTS Sub-Account..... 616,993 529,135
GAA Sub-Account..... 259,810 267,873
GGS Sub-Account..... 89,314 90,226
GGR Sub-Account..... 509,687 402,319
GTR Sub-Account..... 310,409 334,013
RSS Sub-Account(d).. 23,159 --
SIS
Sub-Account(e)..... 23,978 --
</TABLE>
(a) For the period May 27, 1999 (commencement of operations) through December
31, 1999.
(b) For the period May 7, 1999 (commencement of operations) through
December 31, 1999.
(c) For the period April 26, 1999 (commencement of operations) through December
31, 1999.
(d) For the period August 2, 1999 (commencement of operations) through December
31, 1999.
(e) For the period September 10, 1999 (commencement of operations) through
December 31, 1999.
18
<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 Bond Sub-Account,
Capital Appreciation Sub-Account, Capital Opportunities Sub-Account,
Massachusetts Investors Trust Sub-Account, Emerging Growth Sub-Account, Equity
Income Sub-Account, Emerging Markets Equity Sub-Account, International Growth
Sub-Account, International Growth and Income Sub-Account, Government Securities
Sub-Account, High Yield Sub-Account, Managed Sectors Sub-Account, Massachusetts
Investors Growth Stock Sub-Account, Money Market Sub-Account, New Discovery
Sub-Account, Research Sub-Account, Research Growth and Income Sub-Account, Total
Return Sub-Account, Utilities Sub-Account, Global Asset Allocation Sub-Account,
Global Governments Sub-Account, Global Growth Sub-Account, Global Total Return
Sub-Account, Research International Series Sub-Account, and Strategic Income
Series Sub-Account of Sun Life (N.Y.) Variable Account C (the "Sub-Accounts") as
of December 31, 1999, the related statement of operations for the year then
ended and the statements of changes in net assets for the years ended
December 31, 1999 and 1998. These financial statements are the responsibility of
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities held at December 31, 1999 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Sub-Accounts as of December 31, 1999,
the results of their operations and the changes in their net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 10, 2000
----------------------------------------
This report is prepared for the general information of contract owners. It is
authorized for distribution to prospective purchasers only when preceded or
accompanied by an effective prospectus.
<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
122 E. 42nd Street, Suite 1900, New York, NY 10017
DIRECTORS AND OFFICERS
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, President and Director
JAMES A. McNULTY, III, Senior Vice President and
General Manager and Director
S. CAESAR RABOY, Director
RICHARD B. BAILEY, Director
M. COLYER CRUM, Director
DAVID D. HORN, Director
JOHN G. IRELAND, Director
GREGORY W. GEE, Director
DONALD B. HENDERSON, JR., Director
ANGUS A. MacNAUGHTON, Director
PETER R. O'FLINN, Director
FIORAVANTE G. PERROTTA, Director
RALPH F. PETERS, Director
FREDERICK B. WHITTEMORE, Director
PETER F. DEMUTH, Vice President,
Chief Counsel and Assistant Secretary
ELLEN B. KING, Counsel and Secretary
ROBERT P. VROLYK, Vice President and
Actuary
DAVEY S. SCOON, Vice President, Finance,
Controller and Treasurer
JAMES M. A. ANDERSON, Vice President, Investments
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, MA 02481
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street, Boston, MA 02116
[LOGO]
ANNUAL REPORT, DECEMBER 31, 1999
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
RENY2-2/00 8M
