<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
33-58482
For Quarter Ended March 31, 1995 Commission File Number 33-1079
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
(Exact name of registrant as specified in its charter)
NEW YORK 04-2845273
(State or other jurisdiction of (IRS Employer I.D. No.)
incorporation or organization)
80 BROAD STREET, NEW YORK, N.Y. 10004
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code (212) 943-3855
NONE
Former name, former address, and former fiscal year,
if changed since last report
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
(1) Yes /X/ No / /
(2) Yes /X/ No / /
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)
(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT PERMITTED BY INSTRUCTION H.
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SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
INDEX
Page
Number
Part I: Financial Information
Item 1: Financial Statements:*
Balance Sheets -
March 31, 1995 and December 31, 1994 3
Statements of Operations -
Three Months Ended
March 31, 1995 and March 31, 1994 4
Statements of Capital Stock and Surplus -
Three Months Ended
March 31, 1995 and March 31, 1994 5
Statements of Cash Flows -
Three Months Ended
March 31, 1995 and March 31, 1994 6
Notes to Unaudited Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
Part II: Other Information
NONE
* The balance sheet at December 31, 1994 has been taken from the
audited financial statements at that date. All other statements are
unaudited.
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Item 1. Financial Statements
Sun Life Insurance and Annuity Company of New York
Balance Sheets
<TABLE>
<CAPTION>
(Unaudited) (See note below)
March 31, December 31,
1995 1994
-------------- -------------------
<S> <C> <C>
ASSETS
Bonds $ 173,799,971 $ 188,460,195
Mortgage loans 62,351,294 63,377,327
Real estate 819,619 823,655
Policy loans 484,797 520,383
Cash 435,742 (756,378)
Investment income due and accrued 4,010,257 4,393,086
Other assets 200,918 1,512,498
------------- ----------------
General account assets 242,102,598 258,330,766
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Separate account assets
Unitized 218,709,058 210,706,368
Non-unitized 62,317,637 34,945,221
------------- ----------------
Total assets $ 523,129,293 $ 503,982,355
------------- ----------------
------------- ----------------
LIABILITIES
Reserves for unmatured obligations $ 20,512,815 $ 20,402,804
Annuity deposits 186,270,749 201,476,544
Accrued expenses and taxes 299,645 525,863
Other liabilities 627,359 539,438
Due to parent and affiliates - net (291,657) 591,254
Due to separate accounts 895,238
Interest maintenance reserve 937,387 1,778,014
Asset valuation reserve 2,008,530 1,763,921
------------- ----------------
General account liabilities 211,260,066 227,077,838
------------- ----------------
Separate account liabilities
Unitized 218,550,811 210,550,227
Non-unitized 62,317,637 34,945,221
------------- ----------------
Total liabilities 492,128,514 472,573,286
------------- ----------------
CAPITAL STOCK AND SURPLUS
Capital stock - Par value $1,000
Authorized, issued and outstanding
2,000 shares 2,000,000 2,000,000
Surplus 29,000,779 29,409,069
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Total capital stock and surplus 31,000,779 31,409,069
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Total liabilities, capital stock and surplus $ 523,129,293 $ 503,982,355
------------- ----------------
------------- ----------------
</TABLE>
Note: The balance sheet at December 31, 1994 has been taken from the audited
financials at that date.
See notes to unaudited financial statements.
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Sun Life Insurance and Annuity Company of New York
Statements of Operations
<TABLE>
<CAPTION>
Three Months Ended March 31,
1995 1994
-------------- ---------------
<S> <C> <C>
INCOME
Premiums and annuity considerations $ 2,452,911 $ 2,390,412
Annuity deposit funds 23,052,514 3,472,976
Net investment income 5,099,317 5,861,734
Amortization of interest maintenance reserve 185,659 166,462
Realized losses on investments (450,000) (127,719)
Mortality and expense risk charges 689,407 689,135
-------------- ---------------
31,029,808 12,453,000
-------------- ---------------
BENEFITS AND EXPENSES
Increase in actuarial reserves 110,011 310,477
Decrease in liability for annuity deposit funds (15,205,795) (2,510,933)
Death, health benefits and annuity payments 2,267,334 2,262,760
Annuity deposit fund withdrawals 19,614,846 7,859,127
Surplus transfer to (from) separate account 2,203,434 (286,572)
Transfers to non-unitized separate account 20,043,133 1,636,467
-------------- ---------------
29,032,963 9,271,326
General expenses 1,731,491 1,153,314
Commissions 1,173,484 766,253
Taxes, licenses and fees 126,453 107,762
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32,064,391 11,298,655
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Net income (loss) from operations before
federal income tax (1,034,583) 1,154,345
Federal income tax expense (benefit) (847,325) 300,000
-------------- ---------------
Net income (loss) $ (187,258) $ 854,345
-------------- ---------------
-------------- ---------------
</TABLE>
See notes to unaudited financial statements.
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Sun Life Insurance and Annuity Company of New York
Statements of Capital Stock and Surplus
<TABLE>
<CAPTION>
Three Months Ended March 31,
1995 1994
-------------- ---------------
<S> <C> <C>
Capital stock $ 2,000,000 $ 2,000,000
Paid-in surplus 28,750,000 28,750,000
Special contingency reserve 750,000 750,000
Unassigned surplus
Balance, beginning of period (90,931) (4,295,377)
Net income (loss) (187,258) 854,345
Change in non-admitted assets 21,471 (152,639)
Change in separate account surplus 2,106 985
Change in asset valuation reserve (244,609) (183,609)
-------------- ---------------
Balance, end of period (499,221) (3,776,295)
-------------- ---------------
Total surplus 29,000,779 25,723,705
-------------- ---------------
Total capital stock and surplus $ 31,000,779 $ 27,723,705
-------------- ---------------
-------------- ---------------
</TABLE>
See notes to unaudited financial statements.
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Sun Life Insurance and Annuity Company of New York
Statements of Cash Flows
<TABLE>
<CAPTION>
Three Months Ended March 31,
1995 1994
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) from operations $ (187,258) $ 854,345
Adjustments to reconcile net income
to net cash:
Increase in actuarial reserves 110,011 310,477
Decrease in liability for annuity deposit funds (15,205,795) (2,510,933)
Increase (decrease) in investment income
due and accrued 382,829 (212,572)
Net accrual and amortization of discount
and premium on investments 68,935 77,263
Realized losses on investments 450,000 127,719
Change in non-admitted assets 21,471 (152,639)
Other 384,414 1,491,899
--------------- ---------------
Net cash used in operating activities (13,975,393) (14,441)
--------------- ---------------
Cash flows from investing activities:
Proceeds from sale and maturity of investments 31,537,439 18,108,687
Purchase of investments (18,448,820) (8,266,106)
Net change in short-term investments 2,078,894 (8,915,550)
--------------- ---------------
Net cash provided by investing activities 15,167,513 927,031
--------------- ---------------
--------------- ---------------
Increase in cash during the period 1,192,120 912,590
Cash, beginning of period (756,378) (569,290)
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Cash, end of period $ 435,742 $ 343,300
--------------- ---------------
--------------- ---------------
</TABLE>
See notes to unaudited financial statements.
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Sun Life Insurance and Annuity Company of New York
Notes to Unaudited Financial Statements
(1) General
In management's opinion all adjustments, which include only normal recurring
adjustments, necessary for a fair presentation of the financial statements
have been made.
(2) Management and Service Contracts
The Registrant has agreements with Sun Life (Canada) which provide that Sun
Life (Canada) will furnish to the Registrant, as requested, personnel as well
as certain investment and administrative services on a cost reimbursement
basis. Expenses under these agreements amounted to approximately $506,000 and
$398,000 for the three month periods in 1995 and 1994, respectively.
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Sun Life Insurance and Annuity Company of New York
Management's Discussion and Analysis of Financial Condition
and Results of Operations
The Registrant had a net loss of $187,000 for the three months ended March
31, 1995 as compared to net income of $854,000 for the same period last year.
The decrease was principally due to a surplus transfer to the Registrant's
separate account.
Total income for the three months ended March 31, 1995 was $31,030,000, an
increase of $18,577,000 over the same period one year ago. The increase was
primarily due to an increase in annuity deposit funds offset by a decrease in
net investment income. The increase in annuity deposit funds was due directly
to higher credited rates, while the decrease in net investment income was due
to a decrease in invested assets, primarily the result of the Registrant
selling fixed income securities to cover maturing annuity deposit fund
obligations.
Policyholder benefits for the three months ended March 31, 1995 increased
$19,762,000 to $29,033,000. The increase was due primarily to an increase in
annuity depost fund withdrawals, transfers to the non-unitized separate
account and surplus transfer to separate account, offset by a decrease in
liability for annuity deposit funds. The increase in annuity deposit fund
withdrawals was due directly to an increase in maturing fixed annuity
contracts, while the transfers to the non-unitized separate account was due
to an increase in sales of the Registrant's market-value adjusted deferred
annuity contract. The increase in surplus transfer to the separate account
was due to a change in methodology in calculating the gross earned rate,
which resulted in higher market value adjusted reserves. The decrease in the
liability for annuity deposit funds is the result of contract owners not
renewing maturing contracts that had reached the end of a guarantee period.
General expenses, commissions and taxes increased by $1,004,000 for the three
month period ended March 31, 1995 as a result of an increase in allocations
from the Registrant's parent, an increase in annuity deposit fund sales and
an increase in franchise taxes.
- -8-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Sun Life Insurance and
Annuity Company of New York
May 11, 1995 /s/ David D. Horn
-----------------------------
David D. Horn
Senior Vice President
May 11, 1995 /s/ Bonnie S. Angus
------------------------------
Bonnie S. Angus
Secretary
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