<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENT OF CONDITION -- June 30, 1999 -- Unaudited
<TABLE>
<CAPTION>
ASSETS:
Investments in MFS/Sun Life Series Trust: Shares Cost Value
---------- ------------ ------------
<S> <C> <C> <C>
Capital Appreciation Series ("CAS")............. 698,553 $ 28,192,123 $ 30,872,506
Conservative Growth Series ("CGS").............. 869,214 27,410,585 32,601,755
Government Securities Series ("GSS")............ 573,517 7,272,559 7,144,479
High Yield Series ("HYS")....................... 694,279 6,468,237 6,153,350
Managed Sectors Series ("MSS").................. 134,956 3,700,136 4,418,541
Money Market Series ("MMS")..................... 5,884,043 5,884,043 5,884,043
Total Return Series ("TRS")..................... 442,426 8,985,269 8,470,396
Global Governments Series ("GGS")............... 76,508 833,528 776,596
Zero Coupon Series:
2000 Portfolio ("ZCS-2000")..................... 366,232 3,188,707 3,098,292
------------ ------------
Net Assets:............................................. $ 91,935,187 $ 99,419,958
------------ ------------
------------ ------------
</TABLE>
NET ASSETS APPLICABLE TO CONTRACT OWNERS:
<TABLE>
<CAPTION>
Units Unit Value Value
--------- ---------- ------------
<S> <C> <C> <C>
CAS - Level 1....................... 33,352 $ 62.4023 $ 2,082,132
CAS - Level 2....................... 455,879 63.0453 28,790,374
CGS - Level 1....................... 32,901 54.9788 1,806,804
CGS - Level 2....................... 554,417 55.5453 30,794,951
GSS - Level 1....................... 37,052 21.3332 791,872
GSS - Level 2....................... 294,389 21.5532 6,352,607
HYS - Level 1....................... 11,284 26.0124 286,790
HYS - Level 2....................... 223,112 26.2806 5,866,560
MSS - Level 1....................... 10,228 53.4897 550,466
MSS - Level 2....................... 71,566 54.0411 3,868,075
MMS - Level 1....................... 98,296 16.6862 1,636,110
MMS - Level 2....................... 252,045 16.8582 4,247,933
TRS - Level 1....................... 29,749 33.7701 1,004,011
TRS - Level 2....................... 219,791 34.1181 7,466,385
GGS - Level 1....................... 4,294 19.1543 77,372
GGS - Level 2....................... 36,129 19.3519 699,224
ZCS-2000 - Level 1.................. 15,238 21.4416 327,145
ZCS-2000 - Level 2.................. 127,948 21.6627 2,771,147
------------
Net Assets:............................................ $ 99,419,958
------------
------------
</TABLE>
See notes to financial statements
1
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENTS OF OPERATIONS -- Six Months Ended June 30, 1999 -- Unaudited
<TABLE>
<CAPTION>
CAS CGS GSS HYS MSS
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INCOME:
Dividend income and capital gain
distributions received............... $3,280,434 $2,393,462 $ 377,865 $ 511,037 $ --
----------- ----------- ----------- ------------ -----------
EXPENSES:
Mortality and expense risk charges.... $ 87,116 $ 92,894 $ 22,703 $ 18,894 $ 12,837
Minimum death benefit guarantee
charges.............................. 2,822 2,250 1,018 416 671
Administrative charges................ 30,732 32,315 8,179 6,547 4,682
----------- ----------- ----------- ------------ -----------
Total expenses...................... $ 120,670 $ 127,459 $ 31,900 $ 25,857 $ 18,190
----------- ----------- ----------- ------------ -----------
Net investment income (loss)...... $3,159,764 $2,266,003 $ 345,965 $ 485,180 $ (18,190)
----------- ----------- ----------- ------------ -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $2,372,151 $1,112,772 $1,137,616 $ 748,568 $ 974,835
Costs of investments sold........... 1,869,363 824,440 1,064,063 726,948 923,755
----------- ----------- ----------- ------------ -----------
Net realized gains (losses)....... $ 502,788 $ 288,332 $ 73,553 $ 21,620 $ 51,080
----------- ----------- ----------- ------------ -----------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $2,680,383 $5,191,170 $ (128,080) $ (314,887) $ 718,405
Beginning of period................. 4,071,355 6,046,832 484,778 (94,921) 121,696
----------- ----------- ----------- ------------ -----------
Change in unrealized appreciation
(depreciation)................... $(1,390,972) $ (855,662) $ (612,858) $ (219,966) $ 596,709
----------- ----------- ----------- ------------ -----------
Realized and unrealized gains
(losses)............................. $ (888,184) $ (567,330) $ (539,305) $ (198,346) $ 647,789
----------- ----------- ----------- ------------ -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $2,271,580 $1,698,673 $ (193,340) $ 286,834 $ 629,599
----------- ----------- ----------- ------------ -----------
----------- ----------- ----------- ------------ -----------
<CAPTION>
MMS TRS GGS ZCS-2000
Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
INCOME:
Dividend income and capital gain
distributions received............... $ 136,021 $1,240,326 $ 86,870 $ 207,141
----------- ----------- ----------- ------------
EXPENSES:
Mortality and expense risk charges.... $ 18,844 $ 25,594 $ 2,547 $ 9,886
Minimum death benefit guarantee
charges.............................. 1,851 1,258 108 454
Administrative charges................ 7,392 9,286 914 3,568
----------- ----------- ----------- ------------
Total expenses...................... $ 28,087 $ 36,138 $ 3,569 $ 13,908
----------- ----------- ----------- ------------
Net investment income (loss)...... $ 107,934 $1,204,188 $ 83,301 $ 193,233
----------- ----------- ----------- ------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $2,724,681 $1,116,534 $ 135,024 $ 511,581
Costs of investments sold........... 2,724,681 1,011,007 121,609 483,035
----------- ----------- ----------- ------------
Net realized gains (losses)....... $ -- $ 105,527 $ 13,415 $ 28,546
----------- ----------- ----------- ------------
Net unrealized appreciation
(depreciation) on investments:
End of period....................... $ -- $ (514,873) $ (56,932) $ (90,415)
Beginning of period................. 81 418,488 105,791 112,982
----------- ----------- ----------- ------------
Change in unrealized appreciation
(depreciation)................... $ 81 $ (933,361) $ (162,723) $ (203,397)
----------- ----------- ----------- ------------
Realized and unrealized gains
(losses)............................. $ 81 $ (827,834) $ (149,308) $ (174,851)
----------- ----------- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 108,015 $ 376,354 $ (66,007) $ 18,382
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CAS CGS GSS
Sub-Account Sub-Account Sub-Account
---------------------------- ---------------------------- ----------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
1999 Unaudited 1998 1999 Unaudited 1998 1999 Unaudited 1998
-------------- ------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)......... $ 3,159,764 $2,990,468 $ 2,266,003 $1,849,587 $ 345,965 $ 360,564
Net realized gains (losses).......... 502,788 888,948 288,332 1,372,038 73,553 69,619
Net unrealized gains (losses)........ (1,390,972) 2,781,163 (855,662) 2,676,351 (612,858) 183,715
-------------- ------------ -------------- ------------ -------------- ------------
Increase (Decrease) in net assets
from operations................. $ 2,271,580 $6,660,579 $ 1,698,673 $5,897,976 $ (193,340) $ 613,898
-------------- ------------ -------------- ------------ -------------- ------------
CONTRACT OWNER TRANSACTIONS:
Transfers between Sub-Accounts....... $ 354,487 $ (765,823) $ 755,473 $ (209,959) $ (205,319) $ 184,794
Transfers to loan value account...... (82,524) (667,691) (91,760) (478,245) (106,461) (158,811)
Contract surrenders.................. (388,563) (1,159,053) (283,206) (397,789) (388,941) (495,964)
Charges for life insurance
protection.......................... (69,647) (147,415) (85,499) (172,639) (38,788) (80,019)
Death benefits....................... (524,498) (946,644) (231,622) (1,015,161) (5,969) (85,670)
-------------- ------------ -------------- ------------ -------------- ------------
Increase (Decrease) in net assets
from contract owner transactions.... $ (710,745) $(3,686,626) $ 63,386 $(2,273,793) $ (745,478) $ (635,670)
-------------- ------------ -------------- ------------ -------------- ------------
Increase (Decrease) in net
assets............................ $ 1,560,835 $2,973,953 $ 1,762,059 $3,624,183 $ (938,818) $ (21,772)
NET ASSETS:
Beginning of Period.................. 29,311,671 26,337,718 30,839,696 27,215,513 8,083,297 8,105,069
-------------- ------------ -------------- ------------ -------------- ------------
End of Period........................ $ 30,872,506 $29,311,671 $ 32,601,755 $30,839,696 $ 7,144,479 $8,083,297
-------------- ------------ -------------- ------------ -------------- ------------
-------------- ------------ -------------- ------------ -------------- ------------
<CAPTION>
HYS MSS MMS
Sub-Account Sub-Account Sub-Account
---------------------------- ---------------------------- ----------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
1999 Unaudited 1998 1999 Unaudited 1998 1999 Unaudited 1998
-------------- ------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)......... $ 485,180 $ 388,076 $ (18,190) $ 516,294 $ 107,934 $ 268,232
Net realized gains (losses).......... 21,620 62,109 51,080 (90,320) -- --
Net unrealized gains (losses)........ (219,966) (418,866) 596,709 1,389 81 81
-------------- ------------ -------------- ------------ -------------- ------------
Increase (Decrease) in net assets
from operations................... $ 286,834 $ 31,319 $ 629,599 $ 427,363 $ 108,015 $ 268,313
-------------- ------------ -------------- ------------ -------------- ------------
CONTRACT OWNER TRANSACTIONS:
Transfers between Sub-Accounts....... $ (64,963) $ (348,204) $ (132,709) $ 81,592 $ (38,878) $1,451,763
Transfers to loan value account...... (15,663) (23,783) (22,993) (185,353) (105,188) (90,938)
Contract surrenders.................. (61,182) (551,609) (30,461) (42,285) (979,118) (442,507)
Charges for life insurance
protection.......................... (21,249) (46,752) (15,360) (35,874) (57,826) (122,919)
Death benefits....................... (70,976) (87,084) (14,695) -- (32,357) (1,996)
-------------- ------------ -------------- ------------ -------------- ------------
Increase (Decrease) in net assets
from contract owner
transactions...................... $ (234,033) $(1,057,432) $ (216,218) $ (181,920) $ (1,213,367) $ 793,403
-------------- ------------ -------------- ------------ -------------- ------------
Increase (Decrease) in net
assets.......................... $ 52,801 $(1,026,113) $ 413,381 $ 245,443 $ (1,105,352) $1,061,716
NET ASSETS:
Beginning of period.................. 6,100,549 7,126,662 4,005,160 3,759,717 6,989,395 5,927,679
-------------- ------------ -------------- ------------ -------------- ------------
End of period........................ $ 6,153,350 $6,100,549 $ 4,418,541 $4,005,160 $ 5,884,043 $6,989,395
-------------- ------------ -------------- ------------ -------------- ------------
-------------- ------------ -------------- ------------ -------------- ------------
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
TRS GGS
Sub-Account Sub-Account
------------------------ ------------------------
Six Months Six Months
Ended June Year Ended Ended June Year Ended
30, 1999 December 30, 1999 December
Unaudited 31, 1998 Unaudited 31, 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).................... $1,204,188 $ 868,254 $ 83,301 $ 4,434
Net realized gains (losses)..................... 105,527 225,177 13,415 (889)
Net unrealized gains (losses)................... (933,361) (249,777) (162,723) 120,753
----------- ----------- ----------- -----------
Increase (Decrease) in net assets from
operations................................. $ 376,354 $ 843,654 $ (66,007) $ 124,298
----------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Transfers between Sub-Accounts.................. $(245,991) $ 42,584 $(115,597) $(409,530)
Transfers from loan value account............... (102,586) (134,636) (2,700) 3,877
Contract surrenders............................. (206,017) (399,794) -- (23,214)
Charges for life insurance protection........... (31,253) (66,761) (4,798) (11,409)
Death benefits.................................. -- (69,378) -- --
----------- ----------- ----------- -----------
Increase (Decrease) in net assets from
contract owner transactions.................. $(585,847) $(627,985) $(123,095) $(440,276)
----------- ----------- ----------- -----------
Increase (Decrease) in net assets........... $(209,493) $ 215,669 $(189,102) $(315,978)
NET ASSETS:
Beginning of period............................. 8,679,889 8,464,220 965,698 1,281,676
----------- ----------- ----------- -----------
End of period................................... $8,470,396 $8,679,889 $ 776,596 $ 965,698
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
<CAPTION>
ZCS-2000
------------------------
Six Months
Ended June Year Ended
30, 1999 December
Unaudited 31, 1998
----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).................... $ 193,233 $ 181,510
Net realized gains (losses)..................... 28,546 (5,342)
Net unrealized gains (losses)................... (203,397) 37,371
----------- -----------
Increase (Decrease) in net assets from
operations................................. $ 18,382 $ 213,539
----------- -----------
CONTRACT OWNER TRANSACTIONS:
Transfers between Sub-Accounts.................. $(306,503) $ (27,217)
Transfers to loan value account................. (174) (117,344)
Contract surrenders............................. (78,615) (190,173)
Charges for life insurance protection........... (8,277) (19,412)
Death benefits.................................. -- --
----------- -----------
Increase (Decrease) in net assets from
contract owner transactions.................. $(393,569) $(354,146)
----------- -----------
Increase (Decrease) in net assets........... $(375,187) $(140,607)
NET ASSETS:
Beginning of period............................. 3,473,479 3,614,086
----------- -----------
End of period................................... $3,098,292 $3,473,479
----------- -----------
----------- -----------
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life of Canada (U.S.) Variable Account E (the "Variable Account"), a
separate account of Sun Life Assurance Company of Canada (U.S.) (the "Sponsor"),
was established on December 3, 1985 as a funding vehicle for single premium
variable life insurance contracts. 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") an open-end management investment company registered
under the Investment Company Act of 1940. Massachusetts Financial Services
Company, an affiliate of the Sponsor, 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 the Sponsor's 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 shares of the Series
Trust 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.
(3) CONTRACT CHARGES
Certain charges based on the value of the Variable Account are paid to the
Sponsor from the Variable Account at the end of each valuation period as
follows: (i) an administrative charge of 0.35% for the first ten
5
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS -- continued
(3) CONTRACT CHARGES -- continued
contract years and 0.20% thereafter; (ii) a mortality and expense risk charge of
0.60%; and (iii) a minimum death benefit guarantee charge of 0.25% for the first
ten contract years with no deduction thereafter. Accounts are transferred from
Level 1 to Level 2 in the month following the tenth contract anniversary.
On each Monthly Anniversary Date after the Contract Date, a charge for providing
life insurance protection is imposed by the Sponsor against the contract's
account value. This charge will be based upon the Sponsor's expectations of
future mortality experience, but it will never be higher than the amount based
upon the 1980 CSO Mortality Table C, and in most cases it will be lower.
The Sponsor does not deduct a sales charge from the premium payment. However, a
withdrawal charge (contingent deferred sales charge) may be deducted to cover
certain expenses relating to the sale of the contract. In no event shall the
aggregate withdrawal charges exceed 8% of the single premium payment made under
the contract.
6
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS -- continued
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
CAS - Level 1 CAS - Level 2 CGS - Level 1
Sub-Account Sub-Account Sub-Account
--------------------- --------------------- ---------------------
Six Six Six
Months Months Months
Ended Year Ended Year Ended Year
June 30, Ended June 30, Ended June 30, Ended
1999 December 1999 December 1999 December
Unaudited 31, 1998 Unaudited 31, 1998 Unaudited 31, 1998
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of period...................... 46,335 92,847 454,818 482,707 36,127 78,746
Units transferred between Sub-Accounts... (12,292) (45,455) 18,179 28,736 (2,806) (40,339)
Units transferred (to) from loan value
account................................. (251) 430 (1,145) (12,565) (324) (91)
Units surrendered........................ (50) (1,137) (6,283) (23,466) -- (1,069)
Units cancelled in payment of charges for
life insurance protection............... (105) (350) (1,068) (2,545) (96) (311)
Units cancelled in payment of death
benefits................................ (285) -- (8,622) (18,049) -- (809)
--------- --------- --------- --------- --------- ---------
Units Outstanding
End of period............................ 33,352 46,335 455,879 454,818 32,901 36,127
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
<CAPTION>
CGS - Level 2 GSS - Level 1 GSS - Level 2
Sub-Account Sub-Account Sub-Account
--------------------- --------------------- ---------------------
Six Six Six
Months Months Months
Ended Year Ended Year Ended Year
June 30, Ended June 30, Ended June 30, Ended
1999 December 1999 December 1999 December
Unaudited 31, 1998 Unaudited 31, 1998 Unaudited 31, 1998
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of period...................... 550,067 556,809 38,842 62,704 326,819 332,752
Units transferred between Sub-Accounts... 16,916 34,927 (1,207) (22,653) (8,339) 31,761
Units transferred (to) from loan value
account................................. (1,356) (9,084) (367) (111) (4,473) (7,241)
Units surrendered........................ (5,320) (8,422) -- (602) (17,776) (23,198)
Units cancelled in payment of charges for
life insurance protection............... (1,511) (3,340) (216) (496) (1,563) (3,268)
Units cancelled in payment of death
benefits................................ (4,379) (20,823) -- -- (279) (3,987)
--------- --------- --------- --------- --------- ---------
Units Outstanding
End of period............................ 554,417 550,067 37,052 38,842 294,389 326,819
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
</TABLE>
7
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS -- continued
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS -- continued
<TABLE>
<CAPTION>
HYS - Level 1 HYS - Level 2 MSS - Level 1
Sub-Account Sub-Account Sub-Account
--------------------- --------------------- ---------------------
Six Six Six
Months Months Months
Ended Ended Year Ended Year
June 30, Year Ended June 30, Ended June 30, Ended
1999 December 1999 December 1999 December
Unaudited 31, 1998 Unaudited 31, 1998 Unaudited 31, 1998
-------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of period........................ 17,206 43,889 225,883 238,993 11,622 35,850
Units transferred between Sub-Accounts... (5,895) (26,154) 3,585 13,090 (1,024) (22,738)
Units transferred (to) from loan value
account................................. (2) 88 (570) (1,007) (258) (1,187)
Units surrendered........................ -- -- (2,298) (20,572) -- --
Units cancelled in payment of charges for
life insurance protection............... (25) (168) (787) (1,662) (112) (303)
Units cancelled in payment of death
benefits................................ -- (449) (2,701) (2,959) -- --
-------- ---------- --------- --------- --------- ---------
Units Outstanding
End of period.............................. 11,284 17,206 223,112 225,883 10,228 11,622
-------- ---------- --------- --------- --------- ---------
-------- ---------- --------- --------- --------- ---------
<CAPTION>
MSS - Level 2 MMS - Level 1 MMS - Level 2
Sub-Account Sub-Account Sub-Account
--------------------- --------------------- ---------------------
Six Six Six
Months Months Months
Ended Ended Year Ended Year
June 30, Year Ended June 30, Ended June 30, Ended
1999 December 1999 December 1999 December
Unaudited 31, 1998 Unaudited 31, 1998 Unaudited 31, 1998
-------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of period........................ 73,971 53,716 82,874 133,612 339,983 240,045
Units transferred between Sub-Accounts... (1,163) 24,929 19,204 (42,257) (21,494) 132,055
Units transferred (to) from loan value
account................................. (167) (2,788) (1,632) (3,427) (4,668) (2,230)
Units surrendered........................ (597) (1,361) (58) (1,540) (58,459) (25,686)
Units cancelled in payment of charges for
life insurance protection............... (192) (525) (1,478) (3,514) (1,996) (4,078)
Units cancelled in payment of death
benefits................................ (286) -- (614) -- (1,321) (123)
-------- ---------- --------- --------- --------- ---------
Units Outstanding
End of period............................ 71,566 73,971 98,296 82,874 252,045 339,983
-------- ---------- --------- --------- --------- ---------
-------- ---------- --------- --------- --------- ---------
</TABLE>
8
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS -- continued
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS -- continued
<TABLE>
<CAPTION>
TRS - Level 1 TRS - Level 2 GGS - Level 1
Sub-Account Sub-Account Sub-Account
--------------------- --------------------- ---------------------
Six Six Six
Months Months Months
Ended Ended Year Ended Year
June 30, Year Ended June 30, Ended June 30, Ended
1999 December 1999 December 1999 December
Unaudited 31, 1998 Unaudited 31, 1998 Unaudited 31, 1998
-------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of period........................ 38,827 83,559 228,221 204,285 4,750 21,982
Units transferred between Sub-Accounts... (8,776) (37,608) 1,492 38,610 (404) (17,007)
Units transferred (to) from loan value
account................................. (180) (58) (2,877) (4,388) -- (55)
Units surrendered........................ -- (5,081) (6,221) (7,889) -- --
Units cancelled in payment of charges for
life insurance protection............... (122) (454) (824) (1,701) (52) (170)
Units cancelled in payment of death
benefits................................ -- (1,531) -- (696) -- --
-------- ---------- --------- --------- --------- ---------
Units Outstanding
End of period.............................. 29,749 38,827 219,791 228,221 4,294 4,750
-------- ---------- --------- --------- --------- ---------
-------- ---------- --------- --------- --------- ---------
<CAPTION>
GGS - Level 2 ZCS-2000 - Level 1 ZCS-2000 - Level 2
Sub-Account Sub-Account Sub-Account
--------------------- --------------------- ---------------------
Six Six Six
Months Months Months
Ended Ended Year Ended Year
June 30, Year Ended June 30, Ended June 30, Ended
1999 December 1999 December 1999 December
Unaudited 31, 1998 Unaudited 31, 1998 Unaudited 31, 1998
-------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of period........................ 41,683 48,519 19,758 62,003 141,678 116,837
Units transferred between Sub-Accounts... (5,234) (5,411) (4,504) (35,269) (9,714) 33,694
Units transferred (to) from loan value
account................................. (134) 262 -- (2,887) (8) (2,818)
Units surrendered........................ -- (1,257) -- (3,970) (3,640) (5,225)
Units cancelled in payment of charges for
life insurance protection............... (186) (430) (16) (119) (368) (810)
Units cancelled in payment of death
benefits................................ -- -- -- -- -- --
-------- ---------- --------- --------- --------- ---------
Units Outstanding
End of period.............................. 36,129 41,683 15,238 19,758 127,948 141,678
-------- ---------- --------- --------- --------- ---------
-------- ---------- --------- --------- --------- ---------
</TABLE>
9
<PAGE>
COMPASS-LIFE
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, President and Director
JAMES A. McNULTY, III, Sr. Vice President and
General Manager and Director
RICHARD B. BAILEY, Director
M. COLYER CRUM, Director
GREGORY W. GEE, Director
DAVID D. HORN, Director
ANGUS A. MacNAUGHTON, Director
S. CAESAR RABOY, Director
PETER F. DEMUTH, Vice President, Chief
Counsel and Assistant Secretary
ELLEN B. KING, Counsel, Litigation and Secretary
ROBERT P. VROLYK, Vice President, Finance,
Actuary and Treasurer
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
Variable Life Service Unit, SC 1278
One Sun Life Executive Park
Wellesley Hills, MA 02481
Call Toll Free 1-800-445-4070
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street, Boston, Massachusetts 02110-2875
ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.),
A WHOLLY-OWNED SUBSIDIARY OF
SUN LIFE OF CANADA (U.S.) HOLDINGS, INC.
CO2-2/99 6M
LOGO
SINGLE PREMIUM VARIABLE
LIFE INSURANCE
-------------------------------------------------
SEMI-ANNUAL REPORT, JUNE 30, 1999
LOGO
