<PAGE>
SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT A
STATEMENT OF CONDITION
JUNE 30, 1997
ASSETS:
Investment in MFS/Sun Life Series Trust:
Money Market Series ("MMS"),
283,174 shares at $1.00 per share
(cost $283,174) $ 283,174
LIABILITY:
Payable to sponsor (1,592)
-----------
NET ASSETS $ 281,582
-----------
-----------
APPLICABLE TO OWNERS OF VARIABLE ANNUITY CONTRACTS:
Deferred contracts (61,118 units at
$2.95374 per unit) $ 180,527
Reserve for variable annuities 101,055
-----------
$ 281,582
-----------
-----------
See notes to financial statements.
<PAGE>
SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997
INVESTMENT INCOME:
Dividends $ 7,219
EXPENSE:
Mortality and expense risk charges 1,088
----------
NET INVESTMENT INCOME 6,131
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,131
----------
----------
See notes to financial statements.
<PAGE>
SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JUNE 30,
1997 1996
---- -----
OPERATIONS:
Net investment income $ 6,131 $ 11,860
Net realized losses 0 (27,153)
Net unrealized gains 0 19,816
-------- ----------
Net increase in net assets
from operations 6,131 4,523
-------- ----------
PARTICIPANT TRANSACTIONS:
Accumulation activity:
Redemptions (19,833) (4,780)
-------- ----------
Net accumulation activity (19,833) (4,780)
-------- ----------
Annuitization activity:
Annuity payments (9,717) (14,831)
Actuarial adjustment 3,338 7,247
-------- ----------
Net annuitization activity (6,379) (7,584)
-------- ----------
Net decrease in net assets from
participant activity (26,212) (12,364)
-------- ----------
NET DECREASE IN NET ASSETS (20,081) (7,841)
NET ASSETS:
Beginning of period 301,663 341,669
-------- ----------
End of period $ 281,582 $ 333,828
-------- ----------
-------- ----------
See notes to financial statements.
<PAGE>
SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION:
Sun Life of Canada (U.S.) Variable Account A (the "Variable Account"),
a separate account of Sun Life Assurance Company of Canada (U.S.) (the
"Sponsor"), was established as a funding vehicle for individual variable
annuities. The Variable Account is registered with the Securities
and Exchange Commission under the Investment Company Act of 1940 as
a unit investment trust. 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 tax law, investment income and capital
gains of the Variable Account are not taxable and, therefore, no
provision has been made for federal income taxes.
2. INVESTMENT VALUATIONS:
At June 30, 1996 the Variable Account was fully invested in shares of
Sun Growth Variable Annuity Fund, Inc. ("SGVA"), an affiliated mutual
fund. During 1996, SGVA ceased operations. The Variable Acount redeemed
all shares of SGVA and at June 30, 1997 is fully invested in shares of
MFS/Sun Life Series Trust, Money Market Series ("MMS"). Investments in
shares of MMS are recorded at their net asset value. Realized gains and
losses on sales of SGVA and MMS are determined on the identified cost
basis. Dividend income and capital gain distributions received by MMS are
reinvested in additional shares of MMS and are recognized on the
ex-dividend date.
3. MORTALITY AND EXPENSES RISK CHARGES:
A deduction based on the value of either the variable accumulation units
credited to a deferred contract's accumulation account or the annuity
units credited to either an immediate or a deferred contract, as the
case may be, is made by the Sponsor 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 1.0% of the respective values.
4. RESERVE FOR VARIABLE ANNUITIES:
The reserve for variable annuities (contracts in payment period) has
been calculated using the Progressive Annuity Table (for year of birth
1900) with interest equal to the assumed interest rate used in
determining the annuity units and the annuity unit values. Separate
tables were used for male and female annuitants. Required adjustments
to the reserve will be accomplished by transfers to or from the Sponsor.
<PAGE>
SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CHANGE IN ACCUMULATION UNITS OUTSTANDING:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, 1997 December 31, 1996
------------- -----------------
<S> <C> <C>
Redeemed during the period (6,768) (12,677)
----- --------
Net decrease in accumulation units (6,768) (12,677)
Units outstanding:
Beginning of period 67,886 80,563
----- --------
End of period 61,118 67,886
----- --------
----- --------
</TABLE>
