SIGNIFICANT TRANSACTIONS WITH AFFILIATES	6 Months Ended
Jun. 30, 2011
Significant Transactions With Affiliates Abstract
Significant Transactions With Affiliates [Text Block]	SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.) (A Wholly-Owned Subsidiary of Sun Life of Canada (U.S.) Holdings, Inc.) NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) 2. SIGNIFICANT TRANSACTIONS WITH AFFILIATES The Company has significant transactions with affiliates. Management believes inter-company revenues and expenses are calculated on a reasonable basis. However, these amounts may not necessarily be indicative of the costs that would be incurred if the Company operated on a stand-alone basis and these transactions were with unrelated parties. Below is a summary of transactions with non-consolidated affiliates. Related Party Reinsurance Transactions As more fully described in Note 6 to the Company's unaudited condensed consolidated financial statement, the Company and its subsidiary, SLNY, are party to several reinsurance transactions with Sun Life Assurance Company of Canada (“SLOC”) and other affiliates. Reinsurance premiums with related parties are based on market rates. Capital Transactions The Company did not receive any capital contribution from the Parent during the six-month period ended June 30, 2011. During the year ended December 31, 2010, the Company received capital contribution totaling $400.0 million from the Parent. The cash contributions were recorded as additional paid-in capital and were made to ensure the Company continues to exceed certain capital requirements prescribed by the National Association of Insurance Commissioners (the “NAIC”). The NAIC has established regulations that provide minimum capitalization requirements based on risk-based capital formulas for life insurance companies. The risk-based capital formulas for life insurance companies establishes capital requirements relating to insurance, business, asset and interest rate risks, including equity, interest rate and expense recovery risks associated with variable annuities that contain death benefits or certain living benefits. The Company did not declare or pay any dividends during the six-month period ending June 30, 2011 or the year ending December 31, 2010. Debt Transactions At June 30, 2011 and December 31, 2010, the Company had $18.0 million in promissory notes issued to Sun Life (Hungary) Group Financing Limited Company (“Sun Life (Hungary) LLC”), an affiliate. The Company pays interest semi-annually to Sun Life (Hungary) LLC. Related to these promissory notes, the Company incurred interest expense of $0.3 million and $0.5 million for each of the three and six-month periods endedJune 30, 2011 and 2010, respectively. At June 30, 2011 and 2010, the Company had $565.0 million of surplus notes issued to Sun Life Financial (U.S.) Finance, Inc, an affiliate. The Company expensed $10.6 million and $21.3 million for interest on these surplus notes for each of the three and six-month periods ended June 30, 2011 and 2010, respectively. 2. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED) Institutional Investments Contracts On September 12, 2006, the Company issued two floating rate funding agreements totaling $900.0 million to Sun Life Financial Global Funding III, L.L.C. (“LLC III”), an affiliate, which will mature on October 6, 2013. On April 7, 2008, the Company issued an additional floating rate funding agreement totaling $5.8 million to LLC III. Total interest credited for the funding agreements was $1.4 million and $2.9 million for three and six-month periods ended June 30, 2011, respectively, and $1.4 million and $2.8 million for the three and six-month periods ended June 30, 2010, respectively. The Company also issued a $100.0 million floating rate demand note payable to LLC III on September 19, 2006. The Company expensed $0.2 million and $0.3 million for the three and six-month periods ended June 30, 2011 and 2010, respectively, for interest on this demand note. The Company has an interest rate swap agreement with LLC III with an aggregate notional amount of $900.0 million that effectively converts the floating rate payment obligations under the funding agreements to fixed rate obligations. On May 17, 2006, the Company issued a floating rate funding agreement of $900.0 million to Sun Life Financial Global Funding II, L.L.C. (“LLC II”), an affiliate, which will mature on July 6, 2011. On April 7, 2008, the Company issued an additional floating rate funding agreement totaling $7.5 million to LLC II. Total interest credited for these funding agreements was $1.2 million and $2.5 million for three and six-month periods ended June 30, 2011, respectively, and $1.2 million and $2.4 million for the three and six-month periods ended June 30, 2010. The Company also issued a $100.0 million floating rate demand note payable to LLC II on May 24, 2006. The Company expensed $0.1 million and $0.3 million for the three and six-month periods ended June 30, 2011 and 2010, respectively, for interest on this demand note. The Company also had an interest rate swap agreement with LLC II with an aggregate notional amount of $900.0 million that effectively converts the floating rate payment obligations under the funding agreements to fixed rate obligations. Refer to Note 12 for the additional information regarding the maturity of the funding agreement issued to LLC II. On July 1 and July 8, 2010, the Company paid $900.0 million and $10.0 million, respectively, to Sun Life Financial Global Funding, LLC (“LLC”) due to the maturity of the funding agreements. Total interest credited for these funding agreements was $1.4 million and $2.8 million for the three and six-month periods ended June 30, 2010. On August 6, 2010, the Company also paid $100.1 million to LLC including $0.1 million in interest due to the maturity of a $100.0 million floating rate demand note. The Company expensed $0.2 million and $0.4 million for the three and six-month periods ended June 30, 2010 for interest on this demand note. The related $900.0 million interest rate swap agreement expired on July 6, 2010 due to the maturity of the underlying floating rate funding agreements with LLC. The account values related to the funding agreements issued to LLC III and LLC II are reported in the Company's unaudited condensed consolidated balance sheets as a component of contractholder deposit funds and other policy liabilities. 2. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED) Administrative Service Agreements, Rent and Other Effective December 31, 2009, the Company transferred all of its employees to an affiliate, Sun Life Financial (U.S.) Services Company, Inc. (“Sun Life Services”), with the exception of 28 employees who were transferred to Sun Life Financial Distributors, Inc. (“SLFD”), another affiliate. The tax benefits associated with SLF stock options that had been granted to employees of the Company prior to the employee transfer, is recognized by the Company in the stockholder's equity when these benefits vest. Neither Sun Life Services nor SLFD are included in the accompanying condensed consolidated financial statements. Concurrent with this transaction, Sun Life Services assumed the sponsorship of the Company's retirement plans. As a result of this transaction, the Company transferred to Sun Life Services all employee-benefits related assets and liabilities, the associated deferred tax asset, and certain property, equipment and software. For more details on these transactions, see Note 3 of the consolidated financial statements included in Part II, Item 8 of the Company's annual report on Form 10-K for the year ended December 31, 2010. The transfer of fixed assets from the Company to Sun Life Services discussed above, along with the administrative service agreement, resulted in a sale-leaseback transaction. The Company recorded a deposit liability for $17.1 million which represents the cost of certain of the assets transferred. The Company will amortize the liability over the remaining useful life of the assets that have been sold, which is estimated to be seven years. As of June 30, 2011, the remaining deposit liability was $12.8 million. Pursuant to an administrative services agreement between the Company and Sun Life Services, Sun Life Services provides human resources services (e.g., recruiting and maintaining appropriately trained and qualified personnel and equipment necessary for the performance of actuarial, financial, legal, administrative, and other operational support functions) to the Company. The Company reimburses Sun Life Services for the cost of such services, plus, with respect to certain of those services, pays an arms-length based profit margin agreed upon by the parties. Total payments under this agreement were $25.6 million and $60.4 million for the three and six-month periods ended June 30, 2011 and 2010, respectively, and $28.1 million and $56.8 million for the three and six-month periods ended June 30, 2010, respectively. The Company also participated in pension and other retirement plans sponsored by Sun Life Services. The cost of these benefits to the Company were allocated and charged to the Company in a manner consistent with the allocation of employee compensation expenses and the number of participants. For the three and six-month periods ended June 30, 2011, expenses of $1.4 million and $2.8 million, respectively, were allocated to the Company by Sun Life Services for the pension and other benefits plans. For the three and six-month periods ended June 30, 2010, expense of $1.9 million and $3.8 million, respectively, were allocated for the pension and other benefits plans. The Company has an administrative services agreement with Sun Life Assurance Company of Canada – U.S. Operations Holdings, Inc, under which the Company provides administrative and investor services with respect to certain open-end management investment companies for which an affiliate, Massachusetts Financial Services Company (“MFS”), serves as the investment adviser, and which are offered to certain of the Company's separate accounts established in connection with the variable annuity contracts issued by the Company. Amounts received under this agreement were approximately $3.3 million and $6.6 million for each of the three and six-month periods ended June 30, 2011, respectively, and $3.2 million and $6.5 million for the three and six-month periods endedJune 30, 2010, respectively. The Company has an administrative services agreement with Sun Capital Advisers LLC (“SCA”), an affiliate and registered investment adviser, under which the Company provides administrative services with respect to certain open-end management investment companies for which SCA serves as the investment adviser, and which are offered to certain of the Company's separate accounts established in connection with the variable contracts issued by the Company. Amounts received under this agreement amounted to approximately $4.2 million and $8.2 million for the three and six-month periods endedJune 30, 2011, respectively, and $3.2 million and $5.9 million for the three and six-month periods endedJune 30, 2010. The Company also paid $5.0 million and $10.6 million for the three and six-month periods endedJune 30, 2011, respectively, and $5.2 million and $10.5 million during the three three and six-month periods endedJune 30, 2010, respectively, in investment management services fees to SCA. 2. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED) Administrative service agreements, rent and other (continued) The Company paid distribution fees to SLFD of $10.7 million and $20.6 million during the three and six-month periods ended June 30, 2011, respectively, and $11.2 million and $21.7 million during three and six-month periods endedJune 30, 2010, respectively, The Company has an administrative services agreement with Sun Life Information Services Canada, Inc. (“SLISC”), an affiliate, under which SLISC provides administrative and support services to the Company in connection with the Company's insurance and annuity business. Expenses under this agreement were $5.2 million and $9.7 million for the three and six-month periods ended June 30, 2011, respectively, and $4.9 million and $9.1 million for the three and six-month periods endedJune 30, 2010, respectively. The Company has a service agreement with Sun Life Information Services Ireland Limited (“SLISIL”), under which SLISIL provides various insurance related and information systems services to the Company. Expenses under this agreement amounted to approximately $5.5 million and $11.6 million for the three and six-month periods ended June 30, 2011, respectively, and $6.0 million and $12.3 million for three and six-month periods endedJune 30, 2010. The Company leases office space to SLOC under lease agreements with terms expiring on December 31, 2014 and options to extend the terms for each of twelve successive five-year terms at fair market rental value, not to exceed 125% of the fixed rent for the term which is then ending. Rent received by the Company under the leases amounted to $3.0 million and $6.1 million for each of the three and six-month periods ended June 30, 2011 and 2010 respectively. Rental income is reported as a component of net investment income on the Company's unaudited condensed consolidated statements of operations.

SIGNIFICANT TRANSACTIONS WITH AFFILIATES

6 Months Ended

Jun. 30, 2011

Significant Transactions With Affiliates Abstract

Significant Transactions With Affiliates [Text Block]

SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)

(A Wholly-Owned Subsidiary of Sun Life of Canada (U.S.) Holdings, Inc.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

2. SIGNIFICANT TRANSACTIONS WITH AFFILIATES

The Company has significant transactions with affiliates. Management believes inter-company revenues and expenses are calculated on a reasonable basis. However, these amounts may not necessarily be indicative of the costs that would be incurred if the Company operated on a stand-alone basis and these transactions were with unrelated parties. Below is a summary of transactions with non-consolidated affiliates.

Related Party Reinsurance Transactions

As more fully described in Note 6 to the Company's unaudited condensed consolidated financial statement, the Company and its subsidiary, SLNY, are party to several reinsurance transactions with Sun Life Assurance Company of Canada (“SLOC”) and other affiliates. Reinsurance premiums with related parties are based on market rates.

Capital Transactions

The Company did not receive any capital contribution from the Parent during the six-month period ended June 30, 2011. During the year ended December 31, 2010, the Company received capital contribution totaling $400.0 million from the Parent. The cash contributions were recorded as additional paid-in capital and were made to ensure the Company continues to exceed certain capital requirements prescribed by the National Association of Insurance Commissioners (the “NAIC”). The NAIC has established regulations that provide minimum capitalization requirements based on risk-based capital formulas for life insurance companies. The risk-based capital formulas for life insurance companies establishes capital requirements relating to insurance, business, asset and interest rate risks, including equity, interest rate and expense recovery risks associated with variable annuities that contain death benefits or certain living benefits.

The Company did not declare or pay any dividends during the six-month period ending June 30, 2011 or the year ending December 31, 2010.

Debt Transactions

At June 30, 2011 and December 31, 2010, the Company had $18.0 million in promissory notes issued to Sun Life (Hungary) Group Financing Limited Company (“Sun Life (Hungary) LLC”), an affiliate. The Company pays interest semi-annually to Sun Life (Hungary) LLC. Related to these promissory notes, the Company incurred interest expense of $0.3 million and $0.5 million for each of the three and six-month periods endedJune 30, 2011 and 2010, respectively.

At June 30, 2011 and 2010, the Company had $565.0 million of surplus notes issued to Sun Life Financial (U.S.) Finance, Inc, an affiliate. The Company expensed $10.6 million and $21.3 million for interest on these surplus notes for each of the three and six-month periods ended June 30, 2011 and 2010, respectively.

2. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED)

Institutional Investments Contracts

On September 12, 2006, the Company issued two floating rate funding agreements totaling $900.0 million to Sun Life Financial Global Funding III, L.L.C. (“LLC III”), an affiliate, which will mature on October 6, 2013. On April 7, 2008, the Company issued an additional floating rate funding agreement totaling $5.8 million to LLC III. Total interest credited for the funding agreements was $1.4 million and $2.9 million for three and six-month periods ended June 30, 2011, respectively, and $1.4 million and $2.8 million for the three and six-month periods ended June 30, 2010, respectively. The Company also issued a $100.0 million floating rate demand note payable to LLC III on September 19, 2006. The Company expensed $0.2 million and $0.3 million for the three and six-month periods ended June 30, 2011 and 2010, respectively, for interest on this demand note.

The Company has an interest rate swap agreement with LLC III with an aggregate notional amount of $900.0 million that effectively converts the floating rate payment obligations under the funding agreements to fixed rate obligations.

On May 17, 2006, the Company issued a floating rate funding agreement of $900.0 million to Sun Life Financial Global Funding II, L.L.C. (“LLC II”), an affiliate, which will mature on July 6, 2011. On April 7, 2008, the Company issued an additional floating rate funding agreement totaling $7.5 million to LLC II. Total interest credited for these funding agreements was $1.2 million and $2.5 million for three and six-month periods ended June 30, 2011, respectively, and $1.2 million and $2.4 million for the three and six-month periods ended June 30, 2010. The Company also issued a $100.0 million floating rate demand note payable to LLC II on May 24, 2006. The Company expensed $0.1 million and $0.3 million for the three and six-month periods ended June 30, 2011 and 2010, respectively, for interest on this demand note.

The Company also had an interest rate swap agreement with LLC II with an aggregate notional amount of $900.0 million that effectively converts the floating rate payment obligations under the funding agreements to fixed rate obligations. Refer to Note 12 for the additional information regarding the maturity of the funding agreement issued to LLC II.

On July 1 and July 8, 2010, the Company paid $900.0 million and $10.0 million, respectively, to Sun Life Financial Global Funding, LLC (“LLC”) due to the maturity of the funding agreements. Total interest credited for these funding agreements was $1.4 million and $2.8 million for the three and six-month periods ended June 30, 2010. On August 6, 2010, the Company also paid $100.1 million to LLC including $0.1 million in interest due to the maturity of a $100.0 million floating rate demand note. The Company expensed $0.2 million and $0.4 million for the three and six-month periods ended June 30, 2010 for interest on this demand note. The related $900.0 million interest rate swap agreement expired on July 6, 2010 due to the maturity of the underlying floating rate funding agreements with LLC.

The account values related to the funding agreements issued to LLC III and LLC II are reported in the Company's unaudited condensed consolidated balance sheets as a component of contractholder deposit funds and other policy liabilities.

2. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED)

Administrative Service Agreements, Rent and Other

Effective December 31, 2009, the Company transferred all of its employees to an affiliate, Sun Life Financial (U.S.) Services Company, Inc. (“Sun Life Services”), with the exception of 28 employees who were transferred to Sun Life Financial Distributors, Inc. (“SLFD”), another affiliate. The tax benefits associated with SLF stock options that had been granted to employees of the Company prior to the employee transfer, is recognized by the Company in the stockholder's equity when these benefits vest. Neither Sun Life Services nor SLFD are included in the accompanying condensed consolidated financial statements. Concurrent with this transaction, Sun Life Services assumed the sponsorship of the Company's retirement plans. As a result of this transaction, the Company transferred to Sun Life Services all employee-benefits related assets and liabilities, the associated deferred tax asset, and certain property, equipment and software. For more details on these transactions, see Note 3 of the consolidated financial statements included in Part II, Item 8 of the Company's annual report on Form 10-K for the year ended December 31, 2010.

The transfer of fixed assets from the Company to Sun Life Services discussed above, along with the administrative service agreement, resulted in a sale-leaseback transaction. The Company recorded a deposit liability for $17.1 million which represents the cost of certain of the assets transferred. The Company will amortize the liability over the remaining useful life of the assets that have been sold, which is estimated to be seven years. As of June 30, 2011, the remaining deposit liability was $12.8 million.

Pursuant to an administrative services agreement between the Company and Sun Life Services, Sun Life Services provides human resources services (e.g., recruiting and maintaining appropriately trained and qualified personnel and equipment necessary for the performance of actuarial, financial, legal, administrative, and other operational support functions) to the Company. The Company reimburses Sun Life Services for the cost of such services, plus, with respect to certain of those services, pays an arms-length based profit margin agreed upon by the parties. Total payments under this agreement were $25.6 million and $60.4 million for the three and six-month periods ended June 30, 2011 and 2010, respectively, and $28.1 million and $56.8 million for the three and six-month periods ended June 30, 2010, respectively.

The Company also participated in pension and other retirement plans sponsored by Sun Life Services. The cost of these benefits to the Company were allocated and charged to the Company in a manner consistent with the allocation of employee compensation expenses and the number of participants. For the three and six-month periods ended June 30, 2011, expenses of $1.4 million and $2.8 million, respectively, were allocated to the Company by Sun Life Services for the pension and other benefits plans. For the three and six-month periods ended June 30, 2010, expense of $1.9 million and $3.8 million, respectively, were allocated for the pension and other benefits plans.

The Company has an administrative services agreement with Sun Life Assurance Company of Canada – U.S. Operations Holdings, Inc, under which the Company provides administrative and investor services with respect to certain open-end management investment companies for which an affiliate, Massachusetts Financial Services Company (“MFS”), serves as the investment adviser, and which are offered to certain of the Company's separate accounts established in connection with the variable annuity contracts issued by the Company. Amounts received under this agreement were approximately $3.3 million and $6.6 million for each of the three and six-month periods ended June 30, 2011, respectively, and $3.2 million and $6.5 million for the three and six-month periods endedJune 30, 2010, respectively.

The Company has an administrative services agreement with Sun Capital Advisers LLC (“SCA”), an affiliate and registered investment adviser, under which the Company provides administrative services with respect to certain open-end management investment companies for which SCA serves as the investment adviser, and which are offered to certain of the Company's separate accounts established in connection with the variable contracts issued by the Company. Amounts received under this agreement amounted to approximately $4.2 million and $8.2 million for the three and six-month periods endedJune 30, 2011, respectively, and $3.2 million and $5.9 million for the three and six-month periods endedJune 30, 2010. The Company also paid $5.0 million and $10.6 million for the three and six-month periods endedJune 30, 2011, respectively, and $5.2 million and $10.5 million during the three three and six-month periods endedJune 30, 2010, respectively, in investment management services fees to SCA.

2. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED)

Administrative service agreements, rent and other (continued)

The Company paid distribution fees to SLFD of $10.7 million and $20.6 million during the three and six-month periods ended June 30, 2011, respectively, and $11.2 million and $21.7 million during three and six-month periods endedJune 30, 2010, respectively,

The Company has an administrative services agreement with Sun Life Information Services Canada, Inc. (“SLISC”), an affiliate, under which SLISC provides administrative and support services to the Company in connection with the Company's insurance and annuity business. Expenses under this agreement were $5.2 million and $9.7 million for the three and six-month periods ended June 30, 2011, respectively, and $4.9 million and $9.1 million for the three and six-month periods endedJune 30, 2010, respectively.

The Company has a service agreement with Sun Life Information Services Ireland Limited (“SLISIL”), under which SLISIL provides various insurance related and information systems services to the Company. Expenses under this agreement amounted to approximately $5.5 million and $11.6 million for the three and six-month periods ended June 30, 2011, respectively, and $6.0 million and $12.3 million for three and six-month periods endedJune 30, 2010.

The Company leases office space to SLOC under lease agreements with terms expiring on December 31, 2014 and options to extend the terms for each of twelve successive five-year terms at fair market rental value, not to exceed 125% of the fixed rent for the term which is then ending. Rent received by the Company under the leases amounted to $3.0 million and $6.1 million for each of the three and six-month periods ended June 30, 2011 and 2010 respectively. Rental income is reported as a component of net investment income on the Company's unaudited condensed consolidated statements of operations.