PROSPECTUS

MAY 1, 2007

SUN LIFE FINANCIAL MASTERS^® ACCESS

Sun Life Assurance Company of Canada (U.S.) and Sun Life of Canada (U.S.) Variable Account F offer the flexible payment deferred annuity contracts and certificates described in this Prospectus to groups and individuals.

You may choose among a number of variable investment options and fixed interest options. The variable options are Sub-Accounts in the Variable Account, each of which invests in shares of one of the following funds (the "Funds"):

Large-Cap Equity Funds	Emerging Markets Bond Fund
Columbia Marsico 21st Century Fund, Variable Series -	PIMCO VIT Emerging Markets Bond Portfolio -
B Class	Admin. Class
Columbia Marsico Growth Fund, Variable Series -	International/Global Small/Mid-Cap Equity Funds
B Class	First Eagle Overseas Variable Series
Mutual Shares Securities Fund - Class 2	Mid-Cap Equity Funds
Lord Abbett Series Fund All Value Portfolio - Class VC	Lord Abbett Series Fund Mid-Cap Value Portfolio
Lord Abbett Series Fund Growth & Income Portfolio -	Fidelity® VIP Mid Cap Portfolio - Service Class 2
Class VC	Lord Abbett Series Fund Growth Opportunities
MFS®/ Sun Life Core Equity Series - S Class	Portfolio - Class VC
MFS®/ Sun Life Value Series - S Class	Small-Cap Equity Funds
Oppenheimer Capital Appreciation Fund/VA -	Franklin Small Cap Value Securities Fund - Class 2
Service Shares	SCSM Oppenheimer Main Street Small Cap Fund
Oppenheimer Main Street Fund®/VA - Service Shares	- S Class
SCSM Davis Venture Value Fund - S Class	Multi-Cap Equity Funds
SCSM FI Large Cap Growth Fund - S Class	Sun Capital® All Cap Fund - S Class
Van Kampen LIT Comstock II Fund	Specialty Sector Equity Funds
Asset Allocation Funds	MFS®/ Sun Life Utilities Series - S Class
Fidelity® VIP Balanced Portfolio - Service Class 2	Specialty Sector Commodity Funds
Franklin Income Securities Fund - Class 2	PIMCO VIT CommodityRealReturn Strategy
MFS®/ Sun Life Total Return Series - S Class	Portfolio - Admin. Class
PIMCO VIT All Asset Portfolio - Admin. Class	Real Estate Equity Funds
Oppenheimer Balanced Fund/VA - Service Shares	Sun Capital Real Estate Fund®- S Class
International/Global Equity Funds	Short-Term Bond Funds
Columbia Marsico International Opportunities	PIMCO VIT Low Duration Portfolio - Admin. Class
Fund, Variable Series - B Class	Multi-Sector Bond Funds
Templeton Foreign Securities Fund - Class 2	Franklin Strategic Income Securities Fund - Class 2
Templeton Growth Securities Fund - Class 2	Intermediate-Term Bond Funds
MFS®/ Sun Life International Growth Series - S Class	MFS®/ Sun Life Bond Series - S Class
MFS®/ Sun Life International Value Series - S Class	MFS®/ Sun Life Government Securities Series -
MFS®/ Sun Life Research International Series - S Class	S Class
Oppenheimer Global Securities Fund/VA -	PIMCO VIT Total Return Portfolio - Admin. Class
Service Shares	Sun Capital Investment Grade Bond Fund® -
Target Date Funds	S Class
Fidelity® VIP Freedom 2010 Portfolio - Service Class 2	Inflation-Protected Bond Funds
Fidelity® VIP Freedom 2015 Portfolio - Service Class 2	PIMCO VIT Real Return Portfolio - Admin. Class
Fidelity® VIP Freedom 2020 Portfolio - Service Class 2	High Yield Bond Funds
Emerging Markets Equity Funds	MFS®/ Sun Life High Yield Series - S Class
Templeton Developing Markets Securities Fund -	Money Market Funds
Class 2	MFS®/ Sun Life Money Market Series - S Class

Arnhold and S. Bleichroeder Advisers, LLC advises the First Eagle Variable Funds Trust. Columbia Management Advisors, LLC, advises the Columbia Funds (with Marsico Capital Management, LLC, sub-advising the Columbia Marsico Funds). Fidelity^® Management & Research Company advises Fidelity VIP Balanced Portfolio and Fidelity VIP Mid Cap Portfolio (with Fidelity Research & Analysis Company, Fidelity Management & Research (U.K.) Inc., Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, and Fidelity Investments Japan Limited serving as sub-advisers). Franklin^® Advisers, Inc. advises Franklin Small Cap Value Securities Fund, Franklin Income Securities Fund and Franklin Strategic Income Securities Fund. Franklin^® Mutual Advisers, LLC advises Mutual Shares Securities Fund. Lord, Abbett & Co. LLC advises the Lord Abbett Series Fund Portfolios. Massachusetts Financial Services Company, our affiliate,advises the MFS^®/Sun Life Funds. Pacific Investment Management Company LLC advises the PIMCO VIT Portfolios. OppenheimerFunds, Inc. advises the Oppenheimer Funds. Strategic Advisers^®, Inc. advises the Fidelity VIP Freedom Portfolios. Sun Capital Advisers LLC, our affiliate, advises the Sun Capital Funds; SC^SM Davis Venture Value Fund (sub-advised by Davis Advisors); SC FI Large Cap Growth Fund (sub-advised by Pyramis Global Advisors, LLC) SC^SM Oppenheimer Main Street Small Cap Fund (sub-advised by OppenheimerFunds, Inc.). Templeton^® Asset Management Ltd. advises the Templeton Developing Markets Securities Fund. Templeton^®Investment Counsel, LLC advises Templeton Foreign Securities Fund and Templeton Growth Securities Fund. Van Kampen Asset Management advises the Van Kampen LIT Fund.

Please refer to the appendix entitled "Previously Available Investment Options" for information about certain Funds that are no longer available in connection with new Contracts being issued, but that are still available under certain Contracts that are already outstanding.

The fixed account options are available for specified time periods, called Guarantee Periods, and pay interest at a guaranteed rate for each period.

Please read this Prospectus and the Fund prospectuses carefully before investing and keep them for future reference. They contain important information about the Contract and the Funds.

We have filed a Statement of Additional Information dated May 1, 2007 (the "SAI") with the Securities and Exchange Commission (the "SEC"), which is incorporated by reference in this Prospectus. The table of contents for the SAI is on page 44 of this Prospectus. You may obtain a copy without charge by writing to us at the address shown below (which we sometimes refer to as our "Annuity Mailing Address") or by telephoning (800) 752-7215. In addition, the SEC maintains a website (http://www.sec.gov) that contains the SAI, material incorporated by reference, and other information regarding companies that file with the SEC.

The Contracts are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other agency.

The SEC has not approved or disapproved these securities or passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense.

Any reference in this Prospectus to receipt by us means receipt at the following address:

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

     P.O. Box 9133

     Wellesley Hills, Massachusetts 02481

TABLE OF CONTENTS

SPECIAL TERMS

PRODUCT HIGHLIGHTS

FEES AND EXPENSES

EXAMPLE

CONDENSED FINANCIAL INFORMATION

THE ANNUITY CONTRACT

COMMUNICATING TO US ABOUT YOUR CONTRACT

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

THE VARIABLE ACCOUNT

VARIABLE ACCOUNT OPTIONS: THE FUNDS

THE FIXED ACCOUNT

THE FIXED ACCOUNT OPTIONS: THE GUARANTEE PERIODS

THE ACCUMULATION PHASE

Issuing Your Contract

Amount and Frequency of Purchase Payments

Allocation of Net Purchase Payments

Your Account

Your Account Value

Variable Account Value

Fixed Account Value

Transfer Privilege

Waivers; Reduced Charges; Special Guaranteed Interest Rates

Other Programs

WITHDRAWALS AND MARKET VALUE ADJUSTMENT

Cash Withdrawals

Market Value Adjustment

CONTRACT CHARGES

Account Fee

Administrative Expense Charge and Distribution Fee

Mortality and Expense Risk Charge

Charges for Optional Death Benefit Riders

Premium Taxes

Fund Expenses

Modification In the Case of Group Contracts

DEATH BENEFIT

Amount of Death Benefit

The Basic Death Benefit

Optional Death Benefit Riders

Spousal Continuance

Calculating the Death Benefit

Method of Paying Death Benefit

Non-Qualified Contracts

Selection and Change of Beneficiary

Payment of Death Benefit

THE INCOME PHASE - ANNUITY PROVISIONS

Selection of Annuitant(s)

Selection of the Annuity Commencement Date

Annuity Options

Selection of Annuity Option

Amount of Annuity Payments

Exchange of Variable Annuity Units

Account Fee

Annuity Payment Rates

Annuity Options as Method of Payment for Death Benefit

OTHER CONTRACT PROVISIONS

Exercise of Contract Rights

Change of Ownership

Voting of Fund Shares

Reports to Owners

Substitution of Securities

Change in Operation of Variable Account

Splitting Units

Modification

Discontinuance of New Participants

Reservation of Rights

Right to Return

TAX CONSIDERATIONS

U.S. Federal Income Tax Considerations

Puerto Rico Tax Considerations

ADMINISTRATION OF THE CONTRACT

DISTRIBUTION OF THE CONTRACT

AVAILABLE INFORMATION

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

STATE REGULATION

LEGAL PROCEEDINGS

FINANCIAL STATEMENTS

TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION

APPENDIX A - GLOSSARY

APPENDIX B - MARKET VALUE ADJUSTMENT

APPENDIX C - OPTIONAL DEATH BENEFIT EXAMPLES

APPENDIX D - PREVIOUSLY AVAILABLE INVESTMENT OPTIONS

APPENDIX E - CONDENSED FINANCIAL INFORMATION

SPECIAL TERMS

Your Contract is a legal document that uses a number of specially defined terms. We explain most of the terms that we use in this Prospectus in the context where they arise, and some are self-explanatory. In addition, for convenient reference, we have compiled a list of these terms in the Glossary included at the back of this Prospectus as Appendix A. If, while you are reading this Prospectus, you come across a term that you do not understand, please refer to the Glossary for an explanation.

PRODUCT HIGHLIGHTS

The headings in this section correspond to headings in the Prospectus under which we discuss these topics in more detail.

The Annuity Contract

The Sun Life Financial Masters^® Access Fixed and Variable Annuity Contract provides a number of important benefits for your retirement planning. During the Accumulation Phase, you make Payments under the Contract and allocate them to one or more Variable Account or Fixed Account options. During the Income Phase, we make annuity payments to you or someone else based on the amount you have accumulated. The Contract provides tax-deferral so that you do not pay taxes on your earnings until you withdraw them. When purchased in connection with a tax-qualified plan, the Contract provides no additional tax-deferral benefits because tax-qualified plans confer their own tax-deferral. The Contract also provides a basic death benefit if you die during the Accumulation Phase. You may enhance the basic death benefit by purchasing an optional death benefit rider.

The Accumulation Phase

Under most circumstances, you can buy the Contract with an initial Purchase Payment of $20,000 or more, and you can make additional Purchase Payments at any time during the Accumulation Phase. Currently, there is no minimum amount required for additional Purchase Payments. However, we reserve the right to limit additional Purchase Payments to at least $1,000. We will not normally accept a Purchase Payment if your Account Value is over $2 million or, if the Purchase Payment would cause your Account Value to exceed $2 million.

Variable Account Options: The Funds

You can allocate your Purchase Payments among Sub-Accounts investing in a number of Fund options. Each Fund is either a mutual fund registered under the Investment Company Act of 1940 or a separate securities portfolio of shares of such a mutual fund. The investment returns on the Funds are not guaranteed. You can make or lose money. You can make transfers among the Funds and the Fixed Account Options.

The Fixed Account Options: The Guarantee Periods

You can allocate your Purchase Payments to the Fixed Account and elect to invest in one or more of the Guarantee Periods we make available from time to time. Each Guarantee Period earns interest at a Guaranteed Interest Rate that we publish. We may change the Guaranteed Interest Rate from time to time, but no Guaranteed Interest Rate will ever be less than the minimum guaranteed rate permitted by law. Once we have accepted your allocation to a particular Guarantee Period, we promise that the Guaranteed Interest Rate applicable to that allocation will not change for the duration of the Guarantee Period. We may offer Guarantee Periods of different durations or stop offering some Guarantee Periods. Once we stop offering a Guarantee Period of a particular duration, future allocations, transfers or renewals into that Guarantee Period will not be permitted.

Fees and Expenses

The Contract has insurance features and investment features, and there are costs related to each.

If your Account Value is less than $100,000 on your Account Anniversary, we deduct a $50 Annual Account Fee. We will waive the Account Fee if your Contract was fully invested in the Fixed Account during the entire Account Year.

During the Accumulation Phase, we deduct a mortality and expense risk charge at an annual rate of 1.35% of the average daily value of the Contract invested in the Variable Account. If you purchased your Contract prior to March 5, 2007 and you were 76 years or older on the Open Date, we deduct a mortality and expense risk charge at an annual rate of 1.55% of the average daily value of the Contract invested in the Variable Account. We also deduct an administrative charge at an annual rate of 0.15% of the average daily value and a distribution fee at an annual rate of 0.20% of the average daily value of the Contract invested in the Variable Account.

Currently, you can make 12 free transfers each year; however, we reserve the right to impose a charge of up to $15 per transfer.

If you elect an optional death benefit rider, we will deduct, during the Accumulation Phase, an additional charge from the assets of the Variable Account ranging from an annual rate of 0.20% to 0.40% of the average daily value of your Contract depending upon which optional death benefit rider you elected.

In addition to the charges we impose under the Contract, there are also charges (which include management fees and operating expenses) imposed by the Funds, depending upon which Fund(s) you have selected.

The Income Phase: Annuity Provisions

If you want to receive regular income from your annuity after the Annuity Commencement Date, you can select one of several Annuity Options. You can choose to receive annuity payments from either the Fixed Account or from the available Variable Account options. If you choose to have any part of your annuity payments come from the Variable Account, the dollar amount of the payments may fluctuate with the performance of the Funds. Subject to the maximum Annuity Commencement Date, you decide when your Income Phase will begin but, once it begins, you cannot change your choice of annuity payment option.

During the Income Phase, the total insurance charges are deducted on a daily basis at an annual rate of 1.70% of your Account Value invested in the Variable Account.

Death Benefit

If you die before the Contract reaches the Income Phase, the Beneficiary will receive a death benefit. The amount of the death benefit depends upon your age on the Open Date and whether you choose the basic death benefit or, for a fee, you enhance the death benefit by electing an optional death benefit rider that is available in your state. If you are 85 or younger on your Open Date, the basic death benefit pays the greatest of your Account Value, your total Purchase Payments (adjusted for withdrawals), or your cash Surrender Value, all calculated as of your Death Benefit Date. If you are 86 or older on your Open Date, the basic death benefit is the Surrender Value. You must make your election before the date on which your Contract becomes effective. The riders are only available if you are younger than 80 on the Open Date. Any optional death benefit rider election may not be changed after your Contract is issued.

Withdrawals and Market Value Adjustment

You can withdraw money from your Contract at any time during the Accumulation Phase without the imposition of a withdrawal charge. Furthermore, no withdrawal charge is imposed upon annuitization. Withdrawals made from the Fixed Account, however, may be subject to a Market Value Adjustment (see prospectus under "Market Value Adjustment"). You may also have to pay income taxes and tax penalties on money you withdraw.

Right to Return

Your Contract contains a "free look" provision. If you cancel your Contract within 10 days after receiving it (or later, if allowed by your state), we will send you, depending upon the laws of your state, either the full amount of all of your Purchase Payments or your Account Value as of the day we receive your cancellation request. (This amount may be more or less than the original Purchase Payment). We will not deduct a withdrawal charge or a Market Value Adjustment.

Tax Considerations

Your earnings are not taxed until you take them out. If you withdraw money during the Accumulation Phase, earnings come out first and are taxed as income. If you are younger than 59½ when you take money out, you may incur a 10% federal tax penalty.

NOTE ABOUT OTHER ANNUITY CONTRACTS THAT WE OFFER: In addition to the Contracts, we currently offer many other forms of annuity contracts with a wide variety of features, benefits and charges. Depending on your circumstances and needs, some of these other contracts may be at lower cost to you. Not all of the annuity contracts that we offer are available in all jurisdictions or through all of the selling agents who offer the contracts. You should consider with your selling agent what annuity contract or financial product is most consistent with your needs and preferences.

If you have any questions about your Contract or need more information, please contact us at:

          Sun Life Assurance Company of Canada (U.S.)

          P. O. Box 9133

          Wellesley Hills, Massachusetts 02481

          Toll Free (800) 752-7215

FEES AND EXPENSES

The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract.

The table below describes the fees and expenses that you will pay at the time that you buy the Contract, surrender the Contract, or transfer cash value between investment options.

Contract Owner Transaction Expenses

Sales Load Imposed on Purchases (as a percentage of Purchase Payments):	0%
Maximum Withdrawal Charge (as a percentage of Purchase Payments):	0%
Maximum Fee Per Transfer (currently $0):	$15
Premium Taxes (as a percentage of Account Value or total Purchase Payments):	0% - 3.5%1

The tables below describe the fees and expenses that you will pay periodically during the time that you own the Contract, not including Fund fees and expenses.

Annual Account Fee $ 50²

Variable Account Annual Expenses (as a percentage of net Variable Account assets)³

	Mortality and Expense Risks Charge:	1.35%4
	Administrative Expenses Charge:	0.15%
	Distribution Fee:	0.20%
Total Variable Account Annual Expenses (without any optional benefits):		1.70%

Charges for Optional Benefit Features

Riders Elected5	Fee as a% of Account Value
"MAV"	0.20%
"5% Roll-Up"	0.20%
"EEB Premier"	0.25%
"EEB Premier with MAV"	0.40%
"EEB Premier with 5% Roll-Up"	0.40%
"EEB Premier Plus"	0.40%

Maximum Annual Charge for an Optional Death Benefit Rider       (as a percentage of Account Value):   0.40%

Total Variable Account Annual Expenses with Maximum Charges for an Optional Death Benefit          Rider (as a percentage of Account Value):   2.10%⁶

The table below shows the minimum and maximum total operating expenses charged by the Funds that you may pay periodically during the time that you own the Contract. More detail concerning each Fund's fees and expenses is contained in the prospectus for each Fund.

Total Annual Fund Operating Expenses (as a percentage of average daily Fund net assets)		Minimum	Maximum
	(expenses that are deducted from Fund assets, include management fees, distribution and/or service (12b-1) fees, and other expenses)
Prior to any fee waiver or expense reimbursement7		0.65%	2.62%

1	The premium tax rate and base vary by your state of residence and the type of Certificate you own. Currently, we deduct premium taxes from Certificate Value upon full surrender (including a surrender for the death benefit) or annuitization. (See "Contract Charges -- Premium Taxes.")
2	The Annual Account Fee is waived if 100% of your Account Value has been allocated to the Fixed Account during the entire Account Year or if your Account Value is $100,000 or more on your Account Anniversary.(See "Account Fee.")
3	All of the Variable Account Annual Expenses are assessed as a percentage of average daily net Variable Account assets.
4	For Contracts purchased prior to March 5, 2007, the rate of this charge is 1.55% if you were age 76 or older on the Contract's Open Date. In that case, the rate for "Total Variable Expenses (without optional benefits)" would be 1.90%.
5	The optional death benefit riders are defined under "Death Benefit." These riders are available only if you are younger than age 80 on the Open Date. The charge varies depending upon the rider selected as shown under "Charges for Optional Benefit Riders."
6	This chart shows your insurance charges before you annuitize your Contract. As explained in "Amount of Annuity Payments," after you annuitize your Contract, the sum of your insurance charges will never be greater than an annual rate of 1.70% of average daily net Variable Account assets, regardless of your age on the Open Date.
7	The expenses shown are for the year ended December 31, 2006, and do not reflect any fee waiver or expense reimbursement. The advisers and/or other service providers of certain Funds have agreed to reduce their fees and/or reimburse the Funds' expenses in order to keep the Funds' expenses below specified limits. The minimum and maximum Total Annual Fund Operating Expenses for all Funds after all fee reductions and expense reimbursement arrangements are taken into consideration are 0.65% and 1.78%, respectively. Each fee reduction and/or expense reimbursement arrangement is described in the relevant Fund's prospectus.

THE ABOVE EXPENSES FOR THE FUNDS WERE PROVIDED BY THE FUNDS. WE HAVE NOT INDEPENDENTLY VERIFIED THE ACCURACY OF THE INFORMATION.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include Contract Owner transaction expenses, contract fees, variable account annual expenses, and Fund fees and expenses, and are based on a sample Contract with the maximum possible fees.

The Example assumes that you invest $10,000 in the Contract for the time periods indicated and that your Contract includes the maximum charges for an optional death benefit (EEB Premier with MAV, EEB Premier with 5% Roll-Up, or EEB Premier Plus). If this optional death benefit was not elected or fewer options were elected, the expense figures shown below would be lower. The Example also assumes that your investment has a 5% return each year and assumes the maximum fees and expenses of any of the Funds. For purposes of converting the annual contract fee to a percentage, the Example assumes an average Contract size of $50,000. In addition, this Example assumes no transfers were made and no premium taxes were deducted. If these arrangements were considered, the expenses shown would be higher. This Example also does not take into consideration any fee waiver or expense reimbursement arrangement of the Funds. If these arrangements were taken into consideration, the expenses shown would be lower.

Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

(1) If you surrender your Contract at the end of the applicable time period:

1 year	3 years	5 years	10 years
$428	$1,450	$2,421	$4,864

(2) If you annuitize your Contract at the end of the applicable time period:

1 year	3 years	5 years	10 years
$428	$1,450	$2,421	$4,864

(3) If you donot surrender your Contract:

1 year	3 years	5 years	10 years
$428	$1,450	$2,421	$4,864

The fee table and Example should not be considered a representation of past or future expenses and charges of the Sub-Accounts. Your actual expenses may be greater or less than those shown. The Example does not include the deduction of state premium taxes, which may be assessed upon full surrender, death or annuitization, or any taxes and penalties you may be required to pay if you surrender the Contract. Similarly, the 5% annual rate of return assumed in the Example is not intended to be representative of past or future investment performance. For more information about Fund expenses, including a description of any applicable fee waiver or expense reimbursement arrangement, see the prospectuses for the Funds.

CONDENSED FINANCIAL INFORMATION

Historical information about the value of the units we use to measure the variable portion of your Contract ("Variable Accumulation Units") is included in the back of this Prospectus as Appendix E.

THE ANNUITY CONTRACT

Sun Life Assurance Company of Canada (U.S.) and Sun Life of Canada (U.S.) Variable Account F (the "Variable Account") offer the Contract to groups and individuals for use in connection with their retirement plans. The Contract is available on a group basis and, in certain states, may be available on an individual basis. We issue an Individual Contract directly to the individual owner of the Contract. We issue a Group Contract to the Owner, covering all individuals participating under the Group Contract; each individual receives a Certificate that evidences his or her participation under the Group Contract.

In this Prospectus, unless we state otherwise, we refer to both the owners of Individual Contracts and participating individuals under Group Contracts as "Participants" and we address all Participants as "you"; we use the term "Contracts" to include Individual Contracts, Group Contracts, and Certificates issued under Group Contracts. For the purpose of determining benefits under both Individual Contracts and Group Contracts, we establish an Account for each Participant, which we will refer to as "your" Account or a "Participant Account."

Your Contract provides a number of important benefits for your retirement planning. It has an Accumulation Phase, during which you make Payments under the Contract and allocate them to one or more Variable Account or Fixed Account options, and an Income Phase, during which we make annuity payments based on the amount you have accumulated. Your Contract provides tax deferral, so that you do not pay taxes on your earnings under your Contract until you withdraw them. However, if you purchase your Contract in connection with a tax-qualified plan, your purchase should be made for reasons other than tax-deferral. Tax-qualified plans provide tax-deferral without the need for purchasing an annuity contract.

Your Contract also provides a basic death benefit if you die during the Accumulation Phase. You may enhance the basic death benefit by electing an optional death benefit rider and paying an additional charge for the optional death benefit rider you elect. Finally, if you so elect, during the Income Phase we will make annuity payments to you or someone else for life or for another period that you choose.

You choose these benefits on a variable or fixed basis or a combination of both. When you choose Variable Account investment options or a Variable Annuity option, your Account Value will change in response to changes in the return available from the different types of investments you select under your Contract. With these variable options, you assume all investment risk under your Contract. When you choose a Guarantee Period in our Fixed Account or a Fixed Annuity option, we assume the investment risk, except in the case of early withdrawals in the Accumulation Phase, where you bear the risk of unfavorable interest rate changes. You also bear the risk that the interest rates we will offer in the future and the rates we will use in determining your Fixed Annuity may not exceed our minimum guaranteed rate. Our minimum guaranteed interest rate will never be less than that permitted by law.

The Contract is designed for use in connection with retirement and deferred compensation plans, some of which qualify for favorable federal income tax treatment under Sections 401, 403, 408 or 408A of the Internal Revenue Code. The Contract is also designed so that it may be used in connection with certain non-tax-qualified retirement plans, such as payroll savings plans and such other groups (trusteed or non-trusteed) as may be eligible under applicable law. We refer to Contracts used with plans that receive favorable tax treatment as "Qualified Contracts," and all other Contracts as "Non-Qualified Contracts." A qualified retirement plan generally provides tax-deferral regardless of whether the plan invests in an annuity contract. A decision to purchase an annuity contract should not be based on the assumption that the purchase of an annuity contract is necessary to obtain tax-deferral benefits under a qualified retirement plan.

Some broker/dealers may limit their clients from purchasing some optional benefits based upon the client's age. Your individual representative will describe any such limitations. You should work with your registered representative to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance.

COMMUNICATING TO US ABOUT YOUR CONTRACT

All materials sent to us, including Purchase Payments, must be sent to our Annuity Mailing Address as set forth on the first page of this Prospectus. For all telephone communications, you must call (800) 752-7215.

Unless this Prospectus states differently, we will consider all materials sent to us and all telephone communications to be received on the date we actually receive them at our Annuity Mailing Address. However, we will consider all financial transactions, including Purchase Payments, withdrawal requests and transfer instructions, to be received on the next Business Day if we receive them (1) on a day that is not a Business Day or (2) after 4:00 p.m., Eastern Time. In some cases, receipt of requests for financial transactions by the broker-dealer of record will be deemed to be constructive receipt by us.

When we specify that notice to us must be in writing, we reserve the right, at our sole discretion, to accept notice in another form.

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

We are a stock life insurance company incorporated under the laws of Delaware on January 12, 1970. We do business in 49 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, and we have an insurance company subsidiary that does business in New York. Our Executive Office mailing address is One Sun Life Executive Park, Wellesley Hills, Massachusetts 02481.

We are ultimately controlled by Sun Life Financial Inc. ("Sun Life Financial"). Sun Life Financial, a corporation organized in Canada, is a reporting company under the Securities Exchange Act of 1934 with common shares listed on the Toronto, New York, and Philippine stock exchanges.

THE VARIABLE ACCOUNT

We established the Variable Account as a separate account on July 13, 1989, pursuant to a resolution of our Board of Directors. The Variable Account funds the Contract and various other variable annuity contracts that we offer. These other products may have features, benefits and charges that are different from those under the Contract.

Under Delaware insurance law and the Contract, the income, gains or losses of the Variable Account are credited to or charged against the assets of the Variable Account without regard to the other income, gains, or losses of the Company. These assets are held in relation to the Contract and other variable annuity contracts that provide benefits that vary in accordance with the investment performance of the Variable Account. Although the assets maintained in the Variable Account will not be charged with any liabilities arising out of any other business we conduct, all obligations arising under a Contract, including the promise to make annuity payments, are general corporate obligations of the Company.

The assets of the Variable Account are divided into Sub-Accounts. Each Sub-Account invests exclusively in shares of a specific Fund. All amounts allocated by you to a Sub-Account will be used to purchase Fund shares at their net asset value. Any and all distributions made by the Funds with respect to the shares held by the Variable Account will be reinvested to purchase additional Fund shares at their net asset value. Deductions will be made from the Variable Account for cash withdrawals, annuity payments, death benefits, Account Fees, Contract charges against the assets of the Variable Account for the assumption of mortality and expense risks, administrative expenses, optional benefit riders, and any applicable taxes. The Variable Account will be fully invested in Fund shares at all times.

VARIABLE ACCOUNT OPTIONS: THE FUNDS

The Contract offers Sub-Accounts that invest in a number of Fund investment options. Each Fund is a mutual fund registered under the Investment Company Act of 1940, or a separate series of shares of such a mutual fund.

More comprehensive information about the Funds, including a discussion of their management, investment objectives, expenses, and potential risks, is found in the current prospectuses for the Funds (the "Fund Prospectuses"). The Fund Prospectuses should be read in conjunction with this Prospectus before you invest. A copy of each Fund Prospectus, as well as a Statement of Additional Information for each Fund, may be obtained without charge from the Company by calling (800) 752-7215 or by writing to Sun Life Assurance Company of Canada (U.S.), P.O. Box 9133, Wellesley Hills, Massachusetts 02481.

The Funds may also be available to registered separate accounts offering variable annuity and variable life products of other affiliated and unaffiliated insurance companies, as well as to the Variable Account and other separate accounts of the Company. Although we do not anticipate any disadvantages to this, there is a possibility that a material conflict may arise between the interests of the Variable Account and one or more of the other separate accounts participating in the Funds. A conflict may occur due to a change in law affecting the operations of variable life and variable annuity separate accounts, differences in the voting instructions of the Participants and Payees and those of other companies, or some other reason. In the event of conflict, we will take any steps necessary to protect Participants and Payees, including withdrawal of the Variable Account from participation in the underlying Funds which are involved in the conflict or substitution of shares of other Funds.

Certain of the investment advisers, transfer agents, or underwriters to the Funds may reimburse us for administrative costs in connection with administering the Funds as options under the Contracts. These amounts are not charged to the Funds or Participants, but are paid from assets of the advisers, transfer agents, or underwriters, except for the administrative costs of the Lord Abbett Series Trust Portfolios, which are paid from Fund assets and reflected under "Fees and Expenses."

Certain publicly available mutual funds may have similar investment goals and principal investment policies and risks as one or more of the Funds, and may be managed by a Fund's portfolio manager(s). While a Fund may have many similarities to these other funds, its investment performance will differ from their investment performance. This is due to a number of differences between a Fund and these similar products, including differences in sales charges, expense ratios and cash flows.

THE FIXED ACCOUNT

The Fixed Account is made up of all the general assets of the Company other than those allocated to any separate account. Amounts you allocate to Guarantee Periods become part of the Fixed Account, and are available to fund the claims of all classes of our customers, including claims for benefits under the Contracts.

We will invest the assets of the Fixed Account in those assets we choose that are allowed by applicable state insurance laws. In general, these laws permit investments, within specified limits and subject to certain qualifications, in federal, state and municipal obligations, corporate bonds, preferred and common stocks, real estate mortgages, real estate and certain other investments. We intend to invest primarily in investment-grade fixed income securities (i.e., rated by a nationally recognized rating service within the 4 highest grades) or instruments we believe are of comparable quality.

We are not obligated to invest amounts allocated to the Fixed Account according to any particular strategy, except as may be required by applicable state insurance laws. You will not have a direct or indirect interest in the Fixed Account investments.

THE FIXED ACCOUNT OPTIONS: THE GUARANTEE PERIODS

You may elect one or more Guarantee Periods from those we make available from time to time. We may offer Guarantee Periods of different durations or stop offering some Guarantee Periods. Once we stop offering a Guarantee Period of a particular duration, allocations, transfers or renewals into that Guarantee Period will not be permitted. In addition, we reserve the right not to make any Guarantee Periods available. In such event, renewals will be made into the Money Market Sub-Account. We may choose to exercise this right before the Open Date or at some later time. At any time, we can reverse our decision to exercise this right.

We determine Guaranteed Interest Rates at our discretion. We do not have a specific formula for establishing the rates for different Guarantee Periods. Our determination will be influenced by the interest rates on fixed income investments in which we may invest amounts allocated to the Guarantee Periods. We will also consider other factors in determining these rates, including regulatory and tax requirements, sales commissions and administrative expenses borne by us, general economic trends and competitive factors. We cannot predict the level of future interest rates.

We may from time to time at our discretion offer special interest rates for new Purchase Payments that are higher than the rates we are then offering for renewals or transfers.

Early withdrawals from your allocation to a Guarantee Period, including cash withdrawals, transfers, and commencement of an annuity option, may be subject to a Market Value Adjustment, which could decrease or increase the value of your Account. See "Withdrawals and Market Value Adjustment."

THE ACCUMULATION PHASE

During the Accumulation Phase of your Contract, you make Payments into your Account, and your earnings accumulate on a tax-deferred basis. The Accumulation Phase begins with our acceptance of your first Purchase Payment and ends the Business Day before your Annuity Commencement Date. The Accumulation Phase will end sooner if you surrender your Contract or if the Covered Person dies before the Annuity Commencement Date.

Issuing Your Contract

When we accept your Application, we "open" the Contract. We refer to this date as the "Open Date." When we receive your initial Purchase Payment, we "issue" your Contract. We refer to this date as the "Issue Date."

We will credit your initial Purchase Payment to your Account within 2 Business Days of receiving your completed Application. If your Application is not complete, we will notify you. If we do not have the necessary information to complete the Application within 5 Business Days, we will send your money back to you or ask your permission to retain your Purchase Payment until the Application is made complete. Then we will apply the Purchase Payment within 2 Business Days of when the Application is complete.

Amount and Frequency of Purchase Payments

The amount of Purchase Payments may vary; however, we will not accept an initial Purchase Payment of less than $20,000, and, although there is currently no minimum amount for additional Purchase Payments, we reserve the right to limit each additional Purchase Payment to at least $1,000. In addition, we will not accept a Purchase Payment if your Account Value is over $2 million, or if the Purchase Payment would cause your Account Value to exceed $2 million, unless we have approved the Payment in advance. We reserve the right to refuse Purchase Payments received more than 5 years after your Issue Date or after your 70th birthday, whichever is later. Within these limits, you may make Purchase Payments at any time during the Accumulation Phase.

Allocation of Net Purchase Payments

You may allocate your Purchase Payments among the different Sub-Accounts and Guarantee Periods currently available, but we reserve the right to limit any allocation to a Guarantee Period to at least $1,000.

In your Application, you may specify the percentage of each Purchase Payment to be allocated to each Sub-Account or Guarantee Period. These percentages are called your allocation factors. Your allocation factors will remain in effect as long as your selected Sub-Accounts and Guarantee Periods continue to be available for investment. You may, however, change the allocation factors for future Payments by sending us notice of the change in a form acceptable to us. We will use your new allocation factors for the first Purchase Payment we receive with or after we have received notice of the change, and for all future Purchase Payments, until we receive another change notice.

Although it is currently not our practice, we may deduct applicable premium taxes or similar taxes from your Purchase Payments (see "Contract Charges -- Premium Taxes"). In that case, we will credit your Net Purchase Payment, which is the Purchase Payment minus the amount of those taxes.

Your Account

When we accept your first Purchase Payment, we establish an Account for you, which we maintain throughout the Accumulation Phase of your Contract.

Your Account Value

Your Account Value is the sum of the value of the 2 components of your Contract: the Variable Account portion of your Contract ("Variable Account Value") and the Fixed Account portion of your Contract ("Fixed Account Value"). These 2 components are calculated separately, as described under "Variable Account Value" and "Fixed Account Value."

Variable Account Value

Variable Accumulation Units

In order to calculate your Variable Account Value, we use a measure called a Variable Accumulation Unit for each Sub-Account. Your Variable Account Value is the sum of your Account Value in each Sub-Account, which is the number of your Variable Accumulation Units for that Sub-Account times the value of each Unit.

Variable Accumulation Unit Value

The value of each Variable Accumulation Unit in a Sub-Account reflects the net investment performance of that Sub-Account. We determine that value once on each day that the New York Stock Exchange is open for trading, at the close of trading, which is currently 4:00 p.m., Eastern Time. (The close of trading is determined by the New York Stock Exchange.) We also may determine the value of Variable Accumulation Units of a Sub-Account on days the Exchange is closed if there is enough trading in securities held by that Sub-Account to materially affect the value of the Variable Accumulation Units. Each day we make a valuation is called a "Business Day." The period that begins at the time Variable Accumulation Units are valued on a Business Day and ends at that time on the next Business Day is called a "Valuation Period." On days other than Business Days, the value of a Variable Accumulation Unit does not change.

To measure these values, we use a factor -- which we call the Net Investment Factor -- which represents the net return on the Sub-Account's assets. At the end of any Valuation Period, the value of a Variable Accumulation Unit for a Sub-Account is equal to the value of that Sub-Account's Variable Accumulation Units at the end of the previous Valuation Period, multiplied by the Net Investment Factor. We calculate the Net Investment Factor by dividing (1) the net asset value of a Fund share held in the Sub-Account at the end of that Valuation Period, plus the per share amount of any dividend or capital gains distribution made by that Fund during the Valuation Period, by (2) the net asset value per share of the Fund share at the end of the previous Valuation Period; then, for each day in the Valuation Period, we deduct a factor representing the asset-based insurance charges (the mortality and expense risk charges and the administrative expense charge and distribution fee) plus the applicable asset-based charge for certain optional benefit riders.

For a hypothetical example of how we calculate the value of a Variable Accumulation Unit, see the Statement of Additional Information.

Crediting and Canceling Variable Accumulation Units

When we receive an allocation to a Sub-Account, either from a Net Purchase Payment or a transfer of Account Value, we credit that amount to your Account in Variable Accumulation Units. Similarly, we cancel Variable Accumulation Units when you transfer or withdraw amounts from a Sub-Account, or when we deduct certain charges under the Contract. We determine the number of Units credited or canceled by dividing the dollar amount by the Variable Accumulation Unit value for that Sub-Account at the end of the Valuation Period during which the transaction or charge is effective.

Fixed Account Value

Your Fixed Account Value is the sum of all amounts allocated to Guarantee Periods, either from Net Purchase Payments, transfers or renewals, plus interest credited on those amounts, and minus withdrawals, transfers out of Guarantee Periods, and any deductions for charges under the Contract taken from your Fixed Account Value.

A Guarantee Period begins the day we apply your allocation and ends when all calendar years (or months if the Guarantee Period is less than one year) in the Guarantee Period (measured from the end of the calendar month in which the amount was allocated to the Guarantee Period) have elapsed. The last day of the Guarantee Period is its Renewal Date.

Each additional Purchase Payment, transfer or renewal credited to your Fixed Account Value will result in a new Guarantee Period with its own Renewal Date. Amounts allocated at different times to Guarantee Periods of the same duration may have different Renewal Dates.

Crediting Interest

We credit interest on amounts allocated to a Guarantee Period at the applicable Guaranteed Interest Rate for the duration of the Guarantee Period. During the Guarantee Period, we credit interest daily at a rate that yields the Guaranteed Interest Rate on an annual effective basis.

Guarantee Amounts

Each separate allocation you make to a Guarantee Period, together with interest credited thereon, is called a Guarantee Amount. Each Guarantee Amount is treated separately for purposes of determining the Market Value Adjustment. We may restrict a Guarantee Period that will extend beyond your maximum Annuity Commencement Date. Renewals into a Guarantee Period that extends beyond your maximum Annuity Commencement Date will result in an application of a Market Value Adjustment upon annuitization or withdrawals. We reserve the right to limit each new allocation to a Guarantee Period to at least $1,000.

Renewals

We will notify you in writing between 45 and 75 days before the Renewal Date for any Guarantee Amount. If you would like to change your Fixed Account option, we must receive from you prior to the Renewal Date:

l	written notice from you electing a different Guarantee Period from among those we then offer, or
l	written instructions to transfer the Guarantee Amount to one or more Sub-Accounts, in accordance with the transfer privilege provisions of the Contract (see "Transfer Privilege").

If we receive no instructions from you prior to the Renewal Date, we will automatically renew your Fixed Account allocation into a new Guarantee Period of the same duration as the last Guarantee Period. If we are no longer offering a Guarantee Period of the same duration, we will automatically transfer your Fixed Account allocation into the Money Market Sub-Account.

A Guarantee Amount will not renew into a Guarantee Period that will extend beyond your maximum Annuity Commencement Date. In that case, unless you notify us otherwise, we will automatically transfer your Guarantee Amount into the Money Market Sub-Account.

These automatic transfers of Fixed Account Value into the Money Market Sub-Account will not count as a transfer for purposes of the transfer restrictions described under "Transfer Privilege."

Early Withdrawals

If you withdraw, transfer, or annuitize an allocation from a Guarantee Period more than 30 days prior to the Renewal Date, we will apply a Market Value Adjustment to the transaction. This could result in an increase or a decrease of your Account Value, depending on interest rates at the time. You bear the risk that you will receive less than your principal if the Market Value Adjustment applies. See "Withdrawals and Market Value Adjustment."

Transfer Privilege

Permitted Transfers

During the Accumulation Phase, you may transfer all or part of your Account Value to one or more Sub-Accounts or Guarantee Periods then available, subject to the following restrictions:

l	you may not make more than 12 transfers in any Account Year;
l	the amount transferred from a Guarantee Period must be the entire Guarantee Amount, except for transfers of interest credited during the current Account Year;
l	at least 30 days must elapse between transfers to and from Guarantee Periods;
l	at least 6 days must elapse between transfers to and from the Sub-Accounts;
l	transfers to or from Sub-Accounts are subject to terms and conditions that may be imposed by the Funds; and
l	we impose additional restrictions on market timers, which are further described below.

These restrictions do not apply to transfers made under any Optional Programs. At our discretion, we may waive some or all of these restrictions.

We reserve the right to waive these restrictions and exceptions at any time, as discussed under "Short-Term Trading," or to change them. Any change will be applied uniformly. We will notify you of any change prior to its effectiveness.

There is usually no charge imposed on transfers; however, we reserve the right to impose a transfer charge of $15 for each transfer. Transfers out of a Guarantee Period more than 30 days before the Renewal Date or any time after the Renewal Date will be subject to the Market Value Adjustment described below. Under current law, there is no tax liability for transfers.

Requests for Transfers

You may request transfers in writing or by telephone. If the request is by telephone, it must be made before the earlier of (a) 4:00 p.m. Eastern Time on a Business Day, or (b) the close of the New York Stock Exchange on days that the Stock Exchange closes before 4:00 p.m. The telephone transfer privilege is available automatically during regular business hours before 4:00 p.m. Eastern Time, and does not require your written election. We will require personal identifying information to process a request for a transfer made by telephone. We will not be liable for following instructions communicated by telephone that we reasonably believe are genuine.

Your transfer request will be effective as of the close of the Business Day if we receive your transfer request before the earlier of (a) 4:00 p.m. Eastern Time on a Business Day or (b) the close of the New York Stock Exchange on days that the Stock Exchange closes before 4:00 p.m. Otherwise, your transfer request will be effective on the next Business Day.

Short-Term Trading

The Contracts are not designed for short-term trading. If you wish to employ such strategies, do not purchase a Contract. Transfer limits and other restrictions, described below, are subject to our ability to monitor transfer activity. Some Contract Owners and their third party intermediaries engaging in short-term trading may employ a variety of strategies to avoid detection. Despite our efforts to prevent short-term trading, there is no assurance that we will be able to identify such Contract Owners or intermediaries or curtail their trading. A failure to detect and curtail short-term trading could result in adverse consequences to the Contract Owners. Short-term trading can increase costs for all Contract Owners as a result of excessive portfolio transaction fees. In addition, short-term trading can adversely affect a Fund's performance. If large amounts of money are suddenly transferred out of a Fund, the Fund's investment adviser cannot effectively invest in accordance with the Fund's investment objectives and policies.

The Company has policies and procedures to discourage frequent transfers of contract value. As described under "Transfer Privilege," such policies include limiting the number and timing of certain transfers, subject to exceptions described in that section and exceptions designed to protect the interests of individual Contract Owners. The Company also reserves the right to charge a fee for transfers.

Short-term trading activities whether by the Contract Owner or a third party authorized to initiate transfer requests on behalf of Contract Owner(s) may be subject to other restrictions as well. For example, we reserve the right to take actions against short-term trading which restrict your transfer privileges (including transfers to and from the Fixed Account) more narrowly than the policies described under "Transfer Privilege", such as requiring transfer requests to be submitted in writing through regular first-class U.S. mail (e.g. no overnight, priority, or courier delivery allowed) and refusing any and all transfer instructions.

If we determine that a third party acting on your behalf is engaging (alone or in combination with transfers effected by you directly) in a pattern of short-term trading, we may refuse to process certain transfers requested by such a third party. We impose additional administrative restrictions on third parties that engage in transfers of Contract Values on behalf of multiple Contract Owners at one time. Specifically, we limit the form of such large group transfers to fax or mail delivery only, require the third party to provide us with advance notice of any possible large group transfer so that we can have additional staff ready to process the request, and require that the amount transferred out of a Sub-Account for each Contract Owner be equal to 100% of that Contract Owner's value in the Sub-Account.

We will provide you written notification of any restrictions imposed.

We reserve the right to waive short-term trading restrictions, where permitted by law and not adverse to the interests of the relevant underlying Fund, in the following instances:

l	when a new broker of record is designated for the Contract;
l	when the Participant changes;
l	when control of the Contract passes to the designated beneficiary upon the death of the Participant or Annuitant;
l	when necessary in our view to avoid hardship to a Participant; or
l	when underlying Funds are dissolved or merged or substituted.

If short-term trading results as a consequence of waiving the restrictions against short-term trading, it could expose Contract Owners to certain risks. The short-term trading could increase costs for all Contract Owners as a result of excessive portfolio transaction fees. In addition, the short-term trading could adversely affect a Fund's performance. If large amounts of money are suddenly transferred out of a Fund, the Fund's investment adviser cannot effectively invest in accordance with the Fund's investment objectives and policies. Unless the short-term trading policy and the permitted waivers of that policy are applied uniformly, some Contract Owners may experience a different application of the policy and therefore may experience some of the risks. We uniformly apply the short-term trading policy and the permitted waivers of that policy to all Contracts. If we did not do so, some Contract Owners could experience a different application of the policy and therefore may be treated unfairly. Too much discretion on our part in allowing the waivers of short-term trading policy could result in an unequal treatment of short-term traders by permitting some short-term traders to engage in short-term trading while prohibiting others from doing the same.

     Funds' Shareholder Trading Policies

In addition to the restrictions that we impose (as described under "Permitted Transfers" and "Short-Term Trading"), most of the Funds have adopted restrictions or other policies about transfers or other purchases and sales of the Fund's shares. These policies (the "Funds' Shareholder Trading Policies") are intended to protect the Fund from short-term trading or other trading practices that are potentially harmful to the Fund. The Funds' Shareholder Trading Policies may be more restrictive in some respects than the restrictions that we otherwise would impose, and the Funds may modify their Shareholder Trading Policies from time to time.

We are legally obligated to provide (at the Funds' request) information about each amount you cause to be deposited into a Fund (including by way of Purchase Payments and transfers under your Contract) or removed from the Fund (including by way of withdrawals and transfers under your Contract). If a Fund identifies you as having violated the Fund's Shareholder Trading Policies, we are obligated, if the Fund requests, to restrict or prohibit any further deposits or exchanges by you (or a third party acting on your behalf) in respect of that Fund. Any such restriction or prohibition may remain in place indefinitely.

Accordingly, if you do not comply with any Fund's Shareholder Trading Policies, you (or a third party acting on your behalf) may be prohibited from directing any additional amounts into that Fund or directing any transfers or other exchanges involving that Fund. You should review and comply with each Fund's Shareholder Trading Policies, which are disclosed in the Funds' current prospectuses.

Funds may differ significantly as to such matters as: (a) the amount, format, and frequency of information that the Funds request from us about transactions that our customers make; and (b) the extent and nature of any limits or restrictions that the Funds request us to impose upon such transactions. As a result of these differences, the costs borne by us and (directly or indirectly) by our customers may be significantly increased. Any such additional costs may outweigh any additional protection that would be provided to our customers, particularly in view of the protections already afforded by the trading restrictions that we impose as described under "Permitted Transfers" and under " Short-Term Trading." Also, if a Fund imposes more strict trading restrictions than are reasonably necessary under the circumstances, you could be deprived of potentially valuable flexibility to make transactions with respect to that Fund. For these and other reasons, we may disagree with the timing or substance of a Fund's requests for information from us or with any transaction limits or restrictions that the Fund requests us to impose upon our customers. If any such disagreement with respect to a Fund cannot be satisfactorily resolved, the Fund might be restricted or, subject to obtaining any required regulatory approval, replaced as a variable investment option.

Waivers; Reduced Charges; Special Guaranteed Interest Rates

We may reduce or waive the mortality and expense risk charges, the administrative service fee, the distribution fee, or the annual Account Fee, credit additional amounts, grant Special Guaranteed Interest Rates in certain situations, or offer other options or benefits. These situations may include sales of Contracts (1) where selling and/or maintenance costs associated with the Contracts are reduced, such as the sale of several Contracts to the same Participant, sales of large Contracts, and certain group sales, and (2) to officers, directors and employees of the Company or its affiliates, registered representatives and employees of broker-dealers with a current selling agreement with the Company and affiliates of such representatives and broker-dealers, employees of affiliated asset management firms, and persons who have retired from such positions ("Eligible Employees") and immediate family members of Eligible Employees. Eligible Employees and their immediate family members may also purchase a Contract without regard to minimum Purchase Payment requirements.

Other Programs

     Monitoring Service

You may elect, no later than your Issue Date, to participate in the Privacy Guard program offered through Affinion Services Group, Inc. ("Affinion"). This program is designed to help you access and monitor personal information that is recorded by national credit reporting agencies, by supplying you with a credit report and providing periodic monitoring of any new activity on your credit accounts. To participate in this program, you must authorize us to release certain information to Affinion. This will allow Affinion to set up your participation in Privacy Guard. If you elect Privacy Guard, your participation in this program will be free of charge for a period of twelve months from your Issue Date or until you cancel your Contract, if sooner. After the initial twelve-month period, you will be billed directly by Affinion for this service. You may terminate your participation in this program at any time. If you surrender your Contract within the first year, your participation in the program will automatically end. This program may not be available in your state.

You may participate in any of the following Optional Programs free of charge. Transfers made pursuant to the provisions of the following optional programs will not be charged a transfer fee, nor will such transfers count as one of the 12 free transfers per year allowed under the section entitled "Transfer Privilege."

Dollar-Cost Averaging

Dollar-cost averaging allows you to invest gradually, over time, in up to 12 Sub-Accounts. You may select a dollar-cost averaging program at no extra charge by allocating a minimum amount to a designated Sub-Account or to a Guarantee Period we make available in connection with the program. (We reserve the right to limit minimum investments to at least $1,000.) Amounts allocated to the Fixed Account under the program will earn interest at a rate declared by the Company for the Guarantee Period you select. Previously applied amounts may not be transferred to a Guarantee Period made available in connection with this program. At regular time intervals, we will transfer the same amount automatically to one or more Sub-Accounts that you choose, up to a maximum of 12 Sub-Accounts. The program continues until your Account Value allocated to the program is depleted or you elect to stop the program. The final amount transferred from the Fixed Account will include all interest earned.

No Market Value Adjustment (either positive or negative) will apply to amounts automatically transferred from the Fixed Account under the dollar-cost averaging program. However, if you discontinue or alter the program prior to completion, amounts remaining in the Fixed Account will be transferred to the Money Market Sub-Account, unless you instruct us otherwise, and the Market Value Adjustment will be applied. Any allocation of a new Purchase Payment to the program will be treated as commencing a new dollar-cost averaging program and may be subject to the $1,000 minimum investment limit.

The main objective of a dollar-cost averaging program is to minimize the impact of short-term price fluctuations on Account Value. In general, since you transfer the same dollar amount to the variable investment options at set intervals, dollar-cost averaging allows you to purchase more Variable Accumulation Units (and, indirectly, more Fund shares) when prices are low and fewer Variable Accumulation Units (and, indirectly, fewer Fund shares) when prices are high. Therefore, you may achieve a lower average cost per Variable Accumulation Unit over the long term. A dollar-cost averaging program allows you to take advantage of market fluctuations. However, it is important to understand that a dollar-cost averaging program does not insure a profit or protect against loss in a declining market. We do not allow transfers into any of the Guarantee Periods pursuant to the dollar-cost averaging program.

Asset Allocation

One or more asset allocation programs may be available in connection with the Contract, at no extra charge. Asset allocation is the process of investing in different asset classes -- such as equity funds, fixed income funds, and money market funds -- depending on your personal investment goals, tolerance for risk, and investment time horizon. By spreading your money among a variety of asset classes, you may be able to reduce the risk and volatility of investing, although there are no guarantees, and asset allocation does not insure a profit or protect against loss in a declining market.

Currently, you may select one of the asset allocation models, each of which represents a combination of Sub-Accounts with a different level of risk. These asset allocation models, as well as the terms and conditions of the asset allocation program, are fully described in a separate brochure. We may add or delete such programs in the future.

Our asset allocation programs are "static" programs. That is to say, if you elect an asset allocation program, we automatically rebalance your Account Value among the Sub-Accounts represented in the model you chose, but we do not change your original percentage allocations among the Sub-Accounts in your chosen model, unless you advise us to do so. Nevertheless, we have selected an independent third-party administrator who reviews the existing models annually to determine whether the investment objective of the model is being met in light of changing markets. Based upon this review, the third-party administrator may recommend that new models be substituted for the existing models. If so, the new models will only be offered to Contracts issued on or after the date the new model goes into effect or to Owners who elect an asset allocation program on or after that date. Owners of any existing asset allocation programs may make an independent decision to change their asset allocations at any time. You should consult your financial adviser periodically to consider whether the model you have selected is still appropriate for you.

Systematic Withdrawal and Interest Out Programs

You may select our Systematic Withdrawal Program or our Interest Out Program. Under the Systematic Withdrawal Program, you determine the amount and frequency of regular withdrawals you would like to receive from your Fixed Account Value and/or Variable Account Value and we will effect them automatically. Under the Interest Out Program, we automatically pay you, or reinvest, interest credited for all Guarantee Periods you have chosen. The withdrawals under these programs may be subject to a Market Value Adjustment. They may also be included as income and subject to a 10% federal tax penalty. You should consult a qualified tax professional before choosing these options. We reserve the right to limit the election of either of these programs to Contracts with a minimum Account Value of $10,000.

You may change or stop either program at any time, by written notice to us or other means approved by us.

Portfolio Rebalancing Program

Under the Portfolio Rebalancing Program, we transfer funds among all Sub-Accounts to maintain the percentage allocation you have selected among these Sub-Accounts. At your election, we will make these transfers on a quarterly, semi-annual or annual basis.

No transfers to or from any Guarantee Period are permitted while this program is in effect.

     Secured Future Program

Under the Secured Future Program, we divide your Purchase Payments between the Fixed Account and the Variable Account. For the Fixed Account portion, you choose a Guarantee Period from among those we offer. We then allocate to that Guarantee Period the portion of your Purchase Payment necessary so that, at the end of the Guarantee Period, your Fixed Account allocation, including interest, will equal the entire amount of your original Purchase Payment, less the amount of any Contract charges that have been deducted from the Fixed Account. The remainder of the original Purchase Payment will be invested in the Sub-Accounts of your choice. At the end of the Guarantee Period, you will be guaranteed the amount of your original Purchase Payment (assuming no withdrawals or transfers), plus you will have the benefit, if any, of the investment performance of the Sub-Accounts you have chosen.

WITHDRAWALS AND MARKET VALUE ADJUSTMENT

Cash Withdrawals

Requesting a Withdrawal

At any time during the Accumulation Phase, you may withdraw in cash all or any portion of your Account Value. To make a withdrawal, other than a Systematic Withdrawal, you must send us a written request at our Annuity Mailing Address. Your request must specify whether you want to withdraw the entire amount of your Account or, if less, the amount you wish to receive.

We do not deduct any sales charge from your Purchase Payments when they are made, nor do we impose a withdrawal charge (known as a "contingent deferred sales charge") on amounts you withdraw.

However, all withdrawals from your Fixed Account Value may be subject to a Market Value Adjustment (see "Market Value Adjustment"). Withdrawals also may have adverse income tax consequences, including a 10% penalty tax (see "Tax Considerations"). You should carefully consider these tax consequences before requesting a cash withdrawal.

Full Withdrawals

If you request a full withdrawal, we calculate the amount we will pay you as follows: we start with your Account Value at the end of the Valuation Period during which we receive your withdrawal request; we deduct the Account Fee, if applicable, for the Account Year in which the withdrawal is made; and finally, we add or subtract the amount of any Market Value Adjustment applicable to your Fixed Account Value.

A full withdrawal results in the surrender of your Contract, and cancellation of all rights and privileges under your Contract.

Partial Withdrawals

Unless you specify otherwise, when you request a partial withdrawal, we will pay you the amount specified in your request adjusted by any applicable charges and/or MVA and then reduce the value of your Account by the gross amount of the withdrawal .

You may specify the amount you want withdrawn from each Sub-Account and/or Guarantee Amount to which your Account is allocated. If you do not so specify, we will deduct the total amount you request pro rata, based on your Account Value at the end of the Valuation Period during which we receive your request.

Partial withdrawals may affect the death benefit amount. In calculating the amount payable under the death benefit, we may reduce the death benefit by an amount that is greater than the amount of the withdrawal, depending on the circumstances. Accordingly, you should refer to the more detailed discussions of the optional death benefit riders that appear elsewhere in this Prospectus for information about the effects that withdrawals will have on those benefits.

If you request a partial withdrawal that would result in your Account Value being reduced to an amount less than the Account Fee for the Account Year in which you make the withdrawal, we reserve the right to treat it as a request for a full withdrawal.

     Time of Payment

We will pay you the applicable amount of any full or partial withdrawal within 7 days after we receive your withdrawal request, except in cases where we are permitted, and choose, to defer payment under the Investment Company Act of 1940 and applicable state insurance law. Currently, we may defer payment of amounts you withdraw from the Variable Account only for the following periods:

l	when the New York Stock Exchange is closed (except weekends and holidays) or when trading on the New York Stock Exchange is restricted;
l	when it is not reasonably practical to dispose of securities held by a Fund or to determine the value of the net assets of a Fund, because an emergency exists; or
l	when a SEC order permits us to defer payment for the protection of Participants.

We also may defer payment of amounts you withdraw from the Fixed Account for up to 6 months from the date we receive your withdrawal request. We do not pay interest on the amount of any payments we defer.

     Withdrawal Restrictions for Qualified Plans

If your Contract is a Qualified Contract, you should carefully check the terms of your retirement plan for limitations and restrictions on cash withdrawals.

Special restrictions apply to withdrawals from Contracts used for Section 403(b) annuities. (See "Tax Considerations -- Tax-Sheltered Annuities.")

Market Value Adjustment

If permitted under the laws of your state, we will apply a Market Value Adjustment if you withdraw or transfer amounts from your Fixed Account Value more than 30 days before the end of the applicable Guarantee Period. For this purpose, using Fixed Account Value to provide an annuity is considered a withdrawal, and the Market Value Adjustment will apply. However, we will not apply the Market Value Adjustment to automatic transfers to a Sub-Account from a Guarantee Period as part of our dollar-cost averaging program.

We apply the Market Value Adjustment separately to each Guarantee Amount in the Fixed Account, that is to each separate allocation you have made to a Guarantee Period together with interest credited on that allocation. However, we do not apply the adjustment to the amount of interest credited during your current Account Year. Any withdrawal from a Guarantee Amount is attributed first to such interest.

A Market Value Adjustment may decrease, increase or have no effect on your Account Value. This will depend on changes in interest rates since you made your allocation to the Guarantee Period and the length of time remaining in the Guarantee Period. In general, if the Guaranteed Interest Rate we currently declare for Guarantee Periods equal to the balance of your Guarantee Period (or your entire Guarantee Period for Guarantee Periods of less than one year) is higher than your Guaranteed Interest Rate, the Market Value Adjustment is likely to decrease your Account Value. If our current Guaranteed Interest Rate is lower, the Market Value Adjustment is likely to increase your Account Value.

We determine the amount of the Market Value Adjustment by multiplying the amount that is subject to the adjustment by the following formula:

[(1 + I) ÷ (1 + J + b)]^(N/12)  - 1

where:

I	is the Guaranteed Interest Rate applicable to the Guarantee Amount from which you withdraw, transfer or annuitize;
J	is the Guaranteed Interest Rate we declare at the time of your withdrawal, transfer or annuitization for Guarantee Periods equal to the length of time remaining in the Guarantee Period applicable to your Guarantee Amount, rounded to the next higher number of complete years, for Guarantee Periods of one year or more. For any Guarantee Periods of less than one year, J is the Guaranteed Interest Rate we declare at the time of your withdrawal, transfer or annuitization for a Guarantee Period of the same length as your Guarantee Period. If, at that time, we do not offer the applicable Guarantee Period we will use an interest rate determined by straight-line interpolation of the Guaranteed Interest Rates for the Guarantee Periods we do offer;
N	is the number of complete months remaining in your Guarantee Period; and
b	is a factor that currently is 0%, but that in the future we may increase to up to 0.25%. Any increase would be applicable only to Participants who purchase their Contracts after the date of that increase. The "b" factor is the amount that will be used to cover market volatility (i.e., credit risk), basis risk, and/or liquidity costs.

We will apply the Market Value Adjustment to the amount being withdrawn after deduction of any Account Fee, if applicable, but before we impose any withdrawal charge on the amount withdrawn.

For examples of how we calculate the Market Value Adjustment, see Appendix B.

CONTRACT CHARGES

Account Fee

During the Accumulation Phase of your Contract, we will deduct from your Account an annual Account Fee of $50 to help cover the administrative expenses we incur related to the issuance of Contracts and the maintenance of Accounts. We deduct the Account Fee on each Account Anniversary. We deduct the Account Fee pro rata from each Sub-Account and each Guarantee Period, based on the allocation of your Account Value on your Account Anniversary.

We will not charge the Account Fee if:

l	your Account Value has been allocated only to the Fixed Account during the applicable Account Year; or
l	your Account Value is $100,000 or more on your Account Anniversary.

If you make a full withdrawal of your Account, we will deduct the full amount of the Account Fee at the time of the withdrawal. In addition, on the Annuity Commencement Date we will deduct a pro rata portion of the Account Fee to reflect the time elapsed between the last Account Anniversary and the day before the Annuity Commencement Date.

After the Annuity Commencement Date, we will deduct an annual Account Fee of $50 in the aggregate in equal amounts from each Variable Annuity payment we make during the year. We do not deduct any Account Fee from Fixed Annuity payments.

Administrative Expense Charge and Distribution Fee

We deduct an administrative expense charge from the assets of the Variable Account at an annual effective rate equal to 0.15% of your average daily Variable Account Value during both the Accumulation Phase and the Income Phase. This charge is designed to reimburse us for expenses we incur in administering the Contracts, Participant Accounts and the Variable Account that are not covered by the annual Account Fee.

We also deduct a distribution fee from the assets of the Variable Account at an effective annual rate equal to 0.20% of your average daily Variable Account Value during both the Accumulation Phase and the Income Phase. This charge is designed to reimburse us for the expenses associated with distributing and issuing the Contracts.

Depending on the amount of expenses that we incur, we expect that we may earn a profit from these charges. If so, we may use the profit for any proper corporate purpose, including paying any other expenses in connection with the Contracts or adding to our corporate surplus.

Mortality and Expense Risk Charge

During the Accumulation Phase, we deduct a mortality and expense risk charge from the assets of the Variable Account at an effective annual rate equal to 1.35% of your average daily Variable Account Value. If your Purchase Payments or Account Value exceeds $1 million on your Account Anniversary, an amount equal to 0.15% of your Account Value will be credited to your Account on that date and on every subsequent Account Anniversary during the Accumulation Phase. (The credit is paid out of our general account and is the result of cost savings that we expect on larger-sized Contracts.) We assume numerous mortality and expense risks under the Contracts. These risks include, but are not limited to, (1) the risk that arises from our contractual obligation to continue to make annuity payments to each Annuitant, regardless of how long the Annuitant lives and regardless of how long all Annuitants as a group live: (2) the risk that arises from our contractual obligation to pay a death benefit upon the death of the Participant prior to the Annuity Commencement Date, including in cases where the death benefit is greater than a Contract's Account Value; (3) the risk that our cost of providing benefits according to the terms of any optional death benefit riders will exceed the amount of the charges we deduct for those riders; and (4) the risk that the annual Account Fee, administrative expense charge, and the distribution fee we assess under the Contract may be insufficient to cover the actual total administrative expenses we incur. If the amount of the charge is insufficient to cover our costs resulting from these and other mortality and expense risks, we will bear the loss. If, as we expect, the amount of the charge is more than sufficient to cover tsuch costs, we will make a profit on the charge. We may use this profit for any proper corporate purpose, including the payment of marketing and distribution expenses for the Contract. In setting the rate of this charge, we not only consider our expected mortality and expense risks, but also our objective to earn a profit from the Contracts, after all of the costs, expenses, credits, and benefits we expect to pay in connection with the Contracts.

For Contracts purchased prior to March 5, 2007, the rate of the mortality and expense risk charge is 1.55% (rather than 1.35%), if you were age 76 or older on the Contract's Open Date. Also, during the Income Phase of a Contract, the total insurance charges are at an annual rate of 1.70% of the average daily net value of the Contract invested in the Variable Account, regardless of your age on the Open Date.

Charges for Optional Death Benefit Riders

If you elect an optional death benefit rider, we will deduct, during the Accumulation Phase, a charge based on your average daily Variable Account Value depending upon which of the optional death benefit rider(s) you elect. The effective annual percentage rates of these charges are set out below.

	% of Variable
Rider(s) You Elect*	Account Value
"MAV"	0.20%
"5% Roll-Up"	0.20%
"EEB Premier"	0.25%
"EEB Premier with MAV"	0.40%
"EEB Premier with 5% Roll-Up"	0.40%
"EEB Premier Plus"	0.40%

* As defined under "Optional Death Benefits."

Premium Taxes

Some states and local jurisdictions impose a premium tax on us that is equal to a specified percentage of the Purchase Payments you make. In many states there is no premium tax. We believe that the amounts of applicable premium taxes currently range from 0% to 3.5%. You should consult a qualified tax professional to find out if your state imposes a premium tax and the amount of any tax.

In order to reimburse us for the premium tax we may pay on Purchase Payments, our policy is to deduct the amount of such taxes from the amount you apply to provide an annuity at the time of annuitization. However, we reserve the right to deduct the amount of any applicable tax from your Account at any time, including at the time you make a Purchase Payment or make a full or partial withdrawal. We do not make any profit on the deductions we make to reimburse premium taxes.

Fund Expenses

There are fees and charges deducted from each Fund. These fees and expenses are described in the Fund prospectuses and related Statements of Additional Information.

Modification In the Case of Group Contracts

For Group Contracts, we may modify the annual Account Fee, the administrative expense charge and the mortality and expense risk charge upon notice to Owners. However, such modification will apply only with respect to Participant Accounts established after the effective date of the modification.

DEATH BENEFIT

If the Covered Person dies during the Accumulation Phase, we may pay a death benefit to the designated Beneficiary(ies), using the payment method elected (a single cash payment or one of our Annuity Options). If the Beneficiary is not living on the date of death of the Covered Person, we may pay the death benefit to the surviving Participant, if any, or, if there is no surviving Participant, in one sum to your estate. We do not pay a death benefit if the Covered Person dies during the Income Phase. However, the Beneficiary will receive any annuity payments provided under an Annuity Option that is in effect. If the Contract names more than one Owner, we will pay the death benefit upon the first death of such Owners.

Amount of Death Benefit

To calculate the amount of the death benefit, we use a "Death Benefit Date." The Death Benefit Date is the date we receive Due Proof of Death of the Covered Person in an acceptable form, if you have elected a death benefit payment method before the death of the Covered Person and it remains in effect. Otherwise, the Death Benefit Date is the later of the date we receive Due Proof of Death or the date we receive the Beneficiary's election of either payment method or, if the Beneficiary is your spouse, Contract continuation. If we do not receive the Beneficiary's election within 60 days after we receive Due Proof of Death, we reserve the right to provide a lump sum to your Beneficiary.

The amount of the death benefit is determined as of the Death Benefit Date.

The Basic Death Benefit

In general, if you were 85 or younger on your Open Date (the date we receive your Application in good order), the death benefit will be the greatest of the following amounts:

(1)	your Account Value for the Valuation Period during which the Death Benefit Date occurs;
(2)	the amount we would pay if you had surrendered your entire Account on the Death Benefit Date; and
(3)	your total Adjusted Purchase Payments (Purchase Payments x (Account Value after withdrawal ÷ Account Value before withdrawal)) as of the Death Benefit Date. See "Calculating the Death Benefit." Because of the way that Adjusted Purchase Payments are computed, a withdrawal may cause the basic death benefit to decrease by more than the amount of the withdrawal.

If you were 86 or older on your Open Date, the death benefit is equal to amount (2) above. Because this amount will reflect any applicable Market Value Adjustment, it may be less than your Account Value.

Optional Death Benefit Riders

Subject to availability in your state, you may enhance the "basic death benefit" by electing one or more of the following optional death benefit riders. You must make your election on or before the Issue Date. You will pay a charge for each optional death benefit rider you elect. (For a description of these charges, see "Charges for Optional Death Benefit Riders.") The riders are available only if you are younger than 80 on the Open Date. The optional death benefit election may not be changed after the Contract is issued. The death benefit under all optional death benefit riders will be adjusted for all partial withdrawals as described in this Prospectus under the heading "Calculating the Death Benefit." For examples of how the death benefit is calculated under the optional death benefit riders, see Appendix C.

If your Contract is a Qualified Contract, required minimum distributions under the Internal Revenue Code may affect the value of these optional benefits to you. Please refer to "Impact of Optional Death Benefit Riders" under "TAX CONSIDERATIONS" for more information regarding tax issues that you should consider before electing these optional benefits.

Maximum Anniversary Account Value ("MAV") Rider

Under this rider, the death benefit will be the greater of:

l	the amount payable under the basic death benefit above, or
l	your Highest Account Value on any Account Anniversary before the Covered Person's 81st birthday, adjusted for any subsequent Purchase Payments and partial withdrawals made between that Account Anniversary and the Death Benefit Date.

In determining the Highest Account Value, on the second and each subsequent Account Anniversary, the current Account Value is compared to the previous Highest Account Value, adjusted for any Purchase Payments and partial withdrawals made during the Account Year ending on that Account Anniversary. If the current Account Value exceeds the adjusted Highest Account Value, the current Account Value will become the new Highest Anniversary Account Value.

     5% Premium Roll-Up ("5% Roll-Up") Rider

Under this rider, the death benefit will be the greater of:

l	the amount payable under the basic death benefit above, or
l	the sum of your total purchase payments plus interest accruals, adjusted for partial withdrawals.

Under this rider, interest accrues at a rate of 5% per year on Purchase Payments and transfers to the Variable Account while they remain in the Variable Account. The 5% interest accruals will continue until the earlier of:

l	the first day of the month following your 80th birthday, or
l	the day the death benefit amount under this rider equals twice the sum of your Adjusted Purchase Payments.

Earnings Enhancement Benefit Premier ("EEB Premier") Rider

If you elect this EEB Premier Rider, your death benefit will be the amount payable under the basic death benefit, PLUS the "EEB Premier amount." Calculated as of the Death Benefit Date, the "EEB Premier amount" is determined as follows:

l

If you are 69 or younger on your Open Date, the "EEB Premier amount" will be 45% of the difference between your Account Value and your Adjusted Purchase Payments, up to a cap. The cap is 100% of (a) the Adjusted Purchase Payments made prior to your death minus any Purchase Payments made within the twelve months prior to your death but not within your first Account Year.

l

If you are between the ages of 70 and 79 on your Open Date, the "EEB Premier amount" will be 25% of the difference between your Account Value and your Adjusted Purchase Payments, up to a cap. The cap is 40% of (a) the Adjusted Purchase Payments made prior to your death minus (b) any Purchase Payments made in the twelve months prior to your death but not within your first Account Year. In addition, on the Account Anniversary following your 85th birthday, the "EEB Premier amount" will be locked in. Partial withdrawals, whether before or after your 85th birthday, will proportionally reduce the "EEB Premier amount."

Earnings Enhancement Benefit Premier with MAV ("EEB Premier with MAV") Rider

If you elect this EEB Premier with MAV Rider, your death benefit will be the amount payable under the MAV Rider PLUS the "EEB Premier amount." Calculated as of your Death Benefit Date, the "EEB Premier amount" is as follows:

l

If you are 69 or younger on your Open Date, the "EEB Premier amount" will be 45% of the difference between your Account Value and your Adjusted Purchase Payments, up to a cap. The cap is 100% of (a) the Adjusted Purchase Payments made prior to your death minus (b) any Purchase Payments made in the twelve months prior to your death but not within your first Account Year.

l

If you are between the ages of 70 and 79 on your Open Date, the "EEB Premier amount" will be 25% of the difference between your Account Value and your Adjusted Purchase Payments, up to a cap. The cap is 40% of (a) the Adjusted Purchase Payments made prior to your death minus (b) any Purchase Payments made in the twelve months prior to your death but not within your first Account Year. In addition, on the Account Anniversary following your 85th birthday, the "EEB Premier amount" will be locked in. Partial withdrawals, whether before or after your 85th birthday, will proportionally reduce the "EEB Premier amount."

Earnings Enhancement Benefit Premier with 5% Roll-Up ("EEB Premier with 5% Roll-Up") Rider

If you elect this EEB Premier with 5% Roll-Up Rider, your death benefit will be the amount payable under the 5% Roll-Up Rider PLUS the "EEB Premier amount." Calculated as of your Death Benefit Date, the "EEB Premier amount" is determined as follows:

l

If you are 69 or younger on your Open Date, the "EEB Premier amount" will be 45% of the difference between your Account Value and your Adjusted Purchase Payments, up to a cap. The cap is 100% of (a) the Adjusted Purchase Payments made prior to your death minus (b) any Purchase Payments made in the twelve months prior to your death but not within your first Account Year.

l

If you are between the ages of 70 and 79 on your Open Date, the "EEB Premier amount" will be 25% of the difference between your Account Value and your Adjusted Purchase Payments, up to a cap. The cap is 40% of (a) the Adjusted Purchase Payments made prior to your death minus (b) any Purchase Payments made in the twelve months prior to your death but not within your first Account Year. In addition, on the Account Anniversary following your 85th birthday, the "EEB Premier amount" will be locked in. Partial withdrawals, whether before or after your 85th birthday, will proportionally reduce the "EEB Premier amount."

     Earnings Enhancement Benefit Premier Plus ("EEB Premier Plus") Rider

If you elect this EEB Premier Plus Rider, your death benefit will be the amount payable under the basic death benefit, PLUS the "EEB Premier Plus amount." Calculated as of the Death Benefit Date, the "EEB Premier Plus amount" is determined as follows:

l

If you are 69 or younger on your Open Date, the "EEB Premier Plus amount" will be 75% of the difference between your Account Value and your Adjusted Purchase Payments, up to a cap. The cap is 150% of (a) the Adjusted Purchase Payments made prior to your death minus (b) any Purchase Payments made within the 12 months prior to your death but not within your first Account Year.

l

If you are between the ages of 70 and 79 on your Open Date, the "EEB Premier Plus amount" will be 35% of the difference between your Account Value and your Adjusted Purchase Payments, up to a cap. The cap is 60% of (a) the Adjusted Purchase Payments made prior to your death minus (b) any Purchase Payments made in the twelve months prior to your death but not within your first Account Year. In addition, on the Account Anniversary following your 85th birthday, the "EEB Premier Plus amount" will be locked in. Partial withdrawals, whether before or after your 85th birthday, will proportionally reduce the "EEB Premier Plus amount."

Spousal Continuance

If you are the Covered Person and your spouse is the sole Beneficiary, upon your death your spouse may elect to continue the Contract as the Participant and Covered Person, rather than receive the death benefit amount. In that case, we will not pay a death benefit, but the Contract's Account Value will be equal to your Contract's death benefit amount, as defined under the "basic death benefit" or any optional death benefit rider you have selected. All Contract provisions, including any optional death benefit rider you have selected (subject to the optional death benefit rider age restriction), will continue as if your surviving spouse had purchased the Contract on the Death Benefit Date with a deposit equal to the death benefit amount. For purposes of calculating death benefits and expenses from that date forward, your surviving spouse's age on the original effective date of the Contract will be used. Upon surrender or annuitization, this step-up to the surviving spouse will not be treated as premium, but will be treated as income.

Calculating the Death Benefit

In calculating the death benefit amount payable under option (3) of the "Basic Death Benefit" or any of the optional death benefit riders, any partial withdrawals will reduce the death benefit amount to an amount equal to the death benefit amount immediately before the withdrawal multiplied by the ratio of the Account Value immediately after the withdrawal to the Account Value immediately before the withdrawal. Because of the way these adjustments are computed, a withdrawal may cause the basic death benefit to decrease by more than the amount of the withdrawal.

If the death benefit is the amount payable under options (2) or (3) of the "Basic Death Benefit" or under any of the optional death benefit riders, your Account Value may be increased by the excess, if any, of that amount over option (1) of the "Basic Death Benefit." Any such increase will be allocated to the Sub-Accounts in proportion to your Account Value in those Sub-Accounts on the Death Benefit Date. Such increase will be made only if the Beneficiary elects to annuitize, elects to defer annuitization, or elects to continue the Contract. Also, any portion of this new Account Value attributed to the Fixed Account will be transferred to the available Money Market Fund investment option (without the application of a Market Value Adjustment). If a surviving spouse, as the named Beneficiary, elects to continue the Contract after the Covered Person's death, the surviving spouse may transfer any such Fixed Account portion back to the Fixed Account and begin a new Guarantee Period.

Method of Paying Death Benefit

The death benefit may be paid in a single cash payment or as an annuity (either fixed, variable or a combination), under one or more of our Annuity Options. We describe the Annuity Options in this Prospectus under "The Income Phase -- Annuity Provisions."

During the Accumulation Phase, you may elect the method of payment for the death benefit. These elections are made by sending us at our Annuity Mailing Address an election form, which we will provide. If no such election is in effect on the date of your death, the Beneficiary may elect either a single cash payment or an annuity. If the Beneficiary is your spouse, the Beneficiary may elect to continue the Contract. This election is made by sending us a letter of instruction. If we do not receive the Beneficiary's election within 60 days after we receive Due Proof of Death, the Beneficiary shall be deemed to have elected to defer receipt of payment under any death benefit option until a written election is submitted to the Company or a distribution is required by law.

If we pay the death benefit in the form of an Annuity Option, the Beneficiary becomes the Annuitant/Payee under the terms of that Annuity Option.

Non-Qualified Contracts

If your Contract is a Non-Qualified Contract, special distribution rules apply to the payment of the death benefit. The amount of the death benefit must be distributed either (1) as a lump sum within 5 years after your death, or (2) if in the form of an annuity, over a period not greater than the life or expected life of the "designated beneficiary" within the meaning of Section 72(s) of the Internal Revenue Code, with payments beginning no later than one year after your death.

The person you have named as Beneficiary under your Contract, if any, will be the "designated beneficiary." If the named Beneficiary is not living and no contingent beneficiary has been named, the surviving Participant, if any, or the estate of the deceased Participant automatically becomes the designated beneficiary.

If the designated beneficiary is your surviving spouse, your spouse may continue the Contract in his or her own name as Participant. To make this election, your spouse must give us written notification within 60 days after we receive Due Proof of Death. The special distribution rules will then apply on the death of your spouse. To understand what happens when your spouse continues the Contract, see "Spousal Continuance."

During the Income Phase, if the Annuitant dies, the remaining value of the Annuity Option in place must be distributed at least as rapidly as the method of distribution under that option.

If the Participant is not a natural person, these distribution rules apply upon the death or removal of any Annuitant.

Payments made in contravention of these special rules would adversely affect the treatment of the Contracts as annuity contracts under the Internal Revenue Code. Neither you nor the Beneficiary may exercise rights that would have that effect.

Selection and Change of Beneficiary

You select your Beneficiary in your Application. You may change your Beneficiary at any time by sending us written notice on our required form, unless you previously made an irrevocable Beneficiary designation. A new Beneficiary designation is not effective until we record the change.

Payment of Death Benefit

Payment of the death benefit in cash will be made within 7 days of the Death Benefit Date, except if we are permitted to defer payment in accordance with the Investment Company Act of 1940. If an Annuity Option is elected, the Annuity Commencement Date will be the first day of the second calendar month following the Death Benefit Date, and your Account will remain in effect until the Annuity Commencement Date.

THE INCOME PHASE - ANNUITY PROVISIONS

During the Income Phase, we make regular monthly annuity payments to the Annuitant.

The Income Phase of your Contract begins with the Annuity Commencement Date. On that date, we apply your Account Value, adjusted as described under the Annuity Option you have selected, and we make the first annuity payment.

Once the Income Phase begins, no lump sum settlement option or cash withdrawals are permitted, except pursuant to Annuity Option D, Monthly Payments for a Specified Period Certain, as described under "Annuity Options," and you cannot change the Annuity Option selected. (Also, a Beneficiary receiving payments after the Annuitant's death under Option B, Life Annuity with 60, 120, 180 or 240 Monthly Payments Certain, may elect to receive the discounted value of the remaining payments in a single sum, as discussed under "Annuity Options.") You may request a full withdrawal before the Annuity Commencement Date, which will be subject to all charges applicable on withdrawals. (See "Withdrawals and Market Value Adjustment.")

Selection of Annuitant(s)

You select the Annuitant in your Application. The Annuitant is the person who receives annuity payments during the Income Phase and on whose life these payments are based. In your Contract, the Annuity Option(s) refer to the Annuitant as the "Payee." If you name someone other than yourself as Annuitant and the Annuitant dies before the Income Phase, you become the Annuitant.

When an Annuity Option has been selected as the method of paying the death benefit, the Beneficiary is the Payee of the annuity payment.

Selection of the Annuity Commencement Date

You select the Annuity Commencement Date in your Application. The following restrictions apply to the date you may select:

l	The earliest possible Annuity Commencement Date is the first day of the second month following your Issue Date.
l	The latest possible Annuity Commencement Date is the later of (a) 10 years from the Issue Date or (b) the first day of the month following the Annuitant's 95th birthday ("maximum Annuity Commencement Date"). If there is a Co-Annuitant, the Annuity Commencement Date applies to the younger of the Annuitant and Co-Annuitant.
l	The Annuity Commencement Date must always be the first day of a calendar month.

You may change the Annuity Commencement Date by sending us written notice in a form acceptable to us, with the following additional limitations:

l	We must receive your notice, in good order, at least 30 days before the current Annuity Commencement Date.
l	The new Annuity Commencement Date must be at least 30 days after we receive the notice.

There may be other restrictions on your selection of the Annuity Commencement Date imposed by your retirement plan or applicable law. In most situations, current law requires that for a Qualified Contract, certain minimum distributions must commence no later than April 1 following the year the Annuitant reaches age 70½ (or, for Qualified Contracts other than IRAs, no later than April 1 following the year the Annuitant retires, if later than the year the Annuitant reaches age 70½).

Annuity Options

We offer the following Annuity Options for payments during the Income Phase. Each Annuity Option may be selected for a Variable Annuity, a Fixed Annuity, or a combination of both. We may also agree to other settlement options, at our discretion.

 Annuity Option A - Life Annuity

We provide monthly payments during the lifetime of the Annuitant. Annuity payments stop when the Annuitant dies. There is no provision for continuation of any payments to a Beneficiary.

Annuity Option B - Life Annuity With 60, 120, 180 Or 240 Monthly Payments Certain

We make monthly payments during the lifetime of the Annuitant. In addition, we guarantee that the Beneficiary will receive monthly payments for the remainder of the period certain, if the Annuitant dies during that period. The election of a longer period results in smaller monthly payments. If no Beneficiary is designated, we pay the discounted value of the remaining payments in one sum to the Annuitant's estate. The Beneficiary may also elect to receive the discounted value of the remaining payments in one sum. The discount rate for a Variable Annuity will be the assumed interest rate in effect; the discount rate for a Fixed Annuity will be based on the interest rate we used to determine the amount of each payment.

Annuity Option C - Joint and Survivor Annuity

We make monthly payments during the lifetime of the Annuitant and another person you designate and during the lifetime of the survivor of the two. We stop making payments when the survivor dies. There is no provision for continuance of any payments to a Beneficiary.

Annuity Option D - Monthly Payments for a Specified Period Certain

We make monthly payments for a specified period of time from 5 to 30 years, as you elect. The longer the period you elect, the smaller your monthly payments will be. If payments under this option are paid on a variable annuity basis, the Annuitant may elect to receive in one sum, at any time, some or all of the discounted value of the remaining payments, the discount rate for this purpose will be the assumed interest rate in effect. If the Annuitant dies during the period selected, the remaining income payments are made as described above for the payments to a Beneficiary under Annuity Option B. The election of this Annuity Option may result in the imposition of a penalty tax.

Selection of Annuity Option

You select one or more of the Annuity Options, which you may change during the Accumulation Phase, as long as we receive your selection or change in writing at least 30 days before the Annuity Commencement Date. If we have not received your written selection on the 30th day before the Annuity Commencement Date, you will receive Annuity Option B, for a life annuity with 120 monthly payments certain.

You may specify the proportion of your Adjusted Account Value you wish to provide a Variable Annuity or a Fixed Annuity. Under a Variable Annuity, the dollar amount of payments will vary, while under a Fixed Annuity, the dollar amount of payments will remain the same. If you do not specify a Variable Annuity or a Fixed Annuity, your Adjusted Account Value will be divided between Variable Annuities and Fixed Annuities in the same proportions as your Account Value was divided between the Variable and Fixed Accounts on the Annuity Commencement Date. You may allocate your Adjusted Account Value applied to a Variable Annuity among the Sub-Accounts, or we will use your existing allocations.

There may be additional limitations on the options you may elect under your particular retirement plan or applicable law.

Remember that the Annuity Option may not be changed once annuity payments begin.

Amount of Annuity Payments

Adjusted Account Value

The Adjusted Account Value is the amount we apply to provide a Variable Annuity and/or a Fixed Annuity. We calculate Adjusted Account Value by taking your Account Value on the Business Day just before the Annuity Commencement Date and making the following adjustments:

l	We deduct a proportional amount of the Account Fee, based on the fraction of the current Account Year that has elapsed.
l	If applicable, we apply the Market Value Adjustment to your Account Value in the Fixed Account, which may result in a deduction, an addition, or no change.
l	We deduct any applicable premium tax or similar tax if not previously deducted.

Variable Annuity Payments

On the Annuity Commencement Date, we will exchange your Account's Variable Annuity Units for Annuitization Units which have annual insurance charges of 1.70% of your average daily net assets, regardless of your age on the Issue Date. Variable Annuity payments may vary each month. We determine the dollar amount of the first payment using the portion of your Adjusted Account Value applied to a Variable Annuity and the Annuity Payment Rates in your Contract, which are based on an assumed interest rate of 3% per year, compounded annually. See "Annuity Payment Rates."

To calculate the remaining payments, we convert the amount of the first payment into Annuity Units for each Sub-Account; we determine the number of those Annuity Units by dividing the portion of the first payment attributable to the Sub-Account by the Annuity Unit Value of that Sub-Account for the Valuation Period ending just before the Annuity Commencement Date. This number of Annuity Units for each Sub-Account will remain constant (unless the Annuitant requests an exchange of Annuity Units). However, the dollar amount of the next Variable Annuity payment -- which is the sum of the number of Annuity Units for each Sub-Account times its Annuity Unit Value for the Valuation Period ending just before the date of the payment -- will increase, decrease, or remain the same, depending on the net investment return of the Sub-Accounts.

If the net investment return of the Sub-Accounts selected is the same as the assumed interest rate of 3%, compounded annually, the payments will remain level. If the net investment return exceeds the assumed interest rate, payments will increase and, conversely, if it is less than the assumed interest rate, payments will decrease.

Please refer to the Statement of Additional Information for more information about calculating Variable Annuity Units and Variable Annuity payments, including examples of these calculations.

Fixed Annuity Payments

Fixed Annuity payments are the same each month. We determine the dollar amount of each Fixed Annuity payment using the fixed portion of your Adjusted Account Value and the applicable Annuity Payment Rates. These will be either (1) the rates in your Contract, or (2) new rates we have published and are using on the Annuity Commencement Date, if they are more favorable. See "Annuity Payment Rates."

     Minimum Payments

If your Adjusted Account Value is less than $2,000, or the first annuity payment for any Annuity Option is less than $20, we will pay the Adjusted Account Value to the Annuitant in one payment.

Exchange of Variable Annuity Units

During the Income Phase, the Annuitant may exchange Annuity Units in one Sub-Account for Annuity Units in another Sub-Account, up to 12 times each Account Year. Any such exchanges may be subject to any restrictions or other policies that the Funds have adopted to protect the Funds from short-term trading or other practices that are potentially harmful to the Fund (the "Funds' Shareholder Trading Policies"). The applicability of the Funds' Shareholder Trading Policies is the same during the Income Phase as during the Accumulation Phase, and this is discussed in this prospectus under "Funds' Shareholder Trading Policies." For the reasons discussed there, you should review and comply with each Fund's Shareholder Trading Policies, which are disclosed in the Funds' current prospectuses.

To make an exchange, the Annuitant sends us, at our Annuity Mailing Address, a written request stating the number of Annuity Units in the Sub-Account he or she wishes to exchange and the new Sub-Account for which Annuity Units are requested. The number of new Annuity Units will be calculated so the dollar amount of an annuity payment on the date of the exchange would not be affected. To calculate this number, we use Annuity Unit values for the Valuation Period during which we receive the exchange request.

Before exchanging Annuity Units in one Sub-Account for those in another, the Annuitant should carefully review the Fund prospectuses for the investment objectives and risk disclosure of the Funds in which the Sub-Accounts invest.

During the Income Phase, we permit only exchanges among Sub-Accounts. No exchanges to or from a Fixed Annuity are permitted.

Account Fee

During the Income Phase, we deduct the annual Account Fee of $50 in equal amounts from each Variable Annuity payment. We do not deduct the annual Account Fee from Fixed Annuity payments.

Annuity Payment Rates

The Contracts contain Annuity Payment Rates for each Annuity Option described in this Prospectus. The rates show, for each $1,000 applied, the dollar amount of: (a) the first monthly Variable Annuity payment based on the assumed interest rate specified in the applicable Contract (3% per year, compounded annually); and (b) the monthly Fixed Annuity payment, when this payment is based on the minimum guaranteed interest rate specified in the Contract. We may change these rates under Group Contracts for Accounts established after the effective date of such change (see "Other Contract Provisions - Modification").

The Annuity Payment Rates may vary according to the Annuity Option elected and the adjusted age of the Annuitant. The Contracts also describe the method of determining the adjusted age of the Annuitant. The mortality table used in determining the Annuity Payment Rates for Annuity Options A, B and C is the Annuity 2000 Table.

Annuity Options as Method of Payment for Death Benefit

You or your Beneficiary may also select one or more Annuity Options to be used in the event of the Covered Person's death before the Income Phase, as described under the "Death Benefit" section of this Prospectus. In that case, your Beneficiary will be the Annuitant. The Annuity Commencement Date will be the first day of the second month beginning after the Death Benefit Date.

OTHER CONTRACT PROVISIONS

Exercise of Contract Rights

An Individual Contract belongs to the individual to whom the Contract is issued. A Group Contract belongs to the Owner. In the case of a Group Contract, the Owner may expressly reserve all Contract rights and privileges; otherwise, each Participant will be entitled to exercise such rights and privileges. In any case, such rights and privileges can be exercised without the consent of the Beneficiary (other than an irrevocably designated Beneficiary) or any other person. Such rights and privileges may be exercised only before the Annuity Commencement Date, except as the Contract otherwise provides.

The Annuitant becomes the Payee on and after the Annuity Commencement Date. The Beneficiary becomes the Payee on the death of the Covered Person prior to the Annuity Commencement Date, or on the death of the Annuitant after the Annuity Commencement Date. Such Payee may thereafter exercise such rights and privileges, if any, of ownership which continue.

Change of Ownership

Ownership of a Qualified Contract may not be transferred except to: (1) the Annuitant; (2) a trustee or successor trustee of a pension or profit sharing trust which is qualified under Section 401 of the Internal Revenue Code; (3) the employer of the Annuitant, provided that the Qualified Contract after transfer is maintained under the terms of a retirement plan qualified under Section 403(a) of the Internal Revenue Code for the benefit of the Annuitant; (4) the trustee or custodian of an individual retirement account plan qualified under Section 408 of the Internal Revenue Code for the benefit of the Participants under a Group Contract; or (5) as otherwise permitted from time to time by laws and regulations governing the retirement or deferred compensation plans for which a Qualified Contract may be issued. Subject to the foregoing, a Qualified Contract may not be sold, assigned, transferred, discounted or pledged as collateral for a loan or as security for the performance of an obligation or for any other purpose to any person other than the Company.

The Owner of a Non-Qualified Contract may change the ownership of the Contract prior to the Annuity Commencement Date; and each Participant, in like manner, may change the ownership interest in a Contract. A change of ownership will not be binding on us until we receive written notification. When we receive such notification, the change will be effective as of the date on which the request for change was signed by the Owner or Participant, as appropriate, but the change will be without prejudice to us on account of any payment we make or any action we take before receiving the change. If you change the Owner of a Non-Qualified Contract, you will become immediately liable for the payment of taxes on any gain realized under the Contract prior to the change of ownership, including possible liability for a 10% federal excise tax.

Change of ownership will not change the Covered Person named when the Contract is issued. This means that all death benefits and surrender charge waivers will continue to be based on the Covered Person and not the Owner. The amount payable on the death of the new Owner will be the Surrender Value.

Voting of Fund Shares

We will vote Fund shares held by the Sub-Accounts at meetings of shareholders of the Funds or in connection with similar solicitations, according to the voting instructions received from persons having the right to give voting instructions. During the Accumulation Phase, you will have the right to give voting instructions, except in the case of a Group Contract where the Owner has reserved this right. During the Income Phase, the Payee -(that is the Annuitant or Beneficiary entitled to receive benefits)- is the person having such voting rights. We will vote any shares attributable to us and Fund shares for which no timely voting instructions are received in the same proportion as the shares for which we receive instructions from Owners, Participants and Payees, as applicable.

Owners of Qualified Contracts issued on a group basis may be subject to other voting provisions of the particular plan and under the Investment Company Act of 1940. Employees who contribute to plans that are funded by the Contracts may be entitled to instruct the Owners as to how to instruct us to vote the Fund shares attributable to their contributions. Such plans may also provide the additional extent, if any, to which the Owners shall follow voting instructions of persons with rights under the plans. If no voting instructions are received from any such person with respect to a particular Participant Account, the Owner may instruct the Company as to how to vote the number of Fund shares for which instructions may be given.

Neither the Variable Account nor the Company is under any duty to provide information concerning the voting instruction rights to persons who may have such rights under plans, other than rights afforded under the Investment Company Act of 1940, or any duty to inquire as to the instructions received by Owners, Participants or others, or the authority of any such persons, to instruct the voting of Fund shares. Except as the Variable Account or the Company has actual knowledge to the contrary, the instructions given by Owners under Group Contracts and Payees will be valid as they affect the Variable Account, the Company and any others having voting instruction rights with respect to the Variable Account.

All Fund proxy material, together with an appropriate form to be used to give voting instructions, will be provided to each person having the right to give voting instructions at least 10 days prior to each meeting of the shareholders of the Fund. We will determine the number of Fund shares as to which each such person is entitled to give instructions as of the record date set by the Fund for such meeting, which is expected to be not more than 90 days prior to each such meeting. Prior to the Annuity Commencement Date, the number of Fund shares as to which voting instructions may be given to the Company is determined by dividing the value of all of the Variable Accumulation Units of the particular Sub-Account credited to the Participant Account by the net asset value of one Fund share as of the same date. On or after the Annuity Commencement Date, the number of Fund shares as to which such instructions may be given by a Payee is determined by dividing the reserve held by the Company in the Sub-Account with respect to the particular Payee by the net asset value of a Fund share as of the same date. After the Annuity Commencement Date, the number of Fund shares as to which a Payee is entitled to give voting instructions will generally decrease due to the decrease in the reserve.

Reports to Owners

We will send you, by regular U.S. mail, confirmation of all Purchase Payments (including any interest credited), withdrawals, (including any withdrawal charges, and federal taxes on withdrawals), minimum distributions, death benefit payments, and transfers (excluding dollar-cost averaging transfers). Such confirmations will be sent within two business days after the transaction occurs.

In addition, within 5 business days after each Account Quarter, we will send you a statement showing your current Account Value, death benefit value, and investment allocation by asset class. Each quarterly statement will detail transactions that occurred during the last Account Quarter including Purchase Payments, annuity payments, transfers (including dollar-cost averaging transfers), partial withdrawals, systematic withdrawals, minimum distributions, portfolio rebalancing, asset reallocations, interest credited on fixed accounts, and annual contract fees assessed.

We will also send you annual and semi-annual reports of the funds in which you are invested, including a list of investments held by each portfolio as of the current date of the report.

It is your obligation to review each such statement carefully and to report to us, at the address or telephone number provided on the statement, any errors or discrepancies in the information presented therein within 60 days of the date of such statement. Unless we receive notice of any such error or discrepancy from you within such period, we may not be responsible for correcting the error or discrepancy.

Substitution of Securities

Shares of any or all Funds may not always be available for investment under the Contract. We may add or delete Funds or other investment companies as variable investment options under the Contract. We may also substitute for the shares held in any Sub-Account shares of another Fund or shares of another registered open-end investment company or unit investment trust, provided that the substitution has been approved, if required, by the SEC. In the event of any substitution pursuant to this provision, we may make appropriate endorsement to the Contract to reflect the substitution.

Change in Operation of Variable Account

At our election and subject to any necessary vote by persons having the right to give instructions with respect to the voting of Fund shares held by the Sub-Accounts, the Variable Account may be operated as a management company under the Investment Company Act of 1940 or it may be deregistered under the Investment Company Act of 1940 in the event registration is no longer required. Deregistration of the Variable Account requires an order by the SEC. In the event of any change in the operation of the Variable Account pursuant to this provision, we may make appropriate endorsement to the Contract to reflect the change and take such other action as may be necessary and appropriate to effect the change.

Splitting Units

We reserve the right to split or combine the value of Variable Accumulation Units, Annuity Units or any of them. In effecting any such change of unit values, strict equity will be preserved and no change will have a material effect on the benefits or other provisions of the Contract.

Modification

Upon notice to the Participant, in the case of an Individual Contract, and the Owner and Participant(s), in the case of a Group Contract (or the Payee(s) during the Income Phase), we may modify the Contract if such modification: (1) is necessary to make the Contract or the Variable Account comply with any law or regulation issued by a governmental agency to which the Company or the Variable Account is subject; (2) is necessary to assure continued qualification of the Contract under the Internal Revenue Code or other federal or state laws relating to retirement annuities or annuity contracts; (3) is necessary to reflect a change in the operation of the Variable Account or the Sub-Account(s) (see "Change in Operation of Variable Account"); (4) provides additional Variable Account and/or fixed accumulation options; or (5) as may otherwise be in the best interests of Owners, Participants, or Payees, as applicable. In the event of any such modification, we may make appropriate endorsement in the Contract to reflect such modification.

In addition, upon notice to the Owner, we may modify a Group Contract to change the withdrawal charges, Account Fee, mortality and expense risk charges, administrative expense charges, the tables used in determining the amount of the first monthly variable annuity and fixed annuity payments and the formula used to calculate the Market Value Adjustment, provided that such modification applies only to Participant Accounts established after the effective date of such modification. In order to exercise our modification rights in these particular instances, we must notify the Owner of such modification in writing. The notice shall specify the effective date of such modification which must be at least 60 days following the date we mail notice of modification. All of the charges and the annuity tables which are provided in the Group Contract prior to any such modification will remain in effect permanently, unless improved by the Company, with respect to Participant Accounts established prior to the effective date of such modification.

Discontinuance of New Participants

We may limit or discontinue the acceptance of new Applications and the issuance of new Certificates under a Group Contract by giving 30 days prior written notice to the Owner. This will not affect rights or benefits with respect to any Participant Accounts established under such Group Contract prior to the effective date of such limitation or discontinuance.

Reservation of Rights

We reserve the right, to the extent permitted by law, to: (1) combine any 2 or more variable accounts or Sub-Accounts; (2) add or delete Funds, sub-series thereof or other investment companies and corresponding Sub-Accounts; (3) add or remove Guarantee Periods available at any time for election by a Participant; and (4) restrict or eliminate any of the voting rights of Participants (or Owners) or other persons who have voting rights as to the Variable Account. Where required by law, we will obtain approval of changes from Participants or any appropriate regulatory authority. In the event of any change pursuant to this provision, we may make appropriate endorsement to the Contract to reflect the change.

Right to Return

If you are not satisfied with your Contract, you may return it by mailing or delivering it to us at our Annuity Mailing Address, as shown on the cover of this Prospectus, within 10 days, or longer if allowed by your state, after it was delivered to you. State law may also allow you to return the Contract to your sales representative. When we receive the returned Contract, it will be cancelled and we will refund to you your Account Value. If applicable state law requires, we will return the full amount of any Purchase Payment(s) we received.

If you are establishing an Individual Retirement Annuity ("IRA"), the Internal Revenue Code requires that we give you a disclosure statement containing certain information about the Contract and applicable legal requirements. We must give you this statement on or before the date the IRA is established. If we give you the disclosure statement before the seventh day preceding the date the IRA is established, you will not have any right of revocation under the Code. If we give you the disclosure statement at a later date, then you may give us a notice of revocation at any time within 7 days after your Issue Date. Upon such revocation, we will refund your Purchase Payment(s). This right of revocation with respect to an IRA is in addition to the return privilege set forth in the preceding paragraph. We allow a Participant establishing an IRA a "ten day free-look," notwithstanding the provisions of the Internal Revenue Code.

TAX CONSIDERATIONS

This section provides general information on the federal income tax consequences of ownership of a Contract based upon our understanding of current federal tax laws. Actual federal tax consequences will vary depending on, among other things, the type of retirement plan under which your Contract is issued. Also, legislation altering the current tax treatment of annuity contracts could be enacted in the future and could apply retroactively to Contracts that were purchased before the date of enactment. We make no attempt to consider any applicable federal estate, federal gift, state or other tax laws. We also make no guarantee regarding the federal, state, or local tax status of any Contract or any transaction involving any Contract. You should consult a qualified tax professional for advice before purchasing a Contract or executing any other transaction (such as a rollover, distribution, withdrawal or payment) involving a Contract.

U.S. Federal Income Tax Considerations

The following discussion applies only to those Contracts issued in the United States. For a discussion of tax considerations affecting Contracts issued in Puerto Rico, see "Puerto Rico Tax Considerations."

     Deductibility of Purchase Payments

For federal income tax purposes, Purchase Payments made under Non-Qualified Contracts are not deductible. Under certain circumstances, Purchase Payments made under Qualified Contracts may be excludible or deductible from taxable income. Any such amounts will also be excluded from the "investment in the contract" for purposes of determining the taxable portion of any distributions from a Qualified Contract. As a general rule, regardless of whether you own a Qualified or a Non-Qualified Contract, the amount of your tax liability on earnings and distributions will depend upon the specific tax rules applicable to your Contract and your particular circumstances.

Pre-Distribution Taxation of Contracts

Generally, an increase in the value of a Contract will not give rise to a current income taxliability to the Owner of a Contract or to any payee under the Contract until a distribution is received from the Contract. However, certain assignments or pledges of a Contract or loans under a Contract will be treated as distributions to the Owner of the Contract and will accelerate the taxability of any increases in the value of a Contract.

Also, corporate (or other non-natural person) Owners of a Non-Qualified Contract will generally incur a current tax liability on Account Value increases. There are certain exceptions to this current taxation rule, including: (i) any Contract that is an "immediate annuity", which the Internal Revenue Code (the "Code") defines as a single premium contract with an annuity commencement date within one year of the date of purchase which provides for a series of substantially equal periodic payments (to be made not less frequently than annually) during the annuity period, and (ii) any Contract that the non-natural person holds as agent for a natural person (such as where a bank or other entity holds a Contract as trustee under a trust agreement).

You should note that a qualified retirement plan generally provides tax deferral regardless of whether the plan invests in an annuity contract. For that reason, no decision to purchase a Qualified Contract should be based on the assumption that the purchase of a Qualified Contract is necessary to obtain tax deferral under a qualified plan.

Distributions and Withdrawals from Non-Qualified Contracts

The Account Value of a Non-Qualified Contract will generally include both (i) an amount attributable to Purchase Payments, the return of which will not be taxable, and (ii) an amount attributable to investment earnings, the receipt of which will be taxable at ordinary income rates. The relative portions of any particular distribution that derive from nontaxable Purchase Payments and taxable investment earnings depend upon the nature and the timing of that distribution.

Any withdrawal of less than your entire Account Value under a Non-Qualified Contract before the Annuity Commencement Date, must be treated as a receipt of investment earnings. You may not treat such withdrawals as a non-taxable return of Purchase Payments unless you have first withdrawn the entire amount of the Account Value that is attributable to investment earnings. For purposes of determining whether an Owner has withdrawn the entire amount of the investment earnings under a Non-Qualified Contract, the Code provides that all Non-Qualified deferred annuity contracts issued by the same company to the same Owner during any one calendar year must be treated as one annuity contract. If you withdraw your entire Account Value under a Non-Qualified Contract before the Annuity Commencement Date (a "full surrender"), the taxable portion will equal the amount you receive less the "investment in the contract" (i.e., the total Purchase Payments (excluding amounts that were deductible by, or excluded from the gross income of, the Owner of a Contract), less any Purchase Payments that were amounts previously received which were not includable in income).

A Payee who receives annuity payments under a Non-Qualified Contract after the Annuity Commencement Date, will generally be able to treat a portion of each payment as a nontaxable return of Purchase Payments and to treat only the remainder of each such payment as taxable investment earnings. Until the Purchase Payments have been fully recovered in this manner, the nontaxable portion of each payment will be determined by the ratio of (i) the total amount of the Purchase Payments made under the Contract, to (ii) the Payee's expected return under the Contract. Once the Payee has received nontaxable payments in an amount equal to total Purchase Payments, no further exclusion is allowed and all future distributions will constitute fully taxable ordinary income. If payments are terminated upon the death of the Annuitant or other Payee before the Purchase Payments have been fully recovered, the unrecovered Purchase Payments may be deducted on the final return of the Annuitant or other Payee.

A penalty tax of 10% may also apply to taxable cash withdrawals including lump-sum payments from Non-Qualified Contracts. This penalty will generally not apply to distributions made after age 59½, to distributions pursuant to the death or disability of the Owner, to distributions that are a part of a series of substantially equal periodic payments made not less frequently than annually for life or life expectancy, or to distributions under an immediate annuity (as defined above).

Death benefits paid upon the death of a contract owner are not life insurance benefits and will generally be includable in the income of the recipient to the extent they represent investment earnings under the contract. For this purpose, the amount of the investment in the contract is not affected by the owner's or annuitant's death, i.e., the investment in the contract must still be determined by reference to the Owner's investment in the Contract. Special mandatory distribution rules also apply after the death of the Owner when the beneficiary is not the surviving spouse of the Owner.

If death benefits are distributed in a lump sum, the taxable amount of those benefits will be determined in the same manner as upon a full surrender of the contract. If death benefits are distributed under an annuity option, the taxable amount of those benefits will be determined in the same manner as annuity payments, as described above.

Any amounts held under a Non-Qualified Contract that are assigned or pledged as collateral for a loan will also be treated as if withdrawn from the Contract. In addition, upon the transfer of a Non-Qualified Contract by gift (other than to the Owner's spouse), the Owner must treat an amount equal to the Account Value minus the total amount paid for the Contract as income.

Distributions and Withdrawals from Qualified Contracts

In most cases, all of the distributions you receive from a Qualified Contract will constitute fully taxable ordinary income. Also, a 10% penalty tax will apply to distributions prior to age 59½, except in certain circumstances.

If you receive a distribution for a Qualified Contract used in connection with a qualified pension plan, from a tax-sheltered annuity, a governmental Code Section 457 plan or an individual retirement annuity "IRA" and roll over some or all that distribution to another eligible plan, following the rules set out in the Code and IRS regulations, the portion of such distribution that is rolled over will not be includible in your income. An eligible rollover distribution from a qualified plan, tax-sheltered annuity or governmental Section 457 plan will be subject to 20% mandatory withholding as described below. Because the amount of the cash paid to you as an eligible rollover distribution will be reduced by this withholding, you will not be able to roll over the entire account balance under your Contract, unless you use other funds equal to the tax withholding to complete the rollover. Rollovers of IRA distributions are not subject to the 20% mandatory withholding requirement.

An eligible rollover distribution from a qualified plan, governmental Section 457 plan or tax-sheltered annuity is any distribution of all or any portion of the balance to the credit of an employee, except that the term does not include:

l	a distribution which is one of a series of substantially equal periodic payments made annually under a lifetime annuity or for a specified period of ten years or more;
l	any required minimum distribution; or
l	any hardship distribution.

Only you or your surviving spouse Beneficiary may elect to roll over a distribution to an eligible retirement plan. However, a non-surviving-spouse Beneficiary may able to directly transfer a distribution to a so-called inherited IRA that will be subject to the IRS distribution rules applicable to beneficiaries.

Withholding

In the case of an eligible rollover distribution (as defined above) from a Qualified Contract (other than from an IRA), we (or the plan administrator) must withhold and remit to the U.S. Government 20% of the distribution, unless the Participant or Payee elects to make a direct rollover of the distribution to another qualified retirement plan that is eligible to receive the rollover; however, only you or your surviving spouse Beneficiary may elect a direct rollover. In the case of a distribution from (i) a Non-Qualified Contract, (ii) an IRA, or (iii) a Qualified Contract where the distribution is not an eligible rollover distribution, we will withhold and remit to the U.S. Government a part of the taxable portion of each distribution unless, prior to the distribution, the Participant or Payee provides us his or her taxpayer identification number and instructs us (in the manner prescribed) not to withhold. The Participant or Payee may credit against his or her federal income tax liability for the year of distribution any amounts that we (or the plan administrator) withhold.

Investment Diversification and Control

The Treasury Department has issued regulations that prescribe investment diversification requirements for the mutual fund series underlying non-qualified variable contracts. All Non-Qualified Contracts must comply with these regulations to qualify as annuities for federal income tax purposes. The owner of a Non-Qualified Contract that does not meet these guidelines will be subject to current taxation on annual increases in value of the Contract. We believe that each Fund available as an investment option under the Contract complies with these regulations.

The IRS has stated that satisfaction of the diversification requirements described above by itself does not prevent a contract owner from being treated as the owner of separate account assets under an "owner control" test. If a contract owner is treated as the owner of separate account assets for tax purposes, the contract owner would be subject to taxation on the income and gains from the separate account assets. In published revenue rulings through 1982 and then again in 2003, the IRS has stated that a variable contract owner will be considered the owner of separate account assets if the owner possesses incidents of ownership in those assets, such as the ability to exercise control over the investment of the assets. In Revenue Ruling 2003-91, the IRS considered certain variable annuity and variable life insurance contracts and concluded that the owners of the variable contracts would not be considered the owners of the contracts' underlying assets for federal income tax purposes.

Revenue Ruling 2003-91 states that the determination of whether the owner of a variable contract possesses sufficient incidents of ownership over the assets underlying the variable contract so as to be deemed the owner of those assets for federal income tax purposes will depend on all the facts and circumstances. We do not believe that the differences between the Contract and the contracts described in Revenue Ruling 2003-91 should prevent the holding in Revenue Ruling 2003-91 from applying. Nevertheless, you should consult with a qualified tax professional on the potential impact of the investor control rules of the IRS as they relate to the investment decisions and activities you may undertake with respect to the Contract. In addition, the IRS and/or the Treasury Department may issue new rulings, interpretations or regulations on this subject in the future. Accordingly, we therefore reserve the right to modify the Contracts as necessary to attempt to prevent you from being considered the owner, for tax purposes, of the underlying assets. We also reserve the right to notify you if we determine that it is no longer practicable to maintain the Contract in a manner that was designed to prevent you from being considered the owner of the assets of the Separate Account. You bear the risk that you may be treated as the owner of Separate Account assets and taxed accordingly.

Tax Treatment of the Company and the Variable Account

As a life insurance company under the Code, we will record and report operations of the Variable Account separately from other operations. The Variable Account will not, however, constitute a regulated investment company or any other type of taxable entity distinct from our other operations. Under present law, we will not incur tax on the income of the Variable Account (consisting primarily of interest, dividends, and net capital gains) if we use this income to increase reserves under Contracts participating in the Variable Account.

Qualified Retirement Plans

"Qualified Contracts" are Contracts used with plans that receive tax-deferral treatment pursuant to specific provisions of the Code. Annuity contracts also receive tax-deferral treatment. It is not necessary that you purchase an annuity contract to receive the tax-deferral treatment available through a Qualified Contract. If you purchase this annuity Contract as a Qualified Contract, you do not receive additional tax-deferral. Therefore, if you purchase this annuity Contract as a Qualified Contract, you should do so for reasons other than obtaining tax deferral.

You may use Qualified Contracts with several types of qualified retirement plans. Because tax consequences will vary with the type of qualified retirement plan and the plan's specific terms and conditions, we provide below only brief, general descriptions of the consequences that follow from using Qualified Contracts in connection with various types of qualified retirement plans. We stress that the rights of any person to any benefits under these plans may be subject to the terms and conditions of the plans themselves, regardless of the terms of the Qualified Contracts that you are using. These terms and conditions may include restrictions on, among other things, ownership, transferability, assignability, contributions and distributions.

Pension and Profit-Sharing Plans

Sections 401(a), 401(k) and 403(a) of the Code permit business employers and certain associations to establish various types of retirement plans for employees. The Code requirements are similar for qualified retirement plans of corporations and those of self-employed individuals. Self-employed persons, as a general rule, may therefore use Qualified Contracts as a funding vehicle for their retirement plans.

Tax-Sheltered Annuities

Section 403(b) of the Code permits public school employees and employees of certain types of charitable, educational and scientific organizations specified in Section 501(c)(3) of the Code to purchase annuity contracts and, subject to certain limitations, exclude the amount of purchase payments from gross income for tax purposes. The Code imposes restrictions on cash withdrawals from Section 403(b) annuities.

If the Contracts are to receive tax-deferred treatment, cash withdrawals of amounts attributable to salary reduction contributions (other than withdrawals of accumulation account value as of December 31, 1988) may be made only when the Participant attains age 59½, has a severance from employment with the employer, dies or becomes disabled (within the meaning of Section 72(m)(7) of the Code). These restrictions apply to (i) any post-1988 salary reduction contributions, (ii) any growth or interest on post-1988 salary reduction contributions, (iii) any growth or interest on pre-1989 salary reduction contributions that occurs on or after January 1, 1989, and (iv) any pre-1989 salary reduction contributions since we do not maintain records that separately account for such contributions. It is permissible, however, to withdraw post-1988 salary reduction contributions (but not the earnings attributable to such contributions) in cases of financial hardship. While the Internal Revenue Service has not issued specific rules defining financial hardship, we expect that to qualify for a hardship distribution, the Participant must have an immediate and heavy bona fide financial need and lack other resources reasonably available to satisfy the need. Hardship withdrawals (as well as certain other premature withdrawals) will be subject to a 10% tax penalty, in addition to any withdrawal charge applicable under the Contracts. Under certain circumstances the 10% tax penalty will not apply if the withdrawal is for medical expenses.

Section 403(b) annuities, like IRAs, are subject to required minimum distributions under the Code. Section 403(b) annuities are unique, however, in that any account balance accruing before January 1, 1987 (the "pre-1987 balance") needs to comply with only the minimum distribution incidental benefit (MDIB) rule and not also with the minimum distribution rules set forth in Section 401(a)(9) of the Code. This special treatment for any pre-1987 balance is, however, conditioned upon the issuer identifying the pre-1987 balance and maintaining accurate records of changes to the balance. Since we do not maintain such records, your pre-1987 balance, if any, will not be eligible for special distribution treatment.

Under the terms of a particular Section 403(b) plan, the Participant may be entitled to transfer all or a portion of the Account Value to one or more alternative funding options. Participants should consult the documents governing their plan and the person who administers the plan for information as to such investment alternatives.

Individual Retirement Arrangements

Sections 219 and 408 of the Code permit eligible individuals to contribute to a so-called "traditional" individual retirement program, including Individual Retirement Accounts and Annuities, Simplified Employee Pension Plans, and SIMPLE Retirement Accounts. Such IRAs are subject to limitations on contribution levels, the persons who may be eligible, and on the time when distributions may commence. In addition, certain distributions from some other types of retirement plans may be placed in an IRA on a tax-deferred basis. The Internal Revenue Service imposes special information requirements with respect to IRAs and we will provide purchasers of the Contracts as Individual Retirement Annuities with any necessary information. You will have the right to revoke a Contract issued as an Individual Retirement Annuity under certain circumstances, as described in the section of this Prospectus entitled "Right to Return." If your Contract is issued in connection with an Individual Retirement Account, we have no information about the Account and you should contact the Account's trustee or custodian.

Roth Individual Retirement Arrangements

Section 408A of the Code permits an individual to contribute to an individual retirement program called a Roth IRA. Unlike contributions to a traditional IRA under Section 408 of the Code, contributions to a Roth IRA are not tax-deductible. Provided certain conditions are satisfied, distributions are generally tax-free. Like traditional IRAs, Roth IRAs are subject to limitations on contribution amounts and the timing of distributions. If you convert a traditional Individual Retirement Annuity Contract into a Roth IRA Contract or your Individual Retirement Account that holds a Contract is converted to a Roth Individual Retirement Account, the fair market value of the Contract is included in taxable income. Under IRS regulations and Revenue Procedure 2006-13, fair market value may exceed the Contract's account balance. Thus, you should consult with a qualified tax professional prior to any conversion.

The Internal Revenue Service imposes special information requirements with respect to Roth IRAs and we will provide the necessary information for Contracts issued as Roth Individual Retirement Annuities. If your Contract is issued in connection with a Roth Individual Retirement Account, we have no information about the Account and you should contact the Account's trustee or custodian.

Impact of Optional Death Benefit Riders

Qualified Contracts. If your Contract is a traditional IRA annuity or a 403(b) TSA annuity, it is subject to certain required minimum distribution (RMD) requirements imposed by the Internal Revenue Code and IRS regulations. Under the RMD rules, distributions must begin no later than April 1 of the calendar year following the year in which you attain age 70½ or, for non-IRAs, the date of retirement instead of age 70½ if it is later. The RMD amount for a distribution calendar year is generally calculated by dividing the Contract's value as of 12/31 of the prior calendar year by the applicable distribution factor set forth in a Uniform Lifetime Table in the IRS regulations. For Contracts issued in connection with traditional Individual Retirement Accounts, you should contact the Account's trustee or custodian about RMD requirements since we only provide the trustee or custodian with the Contract's value (including any actuarial present value of additional benefits discussed below) so that it can be used in the Account's RMD calculations.

Effective with the 2006 distribution calendar year, the actuarial present value as of 12/31 of any additional benefits that are provided under your Contract (such as optional death benefits) will be added to the Contract's Account Value as of 12/31 in order to calculate the RMD amount. There are two exceptions to the requirement that the actuarial present value of an additional benefit must be added to the Account Value for RMD calculation purposes. First, if the only additional benefit provided under a Contract is a return of premium death benefit (i.e., a benefit under which the final payment does not exceed the amount of purchase payments made less prior distributions), then the additional benefit is disregarded and the RMD calculation uses only the 12/31 Account Value. Second, if (1) the Contract provides only for additional benefits that are each reduced on a proportional basis in the event of distributions, with or without a return of premium death benefit that is not reduced in amount proportionately in the event of distributions and (2) the actuarial present value of all the Contract's additional benefits is no more than 20% of the 12/31 Account Value, then the additional benefits are disregarded and the RMD calculation uses only the 12/31 Account Value. When we notify you of the RMD amount for a distribution calendar year, we will inform you if the calculation included the actuarial present value of additional benefits. Because of the above requirements, your initial or renewal election of an optional rider could cause your RMD amount to be higher than it would be without such an election. Prior to electing to participate in (or, if applicable, prior to renewing your participation in) any optional rider, you should consult with a qualified tax professional as to the possible effect of that rider on your yearly RMD amounts.

You may take an RMD amount calculated for a particular IRA annuity from that annuity or from another IRA account or IRA annuity of yours. Similarly, you may take an RMD amount calculated for a particular TSA annuity from that annuity or from another TSA account or TSA annuity of yours. If your Qualified Contract is an asset of a qualified retirement plan, the qualified plan is subject to the RMD requirements and the Contract, as an asset of the qualified plan may need to be used as a source of funds for the RMDs.

If your Contract is a traditional Individual Retirement Annuity or is held by your traditional Individual Retirement Account and you might convert in the future to a Roth IRA (see "Roth Individual Retirement Arrangements"), then your initial or renewal election of an optional rider could cause your taxable income upon conversion to be higher than it would be without such an election. Prior to electing to participate in (or, if applicable, prior to renewing your participation in) any optional death benefit, you should consult with a qualified tax professional as to the possible effect of that benefit on conversion taxable income.

Non-Qualified Contracts. We are required to make a determination as to the taxability of any withdrawal you make in order to be able to annually report to the IRS and you information about your withdrawal. Under the Internal Revenue Code, any withdrawal from a Non-Qualified Contract is taxable to the extent the annuity's cash value (determined without regard to surrender charges) exceeds the investment in the contract. There is no definition of "cash value" in the Code and, for tax reporting purposes, we are currently treating it as the Account Value of the Contract. However, there can be no assurance that the IRS will agree that this is the correct cash value. The IRS could, for example, determine that the cash value is the Account Value plus an additional amount representing the value of an optional rider. If this were to occur, election of an optional rider could cause any withdrawal to have a higher proportion of the withdrawal derived from taxable investment earnings. Prior to electing to participate in an optional rider, you should consult with a qualified tax professional as to the meaning of "cash value."

Puerto Rico Tax Considerations

The Contract offered by this Prospectus is considered a non-qualified annuity contract under Section 1022 of the Puerto Rico Internal Revenue Code of 1994, as amended (the "1994 Code"). Under the current provisions of the 1994 Code, no income tax is payable on increases in value of accumulation shares of annuity units credited to a variable annuity contract until payments are made to the annuitant or other payee under such contract.

When payments are made from your Contract in the form of an annuity, the annuitant or other payee will be required to include as gross income the lesser of the amount received during the taxable year or the portion of the amount received equal to 3% of the aggregate premiums or other consideration paid for the annuity. The amount, if any, in excess of the included amount is excluded from gross income as a return of premium. After an amount equal to the aggregate premiums or other consideration paid for the annuity has been excluded from gross income, all of the subsequent annuity payments are considered to be taxable income.

When a payment under a Contract is made in a lump sum, the amount of the payment would be included in the gross income of the Annuitant or other Payee to the extent it exceeds the Annuitant's aggregate premiums or other consideration paid.

The provisions of the 1994 Code with respect to qualified retirement plans described in this Prospectus vary significantly from those under the Internal Revenue Code. We currently offer the Contract in Puerto Rico in connection with Individual Retirement Arrangements that qualify under the U.S. Internal Revenue Code but do not qualify under the Puerto Rico 1994 Code. See the applicable text of this Prospectus under the heading "Federal Tax Status" dealing with such arrangements and their RMD requirements. We may make Contracts available for use with other retirement plans that similarly qualify under the U.S. Internal Revenue Code but do not qualify under the Puerto Rico 1994 Code.

As a result of IRS Revenue Ruling 2004-75, as amplified by Revenue Ruling 2004-97, we will treat Contract distributions and withdrawals occurring on or after January 1, 2005 as U.S. - source income that is subject to U.S. income tax withholding and reporting. Under "TAX CONSIDERATIONS," see "Pre-Distribution Taxation of Contracts," "Distributions and Withdrawals from Non-Qualified Contracts," "Withholding" and "Non-Qualified Contracts." You should consult a qualified tax professional for advice regarding the effect of Revenue Ruling 2004-75 on your U.S. and Puerto Rico income tax situation.

For information regarding the income tax consequences of owning a Contract, you should consult a qualified tax professional.

ADMINISTRATION OF THE CONTRACT

We perform certain administrative functions relating to the Contract, Participant Accounts, and the Variable Account. These functions include, but are not limited to, maintaining the books and records of the Variable Account and the Sub-Accounts; maintaining records of the name, address, taxpayer identification number, Contract number, Participant Account number and type, the status of each Participant Account and other pertinent information necessary to the administration and operation of the Contract; processing Applications, Purchase Payments, transfers and full and partial withdrawals; issuing Contracts and Certificates; administering annuity payments; furnishing accounting and valuation services; reconciling and depositing cash receipts; providing confirmations; providing toll-free customer service lines; and furnishing telephonic transfer services.

DISTRIBUTION OF THE CONTRACT

We offer the Contract on a continuous basis. Contracts are sold by licensed insurance agents ("the Selling Agents") in those states where the Contract may be lawfully sold. Such Selling Agents will be registered representatives of affiliated and unaffiliated broker-dealer firms ("the Selling Broker-Dealers") registered under the Securities Exchange Act of 1934 who are members of the National Association of Securities Dealers, Inc. and who have entered into selling agreements with the Company and the general distributor, Clarendon Insurance Agency, Inc. ("Clarendon"), One Sun Life Executive Park, Wellesley Hills, Massachusetts 02481. Clarendon is a wholly-owned subsidiary of the Company, is registered with the SEC under the Securities Exchange Act of 1934 as a broker-dealer and is a member of the National Association of Securities Dealers, Inc.

The Company (or its affiliates, for purposes of this section only, collectively, "the Company"), pays the Selling Broker-Dealers compensation for the promotion and sale of the Contract. The Selling Agents who solicit sales of the Contract typically receive a portion of the compensation paid by the Company to the Selling Broker-Dealers in the form of commissions or other compensation, depending on the agreement between the Selling Broker-Dealer and their Selling Agent. This compensation is not paid directly by the Contract Owner or the separate account. The Company intends to recoup this compensation through fees and charges imposed under the Contract, and from profits on payments received by the Company for providing administrative, marketing, and other support and services to the Funds.

The amount and timing of commissions the Company may pay to Selling Broker-Dealers may vary depending on the selling agreement but is not expected to be more than 2.00% of Purchase Payments, and 1.00% annually of the Participant's Account Value. The Company may pay or allow other promotional incentives or payments in the form of cash or other compensation to the extent permitted by NASD rules and other applicable laws and regulations.

The Company also pays compensation to wholesaling broker-dealers or other firms or intermediaries, including payments to affiliates of the Company, in return for wholesaling services such as providing marketing and sales support, product training and administrative services to the Selling Agents of the Selling Broker-Dealers. These allowances may be based on a percentage of Purchase Payments and/or a percentage of Contract Value and/or may be a fixed dollar amount..

In addition to the compensation described above, the Company may make additional cash payments, in certain circumstances referred to as "override" compensations, or reimbursements to Selling Broker-Dealers in recognition of their marketing and distribution, transaction processing and/or administrative services support. These payments are not offered to all Selling Broker-Dealers, and the terms of any particular agreement governing the payments may vary among Selling Broker-Dealers depending on, among other things, the level and type of marketing and distribution support provided. Marketing and distribution support services may include, among other services, placement of the Company's products on the Selling Broker-Dealers' preferred or recommended list, access to the Selling Broker-Dealers' registered representatives for purposes of promoting sales of the Company's products, assistance in training and education of the Selling Agents, and opportunities for the Company to participate in sales conferences and educational seminars. The payments or reimbursements may be calculated as a percentage of the particular Selling Broker-Dealer's actual or expected aggregate sales of our variable contracts (including the Contract) or assets held within those contracts (in most cases not to exceed 0.25% of aggregate sales and 0.10% of assets attributable to the Selling-Broker-Dealer, and/or may be a fixed dollar amount. Broker-dealers receiving these additional payments may pass on some or all of the payments to the Selling Agent.

In addition to selling our variable contracts (including the Contract), some Selling Broker-Dealers or their affiliates may have other business relationships with the Company. Those other business relationships may include, for example, reinsurance agreements pursuant to which an affiliate of the Selling Broker-Dealer provides reinsurance to the Company relative to some or all of the Policies or other variable policies issued by the Company or its affiliates. The potential profits for a Selling Broker-Dealer or its affiliate associated with such reinsurance arrangements could indirectly provide incentives to the Selling Broker-Dealer and its Selling Agents to recommend products for which they provide reinsurance over similar products which do not result in potential reinsurance profits to the Selling Broker-Dealer or its affiliate. The operation of an individual contract is not impacted by whether the policy is subject to a reinsurance arrangement between the Company and an affiliate of the Selling Broker-Dealer.

You should ask your Selling Agent for further information about what commissions or other compensation he or she, or the Selling Broker-Dealer for which he or she works, may receive in connection with your purchase of a Contract.

Commissions may be waived or reduced in connection with certain transactions described in this Prospectus under the heading "Waivers; Reduced Charges; Special Guaranteed Interest Rates." During 2004, 2005, and 2006, approximately $781,944, $845,405, and $620,746, respectively, in commissions were paid to but not retained by Clarendon in connection with the distribution of the Contracts.

AVAILABLE INFORMATION

The Company and the Variable Account have filed with the SEC registration statements under the Securities Act of 1933 relating to the Contracts. This Prospectus does not contain all of the information contained in the registration statements and their exhibits. For further information regarding the Variable Account, the Company and the Contracts, please refer to the registration statements and their exhibits.

In addition, the Company is subject to the informational requirements of the Securities Exchange Act of 1934. We file reports and other information with the SEC to meet these requirements.

You can inspect and copy this information and our registration statements at the SEC's public reference facilities at the following locations: Washington, D.C. -- 450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549; Chicago, Illinois -- 500 West Madison Street, Chicago, IL 60661. The Washington, D.C. office will also provide copies by mail for a fee. You may also find these materials on the SEC's website (http:// www.sec.gov).

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

The Company's Annual Report on Form 10-K for the year ended December 31, 2006 filed with the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") is incorporated herein by reference. All documents or reports we file pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, after the date of this prospectus and prior to the termination of the offering, shall be deemed incorporated by reference into the prospectus.

The Company will furnish, without charge, to each person to whom a copy of this Prospectus is delivered, upon the written or oral request of such person, a copy of the documents referred to above which have been incorporated by reference into this Prospectus, other than exhibits to such documents (unless such exhibits are specifically incorporated by reference in this Prospectus). Requests for such documents should be directed to the Secretary, Sun Life Assurance Company of Canada (U.S.), One Sun Life Executive Park, Wellesley Hills, Massachusetts 02481, telephone (800) 225-3950.

STATE REGULATION

The Company is subject to the laws of the State of Delaware governing life insurance companies and to regulation by the Commissioner of Insurance of Delaware. An annual statement is filed with the Commissioner of Insurance on or before March lst in each year relating to the operations of the Company for the preceding year and its financial condition on December 31st of such year. Its books and records are subject to review or examination by the Commissioner or his agents at any time and a full examination of its operations is conducted at periodic intervals.

The Company is also subject to the insurance laws and regulations of the other states and jurisdictions in which it is licensed to operate. The laws of the various jurisdictions establish supervisory agencies with broad administrative powers with respect to licensing to transact business, overseeing trade practices, licensing agents, approving policy forms, establishing reserve requirements, fixing maximum interest rates on life insurance policy loans and minimum rates for accumulation of surrender values, prescribing the form and content of required financial statements and regulating the type and amounts of investments permitted. Each insurance company is required to file detailed annual reports with supervisory agencies in each of the jurisdictions in which it does business and its operations and accounts are subject to examination by such agencies at regular intervals.

In addition, many states regulate affiliated groups of insurers, such as the Company, Sun Life (Canada) and its affiliates, under insurance holding company legislation. Under such laws, inter-company transfers of assets and dividend payments from insurance subsidiaries may be subject to prior notice or approval, depending on the size of such transfers and payments in relation to the financial positions of the companies involved. Under insurance guaranty fund laws in most states, insurers doing business therein can be assessed (up to prescribed limits) for policyholder losses incurred by insolvent companies. The amount of any future assessments of the Company under these laws cannot be reasonably estimated. However, most of these laws do provide that an assessment may be excused or deferred if it would threaten an insurer's own financial strength and many permit the deduction of all or a portion of any such assessment from any future premium or similar taxes payable.

Although the federal government generally does not directly regulate the business of insurance, federal initiatives often have an impact on the business in a variety of ways. Current and proposed federal measures which may significantly affect the insurance business include employee benefit regulation, removal of barriers preventing banks from engaging in the insurance business, tax law changes affecting the taxation of insurance companies, the tax treatment of insurance products and its impact on the relative desirability of various personal investment vehicles.

LEGAL PROCEEDINGS

There are no pending legal proceedings affecting the Variable Account. We and our subsidiaries are engaged in various kinds of routine litigation which, in management's judgment, is not of material importance to our respective total assets or material with respect to the Variable Account.

FINANCIAL STATEMENTS

The financial statements of the Company which are included in the SAI should be considered only as bearing on the ability of the Company to meet its obligations with respect to amounts allocated to the Fixed Account and with respect to the death benefit and the Company's assumption of the mortality and expense risks. They should not be considered as bearing on the investment performance of the Fund shares held in the Sub-Accounts of the Variable Account.

The financial statements of the Variable Account for the year ended December 31, 2006 are also included in the SAI.

TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION

Sun Life Assurance Company of Canada (U.S.)

Advertising and Sales Literature

Tax - Deferred Accumulation

Calculations

  Example of Variable Accumulation Unit Value Calculation

  Example of Variable Annuity Unit Calculation

  Example of Variable Annuity Payment Calculation

Distribution of the Contracts

Designation and Change of Beneficiary

Custodian

Independent Registered Public Accounting Firm

Financial Statements

This Prospectus sets forth information about the Contract and the Variable Account that a prospective purchaser should know before investing. Additional information about the Contract and the Variable Account has been filed with the Securities and Exchange Commission in a Statement of Additional Information dated May 1, 2007 which is incorporated herein by reference. The Statement of Additional Information is available upon request and without charge from Sun Life Assurance Company of Canada (U.S.). To receive a copy, return this request form to the address shown below or telephone (800) 752-7215.

To:	Sun Life Assurance Company of Canada (U.S.)
	P.O. Box 9133
	Wellesley Hills, Massachusetts 02481
	Please send me a Statement of Additional Information for
	Sun Life Financial Masters Access Variable and Fixed Annuity
	Sun Life of Canada (U.S.) Variable Account F.

Name       

Address     

City            State     Zip  

Telephone  

APPENDIX A -

GLOSSARY

The following terms as used in this Prospectus have the indicated meanings:

ACCOUNT or PARTICIPANT ACCOUNT: An account established for each Participant to which Net Purchase Payments are credited.

ACCOUNT VALUE: The Variable Accumulation Value, if any, plus the Fixed Accumulation Value, if any, of your Account for any Valuation Period.

ACCOUNT YEAR and ACCOUNT ANNIVERSARY: Your first Account Year is the period 365 days (366, if a leap year) from the date on which we issued your Contract. Your Account Anniversary is the last day of an Account Year. Each Account Year after the first is the 365-day period that begins on your Account Anniversary. For example, if the Issue Date is on March 12, the first Account Year is determined from the Issue Date and ends on March 12 of the following year. Your Account Anniversary is March 12 and all Account Years after the first are measured from March 12. (If the Anniversary Date falls on a non-Business Day, the previous Business Day will be used.)

ACCUMULATION PHASE: The period before the Annuity Commencement Date and during the lifetime of the Annuitant (and while the Owner is still alive) during which you make Purchase Payments under the Contract. This is called the "Accumulation Period" in the Contract.

ADJUSTED PURCHASE PAYMENTS: Purchase Payments adjusted for partial withdrawals as described in "Calculating the Death Benefit."

*ANNUITANT: The person or persons to whom the first annuity payment is made. If either Annuitant dies prior to the Annuity Commencement Date, the surviving Annuitant will become the sole Annuitant.

ANNUITY COMMENCEMENT DATE: The date on which the first annuity payment under each Contract is to be made.

ANNUITY OPTION: The method you choose for making annuity payments.

ANNUITY UNIT: A unit of measure used in the calculation of the amount of the second and each subsequent Variable Annuity payment from the Variable Account.

APPLICATION: The document signed by you or other evidence acceptable to us that serves as your application for participation under a Group Contract or purchase of an Individual Contract.

*BENEFICIARY:The person or entity having the right to receive the death benefit and, for a Certificate issued under a Non-Qualified Contract, who is the "designated beneficiary" for purposes of Section 72(s) of the Code in the event of the Participant's death. Notwithstanding the foregoing, if there is more than one Participant of a Non-Qualified Contract, the surviving Participant will be deemed the beneficiary under the preceding sentence and any other designated beneficiary will be treated as a contingent beneficiary.

BUSINESS DAY: Any day the New York Stock Exchange is open for trading. Also, any day on which we make a determination of the value of a Variable Accumulation Unit.

CERTIFICATE: The document for each Participant which evidences the coverage of the Participant under a Group Contract.

COMPANY ("WE, " "US," "SUN LIFE (U.S.)"): Sun Life Assurance Company of Canada (U.S.).

CONTRACT: Any Individual Contract, Group Contract, or Certificate issued under a Group Contract.

COVERED PERSON: The person(s) identified as such in the Contract whose death will trigger the death benefit provisions of the Contract. The Participant/Owner is the Covered Person unless there is a non-natural Owner, such as a trust, in which case the Annuitant is the Covered Person.

DEATH BENEFIT DATE: If you have elected a death benefit payment option before the Covered Person's death that remains in effect, the date on which we receive Due Proof of Death. If your Beneficiary elects the death benefit payment option, the later of (a) the date on which we receive the Beneficiary's election and (b) the date on which we receive Due Proof of Death. If we do not receive the Beneficiary's election within 60 days after we receive Due Proof of Death, the Beneficiary shall be deemed to have elected to defer receipt of payment under any death benefit option until such time as a written election is received by the Company or a distribution is required by law.

DUE PROOF OF DEATH: An original certified copy of an official death certificate, an original certified copy of a decree of a court of competent jurisdiction as to the finding of death, or any other information or documentation required by the Company that is necessary to make payment (e.g. taxpayer identification numbers, beneficiary names and addresses, state inheritance tax waivers, etc.).

FIXED ACCOUNT: The general account of the Company, consisting of all assets of the Company other than those allocated to a separate account of the Company.

FIXED ACCOUNT VALUE: The value of that portion of your Account allocated to the Fixed Account.

FIXED ANNUITY: An annuity with payments which do not vary as to dollar amount.

FUND: A registered management investment company, or series thereof, in which assets of a Sub-Account may be invested.

GROUP CONTRACT: A Contract issued by the Company on a group basis.

GUARANTEE AMOUNT: Each separate allocation of Account Value to a particular Guarantee Period (including interest earned thereon).

GUARANTEE PERIOD: The period for which a Guaranteed Interest Rate is credited.

GUARANTEED INTEREST RATE: The rate of interest we credit on a compound annual basis during any Guarantee Period.

INCOME PHASE: The period on and after the Annuity Commencement Date and during the lifetime of the Annuitant during which we make annuity payments under the Contract.

INDIVIDUAL CONTRACT: A Contract issued by the Company on an individual basis.

ISSUE DATE: The date the Contract becomes effective which is the date we apply your initial Net Purchase Payment to your Account and issue your Contract. This is called the "Date of Coverage" in the Contract.

NET INVESTMENT FACTOR: An index applied to measure the investment performance of a Sub-Account from one Valuation Period to the next.

NET PURCHASE PAYMENT (NET PAYMENTS): The portion of a Purchase Payment which remains after the deduction of any applicable premium tax or similar tax.

NON-QUALIFIED CONTRACT: A Contract used in connection with a retirement plan that does not receive favorable federal income tax treatment under Sections 401, 403, 408, or 408A of the Internal Revenue Code. The Participant's interest in the Contract must be owned by a natural person or agent for a natural person for the Contract to receive income tax treatment as an annuity.

OPEN DATE: The date your Application is received by the Company in good order.

*OWNER: The person, persons or entity entitled to the ownership rights stated in a Group Contract and in whose name or names the Group Contract is issued. The Owner may designate a trustee or custodian of a retirement plan which meets the requirements of Section 401, Section 408(c), Section 408(k), Section 408(p) or Section 408A of the Internal Revenue Code to serve as legal owner of assets of a retirement plan, but the term "Owner," as used herein, shall refer to the organization entering into the Group Contract.

*PARTICIPANT: In the case of an Individual Contract, the owner of the Contract. In the case of a Group Contract, the person named in the Contract who is entitled to exercise all rights and privileges of ownership under the Contract, except as reserved by the Owner. If there are two Participants, the death benefit is paid upon the death of either Participant.

PAYEE: A recipient of payments under a Contract. The term includes an Annuitant or a Beneficiary who becomes entitled to benefits upon the death of the Participant, or on the Annuity Commencement Date.

PURCHASE PAYMENT (PAYMENT): An amount paid to the Company as consideration for the benefits provided by a Contract.

QUALIFIED CONTRACT: A Contract used in connection with a retirement plan which may receive favorable federal income tax treatment under Sections 401, 403, 408 or 408A of the Internal Revenue Code of 1986, as amended.

RENEWAL DATE: The last day of a Guarantee Period.

SUB-ACCOUNT: That portion of the Variable Account which invests in shares of a specific Fund or series of a Fund.

SURRENDER VALUE: The amount payable on full surrender of your Contract.

VALUATION PERIOD: The period of time from one determination of Variable Accumulation Unit or Annuity Unit values to the next subsequent determination of these values. Value determinations are made as of the close of the New York Stock Exchange on each day that the Exchange is open for trading.

VARIABLE ACCOUNT: Variable Account F of the Company, which is a separate account of the Company consisting of assets set aside by the Company, the investment performance of which is kept separate from that of the general assets of the Company.

VARIABLE ACCUMULATION UNIT: A unit of measure used in the calculation of Variable Account Value.

VARIABLE ACCOUNT VALUE: The value of that portion of your Account allocated to the Variable Account.

VARIABLE ANNUITY: An annuity with payments which vary as to dollar amount in relation to the investment performance of the Variable Account.

YOU and YOUR: The terms "you" and "your" refer to "Owner," "Participant," and/or "Covered Person" as those terms are identified in the Contract.

* You specify these items on the Application, and may change them, as we describe in this Prospectus.

APPENDIX B -

MARKET VALUE ADJUSTMENT

Fixed Account - Examples of the Market Value Adjustment ("MVA")

The MVA Factor is: [(1 + I) ÷ (1 + J + b)]^(N/12) -1.

These examples assume the following:

(1)	The Guarantee Amount was allocated to a 5-year Guarantee Period with a Guaranteed Interest Rate of 6% or .06.
(2)	The date of surrender is 2 years from the Expiration Date (N = 24).
(3)	The value of the Guarantee Amount on the date of surrender is $11,910.16.
(4)	The interest earned in the current Account Year is $674.16.
(5)	No transfers or partial withdrawals affecting this Guarantee Amount have been made.

Example of a Negative MVA:

Assume that on the date of surrender, the current rate (J) is 8% or .08 and the b factor is zero.

The MVA factor =	[(1 + I) ÷ (1 + J + b)](N/12) - 1
=	[(1 + .06) ÷ (1 + .08)](24/12) - 1
=	(.981 2) - 1
=	.963 - 1
=	-.037

The value of the Guarantee Amount less interest credited to the Guarantee Amount in the current Account Year is multiplied by the MVA factor to determine the MVA: ($11,910.16 - $674.16) x (-.037) = -$415.73.

-$415.73 represents the MVA that will be deducted from the value of the Guarantee Amount before the deduction of any withdrawal charge.

For a partial withdrawal of $2,000 from this Guarantee Amount, the MVA would be ($2,000.00 - $674.16) x (-.037) = -$49.06. -$49.06 represents the MVA that will be deducted from the partial withdrawal amount before the deduction of any withdrawal charge.

Example of a Positive MVA:

Assume that on the date of surrender, the current rate (J) is 5% or .05 and the b factor is zero.

The MVA factor =	[(1 + I) ÷ (1 + J + b)](N/12) - 1
=	[(1 + .06) ÷ (1 + .05)](24/12) - 1
=	(1.010 2) - 1
=	1.019 - 1
=	.019

The value of the Guarantee Amount less interested credit to the Guarantee Amount in the current Account Year is multiplied by the MVA factor to determine the MVA: ($11,910.16 - $674.16) x .019 = $213.48.

$213.48 represents the MVA that would be added to the value of the Guarantee Amount before the deduction of any withdrawal charge.

For a partial withdrawal of $2,000 from this Guarantee Amount, the MVA would be ($2,000.00 - $674.16) x .019 = $25.19.

$25.19 represents the MVA that would be added to the value of the partial withdrawal amount before the deduction of any withdrawal charge.

APPENDIX C -

OPTIONAL DEATH BENEFIT EXAMPLES

CALCULATION OF 5% PREMIUM ROLL-UP OPTIONAL DEATH BENEFIT

Example 1:

Assume a Purchase Payment of $60,000 is made on the Issue Date, and an additional Purchase Payment of $40,000 is made one year later. Assume that all of the money is invested in the Sub-Accounts. No withdrawals are made. The Owner dies in the eighth Account Year. The Account Value on the Death Benefit Date is $135,000, and the value of the Purchase Payments accumulated at 5% until the Death Benefit Date is $140,000. The calculation of the death benefit to be paid is as follows:

The Death Benefit Amount will be the greatest of:
Account Value	=	$135,000
Cash Surrender Value	=	$135,000
Total of Adjusted Purchase Payments	=	$100,000
5% Premium Roll-Up Value *	=	$140,000
The Death Benefit Amount would therefore	=	$140,000

* The 5% Premium Roll-Up Value is capped at 2 times the Adjusted Purchase Payments. Therefore, the cap = 2 x $100,000 = $200,000.

Example 2:

Assume a Purchase Payment of $60,000 is made on the Issue Date, and an additional Purchase Payment of $40,000 is made one year later. Assume that all of the money is invested in the Sub-Accounts and that the Account Value is $150,000 just prior to a $30,000 withdrawal. The Account Value on the Death Benefit Date is $90,000. The calculation of the death benefit to be paid is as follows:

The Death Benefit Amount will be the greatest of:
Account Value	=	$  90,000
Cash Surrender Value*	=	$  89,950
Total of Adjusted Purchase Payments**	=	$  80,000
5% Premium Roll-Up Value***	=	$112,000
The Death Benefit Amount would therefore	=	$112,000

*Cash Surrender Value is the amount we would pay you if you surrendered your entire Account Value. For a description of how Cash Surrender Value is calculated, see "Full Withdrawals" under the subheading "Cash Withdrawals."

* Adjusted Purchase Payments can be calculated as follows: Purchase Payments x (Account Value after withdrawal ÷ Account Value before withdrawal) = $100,000 x ($120,000 ÷ $150,000) = $80,000

** The 5% Premium Roll-Up Value is capped at 2 times the Adjusted Purchase Payments. Therefore, the cap = 2 x $80,000 = $160,000.

CALCULATION OF EEB PREMIER OPTIONAL DEATH BENEFIT

Example 1:

Assume a Purchase Payment of $60,000 is made on the Issue Date, and an additional Purchase Payment of $40,000 is made one year later. Assume that all of the money is invested into the Sub-Accounts, no withdrawals are made and the Account Value on the Death Benefit Date is $135,000. In addition, this Contract was issued prior to the owner's 70th birthday. Assume death occurs in Account Year 7. The calculation of the Death Benefit to be paid is as follows:

The Death Benefit Amount will be the greatest of:
Account Value	=	$135,000
Cash Surrender Value	=	$135,000
Total of Adjusted Purchase Payments	=	$100,000
The Death Benefit Amount would therefore	=	$135,000

-- PLUS --

The EEB amount, calculated as follows:
Account Value minus Adjusted Purchase Payments	=	$ 35,000
45% of the above amount	=	$ 15,750
Cap of 100% of Adjusted Purchase Payments	=	$100,000
The lesser of the above two amounts = the EEB Premier amount	=	$ 15,750

The total Death Benefit would be the amount paid on the basic death benefit plus the EEB Premier amount = $135,000 + $15,750 = $150,750.

Example 2:

Assume a Purchase Payment of $60,000 is made on the Issue Date, and an additional Purchase Payment of $40,000 is made one year later. Assume that all of the money is invested into the Sub-Accounts and that the Account Value is $135,000 just prior to a $20,000 withdrawal. The Account Value on the Death Benefit Date is $115,000. In addition, this Contract was issued prior to the owner's 70th birthday and death occurs in year 9.

The Death Benefit Amount will be the greatest of:
Account Value	=	$115,000
Cash Surrender Value*	=	$115,000
Total of Adjusted Purchase Payments**	=	$ 85,185
The Death Benefit Amount would therefore	=	$115,000

-- PLUS --

The EEB amount, calculated as follows:
Account Value minus Adjusted Purchase Payments	=	$ 29,815
45% of the above amount	=	$ 13,417
Cap of 100% of Adjusted Purchase Payments	=	$ 85,185
The lesser of the above two amounts = the EEB Premier
Amount	=	$ 13,417

The total Death Benefit would be the amount paid on the basic death benefit plus the EEB Premier amount = $115,000 + $13,417 = $128,417.

*Cash Surrender Value is the amount we would pay you if you surrendered your entire Account Value. For a description of how Cash Surrender Value is calculated, see "Full Withdrawals" under the subheading "Cash Withdrawals."

** Adjusted Purchase Payments can be calculated as follows: Payments x (Account Value after withdrawal ÷Account Value before withdrawal) = $100,000 x ($115,000 ÷ $135,000) = $85,185

CALCULATION OF EEB PREMIER PLUS OPTIONAL DEATH BENEFIT

Assume a Purchase Payment of $60,000 is made on the Issue Date, and an additional Purchase Payment of $40,000 is made one year later. Assume that all of the money is invested into the Sub-Accounts, no withdrawals are made and the Account Value on the Death Benefit Date is $135,000. In addition, this Contract was issued prior to the owner's 70th birthday. Assume death occurs in Account Year 7. The calculation of the Death Benefit to be paid is as follows:

The Death Benefit Amount will be the greatest of:
Account Value	=	$135,000
Cash Surrender Value*	=	$135,000
Total of Adjusted Purchase Payments	=	$100,000
The Death Benefit Amount would therefore	=	$135,000

--PLUS --

The EEB Premier Plus amount, calculated as follows:
Account Value minus Adjusted Purchase Payments	=	$ 35,000
75% of the above amount	=	$ 26,250
Cap of 150% of Adjusted Purchase Payments	=	$150,000
The lesser of the above two amounts = the EEB Premier Plus
with 5% Roll-up amount	=	$ 26,250

The total Death Benefit would be the amount paid on the basic death benefit plus the EEB Premier Plus amount = $135,000 + $26,250 = $161,250.

*Cash Surrender Value is the amount we would pay you if you surrendered your entire Account Value. For a description of how Cash Surrender Value is calculated, see "Full Withdrawals" under the subheading "Cash Withdrawals."

CALCULATION OF EEB PREMIER WITH MAV OPTIONAL DEATH BENEFIT

Assume a Purchase Payment of $60,000 is made on the Issue Date, and an additional Purchase Payment of $40,000 is made one year later. Assume that all of the money is invested into the Sub-Accounts, no withdrawals are made and the Account Value on the Death Benefit Date is $135,000. The Maximum Anniversary Value on the Death Benefit Date is $140,000. Assume death occurs in Account Year 7. In addition, this Contract was issued prior to the owner's 70th birthday. The calculation of the Death Benefit to be paid is as follows:

The Death Benefit Amount will be the greatest of:
Account Value	=	$135,000
Cash Surrender Value*	=	$135,000
Total of Adjusted Purchase Payments	=	$100,000
Maximum Anniversary Value	=	$140,000
The Death Benefit Amount would therefore	=	$140,000

--PLUS--

The EEB Premier amount, calculated as follows:
Account Value before EEB minus Adjusted Purchase Payments	=	$ 35,000
45% of the above amount	=	$ 15,750
Cap of 100% of Adjusted Purchase Payments	=	$100,000
The lesser of the above two amounts = the EEB Premier amount	=	$ 15,750

The total Death Benefit would be the amount paid on the Maximum Anniversary Rider plus the EEB Premier amount = $140,000 + $15,750 = $155,750.

*Cash Surrender Value is the amount we would pay you if you surrendered your entire Account Value. For a description of how Cash Surrender Value is calculated, see "Full Withdrawals" under the subheading "Cash Withdrawals."

CALCULATION OF EEB PREMIER WITH 5% ROLL-UP OPTIONAL DEATH BENEFIT

Assume a Purchase Payment of $60,000 is made on the Issue Date, and an additional Purchase Payment of $40,000 is made one year later. Assume that all of the money is invested into the Sub-Accounts, no withdrawals are made and the Account Value on the Death Benefit Date is $135,000. The value of the Purchase Payments accumulated at 5% until the Death Benefit Date is $140,000. In addition, this Contract was issued prior to the owner's 70th birthday. Assume death occurs in Account Year 8. The calculation of the Death Benefit to be paid is as follows:

The Death Benefit Amount will be the greatest of:
Account Value	=	$135,000
Cash Surrender Value*	=	$135,000
Total of Adjusted Purchase Payments	=	$100,000
5% Premium Roll-up Value	=	$140,000
The Death Benefit Amount would therefore	=	$140,000

--PLUS--

The EEB Premier amount, calculated as follows:
Account Value minus Adjusted Purchase Payments	=	$ 35,000
45% of the above amount	=	$ 15,750
Cap of 100% of Adjusted Purchase Payments	=	$100,000
The lesser of the above two amounts = the EEB Premier amount	=	$ 15,750

The total Death Benefit would be the amount paid on the 5% Roll-Up Rider plus the EEB Premier amount = $140,000 + $15,750 = $155,750.

*Cash Surrender Value is the amount we would pay you if you surrendered your entire Account Value. For a description of how Cash Surrender Value is calculated, see "Full Withdrawals" under the subheading "Cash Withdrawals."

APPENDIX D -

PREVIOUSLY AVAILABLE INVESTMENT OPTIONS

The current available variable investment options are those listed on page 1 of the prospectus.

If you purchased your Contract before February 2, 2004, you may make subsequent Purchase Payments and transfers into the following investment options that were available for investment prior to that date:

Large-Cap Equity Funds	Real Estate Equity Funds
MFS®/Sun Life Capital Appreciation - S Class	Sun Capital Real Estate Fund® - Initial Class
MFS®/Sun Life Strategic Value - S Class	Multi- Sector Bond Funds
International/Global Equity Funds	MFS®/Sun Life Strategic Income - S Class
MFS®/Sun Life Global Growth - S Class
Mid-Cap Equity Funds	MFS®/Sun Life Bond- S Class
MFS®/Sun Life Mid Cap Growth - S Class
MFS®/Sun Life Mid Cap Value - S Class

Massachusetts Financial Services Company advises the MFS^®/Sun Life Funds. Sun Capital Advisers LLC advises the Sun Capital Funds.

If you purchased your Contract before March 5, 2007, you may make subsequent Purchase Payments and transfers into the following investment options that were available for investment prior to that date:

Large-Cap Equity Funds	Emerging Markets Equity Funds
MFS/® Sun Life Capital Opportunities - S Class	MFS®Sun Life Emerging Markets Equity - S Class
MFS®/ Sun Life Emerging Growth - S Class	Small-Cap Equity Funds
MFS®/ Sun Life Massachusetts Investors Growth Stock -	MFS®/ Sun Life New Discovery - S Class
S Class	Oppenheimer Main Street Small Cap Fund/VA
MFS®/ Sun Life Massachusetts Investors Trust	- Service Shares
MFS®/ Sun Life Research - S Class
MFS®/ Sun Life Strategic Growth - S Class

Massachusetts Financial Services Company advises the MFS^®/Sun Life Funds. OppenheimerFunds, Inc. advises the Oppenheimer Funds. Sun Capital Advisers LLC advises the Sun Capital Funds.

APPENDIX E -

CONDENSED FINANCIAL INFORMATION

The following information for SUN LIFE FINANCIAL MASTERS ACCESS should be read in conjunction with the Variable Account's financial statements appearing in the Statement of Additional Information. The $10 beginning value for each accumulation unit is as of the date the unit commenced, which was generally later than the first day of the year shown.

Fund	Price Level	Year	Accumulation Unit Value Beginning of Year	Accumulation Unit Value End of Year	Number of Accumulation Units End of Year
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	01	2006	10.3124	11.1088	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	01	2005	10.0000	10.3124	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	02	2006	10.3090	11.0826	34,212
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	02	2005	10.0000	10.3090	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	03	2006	10.3081	11.0760	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	03	2005	10.0000	10.3081	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	04	2006	10.3055	11.0563	679
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	04	2005	10.0000	10.3055	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	05	2006	10.3046	11.0498	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	05	2005	10.0000	10.3046	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	06	2006	10.3020	11.0300	0
Fidelity® VIP Freedom 2010 Portfolio Service Class 2	06	2005	10.0000	10.3020	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	01	2006	10.3876	11.3182	4,556
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	01	2005	10.0000	10.3876	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	02	2006	10.3841	11.2915	4,215
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	02	2005	10.0000	10.3841	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	03	2006	10.3832	11.2848	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	03	2005	10.0000	10.3832	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	04	2006	10.3806	11.2647	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	04	2005	10.0000	10.3806	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	05	2006	10.3798	11.2581	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	05	2005	10.0000	10.3798	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	06	2006	10.3771	11.2380	0
Fidelity® VIP Freedom 2015 Portfolio Service Class 2	06	2005	10.0000	10.3771	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	01	2006	10.4285	11.4517	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	01	2005	10.0000	10.4285	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	02	2006	10.4250	11.4246	5,338
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	02	2005	10.0000	10.4250	4,912
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	03	2006	10.4241	11.4178	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	03	2005	10.0000	10.4241	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	04	2006	10.4215	11.3975	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	04	2005	10.0000	10.4215	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	05	2006	10.4206	11.3908	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	05	2005	10.0000	10.4206	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	06	2006	10.4180	11.3705	0
Fidelity® VIP Freedom 2020 Portfolio Service Class 2	06	2005	10.0000	10.4180	0
Franklin Small Cap Value Securities Fund, Class 2	01	2006	17.6571	20.3053	25,684
Franklin Small Cap Value Securities Fund, Class 2	01	2005	16.5137	17.6571	22,297
Franklin Small Cap Value Securities Fund, Class 2	01	2004	13.5761	16.5137	19,580
Franklin Small Cap Value Securities Fund, Class 2	01	2003	10.4527	13.5761	3,124
Franklin Small Cap Value Securities Fund, Class 2	01	2002	10.0000	10.4527	359
Franklin Small Cap Value Securities Fund, Class 2	02	2006	17.5351	20.1241	47,948
Franklin Small Cap Value Securities Fund, Class 2	02	2005	16.4330	17.5351	49,328
Franklin Small Cap Value Securities Fund, Class 2	02	2004	13.5373	16.4330	29,473
Franklin Small Cap Value Securities Fund, Class 2	02	2003	10.4441	13.5373	10,469
Franklin Small Cap Value Securities Fund, Class 2	02	2002	10.0000	10.4441	0
Franklin Small Cap Value Securities Fund, Class 2	03	2006	17.5047	20.0790	3,468
Franklin Small Cap Value Securities Fund, Class 2	03	2005	16.4128	17.5047	3,089
Franklin Small Cap Value Securities Fund, Class 2	03	2004	13.5276	16.4128	1,647
Franklin Small Cap Value Securities Fund, Class 2	03	2003	10.4419	13.5276	137
Franklin Small Cap Value Securities Fund, Class 2	03	2002	10.0000	10.4419	0
Franklin Small Cap Value Securities Fund, Class 2	04	2006	17.4136	19.9440	26,431
Franklin Small Cap Value Securities Fund, Class 2	04	2005	16.3524	17.4136	29,745
Franklin Small Cap Value Securities Fund, Class 2	04	2004	13.4986	16.3524	22,232
Franklin Small Cap Value Securities Fund, Class 2	04	2003	10.4354	13.4986	9,848
Franklin Small Cap Value Securities Fund, Class 2	04	2002	10.0000	10.4354	1,986
Franklin Small Cap Value Securities Fund, Class 2	05	2006	17.3835	19.8995	1,920
Franklin Small Cap Value Securities Fund, Class 2	05	2005	16.3324	17.3835	2,473
Franklin Small Cap Value Securities Fund, Class 2	05	2004	13.4889	16.3324	2,473
Franklin Small Cap Value Securities Fund, Class 2	05	2003	10.4333	13.4889	2,534
Franklin Small Cap Value Securities Fund, Class 2	05	2002	10.0000	10.4333	0
Franklin Small Cap Value Securities Fund, Class 2	06	2006	17.2928	19.7654	5,141
Franklin Small Cap Value Securities Fund, Class 2	06	2005	16.2721	17.2928	5,229
Franklin Small Cap Value Securities Fund, Class 2	06	2004	13.4599	16.2721	5,231
Franklin Small Cap Value Securities Fund, Class 2	06	2003	10.4268	13.4599	86
Franklin Small Cap Value Securities Fund, Class 2	06	2002	10.0000	10.4268	0
Lord Abbett Series Fund All Value Portfolio	01	2006	12.4243	14.0019	21,917
Lord Abbett Series Fund All Value Portfolio	01	2005	11.8171	12.4243	21,268
Lord Abbett Series Fund All Value Portfolio	01	2004	10.3896	11.8171	17,930
Lord Abbett Series Fund All Value Portfolio	01	2003	10.0000	10.3896	0
Lord Abbett Series Fund All Value Portfolio	02	2006	12.3722	13.9149	56,766
Lord Abbett Series Fund All Value Portfolio	02	2005	11.7915	12.3722	73,659
Lord Abbett Series Fund All Value Portfolio	02	2004	10.3883	11.7915	35,899
Lord Abbett Series Fund All Value Portfolio	02	2003	10.0000	10.3883	0
Lord Abbett Series Fund All Value Portfolio	03	2006	12.3592	13.8932	0
Lord Abbett Series Fund All Value Portfolio	03	2005	11.7851	12.3592	8
Lord Abbett Series Fund All Value Portfolio	03	2004	10.3880	11.7851	46
Lord Abbett Series Fund All Value Portfolio	03	2003	10.0000	10.3880	0
Lord Abbett Series Fund All Value Portfolio	04	2006	12.3202	13.8282	25,107
Lord Abbett Series Fund All Value Portfolio	04	2005	11.7658	12.3202	22,871
Lord Abbett Series Fund All Value Portfolio	04	2004	10.3870	11.7658	19,209
Lord Abbett Series Fund All Value Portfolio	04	2003	10.0000	10.3870	0
Lord Abbett Series Fund All Value Portfolio	05	2006	12.3073	13.8068	0
Lord Abbett Series Fund All Value Portfolio	05	2005	11.7595	12.3073	0
Lord Abbett Series Fund All Value Portfolio	05	2004	10.3866	11.7595	0
Lord Abbett Series Fund All Value Portfolio	05	2003	10.0000	10.3866	0
Lord Abbett Series Fund All Value Portfolio	06	2006	12.2684	13.7420	7,093
Lord Abbett Series Fund All Value Portfolio	06	2005	11.7402	12.2684	7,093
Lord Abbett Series Fund All Value Portfolio	06	2004	10.3856	11.7402	7,093
Lord Abbett Series Fund All Value Portfolio	06	2003	10.0000	10.3856	0
Lord Abbett Series Fund Growth and Income Portfolio	01	2006	15.4970	17.8658	98,164
Lord Abbett Series Fund Growth and Income Portfolio	01	2005	15.2685	15.4970	99,020
Lord Abbett Series Fund Growth and Income Portfolio	01	2004	13.7885	15.2685	83,826
Lord Abbett Series Fund Growth and Income Portfolio	01	2003	10.7064	13.7885	29,563
Lord Abbett Series Fund Growth and Income Portfolio	01	2002	10.0000	10.7064	0
Lord Abbett Series Fund Growth and Income Portfolio	02	2006	15.3899	17.7063	274,200
Lord Abbett Series Fund Growth and Income Portfolio	02	2005	15.1938	15.3899	254,898
Lord Abbett Series Fund Growth and Income Portfolio	02	2004	13.7491	15.1938	184,296
Lord Abbett Series Fund Growth and Income Portfolio	02	2003	10.6975	13.7491	86,424
Lord Abbett Series Fund Growth and Income Portfolio	02	2002	10.0000	10.6975	654
Lord Abbett Series Fund Growth and Income Portfolio	03	2006	15.3631	17.6666	365
Lord Abbett Series Fund Growth and Income Portfolio	03	2005	15.1751	15.3631	0
Lord Abbett Series Fund Growth and Income Portfolio	03	2004	13.7393	15.1751	2,967
Lord Abbett Series Fund Growth and Income Portfolio	03	2003	10.6953	13.7393	39
Lord Abbett Series Fund Growth and Income Portfolio	03	2002	10.0000	10.6953	0
Lord Abbett Series Fund Growth and Income Portfolio	04	2006	15.2832	17.5478	54,495
Lord Abbett Series Fund Growth and Income Portfolio	04	2005	15.1192	15.2832	66,434
Lord Abbett Series Fund Growth and Income Portfolio	04	2004	13.7097	15.1192	45,559
Lord Abbett Series Fund Growth and Income Portfolio	04	2003	10.6887	13.7097	12,668
Lord Abbett Series Fund Growth and Income Portfolio	04	2002	10.0000	10.6887	3,671
Lord Abbett Series Fund Growth and Income Portfolio	05	2006	15.2568	17.5086	0
Lord Abbett Series Fund Growth and Income Portfolio	05	2005	15.1007	15.2568	0
Lord Abbett Series Fund Growth and Income Portfolio	05	2004	13.6999	15.1007	0
Lord Abbett Series Fund Growth and Income Portfolio	05	2003	10.6865	13.6999	0
Lord Abbett Series Fund Growth and Income Portfolio	05	2002	10.0000	10.6865	0
Lord Abbett Series Fund Growth and Income Portfolio	06	2006	15.1772	17.3906	6,097
Lord Abbett Series Fund Growth and Income Portfolio	06	2005	15.0450	15.1772	5,460
Lord Abbett Series Fund Growth and Income Portfolio	06	2004	13.6704	15.0450	9,191
Lord Abbett Series Fund Growth and Income Portfolio	06	2003	10.6798	13.6704	3,741
Lord Abbett Series Fund Growth and Income Portfolio	06	2002	10.0000	10.6798	0
Lord Abbett Series Fund Growth Opportunities Portfolio	01	2006	11.4827	12.1791	15,001
Lord Abbett Series Fund Growth Opportunities Portfolio	01	2005	11.1645	11.4827	17,471
Lord Abbett Series Fund Growth Opportunities Portfolio	01	2004	10.2112	11.1645	9,631
Lord Abbett Series Fund Growth Opportunities Portfolio	01	2003	10.0000	10.2112	0
Lord Abbett Series Fund Growth Opportunities Portfolio	02	2006	11.4346	12.1035	61,299
Lord Abbett Series Fund Growth Opportunities Portfolio	02	2005	11.1403	11.4346	54,837
Lord Abbett Series Fund Growth Opportunities Portfolio	02	2004	10.2098	11.1403	31,976
Lord Abbett Series Fund Growth Opportunities Portfolio	02	2003	10.0000	10.2098	0
Lord Abbett Series Fund Growth Opportunities Portfolio	03	2006	11.4225	12.0845	6,171
Lord Abbett Series Fund Growth Opportunities Portfolio	03	2005	11.1342	11.4225	1,767
Lord Abbett Series Fund Growth Opportunities Portfolio	03	2004	10.2095	11.1342	0
Lord Abbett Series Fund Growth Opportunities Portfolio	03	2003	10.0000	10.2095	0
Lord Abbett Series Fund Growth Opportunities Portfolio	04	2006	11.3864	12.0280	31,625
Lord Abbett Series Fund Growth Opportunities Portfolio	04	2005	11.1160	11.3864	14,813
Lord Abbett Series Fund Growth Opportunities Portfolio	04	2004	10.2085	11.1160	7,735
Lord Abbett Series Fund Growth Opportunities Portfolio	04	2003	10.0000	10.2085	0
Lord Abbett Series Fund Growth Opportunities Portfolio	05	2006	11.3745	12.0093	0
Lord Abbett Series Fund Growth Opportunities Portfolio	05	2005	11.1100	11.3745	0
Lord Abbett Series Fund Growth Opportunities Portfolio	05	2004	10.2082	11.1100	0
Lord Abbett Series Fund Growth Opportunities Portfolio	05	2003	10.0000	10.2082	0
Lord Abbett Series Fund Growth Opportunities Portfolio	06	2006	11.3385	11.9530	1,515
Lord Abbett Series Fund Growth Opportunities Portfolio	06	2005	11.0918	11.3385	812
Lord Abbett Series Fund Growth Opportunities Portfolio	06	2004	10.2072	11.0918	817
Lord Abbett Series Fund Growth Opportunities Portfolio	06	2003	10.0000	10.2072	0
Lord Abbett Series Fund Mid Cap Value Portfolio	01	2006	16.9643	18.7165	135,244
Lord Abbett Series Fund Mid Cap Value Portfolio	01	2005	15.9458	16.9643	89,289
Lord Abbett Series Fund Mid Cap Value Portfolio	01	2004	13.0779	15.9458	83,487
Lord Abbett Series Fund Mid Cap Value Portfolio	01	2003	10.6640	13.0779	9,479
Lord Abbett Series Fund Mid Cap Value Portfolio	01	2002	10.0000	10.6640	0
Lord Abbett Series Fund Mid Cap Value Portfolio	02	2006	16.8471	18.5494	88,591
Lord Abbett Series Fund Mid Cap Value Portfolio	02	2005	15.8678	16.8471	90,710
Lord Abbett Series Fund Mid Cap Value Portfolio	02	2004	13.0405	15.8678	77,964
Lord Abbett Series Fund Mid Cap Value Portfolio	02	2003	10.6552	13.0405	19,735
Lord Abbett Series Fund Mid Cap Value Portfolio	02	2002	10.0000	10.6552	0
Lord Abbett Series Fund Mid Cap Value Portfolio	03	2006	16.8178	18.5078	2,119
Lord Abbett Series Fund Mid Cap Value Portfolio	03	2005	15.8483	16.8178	2,710
Lord Abbett Series Fund Mid Cap Value Portfolio	03	2004	13.0312	15.8483	3,107
Lord Abbett Series Fund Mid Cap Value Portfolio	03	2003	10.6530	13.0312	267
Lord Abbett Series Fund Mid Cap Value Portfolio	03	2002	10.0000	10.6530	0
Lord Abbett Series Fund Mid Cap Value Portfolio	04	2006	16.7303	18.3833	101,102
Lord Abbett Series Fund Mid Cap Value Portfolio	04	2005	15.7899	16.7303	105,088
Lord Abbett Series Fund Mid Cap Value Portfolio	04	2004	13.0031	15.7899	58,978
Lord Abbett Series Fund Mid Cap Value Portfolio	04	2003	10.6463	13.0031	26,923
Lord Abbett Series Fund Mid Cap Value Portfolio	04	2002	10.0000	10.6463	9,443
Lord Abbett Series Fund Mid Cap Value Portfolio	05	2006	16.7014	18.3423	4,485
Lord Abbett Series Fund Mid Cap Value Portfolio	05	2005	15.7706	16.7014	5,705
Lord Abbett Series Fund Mid Cap Value Portfolio	05	2004	12.9938	15.7706	5,705
Lord Abbett Series Fund Mid Cap Value Portfolio	05	2003	10.6441	12.9938	7,628
Lord Abbett Series Fund Mid Cap Value Portfolio	05	2002	10.0000	10.6441	0
Lord Abbett Series Fund Mid Cap Value Portfolio	06	2006	16.6143	18.2187	8,434
Lord Abbett Series Fund Mid Cap Value Portfolio	06	2005	15.7124	16.6143	5,576
Lord Abbett Series Fund Mid Cap Value Portfolio	06	2004	12.9658	15.7124	3,636
Lord Abbett Series Fund Mid Cap Value Portfolio	06	2003	10.6375	12.9658	87
Lord Abbett Series Fund Mid Cap Value Portfolio	06	2002	10.0000	10.6375	0
MFS®/Sun Life Bond Series S Class	01	2006	11.8278	12.1936	8,695
MFS®/Sun Life Bond Series S Class	01	2005	11.8431	11.8278	12,271
MFS®/Sun Life Bond Series S Class	01	2004	11.3761	11.8431	13,109
MFS®/Sun Life Bond Series S Class	01	2003	10.5755	11.3761	12,510
MFS®/Sun Life Bond Series S Class	01	2002	10.0000	10.5755	0
MFS®/Sun Life Bond Series S Class	02	2006	11.7460	12.0847	26,226
MFS®/Sun Life Bond Series S Class	02	2005	11.7852	11.7460	28,682
MFS®/Sun Life Bond Series S Class	02	2004	11.3436	11.7852	36,294
MFS®/Sun Life Bond Series S Class	02	2003	10.5667	11.3436	31,365
MFS®/Sun Life Bond Series S Class	02	2002	10.0000	10.5667	1,352
MFS®/Sun Life Bond Series S Class	03	2006	11.7256	12.0576	6,374
MFS®/Sun Life Bond Series S Class	03	2005	11.7707	11.7256	5,501
MFS®/Sun Life Bond Series S Class	03	2004	11.3355	11.7707	6,387
MFS®/Sun Life Bond Series S Class	03	2003	10.5646	11.3355	5,400
MFS®/Sun Life Bond Series S Class	03	2002	10.0000	10.5646	0
MFS®/Sun Life Bond Series S Class	04	2006	11.6646	11.9765	14,374
MFS®/Sun Life Bond Series S Class	04	2005	11.7273	11.6646	27,920
MFS®/Sun Life Bond Series S Class	04	2004	11.3111	11.7273	30,422
MFS®/Sun Life Bond Series S Class	04	2003	10.5580	11.3111	31,497
MFS®/Sun Life Bond Series S Class	04	2002	10.0000	10.5580	4,076
MFS®/Sun Life Bond Series S Class	05	2006	11.6444	11.9498	1,300
MFS®/Sun Life Bond Series S Class	05	2005	11.7130	11.6444	1,300
MFS®/Sun Life Bond Series S Class	05	2004	11.3030	11.7130	1,300
MFS®/Sun Life Bond Series S Class	05	2003	10.5558	11.3030	5,133
MFS®/Sun Life Bond Series S Class	05	2002	10.0000	10.5558	0
MFS®/Sun Life Bond Series S Class	06	2006	11.5837	11.8692	4,712
MFS®/Sun Life Bond Series S Class	06	2005	11.6697	11.5837	6,357
MFS®/Sun Life Bond Series S Class	06	2004	11.2786	11.6697	7,217
MFS®/Sun Life Bond Series S Class	06	2003	10.5493	11.2786	7,023
MFS®/Sun Life Bond Series S Class	06	2002	10.0000	10.5493	0
MFS®/Sun Life Capital Appreciation Series S Class	01	2006	14.3292	14.9391	480
MFS®/Sun Life Capital Appreciation Series S Class	01	2005	14.4845	14.3292	482
MFS®/Sun Life Capital Appreciation Series S Class	01	2004	13.3013	14.4845	3,486
MFS®/Sun Life Capital Appreciation Series S Class	01	2003	10.5424	13.3013	4,482
MFS®/Sun Life Capital Appreciation Series S Class	01	2002	10.0000	10.5424	0
MFS®/Sun Life Capital Appreciation Series S Class	02	2006	14.2302	14.8058	28,777
MFS®/Sun Life Capital Appreciation Series S Class	02	2005	14.4136	14.2302	29,418
MFS®/Sun Life Capital Appreciation Series S Class	02	2004	13.2633	14.4136	31,845
MFS®/Sun Life Capital Appreciation Series S Class	02	2003	10.5337	13.2633	33,241
MFS®/Sun Life Capital Appreciation Series S Class	02	2002	10.0000	10.5337	311
MFS®/Sun Life Capital Appreciation Series S Class	03	2006	14.2055	14.7725	0
MFS®/Sun Life Capital Appreciation Series S Class	03	2005	14.3959	14.2055	0
MFS®/Sun Life Capital Appreciation Series S Class	03	2004	13.2538	14.3959	0
MFS®/Sun Life Capital Appreciation Series S Class	03	2003	10.5315	13.2538	0
MFS®/Sun Life Capital Appreciation Series S Class	03	2002	10.0000	10.5315	0
MFS®/Sun Life Capital Appreciation Series S Class	04	2006	14.1315	14.6731	6,174
MFS®/Sun Life Capital Appreciation Series S Class	04	2005	14.3429	14.1315	14,753
MFS®/Sun Life Capital Appreciation Series S Class	04	2004	13.2253	14.3429	12,897
MFS®/Sun Life Capital Appreciation Series S Class	04	2003	10.5250	13.2253	10,354
MFS®/Sun Life Capital Appreciation Series S Class	04	2002	10.0000	10.5250	520
MFS®/Sun Life Capital Appreciation Series S Class	05	2006	14.1071	14.6404	0
MFS®/Sun Life Capital Appreciation Series S Class	05	2005	14.3254	14.1071	0
MFS®/Sun Life Capital Appreciation Series S Class	05	2004	13.2159	14.3254	0
MFS®/Sun Life Capital Appreciation Series S Class	05	2003	10.5228	13.2159	3,243
MFS®/Sun Life Capital Appreciation Series S Class	05	2002	10.0000	10.5228	0
MFS®/Sun Life Capital Appreciation Series S Class	06	2006	14.0336	14.5417	417
MFS®/Sun Life Capital Appreciation Series S Class	06	2005	14.2725	14.0336	417
MFS®/Sun Life Capital Appreciation Series S Class	06	2004	13.1874	14.2725	4,137
MFS®/Sun Life Capital Appreciation Series S Class	06	2003	10.5163	13.1874	3,718
MFS®/Sun Life Capital Appreciation Series S Class	06	2002	10.0000	10.5163	0
MFS®/Sun Life Capital Opportunities Series S Class	01	2006	14.7035	16.4801	1,812
MFS®/Sun Life Capital Opportunities Series S Class	01	2005	14.7635	14.7035	2,045
MFS®/Sun Life Capital Opportunities Series S Class	01	2004	13.3479	14.7635	2,685
MFS®/Sun Life Capital Opportunities Series S Class	01	2003	10.6080	13.3479	383
MFS®/Sun Life Capital Opportunities Series S Class	01	2002	10.0000	10.6080	0
MFS®/Sun Life Capital Opportunities Series S Class	02	2006	14.6019	16.3330	8,269
MFS®/Sun Life Capital Opportunities Series S Class	02	2005	14.6913	14.6019	6,200
MFS®/Sun Life Capital Opportunities Series S Class	02	2004	13.3098	14.6913	3,977
MFS®/Sun Life Capital Opportunities Series S Class	02	2003	10.5992	13.3098	3,562
MFS®/Sun Life Capital Opportunities Series S Class	02	2002	10.0000	10.5992	1,267
MFS®/Sun Life Capital Opportunities Series S Class	03	2006	14.5765	16.2964	0
MFS®/Sun Life Capital Opportunities Series S Class	03	2005	14.6732	14.5765	0
MFS®/Sun Life Capital Opportunities Series S Class	03	2004	13.3002	14.6732	0
MFS®/Sun Life Capital Opportunities Series S Class	03	2003	10.5970	13.3002	0
MFS®/Sun Life Capital Opportunities Series S Class	03	2002	10.0000	10.5970	0
MFS®/Sun Life Capital Opportunities Series S Class	04	2006	14.5006	16.1867	1,087
MFS®/Sun Life Capital Opportunities Series S Class	04	2005	14.6192	14.5006	5,466
MFS®/Sun Life Capital Opportunities Series S Class	04	2004	13.2716	14.6192	3,568
MFS®/Sun Life Capital Opportunities Series S Class	04	2003	10.5904	13.2716	3,568
MFS®/Sun Life Capital Opportunities Series S Class	04	2002	10.0000	10.5904	2,412
MFS®/Sun Life Capital Opportunities Series S Class	05	2006	14.4756	16.1507	0
MFS®/Sun Life Capital Opportunities Series S Class	05	2005	14.6013	14.4756	0
MFS®/Sun Life Capital Opportunities Series S Class	05	2004	13.2622	14.6013	0
MFS®/Sun Life Capital Opportunities Series S Class	05	2003	10.5882	13.2622	0
MFS®/Sun Life Capital Opportunities Series S Class	05	2002	10.0000	10.5882	0
MFS®/Sun Life Capital Opportunities Series S Class	06	2006	14.4001	16.0418	0
MFS®/Sun Life Capital Opportunities Series S Class	06	2005	14.5474	14.4001	0
MFS®/Sun Life Capital Opportunities Series S Class	06	2004	13.2336	14.5474	0
MFS®/Sun Life Capital Opportunities Series S Class	06	2003	10.5816	13.2336	0
MFS®/Sun Life Capital Opportunities Series S Class	06	2002	10.0000	10.5816	0
MFS®/Sun Life Emerging Growth Series S Class	01	2006	16.0286	16.9696	2,084
MFS®/Sun Life Emerging Growth Series S Class	01	2005	14.9727	16.0286	2,504
MFS®/Sun Life Emerging Growth Series S Class	01	2004	13.4842	14.9727	5,032
MFS®/Sun Life Emerging Growth Series S Class	01	2003	10.4601	13.4842	2,371
MFS®/Sun Life Emerging Growth Series S Class	01	2002	10.0000	10.4601	0
MFS®/Sun Life Emerging Growth Series S Class	02	2006	15.9178	16.8181	5,655
MFS®/Sun Life Emerging Growth Series S Class	02	2005	14.8995	15.9178	7,927
MFS®/Sun Life Emerging Growth Series S Class	02	2004	13.4456	14.8995	5,499
MFS®/Sun Life Emerging Growth Series S Class	02	2003	10.4514	13.4456	1,932
MFS®/Sun Life Emerging Growth Series S Class	02	2002	10.0000	10.4514	596
MFS®/Sun Life Emerging Growth Series S Class	03	2006	15.8902	16.7803	2,542
MFS®/Sun Life Emerging Growth Series S Class	03	2005	14.8811	15.8902	1,266
MFS®/Sun Life Emerging Growth Series S Class	03	2004	13.4360	14.8811	0
MFS®/Sun Life Emerging Growth Series S Class	03	2003	10.4493	13.4360	0
MFS®/Sun Life Emerging Growth Series S Class	03	2002	10.0000	10.4493	0
MFS®/Sun Life Emerging Growth Series S Class	04	2006	15.8075	16.6675	6,413
MFS®/Sun Life Emerging Growth Series S Class	04	2005	14.8263	15.8075	5,255
MFS®/Sun Life Emerging Growth Series S Class	04	2004	13.4071	14.8263	5,158
MFS®/Sun Life Emerging Growth Series S Class	04	2003	10.4428	13.4071	7,157
MFS®/Sun Life Emerging Growth Series S Class	04	2002	10.0000	10.4428	0
MFS®/Sun Life Emerging Growth Series S Class	05	2006	15.7802	16.6303	0
MFS®/Sun Life Emerging Growth Series S Class	05	2005	14.8082	15.7802	1,720
MFS®/Sun Life Emerging Growth Series S Class	05	2004	13.3975	14.8082	1,720
MFS®/Sun Life Emerging Growth Series S Class	05	2003	10.4406	13.3975	1,788
MFS®/Sun Life Emerging Growth Series S Class	05	2002	10.0000	10.4406	0
MFS®/Sun Life Emerging Growth Series S Class	06	2006	15.6978	16.5182	622
MFS®/Sun Life Emerging Growth Series S Class	06	2005	14.7535	15.6978	622
MFS®/Sun Life Emerging Growth Series S Class	06	2004	13.3686	14.7535	622
MFS®/Sun Life Emerging Growth Series S Class	06	2003	10.4341	13.3686	0
MFS®/Sun Life Emerging Growth Series S Class	06	2002	10.0000	10.4341	0
MFS®/Sun Life Emerging Markets Equity Series S Class	01	2006	11.2521	14.3683	8,660
MFS®/Sun Life Emerging Markets Equity Series S Class	01	2005	10.0000	11.2521	1,568
MFS®/Sun Life Emerging Markets Equity Series S Class	02	2006	11.2483	14.3344	6,630
MFS®/Sun Life Emerging Markets Equity Series S Class	02	2005	10.0000	11.2483	0
MFS®/Sun Life Emerging Markets Equity Series S Class	03	2006	11.2474	14.3259	0
MFS®/Sun Life Emerging Markets Equity Series S Class	03	2005	10.0000	11.2474	0
MFS®/Sun Life Emerging Markets Equity Series S Class	04	2006	11.2445	14.3004	7,760
MFS®/Sun Life Emerging Markets Equity Series S Class	04	2005	10.0000	11.2445	0
MFS®/Sun Life Emerging Markets Equity Series S Class	05	2006	11.2436	14.2920	0
MFS®/Sun Life Emerging Markets Equity Series S Class	05	2005	10.0000	11.2436	0
MFS®/Sun Life Emerging Markets Equity Series S Class	06	2006	11.2407	14.2665	0
MFS®/Sun Life Emerging Markets Equity Series S Class	06	2005	10.0000	11.2407	0
MFS®/Sun Life Global Growth Series S Class	01	2006	16.6923	19.1996	2,000
MFS®/Sun Life Global Growth Series S Class	01	2005	15.4738	16.6923	2,531
MFS®/Sun Life Global Growth Series S Class	01	2004	13.6401	15.4738	2,703
MFS®/Sun Life Global Growth Series S Class	01	2003	10.2686	13.6401	1,854
MFS®/Sun Life Global Growth Series S Class	01	2002	10.0000	10.2686	47,491
MFS®/Sun Life Global Growth Series S Class	02	2006	16.5770	19.0283	5,143
MFS®/Sun Life Global Growth Series S Class	02	2005	15.3982	16.5770	5,953
MFS®/Sun Life Global Growth Series S Class	02	2004	13.6011	15.3982	18,149
MFS®/Sun Life Global Growth Series S Class	02	2003	10.2601	13.6011	17,511
MFS®/Sun Life Global Growth Series S Class	02	2002	10.0000	10.2601	678
MFS®/Sun Life Global Growth Series S Class	03	2006	16.5482	18.9856	0
MFS®/Sun Life Global Growth Series S Class	03	2005	15.3793	16.5482	0
MFS®/Sun Life Global Growth Series S Class	03	2004	13.5913	15.3793	0
MFS®/Sun Life Global Growth Series S Class	03	2003	10.2579	13.5913	0
MFS®/Sun Life Global Growth Series S Class	03	2002	10.0000	10.2579	0
MFS®/Sun Life Global Growth Series S Class	04	2006	16.4621	18.8579	6,051
MFS®/Sun Life Global Growth Series S Class	04	2005	15.3226	16.4621	5,712
MFS®/Sun Life Global Growth Series S Class	04	2004	13.5621	15.3226	5,561
MFS®/Sun Life Global Growth Series S Class	04	2003	10.2516	13.5621	5,675
MFS®/Sun Life Global Growth Series S Class	04	2002	10.0000	10.2516	0
MFS®/Sun Life Global Growth Series S Class	05	2006	16.4337	18.8158	0
MFS®/Sun Life Global Growth Series S Class	05	2005	15.3039	16.4337	0
MFS®/Sun Life Global Growth Series S Class	05	2004	13.5524	15.3039	0
MFS®/Sun Life Global Growth Series S Class	05	2003	10.2495	13.5524	0
MFS®/Sun Life Global Growth Series S Class	05	2002	10.0000	10.2495	0
MFS®/Sun Life Global Growth Series S Class	06	2006	16.3480	18.6890	0
MFS®/Sun Life Global Growth Series S Class	06	2005	15.2474	16.3480	0
MFS®/Sun Life Global Growth Series S Class	06	2004	13.5232	15.2474	0
MFS®/Sun Life Global Growth Series S Class	06	2003	10.2431	13.5232	0
MFS®/Sun Life Global Growth Series S Class	06	2002	10.0000	10.2431	0
MFS®/Sun Life Government Securities Series S Class	01	2006	10.4606	10.6404	148,687
MFS®/Sun Life Government Securities Series S Class	01	2005	10.4317	10.4606	135,590
MFS®/Sun Life Government Securities Series S Class	01	2004	10.2487	10.4317	132,118
MFS®/Sun Life Government Securities Series S Class	01	2003	10.2346	10.2487	78,432
MFS®/Sun Life Government Securities Series S Class	01	2002	10.0000	10.2346	302
MFS®/Sun Life Government Securities Series S Class	02	2006	10.3883	10.5454	375,861
MFS®/Sun Life Government Securities Series S Class	02	2005	10.3807	10.3883	260,366
MFS®/Sun Life Government Securities Series S Class	02	2004	10.2194	10.3807	231,601
MFS®/Sun Life Government Securities Series S Class	02	2003	10.2261	10.2194	127,774
MFS®/Sun Life Government Securities Series S Class	02	2002	10.0000	10.2261	5,049
MFS®/Sun Life Government Securities Series S Class	03	2006	10.3702	10.5217	400
MFS®/Sun Life Government Securities Series S Class	03	2005	10.3679	10.3702	401
MFS®/Sun Life Government Securities Series S Class	03	2004	10.2120	10.3679	5,270
MFS®/Sun Life Government Securities Series S Class	03	2003	10.2240	10.2120	5,245
MFS®/Sun Life Government Securities Series S Class	03	2002	10.0000	10.2240	0
MFS®/Sun Life Government Securities Series S Class	04	2006	10.3162	10.4510	53,332
MFS®/Sun Life Government Securities Series S Class	04	2005	10.3297	10.3162	66,004
MFS®/Sun Life Government Securities Series S Class	04	2004	10.1900	10.3297	54,662
MFS®/Sun Life Government Securities Series S Class	04	2003	10.2176	10.1900	31,602
MFS®/Sun Life Government Securities Series S Class	04	2002	10.0000	10.2176	7,801
MFS®/Sun Life Government Securities Series S Class	05	2006	10.2984	10.4277	0
MFS®/Sun Life Government Securities Series S Class	05	2005	10.3171	10.2984	0
MFS®/Sun Life Government Securities Series S Class	05	2004	10.1828	10.3171	0
MFS®/Sun Life Government Securities Series S Class	05	2003	10.2155	10.1828	0
MFS®/Sun Life Government Securities Series S Class	05	2002	10.0000	10.2155	0
MFS®/Sun Life Government Securities Series S Class	06	2006	10.2447	10.3573	2,605
MFS®/Sun Life Government Securities Series S Class	06	2005	10.2789	10.2447	4,011
MFS®/Sun Life Government Securities Series S Class	06	2004	10.1608	10.2789	6,966
MFS®/Sun Life Government Securities Series S Class	06	2003	10.2092	10.1608	10,805
MFS®/Sun Life Government Securities Series S Class	06	2002	10.0000	10.2092	1,367
MFS®/Sun Life High Yield Series S Class	01	2006	13.4905	14.5937	102,111
MFS®/Sun Life High Yield Series S Class	01	2005	13.4626	13.4905	168,466
MFS®/Sun Life High Yield Series S Class	01	2004	12.5227	13.4626	181,013
MFS®/Sun Life High Yield Series S Class	01	2003	10.5101	12.5227	274,971
MFS®/Sun Life High Yield Series S Class	01	2002	10.0000	10.5101	23,137
MFS®/Sun Life High Yield Series S Class	02	2006	13.3973	14.4635	194,862
MFS®/Sun Life High Yield Series S Class	02	2005	13.3968	13.3973	149,258
MFS®/Sun Life High Yield Series S Class	02	2004	12.4869	13.3968	170,125
MFS®/Sun Life High Yield Series S Class	02	2003	10.5015	12.4869	269,802
MFS®/Sun Life High Yield Series S Class	02	2002	10.0000	10.5015	16,012
MFS®/Sun Life High Yield Series S Class	03	2006	13.3740	14.4310	0
MFS®/Sun Life High Yield Series S Class	03	2005	13.3803	13.3740	241
MFS®/Sun Life High Yield Series S Class	03	2004	12.4780	13.3803	281
MFS®/Sun Life High Yield Series S Class	03	2003	10.4993	12.4780	263
MFS®/Sun Life High Yield Series S Class	03	2002	10.0000	10.4993	0
MFS®/Sun Life High Yield Series S Class	04	2006	13.3044	14.3340	45,794
MFS®/Sun Life High Yield Series S Class	04	2005	13.3310	13.3044	72,907
MFS®/Sun Life High Yield Series S Class	04	2004	12.4511	13.3310	97,254
MFS®/Sun Life High Yield Series S Class	04	2003	10.4928	12.4511	54,640
MFS®/Sun Life High Yield Series S Class	04	2002	10.0000	10.4928	17,616
MFS®/Sun Life High Yield Series S Class	05	2006	13.2814	14.3020	1,838
MFS®/Sun Life High Yield Series S Class	05	2005	13.3148	13.2814	2,943
MFS®/Sun Life High Yield Series S Class	05	2004	12.4422	13.3148	2,943
MFS®/Sun Life High Yield Series S Class	05	2003	10.4906	12.4422	7,762
MFS®/Sun Life High Yield Series S Class	05	2002	10.0000	10.4906	0
MFS®/Sun Life High Yield Series S Class	06	2006	13.2121	14.2056	6,847
MFS®/Sun Life High Yield Series S Class	06	2005	13.2656	13.2121	8,014
MFS®/Sun Life High Yield Series S Class	06	2004	12.4154	13.2656	8,643
MFS®/Sun Life High Yield Series S Class	06	2003	10.4841	12.4154	5,010
MFS®/Sun Life High Yield Series S Class	06	2002	10.0000	10.4841	0
MFS®/Sun Life Massachusetts Investors Growth Series S Class	01	2006	13.6094	14.3707	34,981
MFS®/Sun Life Massachusetts Investors Growth Series S Class	01	2005	13.2917	13.6094	34,190
MFS®/Sun Life Massachusetts Investors Growth Series S Class	01	2004	12.3652	13.2917	42,380
MFS®/Sun Life Massachusetts Investors Growth Series S Class	01	2003	10.2395	12.3652	18,285
MFS®/Sun Life Massachusetts Investors Growth Series S Class	01	2002	10.0000	10.2395	318
MFS®/Sun Life Massachusetts Investors Growth Series S Class	02	2006	13.5153	14.2424	41,924
MFS®/Sun Life Massachusetts Investors Growth Series S Class	02	2005	13.2267	13.5153	68,884
MFS®/Sun Life Massachusetts Investors Growth Series S Class	02	2004	12.3299	13.2267	38,343
MFS®/Sun Life Massachusetts Investors Growth Series S Class	02	2003	10.2311	12.3299	31,581
MFS®/Sun Life Massachusetts Investors Growth Series S Class	02	2002	10.0000	10.2311	0
MFS®/Sun Life Massachusetts Investors Growth Series S Class	03	2006	13.4918	14.2104	5,603
MFS®/Sun Life Massachusetts Investors Growth Series S Class	03	2005	13.2105	13.4918	5,274
MFS®/Sun Life Massachusetts Investors Growth Series S Class	03	2004	12.3210	13.2105	6,995
MFS®/Sun Life Massachusetts Investors Growth Series S Class	03	2003	10.2290	12.3210	3,438
MFS®/Sun Life Massachusetts Investors Growth Series S Class	03	2002	10.0000	10.2290	0
MFS®/Sun Life Massachusetts Investors Growth Series S Class	04	2006	13.4216	14.1148	15,023
MFS®/Sun Life Massachusetts Investors Growth Series S Class	04	2005	13.1618	13.4216	39,021
MFS®/Sun Life Massachusetts Investors Growth Series S Class	04	2004	12.2945	13.1618	36,051
MFS®/Sun Life Massachusetts Investors Growth Series S Class	04	2003	10.2226	12.2945	41,203
MFS®/Sun Life Massachusetts Investors Growth Series S Class	04	2002	10.0000	10.2226	1,007
MFS®/Sun Life Massachusetts Investors Growth Series S Class	05	2006	13.3984	14.0833	1,842
MFS®/Sun Life Massachusetts Investors Growth Series S Class	05	2005	13.1457	13.3984	3,192
MFS®/Sun Life Massachusetts Investors Growth Series S Class	05	2004	12.2857	13.1457	3,192
MFS®/Sun Life Massachusetts Investors Growth Series S Class	05	2003	10.2205	12.2857	9,930
MFS®/Sun Life Massachusetts Investors Growth Series S Class	05	2002	10.0000	10.2205	0
MFS®/Sun Life Massachusetts Investors Growth Series S Class	06	2006	13.3285	13.9884	933
MFS®/Sun Life Massachusetts Investors Growth Series S Class	06	2005	13.0972	13.3285	3,257
MFS®/Sun Life Massachusetts Investors Growth Series S Class	06	2004	12.2593	13.0972	3,257
MFS®/Sun Life Massachusetts Investors Growth Series S Class	06	2003	10.2141	12.2593	3,258
MFS®/Sun Life Massachusetts Investors Growth Series S Class	06	2002	10.0000	10.2141	0
MFS®/Sun Life Massachusetts Investors Trust Series S Class	01	2006	14.5741	16.1953	55,406
MFS®/Sun Life Massachusetts Investors Trust Series S Class	01	2005	13.8014	14.5741	46,620
MFS®/Sun Life Massachusetts Investors Trust Series S Class	01	2004	12.5656	13.8014	18,919
MFS®/Sun Life Massachusetts Investors Trust Series S Class	01	2003	10.4391	12.5656	22,859
MFS®/Sun Life Massachusetts Investors Trust Series S Class	01	2002	10.0000	10.4391	12,683
MFS®/Sun Life Massachusetts Investors Trust Series S Class	02	2006	14.4734	16.0507	160,342
MFS®/Sun Life Massachusetts Investors Trust Series S Class	02	2005	13.7339	14.4734	129,407
MFS®/Sun Life Massachusetts Investors Trust Series S Class	02	2004	12.5297	13.7339	24,113
MFS®/Sun Life Massachusetts Investors Trust Series S Class	02	2003	10.4305	12.5297	20,367
MFS®/Sun Life Massachusetts Investors Trust Series S Class	02	2002	10.0000	10.4305	600
MFS®/Sun Life Massachusetts Investors Trust Series S Class	03	2006	14.4482	16.0146	1,734
MFS®/Sun Life Massachusetts Investors Trust Series S Class	03	2005	13.7170	14.4482	1,865
MFS®/Sun Life Massachusetts Investors Trust Series S Class	03	2004	12.5207	13.7170	132
MFS®/Sun Life Massachusetts Investors Trust Series S Class	03	2003	10.4283	12.5207	132
MFS®/Sun Life Massachusetts Investors Trust Series S Class	03	2002	10.0000	10.4283	0
MFS®/Sun Life Massachusetts Investors Trust Series S Class	04	2006	14.3730	15.9069	33,691
MFS®/Sun Life Massachusetts Investors Trust Series S Class	04	2005	13.6665	14.3730	35,677
MFS®/Sun Life Massachusetts Investors Trust Series S Class	04	2004	12.4937	13.6665	11,814
MFS®/Sun Life Massachusetts Investors Trust Series S Class	04	2003	10.4218	12.4937	16,075
MFS®/Sun Life Massachusetts Investors Trust Series S Class	04	2002	10.0000	10.4218	7,502
MFS®/Sun Life Massachusetts Investors Trust Series S Class	05	2006	14.3482	15.8715	0
MFS®/Sun Life Massachusetts Investors Trust Series S Class	05	2005	13.6498	14.3482	605
MFS®/Sun Life Massachusetts Investors Trust Series S Class	05	2004	12.4848	13.6498	605
MFS®/Sun Life Massachusetts Investors Trust Series S Class	05	2003	10.4197	12.4848	605
MFS®/Sun Life Massachusetts Investors Trust Series S Class	05	2002	10.0000	10.4197	0
MFS®/Sun Life Massachusetts Investors Trust Series S Class	06	2006	14.2733	15.7645	518
MFS®/Sun Life Massachusetts Investors Trust Series S Class	06	2005	13.5994	14.2733	547
MFS®/Sun Life Massachusetts Investors Trust Series S Class	06	2004	12.4579	13.5994	0
MFS®/Sun Life Massachusetts Investors Trust Series S Class	06	2003	10.4132	12.4579	5,012
MFS®/Sun Life Massachusetts Investors Trust Series S Class	06	2002	10.0000	10.4132	0
MFS®/Sun Life Mid Cap Growth Series S Class	01	2006	16.3285	16.4041	4,686
MFS®/Sun Life Mid Cap Growth Series S Class	01	2005	16.1612	16.3285	5,132
MFS®/Sun Life Mid Cap Growth Series S Class	01	2004	14.3862	16.1612	6,139
MFS®/Sun Life Mid Cap Growth Series S Class	01	2003	10.6565	14.3862	5,933
MFS®/Sun Life Mid Cap Growth Series S Class	01	2002	10.0000	10.6565	630
MFS®/Sun Life Mid Cap Growth Series S Class	02	2006	16.2157	16.2577	19,048
MFS®/Sun Life Mid Cap Growth Series S Class	02	2005	16.0821	16.2157	20,353
MFS®/Sun Life Mid Cap Growth Series S Class	02	2004	14.3451	16.0821	24,160
MFS®/Sun Life Mid Cap Growth Series S Class	02	2003	10.6477	14.3451	20,865
MFS®/Sun Life Mid Cap Growth Series S Class	02	2002	10.0000	10.6477	292
MFS®/Sun Life Mid Cap Growth Series S Class	03	2006	16.1876	16.2212	2,081
MFS®/Sun Life Mid Cap Growth Series S Class	03	2005	16.0624	16.1876	1,714
MFS®/Sun Life Mid Cap Growth Series S Class	03	2004	14.3349	16.0624	1,675
MFS®/Sun Life Mid Cap Growth Series S Class	03	2003	10.6455	14.3349	1,415
MFS®/Sun Life Mid Cap Growth Series S Class	03	2002	10.0000	10.6455	0
MFS®/Sun Life Mid Cap Growth Series S Class	04	2006	16.1033	16.1120	7,176
MFS®/Sun Life Mid Cap Growth Series S Class	04	2005	16.0032	16.1033	6,689
MFS®/Sun Life Mid Cap Growth Series S Class	04	2004	14.3040	16.0032	7,717
MFS®/Sun Life Mid Cap Growth Series S Class	04	2003	10.6389	14.3040	7,698
MFS®/Sun Life Mid Cap Growth Series S Class	04	2002	10.0000	10.6389	3,306
MFS®/Sun Life Mid Cap Growth Series S Class	05	2006	16.0755	16.0761	0
MFS®/Sun Life Mid Cap Growth Series S Class	05	2005	15.9837	16.0755	0
MFS®/Sun Life Mid Cap Growth Series S Class	05	2004	14.2938	15.9837	0
MFS®/Sun Life Mid Cap Growth Series S Class	05	2003	10.6367	14.2938	0
MFS®/Sun Life Mid Cap Growth Series S Class	05	2002	10.0000	10.6367	0
MFS®/Sun Life Mid Cap Growth Series S Class	06	2006	15.9916	15.9677	0
MFS®/Sun Life Mid Cap Growth Series S Class	06	2005	15.9246	15.9916	0
MFS®/Sun Life Mid Cap Growth Series S Class	06	2004	14.2630	15.9246	0
MFS®/Sun Life Mid Cap Growth Series S Class	06	2003	10.6301	14.2630	0
MFS®/Sun Life Mid Cap Growth Series S Class	06	2002	10.0000	10.6301	0
MFS®/Sun Life Mid Cap Value Series S Class	01	2006	16.9990	18.5508	1,732
MFS®/Sun Life Mid Cap Value Series S Class	01	2005	16.1004	16.9990	2,505
MFS®/Sun Life Mid Cap Value Series S Class	01	2004	13.4533	16.1004	3,097
MFS®/Sun Life Mid Cap Value Series S Class	01	2003	10.3755	13.4533	3,152
MFS®/Sun Life Mid Cap Value Series S Class	01	2002	10.0000	10.3755	0
MFS®/Sun Life Mid Cap Value Series S Class	02	2006	16.8816	18.3853	14,581
MFS®/Sun Life Mid Cap Value Series S Class	02	2005	16.0216	16.8816	17,112
MFS®/Sun Life Mid Cap Value Series S Class	02	2004	13.4148	16.0216	18,128
MFS®/Sun Life Mid Cap Value Series S Class	02	2003	10.3669	13.4148	21,086
MFS®/Sun Life Mid Cap Value Series S Class	02	2002	10.0000	10.3669	0
MFS®/Sun Life Mid Cap Value Series S Class	03	2006	16.8522	18.3440	0
MFS®/Sun Life Mid Cap Value Series S Class	03	2005	16.0019	16.8522	0
MFS®/Sun Life Mid Cap Value Series S Class	03	2004	13.4052	16.0019	74
MFS®/Sun Life Mid Cap Value Series S Class	03	2003	10.3648	13.4052	41
MFS®/Sun Life Mid Cap Value Series S Class	03	2002	10.0000	10.3648	0
MFS®/Sun Life Mid Cap Value Series S Class	04	2006	16.7645	18.2206	982
MFS®/Sun Life Mid Cap Value Series S Class	04	2005	15.9430	16.7645	4,432
MFS®/Sun Life Mid Cap Value Series S Class	04	2004	13.3764	15.9430	3,011
MFS®/Sun Life Mid Cap Value Series S Class	04	2003	10.3583	13.3764	1,554
MFS®/Sun Life Mid Cap Value Series S Class	04	2002	10.0000	10.3583	0
MFS®/Sun Life Mid Cap Value Series S Class	05	2006	16.7356	18.1800	0
MFS®/Sun Life Mid Cap Value Series S Class	05	2005	15.9235	16.7356	0
MFS®/Sun Life Mid Cap Value Series S Class	05	2004	13.3668	15.9235	0
MFS®/Sun Life Mid Cap Value Series S Class	05	2003	10.3562	13.3668	0
MFS®/Sun Life Mid Cap Value Series S Class	05	2002	10.0000	10.3562	0
MFS®/Sun Life Mid Cap Value Series S Class	06	2006	16.6483	18.0575	414
MFS®/Sun Life Mid Cap Value Series S Class	06	2005	15.8647	16.6483	415
MFS®/Sun Life Mid Cap Value Series S Class	06	2004	13.3380	15.8647	415
MFS®/Sun Life Mid Cap Value Series S Class	06	2003	10.3497	13.3380	0
MFS®/Sun Life Mid Cap Value Series S Class	06	2002	10.0000	10.3497	0
MFS®/Sun Life Money Market Series S Class	01	2006	9.7933	10.0445	338,821
MFS®/Sun Life Money Market Series S Class	01	2005	9.7227	9.7933	219,956
MFS®/Sun Life Money Market Series S Class	01	2004	9.8348	9.7227	208,258
MFS®/Sun Life Money Market Series S Class	01	2003	9.9672	9.8348	84,153
MFS®/Sun Life Money Market Series S Class	01	2002	10.0000	9.9672	142,702
MFS®/Sun Life Money Market Series S Class	02	2006	9.7256	9.9548	547,851
MFS®/Sun Life Money Market Series S Class	02	2005	9.6751	9.7256	379,920
MFS®/Sun Life Money Market Series S Class	02	2004	9.8067	9.6751	248,174
MFS®/Sun Life Money Market Series S Class	02	2003	9.9589	9.8067	164,065
MFS®/Sun Life Money Market Series S Class	02	2002	10.0000	9.9589	4,601
MFS®/Sun Life Money Market Series S Class	03	2006	9.7087	9.9324	0
MFS®/Sun Life Money Market Series S Class	03	2005	9.6632	9.7087	0
MFS®/Sun Life Money Market Series S Class	03	2004	9.7996	9.6632	0
MFS®/Sun Life Money Market Series S Class	03	2003	9.9569	9.7996	0
MFS®/Sun Life Money Market Series S Class	03	2002	10.0000	9.9569	0
MFS®/Sun Life Money Market Series S Class	04	2006	9.6581	9.8656	89,244
MFS®/Sun Life Money Market Series S Class	04	2005	9.6276	9.6581	28,043
MFS®/Sun Life Money Market Series S Class	04	2004	9.7785	9.6276	9,877
MFS®/Sun Life Money Market Series S Class	04	2003	9.9507	9.7785	34,008
MFS®/Sun Life Money Market Series S Class	04	2002	10.0000	9.9507	5,818
MFS®/Sun Life Money Market Series S Class	05	2006	9.6415	9.8436	0
MFS®/Sun Life Money Market Series S Class	05	2005	9.6158	9.6415	0
MFS®/Sun Life Money Market Series S Class	05	2004	9.7716	9.6158	0
MFS®/Sun Life Money Market Series S Class	05	2003	9.9486	9.7716	0
MFS®/Sun Life Money Market Series S Class	05	2002	10.0000	9.9486	0
MFS®/Sun Life Money Market Series S Class	06	2006	9.5911	9.7772	1,191
MFS®/Sun Life Money Market Series S Class	06	2005	9.5803	9.5911	808
MFS®/Sun Life Money Market Series S Class	06	2004	9.7505	9.5803	653
MFS®/Sun Life Money Market Series S Class	06	2003	9.9425	9.7505	0
MFS®/Sun Life Money Market Series S Class	06	2002	10.0000	9.9425	0
MFS®/Sun Life New Discovery Series S Class	01	2006	14.8399	16.4696	27,752
MFS®/Sun Life New Discovery Series S Class	01	2005	14.3829	14.8399	24,170
MFS®/Sun Life New Discovery Series S Class	01	2004	13.6474	14.3829	14,335
MFS®/Sun Life New Discovery Series S Class	01	2003	10.2829	13.6474	6,783
MFS®/Sun Life New Discovery Series S Class	01	2002	10.0000	10.2829	377
MFS®/Sun Life New Discovery Series S Class	02	2006	14.7374	16.3226	73,400
MFS®/Sun Life New Discovery Series S Class	02	2005	14.3126	14.7374	63,637
MFS®/Sun Life New Discovery Series S Class	02	2004	13.6085	14.3126	31,491
MFS®/Sun Life New Discovery Series S Class	02	2003	10.2744	13.6085	4,144
MFS®/Sun Life New Discovery Series S Class	02	2002	10.0000	10.2744	305
MFS®/Sun Life New Discovery Series S Class	03	2006	14.7118	16.2860	0
MFS®/Sun Life New Discovery Series S Class	03	2005	14.2950	14.7118	161
MFS®/Sun Life New Discovery Series S Class	03	2004	13.5987	14.2950	764
MFS®/Sun Life New Discovery Series S Class	03	2003	10.2723	13.5987	161
MFS®/Sun Life New Discovery Series S Class	03	2002	10.0000	10.2723	0
MFS®/Sun Life New Discovery Series S Class	04	2006	14.6352	16.1764	13,811
MFS®/Sun Life New Discovery Series S Class	04	2005	14.2423	14.6352	18,321
MFS®/Sun Life New Discovery Series S Class	04	2004	13.5695	14.2423	8,813
MFS®/Sun Life New Discovery Series S Class	04	2003	10.2659	13.5695	1,342
MFS®/Sun Life New Discovery Series S Class	04	2002	10.0000	10.2659	0
MFS®/Sun Life New Discovery Series S Class	05	2006	14.6099	16.1403	0
MFS®/Sun Life New Discovery Series S Class	05	2005	14.2249	14.6099	738
MFS®/Sun Life New Discovery Series S Class	05	2004	13.5598	14.2249	738
MFS®/Sun Life New Discovery Series S Class	05	2003	10.2638	13.5598	738
MFS®/Sun Life New Discovery Series S Class	05	2002	10.0000	10.2638	0
MFS®/Sun Life New Discovery Series S Class	06	2006	14.5337	16.0315	1,439
MFS®/Sun Life New Discovery Series S Class	06	2005	14.1724	14.5337	243
MFS®/Sun Life New Discovery Series S Class	06	2004	13.5306	14.1724	232
MFS®/Sun Life New Discovery Series S Class	06	2003	10.2574	13.5306	0
MFS®/Sun Life New Discovery Series S Class	06	2002	10.0000	10.2574	0
MFS®/Sun Life Research International Series S Class	01	2006	18.0067	22.5258	43,746
MFS®/Sun Life Research International Series S Class	01	2005	15.7645	18.0067	33,687
MFS®/Sun Life Research International Series S Class	01	2004	13.2587	15.7645	33,061
MFS®/Sun Life Research International Series S Class	01	2003	10.1103	13.2587	27,518
MFS®/Sun Life Research International Series S Class	01	2002	10.0000	10.1103	49,179
MFS®/Sun Life Research International Series S Class	02	2006	17.8823	22.3248	50,892
MFS®/Sun Life Research International Series S Class	02	2005	15.6874	17.8823	45,265
MFS®/Sun Life Research International Series S Class	02	2004	13.2208	15.6874	24,730
MFS®/Sun Life Research International Series S Class	02	2003	10.1020	13.2208	11,220
MFS®/Sun Life Research International Series S Class	02	2002	10.0000	10.1020	329
MFS®/Sun Life Research International Series S Class	03	2006	17.8512	22.2746	8,748
MFS®/Sun Life Research International Series S Class	03	2005	15.6681	17.8512	7,304
MFS®/Sun Life Research International Series S Class	03	2004	13.2113	15.6681	4,546
MFS®/Sun Life Research International Series S Class	03	2003	10.0999	13.2113	2,670
MFS®/Sun Life Research International Series S Class	03	2002	10.0000	10.0999	0
MFS®/Sun Life Research International Series S Class	04	2006	17.7583	22.1248	41,447
MFS®/Sun Life Research International Series S Class	04	2005	15.6104	17.7583	40,584
MFS®/Sun Life Research International Series S Class	04	2004	13.1829	15.6104	33,639
MFS®/Sun Life Research International Series S Class	04	2003	10.0936	13.1829	18,443
MFS®/Sun Life Research International Series S Class	04	2002	10.0000	10.0936	1,968
MFS®/Sun Life Research International Series S Class	05	2006	17.7276	22.0755	2,087
MFS®/Sun Life Research International Series S Class	05	2005	15.5913	17.7276	941
MFS®/Sun Life Research International Series S Class	05	2004	13.1735	15.5913	941
MFS®/Sun Life Research International Series S Class	05	2003	10.0915	13.1735	0
MFS®/Sun Life Research International Series S Class	05	2002	10.0000	10.0915	0
MFS®/Sun Life Research International Series S Class	06	2006	17.6352	21.9267	2,758
MFS®/Sun Life Research International Series S Class	06	2005	15.5338	17.6352	0
MFS®/Sun Life Research International Series S Class	06	2004	13.1451	15.5338	0
MFS®/Sun Life Research International Series S Class	06	2003	10.0852	13.1451	0
MFS®/Sun Life Research International Series S Class	06	2002	10.0000	10.0852	0
MFS®/Sun Life Research Series S Class	01	2006	15.3824	16.6822	11,037
MFS®/Sun Life Research Series S Class	01	2005	14.5277	15.3824	11,226
MFS®/Sun Life Research Series S Class	01	2004	12.7919	14.5277	9,552
MFS®/Sun Life Research Series S Class	01	2003	10.4093	12.7919	7,237
MFS®/Sun Life Research Series S Class	01	2002	10.0000	10.4093	0
MFS®/Sun Life Research Series S Class	02	2006	15.2762	16.5333	11,674
MFS®/Sun Life Research Series S Class	02	2005	14.4567	15.2762	12,489
MFS®/Sun Life Research Series S Class	02	2004	12.7553	14.4567	10,214
MFS®/Sun Life Research Series S Class	02	2003	10.4007	12.7553	3,475
MFS®/Sun Life Research Series S Class	02	2002	10.0000	10.4007	0
MFS®/Sun Life Research Series S Class	03	2006	15.2496	16.4961	0
MFS®/Sun Life Research Series S Class	03	2005	14.4389	15.2496	265
MFS®/Sun Life Research Series S Class	03	2004	12.7462	14.4389	265
MFS®/Sun Life Research Series S Class	03	2003	10.3986	12.7462	266
MFS®/Sun Life Research Series S Class	03	2002	10.0000	10.3986	0
MFS®/Sun Life Research Series S Class	04	2006	15.1702	16.3852	9,430
MFS®/Sun Life Research Series S Class	04	2005	14.3857	15.1702	14,227
MFS®/Sun Life Research Series S Class	04	2004	12.7188	14.3857	9,226
MFS®/Sun Life Research Series S Class	04	2003	10.3921	12.7188	10,236
MFS®/Sun Life Research Series S Class	04	2002	10.0000	10.3921	0
MFS®/Sun Life Research Series S Class	05	2006	15.1441	16.3487	1,225
MFS®/Sun Life Research Series S Class	05	2005	14.3682	15.1441	4,638
MFS®/Sun Life Research Series S Class	05	2004	12.7097	14.3682	4,638
MFS®/Sun Life Research Series S Class	05	2003	10.3899	12.7097	4,724
MFS®/Sun Life Research Series S Class	05	2002	10.0000	10.3899	0
MFS®/Sun Life Research Series S Class	06	2006	15.0650	16.2384	0
MFS®/Sun Life Research Series S Class	06	2005	14.3151	15.0650	0
MFS®/Sun Life Research Series S Class	06	2004	12.6823	14.3151	0
MFS®/Sun Life Research Series S Class	06	2003	10.3835	12.6823	0
MFS®/Sun Life Research Series S Class	06	2002	10.0000	10.3835	0
MFS®/Sun Life Strategic Growth Series S Class	01	2006	14.4674	15.1283	9,902
MFS®/Sun Life Strategic Growth Series S Class	01	2005	14.5464	14.4674	13,906
MFS®/Sun Life Strategic Growth Series S Class	01	2004	13.8847	14.5464	12,622
MFS®/Sun Life Strategic Growth Series S Class	01	2003	11.1176	13.8847	11,395
MFS®/Sun Life Strategic Growth Series S Class	01	2002	10.0000	11.1176	1,091
MFS®/Sun Life Strategic Growth Series S Class	02	2006	14.3674	14.9933	46,108
MFS®/Sun Life Strategic Growth Series S Class	02	2005	14.4752	14.3674	40,800
MFS®/Sun Life Strategic Growth Series S Class	02	2004	13.8450	14.4752	34,060
MFS®/Sun Life Strategic Growth Series S Class	02	2003	11.1084	13.8450	26,490
MFS®/Sun Life Strategic Growth Series S Class	02	2002	10.0000	11.1084	0
MFS®/Sun Life Strategic Growth Series S Class	03	2006	14.3425	14.9596	0
MFS®/Sun Life Strategic Growth Series S Class	03	2005	14.4575	14.3425	0
MFS®/Sun Life Strategic Growth Series S Class	03	2004	13.8351	14.4575	2,762
MFS®/Sun Life Strategic Growth Series S Class	03	2003	11.1061	13.8351	57
MFS®/Sun Life Strategic Growth Series S Class	03	2002	10.0000	11.1061	0
MFS®/Sun Life Strategic Growth Series S Class	04	2006	14.2678	14.8590	4,960
MFS®/Sun Life Strategic Growth Series S Class	04	2005	14.4042	14.2678	14,052
MFS®/Sun Life Strategic Growth Series S Class	04	2004	13.8053	14.4042	17,148
MFS®/Sun Life Strategic Growth Series S Class	04	2003	11.0991	13.8053	11,159
MFS®/Sun Life Strategic Growth Series S Class	04	2002	10.0000	11.0991	0
MFS®/Sun Life Strategic Growth Series S Class	05	2006	14.2432	14.8259	0
MFS®/Sun Life Strategic Growth Series S Class	05	2005	14.3866	14.2432	0
MFS®/Sun Life Strategic Growth Series S Class	05	2004	13.7955	14.3866	0
MFS®/Sun Life Strategic Growth Series S Class	05	2003	11.0969	13.7955	0
MFS®/Sun Life Strategic Growth Series S Class	05	2002	10.0000	11.0969	0
MFS®/Sun Life Strategic Growth Series S Class	06	2006	14.1689	14.7259	0
MFS®/Sun Life Strategic Growth Series S Class	06	2005	14.3335	14.1689	0
MFS®/Sun Life Strategic Growth Series S Class	06	2004	13.7657	14.3335	0
MFS®/Sun Life Strategic Growth Series S Class	06	2003	11.0899	13.7657	0
MFS®/Sun Life Strategic Growth Series S Class	06	2002	10.0000	11.0899	0
MFS®/Sun Life Strategic Income Series S Class	01	2006	12.2188	12.7865	10,217
MFS®/Sun Life Strategic Income Series S Class	01	2005	12.2328	12.2188	12,424
MFS®/Sun Life Strategic Income Series S Class	01	2004	11.5413	12.2328	20,037
MFS®/Sun Life Strategic Income Series S Class	01	2003	10.4384	11.5413	37,633
MFS®/Sun Life Strategic Income Series S Class	01	2002	10.0000	10.4384	0
MFS®/Sun Life Strategic Income Series S Class	02	2006	12.1344	12.6724	2,114
MFS®/Sun Life Strategic Income Series S Class	02	2005	12.1730	12.1344	2,077
MFS®/Sun Life Strategic Income Series S Class	02	2004	11.5083	12.1730	31,294
MFS®/Sun Life Strategic Income Series S Class	02	2003	10.4298	11.5083	22,435
MFS®/Sun Life Strategic Income Series S Class	02	2002	10.0000	10.4298	2,939
MFS®/Sun Life Strategic Income Series S Class	03	2006	12.1133	12.6439	0
MFS®/Sun Life Strategic Income Series S Class	03	2005	12.1580	12.1133	0
MFS®/Sun Life Strategic Income Series S Class	03	2004	11.5001	12.1580	0
MFS®/Sun Life Strategic Income Series S Class	03	2003	10.4277	11.5001	0
MFS®/Sun Life Strategic Income Series S Class	03	2002	10.0000	10.4277	0
MFS®/Sun Life Strategic Income Series S Class	04	2006	12.0502	12.5588	1,898
MFS®/Sun Life Strategic Income Series S Class	04	2005	12.1132	12.0502	1,900
MFS®/Sun Life Strategic Income Series S Class	04	2004	11.4753	12.1132	2,271
MFS®/Sun Life Strategic Income Series S Class	04	2003	10.4212	11.4753	3,185
MFS®/Sun Life Strategic Income Series S Class	04	2002	10.0000	10.4212	0
MFS®/Sun Life Strategic Income Series S Class	05	2006	12.0294	12.5308	0
MFS®/Sun Life Strategic Income Series S Class	05	2005	12.0984	12.0294	0
MFS®/Sun Life Strategic Income Series S Class	05	2004	11.4672	12.0984	0
MFS®/Sun Life Strategic Income Series S Class	05	2003	10.4190	11.4672	0
MFS®/Sun Life Strategic Income Series S Class	05	2002	10.0000	10.4190	0
MFS®/Sun Life Strategic Income Series S Class	06	2006	11.9666	12.4464	487
MFS®/Sun Life Strategic Income Series S Class	06	2005	12.0538	11.9666	487
MFS®/Sun Life Strategic Income Series S Class	06	2004	11.4424	12.0538	488
MFS®/Sun Life Strategic Income Series S Class	06	2003	10.4126	11.4424	0
MFS®/Sun Life Strategic Income Series S Class	06	2002	10.0000	10.4126	0
MFS®/Sun Life Strategic Value Series S Class	01	2006	15.3280	17.1663	572
MFS®/Sun Life Strategic Value Series S Class	01	2005	15.7055	15.3280	574
MFS®/Sun Life Strategic Value Series S Class	01	2004	13.5669	15.7055	575
MFS®/Sun Life Strategic Value Series S Class	01	2003	10.8659	13.5669	0
MFS®/Sun Life Strategic Value Series S Class	01	2002	10.0000	10.8659	0
MFS®/Sun Life Strategic Value Series S Class	02	2006	15.2221	17.0131	6,473
MFS®/Sun Life Strategic Value Series S Class	02	2005	15.6286	15.2221	19,003
MFS®/Sun Life Strategic Value Series S Class	02	2004	13.5282	15.6286	20,851
MFS®/Sun Life Strategic Value Series S Class	02	2003	10.8570	13.5282	15,722
MFS®/Sun Life Strategic Value Series S Class	02	2002	10.0000	10.8570	1,242
MFS®/Sun Life Strategic Value Series S Class	03	2006	15.1956	16.9748	2,806
MFS®/Sun Life Strategic Value Series S Class	03	2005	15.6094	15.1956	2,559
MFS®/Sun Life Strategic Value Series S Class	03	2004	13.5185	15.6094	1,961
MFS®/Sun Life Strategic Value Series S Class	03	2003	10.8547	13.5185	1,679
MFS®/Sun Life Strategic Value Series S Class	03	2002	10.0000	10.8547	0
MFS®/Sun Life Strategic Value Series S Class	04	2006	15.1165	16.8607	5,151
MFS®/Sun Life Strategic Value Series S Class	04	2005	15.5519	15.1165	8,940
MFS®/Sun Life Strategic Value Series S Class	04	2004	13.4894	15.5519	12,935
MFS®/Sun Life Strategic Value Series S Class	04	2003	10.8480	13.4894	13,935
MFS®/Sun Life Strategic Value Series S Class	04	2002	10.0000	10.8480	4,142
MFS®/Sun Life Strategic Value Series S Class	05	2006	15.0904	16.8231	0
MFS®/Sun Life Strategic Value Series S Class	05	2005	15.5330	15.0904	627
MFS®/Sun Life Strategic Value Series S Class	05	2004	13.4798	15.5330	627
MFS®/Sun Life Strategic Value Series S Class	05	2003	10.8457	13.4798	3,605
MFS®/Sun Life Strategic Value Series S Class	05	2002	10.0000	10.8457	0
MFS®/Sun Life Strategic Value Series S Class	06	2006	15.0117	16.7097	0
MFS®/Sun Life Strategic Value Series S Class	06	2005	15.4756	15.0117	244
MFS®/Sun Life Strategic Value Series S Class	06	2004	13.4507	15.4756	244
MFS®/Sun Life Strategic Value Series S Class	06	2003	10.8390	13.4507	244
MFS®/Sun Life Strategic Value Series S Class	06	2002	10.0000	10.8390	0
MFS®/Sun Life Total Return Series S Class	01	2006	13.3335	14.6684	396,067
MFS®/Sun Life Total Return Series S Class	01	2005	13.1925	13.3335	472,908
MFS®/Sun Life Total Return Series S Class	01	2004	12.0755	13.1925	377,859
MFS®/Sun Life Total Return Series S Class	01	2003	10.5144	12.0755	118,679
MFS®/Sun Life Total Return Series S Class	01	2002	10.0000	10.5144	17,815
MFS®/Sun Life Total Return Series S Class	02	2006	13.2414	14.5375	785,153
MFS®/Sun Life Total Return Series S Class	02	2005	13.1280	13.2414	615,097
MFS®/Sun Life Total Return Series S Class	02	2004	12.0410	13.1280	422,263
MFS®/Sun Life Total Return Series S Class	02	2003	10.5058	12.0410	166,941
MFS®/Sun Life Total Return Series S Class	02	2002	10.0000	10.5058	3,901
MFS®/Sun Life Total Return Series S Class	03	2006	13.2184	14.5048	4,849
MFS®/Sun Life Total Return Series S Class	03	2005	13.1118	13.2184	2,058
MFS®/Sun Life Total Return Series S Class	03	2004	12.0323	13.1118	6,535
MFS®/Sun Life Total Return Series S Class	03	2003	10.5036	12.0323	3,437
MFS®/Sun Life Total Return Series S Class	03	2002	10.0000	10.5036	0
MFS®/Sun Life Total Return Series S Class	04	2006	13.1496	14.4073	206,073
MFS®/Sun Life Total Return Series S Class	04	2005	13.0635	13.1496	178,375
MFS®/Sun Life Total Return Series S Class	04	2004	12.0065	13.0635	114,522
MFS®/Sun Life Total Return Series S Class	04	2003	10.4971	12.0065	32,114
MFS®/Sun Life Total Return Series S Class	04	2002	10.0000	10.4971	7,446
MFS®/Sun Life Total Return Series S Class	05	2006	13.1269	14.3751	1,293
MFS®/Sun Life Total Return Series S Class	05	2005	13.0476	13.1269	1,875
MFS®/Sun Life Total Return Series S Class	05	2004	11.9979	13.0476	1,875
MFS®/Sun Life Total Return Series S Class	05	2003	10.4949	11.9979	1,926
MFS®/Sun Life Total Return Series S Class	05	2002	10.0000	10.4949	0
MFS®/Sun Life Total Return Series S Class	06	2006	13.0584	14.2782	18,073
MFS®/Sun Life Total Return Series S Class	06	2005	12.9994	13.0584	15,047
MFS®/Sun Life Total Return Series S Class	06	2004	11.9720	12.9994	12,429
MFS®/Sun Life Total Return Series S Class	06	2003	10.4884	11.9720	10,420
MFS®/Sun Life Total Return Series S Class	06	2002	10.0000	10.4884	561
MFS®/Sun Life Utilities Series S Class	01	2006	21.7512	28.2168	33,212
MFS®/Sun Life Utilities Series S Class	01	2005	18.9157	21.7512	25,453
MFS®/Sun Life Utilities Series S Class	01	2004	14.8010	18.9157	8,515
MFS®/Sun Life Utilities Series S Class	01	2003	11.0687	14.8010	3,166
MFS®/Sun Life Utilities Series S Class	01	2002	10.0000	11.0687	0
MFS®/Sun Life Utilities Series S Class	02	2006	21.6010	27.9651	21,374
MFS®/Sun Life Utilities Series S Class	02	2005	18.8233	21.6010	13,330
MFS®/Sun Life Utilities Series S Class	02	2004	14.7588	18.8233	8,211
MFS®/Sun Life Utilities Series S Class	02	2003	11.0596	14.7588	5,452
MFS®/Sun Life Utilities Series S Class	02	2002	10.0000	11.0596	0
MFS®/Sun Life Utilities Series S Class	03	2006	21.5635	27.9023	1,219
MFS®/Sun Life Utilities Series S Class	03	2005	18.8002	21.5635	1,026
MFS®/Sun Life Utilities Series S Class	03	2004	14.7482	18.8002	0
MFS®/Sun Life Utilities Series S Class	03	2003	11.0573	14.7482	0
MFS®/Sun Life Utilities Series S Class	03	2002	10.0000	11.0573	0
MFS®/Sun Life Utilities Series S Class	04	2006	21.4513	27.7148	11,111
MFS®/Sun Life Utilities Series S Class	04	2005	18.7309	21.4513	6,985
MFS®/Sun Life Utilities Series S Class	04	2004	14.7165	18.7309	1,207
MFS®/Sun Life Utilities Series S Class	04	2003	11.0505	14.7165	1,707
MFS®/Sun Life Utilities Series S Class	04	2002	10.0000	11.0505	0
MFS®/Sun Life Utilities Series S Class	05	2006	21.4143	27.6530	0
MFS®/Sun Life Utilities Series S Class	05	2005	18.7081	21.4143	0
MFS®/Sun Life Utilities Series S Class	05	2004	14.7060	18.7081	0
MFS®/Sun Life Utilities Series S Class	05	2003	11.0482	14.7060	0
MFS®/Sun Life Utilities Series S Class	05	2002	10.0000	11.0482	0
MFS®/Sun Life Utilities Series S Class	06	2006	21.3026	27.4667	497
MFS®/Sun Life Utilities Series S Class	06	2005	18.6390	21.3026	55
MFS®/Sun Life Utilities Series S Class	06	2004	14.6743	18.6390	0
MFS®/Sun Life Utilities Series S Class	06	2003	11.0413	14.6743	0
MFS®/Sun Life Utilities Series S Class	06	2002	10.0000	11.0413	0
MFS®/Sun Life Value Series S Class	01	2006	15.2271	18.0616	44,909
MFS®/Sun Life Value Series S Class	01	2005	14.5659	15.2271	51,348
MFS®/Sun Life Value Series S Class	01	2004	12.8653	14.5659	39,154
MFS®/Sun Life Value Series S Class	01	2003	10.4628	12.8653	19,225
MFS®/Sun Life Value Series S Class	01	2002	10.0000	10.4628	281
MFS®/Sun Life Value Series S Class	02	2006	15.1219	17.9004	59,241
MFS®/Sun Life Value Series S Class	02	2005	14.4946	15.1219	43,102
MFS®/Sun Life Value Series S Class	02	2004	12.8285	14.4946	26,787
MFS®/Sun Life Value Series S Class	02	2003	10.4542	12.8285	14,312
MFS®/Sun Life Value Series S Class	02	2002	10.0000	10.4542	259
MFS®/Sun Life Value Series S Class	03	2006	15.0956	17.8602	1,317
MFS®/Sun Life Value Series S Class	03	2005	14.4768	15.0956	1,520
MFS®/Sun Life Value Series S Class	03	2004	12.8193	14.4768	2,122
MFS®/Sun Life Value Series S Class	03	2003	10.4520	12.8193	1,117
MFS®/Sun Life Value Series S Class	03	2002	10.0000	10.4520	0
MFS®/Sun Life Value Series S Class	04	2006	15.0170	17.7401	55,404
MFS®/Sun Life Value Series S Class	04	2005	14.4235	15.0170	53,803
MFS®/Sun Life Value Series S Class	04	2004	12.7917	14.4235	50,432
MFS®/Sun Life Value Series S Class	04	2003	10.4455	12.7917	32,084
MFS®/Sun Life Value Series S Class	04	2002	10.0000	10.4455	4,334
MFS®/Sun Life Value Series S Class	05	2006	14.9911	17.7005	589
MFS®/Sun Life Value Series S Class	05	2005	14.4059	14.9911	0
MFS®/Sun Life Value Series S Class	05	2004	12.7826	14.4059	0
MFS®/Sun Life Value Series S Class	05	2003	10.4433	12.7826	3,611
MFS®/Sun Life Value Series S Class	05	2002	10.0000	10.4433	0
MFS®/Sun Life Value Series S Class	06	2006	14.9129	17.5812	3,586
MFS®/Sun Life Value Series S Class	06	2005	14.3527	14.9129	2,320
MFS®/Sun Life Value Series S Class	06	2004	12.7550	14.3527	2,241
MFS®/Sun Life Value Series S Class	06	2003	10.4368	12.7550	2,241
MFS®/Sun Life Value Series S Class	06	2002	10.0000	10.4368	0
Mutual Shares Securities Fund, Class 2	01	2006	14.9993	17.4553	72,449
Mutual Shares Securities Fund, Class 2	01	2005	13.8012	14.9993	100,866
Mutual Shares Securities Fund, Class 2	01	2004	12.4658	13.8012	81,910
Mutual Shares Securities Fund, Class 2	01	2003	10.1330	12.4658	8,458
Mutual Shares Securities Fund, Class 2	01	2002	10.0000	10.1330	2,060
Mutual Shares Securities Fund, Class 2	02	2006	14.8957	17.2995	157,804
Mutual Shares Securities Fund, Class 2	02	2005	13.7337	14.8957	130,704
Mutual Shares Securities Fund, Class 2	02	2004	12.4302	13.7337	85,179
Mutual Shares Securities Fund, Class 2	02	2003	10.1246	12.4302	23,499
Mutual Shares Securities Fund, Class 2	02	2002	10.0000	10.1246	0
Mutual Shares Securities Fund, Class 2	03	2006	14.8698	17.2607	2,704
Mutual Shares Securities Fund, Class 2	03	2005	13.7168	14.8698	2,704
Mutual Shares Securities Fund, Class 2	03	2004	12.4213	13.7168	0
Mutual Shares Securities Fund, Class 2	03	2003	10.1225	12.4213	0
Mutual Shares Securities Fund, Class 2	03	2002	10.0000	10.1225	0
Mutual Shares Securities Fund, Class 2	04	2006	14.7924	17.1446	126,615
Mutual Shares Securities Fund, Class 2	04	2005	13.6663	14.7924	93,831
Mutual Shares Securities Fund, Class 2	04	2004	12.3946	13.6663	42,750
Mutual Shares Securities Fund, Class 2	04	2003	10.1162	12.3946	14,403
Mutual Shares Securities Fund, Class 2	04	2002	10.0000	10.1162	1,833
Mutual Shares Securities Fund, Class 2	05	2006	14.7668	17.1064	2,375
Mutual Shares Securities Fund, Class 2	05	2005	13.6496	14.7668	2,375
Mutual Shares Securities Fund, Class 2	05	2004	12.3857	13.6496	2,375
Mutual Shares Securities Fund, Class 2	05	2003	10.1141	12.3857	2,418
Mutual Shares Securities Fund, Class 2	05	2002	10.0000	10.1141	0
Mutual Shares Securities Fund, Class 2	06	2006	14.6898	16.9910	9,611
Mutual Shares Securities Fund, Class 2	06	2005	13.5992	14.6898	7,164
Mutual Shares Securities Fund, Class 2	06	2004	12.3590	13.5992	4,769
Mutual Shares Securities Fund, Class 2	06	2003	10.1078	12.3590	0
Mutual Shares Securities Fund, Class 2	06	2002	10.0000	10.1078	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	01	2006	15.0225	15.9022	42,784
Oppenheimer Capital Appreciation Fund/VA, Service Shares	01	2005	14.5729	15.0225	34,941
Oppenheimer Capital Appreciation Fund/VA, Service Shares	01	2004	13.9056	14.5729	43,121
Oppenheimer Capital Appreciation Fund/VA, Service Shares	01	2003	10.8241	13.9056	24,378
Oppenheimer Capital Appreciation Fund/VA, Service Shares	01	2002	10.0000	10.8241	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	02	2006	14.9187	15.7603	118,276
Oppenheimer Capital Appreciation Fund/VA, Service Shares	02	2005	14.5017	14.9187	70,337
Oppenheimer Capital Appreciation Fund/VA, Service Shares	02	2004	13.8659	14.5017	65,098
Oppenheimer Capital Appreciation Fund/VA, Service Shares	02	2003	10.8152	13.8659	32,421
Oppenheimer Capital Appreciation Fund/VA, Service Shares	02	2002	10.0000	10.8152	619
Oppenheimer Capital Appreciation Fund/VA, Service Shares	03	2006	14.8928	15.7249	2,353
Oppenheimer Capital Appreciation Fund/VA, Service Shares	03	2005	14.4838	14.8928	2,407
Oppenheimer Capital Appreciation Fund/VA, Service Shares	03	2004	13.8560	14.4838	2,626
Oppenheimer Capital Appreciation Fund/VA, Service Shares	03	2003	10.8129	13.8560	38
Oppenheimer Capital Appreciation Fund/VA, Service Shares	03	2002	10.0000	10.8129	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	04	2006	14.8153	15.6191	25,744
Oppenheimer Capital Appreciation Fund/VA, Service Shares	04	2005	14.4305	14.8153	26,718
Oppenheimer Capital Appreciation Fund/VA, Service Shares	04	2004	13.8261	14.4305	20,131
Oppenheimer Capital Appreciation Fund/VA, Service Shares	04	2003	10.8062	13.8261	3,866
Oppenheimer Capital Appreciation Fund/VA, Service Shares	04	2002	10.0000	10.8062	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	05	2006	14.7897	15.5843	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	05	2005	14.4129	14.7897	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	05	2004	13.8163	14.4129	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	05	2003	10.8040	13.8163	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	05	2002	10.0000	10.8040	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	06	2006	14.7125	15.4793	3,129
Oppenheimer Capital Appreciation Fund/VA, Service Shares	06	2005	14.3597	14.7125	2,291
Oppenheimer Capital Appreciation Fund/VA, Service Shares	06	2004	13.7865	14.3597	2,293
Oppenheimer Capital Appreciation Fund/VA, Service Shares	06	2003	10.7973	13.7865	0
Oppenheimer Capital Appreciation Fund/VA, Service Shares	06	2002	10.0000	10.7973	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	01	2006	13.7435	15.8564	38,033
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	01	2005	12.2570	13.7435	24,123
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	01	2004	10.4893	12.2570	6,316
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	01	2003	10.0000	10.4893	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	02	2006	13.6859	15.7579	70,081
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	02	2005	12.2305	13.6859	44,834
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	02	2004	10.4879	12.2305	9,872
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	02	2003	10.0000	10.4879	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	03	2006	13.6715	15.7333	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	03	2005	12.2238	13.6715	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	03	2004	10.4876	12.2238	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	03	2003	10.0000	10.4876	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	04	2006	13.6283	15.6597	34,840
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	04	2005	12.2039	13.6283	14,686
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	04	2004	10.4866	12.2039	11,586
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	04	2003	10.0000	10.4866	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	05	2006	13.6141	15.6355	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	05	2005	12.1973	13.6141	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	05	2004	10.4863	12.1973	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	05	2003	10.0000	10.4863	0
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	06	2006	13.5710	15.5621	3,276
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	06	2005	12.1773	13.5710	784
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	06	2004	10.4853	12.1773	664
SCSM Oppenheimer Global Securities Fund/VA, Service Shares	06	2003	10.0000	10.4853	0
Oppenheimer Main St. Fund®/VA, Service Shares	01	2006	14.0503	15.8506	107,269
Oppenheimer Main St. Fund®/VA, Service Shares	01	2005	13.5166	14.0503	94,763
Oppenheimer Main St. Fund®/VA, Service Shares	01	2004	12.5987	13.5166	55,706
Oppenheimer Main St. Fund®/VA, Service Shares	01	2003	10.1365	12.5987	10,585
Oppenheimer Main St. Fund®/VA, Service Shares	01	2002	10.0000	10.1365	0
Oppenheimer Main St. Fund®/VA, Service Shares	02	2006	13.9532	15.7091	332,959
Oppenheimer Main St. Fund®/VA, Service Shares	02	2005	13.4505	13.9532	261,446
Oppenheimer Main St. Fund®/VA, Service Shares	02	2004	12.5627	13.4505	124,534
Oppenheimer Main St. Fund®/VA, Service Shares	02	2003	10.1282	12.5627	21,636
Oppenheimer Main St. Fund®/VA, Service Shares	02	2002	10.0000	10.1282	263
Oppenheimer Main St. Fund®/VA, Service Shares	03	2006	13.9290	15.6738	0
Oppenheimer Main St. Fund®/VA, Service Shares	03	2005	13.4339	13.9290	0
Oppenheimer Main St. Fund®/VA, Service Shares	03	2004	12.5537	13.4339	2,248
Oppenheimer Main St. Fund®/VA, Service Shares	03	2003	10.1261	12.5537	0
Oppenheimer Main St. Fund®/VA, Service Shares	03	2002	10.0000	10.1261	0
Oppenheimer Main St. Fund®/VA, Service Shares	04	2006	13.8565	15.5684	62,086
Oppenheimer Main St. Fund®/VA, Service Shares	04	2005	13.3845	13.8565	63,687
Oppenheimer Main St. Fund®/VA, Service Shares	04	2004	12.5267	13.3845	17,991
Oppenheimer Main St. Fund®/VA, Service Shares	04	2003	10.1198	12.5267	850
Oppenheimer Main St. Fund®/VA, Service Shares	04	2002	10.0000	10.1198	0
Oppenheimer Main St. Fund®/VA, Service Shares	05	2006	13.8326	15.5337	0
Oppenheimer Main St. Fund®/VA, Service Shares	05	2005	13.3681	13.8326	0
Oppenheimer Main St. Fund®/VA, Service Shares	05	2004	12.5178	13.3681	0
Oppenheimer Main St. Fund®/VA, Service Shares	05	2003	10.1177	12.5178	0
Oppenheimer Main St. Fund®/VA, Service Shares	05	2002	10.0000	10.1177	0
Oppenheimer Main St. Fund®/VA, Service Shares	06	2006	13.7604	15.4290	2,870
Oppenheimer Main St. Fund®/VA, Service Shares	06	2005	13.3188	13.7604	1,237
Oppenheimer Main St. Fund®/VA, Service Shares	06	2004	12.4908	13.3188	1,265
Oppenheimer Main St. Fund®/VA, Service Shares	06	2003	10.1114	12.4908	0
Oppenheimer Main St. Fund®/VA, Service Shares	06	2002	10.0000	10.1114	0
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	01	2006	18.1233	20.4276	18,837
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	01	2005	16.8033	18.1233	16,837
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	01	2004	14.3435	16.8033	20,181
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	01	2003	10.1157	14.3435	10,139
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	01	2002	10.0000	10.1157	0
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	02	2006	17.9981	20.2453	43,802
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	02	2005	16.7211	17.9981	21,898
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	02	2004	14.3026	16.7211	16,558
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	02	2003	10.1074	14.3026	8,366
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	02	2002	10.0000	10.1074	506
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	03	2006	17.9669	20.1998	0
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	03	2005	16.7006	17.9669	4
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	03	2004	14.2923	16.7006	1,387
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	03	2003	10.1053	14.2923	0
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	03	2002	10.0000	10.1053	0
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	04	2006	17.8734	20.0641	19,282
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	04	2005	16.6391	17.8734	30,809
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	04	2004	14.2616	16.6391	30,297
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	04	2003	10.0990	14.2616	18,695
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	04	2002	10.0000	10.0990	4,603
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	05	2006	17.8425	20.0193	2,437
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	05	2005	16.6188	17.8425	2,437
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	05	2004	14.2514	16.6188	2,437
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	05	2003	10.0969	14.2514	4,156
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	05	2002	10.0000	10.0969	0
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	06	2006	17.7495	19.8844	646
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	06	2005	16.5575	17.7495	646
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	06	2004	14.2207	16.5575	646
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	06	2003	10.0906	14.2207	0
Oppenheimer Main St. Small Cap Fund/VA, Service Shares	06	2002	10.0000	10.0906	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	01	2006	18.0546	19.3950	16,372
PIMCO Emerging Markets Bond Portfolio, Admin. Class	01	2005	16.5782	18.0546	15,843
PIMCO Emerging Markets Bond Portfolio, Admin. Class	01	2004	15.0421	16.5782	3,677
PIMCO Emerging Markets Bond Portfolio, Admin. Class	01	2003	10.0000	15.0421	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	02	2006	17.9355	19.2279	13,398
PIMCO Emerging Markets Bond Portfolio, Admin. Class	02	2005	16.5023	17.9355	6,638
PIMCO Emerging Markets Bond Portfolio, Admin. Class	02	2004	15.0039	16.5023	1,167
PIMCO Emerging Markets Bond Portfolio, Admin. Class	02	2003	10.0000	15.0039	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	03	2006	17.9058	19.1862	2,348
PIMCO Emerging Markets Bond Portfolio, Admin. Class	03	2005	16.4833	17.9058	1,904
PIMCO Emerging Markets Bond Portfolio, Admin. Class	03	2004	14.9943	16.4833	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	03	2003	10.0000	14.9943	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	04	2006	17.8168	19.0617	26,745
PIMCO Emerging Markets Bond Portfolio, Admin. Class	04	2005	16.4265	17.8168	12,930
PIMCO Emerging Markets Bond Portfolio, Admin. Class	04	2004	14.9656	16.4265	3,954
PIMCO Emerging Markets Bond Portfolio, Admin. Class	04	2003	10.0000	14.9656	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	05	2006	17.7874	19.0207	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	05	2005	16.4077	17.7874	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	05	2004	14.9561	16.4077	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	05	2003	10.0000	14.9561	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	06	2006	17.6988	18.8969	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	06	2005	16.3510	17.6988	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	06	2004	14.9273	16.3510	0
PIMCO Emerging Markets Bond Portfolio, Admin. Class	06	2003	10.0000	14.9273	0
PIMCO Low Duration Portfolio, Admin. Class	01	2006	9.9483	10.1687	242,732
PIMCO Low Duration Portfolio, Admin. Class	01	2005	10.0184	9.9483	258,763
PIMCO Low Duration Portfolio, Admin. Class	01	2004	10.0070	10.0184	179,010
PIMCO Low Duration Portfolio, Admin. Class	01	2003	10.0000	10.0070	0
PIMCO Low Duration Portfolio, Admin. Class	02	2006	9.9066	10.1055	649,472
PIMCO Low Duration Portfolio, Admin. Class	02	2005	9.9967	9.9066	439,272
PIMCO Low Duration Portfolio, Admin. Class	02	2004	10.0057	9.9967	289,746
PIMCO Low Duration Portfolio, Admin. Class	02	2003	10.0000	10.0057	0
PIMCO Low Duration Portfolio, Admin. Class	03	2006	9.8962	10.0897	4,181
PIMCO Low Duration Portfolio, Admin. Class	03	2005	9.9912	9.8962	4,273
PIMCO Low Duration Portfolio, Admin. Class	03	2004	10.0054	9.9912	1,412
PIMCO Low Duration Portfolio, Admin. Class	03	2003	10.0000	10.0054	0
PIMCO Low Duration Portfolio, Admin. Class	04	2006	9.8649	10.0425	94,823
PIMCO Low Duration Portfolio, Admin. Class	04	2005	9.9749	9.8649	109,806
PIMCO Low Duration Portfolio, Admin. Class	04	2004	10.0044	9.9749	46,420
PIMCO Low Duration Portfolio, Admin. Class	04	2003	10.0000	10.0044	0
PIMCO Low Duration Portfolio, Admin. Class	05	2006	9.8546	10.0269	0
PIMCO Low Duration Portfolio, Admin. Class	05	2005	9.9695	9.8546	0
PIMCO Low Duration Portfolio, Admin. Class	05	2004	10.0041	9.9695	0
PIMCO Low Duration Portfolio, Admin. Class	05	2003	10.0000	10.0041	0
PIMCO Low Duration Portfolio, Admin. Class	06	2006	9.8234	9.9799	11,355
PIMCO Low Duration Portfolio, Admin. Class	06	2005	9.9532	9.8234	9,913
PIMCO Low Duration Portfolio, Admin. Class	06	2004	10.0031	9.9532	9,752
PIMCO Low Duration Portfolio, Admin. Class	06	2003	10.0000	10.0031	0
PIMCO Real Return Portfolio, Admin. Class	01	2006	12.1128	11.9926	90,822
PIMCO Real Return Portfolio, Admin. Class	01	2005	12.0685	12.1128	127,874
PIMCO Real Return Portfolio, Admin. Class	01	2004	11.2723	12.0685	65,798
PIMCO Real Return Portfolio, Admin. Class	01	2003	10.5345	11.2723	22,479
PIMCO Real Return Portfolio, Admin. Class	01	2002	10.0000	10.5345	63
PIMCO Real Return Portfolio, Admin. Class	02	2006	12.0291	11.8855	161,217
PIMCO Real Return Portfolio, Admin. Class	02	2005	12.0094	12.0291	150,407
PIMCO Real Return Portfolio, Admin. Class	02	2004	11.2401	12.0094	95,540
PIMCO Real Return Portfolio, Admin. Class	02	2003	10.5258	11.2401	69,927
PIMCO Real Return Portfolio, Admin. Class	02	2002	10.0000	10.5258	8,541
PIMCO Real Return Portfolio, Admin. Class	03	2006	12.0081	11.8588	1,136
PIMCO Real Return Portfolio, Admin. Class	03	2005	11.9947	12.0081	2,419
PIMCO Real Return Portfolio, Admin. Class	03	2004	11.2320	11.9947	6,998
PIMCO Real Return Portfolio, Admin. Class	03	2003	10.5236	11.2320	306
PIMCO Real Return Portfolio, Admin. Class	03	2002	10.0000	10.5236	0
PIMCO Real Return Portfolio, Admin. Class	04	2006	11.9456	11.7790	200,820
PIMCO Real Return Portfolio, Admin. Class	04	2005	11.9505	11.9456	187,202
PIMCO Real Return Portfolio, Admin. Class	04	2004	11.2079	11.9505	123,730
PIMCO Real Return Portfolio, Admin. Class	04	2003	10.5171	11.2079	40,013
PIMCO Real Return Portfolio, Admin. Class	04	2002	10.0000	10.5171	4,358
PIMCO Real Return Portfolio, Admin. Class	05	2006	11.9250	11.7528	2,052
PIMCO Real Return Portfolio, Admin. Class	05	2005	11.9359	11.9250	2,678
PIMCO Real Return Portfolio, Admin. Class	05	2004	11.1999	11.9359	3,334
PIMCO Real Return Portfolio, Admin. Class	05	2003	10.5149	11.1999	3,998
PIMCO Real Return Portfolio, Admin. Class	05	2002	10.0000	10.5149	0
PIMCO Real Return Portfolio, Admin. Class	06	2006	11.8628	11.6735	17,638
PIMCO Real Return Portfolio, Admin. Class	06	2005	11.8918	11.8628	12,148
PIMCO Real Return Portfolio, Admin. Class	06	2004	11.1757	11.8918	11,934
PIMCO Real Return Portfolio, Admin. Class	06	2003	10.5084	11.1757	2,281
PIMCO Real Return Portfolio, Admin. Class	06	2002	10.0000	10.5084	0
PIMCO Total Return Portfolio, Admin. Class	01	2006	11.1322	11.3650	126,350
PIMCO Total Return Portfolio, Admin. Class	01	2005	11.0530	11.1322	147,843
PIMCO Total Return Portfolio, Admin. Class	01	2004	10.7203	11.0530	109,848
PIMCO Total Return Portfolio, Admin. Class	01	2003	10.3819	10.7203	60,384
PIMCO Total Return Portfolio, Admin. Class	01	2002	10.0000	10.3819	1,286
PIMCO Total Return Portfolio, Admin. Class	02	2006	11.0553	11.2636	281,141
PIMCO Total Return Portfolio, Admin. Class	02	2005	10.9989	11.0553	269,419
PIMCO Total Return Portfolio, Admin. Class	02	2004	10.6896	10.9989	173,903
PIMCO Total Return Portfolio, Admin. Class	02	2003	10.3734	10.6896	112,824
PIMCO Total Return Portfolio, Admin. Class	02	2002	10.0000	10.3734	7,458
PIMCO Total Return Portfolio, Admin. Class	03	2006	11.0360	11.2382	3,964
PIMCO Total Return Portfolio, Admin. Class	03	2005	10.9854	11.0360	3,451
PIMCO Total Return Portfolio, Admin. Class	03	2004	10.6820	10.9854	7,074
PIMCO Total Return Portfolio, Admin. Class	03	2003	10.3712	10.6820	2,442
PIMCO Total Return Portfolio, Admin. Class	03	2002	10.0000	10.3712	0
PIMCO Total Return Portfolio, Admin. Class	04	2006	10.9786	11.1627	78,314
PIMCO Total Return Portfolio, Admin. Class	04	2005	10.9449	10.9786	96,638
PIMCO Total Return Portfolio, Admin. Class	04	2004	10.6590	10.9449	93,884
PIMCO Total Return Portfolio, Admin. Class	04	2003	10.3648	10.6590	53,676
PIMCO Total Return Portfolio, Admin. Class	04	2002	10.0000	10.3648	15,866
PIMCO Total Return Portfolio, Admin. Class	05	2006	10.9596	11.1377	2,118
PIMCO Total Return Portfolio, Admin. Class	05	2005	10.9316	10.9596	1,928
PIMCO Total Return Portfolio, Admin. Class	05	2004	10.6514	10.9316	3,882
PIMCO Total Return Portfolio, Admin. Class	05	2003	10.3626	10.6514	11,388
PIMCO Total Return Portfolio, Admin. Class	05	2002	10.0000	10.3626	0
PIMCO Total Return Portfolio, Admin. Class	06	2006	10.9024	11.0626	4,922
PIMCO Total Return Portfolio, Admin. Class	06	2005	10.8912	10.9024	5,485
PIMCO Total Return Portfolio, Admin. Class	06	2004	10.6284	10.8912	9,356
PIMCO Total Return Portfolio, Admin. Class	06	2003	10.3562	10.6284	4,435
PIMCO Total Return Portfolio, Admin. Class	06	2002	10.0000	10.3562	0
PIMCO VIT All Asset Portfolio, Admin. Class	01	2006	10.2176	10.5123	5,544
PIMCO VIT All Asset Portfolio, Admin. Class	01	2005	10.0000	10.2176	0
PIMCO VIT All Asset Portfolio, Admin. Class	02	2006	10.2141	10.4875	7,644
PIMCO VIT All Asset Portfolio, Admin. Class	02	2005	10.0000	10.2141	0
PIMCO VIT All Asset Portfolio, Admin. Class	03	2006	10.2133	10.4813	0
PIMCO VIT All Asset Portfolio, Admin. Class	03	2005	10.0000	10.2133	0
PIMCO VIT All Asset Portfolio, Admin. Class	04	2006	10.2107	10.4626	0
PIMCO VIT All Asset Portfolio, Admin. Class	04	2005	10.0000	10.2107	0
PIMCO VIT All Asset Portfolio, Admin. Class	05	2006	10.2099	10.4564	0
PIMCO VIT All Asset Portfolio, Admin. Class	05	2005	10.0000	10.2099	0
PIMCO VIT All Asset Portfolio, Admin. Class	06	2006	10.2073	10.4378	0
PIMCO VIT All Asset Portfolio, Admin. Class	06	2005	10.0000	10.2073	0
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	01	2006	10.2959	9.8077	19,284
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	01	2005	10.0000	10.2959	0
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	02	2006	10.2924	9.7845	20,508
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	02	2005	10.0000	10.2924	0
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	03	2006	10.2916	9.7787	1,921
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	03	2005	10.0000	10.2916	1,921
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	04	2006	10.2890	9.7612	0
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	04	2005	10.0000	10.2890	0
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	05	2006	10.2881	9.7555	0
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	05	2005	10.0000	10.2881	0
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	06	2006	10.2855	9.7381	0
PIMCO VIT CommodityRealReturn Strategy Portfolio, Admin. Class	06	2005	10.0000	10.2855	0
SCSM FI Large Cap Growth Fund S Class	01	2006	10.0000	9.8671	0
SCSM FI Large Cap Growth Fund S Class	02	2006	10.0000	9.8538	2,305
SCSM FI Large Cap Growth Fund S Class	03	2006	10.0000	9.8504	0
SCSM FI Large Cap Growth Fund S Class	04	2006	10.0000	9.8404	0
SCSM FI Large Cap Growth Fund S Class	05	2006	10.0000	9.8371	0
SCSM FI Large Cap Growth Fund S Class	06	2006	10.0000	9.8271	0
Sun Capital® All Cap Fund S Class	01	2006	10.8394	12.7629	3,768
Sun Capital® All Cap Fund S Class	01	2005	11.1350	10.8394	191
Sun Capital® All Cap Fund S Class	01	2004	10.0000	11.1350	3,094
Sun Capital® All Cap Fund S Class	02	2006	10.7973	12.6875	20,489
Sun Capital® All Cap Fund S Class	02	2005	11.1143	10.7973	8,616
Sun Capital® All Cap Fund S Class	02	2004	10.0000	11.1143	2,441
Sun Capital® All Cap Fund S Class	03	2006	10.7868	12.6687	836
Sun Capital® All Cap Fund S Class	03	2005	11.1091	10.7868	322
Sun Capital® All Cap Fund S Class	03	2004	10.0000	11.1091	4,190
Sun Capital® All Cap Fund S Class	04	2006	10.7552	12.6124	10,212
Sun Capital® All Cap Fund S Class	04	2005	11.0936	10.7552	19,786
Sun Capital® All Cap Fund S Class	04	2004	10.0000	11.0936	26,543
Sun Capital® All Cap Fund S Class	05	2006	10.7448	12.5938	0
Sun Capital® All Cap Fund S Class	05	2005	11.0885	10.7448	0
Sun Capital® All Cap Fund S Class	05	2004	10.0000	11.0885	0
Sun Capital® All Cap Fund S Class	06	2006	10.7133	12.5377	6,217
Sun Capital® All Cap Fund S Class	06	2005	11.0729	10.7133	6,217
Sun Capital® All Cap Fund S Class	06	2004	10.0000	11.0729	6,217
Sun Capital Investment Grade Bond Fund® S Class	01	2006	10.3379	10.6853	12,186
Sun Capital Investment Grade Bond Fund® S Class	01	2005	10.3369	10.3379	76,423
Sun Capital Investment Grade Bond Fund® S Class	01	2004	10.0000	10.3369	6,304
Sun Capital Investment Grade Bond Fund® S Class	02	2006	10.2978	10.6222	36,412
Sun Capital Investment Grade Bond Fund® S Class	02	2005	10.3177	10.2978	41,786
Sun Capital Investment Grade Bond Fund® S Class	02	2004	10.0000	10.3177	9,756
Sun Capital Investment Grade Bond Fund® S Class	03	2006	10.2877	10.6065	0
Sun Capital Investment Grade Bond Fund® S Class	03	2005	10.3129	10.2877	0
Sun Capital Investment Grade Bond Fund® S Class	03	2004	10.0000	10.3129	0
Sun Capital Investment Grade Bond Fund® S Class	04	2006	10.2576	10.5593	9,479
Sun Capital Investment Grade Bond Fund® S Class	04	2005	10.2985	10.2576	1,158
Sun Capital Investment Grade Bond Fund® S Class	04	2004	10.0000	10.2985	0
Sun Capital Investment Grade Bond Fund® S Class	05	2006	10.2477	10.5437	0
Sun Capital Investment Grade Bond Fund® S Class	05	2005	10.2938	10.2477	0
Sun Capital Investment Grade Bond Fund® S Class	05	2004	10.0000	10.2938	0
Sun Capital Investment Grade Bond Fund® S Class	06	2006	10.2177	10.4967	0
Sun Capital Investment Grade Bond Fund® S Class	06	2005	10.2793	10.2177	0
Sun Capital Investment Grade Bond Fund® S Class	06	2004	10.0000	10.2793	0
Sun Capital Real Estate Fund®	01	2006	19.0262	25.9919	9,907
Sun Capital Real Estate Fund®	01	2005	17.6477	19.0262	14,714
Sun Capital Real Estate Fund®	01	2004	13.4666	17.6477	17,263
Sun Capital Real Estate Fund®	01	2003	10.0768	13.4666	14,414
Sun Capital Real Estate Fund®	01	2002	10.0000	10.0768	0
Sun Capital Real Estate Fund®	02	2006	18.8948	25.7601	16,558
Sun Capital Real Estate Fund®	02	2005	17.5614	18.8948	20,889
Sun Capital Real Estate Fund®	02	2004	13.4281	17.5614	29,928
Sun Capital Real Estate Fund®	02	2003	10.0685	13.4281	33,166
Sun Capital Real Estate Fund®	02	2002	10.0000	10.0685	281
Sun Capital Real Estate Fund®	03	2006	18.8620	25.7022	0
Sun Capital Real Estate Fund®	03	2005	17.5398	18.8620	0
Sun Capital Real Estate Fund®	03	2004	13.4185	17.5398	33
Sun Capital Real Estate Fund®	03	2003	10.0664	13.4185	20
Sun Capital Real Estate Fund®	03	2002	10.0000	10.0664	0
Sun Capital Real Estate Fund®	04	2006	18.7638	25.5295	8,607
Sun Capital Real Estate Fund®	04	2005	17.4753	18.7638	10,384
Sun Capital Real Estate Fund®	04	2004	13.3896	17.4753	8,694
Sun Capital Real Estate Fund®	04	2003	10.0602	13.3896	7,699
Sun Capital Real Estate Fund®	04	2002	10.0000	10.0602	708
Sun Capital Real Estate Fund®	05	2006	18.7314	25.4725	0
Sun Capital Real Estate Fund®	05	2005	17.4539	18.7314	0
Sun Capital Real Estate Fund®	05	2004	13.3801	17.4539	0
Sun Capital Real Estate Fund®	05	2003	10.0581	13.3801	0
Sun Capital Real Estate Fund®	05	2002	10.0000	10.0581	0
Sun Capital Real Estate Fund®	06	2006	18.6337	25.3009	0
Sun Capital Real Estate Fund®	06	2005	17.3895	18.6337	0
Sun Capital Real Estate Fund®	06	2004	13.3513	17.3895	0
Sun Capital Real Estate Fund®	06	2003	10.0519	13.3513	0
Sun Capital Real Estate Fund®	06	2002	10.0000	10.0519	0
Sun Capital Real Estate Fund® S Class	01	2006	13.3501	18.1956	46,591
Sun Capital Real Estate Fund® S Class	01	2005	12.4174	13.3501	42,388
Sun Capital Real Estate Fund® S Class	01	2004	10.0000	12.4174	24,720
Sun Capital Real Estate Fund® S Class	02	2006	13.2983	18.0883	71,811
Sun Capital Real Estate Fund® S Class	02	2005	12.3943	13.2983	45,042
Sun Capital Real Estate Fund® S Class	02	2004	10.0000	12.3943	28,102
Sun Capital Real Estate Fund® S Class	03	2006	13.2853	18.0614	0
Sun Capital Real Estate Fund® S Class	03	2005	12.3885	13.2853	0
Sun Capital Real Estate Fund® S Class	03	2004	10.0000	12.3885	0
Sun Capital Real Estate Fund® S Class	04	2006	13.2465	17.9812	85,374
Sun Capital Real Estate Fund® S Class	04	2005	12.3712	13.2465	88,778
Sun Capital Real Estate Fund® S Class	04	2004	10.0000	12.3712	34,111
Sun Capital Real Estate Fund® S Class	05	2006	13.2337	17.9547	0
Sun Capital Real Estate Fund® S Class	05	2005	12.3655	13.2337	0
Sun Capital Real Estate Fund® S Class	05	2004	10.0000	12.3655	0
Sun Capital Real Estate Fund® S Class	06	2006	13.1949	17.8748	7,400
Sun Capital Real Estate Fund® S Class	06	2005	12.3482	13.1949	4,985
Sun Capital Real Estate Fund® S Class	06	2004	10.0000	12.3482	2,277
Templeton Developing Markets Securities Fund, Class 2	01	2006	11.2055	14.1098	9,072
Templeton Developing Markets Securities Fund, Class 2	01	2005	10.0000	11.2055	0
Templeton Developing Markets Securities Fund, Class 2	02	2006	11.2018	14.0765	4,982
Templeton Developing Markets Securities Fund, Class 2	02	2005	10.0000	11.2018	1,791
Templeton Developing Markets Securities Fund, Class 2	03	2006	11.2009	14.0682	4,674
Templeton Developing Markets Securities Fund, Class 2	03	2005	10.0000	11.2009	3,826
Templeton Developing Markets Securities Fund, Class 2	04	2006	11.1980	14.0432	7,634
Templeton Developing Markets Securities Fund, Class 2	04	2005	10.0000	11.1980	0
Templeton Developing Markets Securities Fund, Class 2	05	2006	11.1971	14.0349	0
Templeton Developing Markets Securities Fund, Class 2	05	2005	10.0000	11.1971	0
Templeton Developing Markets Securities Fund, Class 2	06	2006	11.1943	14.0099	1,668
Templeton Developing Markets Securities Fund, Class 2	06	2005	10.0000	11.1943	0
Templeton Foreign Securities Fund, Class 2	01	2006	15.7667	18.8234	130,499
Templeton Foreign Securities Fund, Class 2	01	2005	14.5582	15.7667	139,751
Templeton Foreign Securities Fund, Class 2	01	2004	12.4953	14.5582	100,504
Templeton Foreign Securities Fund, Class 2	01	2003	9.6142	12.4953	42,960
Templeton Foreign Securities Fund, Class 2	01	2002	10.0000	9.6142	53,262
Templeton Foreign Securities Fund, Class 2	02	2006	15.6578	18.6555	302,793
Templeton Foreign Securities Fund, Class 2	02	2005	14.4870	15.6578	281,734
Templeton Foreign Securities Fund, Class 2	02	2004	12.4596	14.4870	146,239
Templeton Foreign Securities Fund, Class 2	02	2003	9.6062	12.4596	51,810
Templeton Foreign Securities Fund, Class 2	02	2002	10.0000	9.6062	0
Templeton Foreign Securities Fund, Class 2	03	2006	15.6306	18.6135	2,955
Templeton Foreign Securities Fund, Class 2	03	2005	14.4692	15.6306	1,294
Templeton Foreign Securities Fund, Class 2	03	2004	12.4507	14.4692	2,543
Templeton Foreign Securities Fund, Class 2	03	2003	9.6042	12.4507	270
Templeton Foreign Securities Fund, Class 2	03	2002	10.0000	9.6042	0
Templeton Foreign Securities Fund, Class 2	04	2006	15.5493	18.4884	114,159
Templeton Foreign Securities Fund, Class 2	04	2005	14.4159	15.5493	80,483
Templeton Foreign Securities Fund, Class 2	04	2004	12.4239	14.4159	40,074
Templeton Foreign Securities Fund, Class 2	04	2003	9.5983	12.4239	17,600
Templeton Foreign Securities Fund, Class 2	04	2002	10.0000	9.5983	1,615
Templeton Foreign Securities Fund, Class 2	05	2006	15.5224	18.4472	3,637
Templeton Foreign Securities Fund, Class 2	05	2005	14.3983	15.5224	4,674
Templeton Foreign Securities Fund, Class 2	05	2004	12.4150	14.3983	4,674
Templeton Foreign Securities Fund, Class 2	05	2003	9.5963	12.4150	3,731
Templeton Foreign Securities Fund, Class 2	05	2002	10.0000	9.5963	0
Templeton Foreign Securities Fund, Class 2	06	2006	15.4414	18.3228	5,611
Templeton Foreign Securities Fund, Class 2	06	2005	14.3451	15.4414	2,678
Templeton Foreign Securities Fund, Class 2	06	2004	12.3882	14.3451	4,241
Templeton Foreign Securities Fund, Class 2	06	2003	9.5903	12.3882	1,466
Templeton Foreign Securities Fund, Class 2	06	2002	10.0000	9.5903	0
Templeton Growth Securities Fund, Class 2	01	2006	16.7805	20.0936	30,149
Templeton Growth Securities Fund, Class 2	01	2005	15.6800	16.7805	19,544
Templeton Growth Securities Fund, Class 2	01	2004	13.7485	15.6800	3,162
Templeton Growth Securities Fund, Class 2	01	2003	10.0000	13.7485	0
Templeton Growth Securities Fund, Class 2	02	2006	16.6698	19.9206	39,078
Templeton Growth Securities Fund, Class 2	02	2005	15.6082	16.6698	35,232
Templeton Growth Securities Fund, Class 2	02	2004	13.7135	15.6082	10,287
Templeton Growth Securities Fund, Class 2	02	2003	10.0000	13.7135	0
Templeton Growth Securities Fund, Class 2	03	2006	16.6421	19.8774	0
Templeton Growth Securities Fund, Class 2	03	2005	15.5903	16.6421	0
Templeton Growth Securities Fund, Class 2	03	2004	13.7047	15.5903	0
Templeton Growth Securities Fund, Class 2	03	2003	10.0000	13.7047	0
Templeton Growth Securities Fund, Class 2	04	2006	16.5594	19.7484	20,633
Templeton Growth Securities Fund, Class 2	04	2005	15.5365	16.5594	20,829
Templeton Growth Securities Fund, Class 2	04	2004	13.6785	15.5365	17,018
Templeton Growth Securities Fund, Class 2	04	2003	10.0000	13.6785	0
Templeton Growth Securities Fund, Class 2	05	2006	16.5321	19.7059	0
Templeton Growth Securities Fund, Class 2	05	2005	15.5188	16.5321	0
Templeton Growth Securities Fund, Class 2	05	2004	13.6698	15.5188	0
Templeton Growth Securities Fund, Class 2	05	2003	10.0000	13.6698	0
Templeton Growth Securities Fund, Class 2	06	2006	16.4498	19.5777	3,918
Templeton Growth Securities Fund, Class 2	06	2005	15.4651	16.4498	3,918
Templeton Growth Securities Fund, Class 2	06	2004	13.6435	15.4651	3,919
Templeton Growth Securities Fund, Class 2	06	2003	10.0000	13.6435	0

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

P.O. Box 9133

Wellesley Hills, Massachusetts 02481

Telephone:

Toll Free (800) 752-7215

General Distributor

Clarendon Insurance Agency, Inc.

One Sun Life Executive Park

Wellesley Hills, Massachusetts 02481

MAY 1, 2007

SUN LIFE FINANCIAL MASTERS^® ACCESS

VARIABLE AND FIXED ANNUITY

STATEMENT OF ADDITIONAL INFORMATION

SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT F

TABLE OF CONTENTS

Sun Life Assurance Company of Canada (U.S.)

Advertising and Sales Literature

Tax Deferred Accumulation

Calculations

     Example of Variable Accumulation Unit Value Calculation

     Example of Variable Annuity Unit Calculation

     Example of Variable Annuity Payment Calculation

Distribution of the Contract

Custodian

Independent Registered Public Accounting Firm

Financial Statements

The Statement of Additional Information sets forth information which may be of interest to prospective purchasers of the Sun Life Financial Masters^® Access Variable and Fixed Annuity Contracts (the "Contracts") issued by Sun Life Assurance Company of Canada (U.S.) (the "Company" or "Sun Life (U.S.)") in connection with Sun Life of Canada (U.S.) Variable Account F (the "Variable Account") which is not included in the Prospectus dated May 1, 2007. This Statement of Additional Information should be read in conjunction with the Prospectus, a copy of which may be obtained without charge from the Company by writing to Sun Life Assurance Company of Canada (U.S.), c/o Annuity Division, P.O. Box 9133, Wellesley Hills, Massachusetts 02481, or by telephoning (888) 786-2435.

The terms used in this Statement of Additional Information have the same meanings as in the Prospectus.

------------------------------------------------------------------------------------------------------------------------

THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND IS AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE PURCHASERS ONLY IF PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.

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

Sun Life Financial Inc. ("Sun Life Financial"), a reporting company under the Securities Exchange Act of 1934 with common shares listed on the Toronto, New York and Philippine stock exchanges, is the ultimate corporate parent of Sun Life (U.S.). Sun Life Financial ultimately controls Sun Life (U.S.) through the following intervening companies: Sun Life of Canada (U.S.) Holdings, Inc., Sun Life Financial (U.S.) Investments LLC, Sun Life Financial (U.S.) Holdings, Inc., Sun Life Assurance Company of Canada - U.S. Operations Holdings, Inc., and Sun Life Financial Corp.

ADVERTISING AND SALES LITERATURE

As set forth in the Prospectus, the Company may refer to the following organizations (and others) in its marketing materials:

A.M. BEST'S RATING SYSTEM is designed to evaluate the various factors affecting the overall performance of an insurance company in order to provide an opinion as to an insurance company's relative financial strength and ability to meet its contractual obligations. The procedure includes both a quantitative and qualitative review of each company.

FITCH CREDIT RATING Company's Insurance Company Claims Paying Ability Rating is an independent evaluation by a nationally accredited rating organization of an insurance company's ability to meet its future obligations under the contracts and products it sells. The rating takes into account both quantitative and qualitative factors.

LIPPER VARIABLE INSURANCE PRODUCTS PERFORMANCE ANALYSIS SERVICE is a publisher of statistical data covering the investment company industry in the United States and overseas. Lipper is recognized as the leading source of data on open-end and closed-end funds. Lipper currently tracks the performance of over 5,000 investment companies and publishes numerous specialized reports, including reports on performance and portfolio analysis, fee and expense analysis.

STANDARD & POOR'S insurance claims-paying ability rating is an opinion of an operating insurance company's financial capacity to meet obligations of its insurance policies in accordance with their terms.

VARDS (Variable Annuity Research Data Service) provides a comprehensive guide to variable annuity contract features and historical fund performance. The service also provides a readily understandable analysis of the comparative characteristics and market performance of funds inclusive in variable contracts.

MOODY'S Investors Services, Inc.'s insurance claims-paying rating is a system of rating an insurance company's financial strength, market leadership, and ability to meet financial obligations. The purpose of Moody's ratings is to provide investors with a simple system of gradation by which the relative quality of insurance companies may be noted.

STANDARD & POOR'S INDEX - broad-based measurement of changes in stock-market conditions based on the average performance of 500 widely held common stocks; commonly known as the Standard & Poor's 500 (S&P 500). The selection of stocks, their relative weightings to reflect differences in the number of outstanding shares, and publication of the index itself are services of Standard & Poor's Corporation, a financial advisory, securities rating, and publishing firm. The index tracks 400 industrial company stocks, 20 transportation stocks, 40 financial company stocks, and 40 public utilities.

NASDAQ-OTC Price Index - this index is based on the National Association of Securities Dealers Automated Quotations (NASDAQ) and represents all domestic over-the-counter stocks except those traded on exchanges and those having only one market maker, a total of some 3,500 stocks. It is market value-weighted and was introduced with a base of 100.00 on February 5, 1971.

DOW JONES INDUSTRIAL AVERAGE (DJIA) - price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but including American Express Company and American Telephone and Telegraph Company. Prepared and Published by Dow Jones & Company, it is the oldest and most widely quoted of all the market indicators. The average is quoted in points, not dollars.

MORNINGSTAR, Inc. is an independent financial publisher offering comprehensive statistical and analytical coverage of open-end and closed-end funds and variable annuities. This coverage for mutual funds includes, among other information, performance analysis rankings, risk rankings (e.g. aggressive, moderate or conservative), and "style box" matrices. Style box matrices display, for equity funds, the investment philosophy and size of the companies in which the fund invests and, for fixed-income funds, interest rate sensitivity and credit quality of the investment instruments.

IBBOTSON ASSOCIATES, Inc. is a consulting firm that provides a variety of historical data, including total return, capital appreciation and income, on the stock market as well as other investment asset classes, and inflation. This information will be used primarily for comparative purposes and to illustrate general financial planning principles.

In its advertisements and other sales literature for the Variable Account and the Funds, the Company intends to illustrate the advantages of the Contracts in a number of ways:

DOLLAR-COST AVERAGING ILLUSTRATIONS. These illustrations will generally discuss the price-leveling effect of making regular investments in the same Sub-Accounts over a period of time, to take advantage of the trends in market prices of the portfolio securities purchased by those Sub-Accounts.

SYSTEMATIC WITHDRAWAL PROGRAM. A service provided by the Company, through which a Participant may take any distribution allowed by Internal Revenue Code Section 401 (a) (9) in the case of Qualified Contracts, or permitted under Internal Revenue Code Section 72 in the case of Non-Qualified Contracts, by way of a series of partial withdrawals. Withdrawals under this program may be fully or partially includible in income and may be subject to a 10% penalty tax. Consult your tax advisor.

THE COMPANY'S AND THE FUNDS' CUSTOMERS. Sales literature for the Variable Account and the Funds may refer to the number of clients which they serve.

THE COMPANY'S ASSETS, SIZE. The Company may discuss its general financial condition (see, for example, the references to Standard & Poor's, Fitch and A.M. Best Company above); it may refer to its assets; and it may discuss its relative size and/or ranking among companies in the industry or among any sub-classification of those companies, based upon recognized evaluation criteria. For example, at December 31, 1998, the Company was the 36th largest U.S. life insurance company based upon overall assets.

COMPOUND INTEREST ILLUSTRATIONS. These will emphasize several advantages of the variable annuity contract. For example, but not by way of limitation, the literature may emphasize the potential savings through tax deferral; the potential advantage of the Variable Account over the Fixed Account; and the compounding effect when a participant makes regular deposits to his or her account.

The Company may use hypothetical illustrations of the benefits of tax deferral, including but not limited to the following chart:

The chart below assumes an initial investment of $10,000 which remains fully invested for the entire time period, an 8% annual return, and a 33% combined federal and state income tax rate. It compares how 3 different investments might fare over 10, 20, and 30 years. The first example illustrates an investment in a non-tax-deferred account and assumes that taxes are paid annually out of that account. The second example illustrates how the same investment would grow in a tax-deferred investment, such as an annuity. The third example illustrates the net value of the tax-deferred investment after paying taxes on the full account value.

	10 YEARS	20 YEARS	30 YEARS
Non-Tax-Deferred Account	$16,856	$28,413	$ 47,893
Tax-Deferred Account	$21,589	$46,610	$100,627
Tax-Deferred Account After Paying Taxes	$17,765	$34,528	$ 70,720

THIS ILLUSTRATION IS HYPOTHETICAL AND DOES NOT REPRESENT THE PROJECTED PERFORMANCE OF THE CONTRACT OR ANY OF ITS INVESTMENT OPTIONS. THE ILLUSTRATION DOES NOT REFLECT THE DEDUCTION OF ANY CHARGES OR FEES RELATED TO PORTFOLIO MANAGEMENT, MORTALITY AND EXPENSE, OR ACCOUNT ADMINISTRATION. TAXES ON EARNINGS WITHIN AN ANNUITY ARE DUE UPON WITHDRAWAL. WITHDRAWALS MAY ALSO BE SUBJECT TO SURRENDER CHARGES AND, IF MADE PRIOR TO AGE 59½, A 10% FEDERAL PENALTY TAX.

TAX-DEFERRED ACCUMULATION:

In general, individuals who own annuity contracts are not taxed on increases in the value of their annuity contracts until some form of distribution is made under the contract. As a result, the annuity contract would benefit from tax deferral during the contract's accumulation phase; this would have the effect of permitting an investment in an annuity contract to grow more rapidly that a comparable investment under which increases in value are taxed on a current basis.

In reports or other communications to you or in advertising or sales materials, we may also describe the effects of tax-deferred compounding on the Variable Account's investment returns. We may illustrate these effects in charts or graphs and from time to time may include comparisons of returns under the Contract or in general on a tax-deferred basis, with the returns on a taxable basis. Different tax rates may be assumed. Any such illustrative chart or graph would show accumulations on an initial investment or Purchase Payment, assuming a given amount (including the applicable interest credit), hypothetical gross annual returns compounded annually, and a stated rate of return. The values shown for the taxable investment would not include any deduction for management fees or other expenses, but would assume the annual deduction of federal and state taxes from investment returns. The values shown for the Contract in a chart would reflect the deduction of Contract expenses, such as the mortality and expense risk charge, the 0.15% administrative charge, the 0.20% distribution fee, and the $50 annual Account Fee. In addition, the values shown would assume that the Participant has not surrendered his or her Contract or made any partial surrenders until the end of the period shown. The chart would assume a full surrender at the end of the period shown and the payment of federal and state taxes, at a rate of not more than 33%, on the amount in excess of the Purchase Payments.

In developing illustrative tax deferral charts, we will observe these general principles:

l	The assumed rate of earnings will be realistic.
l	The illustrative chart will accurately depict the effect of all fees and charges or provide a narrative that prominently discloses all fees and charges under the Contract.
l	Charts comparing accumulation values for tax-deferred and non-tax-deferred investments will depict the implications of any surrender.
l	A narrative accompanying the chart will prominently disclose that there may be a 10% tax penalty on a surrender by a Participant who has not reached age 59½ at the time of surrender.

The rates of return illustrated in any chart would be hypothetical and are not an estimate or guaranty of performance. Actual tax returns may vary among Participants.

CALCULATIONS

EXAMPLE OF VARIABLE ACCUMULATION UNIT VALUE CALCULATION

Suppose the net asset value of a Fund share at the end of the current valuation period is $18.38; at the end of the immediately preceding valuation period was $18.32; the Valuation Period is one day; and no dividends or distributions caused Fund shares to go "ex-dividend" during the current Valuation Period. $18.38 ÷ $18.32 = 1.00327511. Subtracting the one day risk factor for mortality and expense risks and the administrative expense charge of .00006375 (the daily equivalent of the current maximum charge of 2.30% on an annual basis) gives a net investment factor of 1.00321136. If the value of the variable accumulation unit for the immediately preceding valuation period had been 14.5645672, the value for the current valuation period would be 14.6113393 (14.5645672 x 1.00321136).

EXAMPLE OF VARIABLE ANNUITY UNIT CALCULATION

Suppose the circumstances of the first example exist, and the value of an annuity unit for the immediately preceding valuation period had been 12.3456789. If the first variable annuity payment is determined by using an annuity payment based on an assumed interest rate of 3% per year, the value of the annuity unit for the current valuation period would be 12.3845294 (12.3456789 x 1.00322814 (the Net Investment Factor based on the daily equivalent of maximum annuity phase charge of 1.70% on an annual basis) x 0.99991902). 0.99991902 is the factor, for a one day Valuation Period, that neutralizes the assumed interest rate of 3% per year used to establish the Annuity Payment Rates found in certain Contracts.

EXAMPLE OF VARIABLE ANNUITY PAYMENT CALCULATION

Suppose that a Participant Account is credited with 8,765.4321 variable accumulation units of a particular Sub-Account but is not credited with any fixed accumulation units; that the variable accumulation unit value and the annuity unit value for the particular Sub-Account for the valuation period which ends immediately preceding the annuity commencement date are 14.5645672 and 12.3456789 respectively; that the annuity payment rate for the age and option elected is $6.78 per $1,000; and that the annuity unit value on the day prior to the second variable annuity payment date is 12.3845294. The first variable annuity payment would be $865.57 (8,765.4321 x 14.5645672 x 6.78 ÷ 1,000). The number of annuity units credited would be 70.1112 ($865.57 ÷ 12.3456789) and the second variable annuity payment would be $868.29 (70.1112 x 12.3845294).

DISTRIBUTION OF THE CONTRACT

We offer the Contract on a continuous basis. Contracts are sold by licensed insurance agents in those states where the Contract may be lawfully sold. Such agents will be registered representatives of broker-dealers registered under the Securities Exchange Act of 1934 who are members of the National Association of Securities Dealers, Inc. and who have entered into distribution agreements with the Company and the general distributor and principal underwriter of the Contracts, Clarendon Insurance Agency, Inc. ("Clarendon"), One Sun Life Executive Park, Wellesley Hills, Massachusetts 02481. Clarendon is a wholly-owned subsidiary of the Company. Clarendon is registered with the SEC under the Securities Exchange Act of 1934 as a broker-dealer and is a member of the National Association of Securities Dealers, Inc. Clarendon also acts as the general distributor of certain other annuity contracts issued by the Company and its wholly-owned subsidiary, Sun Life Insurance and Annuity Company of New York, and variable life insurance contracts issued by the Company.

Commissions and other distribution compensation will be paid by the Company to the selling agents and will not be more than 2.00% of Purchase Payments. In addition, after the first Account Year, broker-dealers who have entered into distribution agreements with the Company may receive an annual renewal commission of no more than 1.00% of the Participant’s Account Value. In addition to commissions, the Company may, from time to time, pay or allow additional promotional incentives, in the form of cash or other compensation. The Company reserves the right to offer these additional incentives only to certain broker-dealers that sell or are expected to sell during specified time periods certain minimum amounts of Contracts or Certificates or other contracts offered by the Company. Promotional incentives may change at any time. Commissions will not be paid with respect to Participant Accounts established for the personal account of employees of the Company or any of its affiliates, or of persons engaged in the distribution of the Contract, or of immediate family members of such employees or persons. In addition, commissions may be waived or reduced in connection with certain transactions described in the Prospectus under the heading åWaivers; Reduced Charges; Credits; Special Guaranteed Interest Rates.æ

CUSTODIAN

We are the Custodian of the assets of the Variable Account. We will purchase Fund shares at net asset value in connection with amounts allocated to the Sub-Accounts in accordance with your instructions, and we will redeem Fund shares at net asset value for the purpose of meeting the contractual obligations of the Variable Account, paying charges relative to the Variable Account or making adjustments for annuity reserves held in the Variable Account.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The consolidated financial statements of Sun Life Assurance Company of Canada (U.S.) included in the Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing therein (which report, dated March 27, 2007, accompanying such financial statements expresses an unqualified opinion and includes an explanatory paragraph relating to the adoption of the American Institute of Certified Public Accountants' Statement of Position 03-01, Accounting and Reporting by Insurance Enterprises of Certain Nontraditional Long-Duration Contracts and for Separate Accounts, effective January 1, 2004, as described in Note 1), and have been so included in their reliance upon the report of such firm given upon their authority as experts in accounting and auditing. Their office is located at 200 Berkeley St, Boston, Massachusetts.

The financial statements of Sun Life of Canada (U.S.) Variable Account F that are included in the Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing therein (which report dated April 20, 2007 accompanying the financial statements expresses an unqualified opinion) and have been so included in their reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

FINANCIAL STATEMENTS

The financial statements of the Variable Account and Sun Life Assurance Company of Canada (U.S.) are included herein. The consolidated financial statements of Sun Life Assurance Company of Canada (U.S.) are provided as relevant to its ability to meet its financial obligations under the Certificates and should not be considered as bearing on the investment performance of the assets held in the Variable Account.

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

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

CONSOLIDATED STATEMENTS OF INCOME

(in thousands)

For the years ended December 31,

		2006		2005		2004
Revenues:
Premiums and annuity considerations	$	59,192	$	51,982	$	58,820
Net investment income		1,206,081		1,112,529		1,134,257
Net derivative income (loss)		9,089		16,474		(98,419)
Net realized investment (losses) gains		(44,511)		16,925		96,074
Fee and other income		398,622		362,275		357,011
Total revenues		1,628,473		1,560,185		1,547,743
Benefits and expenses:
Interest credited		633,405		637,502		673,442
Interest expense		130,802		123,279		128,522
Policyowner benefits		156,970		187,013		141,377
Amortization of deferred acquisition costs ("DAC") and       value of business acquired ("VOBA")		399,182		243,821		82,876
Other operating expenses		231,434		196,543		214,495
Total benefits and expenses		1,551,793		1,388,158		1,240,712
Income before income tax (benefit) expense, minority    interest and cumulative effect of change in accounting    principles		76,680		172,027		307,031
Income tax (benefit) expense:
Federal		(1,717)		40,091		71,352
State		105		(2)		(98)
Income tax (benefit) expense		(1,612)		40,089		71,254
Income before minority interest and cumulative
effect of change in accounting principles		78,292		131,938		235,777
Minority interest share of (loss) income		-		(1,214)		5,561
Income before cumulative effect of change in    accounting principles		78,292		133,152		230,216
Cumulative effect of change in accounting principles, net of    tax benefit of $4,814 in 2004		-		-		(8,940)
Net income	$	78,292	$	133,152	$	221,276

The accompanying notes are an integral part of the consolidated financial statements

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

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

CONSOLIDATED BALANCE SHEETS

(in thousands except per share data)

ASSETS		December 31, 2006		December 31, 2005
Investments
Available-for-sale fixed maturities at fair value (amortized cost of     $13,623,450 and $15,620,827 in 2006 and 2005, respectively)	$	13,637,973	$	15,677,148
Trading fixed maturities at fair value (amortized cost of $3,838,732 and     $1,982,762 in 2006 and 2005, respectively)		3,856,053		1,984,848
Subordinated note from affiliate held-to-maturity (fair value of $630,751     and $645,755 in 2006 and 2005, respectively)		600,000		600,000
Mortgage loans		2,273,176		1,739,370
Derivative instruments - receivable		653,854		487,947
Limited partnerships		193,728		222,148
Real estate		186,891		170,510
Policy loans		709,626		701,769
Other invested assets		950,226		554,917
Cash and cash equivalents		578,080		347,654
Total investments and cash		23,639,607		22,486,311
Accrued investment income		291,218		261,507
Deferred policy acquisition costs		1,234,206		1,341,377
Value of business acquired		47,744		53,670
Deferred federal income taxes		3,597		4,360
Goodwill		701,451		701,451
Receivable for investments sold		33,241		79,860
Reinsurance receivable		1,817,999		1,860,680
Other assets		153,230		122,239
Separate account assets		21,060,255		19,095,391
Total assets	$	48,982,548	$	46,006,846
LIABILITIES
Contractholder deposit funds and other policy liabilities	$	19,428,625	$	18,668,578
Future contract and policy benefits		750,112		768,297
Payable for investments purchased		218,465		248,733
Accrued expenses and taxes		144,695		150,318
Debt payable to affiliates		1,325,000		1,125,000
Partnership capital securities		607,826		607,826
Reinsurance payable to affiliate		1,605,626		1,652,517
Derivative instruments - payable		160,504		197,765
Other liabilities		1,178,086		766,657
Separate account liabilities		21,060,255		19,095,391
Total liabilities		46,479,194		43,281,082
Commitments and contingencies - Note 19
STOCKHOLDER’S EQUITY
Common stock, $1,000 par value - 10,000 shares authorized; 6,437 shares issued and outstanding in 2006 and 2005	$	6,437	$	6,437
Additional paid-in capital		2,143,408		2,138,880
Accumulated other comprehensive income		14,030		19,260
Retained earnings		339,479		561,187
Total stockholder’s equity		2,503,354		2,725,764
Total liabilities and stockholder’s equity	$	48,982,548	$	46,006,846

The accompanying notes are an integral part of the consolidated financial statements.

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

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

For the years ended December 31,

		2006		2005		2004
Net income	$	78,292	$	133,152	$	221,276
Other comprehensive loss:
Net change in unrealized holding (losses) gains on        available-for sale securities, net of tax and policyholder        amounts (1)		(46,229)		(79,814)		23,103
Minimum pension liability adjustment, net of tax (2)		326		(1,842)		-
Reclassification adjustments of realized investment losses        (gains) into net income, net of tax (3)		40,673		(79,722)		(70,146)
Other comprehensive loss		(5,230)		(161,378)		(47,043)
Comprehensive income (loss)	$	73,062	$	(28,226)	$	174,233

(1)   Net of tax (benefit) expense of $(25.5) million, $(43.0) million and $12.4 million for the years ended December 31, 2006, 2005 and 2004, respectively.

(2)   Net of tax (expense) benefit of $(0.2) million and $1.0 million for the years ended December 31, 2006 and 2005, respectively.

(3)   Net of tax benefit (expense) of $ 21.9 million, $(42.9) million and $(37.8) million for the years ended December 31, 2006, 2005 and 2004, respectively.

The accompanying notes are an integral part of the consolidated financial statements

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

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

CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(in thousands)

For the years ended December 31,

			Accumulated
		Additional	Other		Total
	Common	Paid-In	Comprehensive	Retained	Stockholder’s
	Stock	Capital	Income	Earnings	Equity
Balance at December 31, 2003	$ 6,437	$ 2,071,888	$ 227,681	$ 563,335	$ 2,869,341
Net income	-	-	-	221,276	221,276
Additional paid-in-capital		60,000			60,000
Dividends				(156,576)	(156,576)
Other comprehensive loss	-	-	(47,043)	-	(47,043)
Balance at December 31, 2004	$ 6,437	$ 2,131,888	$ 180,638	$ 628,035	$ 2,946,998
Net income	-	-	-	133,152	133,152
Additional paid-in-capital	-	6,992	-	-	6,992
Dividends	-	-	-	(200,000)	(200,000)
Other comprehensive loss	-	-	(161,378)	-	(161,378)
Balance at December 31, 2005	$ 6,437	$ 2,138,880	$ 19,260	$ 561,187	$ 2,725,764
Net income	-	-	-	78,292	78,292
Additional paid-in-capital	-	4,528	-	-	4,528
Dividends	-	-	-	(300,000)	(300,000)
Other comprehensive loss	-	-	(5,230)	-	(5,230)
Balance at December 31, 2006	$ 6,437	$ 2,143,408	$ 14,030	$ 339,479	$ 2,503,354

The accompanying notes are an integral part of the consolidated financial statements

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

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

For the years ended December 31,

		2006		2005		2004
Cash Flows From Operating Activities:
Net income from operations	$	78,292	$	133,152	$	221,276
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Minority interest share (loss) income		-		(1,214)		5,561
Net amortization of premiums on investments		58,379		60,195		82,123
Amortization of DAC and VOBA		399,182		243,821		82,876
Depreciation and amortization		4,608		3,985		3,025
Non cash derivative activity		(17,315)		(93,478)		(18,690)
Net realized losses (gains) on investments		44,511		(16,925)		(96,074)
Net (gains) losses on trading investments		(15,235)		80,324		7,237
Net change in unrealized and undistributed (gains) in private equity limited partnerships		(29,120)		(48,244)		(58,981)
Interest credited to contractholder deposits		633,405		637,502		671,101
Deferred federal income taxes		4,180		22,047		72,648
Cumulative effect of change in accounting principles, net of tax		-		-		8,940
Changes in assets and liabilities:
DAC additions		(262,895)		(261,917)		(346,996)
Accrued investment income		(29,711)		17,916		5,545
Future contract and policy benefits		(6,619)		25,123		(42,530)
Other, net		96,793		155,865		211,882
Net (purchases) sales of trading fixed maturities		(1,866,153)		(651,921)		27,801
Net cash (used in) provided by operating activities		(907,698)		306,231		836,744
Cash Flows From Investing Activities:
Sales, maturities and repayments of:
Available-for-sale fixed maturities		5,872,190		5,685,008		10,472,377
Mortgage loans		248,264		117,438		205,740
Real estate		-		947		-
Net cash from disposition of subsidiary		-		17,040		39,687
Other invested assets		184,646		483,700		144,145
Purchases of:
Available-for-sale fixed maturities		(4,002,244)		(5,269,211)		(10,367,260)
Mortgage loans		(780,592)		(390,376)		(698,776)
Real estate		(20,619)		(6,648)		(86,743)
Other invested assets		(489,493)		(171,539)		(910,784)
Net changes in other investing activities		399,514		(239,910)		728,637
Net change in policy loans		(7,857)		(5,464)		(3,418)
Net change in short-term investments		-		(4,576)		705
Net cash provided by (used in) investing activities	$	1,403,809	$	216,409	$	(475,690)

The accompanying notes are an integral part of the consolidated financial statements

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

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

For the years ended December 31,

		2006		2005		2004
Cash Flows From Financing Activities:
Additions to contractholder deposit funds	$	3,520,138	$	2,720,141	$	2,552,431
Withdrawals from contractholder deposit funds		(3,690,351)		(3,404,468)		(2,867,815)
Net cash of Sun Capital Advisers LLC		-		-		(2,910)
Debt proceeds		200,000		100,000		-
Dividends paid to stockholder		(300,000)		(150,600)		(150,000)
Additional capital contributed		-		-		60,000
Other, net		4,528		6,992		42,004
Net cash used in financing activities		(265,685)		(727,935)		(366,290)
Net change in cash and cash equivalents		230,426		(205,295)		(5,236)
Cash and cash equivalents, beginning of year		347,654		552,949		558,185
Cash and cash equivalents, end of year	$	578,080	$	347,654	$	552,949
Supplemental Cash Flow Information
Interest paid	$	130,686	$	122,474	$	120,195

Supplemental Schedule of non-cash investing and financing activities

In 2005, the Company declared and paid $200.0 million in dividends to its direct parent, Sun Life of Canada (U.S.) Holdings Inc. (the "Parent"), consisting of $150.6 million in cash and $49.4 million in notes. In 2004, the Company declared and paid cash dividends in the amount of $150.0 million and transferred via dividend its ownership of Sun Capital Advisers LLC. valued at $6.6 million to its indirect parent, Sun Life Assurance Company of Canada - U.S. Operations Holdings, Inc..

On April 19, 2005, the Company sold its interest in a consolidated variable interest entity ("VIE"). As a result of the sale, bonds decreased by $42.5 million, short-term investments decreased by $28.5 million, investment income due and accrued decreased by $0.3 million, other invested assets decreased by $3.2 million, other liabilities decreased by $26.1 million, deferred tax liability decreased by $3.9 million, and notes payable decreased by $33.5 million.

On December 31, 2004, the Company distributed through a dividend to the Parent its interest in Sun Capital Advisers LLC. As a result of the dividend, other assets decreased by $5.2 million, other liabilities decreased by $0.9 million, and accrued expenses and taxes decreased by $0.6 million in a non-cash transaction.

On June 30, 2004, the Company sold its interest in another consolidated VIE. As a result of the sale, bonds decreased by $51.0 million, other liabilities decreased by $11.1 million, deferred tax liability decreased by $3.8 million, notes payable decreased by $7.0 million, and other invested assets decreased by $0.6 million.

The accompanying notes are an integral part of the consolidated financial statements

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL

Sun Life Assurance Company of Canada (U.S.) (the "Company") and its subsidiaries are primarily engaged in the sale of individual and group variable life insurance, individual universal life insurance, individual and group fixed and variable annuities, funding agreements, group life, group disability, and group stop loss insurance. These products are distributed through individual insurance agents, financial planners, insurance brokers and broker-dealers to both the tax qualified and non-tax-qualified markets. The Company is authorized to transact business in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. In addition, the Company’s wholly-owned subsidiary, Sun Life Insurance and Annuity Company of New York ("SLNY"), is authorized to transact business in the State of New York.

The Company is a stock life insurance company incorporated under the laws of Delaware. The Company is a direct wholly-owned subsidiary of the Parent. The Company is an indirect wholly-owned subsidiary of Sun Life Assurance Company of Canada - U.S. Operations Holdings, Inc. ("SLC - U.S. Ops Holdings") and is an indirect wholly-owned subsidiary of Sun Life Financial Inc. ("SLF"), a reporting company under the Securities Exchange Act of 1934. SLF and its subsidiaries are collectively referred to herein as "Sun Life Financial."

As of December 31, 2004, SLC - U.S. Ops Holdings was a direct wholly-owned subsidiary of Sun Life Assurance Company of Canada ("SLOC"). SLOC is a life insurance company incorporated in 1865 and a direct wholly-owned subsidiary of SLF. On January 4, 2005, a reorganization was completed under which most of SLOC’s asset management businesses in Canada and the United States were transferred to Sun Life Financial Corp., a newly incorporated wholly-owned direct subsidiary of SLF. The Company is now an indirect subsidiary of Sun Life Financial Corp., and continues to be an indirect subsidiary of SLF.

On April 19, 2005, the Company sold its interest in a consolidated variable interest entity ("VIE") and recognized a gain of $6.1 million. The Company received net cash proceeds of $17.0 million and reduced consolidated assets and liabilities by $74.5 million and $63.6 million, respectively. The Company’s net income for the year ended December 31, 2005 included a net loss of $0.8 million related to this VIE.

On December 31, 2004, Sun Capital Advisers LLC ("SCA"), a registered investment adviser, was distributed in the form of a dividend to the Parent and became a consolidated subsidiary of the SLC - U.S. Ops Holdings. As a result of this transaction, SCA is no longer the Company’s wholly-owned subsidiary. As of December 31, 2004, SCA’s total assets were $8.1 million. SCA’s net income was $1.9 million for the year ended December 31, 2004.

On June 30, 2004, the Company sold its interest in another consolidated VIE and recognized a gain of $9.7 million. The Company received net cash proceeds of $39.7 million and reduced consolidated assets and liabilities by $51.6 million and $21.9 million, respectively. The Company’s net income related to this VIE for the year ended December 31, 2004, excluding the gain on the sale, was $7.1 million.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

BASIS OF PRESENTATION

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for stock life insurance companies.

The consolidated financial statements include the accounts of the Company and its subsidiaries. As of December 31, 2006, the Company directly or indirectly owned all of the outstanding shares or members interest of SLNY, which issues individual fixed and variable annuity contracts, group life, long-term disability and stop loss insurance, and individual life insurance in New York; Independence Life and Annuity Company, a life insurance company that sold variable and whole life insurance products; Clarendon Insurance Agency, Inc., a register broker-dealer; Sun Life of Canada (U.S.) SPE 97-I, Inc., organized for the purpose of engaging in activities incidental to securitizing mortgage loans; Sun Life of Canada (U.S.) Holdings General Partner LLC (the "General Partner"), the sole general partner of Sun Life of Canada (U.S.) Limited Partnership I; SLF Private Placement Investment Company I, LLC; Sun Parkaire Landing LLC; 7101 France Avenue Manager, LLC; Sun MetroNorth, LLC; and SLNY Private Placement Investment Company I, LLC. During 2005, Sun Benefit Services Company, Inc., an inactive subsidiary, was dissolved.

The General Partner is the sole general partner in Sun Life of Canada (U.S.) Limited Partnership I (the "Partnership") and, as a result, the Partnership is consolidated with the results of the Company. The Partnership was established to purchase subordinated debentures issued by the Parent and to issue partnership capital securities to an affiliated business trust, Sun Life of Canada (U.S.) Capital Trust I (the "Capital Trust").

On September 6, 2006 the Company entered into an agreement with Credit and Repackaged Securities Limited Series 2006-10 Trust (the "Trust"), whereby the Company is the sole beneficiary of the Trust. As the sole beneficiary of the Trust, the Company is required to consolidate the Trust under the requirements of Financial Accounting Standards Board ("FASB") Interpretation No. 46 (revised December 2003), "Consolidation of Variable Interest Entities, an interpretation of ARB No. 51." Accordingly, the assets and liabilities of the Trust are included in the Company’s consolidated financial statements. As of December 31, 2006, the Company recorded in its consolidated balance sheets $55.3 million of trading fixed maturities, $1.2 million of accrued investment income and $56.8 million of liabilities.

In addition, the Company had consolidated a certain interest in a VIE. The consolidation of the VIE required the Company to report its minority interest relating to the equity ownership not controlled by the Company. The Company’s interest in the VIE was sold on April 19, 2005.

The Company has a greater than or equal to 20% involvement in five VIEs at December 31, 2006. The Company is a creditor in three trusts and two limited liability companies that were used to finance commercial mortgages, franchise receivables and equipment used in utility generation. The Company’s maximum exposure to loss related to all of these VIEs is the investments’ carrying value, which was $30.1 million and $40.2 million at December 31, 2006 and 2005, respectively. The notes relating to the VIE’s mature between July 2007 and October 2024. See Note 4 for additional information with respect to leveraged leases which is not included above.

All intercompany transactions have been eliminated in consolidation.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

USE OF ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The most significant estimates are those used in determining the fair value of financial instruments, goodwill, DAC, VOBA, the liabilities for future contract and policyholder benefits and other-than-temporary impairments of investments. Actual results could differ from those estimates.

FINANCIAL INSTRUMENTS

In the normal course of business, the Company enters into transactions involving various types of financial instruments, including cash equivalents, fixed maturity investments, mortgage loans, equity securities, derivative financial instruments, debt, loan commitments and financial guarantees. These instruments involve credit risk and also may be subject to risk of loss due to interest rate fluctuation. The Company evaluates and monitors each financial instrument individually and, when appropriate, obtains collateral or other security to minimize losses.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents primarily include cash, commercial paper, money market investments and short-term bank participations. All such investments have maturities of three months or less when purchased and are considered cash equivalents for purposes of reporting cash flows.

INVESTMENTS

The Company accounts for its investments in accordance with Statement of Financial Accounting Standards ("SFAS") No. 115, "Accounting for Certain Investments in Debt and Equity Securities." At the time of purchase, fixed maturity securities are classified based on the Company’s intent as either held-to-maturity, trading or available-for-sale. In order for the security to be classified as held-to-maturity, the Company must have positive intent and ability to hold the securities to maturity. Securities held-to-maturity are stated at cost, adjusted for amortization of premiums and accretion of discounts. Securities that are bought and held principally for the purpose of selling them in the near term are classified as trading. Trading securities are carried at aggregate fair value with changes in unrealized gains or losses reported as a component of net investment income. Securities that do not meet the held-to-maturity or trading criterion are classified as available-for-sale. Included with available-for-sale fixed maturities are mortgage-backed securities in the To Be Announced form ("TBA"). The Company records TBA purchases on the trade date and the corresponding payable is recorded as an outstanding liability in the payable for investments purchased until the settlement date of the transaction. Available-for-sale securities are carried at fair value with the unrealized gains or losses reported in other comprehensive income.

Fair values for publicly traded securities are obtained from external market quotations. For privately-placed fixed maturities, fair values are estimated by taking into account prices for publicly-traded securities of similar credit risk, maturities repayment and liquidity characteristics. All security transactions are recorded on a trade date basis.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

INVESTMENTS (CONTINUED)

The Company's accounting policy for impairment requires recognition of an other-than-temporary impairment write-down on a security if it is determined that the Company will be unable to recover all amounts due under the contractual obligation of the security. Once an impairment charge has been recorded, the Company continues to review the other-than-temporarily impaired security for additional impairment, if necessary. Other-than-temporary impairments are reported as a component of net realized investment gains (losses).

Mortgage loans are stated at unpaid principal balances, net of provisions for estimated losses. Mortgage loans acquired at a premium or discount are carried at amortized values net of provisions for estimated losses. Mortgage loans, which include primarily commercial first mortgages, are diversified by property type and geographic area throughout the United States. Mortgage loans are collateralized by the related properties and generally are no more than 75% of the property’s value at the time that the original loan is made.

A loan is recognized as impaired when it is probable that the principal or interest is not collectible in accordance with the contractual terms of the loan. Measurement of impairment is based on the lower of the present value of expected future cash flows discounted at the loan's effective interest rate, or on the loan's observable market price. A specific valuation allowance is established if the fair value of the impaired loan is less than the recorded amount. Loans are also charged against the allowance when determined to be uncollectible. The allowance is based on a continuing review of the loan portfolio, past loss experience and current economic conditions, which may affect the borrower's ability to pay. While management believes that it uses the best information available to establish the allowance, future adjustments to the allowance may become necessary if economic conditions differ from the assumptions used in making the evaluation.

Real estate investments are held for the production of income or are held-for-sale. Real estate investments held for the production of income are carried at the lower of cost adjusted for accumulated depreciation or fair value. Depreciation of buildings and improvements is calculated using the straight-line method over the estimated useful life of the property, generally 40 to 50 years. Real estate investments held-for-sale are primarily acquired through foreclosure of mortgage loans. The cost of real estate that has been acquired through foreclosure is the estimated fair value less estimated costs to dispose at the time of foreclosure. Real estate investments are diversified by property type and geographic area throughout the United States.

Policy loans are carried at the amount of outstanding principal balance. Policy loans are collateralized by the related insurance policy and do not exceed the net cash surrender value of such policy.

Investments in private equity limited partnerships are accounted for by the equity method of accounting.

The Company uses derivative financial instruments including swaps, options and futures as a means of hedging exposure to interest rate, currency and equity price risk. Derivatives are carried at fair value and changes in fair value are recorded as a component of derivative income.

Realized gains and losses on the sales of investments are recognized in operations at the date of sale and are determined using the average cost method. When an impairment of a specific available-for-sale investment is determined to be other-than-temporary, a realized investment loss is recorded. Changes in the provision for estimated losses on mortgage loans and real estate are included in net realized investment gains and losses.

Interest income is recorded on the accrual basis. Investments are placed in a non-accrual status when management believes that the borrower's financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of principal and interest is doubtful. When an investment is placed in non-accrual status, all interest previously accrued is reversed against current period interest income. Interest accruals are resumed on such investments only when the investments have performed on a sustained basis for a reasonable period of time and when, in the judgment of management, the investments are estimated to be fully collectible as to both principal and interest.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

DEFERRED POLICY ACQUISITION COSTS

Acquisition costs consist of commissions, underwriting and other costs, which vary with and are primarily related to the production of new business. Acquisition costs related to investment-type contracts, primarily deferred annuity and guaranteed investment contracts ("GICs"), and universal and variable life products are deferred and amortized with interest in proportion to the present value of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits are composed of net investment income, net realized investment gains and losses, life and variable annuity fees, surrender charges, interest credited, policyholder benefits and direct variable administrative expenses. This amortization is reviewed regularly and adjusted, as appropriate, retrospectively when the Company records actual profits and revises its estimate of future gross profits to be realized from this group of products, including realized gains and losses from investments.

Although realization of DAC is not assured, the Company believes it is more likely than not that all of these costs will be realized. The amount of DAC considered realizable, however, could be reduced in the near term if the estimates of gross profits or total revenues discussed above are reduced.

DAC is also adjusted for amounts relating to unrealized investment gains and losses. This adjustment, net of tax, is included with unrealized investment gains or losses that are recorded in accumulated other comprehensive income (loss). DAC was increased (decreased) by $6.9 million and $(12.8) million at December 31, 2006 and 2005, respectively, to reflect unrealized losses and (gains).

VALUE OF BUSINESS ACQUIRED

VOBA represents the actuarially-determined present value of projected future gross profits from policies in force at the date of their acquisition. This amount is amortized in proportion to the projected emergence of profits over the estimated life of the purchased block of business.

VOBA is also adjusted for amounts relating to unrealized investment gains and losses. This adjustment, net of tax, is included with unrealized investment gains or losses that are recorded in accumulated other comprehensive income (loss). VOBA was increased (decreased) by $0.5 million and $(1.2) million at December 31, 2006 and 2005, respectively, to account for unrealized investment losses and (gains).

GOODWILL

Goodwill represents the difference between the purchase price paid and the fair value of the net assets acquired in connection with the acquisition of Keyport Life Insurance Company ("Keyport") on November 1, 2001. In accordance with SFAS No. 142, "Goodwill and Other Intangible Assets," goodwill is tested for impairment on an annual basis. The Company completed the required impairment tests of goodwill and indefinite-lived intangible assets during the second quarter of 2006 and concluded that these assets were not impaired.

OTHER ASSETS

Property, equipment, leasehold improvements and capitalized software costs that are included in other assets are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line or accelerated method over the estimated useful lives of the related assets, which generally range from 3 to 10 years.

Amortization of leasehold improvements is calculated using the straight-line method over the lesser of the term of the leases or the estimated useful life of the improvements. Intangible assets are also included in other assets.

Intangible assets acquired primarily consist of state insurance licenses that are not subject to amortization and of intangible assets related to product rights that have a weighted-average useful life of 7 years.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

POLICY LIABILITIES AND ACCRUALS

Future contract and policy benefit liabilities include amounts reserved for future policy benefits payable upon contingent events as well as liabilities for unpaid claims due as of the statement date. Such liabilities are established in amounts adequate to meet the estimated future obligations of policies in force.

Policy reserves for annuity contracts include liabilities held for group pension and payout annuity payments and liabilities held for product guarantees on variable annuity products, such as guaranteed minimum death benefits. Reserves for pension and payout annuity contracts are calculated using the best-estimate interest and decrement assumptions that were set at the time that loss recognition testing resulted in additional reserves. Loss recognition testing is done periodically to make sure that these assumptions remain adequate. Reserves for guaranteed minimum death benefits and guaranteed minimum income benefits are calculated according to the methodology of AICPA Statement of Position 03-1, "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts" ("SOP 03-1"), whereby the expected benefits provided by the guarantees are spread over the duration of the contract in proportion to the benefit assessments.

Policy reserves for universal life contracts are held for benefit coverages that are not fully provided for in the policy account value. These include rider coverages, conversions from group policies, and benefits provided under market conduct settlements.

Policy reserves for group life and health contracts are calculated using standard actuarial methods recognized by the American Academy of Actuaries. For the tabular reserves, discount rates are based on the Company’s earned investment yield and the morbidity and mortality tables used are standard industry tables modified to reflect the Company’s actual experience when appropriate. In particular, for the Company’s group known claim reserves, the mortality and morbidity tables for the early durations of claims are based exclusively on the Company’s experience, incorporating factors such as age at disability, sex and elimination period. These reserves are computed at amounts that, with interest compounded annually at assumed rates, are expected to meet the Company’s future obligations.

Liabilities for unpaid claims consist of the estimated amount payable for claims reported but not yet settled and an estimate of claims incurred but not reported. The amount reported is based upon historical experience, adjusted for trends and current circumstances. Management believes that the recorded liability is sufficient to provide for the associated claims adjustment expenses. Revisions of these estimates are included in operations in the year such refinements are made.

Contractholder deposit funds consist of policy values that accrue to the holders of universal life-type contracts and investment-related products such as deferred annuities, single premium whole life policies ("SPWL") and GICs. The liabilities consist of deposits received plus interest credited, less accumulated policyholder charges, assessments, partial withdrawals and surrenders. The liabilities are not reduced by surrender charges.

REVENUE AND EXPENSES

Premiums for traditional individual life products are considered earned revenue when due. Premiums related to group life, group stop loss and group disability insurance are recognized as earned revenue pro-rata over the contract period. The unexpired portion of these premiums is recorded as unearned premiums. Revenue from universal life-type products and investment-related products includes charges for the cost of insurance (mortality), initiation and administration of the policy and surrender charges. Revenue is recognized when the charges are assessed except that any portion of an assessment that relates to services to be provided in future years is deferred and recognized over the period during which the services are provided.

Benefits and expenses related to traditional life, annuity and disability contracts, including group policies, are recognized when incurred in a manner designed to match them with related premium revenue and to spread income recognition over the expected life of the policy. For universal life-type and investment-type contracts, expenses include interest credited to policyholders’ accounts and death benefits in excess of account values, which are recognized as incurred.

Fees from investment advisory services are recognized as revenues when the services are provided.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

INCOME TAXES

For the years ended December 31, 2006, 2005 and 2004, the Company participated in a consolidated federal income tax return with SLC - US Ops Holdings and other affiliates.

Deferred income taxes are generally recognized when assets and liabilities have different values for financial statement and tax reporting purposes, and for other temporary taxable and deductible differences as defined by SFAS No. 109, "Accounting for Income Taxes." These differences primarily relate from policy reserves, policy acquisition expenses and unrealized gains or losses on investments.

SEPARATE ACCOUNTS

The Company has established separate accounts applicable to various classes of contracts providing for variable benefits. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. Contracts for which funds are invested in separate accounts include variable life insurance and individual and group qualified and non-qualified variable annuity contracts. Investment income and changes in mutual fund asset values are allocated to policyholders and therefore do not affect the operating results of the Company. Assets held in the separate accounts are carried at fair value and the investment risk of such securities is retained by the contractholder. The Company earns separate account fees for providing administrative services and bearing the mortality risks related to these contracts. The activity of the separate accounts is not reflected in the consolidated financial statements except for: (1) the fees the Company receives, which are assessed periodically and recognized as revenue when assessed; and (2) the activity related to the guaranteed minimum death benefit ("GMDB"), guaranteed minimum income benefit (‘GMIB’), guaranteed minimum accumulation benefit ("GMAB") and guaranteed minimum withdrawal benefit (‘GMWB’) which is reflected in the Company’s consolidated financial statements and accompanying notes.

ACCOUNTING PRONOUNCEMENTS

New and Adopted Accounting Pronouncements

On September 29, 2006, the FASB issued SFAS No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans," which amends SFAS No. 87 and SFAS No. 106 to require recognition of the overfunded or underfunded status of pension and other postretirement benefit plans on the balance sheet. Under SFAS No. 158, gains and losses, prior service costs and credits, and any remaining transition amounts under SFAS No. 87 and SFAS No. 106 that have not yet been recognized through net periodic benefit cost will be recognized in accumulated other comprehensive income, net of tax effects, until they are amortized as a component of net periodic cost. The measurement date is required to be the company's fiscal year end. SFAS No. 158 is effective for publicly-held companies for fiscal years ending after December 15, 2006, except for the measurement date provisions, which are effective for fiscal years ending after December 15, 2008. See Note 9 with respect to the effects of adoption of SFAS No. 158 on the Company.

In September 2006, the Securities and Exchange Commission ("SEC") Staff issued Staff Accounting Bulletin ("SAB") No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements" ("SAB No. 108"), which addresses how the effects of prior year uncorrected financial statement misstatements should be considered in current year financial statements. SAB No. 108 requires registrants to quantify misstatements using both balance sheet and income statement approaches and to evaluate whether either approach results in quantifying an error that is material in light of relative quantitative and qualitative factors. The requirements of SAB No. 108 are effective for annual financial statements covering the first fiscal year ending after November 15, 2006. The Company’s adoption of SAB No. 108 during the year ended December 31, 2006 had no impact on the Company’s consolidated financial statements.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ACCOUNTING PRONOUNCEMENTS (CONTINUED)

New and Adopted Accounting Pronouncements (continued)

In November of 2005, the FASB issued FASB Staff Position ("FSP") 115-1 and 124-1 "The Meaning of Other-Than-Temporary Impairments and its Application to Certain Investments." This FSP is effective for reporting periods beginning after December 15, 2005. The FSP addresses the determination as to when an investment is considered impaired, whether that impairment is other than temporary, and the measurement of the impairment loss. The statement also includes accounting guidance for periods subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than-temporary impairments. Adoption of this FSP did not impact the methodology used by the Company to determine and measure impaired investments. See disclosure in Note 4.

In May of 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections - a replacement of APB Opinion No. 20 and FASB Statement No. 3" ("SFAS No. 154"). This statement is effective for fiscal years beginning after December 15, 2005. SFAS No. 154 changes the requirements for the accounting and reporting of a change in accounting principle and applies to all voluntary changes in accounting principle. The statement eliminates the requirement in APB 20 to include the cumulative effect of a change in accounting in the income statement in the period of change and requires retrospective applications to prior periods’ financial statements of changes in accounting principle, unless it is impracticable to determine either the specific period effects or the cumulative effect of the change. SFAS No. 154 applies to changes required by new accounting pronouncements only when the pronouncement does not include specific transition guidance. The adoption of SFAS No. 154 did not have a material impact on the Company’s consolidated financial statements.

On January 1, 2004, the Company adopted SOP 03-1. The major provisions of SOP 03-1 that affect the Company require:

o Establishment of reserves primarily related to death benefit and income benefit guarantees provided under variable annuity contracts;

o Deferral of sales inducements that meet certain criteria, and amortization using the same method used for DAC; and

o Reporting and measuring the Company’s interest in its separate accounts as investments.

See Footnote 12 for additional information regarding the impact of adoption of SOP 03-1.

Accounting Standards Not Yet Adopted

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities" ("SFAS No. 159"), which permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reporting earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. SFAS No. 159 is effective for fiscal years beginning after November 15, 2007 and all interim periods within those fiscal years. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of SFAS No. 157, "Fair Value Measurements." The Company is currently evaluating the impact, if any, that SFAS No. 159 may have on the Company’s consolidated financial statements.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS No. 157"), which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007 and all interim periods within those fiscal years. Earlier application is permitted provided that the reporting entity has not yet issued interim or annual financial statements for that fiscal year. The Company is currently evaluating the impact, if any, that SFAS No. 157 may have on the Company’s consolidated financial statements.

In June 2006, the FASB issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109" ("FIN 48").

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ACCOUNTING PRONOUNCEMENTS (CONTINUED)

Accounting Standards Not Yet Adopted (continued)

FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Company is currently assessing the impact, if any, of FIN 48 on its consolidated financial statements.

In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing of Financial Assets" ("SFAS No. 156"), an amendment to SFAS No. 140. SFAS No. 156 requires all separately recognized servicing assets and liabilities to be initially measured at fair value and permits entities to choose to either subsequently measure servicing rights at fair value and report changes in fair value in earnings, or amortize servicing rights in proportion to, and over the estimated net servicing income or loss and assess the rights for impairment or the need for an increased obligation. The option to subsequently measure servicing rights at fair value will allow entities which utilize derivative instruments to hedge their servicing rights to account for such hedging relationships at fair value and avoid the complications of hedge accounting under SFAS No. 133. SFAS No. 156 is effective for fiscal years beginning after September 15, 2006. Earlier application is permitted provided that the reporting entity has not yet issued interim or annual financial statements for that fiscal year. The adoption of this statement will not have a material impact on the Company’s financial position or results of operations.

In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid Instruments" ("SFAS No. 155"), an amendment to SFAS No. 133 and SFAS No. 140. Among other things, SFAS No. 155: (i) permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation; (ii) clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS No. 133; (iii) establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (iv) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (v) amends SFAS No. 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. SFAS No. 155 is effective for all financial instruments acquired, issued, or subject to a remeasurement (new basis) event occurring after the beginning of an entity’s first fiscal year beginning after September 15, 2006. At initial application of SFAS No. 155, the fair value election provided for in paragraph 4(c) may be applied for hybrid financial instruments that were bifurcated under paragraph 12 of SFAS No. 133 prior to the initial application of SFAS No. 155.

In January 2007, the FASB provided a scope exception under SFAS No. 155 for securitized interests that only contain an embedded derivative that is tied to the prepayment risk of the underlying prepayable financial assets, and for which the investor does not control the right to accelerate the settlement. If a securitized interest contains any other embedded derivative (for example, an inverse floater), then it would be subject to the bifurcation tests in SFAS No. 133, as would securities purchased at a significant premium. Following the issuance of the scope exception by the FASB, changes in the market value of the Company’s investment securities would continue to be made through other comprehensive income, a component of stockholders’ equity. The Company does not expect that the January 1, 2007 adoption of SFAS No. 155 will have a material impact on the Company’s financial position, results of operations or cash flows. However, to the extent that certain of the Company’s future investments in securitized financial assets do not meet the scope exception adopted by the FASB, the Company’s future results of operations may exhibit volatility if such investments are required to be bifurcated or marked to market value in their entirety through the income statement, depending on the election made by the Company.

In September of 2005, the American Institute of Certified Public Accountants (the "AICPA") issued Statement of Position 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts" ("SOP 05-1"). SOP 05-1 provides guidance on accounting by insurance companies for DAC on internal replacements other than those specifically described in SFAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments." SOP 05-1 is effective for internal replacements occurring in fiscal years beginning after December 15, 2006. The adoption of SOP 05-1 is not expected to have a material impact on the Company’s financial position or results of operations.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

2. MERGERS, ACQUISITIONS AND DISPOSITIONS

On September 6, 2006, the Company entered into an agreement with the Trust, whereby the Company is the sole beneficiary of the Trust. As of December 31, 2006, total assets of the Trust were $56.6 million. As the sole beneficiary of the Trust, the Company is required to consolidate this Trust under the requirements of FASB Interpretation No. 46 (revised December 2003), "Consolidation of Variable Interest Entities, an interpretation of ARB No. 51." Accordingly, the assets and liabilities of the Trust are included in the Company’s consolidated financial statements. As of December 31, 2006, the Company recorded in its consolidated balance sheets $55.3 million of trading fixed maturities, $1.2 million of accrued investment income and $56.8 million of liabilities.

On April 19, 2005, the Company sold its interest in a consolidated VIE and recognized a gain of $6.1 million. The Company received net cash proceeds of $17.0 million and reduced consolidated assets and liabilities by $74.5 million and $63.6 million, respectively. The Company’s net income for the year ended December 31, 2005 includes a net loss of $0.8 million related to this VIE.

On December 31, 2004, SCA, a registered investment adviser and a wholly-owned subsidiary of the Company, was distributed in the form of a dividend to the Parent and became a consolidated subsidiary of SLC - U.S. Ops Holdings. As a result of this transaction, SCA is no longer the Company’s wholly-owned subsidiary. As of December 31, 2004, SCA’s net assets were $8.1 million. SCA’s net income for the year ended December 31, 2004 was $1.9 million.

On June 30, 2004, the Company sold its interest in another consolidated VIE and recognized a gain of $9.7 million. The Company received net cash proceeds of $39.7 and reduced consolidated assets and liabilities by $51.6 million and $21.9 million, respectively. The Company’s net income for the year ended December 31, 2004 includes net income of $7.1 million related to this VIE.

3. SIGNIFICANT TRANSACTIONS WITH AFFILIATES

Below is a summary of affiliated transactions for those affiliates that are not consolidated within the Company.

The Company and its subsidiaries have administrative services agreements with SLOC which provides that SLOC will furnish, as requested, certain services and facilities on a cost-reimbursement basis. Expenses under these agreements amounted to approximately $9.4 million, $11.3 million and $24.4 million for the years ended December 31, 2006, 2005 and 2004, respectively.

In accordance with an administrative service agreement between the Company and SLOC, the Company provides personnel and certain services to SLOC, as requested. Reimbursements under this agreement, which are recorded as a reduction of other operating expenses, were approximately $212.4 million, $170.4 million and $136.8 million for the years ended December 31, 2006, 2005 and 2004, respectively.

The Company has an administrative service agreement with Sun Life Information Services Canada, Inc. ("SLISC") 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 amounted to approximately $10.7 million and $5.8 million for the years ended December 31, 2006 and 2005, respectively. There were no expenses incurred for the year ended December 31, 2004.

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 $19.6 million, $13.9 million and $10.4 million for the years ended December 31, 2006, 2005 and 2004, respectively.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

3. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED)

The Company has an administrative services agreement with SLC - U.S. Ops Holdings 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 amounted to approximately $22.6 million, $23.4 million and $22.8 million for the years ended December 31, 2006, 2005 and 2004, respectively.

The Company leases office space to SLOC under lease agreements with terms expiring in December 31, 2009 and options to extend the terms for each of twelve successive five-year terms at fair market value of the fixed rent for the term which is then ending. Rent received by the Company under the leases amounted to approximately $10.6 million, $10.6 million, and $11.8 million in 2006, 2005 and 2004, respectively. Rental income is reported as a component of net investment income.

As more fully described in Note 8, the Company has been involved in several reinsurance transactions with SLOC.

In 2006, the Company declared and paid $300.0 million in cash dividends to the Parent. In 2005, the Company declared and paid $200.0 million in dividends to the Parent, consisting of $150.6 million in cash and $49.4 million in notes. In 2004, the Company declared and paid cash dividends in the amount of $150.0 million and transferred via dividend its ownership of SCA valued at $6.6 million to its indirect parent, SLC - U.S. Ops Holdings.

On December 31, 2004, the Company received a $60.0 million capital contribution from its indirect parent, SLC - U.S. Ops Holdings.

In 2004, the employees of the Company became participants in a restricted share unit ("RSU") plan with its indirect parent, SLF. Under the RSU plan, participants are granted units that are equivalent to one common share of SLF stock and have a fair market value of a common share of SLF stock on the date of grant. RSUs earn dividend equivalents in the form of additional RSUs at the same rate as the dividends on common shares of SLF stock. The redemption value, upon vesting, is the fair market value of an equal number of common shares of SLF stock. The Company incurred expenses of $7.3 million, $7.0 million and $4.1 million relating to RSUs for the years ended December 31, 2006, 2005 and 2004, respectively.

In 2006, the Company recorded a tax benefit of $4.5 million through paid-in-capital for SLF stock options issued to employees of the Company for the year ended December 31, 2006. In 2005, the Company recorded a tax benefit of $7.0 million through paid-in-capital for stock options issued to employees of the Company during 2001 through 2005. The $7.0 million tax benefit is comprised of a $2.5 million tax benefit on expenses accrued at its indirect parent, SLF, and a $4.5 million adjustment to record the excess tax benefit over the recorded book expense for stock options exercised.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

3. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED)

At December 31, 2006, the Company had $460.0 million in promissory notes maturing June 30, 2012 issued to an affiliate, Sun Life (Hungary) Group Financing Limited Liability Company ("Sun Life (Hungary) LLC"). The Company pays interest semi-annually to Sun Life (Hungary) LLC. The Company expensed $26.5 million for interest on these promissory notes for each of the years ended December 31, 2006, 2005 and 2004, respectively. The proceeds of the notes were used to purchase fixed-rate government and corporate bonds.

At December 31, 2006 and 2005, the Company had $565.0 million of surplus notes issued to Sun Life Financial (U.S.) Finance, Inc., an affiliate of the Company. The Company expensed $42.6 million for interest on these surplus notes for each of the years ended December 31, 2006, 2005 and 2004, respectively.

At December 31, 2006 and 2005, the Company, through the Partnership, had $600 million of 8.526% partnership capital securities issued to the Capital Trust. The Company expensed $51.2 million for interest on these partnership capital securities for each of the years ended December 31, 2006, 2005 and 2004, respectively.

At December 31, 2006 and 2005, the Company, through the Partnership, owned $600 million of 8.526% subordinated notes issued by the Parent. Interest earned on these notes was $51.2 million for each of the years ended December 31, 2006, 2005 and 2004, respectively.

The Company purchased a total of $140.0 million in promissory notes from MFS in 2004 and 2003. Interest earned for the years ended December 31, 2005 and 2004 was $4.2 million and $4.0 million, respectively. As of December 31, 2005, the Company sold and transferred these notes to affiliates. On December 31, 2005, the Company sold notes with a par value of $90.0 million to an affiliate, Sun Life (Hungary) LLC, and recognized a loss of $3.3 million. On September 23, 2005, the Company transferred notes with a par value of $50.0 million to the Parent as a dividend. The Company recognized a loss of $0.6 million on the transfer of these notes to the Parent.

During the years ended December 31, 2006, 2005 and 2004, the Company paid $24.3 million, $23.2 million and $35.0 million, respectively, in commission fees to an affiliate, Sun Life Financial Distributors, Inc., ("SLFD"). The Company also has an agreement with SLFD and the Parent whereby the Parent provides expense reimbursements to the Company for administrative services provided by the Company to SLFD. The Company received reimbursement of $3.2 million for the year ended December 31, 2006 related to this agreement. In addition, the Company received fee income for administrative services provided to SLFD of $7.1 million and $5.9 million for the years ended December 31, 2005 and 2004, respectively.

During the years ended December 31, 2006, 2005 and 2004, the Company paid $20.1 million, $25.1 million and $45.1 million, respectively, in commission fees to Independent Financial Marketing Group, Inc., an affiliate.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

3. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED)

The Company has an administrative services agreement with SCA 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 $1.5 million and $2.4 million for the year ended December 31, 2006 and 2005. SCA was a consolidated entity of the Company through December 31, 2004.

The Company paid $14.9 million and $16.4 million for the years ended December 31, 2006 and 2005 in investment management services fees to SCA, an affiliate and registered investment adviser.

On September 12, 2006, the Company entered into a Terms Agreement (the "2006-B Terms Agreement") with its affiliates Sun Life Financial Global Funding III, L.P. (the "Issuer III"), Sun Life Financial Global Funding III, U.L.C. (the "ULC III") and Sun Life Financial Global Funding III, L.L.C. (the "LLC III"), and with Citigroup Global Markets, Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. Incorporated, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, RBC Capital Markets Corporation and Wachovia Capital Markets (each, an "Initial Purchaser" and collectively, the "2006-B Initial Purchasers"), in connection with the offer and sale by the Issuer III of $750 million of Series 2006-1 Floating Rate Notes due 2013 ("2006-B Notes"). On September 21, 2006, the Company entered into another Terms Agreement (together with the original 2006-B Terms Agreement, the "2006-B Terms Agreements") with the same parties as the original 2006-B Terms Agreement in connection with the offer and sale by the Issuer III of a second tranche of $150 million of 2006-B Notes. The payment obligations of the Issuer III for the full $900 million of 2006-B Notes are unconditionally guaranteed by the LLC III pursuant to a guarantee (the "2006-B Secured Guarantee") dated as of September 19, 2006, and the obligations of the LLC III under the 2006-B Secured Guarantee are secured by two floating rate funding agreements issued by the Company to the LLC III, one for $750 million issued on September 19, 2006 and another for $150 million issued on September 29, 2006. Total interest credited for the funding agreements was $14.9 million for the year ended December 31, 2006.

The 2006-B Terms Agreements incorporate by reference the provisions of a Purchase Agreement dated as of September 5, 2006 by and among the Issuer III, the ULC III, the LLC III, the Company and all of the 2006-B Initial Purchasers. Pursuant to these incorporated provisions, the Company has agreed, among other things, to indemnify each 2006 Initial Purchaser against certain securities law liabilities related to the offering of the 2006-B Notes.

In addition, the Company issued a $100 million floating rate demand note payable to the LLC III on September 19, 2006. The Company expensed $1.7 million for interest on this demand note for the year ended December 31, 2006.

The Company has entered into an interest rate swap agreement with the LLC III with an aggregate notional amount of $900 million that effectively converts the floating rate payment obligations under the funding agreements to fixed rate obligations.

On May 17, 2006, the Company entered into a Terms Agreement (the "2006-A Terms Agreement") with its affiliates Sun Life Financial Global Funding II, L.P. (the "Issuer II"), Sun Life Financial Global Funding II, U.L.C. (the "ULC II") and Sun Life Financial Global Funding II, L.L.C. (the "LLC II"), and with Citigroup Global Markets, Inc. ("Citigroup"), Morgan Stanley & Co. Incorporated ("Morgan Stanley"), Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and RBC Capital Markets Corporation (collectively, with Citigroup and Morgan Stanley, the "2006-A Initial Purchasers"), in connection with the offer and sale by the Issuer II of $900 million of Series 2006-1 Floating Rate Notes due 2011 (the "2006-A Notes"). The payment obligations of the Issuer II are unconditionally guaranteed by the LLC II pursuant to a guarantee (the "2006-A Secured Guarantee"), and the obligations of the LLC II under the 2006-A Secured Guarantee are secured by a $900 million floating rate funding agreement issued by the Company to the LLC II. The 2006-A Terms Agreement incorporates by reference the provisions of a Purchase Agreement dated as of May 15, 2006 by and among the Issuer II, the ULC II, the LLC II, the Company and the 2006-A Initial Purchasers. Pursuant to these incorporated provisions, the Company has agreed, among other things, to indemnify each 2006 Initial Purchaser against certain securities law liabilities related to the offering of the 2006-A Notes. Total interest credited for the funding agreement was $30.7 million for the year ended December 31, 2006.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

3. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED)

On May 24, 2006, the Company also issued a $100 million floating rate demand note payable to the LLC II. The Company expensed $3.4 million for interest on this demand note for the year ended December 31, 2006.

The Company has entered into an interest rate swap agreement with the LLC II with an aggregate notional amount of $900 million that effectively converts the floating rate payment obligations under the funding agreement to fixed rate obligations. The net interest payable under this swap agreement was $0.2 million at December 31, 2006.

On June 3, 2005, the Company entered into a Terms Agreement (the "2005 Terms Agreement") with its affiliates, Sun Life Financial Global Funding, L.P. (the "Issuer"), Sun Life Financial Global Funding, U.L.C. (the "ULC") and Sun Life Financial Global Funding, L.L.C. (the "LLC"), and with Citigroup, Morgan Stanley, Banc of America Securities LLC, Credit Suisse First Boston LLC, J.P. Morgan Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and RBC Capital Markets Corporation (collectively, the "2005 Initial Purchasers"), in connection with the offer and sale by the Issuer of $600 million of Series 2005-1 Floating Rate Notes due 2010 (the "First Tranche Notes").

On June 29, 2005, the Company entered into a Second Terms Agreement (the "Second 2005 Terms Agreement") with the Issuer, the ULC and the LLC, and with Citigroup and Morgan Stanley, in connection with the offer and sale by the Issuer of $300 million of Series 2005-1 Floating Rate Notes due 2010 (the "Second Tranche Notes").

The payment obligations of the Issuer under the First Tranche Notes and the Second Tranche Notes are unconditionally guaranteed by the LLC pursuant to a guarantee (the "2005 Secured Guarantee") dated as of June 10, 2005, and the obligations of the LLC under the 2005 Secured Guarantee are secured by two floating rate funding agreements issued by the Company to the LLC, one for $600 million issued on June 10, 2005 and one for $300 million issued on July 5, 2005. The Company issued a total of $900 million funding agreements to the LLC in connection with the First Tranche Notes and Second Tranche Notes. The Terms Agreement and the Second Terms Agreement incorporate by reference the provisions of a Purchase Agreement dated as of November 11, 2004 by and among the Issuer, the ULC, the LLC, the Company, and the 2005 Initial Purchasers. Pursuant to these incorporated provisions, the Company has agreed, among other things, to indemnify each 2005 Initial Purchaser against certain securities law liabilities related to the offering of the First Tranche Notes and the Second Tranche Notes.

Total interest credited for the funding agreements associated with the First Tranche Notes and Second Tranche Notes was $49.5 million and $20.7 million for the years ended December 31, 2006 and 2005, respectively.

On June 10, 2005, the Company issued a $100 million floating rate demand note payable to the LLC. The Company expensed $5.5 million and $2.3 million for interest on the demand note for the years ended December 31, 2006 and 2005, respectively.

The Company has entered into two interest rate swap agreements with the LLC with an aggregate notional amount of $900 million that effectively convert the floating rate payment obligations under the funding agreements to fixed rate obligations. The net interest (payable) receivable under these swap agreements was $(0.5) million and $0.1 million at December 31, 2006 and 2005, respectively.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

3. SIGNIFICANT TRANSACTIONS WITH AFFILIATES (CONTINUED)

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.

The following table lists the details of notes due to affiliates at December 31, 2006 (in 000’s):

Payees	Type	Rate	Maturity	Principal	Interest Expense
Sun Life Financial (U.S.) Finance, Inc.	Surplus	8.625%	11/06/2027	$ 250,000	$ 21,563
Sun Life Financial (U.S.) Finance, Inc.	Surplus	6.150%	12/15/2027	150,000	9,225
Sun Life Financial (U.S.) Finance, Inc.	Surplus	7.250%	12/15/2015	150,000	10,875
Sun Life Financial (U.S.) Finance, Inc.	Surplus	6.125%	12/15/2015	7,500	459
Sun Life Financial (U.S.) Finance, Inc.	Surplus	6.150%	12/15/2027	7,500	461
Sun Life (Hungary) LLC	Promissory	5.760%	06/30/2012	380,000	21,888
Sun Life (Hungary) LLC	Promissory	5.710%	06/30/2012	80,000	4,568
Sun Life Financial Global Funding I, L.L.C.	Demand	Libor plus 0.35%	07/6/2010	100,000	5,518
Sun Life Financial Global Funding II, L.L.C.	Demand	Libor plus 0.26%	07/6/2011	100,000	3,428
Sun Life Financial Global Funding III, L.L.C.	Demand	Libor plus 0.35%	10/6/2013	100,000	1,660
				$ 1,325,000	$ 79,645

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS

Fixed Maturities

The amortized cost and fair value of fixed maturities at December 31, 2006, was as follows:

		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale fixed maturities:
Asset Backed and Mortgage Backed Securities	$ 4,415,712	$ 38,390	$ (58,980)	$ 4,395,122
Foreign Government & Agency Securities	79,319	3,512	(283)	82,548
States & Political Subdivisions	495	32	-	527
U.S. Treasury & Agency Securities	307,580	2,637	(4,027)	306,190
Corporate securities:
Basic Industry	204,355	4,217	(3,182)	205,390
Capital Goods	520,338	11,507	(3,973)	527,872
Communications	1,163,026	20,149	(24,077)	1,159,098
Consumer Cyclical	1,051,633	10,127	(28,599)	1,033,161
Consumer Noncyclical	364,459	7,847	(2,302)	370,004
Energy	350,930	6,226	(3,547)	353,609
Finance	3,201,774	43,217	(33,235)	3,211,756
Industrial Other	228,442	7,446	(629)	235,259
Technology	22,779	357	(852)	22,284
Transportation	307,542	10,418	(5,458)	312,502
Utilities	1,405,066	35,310	(17,725)	1,422,651
Total Corporate	8,820,344	156,821	(123,579)	8,853,586
Total available-for-sale fixed maturities	$ 13,623,450	$ 201,392	$ (186,869)	$ 13,637,973
Held-to-maturity fixed maturities:
Sun Life of Canada (U.S.) Holdings, Inc.,
8.526% subordinated debt, due 2027	$ 600,000	$ 30,751	$ -	$ 630,751
Total held-to-maturity fixed maturities	$ 600,000	$ 30,751	$ -	$ 630,751
	Amortized	Gross	Gross
	Cost	Gains	Losses	Fair Value
Trading fixed maturities:
Asset Backed and Mortgage Backed Securities	$ 353,571	$ 3,851	$ (3,479)	$ 353,943
Foreign Government & Agency Securities	40,274	710	(152)	40,832
U.S. Treasury & Agency Securities	796	10	-	806
Corporate securities:
Basic Industry	8,237	596	-	8,833
Capital Goods	71,060	540	-	71,600
Communications	735,753	5,378	(5,077)	736,054
Consumer Cyclical	279,856	2,628	(3,550)	278,934
Consumer Noncyclical	159,221	633	(901)	158,953
Energy	20,620	2,388	-	23,008
Finance	1,742,731	14,625	(7,385)	1,749,971
Industrial Other	55,950	405	(839)	55,516
Transportation	48,887	1,873	(672)	50,088
Utilities	321,776	7,476	(1,737)	327,515
Total Corporate	3,444,091	36,542	(20,161)	3,460,472
Total trading fixed maturities	$ 3,838,732	$ 41,113	$ (23,792)	$ 3,856,053

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

The amortized cost and fair value of fixed maturities at December 31, 2005, was as follows:

		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale fixed maturities:
Asset Backed and Mortgage Backed Securities	$ 5,234,792	$ 40,958	$ (74,124)	$ 5,201,626
Foreign Government & Agency Securities	86,360	2,965	(64)	89,261
States & Political Subdivisions	742	24	-	766
U.S. Treasury & Agency Securities	449,877	4,773	(4,286)	450,364
Corporate securities:
Basic Industry	228,782	6,192	(3,384)	231,590
Capital Goods	602,974	20,310	(4,507)	618,777
Communications	1,285,638	32,582	(24,476)	1,293,744
Consumer Cyclical	1,321,417	16,741	(62,470)	1,275,687
Consumer Noncyclical	548,636	16,985	(6,206)	559,415
Energy	445,207	15,281	(2,225)	458,264
Finance	3,167,168	50,719	(28,844)	3,189,043
Industrial Other	246,421	9,913	(1,029)	255,305
Technology	49,288	853	(1,127)	49,014
Transportation	409,812	17,786	(7,739)	419,859
Utilities	1,543,713	54,264	(13,544)	1,584,433
Total Corporate	9,849,056	241,626	(155,551)	9,935,131
Total available-for-sale fixed maturities	$ 15,620,827	$ 290,346	$ (234,025)	$ 15,677,148
Held-to-maturity fixed maturities:
Sun Life of Canada (U.S.) Holdings, Inc.,
8.526% subordinated debt, due 2027	$ 600,000	$ 45,755	$ -	$ 645,755
Total held-to-maturity fixed maturities	$ 600,000	$ 45,755	$ -	$ 645,755
	Amortized	Gross	Gross
	Cost	Gains	Losses	Fair Value
Trading fixed maturities:
Asset Backed and Mortgage Backed Securities	$ 209,548	$ 1,915	$ (3,776)	$ 207,687
Foreign Government & Agency Securities	19,516	-	(136)	19,380
Corporate securities:
Basic Industry	8,649	783	-	9,432
Capital Goods	15,651	751	-	16,402
Communications	343,647	3,607	(8,542)	338,712
Consumer Cyclical	246,522	2,615	(6,160)	242,977
Consumer Noncyclical	84,411	712	(2,370)	82,753
Energy	27,675	3,187	-	30,862
Finance	713,043	13,996	(8,285)	718,754
Industrial Other	47,464	798	(928)	47,334
Technology	3,801	82	-	3,883
Transportation	60,950	2,588	(4,696)	58,842
Utilities	201,885	8,244	(2,299)	207,830
Total Corporate	1,753,698	37,363	(33,280)	1,757,781
Total trading fixed maturities	$ 1,982,762	$ 39,278	$ (37,192)	$ 1,984,848

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

The amortized cost and estimated fair value by maturity periods for fixed maturity investments are shown below. Actual maturities may differ from contractual maturities on asset-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

			December 31, 2006
			Amortized Cost	Fair Value
Maturities of available-for-sale fixed securities:
	Due in one year or less		$ 410,397	$ 410,402
	Due after one year through five years		2,206,629	2,226,776
	Due after five years through ten years		3,807,300	3,791,183
	Due after ten years		2,783,412	2,814,491
Subtotal - Maturities available-for-sale			9,207,738	9,242,852
Asset-backed securities			4,415,712	4,395,121
Total Available-for-sale			$ 13,623,450	$ 13,637,973
Maturities of trading fixed securities:
	Due in one year or less		$ 138,476	$ 138,797
	Due after one year through five years		1,342,987	1,345,899
	Due after five years through ten years		1,757,081	1,764,447
	Due after ten years		246,617	252,968
	Subtotal - Maturities of trading		3,485,161	3,502,111
Asset-backed securities			353,571	353,942
	Total Trading		$ 3,838,732	$ 3,856,053
Maturities of held-to-maturity fixed securities:
		Due after ten years	$ 600,000	$ 630,751

Gross gains of $39.2 million, $61.0 million and $152.5 million and gross losses of $92.3 million, $38.9 million and $45.4 million were realized on the sale of fixed maturities for the years ended December 31, 2006, 2005 and 2004, respectively.

Fixed maturities with an amortized cost of approximately $12.0 million and $10.9 million at December 31, 2006 and 2005, respectively, were on deposit with federal and state governmental authorities as required by law.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

As of December 31, 2006 and 2005, 96.5% and 94.7%, respectively, of the Company's fixed maturities were investment grade. Investment grade securities are those that are rated "BBB" or better by nationally recognized statistical rating organizations. During 2006, 2005 and 2004, the Company incurred realized losses totaling $6.3 million, $29.7 million and $32.5 million, respectively, for other-than-temporary impairment of value of some of its fixed maturities after determining that not all of the unrealized losses were temporary in nature.

The Company has discontinued accruing income on all of its holdings for issuers that are in default. The termination of accrual accounting on these holdings reduced previously accrued income by $0.6 million, $1.7 million and $7.0 million for the years ended December 31, 2006, 2005 and 2004, respectively. The fair market value of these investments was $24.4 million and $29.8 million for the years ended December 31, 2005 and 2004, respectively. As of December 31, 2006, the Company did not have any holding for issuers that were in default.

The following table provides the fair value and gross unrealized losses of the Company’s available-for-sale fixed maturities investments, which were deemed to be temporarily impaired, aggregated by investment category, industry sector and length of time that individual securities have been in an unrealized loss position, at December 31, 2006:

	Less Than Twelve Months		Twelve Months Or More		Total
Corporate Securities
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
Basic Industry	$ 7,750	$ (109)	$ 43,426	$ (3,073)	$ 51,176	$ (3,182)
Capital Goods	50,624	(399)	108,017	(3,574)	158,641	(3,973)
Communications	228,260	(4,389)	292,442	(19,688)	520,702	(24,077)
Consumer Cyclical	175,557	(3,380)	514,067	(25,219)	689,624	(28,599)
Consumer Noncyclical	138,379	(942)	33,801	(1,360)	172,180	(2,302)
Energy	75,777	(1,357)	43,064	(2,190)	118,841	(3,547)
Finance	482,642	(5,525)	874,370	(27,710)	1,357,012	(33,235)
Industrial Other	14,092	(15)	11,214	(614)	25,306	(629)
Technology	-	-	13,938	(852)	13,938	(852)
Transportation	30,905	(207)	111,423	(5,251)	142,328	(5,458)
Utilities	252,419	(3,303)	429,194	(14,422)	681,613	(17,725)
Total Corporate	1,456,405	(19,626)	2,474,956	(103,953)	3,931,361	(123,579)
Non-Corporate
Asset Backed and Mortgage Backed Securities	912,875	(5,565)	1,978,436	(53,415)	2,891,311	(58,980)
Foreign Government & Agency Securities	-	-	13,865	(283)	13,865	(283)
U.S. Treasury & Agency Securities	147,386	(2,026)	86,591	(2,001)	233,977	(4,027)
Total Non-Corporate	1,060,261	(7,591)	2,078,892	(55,699)	3,139,153	(63,290)
Grand Total	$2,516,666	$(27,217)	$ 4,553,848	$(159,652)	$7,070,514	$ (186,869)

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

The following table provides the fair value and gross unrealized losses of the Company’s available-for-sale fixed maturities investments, which were deemed to be temporarily impaired, aggregated by investment category, industry sector and length of time that individual securities have been in an unrealized loss position, at December 31, 2005:

	Less Than Twelve Months		Twelve Months Or More		Total
Corporate Securities
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
Basic Industry	$ 62,351	$ (1,334)	$ 47,710	$ (2,050)	$ 110,061	$ (3,384)
Capital Goods	37,622	(476)	172,069	(4,031)	209,691	(4,507)
Communications	207,469	(12,291)	284,749	(12,185)	492,218	(24,476)
Consumer Cyclical	475,628	(31,554)	352,308	(30,916)	827,936	(62,470)
Consumer Noncyclical	82,655	(3,602)	116,271	(2,604)	198,926	(6,206)
Energy	44,087	(739)	56,103	(1,486)	100,190	(2,225)
Finance	754,646	(13,576)	685,785	(15,268)	1,440,431	(28,844)
Industrial Other	12,450	(535)	17,657	(494)	30,107	(1,029)
Technology	18,971	(829)	6,703	(298)	25,674	(1,127)
Transportation	64,664	(2,987)	95,889	(4,752)	160,553	(7,739)
Utilities	138,031	(3,438)	444,299	(10,106)	582,330	(13,544)
Total Corporate	1,898,574	(71,361)	2,279,543	(84,190)	4,178,117	(155,551)
Non-Corporate
Asset Backed and Mortgage Backed Securities	1,965,773	(43,011)	1,240,823	(31,113)	3,206,596	(74,124)
Foreign Government & Agency Securities	1,002	(3)	19,118	(61)	20,120	(64)
U.S. Treasury & Agency Securities	56,051	(633)	216,469	(3,653)	272,520	(4,286)
Total Non-Corporate	2,022,826	(43,647)	1,476,410	(34,827)	3,499,236	(78,474)
Grand Total	$ 3,921,400	$ (115,008)	$ 3,755,953	$ (119,017)	$ 7,677,353	$ (234,025)

The Company has a comprehensive process in place to identify potential problem securities that could have an impairment that is other-than-temporary. At the end of each quarter, all securities with an unrealized loss are reviewed. An analysis is undertaken to determine whether this decline in market value is other-than-temporary. The Company’s process focuses on issuer operating performance and overall industry and market conditions. Any deterioration in operating performance is assessed relative to the impact on financial ratios including leverage and coverage measures specific to an industry and relative to any investment covenants.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

The Company’s analysis also assesses each issuer's ability to service its debts in a timely fashion, the length of time the security has been in an unrealized loss position, rating agency actions, and any other key developments as well as the Company’s ability and intention, if any, to dispose of its position prior to the fair value increasing so as to allow recovery of the Company’s cost. The Company has a Credit Committee that includes members from its investment, finance and actuarial functions. The committee meets and reviews the results of the Company’s impairment analysis on a quarterly basis.

The following table provides the number of securities with gross unrealized losses, which were deemed to be temporarily impaired, at December 31, 2006 (not in thousands):

	Number of Securities Less Than Twelve Months	Number of Securities Twelve Months Or More	Total Number of Securities
Corporate Securities
Basic Industry	2	12	14
Capital Goods	9	15	24
Communications	22	64	86
Consumer Cyclical	28	57	85
Consumer Noncyclical	14	10	24
Energy	13	15	28
Finance	80	137	217
Industrial Other	3	2	5
Technology	-	3	3
Transportation	8	47	55
Utilities	39	55	94
Total Corporate	218	417	635
Non-Corporate
Asset Backed and Mortgage Backed Securities	368	741	1,109
Foreign Government & Agency Securities	-	3	3
U.S. Treasury & Agency Securities	10	25	35
Total Non-Corporate	378	769	1,147
Grand Total	596	1,186	1,782

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

The following table provides the number of securities with gross unrealized losses, which were deemed to be temporarily impaired, at December 31, 2005 (not in thousands):

	Number of Securities Less Than Twelve Months	Number of Securities Twelve Months Or More	Total Number of Securities
Corporate Securities
Basic Industry	17	7	24
Capital Goods	6	18	24
Communications	46	44	90
Consumer Cyclical	71	40	111
Consumer Noncyclical	23	18	41
Energy	9	14	23
Finance	113	81	194
Industrial Other	1	6	7
Technology	2	1	3
Transportation	17	43	60
Utilities	32	42	74
Total Corporate	337	314	651
Non-Corporate
Asset Backed and Mortgage Backed Securities	696	353	1,049
Foreign Government & Agency Securities	1	2	3
U.S. Treasury & Agency Securities	16	32	48
Total Non-Corporate	713	387	1,100
Grand Total	1,050	701	1,751

The Company has made funding commitments of private placement bonds into the future. The outstanding funding commitments for these private placement bonds amounted to $4.1 million at December 31, 2006. There were no outstanding funding commitments for private placement bonds at December 31, 2005.

The Company had unfunded commitments with respect to funding of limited partnerships of approximately $53.3 million and $71.3 million at December 31, 2006 and 2005, respectively.

Mortgage Loans and Real Estate

The Company invests in commercial first mortgage loans and real estate throughout the United States. Investments are diversified by property type and geographic area. Mortgage loans are collateralized by the related properties and generally are no more than 75% of the property’s value at the time that the original loan is made.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4.INVESTMENTS (CONTINUED)

Mortgage Loans and Real Estate (continued)

The carrying value of mortgage loans and real estate investments, net of applicable reserves and accumulated depreciation, was as follows:

		December 31,
		2006	2005
Total mortgage loans		$ 2,273,176	$ 1,739,370
Real estate:
	Held for production of income	186,891	170,510
Total real estate		$ 186,891	$ 170,510

Accumulated depreciation on real estate was $27.2 million and $23.0 million at December 31, 2006 and 2005, respectively.

The Company monitors the condition of the mortgage loans in its portfolio. In those cases where mortgages have been restructured, values are impaired or values are impaired but mortgages are performing, appropriate allowances for losses have been made. The Company has impaired mortgage loans and impaired-but-performing mortgage loans totaling $3.9 million and $6.3 million at December 31, 2006 and 2005, respectively.

Activity for the investment valuation allowances was as follows:

	Balance at			Balance at
	January 1,	Additions	Subtractions	December 31,
2006
Mortgage loans	$ 6,272	$  400	$ ( 2,744)	$ 3,928
2005
Mortgage loans	$ 7,646	$  800	$ (2,174)	$  6,272

Mortgage loans and real estate investments comprise the following property types and geographic regions at December 31:

	2006	2005
Property Type:
Office building	$ 864,486	$ 703,927
Residential	115,822	87,874
Retail	998,291	751,041
Industrial/warehouse	310,346	264,567
Other	175,050	108,743
Valuation allowances	(3,928)	(6,272)
Total	$ 2,460,067	$ 1,909,880

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

	2006	2005
Geographic region:
Alaska	$ 3,041	$ -
Alabama	7,824	8,070
Arizona	56,964	48,113
Arkansas	474	-
California	179,502	144,829
Colorado	32,294	33,238
Connecticut	15,016	30,026
Delaware	20,445	15,194
Florida	264,316	140,592
Georgia	86,510	80,802
Idaho	2,635	-
Illinois	47,777	23,118
Indiana	23,471	19,950
Iowa	364	-
Kansas	6,089	-
Kentucky	32,000	25,623
Louisiana	38,314	32,186
Maine	12,508	-
Maryland	58,318	64,724
Massachusetts	141,485	142,421
Michigan	15,522	6,799
Minnesota	40,259	53,157
Missouri	88,348	34,567
Mississippi	770	-
Montana	483	-
Nebraska	12,615	7,948
Nevada	7,304	7,509
New Hampshire	961	-
New Jersey	44,003	36,042
New Mexico	10,097	7,386
New York	313,204	240,390
North Carolina	44,866	43,111
North Dakota	2,150	-
Ohio	145,692	128,525
Oklahoma	4,900	-
Oregon	23,910	11,968
Pennsylvania	136,091	118,709
South Carolina	31,688	-
South Dakota	977	-
Tennessee	41,161	32,430
Texas	295,284	211,889
Utah	30,710	29,718
Virginia	16,825	17,386
Washington	77,525	73,326
West Virginia	4,874	-
Wisconsin	18,663	19,494
All other	25,766	26,912
Valuation allowances	(3,928)	(6,272)
Total	$ 2,460,067	$ 1,909,880

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4.INVESTMENTS (CONTINUED)

At December 31, 2006, scheduled mortgage loan maturities were as follows:

2007	$ 31,619
2008	41,168
2009	42,433
2010	53,443
2011	150,548
Thereafter	1,953,965
Total	$ 2,273,176

Actual maturities could differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties and loans may be refinanced.

The Company has made funding commitments of mortgage loans on real estate and other loans into the future. The outstanding funding commitments for these mortgages amount to $99.0 million and $115.8 million at December 31, 2006 and 2005, respectively.

During 2004, the Company sold commercial mortgage loans in securitization transactions. The mortgages were primarily sold to qualified special purpose entities that were established for the purpose of purchasing the assets and issuing trust certificates. In these transactions, the Company retained investment tranches, which are considered available-for-sale securities, in addition to servicing rights. The securitizations are structured so that investors have no recourse to the Company’s other assets for failure of debtors to pay when due. The value of the Company’s retained interests are subject to credit and interest rate risk on the transferred financial assets. The Company recognized pre-tax gains of $3.0 million for its 2004 securitization transaction. The Company did not sell any commercial mortgage loans in securitization transactions in 2005 or 2006.

The tranches retained through the 2004 securitization were considered interest only strips ("I/O"). Key economic assumptions used in measuring the retained interests at the date of securitization resulting from securitizations completed during the year ended December 31, 2004 were as follows:

	Exeter I/O	Fairfield I/O
Prepayment speed	-	-
Weighted average life in years	5.72-5.92	2.89-8.74
Expected credit losses	-	-
Residual cash flows discount rate	4.80%-4.84%	4.43%-5.28%
Treasury rate interpolated for average life	3.35%-3.39%	3.18%-4.03%
Spread over treasuries	1.45%	1.25%
Duration in years	6.64-10.14	1.45-4.92

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4.INVESTMENTS (CONTINUED)

Key economic assumptions and the sensitivity of the current fair value of cash flows in those assumptions at December 31, 2006 were as follows:

	Exeter I/O	Fairfield I/O
Amortized cost of retained
Interests	$ 646	$ 275
Fair value of retained interests	674	109
Weighted average life in years	4.06 - 7.56	0.93
Expected Credit Losses
Fair value of retained interest as a result of a .20% of adverse change	674	109
Fair value of retained interest as a result of a .30% of adverse change	674	109
Residual Cash flows Discount Rate
Fair value of retained interest as a result of a 10% of adverse change	672	109
Fair value of retained interest as a result of a 20% of adverse change	670	109

The outstanding principal amount of the securitized commercial mortgage loans was $849.6 million at December 31, 2006, none of which were 60 days or more past due. There were no net credit losses incurred relating to the securitized commercial mortgage loans at the dates of securitization through December 31, 2006.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

Key economic assumptions and the sensitivity of the current fair value of cash flows in those assumptions at December 31, 2006 were as follows in regards to tranches retained for securitizations completed between the years 2000 and 2003:

	Commercial Mortgages
Amortized cost of retained
Interests	$ 23,063
Fair value of retained interests	23,819
Weighted average life in years	2.98 - 13.73
Expected Credit Losses
Fair value of retained interest as a result of a .20% of adverse change	23,532
Fair value of retained interest as a result of a .30% of adverse change	23,406
Residual Cash flows Discount Rate
Fair value of retained interest as a result of a 10% of adverse change	23,074
Fair value of retained interest as a result of a 20% of adverse change	22,362

The outstanding principal amount of the securitized commercial mortgage loans was $872.8 million at December 31, 2006, none of which were 60 days or more past due. There were no net credit losses incurred relating to the securitized commercial mortgage loans at the date of securitization through December 31, 2006.

Securities Lending

The Company is engaged in certain securities lending transactions, which require the borrower to provide collateral on a daily basis, in amounts in excess of 102% of the fair value of the applicable securities loaned. The Company maintains effective control over all loaned securities and, therefore, continues to report such loaned securities as fixed maturities in its consolidated balance sheet.

Cash collateral received on securities lending transactions is reflected in other invested assets with an offsetting liability recognized in other liabilities for the obligation to return the collateral. The fair value of collateral held and included in other invested assets was $895.3 million and $495.7 million at December 31, 2006 and 2005, respectively. Fees earned on securities lending transactions were $2.3 million, $1.9 million and $1.2 million for the years ended December 31, 2006, 2005 and 2004, respectively.

Leveraged Leases

The Company is a lessor in a leveraged lease agreement entered into on October 21, 1994, under which equipment having an estimated economic life of 25-40 years was originally leased through a VIE for a term of 9.78 years. During 2001, the lease term was extended until 2010. The Company's equity investment in this VIE represented 8.33% of the partnership that provided 22.9% of the purchase price of the equipment. The balance of the purchase price was furnished by third-party long-term debt financing, collateralized by the equipment, and is non-recourse to the Company. At the end of the lease term, the master lessee may exercise a fixed price purchase option to purchase the equipment. The leveraged lease is included as a part of other invested assets.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

Leveraged Leases (continued)

The Company's net investment in the leveraged lease is composed of the following elements:

	Year ended December 31,
	2006	2005
Lease contract receivable	$ 18,631	$ 25,914
Less: non-recourse debt	-	(1,410)
Net Receivable	18,631	24,504
Estimated value of leased assets	20,795	21,420
Less: unearned and deferred income	(6,506)	(9,178)
Investment in leveraged leases	32,920	36,746
Less: fees	(113)	(138)
Net investment in leveraged leases	$ 32,807	$ 36,608

Derivatives

The Company uses derivative financial instruments for risk management purposes to hedge against specific interest rate risk, to alter investment rate exposures arising from mismatches between assets and liabilities, and to minimize the Company's exposure to fluctuations in interest rates, foreign currency exchange rates and general market conditions. The Company does not hold or issue any derivative instruments for trading purposes.

As a component of its investment strategy and to reduce its exposure to interest rate risk, the Company utilizes interest rate swap agreements. Interest rate swap agreements are agreements to exchange with a counter-party interest rate payments of differing character (e.g., fixed-rate payments exchanged for variable-rate payments) based on an underlying principal balance (notional principal) as an economic hedge against interest rate changes. No cash is exchanged at the outset of the contract and no principal payments are made by either party. A single net payment is usually made by one counter-party at each interest payment date. The net payment is recorded as a component of derivative income (loss). Because the underlying principal is not exchanged, the Company's maximum exposure to counter-party credit risk is the difference in payments exchanged. The fair value of swap agreements is included with derivative instruments - receivable (positive position) or derivative instruments - payable (negative position) in the accompanying balance sheet.

The Company utilizes payer swaptions to hedge exposure to interest rate risk. Swaptions give the buyer the option to enter into an interest rate swap per the terms of the original swaption agreement. A premium is paid on settlement date and no further cash transactions occur until the positions expire. The swaptions have a physical settlement at expiration for which an interest rate swap becomes effective. Swaptions are carried at fair value which is included in derivative instruments - receivable (positive position) in the accompanying balance sheet and the change in value is offset to derivative income.

The Company utilizes over-the-counter ("OTC") put options and exchange traded futures on the Standard & Poor’s 500 Composite Stock Price Index ("S&P 500 Index") ("S&P", "S&P 500", and "Standard & Poor's" are trademarks of The McGraw Hill Companies, Inc. and have been licensed for use by the Company) and other indexes to hedge against stock market exposure inherent in the GMDB and living benefit features of the Company's variable annuities. The Company also purchases OTC call options on the S&P 500 Index to economically hedge its obligation under certain fixed annuity contracts. Options are carried at fair value and are included with derivative instruments - receivable in the Company’s balance sheet.

Standard & Poor’s indexed futures contracts are entered into for purposes of hedging fixed index products. The interest credited on these 1, 5, 7 and 10 year term products is based on the changes in the S&P 500 Index. On trade date, an initial cash margin is exchanged. Daily cash is exchanged to settle the daily variation margin and the offset is recorded in derivative income.

The Company issues annuity contracts that contain a derivative instrument that is "embedded" in the contract. Upon issuing the contract, the embedded derivative is separated from the host contract (annuity contract) and is carried at fair value.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

From 2000 through 2002, the Company marketed GICs to unrelated third parties. Each transaction is highly-individualized but typically involves the issuance of foreign currency denominated contracts backed by cross currency swaps or equity-linked cross currency swaps. The combination of the currency swaps with interest rate swaps allows the Company to lock in U.S. dollar fixed rate payments for the life of the contract.

Included in derivative gains (losses) are gains (losses) on the translation of foreign currency denominated GIC liabilities of $(90.2) million, $197.1 million and $(83.3) million for the years ended December 31, 2006, 2005 and 2004, respectively.

Beginning in 2005, the Company marketed GICs to unrelated third parties and entered into funding agreements and interest rate swaps as part of this guaranteed investment program. The interest rate swaps allow the Company to lock in U.S. dollar fixed rate payments for the life of the contracts.

The Company does not employ hedge accounting. The Company believes that its derivatives provide economic hedges and the cost of formally documenting hedge effectiveness in accordance with the provisions of SFAS No.133, "Accounting for Derivative Instruments," is not justified. As a result, all changes in the fair value of derivatives are recorded in the current period operations as a component of derivative income.

Net derivative income (loss) for the years ended December 31 consisted of the following:

		2006		2005		2004
Net expense on swap agreements	$	(7,749)	$	(64,915)	$	(62,514)
Change in fair value of swap agreements (interest rate, currency, and equity)		8,392		101,320		(43,977)
Change in fair value of options, futures and embedded derivatives		8,446		(19,931)		8,072
Net derivative income (losses)	$	9,089	$	16,474	$	(98,419)

The Company is required to pledge and receive collateral for open derivative contracts. The amount of collateral required is determined by agreed upon thresholds with the counter-parties. The Company currently pledges cash and U.S. Treasury bonds to satisfy this collateral requirement. At December 31, 2006 and 2005, $43.0 million and $35.6 million, respectively, of fixed maturities were pledged as collateral and are included with fixed maturities.

The Company’s underlying notional or principal amounts associated with open derivatives positions were as follows for the years ended December 31:

	2006
	Notional		Fair Value
	Principal		Asset (Liability)
	Amounts
Interest rate swaps		$10,759,984		$ (84,860)
Currency swaps		488,377		169,618
Equity swaps		172,329		52,664
Currency forwards		3,570		2,493
Futures		1,008,792		(2,313)
Swaptions		1,500,000		1,428
S&P 500 index call options		4,166,184		337,441
S&P 500 index put options		1,103,502		16,879
Total		$19,202,738		$ 493,350

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

4. INVESTMENTS (CONTINUED)

	2005
	Notional		Fair Value
	Principal		Asset (Liability)
	Amounts
Interest rate swaps		$ 6,764,984		$ (115,333)
Currency swaps		534,916		116,070
Equity swaps		181,334		29,463
Currency forwards		2,571		(2,079)
Credit Default Swaps		10,000		(3)
Futures		745,009		(1,724)
Swaptions		2,500,000		8,979
S&P 500 index call options		3,410,279		225,243
S&P 500 index put options		1,160,202		29,566
Total		$ 15,309,295		$ 290,182

5. NET REALIZED INVESTMENT GAINS AND LOSSES

Net realized investment (losses) gains consisted of the following for the years ended December 31:

		2006	2005	2004
Fixed maturities		$ (53,120)	$ 21,873	$ 108,603
Equity securities		519	(6)	3,375
Mortgage and other loans		1,543	614	858
Real estate		-	318	-
Other invested assets		(19)	12,741	(1,601)
Other than temporary declines		(6,329)	(29,707)	(32,494)
Sales on previously impaired assets		12,895	11,092	17,333
	Total	$ (44,511)	$ 16,925	$ 96,074

6. NET INVESTMENT INCOME

Net investment income consisted of the following for the years ended December 31:

		2006	2005	2004
Fixed maturities		$ 991,738	$ 921,803	$ 1,030,973
Mortgage and other loans		135,515	103,253	83,986
Real estate		10,460	11,047	11,615
Policy loans		44,516	37,595	42,821
Other		38,858	55,245	(19,715)
	Gross investment income	1,221,087	1,128,943	1,149,680
Less: Investment expenses		15,006	16,414	15,423
	Net investment income	$ 1,206,081	$ 1,112,529	$ 1,134,257

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

SFAS No. 107, "Disclosure about Fair Value of Financial Instruments," excludes certain insurance liabilities and other non-financial instruments from its disclosure requirements. The fair value amounts presented herein do not include the expected interest margin (interest earnings over interest credited) to be earned in the future on investment-type products or other intangible items. Accordingly, the aggregate fair value amounts presented herein do not necessarily represent the underlying value to the Company. Likewise, care should be exercised in deriving conclusions about the Company's business or financial condition based on the fair value information presented herein.

The following table presents the carrying amounts and estimated fair values of the Company's financial instruments at December 31:

		2006		2005
		Carrying	Estimated	Carrying	Estimated
		Amount	Fair Value	Amount	Fair Value
Financial assets:
	Cash and cash equivalents	$ 578,080	$ 578,080	$ 347,654	$ 347,654
	Fixed maturities	18,094,026	18,124,777	18,261,996	18,307,751
	Equity securities	15,895	15,895	15,427	15,427
	Mortgages	2,273,176	2,267,327	1,739,370	1,790,629
	Derivatives instruments -receivables	653,854	653,854	487,947	487,947
	Policy loans	709,626	709,626	701,769	701,769
	Separate accounts	21,060,255	21,060,255	19,095,391	19,095,391
Financial liabilities:
	Contractholder deposit funds and other policy liabilities	19,428,625	18,051,332	18,668,578	17,449,961
	Derivative instruments - payables	160,504	160,504	197,765	197,765
	Long-term debt to affiliates	1,325,000	1,370,223	1,125,000	1,178,918
	Partnership capital securities	607,826	630,751	607,826	645,755
	Separate accounts	21,060,255	21,060,255	19,095,391	19,095,391

The following methods and assumptions were used by the Company in determining the estimated fair value of its financial instruments:

Interest receivable on the above financial instruments is stated at carrying value which approximates fair value.

Cash and cash equivalents: The fair values of cash and cash equivalents are estimated to be cost plus accrued interest.

Fixed maturities, short term investments and equity securities: The fair values of short-term bonds are estimated to be amortized cost. The fair values of publicly-traded fixed maturities are based upon market prices or dealer quotes. For privately-placed fixed maturities, fair values are estimated by taking into account prices for publicly-traded securities of similar credit risk, maturity, repayment and liquidity characteristics. The fair value of equity securities are based on quoted market prices. Equity securities are included as a component of other invested assets.

Mortgage: The fair values of mortgage and other loans are estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Derivative instruments, receivables and payables: The fair values of swaps are based on current settlement values. The current settlement values are based on dealer quotes and market prices. Fair values for options and futures are based on dealer quotes and market prices.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

7. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

Policy loans: Policy loans are stated at unpaid principal balances, which approximate fair value.

Separate accounts, assets and liabilities: The estimated fair value of assets held in separate accounts is based on quoted market prices. The fair value of liabilities related to separate accounts is the amount payable on demand, which excludes surrender charges.

Contractholder deposit funds and other policy liabilities: The fair values of the Company's general account insurance reserves and contractholder deposits under investment-type contracts (insurance, annuity and pension contracts that do not involve mortality or morbidity risks) are estimated using discounted cash flow analyses or surrender values based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for all contracts being valued. Those contracts that are deemed to have short-term guarantees have a carrying amount equal to the estimated market value. The fair values of other deposits with future maturity dates are estimated using discounted cash flows. The fair values of S&P 500 Index and other equity linked embedded derivatives are produced using standard derivative valuation techniques. GMABs or GMWBs are considered to be derivatives under SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," and are included in contractholder deposit funds. The fair value of the embedded derivatives is calculated stochastically using risk neutral scenarios over a fifty-year projection. Policyholder assumptions are based on experience studies and industry standards.

Long term debt: The fair value of notes payable and other borrowings are estimated using discounted cash flow analyses based upon the Company's current incremental borrowing rates for similar types of borrowings.

8. REINSURANCE

Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreement. To minimize its exposure to significant losses from reinsurer insolvencies, the Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. Management believes that any liability from this contingency is unlikely. A brief discussion of the Company’s reinsurance agreements by segment follows (see Note 15 for segmented information).

Wealth Management Segment

The Wealth Management Segment manages a closed block of SPWL insurance policies, a retirement-oriented tax-advantaged life insurance product. The Company discontinued sales of SPWL’s in response to certain tax law changes in the 1980s. The Company had SPWL policyholder balances of approximately $1.6 billion and $1.7 billion as of December 31, 2006 and 2005, respectively. On December 31, 2003, this entire block of business was reinsured on a funds withheld basis with SLOC, an affiliate.

By reinsuring the SPWL policies, the Company reduced net investment income by $97.0 million, $82.7 million and $91.2 million for the years ended December 31, 2006, 2005 and 2004, respectively. The reduction of net investment income resulting from interest paid on funds withheld includes the impact from net investment income, net derivative (loss) income and net realized investment gains. The Company also reduced interest credited by $76.0 million, $57.5 million and $79.6 million for the years ended December 31, 2006, 2005 and 2004, respectively. In addition, the Company also increased net investment income, relating to an experience rating refund under the reinsurance agreement with SLOC, by $13.0 million, $13.1 and $13.6 million for the years ended December 31, 2006, 2005 and 2004, respectively. The liability for the SPWL policies is included in contractholder deposit funds and other policy liabilities.

Individual Protection Segment

The Company has agreements with SLOC and several unrelated companies, which provide for reinsurance of portions of the net-amount-at-risk under certain individual variable universal life, individual private placement variable universal life, bank owned life insurance ("BOLI"), and corporate owned life insurance ("COLI") policies. These amounts are reinsured on either a monthly renewable or a yearly renewable term basis. Fee income was reduced by $37.8 million, $33.3 million and $28.7 million for the years ended December 31, 2006, 2005 and 2004, respectively, to account for these agreements.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

8. REINSURANCE (CONTINUED)

Individual Protection Segment (continued)

Effective October 1, 2004, the Company no longer acts as the reinsurer of risk under the lapse protection benefit for certain universal life contracts issued by SLOC.

Group Protection Segment

The Company, through its affiliate SLNY, had an agreement with SLOC whereby SLOC reinsured the mortality risks of SLNY’s group life insurance contracts. Under this agreement, certain death benefits were reinsured on a yearly-renewable term basis. The agreement provided that SLOC would reinsure mortality risks in excess of $50,000 per claim for group life contracts ceded by SLNY. The treaty was commuted effective December 31, 2004.

The Company, through its affiliate SLNY, had an agreement with SLOC whereby SLOC reinsured morbidity risks of a block of SLNY’s group long-term disability contracts. The treaty was commuted effective December 31, 2004.

The Company, through its affiliate SLNY, has an agreement with an unrelated company whereby the unrelated company reinsures the mortality risks of the Company’s group life contracts. Under this agreement, certain group life mortality benefits are reinsured on a yearly-renewable term basis. The agreement provides that the unrelated company will reinsure amounts above $0.7 million per claim for group life contracts ceded by the Company.

The Company, through its affiliate SLNY, has an agreement with an unrelated company whereby the unrelated company reinsures the morbidity risks of SLNY’s group stop loss contracts. Under this agreement, certain stop loss benefits are reinsured on a yearly- renewable term basis. The agreement provides that the unrelated company will reinsure specific claims for amounts above $1.0 million per claim for stop loss contracts ceded by SLNY. The retention limit was raised to $1.5 million for policies sold or renewed on or after January 1, 2006.

The Company, through its affiliate SLNY, has an agreement with an unrelated company whereby the unrelated company reinsures the morbidity risks of SLNY’s group long-term disability contracts. Under this agreement, certain long-term disability benefits are reinsured on a yearly-renewable term basis. The agreement provides that the unrelated company will reinsure amounts in excess of $4,000 per claim per month for long-term disability contracts ceded by SLNY. The retention limit was raised to $9,000 per claim per month for claims incurred or after January 1, 2006.

The Company, through its affiliate SLNY, has an agreement with an unrelated company whereby the unrelated company reinsures 100% of the risks on a quota share basis for certain specific group life and disability policies.

The effects of reinsurance were as follows:

		For the Years Ended December 31,
			2006	2005	2004
Premiums and annuity considerations:
	Direct		$ 61,713	$ 54,915	$ 62,939
	Ceded		2,521	2,933	4,119
Net premiums and annuity considerations:			$ 59,192	$ 51,982	$ 58,820
Policyowner benefits:
	Direct		$ 197,872	$ 225,936	$ 170,381
	Ceded		40,902	38,923	29,004
Net policyowner benefits:			$ 156,970	$ 187,013	$ 141,377

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS

The Company sponsors three non-contributory defined benefit pension plans for its employees and certain affiliated employees. These plans are the staff qualified pension plan ("retirement plan"), the agent qualified pension plan ("agent pension plan") and the staff nonqualified pension plan ("UBF plan"). Expenses are allocated to participating companies based in a manner consistent with the allocation of employee compensation expenses. The Company's funding policies for the two qualified pension plans are to contribute amounts which at least satisfy the minimum amount required by the Employee Retirement Income Security Act of 1974 ("ERISA") and the Internal Revenue Code of 1986. Most qualified pension plan assets consist of separate accounts of SLOC or other insurance company contracts.

Prior to 2006, the Company participated in the UBF plan which was sponsored by SLOC and expensed the portion of the plan cost that was allocated to the Company. Effective January 1, 2006, the plan was divided, with the Company taking over the pension benefit obligation ("PBO") and the associated unrecognized gain/loss and prior service cost/credit. The Company has included the allocated PBO in a separate line in the PBO reconciliation, and accounted for the plan as the Company’s own from that point forward.

The Company uses a measurement date of September 30 for its pension and other post retirement benefit plans.

The Company amended the retirement plan effective January 1, 2006, including the following relating to the retirement plan:

(a) To provide that no one shall become a participant in the plan after December 31, 2005;

(b) To freeze accruals under the plan as of December 31, 2005 for all participants except (i) those participants (x) who are at least age 50 and whose age plus service on January 1, 2006 equals or exceeds 60 and (y) who in 2005 choose to continue their participation in the plan, (ii) those participants who are receiving on December 31, 2005 severance or termination payments and (iii) those participants who are receiving on December 31, 2005 amounts paid under the Long Term Disability plan sponsored by the Company;.

Due to the retirement plan changes, a $1.9 million curtailment charge was recognized in 2005.

Other post retirement benefit plans have been amended effective January 1, 2006, as follows:

To provide retiree medical coverage where the retiree pays the entire cost of coverage equal to the cost paid by active employees unless the participant is a retiree as of December 31, 2005, a "grandfathered employee" or a "Rule 75 employee."

A grandfathered employee shall mean an active employee (i) who retires on or after January 1,2006 and (ii) who as of January 1, 2006 is at least age 55 with 15 or more years of service and whose age plus service is at least 75.

A Rule 75 employee shall mean an active employee (i) who is not a grandfathered employee, ii) who retires on or after January 1, 2006, and (iii) who when they retire are at least age 55 with 15 or more years of service and whose age plus service is at least 75.

For grandfathered employees and Rule 75 employees, retiree medical coverage is provided at reduced cost.

On September 29, 2006, the FASB issued SFAS No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans" ("SFAS No. 158"), which amends SFAS No. 87 and SFAS No. 106 to require recognition of the overfunded or underfunded status of pension and other postretirement benefit plans on the balance sheet. Under SFAS No. 158, gains and losses, prior service costs and credits, and any remaining transition amounts under SFAS No. 87 and SFAS No. 106 that have not yet been recognized through net periodic benefit cost will be recognized in accumulated other comprehensive income, net of tax effects, until they are amortized as a component of net periodic cost. The measurement date -- the date at which the benefit obligation and plan assets are measured -- is required to be the Company's fiscal year end. SFAS No. 158 is effective for publicly-held companies for fiscal years ending after December 15, 2006, except for the measurement date provisions, which are effective for fiscal years ending after December 15, 2008. The Company has adopted the balance sheet recognition provisions of SFAS No. 158 at December 31, 2006 and will adopt the year end measurement date in 2008. The Company recognized a liability of $2.3 million as a result of adoption of SFAS No. 158. The statement does not affect the results of operations.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

The following table sets forth the change in the retirement plan, agent pension plan and UBF plan projected benefit obligations and assets, as well as such plans’ funded status at December 31:

	2006	2005
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 229,545	$ 215,439
Other (uninsured benefit plan split)	28,118	-
Service cost	6,024	10,948
Interest cost	15,064	13,839
Actuarial loss (gain)	(9,862)	17,780
Benefits paid	(7,509)	(6,105)
Plan amendments	-	2,344
Curtailment loss (gain)	-	(24,700)
Projected benefit obligation at end of year	$ 261,380	$ 229,545
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$ 252,096	$ 233,551
Contributions	(496)	(1,250)
Actual return on plan assets	25,621	25,900
Benefits paid	(7,509)	(6,105)
Fair value of plan assets at end of year	$ 269,712	$ 252,096
Information on the funded status of the plan:
Funded status	$ 8,332	$ 22,551
Unrecognized net actuarial loss	-	7,802
Unrecognized transition obligation	-	(10,392)
Unrecognized prior service cost	-	3,945
4th quarter contribution	(1,108)	(1,550)
Prepaid benefit cost	$ 7,224	$ 22,356

The accumulated benefit obligation for the retirement plan, agent pension plan and UBF plan at December 31, 2006 and 2005 was $249.4 million and $222.4 million, respectively.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

Amounts recognized in the Company’s Consolidated Balance Sheets consist of the following as of December 31:

	2006	2005
Other assets	$ 38,345	$ 26,600
Other liabilities	(31,121)	(4,245)
	$ 7,224	$ 22,355

Amounts recognized in the Company’s Consolidated Accumulated Other Comprehensive Income ("AOCI") consist of the following:

	2006
Net actuarial gain	$ (1,923)
Prior service cost	3,564
Transition asset	(8,299)
	$ (6,658)

Amounts included in the Company’s AOCI for the following periods:

	December 31, 2005	December 31, 2006 (before the adoption of statement 158)	December 31, 2006
Additional Minimum Liability included in AOCI	$ 2,834	$ -	$ -
Amount included in AOCI after the adoption of SFAS No. 158	$ -	$ -	$ (6,658)

The retirement plan and agent pension plan were overfunded at December 31, 2006. The funded status of the UBF plan as of December 31, 2006 was as follows:

	2006
Plan assets	$ -
Less: Projected benefit obligations	27,209
Funded status	$ (27,209)
Accumulated benefit obligation	$ 24,084

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

The agent pension plan was overfunded at December 31, 2005. The funded status of the retirement plan as of December 31, 2005 was as follows:

	2005
Plan assets	$ 211,612
Less: Projected benefit obligations	219,802
Funded status	$ ( 8,190)
Accumulated benefit obligation	$ 212,630

The following table sets forth the components of the net periodic benefit cost and the Company’s share of net periodic benefit costs for the retirement plan, agent pension plan and UBF plan for the years ended December 31:

	2006	2005	2004
Components of net periodic benefit cost:
Service cost	$ 6,024	$ 10,948	$ 9,873
Interest cost	15,065	13,839	12,118
Expected return on plan assets	(21,672)	(20,092)	(17,704)
Amortization of transition obligation asset	(2,093)	(3,051)	(3,051)
Amortization of prior service cost	266	855	855
Curtailment loss	-	1,856	-
Recognized net actuarial loss	437	1,918	3,140
Net periodic benefit (benefit) cost	$ (1,973)	$ 6,273	$ 5,231
The Company’s share of net periodic benefit (benefit) cost	$ (1,973)	$ 4,116	$ 4,272

Prior to becoming the plan sponsor of the UBF plan, the cost recognized for the Company’s participation in the UBF plan was $2.9 million and $1.9 million for the years ended December 31, 2005 and 2004, respectively.

The estimated amounts that will be amortized from AOCI into net periodic benefit costs in 2007 are as follows:

Actuarial gain	$ (70)
Prior service cost	266
Transition asset	(2,093)
Total	$ (1,897)

Assumptions

Weighted average assumptions used to determine benefit obligations were as follows:

	Pension Benefits
	2006	2005	2004
Discount rate	6.0%	5.8%	6.2%
Rate of compensation increase	4.0%	4.0%	4.0%

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

Weighted average assumptions used to determine net periodic benefit cost were as follows:

	Pension Benefits
	2006	2005	2004
Discount rate	5.8%	6.2%	6.1%
Expected long term return on plan assets	8.75%	8.75%	8.75%
Rate of compensation increase	4.0%	4.0%	4.0%

The Company relies on historical market returns from Ibbotson Associates (1926-2006) to determine its overall long term rate of return on asset assumption. Applying Ibbotson’s annualized market returns of 12.3% stock, 5.8% bonds and 3.8% cash to the Company’s target allocation results in an expected return consistent with the one used by the Company for purposes of determining the benefit obligation.

Plan Assets

The asset allocation for the Company’s retirement plan and agent pension plan assets for 2006 and 2005 measurement, and the target allocation for 2007, by asset category, are as follows:

	Target Allocation	Percentage of Plan Assets
Asset Category	2007	2006	2005
Equity Securities	60%	63%	61%
Debt Securities	25%	27%	30%
Commercial Mortgages	15%	10%	9%
Other	-%	-%	-%
Total	100%	100%	100%

The target allocations were established to reflect the Company’s investment risk posture and to achieve the desired level of return commensurate with the needs of the fund. The target ranges are based upon a three to five year time horizon and may be changed as circumstances warrant.

The portfolio of investments should, over a period of time, earn a gross annualized rate of return that:

1)	exceeds the assumed actuarial rate;
2)	exceeds the return of customized index created by combining benchmark returns in appropriate weightings based on an average asset mix of funds; and
3)	generates a real rate of return of at least 3% after inflation, and sufficient income or liquidity to pay retirement benefits on a timely basis.

CashFlow

Due to the over funded status of the retirement plan and the agent pension plan, the Company will not be making contributions to the plan in 2007. The Company will be making a contribution of $1.1 million to the UBF plan in 2007.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

The Company has estimated the following future benefit payments for the years 2007 through 2016:

	Pension Benefits
2007	7,852
2008	8,438
2009	8,936
2010	9,447
2011	10,035
2012 to 2016	69,668

Savings and Investment Plan

The Company sponsors and participates in a savings account that qualifies under Section 401(k) of the Internal Revenue Code (the "401(k) Plan") for which substantially all employees of at least age 21 are eligible to participate at date of hire. Under the 401(k) Plan, the Company matches, up to specified amounts, employee contributions to the plan.

On September 21, 2005, the Board of Directors of the Company approved amendments to the 401(k) Plan, including the following.

Effective January 1, 2006, the 401(k) Plan also includes a retirement investment account that qualifies under Section 401(a) of the Internal Revenue Code (the "RIA"). The Company contributes a percentage of participant’s eligible compensation as determined per the following chart based on the sum of the participant’s age and service on January 1 of the applicable plan year-

Age Plus Service	Company Contribution
Less than 40	3%
At least 40 but less than 55	5%
At least 55	7%

For RIA participants who are at least age 40 on January 1, 2006 and whose age plus service on January 1, 2006 equals or exceeds 45, the Company also contributes to the RIA from January 1, 2006 through December 31, 2015, a percentage of the participant’s eligible compensation as determined per the following chart based on the participant’s age and service on January 1, 2006 -

	Service
Age	Less than 5 years	5 or more years
At least 40 but less than 43	3.0%	5.0%
At least 43 but less than 45	3.5%	5.5%
At least 45	4.5%	6.5%

For RIA participants who did not become participants in the retirement plan before January 1, 2006, the Company made a one-time RIA contribution in January 2006 based on the applicable percentage from the first chart above as of January 1, 2006 and their eligible compensation paid during the period beginning on their hire date and ending on December 31, 2005.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

The amount of the 2006 employer contributions under the 401(k) Plan by the Company and its affiliates was $16.3 million. Amounts are allocated to affiliates based on their respective employees’ contributions. The Company’s portion of the expense was $10.8 million, $4.6 million and $2.8 million for the years ended December 31, 2006, 2005 and 2004, respectively. The Company’s 2005 contribution includes a $1.6 million accrued retroactive adjustment related to the board approved amendments to the 401(k) Plan. This retroactive adjustment was funded in 2006.

Other Post-Retirement Benefit Plans

The Company sponsors a post-retirement benefit pension plan for its employees and certain affiliates employees providing certain health, dental and life insurance benefits ("post-retirement benefits") for retired employees and dependents (the "Retirement Plan"). Expenses are allocated to participating companies based on the number of participants. Substantially all employees of the participating companies may become eligible for these benefits if they reach normal retirement age while working for the Company, or retire early upon satisfying an alternate age plus service condition. Life insurance benefits are generally set at a fixed amount.

The following table sets forth the change in the Retirement Plan’s obligations and assets, as well as the plan’s funded status at December 31:

Change in benefit obligation:	2006	2005
Benefit obligation at beginning of year	$ 51,300	$ 48,453
Service cost	1,311	1,333
Interest cost	2,967	2,994
Actuarial (gain) loss	(7,220)	4,596
Benefits paid	(2,756)	(2,884)
Federal Subsidy	250	-
Plan Amendments	-	(3,192)
Benefit obligation at end of year	$ 45,852	$ 51,300
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$ -	$ -
Employer contributions	2,756	2,884
Benefits paid	(2,756)	(2,884)
Fair value of plan assets at end of year	$ -	$ -
Information on the funded status of the plan:
Funded Status	$ (45,852)	$ (51,301)
Unrecognized net actuarial loss	-	22,741
4th quarter contribution	600	686
Unrecognized prior service cost	-	(5,609)
Accrued benefit cost	$ (45,252)	$ (33,483)

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

Amounts recognized in the Company’s Consolidated Balance Sheets Consist of the following:

	2006	2005
Other liabilities	$ (45,252)	$ (33,483)

Amounts recognized in the Company’s AOCI consist of the following:

	2006
Net actuarial loss	$ 14,070
Prior service credit	(5,080)
Transition liability	$ 8,990

Amounts included in the Company’s AOCI for the following periods:

	December 31, 2005	December 31, 2006 (before the adoption of statement 158)	December 31, 2006
Additional Minimum Liability included in AOCI	$ -	$ -	$ -
Amount included in AOCI after the adoption of SFAS No. 158	$ -	$ -	$ 8,990

The following table sets forth the components of the net periodic post-retirement benefit costs and the Company’s allocated share for the year ended December 31:

	2006	2005
Components of net periodic benefit cost
Service cost	$ 1,311	$ 1,333
Interest cost	2,967	2,994
Amortization of prior service cost	(529)	(241)
Recognized net actuarial loss	1,450	1,273
Net periodic benefit cost	$ 5,199	$ 5,359
The Company’s share of net periodic benefit cost	$ 4,501	$ 4,947

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

The estimated amounts that will be amortized from AOCI into net periodic benefit costs in 2007 are as follows:

Actuarial (gain)/loss	$ 912
Prior service (credit)/cost	(529)
Total	$ 383

Assumptions

Weighted average assumptions used to determine benefit obligations were as follows:

	Other Benefits
	2006	2005	2004
Discount Rate	6.0%	5.8%	6.2%
Rate of Compensation increase	4.0%	4.0%	4.0%

Weighted average assumptions used to determine net cost for the years ended December 31 were as follows:

	Other Benefits
	2006	2005	2004
Discount rate	5.8%	6.2%	6.1%
Rate of compensation increase	4.0%	4.0%	4.0%

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

9. RETIREMENT PLANS (CONTINUED)

In order to measure the post-retirement benefit obligation for 2006, the Company assumed a 10% annual rate of increase in the per capita cost of covered health care benefits. In addition, medical cost inflation is assumed to be 9% in 2007 and assumed to decrease gradually to 5.00% for 2011 and remain at that level thereafter. Assumed healthcare cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effect:

	1- Percentage-Point	1- Percentage-Point
	Increase	Decrease
Effect on Post retirement benefit obligation	$ 4,100	$ (3,674)
Effect on total of service and interest cost	$ 357	$ (335)

The Company has estimated the following future benefit payments for the years 2007 through 2016:

	Other Benefits	Expected Federal Subsidy
2007	$ 3,074	$ 238
2008	3,186	247
2009	3,300	254
2010	3,386	256
2011	3,416	257
2012 to 2016	$ 17,914	$ 1,214

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

10. FEDERAL INCOME TAXES

In June 2006, the FASB issued FIN 48. FIN 48 establishes a comprehensive reporting model which addresses how a business entity should recognize, measure, present and disclose uncertain tax positions that the entity has taken or plans to take on a tax return. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Company is currently assessing the impact, if any, of FIN 48 on its consolidated financial statements.

The Company will file a consolidated return with SLC -U.S. Ops Holdings for the year ended December 31, 2006, as the Company did for the years ended December 31, 2005 and 2004. The Company’s subsidiary, SLNY, will file a stand-alone federal income tax return for the year ended December 31, 2006 as it did for the years 2005 and 2004. A summary of the components of federal income tax expense (benefit) in the Company’s consolidated statements of income for the years ended December 31 is as follows:

	2006	2005	2004
Federal income tax (benefit) expense:
Current	$ (5,897)	$ 11,239	$ (5,331)
Deferred	4,180	28,852	76,683
Total federal income tax (benefit) expense	$ (1,717)	$ 40,091	$ 71,352

Federal income taxes attributable to the Company’s consolidated operations are different from the amounts determined by multiplying income before federal income taxes by the statutory federal income tax rate at 35%. The Company's effective rate differed from the statutory federal income tax rate as follows:

	2006	2005	2004
Federal income tax expense at statutory rate	$ 26,838	$ 60,210	$ 107,446
Low income housing credit	(6,225)	(5,947)	(6,021)
Separate account dividend received deduction	(13,090)	(10,150)	(10,500)
Prior year items, including settlements	(8,396)	(2,802)	(17,351)
Other items	(844)	(1,220)	(2,222)
Federal income tax (benefit) expense	$ (1,717)	$ 40,091	$ 71,352

The deferred income tax asset (liability) represents the tax effects of temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. The components of the Company's deferred tax assets and (liabilities) as of December 31 were as follows:

	2006	2005
Deferred tax assets:
Actuarial liabilities	$ 128,848	$ 250,818
Net operating loss	7,954	-
Investments, net	146,116	40,866
Other	-	281
Total deferred tax assets	282,918	291,965
Deferred tax liabilities:
Deferred policy acquisition costs	(250,469)	(287,605)
Other	(28,852)	-
Total deferred tax liabilities	(279,321)	(287,605)
Net deferred tax asset	$ 3,597	$ 4,360

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

10. FEDERAL INCOME TAXES (CONTINUED)

The Company makes payments under certain tax sharing agreements as if it were filing as a separate company. The Company made income tax payments of $22.7 million in 2006 and received income tax refunds of $32.0 million in 2005. The Company did not have any net income tax payments for 2004. At December 31, 2006, the Company has $8.0 million of tax benefit on operating loss carryforwards that begin to expire in 2017.

The Company’s federal income tax returns are routinely audited by the Internal Revenue Service ("IRS"), and provisions are made in the consolidated financial statements in anticipation of the results of these audits. In August of 2006 the Company was issued a Revenue Agent’s Report for the tax years 2001 and 2002. The IRS is currently conducting a federal income tax audit of the Company for the tax years 2003 and 2004. In the Company’s opinion, adequate tax liabilities have been established for all years and any adjustments that might be required for the years under audit will not have a material effect on the Company’s consolidated financial statements. However, the amounts of these tax liabilities are estimates and could be revised in the future.

11. LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSES

Activity in the liability for unpaid claims and claims adjustment expenses, included within future contract and policy benefits, related to the Company’s group life, group disability insurance and stop loss products is summarized below:

		2006	2005
Balance at January 1		$ 33,141	$ 32,571
Less reinsurance recoverable		(5,886)	(6,381)
Net balance at January 1		27,255	26,190
Incurred related to:
	Current year	26,644	23,881
	Prior years	(1,294)	(3,143)
Total incurred		25,350	20,738
Paid losses related to:
	Current year	(14,881)	(13,860)
	Prior years	(6,941)	(5,813)
Total paid		(21,822)	(19,673)
Balance at December 31		36,689	33,141
Less reinsurance recoverable		(5,906)	(5,886)
Net balance at December 31		$ 30,783	$ 27,255

The Company regularly updates its estimates of liabilities for unpaid claims and claims adjustment expenses as new information becomes available and events occur which may impact the resolution of unsettled claims. Changes in prior estimates are recorded in results of operations in the year such changes are made.

As a result of changes in estimates of insured events in prior years, the liability for unpaid claims and claims adjustment expense decreased by $1,294 and $3,143 in 2006 and 2005, respectively. The favorable development experienced in both years was driven mainly by better than expected loss experience in group life.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

12. LIABILITIES FOR CONTRACT GUARANTEES

On January 1, 2004, the Company adopted the AICPA’s SOP 03-1. The major provisions of SOP 03-1 that affect the Company require:

o Establishment of reserves primarily related to death benefit and income benefit guarantees provided under variable annuity contracts;

o Deferral of sales inducements that meet certain criteria, and amortization using the same method used for DAC; and

o Reporting and measuring the Company’s interest in its separate accounts as investments.

The cumulative effect, reported after tax and net of related effects on DAC, upon adoption of SOP 03-1 at January 1, 2004, decreased net income and stockholder’s equity by $8.9 million and reduced accumulated other comprehensive income by $2.1 million. The decrease in net income was comprised of an increase in future contract and policy benefits (primarily for variable annuity contracts) of $46.7 million, pretax, an increase in DAC of $29.5 million, pretax, and the recognition of the unrealized gain on investments in separate accounts of $3.5 million, pretax.

The Company offers various guarantees to certain policyholders including a return of no less than (a) total deposits made on the contract adjusted for any customer withdrawals, (b) total deposits made on the contract adjusted for any customer withdrawals plus a minimum return, or (c) the highest contract value on a specified anniversary date minus any customer withdrawals following the contract anniversary. These guarantees include benefits that are payable in the event of death, upon annuitization, or at specified dates during the accumulation period of an annuity.

The table below represents information regarding the Company’s variable annuity contracts with guarantees at December 31, 2006:

Benefit Type	Account Balance	Net Amount at Risk 1	Average Attained Age
Minimum Death	$ 16,848,818	$ 1,612,783	66.4
Minimum Income	$ 387,699	$ 56,526	60.0
Minimum Accumulation or Withdrawal	$ 3,068,060	$ 41	61.9

The table below represents information regarding the Company’s variable annuity contracts with guarantees at December 31, 2005:

Benefit Type	Account Balance	Net Amount at Risk 1	Average Attained Age
Minimum Death	$ 16,316,183	$ 2,126,214	66.1
Minimum Income	$ 385,378	$ 68,802	59.3
Minimum Accumulation or Withdrawal	$ 1,669,284	$ 182	61.2

¹Net amount at risk represents the difference between guaranteed benefits and account balance.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

12. LIABILITIES FOR CONTRACT GUARANTEES (CONTINUED)

The following roll-forward summarizes the reserve for the GMDB’s and GMIB’s at December 31, 2006:

	Guaranteed Minimum Death Benefit	Guaranteed Minimum Income Benefit	Total
Balance at January 1, 2006	$ 41,749	$ 3,000	$ 44,749
Benefit Ratio Change /   Assumption Changes	(6,594)	(925)	(7,519)
Incurred guaranteed benefits	51,255	383	51,638
Paid guaranteed benefits	(49,242)	(1,153)	(50,395)
Interest	2,755	143	2,898
Balance at December 31, 2006	$ 39,923	$ 1,448	$ 41,371

The following roll-forward summarizes the reserve for the GMDB’s and GMIB’s at December 31, 2005:

	Guaranteed Minimum Death Benefit	Guaranteed Minimum Income Benefit	Total
Balance at January 1, 2005	$ 28,313	$ 2,422	$ 30,735
Benefit Ratio Change /   Assumption Changes	15,205	(172)	15,033
Incurred guaranteed benefits	35,559	560	36,119
Paid guaranteed benefits	(39,308)	-	(39,308)
Interest	1,980	190	2,170
Balance at December 31, 2005	$ 41,749	$ 3,000	$ 44,749

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

12. LIABILITIES FOR CONTRACT GUARANTEES (CONTINUED)

The liability for death and income benefit guarantees is established equal to a benefit ratio multiplied by the cumulative contract charges earned, plus accrued interest less contract benefit payments. The benefit ratio is calculated as the estimated present value of all expected contract benefits divided by the present value of all expected contract charges. The benefit ratio may be in excess of 100%. For guarantees in the event of death, benefits represent the current guaranteed minimum death payments in excess of the current account balance. For guarantees at annuitization, benefits represent the present value of the minimum guaranteed annuity benefits in excess of the current account balance.

Projected benefits and assessments used in determining the liability for guarantees are developed using models and stochastic scenarios that are also used in the development of estimated expected future gross profits. Underlying assumptions for the liability related to income benefits include assumed future annuitization elections based upon factors such as eligibility conditions and the annuitant’s attained age.

The liability for guarantees is re-evaluated regularly, and adjustments are made to the liability balance through a charge or credit to policyholder benefits.

GMAB’s or GMWB’s are considered to be derivatives under SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," and are recorded at fair value through earnings. The fair value of the embedded derivatives is calculated stochastically using risk neutral scenarios over a fifty-year projection. Policyholder assumptions are based on experience studies and industry standards. The GMAB’s or GMWB’s constituted an asset in the amount of $8.4 million and $0.2 million at December 31, 2006 and 2005, respectively.

Sales Inducements

The Company currently offers enhanced or bonus crediting rates to policyholders on certain of its annuity products. Effective January 1, 2004, upon adoption of SOP 03-1, the expenses associated with offering a bonus are deferred and amortized over the life of the related contract in a pattern consistent with the amortization of DAC. Previously some bonuses were deferred and amortized while others were expensed.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

13. DEFERRED POLICY ACQUISITION COSTS (DAC)

The changes in DAC for the years ended December 31 were as follows:

	2006	2005
Balance at January 1	$ 1,341,377	$ 1,147,181
Acquisition costs deferred	264,648	261,058
Amortized to expense during the year	(391,585)	(226,355)
Adjustment for unrealized investment losses during the year	19,766	159,493
Balance at December 31	$ 1,234,206	$ 1,341,377

14. VALUE OF BUSINESS ACQUIRED (VOBA)

The changes in VOBA for the years ended December 31 were as follows:

	2006	2005
Balance at January 1	$ 53,670	$ 24,130
Amortized to expense during the year	(7,597)	(17,467)
Adjustment for unrealized investment losses during the year	1,671	47,007
Balance at December 31	$ 47,744	$ 53,670

15. SEGMENT INFORMATION

As described below, the Company conducts business principally in three operating segments and maintains a Corporate Segment to provide for the capital needs of the three operating segments and to engage in other financing related activities. Each segment is defined consistently with the way results are evaluated by the chief operating decision-maker.

Net investment income is allocated based on segmented assets by line of business. Allocations of operating expenses among segments are made using both standard rates and actual expenses incurred. Management evaluates the results of the operating segments on an after-tax basis. The Company does not depend on one or a few customers, brokers or agents for a significant portion of its operations.

Effective January 1, 2006, the Company adopted a new capital allocation methodology for measurement of segment operating results to more closely align with rating agency standards. The changes impact the amount of capital and income on capital that is allocated to the Wealth Management, Individual Protection and Group Protection segments from the Corporate segment.

Wealth Management

The Wealth Management Segment markets, sells and administers individual and group variable annuity products, individual and group fixed annuity products and other retirement benefit products, and funding agreements. These contracts may contain any of a number of features including variable or fixed interest rates and equity index options and may be denominated in foreign currencies. The Company uses derivative instruments to manage the risks inherent in the contract options. Additionally, the Company consolidates the Trust as a component of the Wealth Management Segment.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

15. SEGMENT INFORMATION (CONTINUED)

Individual Protection

The Individual Protection Segment markets, sells and administers a variety of life insurance products sold to individuals and corporate owners of life insurance. The products include whole life, universal life and variable life products.

Group Protection

The Group Protection Segment markets, sells and administers group life, long-term disability, short-term disability and stop loss insurance to small and mid-size employers in the State of New York through the Company’s subsidiary, SLNY.

Corporate

The Corporate Segment includes the unallocated capital of the Company, its debt financing, certain consolidated investments in VIEs, and items not otherwise attributable to the other segments.

The following amounts pertain to the various business segments:

	Year ended December 31, 2006
	Wealth	Individual	Group
	Management	Protection	Protection	Corporate	Totals
Total revenues	$ 1,386,626	$ 101,447	$ 39,833	$ 100,567	$ 1,628,473
Total expenditures	1,354,554	95,815	35,356	66,068	1,551,793
Income before income tax expense	32,072	5,632	4,477	34,499	76,680
Net income	39,857	3,801	2,910	31,724	78,292
Total assets	$ 41,485,295	$ 5,784,705	$ 78,838	$1,633,710	$ 48,982,548

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

15. SEGMENT INFORMATION (CONTINUED)

The following amounts pertain to the various business segments:

	Year ended December 31, 2005
	Wealth	Individual	Group
	Management	Protection	Protection	Corporate	Totals
Total revenues	$ 1,342,509	$ 74,535	$ 32,604	$ 110,537	$ 1,560,185
Total expenditures	1,220,198	70,991	32,333	64,636	1,388,158
Income before income tax expense and minority interest	122,311	3,544	271	45,901	172,027
Net income	93,570	2,443	176	36,963	133,152
Total assets	$ 38,631,963	$ 6,005,424	$ 55,319	$1,314,140	$ 46,006,846
	Year ended December 31, 2004
	Wealth	Individual	Group
	Management	Protection	Protection	Corporate	Totals
Total revenues	$ 1,284,873	$ 65,366	$ 34,908	$ 162,596	$ 1,547,743
Total expenditures	1,054,852	60,785	31,605	93,470	1,240,712
Income before income tax expense, minority interest and cumulative effect of change in accounting principle	230,021	4,581	3,303	69,126	307,031
Net income	166,309	3,118	2,147	49,702	221,276
Total assets	$ 40,961,145	$ 4,111,638	$ 53,131	$1,561,629	$ 46,687,543

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

15. SEGMENT INFORMATION (CONTINUED

As described earlier, effective January 1, 2006, the Company adopted a new capital allocation methodology for measurement of segment operating results to be more closely aligned with rating agency standards. The following provides a summary of the amounts allocated from the Corporate segment to the other segments related to the allocation of income on capital for the years presented:

Year ended December 31, 2006
	Wealth		Individual		Group
	Management		Protection		Protection		Corporate		Totals
Income (loss) before income tax expense and minority interest	$	38,474	$	5,397	$	775	$	(44,646)	$	-
Year ended December 31, 2005
	Wealth		Individual		Group
	Management		Protection		Protection		Corporate		Totals
Income (loss) before income tax expense and minority interest	$	37,108	$	1,429	$	362	$	(38,899)	$	-
Year ended December 31, 2004
	Wealth		Individual		Group
	Management		Protection		Protection		Corporate		Totals
Income (loss) before income tax expense and minority interest	$	31,482	$	1,015	$	277	$	(32,774)	$	-

16. REGULATORY FINANCIAL INFORMATION

The Company and its insurance subsidiaries are required to file annual statements with state regulatory authorities prepared on a statutory accounting basis prescribed or permitted by such authorities. Statutory surplus differs from stockholder's equity reported in accordance with GAAP primarily because policy acquisition costs are expensed when incurred, policy liabilities are based on different assumptions, investments are valued differently, post-retirement benefit costs are based on different assumptions, and deferred income taxes are calculated differently. The Company’s statutory financials are not prepared on a consolidated basis.

At December 31, the Company and its insurance subsidiaries’ combined statutory capital and surplus, and net income were as follows:

	Unaudited for the Years ended December 31,
	2006	2005	2004
Statutory capital and surplus	$ 1,610,425	$ 1,778,241	$ 1,822,812
Statutory net income	123,305	140,827	249,010

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

17. DIVIDEND RESTRICTIONS

The Company’s and its insurance company subsidiaries’ ability to pay dividends is subject to certain statutory restrictions. Delaware, New York, and Rhode Island have enacted laws governing the payment of dividends to stockholders by domestic insurers.

Pursuant to Delaware's statute, the maximum amount of dividends and other distributions that a domestic insurer may pay in any twelve-month period without prior approval of the Delaware Commissioner of Insurance is limited to the greater of (i) ten percent of its statutory surplus as of the preceding December 31, or (ii) the individual company's statutory net gain from operations for the preceding calendar year. Any dividends to be paid by an insurer from a source other than statutory surplus, whether or not in excess of the aforementioned threshold, would also require the prior approval of the Delaware Commissioner of Insurance. The Company is permitted to pay dividends up to a maximum of $171.2 million in 2007 without prior approval from the Delaware Commissioner of Insurance.

In 2006, the Company’s board of directors approved and the Company paid $300.0 million in dividends to the Parent with the prior approval of the Delaware Commissioner of Insurance. In 2005, the Company’s board of directors approved and the Company paid $200.0 million in dividends to the Parent, consisting of $150.6 million in cash and $49.4 million in notes. In 2004, the Company’s board of Directors approved and the Company paid $150.0 million of cash dividends to the Parent. On December 31, 2004, SCA was distributed in the form of a dividend of $6.6 million to the Parent and became a consolidated subsidiary of SLC - U.S. Ops Holdings.

New York law permits a domestic stock life insurance company to distribute a dividend to its shareholders without prior notice to the New York Superintendent of Insurance, where the aggregate amount of such dividends in any calendar year does not exceed the lesser of: (i) ten percent of its surplus to policyholders as of the immediately preceding calendar year; or (ii) its net gain from operations for the immediately preceding calendar year, not including realized capital gains. No dividends were paid by SLNY during 2006, 2005 or 2004.

Rhode Island law requires prior regulatory approval for any dividend where the amount of such dividend paid during the preceding twelve-month period would exceed the lesser of (i) ten percent of the insurance company’s surplus as of the December 31 next preceding, or (ii) its net gain from operations, not including realized capital gains, for the immediately preceding calendar year, excluding pro rata distributions of any class of the insurance company’s own securities. No dividends were paid by Independence Life during 2006, 2005 or 2004.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

18. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME

The components of accumulated other comprehensive income as of December 31 were as follows:

	2006	2005	2004
Unrealized gains on available-for-sale   securities	$ 38,400	$ 56,493	$ 485,553
Reserve allocation	(9,346)	(22,039)	-
Minimum pension liability adjustment	(1,516)	(2,834)	-
DAC allocation	(2,719)	(12,842)	(172,945)
VOBA allocation	470	(1,201)	(48,208)
Tax effect and other	(11,259)	1,683	(83,762)
Accumulated Other Comprehensive Income	$ 14,030	$ 19,260	$ 180,638

19. COMMITMENTS AND CONTINGENCIES

Regulatory and Industry Developments

Unfavorable economic conditions may contribute to an increase in the number of insurance companies that are under regulatory supervision. This may result in an increase in mandatory assessments by state guaranty funds or voluntary payments by solvent insurance companies to cover losses to policyholders of insolvent or rehabilitated companies. Under insurance guaranty fund laws in each state, the District of Columbia and Puerto Rico, insurers licensed to do business can be assessed by state insurance guaranty associations for certain obligations of insolvent insurance companies to policyholders and claimants. Most of these laws do provide, however, that an assessment may be excused or deferred if it would threaten an insurer's solvency and further provide annual limits on such assessments. Part of the assessments paid by the Company pursuant to these laws may be used as credits for a portion of the associated premium taxes.

Litigation

The Company is not aware of any contingent liabilities arising from litigation, income taxes and other matters that could have a material effect upon the financial condition, results of operations or cash flows of the Company.

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)

For the years ended December 31, 2006, 2005 and 2004

19. COMMITMENTS AND CONTINGENCIES (CONTINUED)

Indemnities

In the normal course of its business, the Company has entered into agreements that include indemnities in favor of third parties, such as contracts with advisors and consultants, outsourcing agreements, underwriting and agency agreements, information technology agreements, distribution agreements and service agreements. The Company has also agreed to indemnify its directors and certain of its officers and employees in accordance with the Company’s by-laws. The Company believes any potential liability under these agreements is neither probable nor estimatable. Therefore, the Company has not recorded any associated liability.

Lease Commitments

The Company leases various facilities and equipment under operating leases with terms of up to six years. As of December 31, 2006, minimum future lease payments under such leases were as follows:

2007	$ 5,421
2008	2,554
2009	1,472
2010	1,072
2011	1,031
Total	$ 11,550

Total rental expense for the years ended December 31, 2006, 2005 and 2004 was $7.6 million, $8.5 million and $16.3 million, respectively.

The Company has four noncancelable sublease agreements that expire on March 31, 2008. As of December 31, 2006, the minimum future lease payments under the sublease agreements were as follows:

2007	$ 1,887
2008	293
Total	$ 2,180

20. SUBSEQUENT EVENT

On March 21, 2007, the Parent notified the Partnership that it would redeem the $600 million of 8.526% subordinated debentures and the Partnership notified the Capital Trust, the holders of the $600 million of 8.526% partnership capital securities, that it will use the proceeds from the redemption of the subordinated debentures to redeem the partnership capital securities.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder of

Sun Life Assurance Company of Canada (U.S.)

Wellesley Hills, Massachusetts

We have audited the accompanying consolidated balance sheets of Sun Life Assurance Company of Canada (U.S.) and subsidiaries (the "Company") as of December 31, 2006 and 2005, and the related consolidated statements of income, comprehensive income, stockholder’s equity, and cash flows for each of the three years in the period ended December 31, 2006.  Our audits also included the financial statement schedules listed in the Index at Item 15. These financial statements and financial statement schedules are the responsibility of the Company's management.  Our responsibility is to express an opinion on the financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 consolidated financial statements present fairly, in all material respects, the financial position of Sun Life Assurance Company of Canada (U.S.)and subsidiaries as of December 31, 2006 and 2005, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2006, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly in all material respects the information set forth therein.

As discussed in Note 1 to the consolidated financial statements, effective January 1, 2004, the Company adopted the provisions of the American Institute of Certified Public Accountants’ Statement of Position 03-1, "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts."

DELOITTE & TOUCHE LLP

Boston, Massachusetts

March 27, 2007

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Condition - December 31, 2006

Assets:
Investment in :		Shares	Cost			Value
Columbia Funds Variable Insurance Trust (VIT)
Columbia Small Cap Value Fund Sub-Account (CSC)		856	$		16,194	$		17,650
Columbia Marsico 21st Century Portfolio Sub-Account (NMT)		6,411			77,365			83,087
Columbia Marsico Growth Portfolio Sub-Account (NNG)		11,939			213,058			226,596
Columbia Marsico International Opportunities Portfolio Sub-Account (NMI)		7,533			150,849			165,345
Fidelity Variable Insurance Products Funds (VIP)
VIP Freedom 2010 Portfolio Sub-Account (F10)		257,275			2,879,154			2,974,098
VIP Freedom 2015 Portfolio Sub-Account (F15)		679,165			7,829,223			8,088,852
VIP Freedom 2020 Portfolio Sub-Account (F20)		1,240,410			14,491,579			14,984,152
Franklin Templeton Variable Insurance Products Trust (VIP)
Mutual Shares Securities Fund Sub-Account (FMS)		2,836,896			50,534,917			58,071,261
Templeton Developing Markets Securities Fund Sub-Account (TDM)		523,279			6,324,529			7,216,012
Templeton Growth Securities Fund Class 2 Sub-Account (FTG)		1,386,885			19,468,266			22,093,074
Templeton Foreign Securities Fund Sub-Account (FTI)		24,007,183			363,069,110			449,414,460
Franklin Small Cap Value Securities Fund Sub-Account (FVS)		1,703,937			27,990,327			32,016,968
Lord Abbett Series Fund, Inc.
All Value Portfolio Sub-Account (LAV)		1,294,815			19,808,570			21,338,547
Growth & Income Portfolio Sub-Account (LA1)		10,459,184			282,235,331			306,872,467
Growth Opportunities Portfolio Sub-Account (LA9)		4,070,049			55,147,793			59,707,615
Mid Cap Value Portfolio Sub-Account (LA2)		3,757,397			79,139,015			81,836,102
MFS/Sun Life Series Trust
Bond S Class Sub-Account (MF7)		6,813,333			79,095,029			75,696,129
Bond Series Sub-Account (BDS)		10,630,620			123,088,025			118,956,637
Capital Appreciation S Class Sub-Account (MFD)		1,432,822			24,139,392			29,114,937
Capital Appreciation Series Sub-Account (CAS)		22,006,317			438,100,580			451,129,499
Capital Opportunities S Class Sub-Account (CO1)		1,066,306			12,423,595			16,165,204
Capital Opportunities Series Sub-Account (COS)	11,045,890			167,056,151			168,228,908
Emerging Growth S Class Sub-Account (MFF)	1,030,145			14,401,150			18,738,332
Emerging Growth Series Sub-Account (EGS)	14,279,302			245,529,935			263,453,122
Emerging Markets Equity S Class Sub-Account (EM1)	762,301			15,400,139			18,546,786
Emerging Markets Equity Series Sub-Account (EME)	3,581,577			66,753,446			87,820,268
Global Governments S Class Sub-Account (GG1)	355,027			3,878,316			3,763,283
Global Governments Series Sub-Account (GGS)	3,385,439			38,559,543			36,224,194
Global Growth S Class Sub-Account (GG2)	551,868			6,124,404			8,625,700
Global Growth Series Sub-Account (GGR)	8,918,019			98,573,627			140,369,618
Global Total Return S Class Sub-Account (GT2)	1,016,820			16,099,635			18,292,583
Global Total Return Series Sub-Account (GTR)	8,645,019			133,230,215			156,561,297
Government Securities S Class Sub-Account (MFK)	21,648,642			278,442,827			272,339,922
Government Securities Series Sub-Account (GSS)	22,388,840			295,769,805			283,218,821
High Yield S Class Sub-Account (MFC)	16,678,380			112,372,936			114,747,256
High Yield Series Sub-Account (HYS)	26,906,029			180,331,947			186,458,777
International Growth S Class Sub-Account (IG1)	1,171,035			14,269,469			20,902,966
International Growth Series Sub-Account (IGS)	7,318,330			86,299,983			131,217,659
International Investors Trust S Class Sub-Account (MI1)	738,002			12,214,620			14,701,003
International Investors Trust Series Sub-Account (MII)	6,481,636			98,263,992			129,762,344
Massachusetts Investors Growth Stock S Class Sub-Account (M1B)	7,539,910			65,144,382			78,641,260
Massachusetts Investors Growth Stock Series Sub-Account (MIS)	29,430,616			315,236,210			309,610,081
Massachusetts Investors Trust S Class Sub-Account (MFL)	8,785,935			251,042,045			295,646,727
Massachusetts Investors Trust Series Sub-Account (MIT)	22,426,001			686,742,275			760,017,178
Mid Cap Growth S Class Sub-Account (MC1)	5,843,399			29,634,299			35,352,566
Mid Cap Growth Series Sub-Account (MCS)	8,738,619			45,847,090			53,480,348
Mid Cap Value S Class Sub-Account (MCV)	2,131,966			23,029,017			24,368,374

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Condition - December 31, 2006 - continued

MFS/Sun Life Series Trust - continued	Shares	Cost		Value
Money Market S Class Sub-Account (MM1)	153,920,232	$	153,920,232	$	153,920,232
Money Market Series Sub-Account (MMS)	183,106,091		183,106,091		183,106,091
New Discovery S Class Sub-Account (M1A)	7,994,003		107,661,214		128,063,921
New Discovery Series Sub-Account (NWD)	7,724,086		95,736,654		125,439,162
Research S Class Sub-Account (RE1)	1,529,814		22,626,827		28,454,546
Research Series Sub-Account (RES)	15,909,117		266,513,999		297,977,760
Research Growth and Income S Class Sub-Account (RG1)	741,561		9,858,520		12,643,624
Research Growth and Income Series Sub-Account (RGS)	4,551,818		59,278,499		77,972,635
Research International S Class Sub-Account (RI1)	7,517,802		116,635,829		148,626,954
Research International Series Sub-Account (RIS)	5,588,703		74,627,568		111,438,742
Strategic Growth S Class Sub-Account (SG1)	4,664,890		33,375,520		38,158,797
Strategic Growth Series Sub-Account (SGS)	3,641,133		26,240,882		30,075,762
Strategic Income S Class Sub-Account (SI1)	2,058,534		21,769,890		21,696,953
Strategic Income Series Sub-Account (SIS)	4,965,550		52,573,813		52,684,484
Strategic Value S Class Sub-Account (SVS)	847,501		8,358,677		8,983,508
Technology S Class Sub-Account (TE1)	588,405		2,380,299		3,147,970
Technology Series Sub-Account (TEC)	3,459,873		14,768,289		18,821,710
Total Return S Class Sub-Account (MFJ)	37,831,820		695,906,233		751,339,945
Total Return Series Sub-Account (TRS)	54,062,682		952,799,094		1,082,334,892
Utilities S Class Sub-Account (MFE)	2,813,073		46,933,238		64,953,860
Utilities Series Sub-Account (UTS)	14,089,311		209,317,574		327,576,477
Value S Class Sub-Account (MV1)	7,460,574		105,119,313		138,692,078
Value Series Sub-Account (MVS)	16,812,847		224,320,108		314,400,233
Oppenheimer Variable Account Funds
Capital Appreciation Fund Sub-Account (OCA)	968,954		34,786,649		39,814,313
Global Securities Fund Sub-Account (OGG)	865,584		27,657,273		31,585,162
Main Street Fund Sub-Account (OMG)	19,719,508		419,653,954		484,705,510
Main St. Small Cap Fund Sub-Account (OMS)	984,119		16,147,637		18,678,581
PIMCO Variable Insurance Trust (VIT)
Emerging Markets Bond Portfolio Sub-Account (PMB)	716,177		9,737,235		9,997,829
Low Duration Portfolio Sub-Account (PLD)	46,093,532		467,532,641		463,700,938
Real Return Porfolio Sub-Account (PRR)	3,152,812		39,918,652		37,613,046
Total Return Portfolio Sub-Account (PTR)	6,948,506		71,906,183		70,318,881
VIT All Asset Portfolio Sub-Account (PRA)	173,231		2,032,620		2,021,607
VIT Commodity Real Return Strategy Portfolio Sub-Account (PCR)	429,012		5,116,249		4,852,130
Sun Capital Advisers Trust (SCAT)
All Cap S Class Sub-Account (SSA)	406,620		4,756,452		5,143,745
FI Large Cap Growth Fund Sub-Account (LGF)	79,936		754,855		797,765
Investment Grade Bond S Class Sub-Account (IGB)	902,854		8,781,588		8,748,658
Real Estate Fund S Class Sub-Account (SRE)	3,794,658		81,436,417		99,533,882
Real Estate Fund Sub-Account (SC3)	806,178		13,785,226		19,831,982
Sun Capital Money Market S Class Sub-Account (CMM)	1,230,135		1,230,135		1,230,135
Wanger Advisors Trust
Wanger Select Sub-Account (WTF)	39,442		889,546		1,031,416
Wanger U.S. Smaller Companies Sub-Account (USC)	856	29,708			31,111
		$	9,596,450,742	$	10,807,405,092
Liability:
Payable to Sponsor					(4,358,913)
Net Assets				$	10,803,046,179

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Condition - December 31, 2006 - continued

		Applicable to Owners of				Reserve for
		Deferred Variable Annuity Contracts				Variable
		Units		Value		Annuities		Total
Net Assets Applicable to Participants:
Columbia Funds Variable Insurance Trust (VIT)
	CSC	1,411	$	17,650	$	-	$	17,650
	NMT	6,233		83,087		-		83,087
	NNG	19,841		226,596		-		226,596
	NMI	11,385		165,345		-		165,345
Fidelity Variable Insurance Products Funds
	F10	268,016		2,974,098		-		2,974,098
	F15	715,554		8,088,852		-		8,088,852
	F20	1,308,908		14,984,152		-		14,984,152
Franklin Templeton Variable Insurance Products Trust
	FMS	3,368,514		58,055,538		14,790		58,070,328
	TDM	511,631		7,216,012		-		7,216,012
	FTG	1,134,629		22,093,074		-		22,093,074
	FTI	23,906,416		449,342,669		68,946		449,411,615
	FVS	1,597,154		32,000,655		15,291		32,015,946
Lord Abbett Series Fund, Inc.
	LAV	1,530,051		21,338,547		-		21,338,547
	LA1	17,651,095		306,725,094		142,842		306,867,936
	LA9	4,902,578		59,704,699		2,804		59,707,503
	LA2	4,471,238		81,805,794		28,888		81,834,682
MFS/Sun Life Series Trust:
	MF7	6,133,332		75,687,153		8,163		75,695,316
	BDS	8,059,857		118,512,580		518,660		119,031,240
	MFD	3,012,379		29,101,960		11,054		29,113,014
	CAS	33,490,792		447,309,718		3,056,508		450,366,226
	CO1	1,377,231		16,126,210		35,513		16,161,723
	COS	16,499,273		167,974,102		165,645		168,139,747
	MFF	1,615,364		18,737,905		-		18,737,905
	EGS	24,616,070		262,589,596		774,861		263,364,457
	EM1	813,675		18,546,786		-		18,546,786
	EME	3,300,914		87,225,053		462,557		87,687,610
	GG1	283,792		3,753,996		8,446		3,762,442
	GGS	2,234,976		36,074,926		126,283		36,201,209
	GG2	548,900		8,610,955		13,820		8,624,775
	GGR	7,063,308		139,646,187		677,279		140,323,466
	GT2	1,149,650		18,278,165		13,598		18,291,763
	GTR	7,258,332		155,407,257		826,658		156,233,915
	MFK	25,308,705		272,124,208		208,705		272,332,913
	GSS	18,582,159		281,973,220		1,347,546		283,320,766
	MFC	8,020,269		114,657,496		86,400		114,743,896
	HYS	11,347,579		185,603,442		585,115		186,188,557
	IG1	1,126,228		20,902,161		-		20,902,161
	IGS	7,850,731		130,871,503		297,705		131,169,208
	MI1	703,270		14,701,003		-		14,701,003
	MII	5,838,111		128,992,193		708,645		129,700,838
	M1B	6,763,495		78,632,212		8,533		78,640,745
	MIS	35,387,641		308,991,234		587,760		309,578,994
	MFL	19,922,745		295,603,848		39,487		295,643,335
	MIT	47,922,260		756,780,443		2,818,459		759,598,902

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Condition - December 31, 2006 - continued

		Applicable to Owners of				Reserve for
		Deferred Variable Annuity Contracts				Variable
Net Assets Applicable to Participants:		Units		Value		Annuities		Total
MFS/Sun Life Series Trust - continued
	MC1	3,386,735	$	35,344,085	$	7,281	$	35,351,366
	MCS	9,323,613		53,404,786		64,342		53,469,128
	MCV	1,467,221		24,367,307		1,002		24,368,309
	MM1	15,330,003		153,781,158		137,385		153,918,543
	MMS	14,751,948		181,089,272		1,539,303		182,628,575
	M1A	8,544,360		128,022,625		37,753		128,060,378
	NWD	10,624,368		125,113,570		294,902		125,408,472
	RE1	2,112,711		28,444,409		9,220		28,453,629
	RES	18,185,522		296,534,981		1,192,350		297,727,331
	RG1	979,416		12,643,624		-		12,643,624
	RGS	6,003,584		77,763,648		206,753		77,970,401
	RI1	6,902,034		148,619,154		7,519		148,626,673
	RIS	6,522,015		111,201,562		271,310		111,472,872
	SG1	2,994,133		38,157,189		1,512		38,158,701
	SGS	4,617,313		30,013,015		54,758		30,067,773
	SI1	1,662,083		21,677,870		17,778		21,695,648
	SIS	3,797,869		52,503,651		167,529		52,671,180
	SVS	611,352		8,983,508		-		8,983,508
	TE1	332,775		3,147,970		-		3,147,970
	TEC	4,306,342		18,799,282		19,063		18,818,345
	MFJ	53,249,495		750,981,360		349,930		751,331,290
	TRS	49,201,194		1,075,191,381		5,974,968		1,081,166,349
	MFE	2,880,540		64,927,346		24,175		64,951,521
	UTS	14,522,188		326,556,922		842,687		327,399,609
	MV1	8,782,638		138,658,862		30,616		138,689,478
	MVS	17,360,967		313,253,546		1,090,209		314,343,755
Oppenheimer Variable Account Fund
	OCA	2,590,414		39,799,746		13,702		39,813,448
	OGG	1,996,825		31,585,162		-		31,585,162
	OMG	31,198,650		484,638,455		64,404		484,702,859
	OMS	925,673		18,678,581		-		18,678,581
PIMCO Variable Insurance Trust
	PMB	534,239		9,997,829		-		9,997,829
	PLD	45,681,184		463,529,365		164,761		463,694,126
	PRR	3,162,459		37,613,046		-		37,613,046
	PTR	6,231,960		70,262,437		54,472		70,316,909
	PRA	192,534		2,021,607		-		2,021,607
	PCR	494,790		4,852,130		-		4,852,130
Sun Capital Advisers Trust (SCAT)
	SSA	403,028		5,143,745		-		5,143,745
	LGF	80,896		797,765		-		797,765
	IGB	821,108		8,748,658		-		8,748,658
	SRE	5,480,387		99,527,437		6,198		99,533,635
	SC3	769,769		19,819,711		11,543		19,831,254
	CMM	119,244		1,230,135		-		1,230,135
Wanger Advisors Trust
	WTF	76,127		1,031,416		-		1,031,416
	USC	2,650		31,111		-		31,111
Net Assets			$	10,776,727,793	$	26,318,386	$	10,803,046,179

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006

		CSC			NMT			NNG			NMI
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	24		$	27		$	-		$	92
Mortality and expense risk charges		(123	)		(304	)		(1,522	)		(630	)
Distribution and administrative expense charges		(15	)		(36	)		(183	)		(76	)
Net investment income (loss)	$	(114	)	$	(313	)	$	(1,705	)	$	(614	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	2		$	116		$	158		$	342
Realized gain distributions		183			509			-			959
Net realized gains (losses)	$	185		$	625		$	158		$	1,301
Net unrealized appreciation (depreciation) on investments:
End of year	$	1,456		$	5,722		$	13,538		$	14,496
Beginning of year		20			(24	)		2,498			1,266
Change in unrealized appreciation (depreciation)	$	1,436		$	5,746		$	11,040		$	13,230
Realized and unrealized gains (losses)	$	1,621		$	6,371		$	11,198		$	14,531
Increase (Decrease) in net assets from operations	$	1,507		$	6,058		$	9,493		$	13,917
		F10			F15			F20			FMS
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	45,542		$	84,049		$	199,321		$	506,234
Mortality and expense risk charges		(20,960	)		(52,171	)		(83,895	)		(661,324	)
Distribution and administrative expense charges		(2,515	)		(6,261	)		(10,067	)		(79,359	)
Net investment income (loss)	$	22,067		$	25,617		$	105,359		$	(234,449	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	20,301		$	17,546		$	89,220		$	1,263,243
Realized gain distributions		12,581			60,034			132,880			1,289,248
Net realized gains (losses)	$	32,882		$	77,580		$	222,100		$	2,552,491
Net unrealized appreciation (depreciation) on investments:
End of year	$	94,944		$	259,629		$	492,573		$	7,536,344
Beginning of year		(1,579	)		(1,714	)		(457	)		3,305,342
Change in unrealized appreciation (depreciation)	$	96,523		$	261,343		$	493,030		$	4,231,002
Realized and unrealized gains (losses)	$	129,405		$	338,923		$	715,130		$	6,783,493
Increase (Decrease) in net assets from operations	$	151,472		$	364,540		$	820,489		$	6,549,044

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		TDM			FTG			FTI			FVS
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	44,801		$	169,897		$	3,980,644		$	165,239
Mortality and expense risk charges		(59,205	)		(224,270	)		(5,294,823	)		(417,977	)
Distribution and administrative expense charges		(7,105	)		(26,912	)		(635,379	)		(50,157	)
Net investment income (loss)	$	(21,509	)	$	(81,285	)	$	(1,949,558	)	$	(302,895	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	95,614		$	284,069		$	6,971,300		$	1,365,774
Realized gain distributions		-			473,320			-			924,640
Net realized gains (losses)	$	95,614		$	757,389		$	6,971,300		$	2,290,414
Net unrealized appreciation (depreciation) on investments:
End of year	$	891,483		$	2,624,808		$	86,345,350		$	4,026,641
Beginning of year		29,558			588,840			30,117,997			2,646,122
Change in unrealized appreciation (depreciation)	$	861,925		$	2,035,968		$	56,227,353		$	1,380,519
Realized and unrealized gains (losses)	$	957,539		$	2,793,357		$	63,198,653		$	3,670,933
Increase (Decrease) in net assets from operations	$	936,030		$	2,712,072		$	61,249,095		$	3,368,038
		LAV			LA1			LA9			LA2
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	117,857		$	3,599,374		$	-		$	389,667
Mortality and expense risk charges		(237,234	)		(3,718,600	)		(699,591	)		(985,758	)
Distribution and administrative expense charges		(28,468	)		(446,232	)		(83,951	)		(118,291	)
Net investment income (loss)	$	(147,845	)	$	(565,458	)	$	(783,542	)	$	(714,382	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	552,908		$	1,417,555		$	509,243		$	877,867
Realized gain distributions		518,793			9,645,215			576,881			6,071,489
Net realized gains (losses)	$	1,071,701		$	11,062,770		$	1,086,124		$	6,949,356
Net unrealized appreciation (depreciation) on investments:
End of year	$	1,529,977		$	24,637,136		$	4,559,822		$	2,697,087
Beginning of year		777,058			1,849,168			2,197,649			1,921,426
Change in unrealized appreciation (depreciation)	$	752,919		$	22,787,968		$	2,362,173		$	775,661
Realized and unrealized gains (losses)	$	1,824,620		$	33,850,738		$	3,448,297		$	7,725,017
Increase (Decrease) in net assets from operations	$	1,676,775		$	33,285,280		$	2,664,755		$	7,010,635

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		MF7			BDS			MFD			CAS
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	4,472,511		$	7,888,957		$	-		$	991,302
Mortality and expense risk charges		(1,100,739	)		(1,631,011	)		(422,405	)		(6,050,932	)
Distribution and administrative expense charges		(132,089	)		(195,721	)		(50,689	)		(726,112	)
Net investment income (loss)	$	3,239,683		$	6,062,225		$	(473,094	)	$	(5,785,742	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	(1,067,070	)	$	(1,306,961	)	$	1,414,284		$	(23,183,696	)
Realized gain distributions		441,140			746,842			-			-
Net realized gains (losses)	$	(625,930	)	$	(560,119	)	$	1,414,284		$	(23,183,696	)
Net unrealized appreciation (depreciation) on investments:
End of year	$	(3,398,900	)	$	(4,131,388	)	$	4,975,545		$	13,028,919
Beginning of year		(3,075,768	)		(2,912,624	)		4,662,917			(37,734,369	)
Change in unrealized appreciation (depreciation)	$	(323,132	)	$	(1,218,764	)	$	312,628		$	50,763,288
Realized and unrealized gains (losses)	$	(949,062	)	$	(1,778,883	)	$	1,726,912		$	27,579,592
Increase (Decrease) in net assets from operations	$	2,290,621		$	4,283,342		$	1,253,818		$	21,793,850
		CO1			COS			MFF			EGS
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	37,809		$	928,506		$	-		$	-
Mortality and expense risk charges		(210,869	)		(2,279,795	)		(264,565	)		(3,620,437	)
Distribution and administrative expense charges		(25,304	)		(273,575	)		(31,748	)		(434,452	)
Net investment income (loss)	$	(198,364)		$	(1,624,864	)	$	(296,313	)	$	(4,054,889	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	401,028		$	(25,390,310	)	$	1,240,630		$	(41,708,395	)
Realized gain distributions		-			-			-			-
Net realized gains (losses)	$	401,028		$	(25,390,310	)	$	1,240,630		$	(41,708,395	)
Net unrealized appreciation (depreciation) on investments:
End of year	$	3,741,609		$	1,172,757		$	4,337,182		$	17,923,187
Beginning of year		2,169,257			(46,534,693	)		4,218,284			(45,059,329	)
Change in unrealized appreciation (depreciation)	$	1,572,352		$	47,707,450		$	118,898		$	62,982,516
Realized and unrealized gains (losses)	$	1,973,380		$	22,317,140		$	1,359,528		$	21,274,121
Increase (Decrease) in net assets from operations	$	1,775,016		$	20,692,276		$	1,063,215		$	17,219,232

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		EM1			EME			GG1			GGS
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	132,161		$	962,156		$	-		$	-
Mortality and expense risk charges		(205,730	)		(1,099,284	)		(55,850	)		(494,034	)
Distribution and administrative expense charges		(24,688	)		(131,914	)		(6,702	)		(59,284	)
Net investment income (loss)	$	(98,257	)	$	(269,042	)	$	(62,552	)	$	(553,318	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	1,804,557		$	17,575,998		$	(282,372	)	$	(1,572,184	)
Realized gain distributions		2,052,823			13,060,609			41,595			377,943
Net realized gains (losses)	$	3,857,380		$	30,636,607		$	(240,777	)	$	(1,194,241	)
Net unrealized appreciation (depreciation) on investments:
End of year	$	3,146,647		$	21,066,822		$	(115,033	)	$	(2,335,349	)
Beginning of year		3,371,617			30,862,258			(546,466	)		(5,400,569	)
Change in unrealized appreciation (depreciation)	$	(224,970)		$	(9,795,436	)	$	431,433		$	3,065,220
Realized and unrealized gains (losses)	$	3,632,410		$	20,841,171		$	190,656		$	1,870,979
Increase (Decrease) in net assets from operations	$	3,534,153		$	20,572,129		$	128,104		$	1,317,661
		GG2			GGR			GT2			GTR
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	26,617		$	794,151		$	112,841		$	1,419,447
Mortality and expense risk charges		(114,796	)		(1,783,789	)		(226,669	)		(1,940,676)
Distribution and administrative expense charges		(13,776	)		(214,055	)		(27,200	)		(232,881	)
Net investment income (loss)	$	(101,955	)	$	(1,203,693	)	$	(141,028	)	$	(754,110	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	788,817		$	7,533,573		$	892,453		$	7,996,233
Realized gain distributions		-			-			1,090,421			10,252,869
Net realized gains (losses)	$	788,817		$	7,533,573		$	1,982,874		$	18,249,102
Net unrealized appreciation (depreciation) on investments:
End of year	$	2,501,296		$	41,795,991		$	2,192,948		$	23,331,082
Beginning of year		2,028,590			27,524,432			1,618,873			18,253,399
Change in unrealized appreciation (depreciation)	$	472,706		$	14,271,559		$	574,075		$	5,077,683
Realized and unrealized gains (losses)	$	1,261,523		$	21,805,132		$	2,556,949		$	23,326,785
Increase (Decrease) in net assets from operations	$	1,159,568		$	20,601,439		$	2,415,921		$	22,572,675

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		MFK			GSS			MFC			HYS
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	10,785,400		$	15,679,608		$	8,319,815		$	16,455,359
Mortality and expense risk charges		(3,625,311	)		(3,899,378	)		(1,552,881	)		(2,490,599	)
Distribution and administrative expense charges		(435,037	)		(467,925	)		(186,346	)		(298,872	)
Net investment income (loss)	$	6,725,052		$	11,312,305		$	6,580,588		$	13,665,888
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	(1,911,468	)	$	(5,585,528	)	$	(1,037,322	)	$	1,043,343
Realized gain distributions		-			-			-			-
Net realized gains (losses)	$	(1,911,468	)	$	(5,585,528	)	$	(1,037,322	)	$	1,043,343
Net unrealized appreciation (depreciation) on investments:
End of year	$	(6,102,905	)	$	(12,550,984	)	$	2,374,320		$	6,126,830
Beginning of year		(5,719,812	)		(12,909,479	)		(295,552	)		4,386,895
Change in unrealized appreciation (depreciation)	$	(383,093	)	$	358,495		$	2,669,872		$	1,739,935
Realized and unrealized gains (losses)	$	(2,294,561	)	$	(5,227,033)		$	1,632,550		$	2,783,278
Increase (Decrease) in net assets from operations	$	4,430,491		$	6,085,272		$	8,213,138		$	16,449,166
		IG1			IGS			MI1			MII
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	88,703		$	848,005		$	140,941		$	1,464,931
Mortality and expense risk charges		(266,466	)		(1,605,365	)		(179,108	)		(1,501,482	)
Distribution and administrative expense charges		(31,976	)		(192,644	)		(21,493	)		(180,178	)
Net investment income (loss)	$	(209,739	)	$	(950,004	)	$	(59,660	)	$	(216,729	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	2,475,584		$	9,968,896		$	1,631,206		$	10,861,149
Realized gain distributions		1,506,089			9,808,929			1,389,597			12,489,050
Net realized gains (losses)	$	3,981,673		$	19,777,825		$	3,020,803		$	23,350,199
Net unrealized appreciation (depreciation) on investments:
End of year	$	6,633,497		$	44,917,676		$	2,486,383		$	31,498,352
Beginning of year		6,166,302			36,760,173			2,346,862			26,275,070
Change in unrealized appreciation (depreciation)	$	467,195		$	8,157,503		$	139,521		$	5,223,282
Realized and unrealized gains (losses)	$	4,448,868		$	27,935,328		$	3,160,324		$	28,573,481
Increase (Decrease) in net assets from operations	$	4,239,129		$	26,985,324		$	3,100,664		$	28,356,752

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		M1B			MIS			MFL			MIT
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$			$	318,401		$	1,407,570		$	6,504,821
Mortality and expense risk charges		(1,172,006	)		(4,268,682	)		(3,581,743	)		(10,062,951	)
Distribution and administrative expense charges		(140,641	)		(512,242	)		(429,809	)		(1,207,554	)
Net investment income (loss)	$	(1,312,647	)	$	(4,462,523	)	$	(2,603,982	)	$	(4,765,684	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	2,840,609		$	(32,516,504	)	$	4,853,248		$	(28,871,748	)
Realized gain distributions		-			-			-			-
Net realized gains (losses)	$	2,840,609		$	(32,516,504	)	$	4,853,248		$	(28,871,748	)
Net unrealized appreciation (depreciation) on investments:
End of year	$	13,496,878		$	(5,626,129	)	$	44,604,682		$	73,274,903
Beginning of year		10,701,286			(61,260,139	)		20,212,625			(47,302,431	)
Change in unrealized appreciation (depreciation)	$	2,795,592		$	55,634,010		$	24,392,057		$	120,577,334
Realized and unrealized gains (losses)	$	5,636,201		$	23,117,506		$	29,245,305		$	91,705,586
Increase (Decrease) in net assets from operations	$	4,323,554		$	18,654,983		$	26,641,323		$	86,939,902
		MC1			MCS			MCV			MM1
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	-		$	-		$	-		$	5,668,987
Mortality and expense risk charges		(551,481	)		(797,437	)		(375,475	)		(2,080,449	)
Distribution and administrative expense charges		(66,178	)		(95,692	)		(45,057	)		(249,654	)
Net investment income (loss)	$	(617,659	)	$	(893,129	)	$	(420,532	)	$	3,338,884
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	2,599,183		$	5,021,236		$	641,666		$	-
Realized gain distributions		-			-			3,017,748			-
Net realized gains (losses)	$	2,599,183		$	5,021,236		$	3,659,414		$	-
Net unrealized appreciation (depreciation) on investments:
End of year	$	5,718,267		$	7,633,258		$	1,339,357		$	-
Beginning of year		7,561,541			11,674,220			2,427,218			-
Change in unrealized appreciation (depreciation)	$	(1,843,274	)	$	(4,040,962	)	$	(1,087,861	)	$	-
Realized and unrealized gains (losses)	$	755,909		$	980,274		$	2,571,553		$	-
Increase (Decrease) in net assets from operations	$	138,250		$	87,145		$	2,151,021		$	3,338,884

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		MMS			M1A			NWD			RE1
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	8,603,468		$	-		$	-		$	114,414
Mortality and expense risk charges		(2,407,103	)		(1,594,585	)		(1,712,562	)		(389,420	)
Distribution and administrative expense charges		(288,852	)		(191,350	)		(205,508	)		(46,730	)
Net investment income (loss)	$	5,907,513		$	(1,785,935	)	$	(1,918,070	)	$	(321,736	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	-		$	4,587,817		$	2,657,230		$	1,625,266
Realized gain distributions		-			-			-
Net realized gains (losses)	$			$	4,587,817		$	2,657,230		$	1,625,266
Net unrealized appreciation (depreciation) on investments:
End of year	$	-		$	20,402,707		$	29,702,508		$	5,827,719
Beginning of year		-			11,008,872			16,299,584			4,815,085
Change in unrealized appreciation (depreciation)	$	-		$	9,393,835		$	13,402,924		$	1,012,634
Realized and unrealized gains (losses)	$	-		$	13,981,652		$	16,060,154		$	2,637,900
Increase (Decrease) in net assets from operations	$	5,907,513		$	12,195,717		$	14,142,084		$	2,316,164
		RES			RG1			RGS			RI1
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	2,110,511		$	47,976		$	460,436		$	1,073,695
Mortality and expense risk charges		(3,983,618	)		(155,413	)		(977,696	)		(1,778,106	)
Distribution and administrative expense charges		(478,034	)		(18,650	)		(117,324	)		(213,373	)
Net investment income (loss)	$	(2,351,141	)	$	(126,087	)	$	(634,584	)	$	(917,784	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	(30,044,374	)	$	864,164		$	3,354,086		$	6,443,782
Realized gain distributions		-			-			-			6,552,897
Net realized gains (losses)	$	(30,044,374	)	$	864,164		$	3,354,086		$	12,996,679
Net unrealized appreciation (depreciation) on investments:
End of year	$	31,463,761		$	2,785,104		$	18,694,136		$	31,991,125
Beginning of year		(27,404,271	)		2,225,922			12,868,732			18,490,200
Change in unrealized appreciation (depreciation)	$	58,868,032		$	559,182		$	5,825,404		$	13,500,925
Realized and unrealized gains (losses)	$	28,823,658		$	1,423,346		$	9,179,490		$	26,497,604
Increase (Decrease) in net assets from operations	$	26,472,517		$	1,297,259		$	8,544,906		$	25,579,820

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		RIS			SG1			SGS			SI1
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	1,187,249		$	-		$	-		$	1,228,227
Mortality and expense risk charges		(1,356,635	)		(597,943	)		(423,281	)		(300,359	)
Distribution and administrative expense charges		(162,796	)		(71,753	)		(50,794	)		(36,043	)
Net investment income (loss)	$	(332,182	)	$	(669,696	)	$	(474,075	)	$	891,825
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	7,862,145		$	1,338,102		$	628,136		$	78,874
Realized gain distributions		6,257,126			-			-			234,224
Net realized gains (losses)	$	14,119,271		$	1,338,102		$	628,136		$	313,098
Net unrealized appreciation (depreciation) on investments:
End of year	$	36,811,174		$	4,783,277		$	3,834,880		$	(72,937	)
Beginning of year		27,272,053			3,636,930			2,533,037			130,239
Change in unrealized appreciation (depreciation)	$	9,539,121		$	1,146,347		$	1,301,843		$	(203,176	)
Realized and unrealized gains (losses)	$	23,658,392		$	2,484,449		$	1,929,979		$	109,922
Increase (Decrease) in net assets from operations	$	23,326,210		$	1,814,753		$	1,455,904		$	1,001,747
		SIS			SVS			TE1			TEC
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	3,304,110		$	51,787		$	-		$	-
Mortality and expense risk charges		(699,212	)		(141,898	)		(42,802	)		(239,410	)
Distribution and administrative expense charges		(83,905	)		(17,028	)		(5,136	)		(28,729	)
Net investment income (loss)	$	2,520,993		$	(107,139	)	$	(47,938	)	$	(268,139	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	363,055		$	301,205		$	327,087		$	1,238,694
Realized gain distributions		601,843			799,116			-			-
Net realized gains (losses)	$	964,898		$	1,100,321		$	327,087		$	1,238,694
Net unrealized appreciation (depreciation) on investments:
End of year	$	110,671		$	624,831		$	767,671		$	4,053,421
Beginning of year		879,917			574,518			489,246			1,694,508
Change in unrealized appreciation (depreciation)	$	(769,246	)	$	50,313		$	278,425		$	2,358,913
Realized and unrealized gains (losses)	$	195,652		$	1,150,634		$	605,512		$	3,597,607
Increase (Decrease) in net assets from operations	$	2,716,645		$	1,043,495		$	557,574		$	3,329,468

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		MFJ			TRS			MFE			UTS
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	17,094,246		$	31,789,707		$	1,274,796		$	9,076,697
Mortality and expense risk charges		(10,236,475	)		(14,103,404	)		(707,862	)		(3,852,221	)
Distribution and administrative expense charges		(1,228,377	)		(1,692,409	)		(84,943	)		(462,267	)
Net investment income (loss)	$	5,629,394		$	15,993,894		$	481,991		$	4,762,209
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	8,725,445		$	7,925,254		$	4,442,052		$	7,054,717
Realized gain distributions		26,026,621			44,831,503			-			-
Net realized gains (losses)	$	34,752,066		$	52,756,757		$	4,442,052		$	7,054,717
Net unrealized appreciation (depreciation) on investments:
End of year	$	55,433,712		$	129,535,798		$	18,020,622		$	118,258,903
Beginning of year		28,266,674			85,467,353			9,372,377			48,334,173
Change in unrealized appreciation (depreciation)	$	27,167,038		$	44,068,445		$	8,648,245		$	69,924,730
Realized and unrealized gains (losses)	$	61,919,104		$	96,825,202		$	13,090,297		$	76,979,447
Increase (Decrease) in net assets from operations	$	67,548,498		$	112,819,096		$	13,572,288		$	81,741,656
		MV1			MVS			OCA			OGG
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	1,656,030		$	4,728,075		$	64,187		$	151,710
Mortality and expense risk charges		(1,887,651	)		(3,949,948	)		(594,359	)		(358,528	)
Distribution and administrative expense charges		(226,518	)		(473,994	)		(71,323	)		(43,023	)
Net investment income (loss)	$	(458,139	)	$	304,133		$	(601,495	)	$	(249,841	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	7,611,374		$	17,281,235		$	1,241,850		$	762,887
Realized gain distributions		4,798,842			11,589,385			-			939,711
Net realized gains (losses)	$	12,410,216		$	28,870,620		$	1,241,850		$	1,702,598
Net unrealized appreciation (depreciation) on investments:
End of year	$	33,572,765		$	90,080,125		$	5,027,664		$	3,927,889
Beginning of year		23,123,045			65,162,375			3,574,570			1,895,566
Change in unrealized appreciation (depreciation)	$	10,449,720		$	24,917,750		$	1,453,094		$	2,032,323
Realized and unrealized gains (losses)	$	22,859,936		$	53,788,370		$	2,694,944		$	3,734,921
Increase (Decrease) in net assets from operations	$	22,401,797		$	54,092,503		$	2,093,449		$	3,485,080

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		OMG			OMS			PMB			PLD
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	2,802,508		$	2,805		$	438,315		$	14,487,537
Mortality and expense risk charges		(5,635,789	)		(231,282	)		(133,777	)		(5,410,436	)
Distribution and administrative expense charges		(676,295	)		(27,754	)		(16,053	)		(649,252	)
Net investment income (loss)	$	(3,509,576	)	$	(256,231	)	$	288,485		$	8,427,849
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	2,280,562		$	625,493		$	59,508		$	(284,979	)
Realized gain distributions		-			354,189			132,636			-
Net realized gains (losses)	$	2,280,562		$	979,682		$	192,144		$	(284,979	)
Net unrealized appreciation (depreciation) on investments:
End of year	$	65,051,556		$	2,530,944		$	260,594		$	(3,831,703	)
Beginning of year		18,007,029			1,592,041			127,936			(3,557,156	)
Change in unrealized appreciation (depreciation)	$	47,044,527		$	938,903		$	132,658		$	(274,547	)
Realized and unrealized gains (losses)	$	49,325,089		$	1,918,585		$	324,802		$	(559,526	)
Increase (Decrease) in net assets from operations	$	45,815,513		$	1,662,354		$	613,287		$	7,868,323
		PRR			PTR			PRA			PCR
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	1,431,183		$	2,705,004		$	94,517		$	170,309
Mortality and expense risk charges		(543,688	)		(1,001,727	)		(24,010	)		(43,739	)
Distribution and administrative expense charges		(65,243	)		(120,207	)		(2,881	)		(5,249	)
Net investment income (loss)	$	822,252		$	1,583,070		$	67,626		$	121,321
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	(55,234	)	$	(221,433	)	$	(2,975	)	$	(16,797	)
Realized gain distributions		962,371			368,461			4,986			18,436
Net realized gains (losses)	$	907,137		$	147,028		$	2,011		$	1,639
Net unrealized appreciation (depreciation) on investments:
End of year	$	(2,305,606	)	$	(1,587,302	)	$	(11,013	)	$	(264,119	)
Beginning of year		(193,830	)		(1,132,716	)		(1,694	)		(3,466	)
Change in unrealized appreciation (depreciation)	$	(2,111,776	)	$	(454,586	)	$	(9,319	)	$	(260,653	)
Realized and unrealized gains (losses)	$	(1,204,639	)	$	(307,558	)	$	(7,308	)	$	(259,014	)
Increase (Decrease) in net assets from operations	$	(382,387	)	$	1,275,512		$	60,318		$	(137,693	)

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Operations - Year Ended December 31, 2006 - continued

		SSA			LGF			IGB			SRE
		Sub-Account			Sub-Account (h)			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	52,147		$	-		$	316,976		$	1,003,008
Mortality and expense risk charges		(53,131	)		(2,789	)		(100,750	)		(1,140,714	)
Distribution and administrative expense charges		(6,376	)		(235	)		(12,090	)		(136,886	)
Net investment income (loss)	$	(7,360	)	$	(3,024	)	$	204,136		$	(274,592	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sales of fund shares	$	(34,438	)	$	2,073		$	(56,741	)	$	4,460,018
Realized gain distributions		14,222			-			80,209			3,239,219
Net realized gains (losses)	$	(20,216	)	$	2,073		$	23,468		$	7,699,237
Net unrealized appreciation (depreciation) on investments:
End of year	$	387,293		$	42,910		$	(32,930	)	$	18,097,465
Beginning of year		(203,337	)					(65,362	)		3,334,308
Change in unrealized appreciation (depreciation)	$	590,630		$	42,910		$	32,432		$	14,763,157
Realized and unrealized gains (losses)	$	570,414		$	44,983		$	55,900		$	22,462,394
Increase (Decrease) in net assets from operations	$	563,054		$	41,959		$	260,036		$	22,187,802
		SC3			CMM			WTF			USC
		Sub-Account			Sub-Account			Sub-Account			Sub-Account
Income and Expenses:
Dividend income	$	301,793		$	37,383		$	2,026		$	26
Mortality and expense risk charges		(319,823	)		(13,137	)		(10,505	)		(295	)
Distribution and administrative expense charges		(38,379	)		(1,576	)		(1,261	)		(35	)
Net investment income (loss)	$	(56,409	)	$	22,670		$	(9,740	)	$	(304	)
Realized and Unrealized gains (losses):
Realized gains (losses) on investment transactions:
Realized gains (losses) on sale of fund shares	$	2,212,436		$	-		$	13,286		$	18
Realized gain distributions		817,021			-			16,820			374
Net realized gains (losses)	$	3,029,457		$	-		$	30,106		$	392
Net unrealized appreciation (depreciation) on investments:
End of year	$	6,046,756		$	-		$	141,870		$	1,403
Beginning of year		3,114,916			-			33,477			19
Change in unrealized appreciation (depreciation)	$	2,931,840		$	-		$	108,393		$	1,384
Realized and unrealized gains (losses)	$	5,961,297		$	-		$	138,499		$	1,776
Increase (Decrease) in net assets from operations	$	5,904,888		$	22,670		$	128,759		$	1,472

(h) For the period May 1, 2006 (commencement of operations) through December 31, 2006.

See notes to financial statements.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets

	CSC						NMT							NNG							NMI							F10
	Sub-Account						Sub-Account							Sub-Account							Sub-Account							Sub-Account
	Year Ended			Period Ended				Year Ended			Period Ended			Year Ended			Period Ended				Year Ended			Period Ended				Year Ended				Period Ended
	December 31,			December 31,				December 31,			December 31,			December 31,			December 31,				December 31,			December 31,				December 31,				December 31,
	2006			2005 (e)				2006			2005 (e)			2006			2005 (e)				2006			2005 (e)				2006				2005 (f)
Operations:
Net investment income (loss)	$	(114	)	$	(40	)		$	(313	)	$	(5	)	$	(1,705	)		$	(277)		$	(614	)		$	(45	)		$	22,067			$	1,041
Net realized gains (losses)		185			2				625			(1	)		158				194			1,301				118				32,882				-
Net unrealized gains (losses)		1,436			20				5,746			(24	)		11,040				2,498			13,230				1,266				96,523				(1,579	)
Increase (Decrease) in net assets from
operations	$	1,507		$	(18	)		$	6,058		$	(30	)	$	9,493			$	2,415		$	13,917			$	1,339			$	151,472			$	(538	)
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	9,915		$	6,218			$	61,037		$	3,181		$	71,000			$	51,066		$	121,430			$	10,377			$	1,158,982			$	244,101
Net transfers between Sub-Accounts and
Fixed Account		35			-				10,788			2,053			95,841				(3,145)			14,492				3,790				1,435,328				-
Withdrawals, surrenders, annuitizations and
contract charges		(7	)		-				-			-			(74	)			-			-								(15,247	)			-
Net accumulation activity	$	9,943		$	6,218			$	71,825		$	5,234		$	166,767			$	47,921		$	135,922			$	14,167			$	2,579,063			$	244,101
Annuitization Activity:
Annuitizations	$	-		$	-			$	-		$	-		$	-			$	-		$	-			$	-			$	-			$	-
Annuity payments and contract charges		-			-				-			-			-				-			-				-				-				-
Net transfers between Sub-Accounts
Adjustments to annuity reserves		-			-				-			-			-				-			-				-				-				-
Net annuitization activity	$	-		$	-			$	-		$	-		$	-			$	-		$	-			$	-			$	-			$	-
Increase (Decrease) in net assets from
contract owner transactions	$	9,943		$	6,218			$	71,825		$	5,234		$	166,767			$	47,921		$	135,922			$	14,167			$	2,579,063			$	244,101
Increase (Decrease) in net assets	$	11,450		$	6,200			$	77,883		$	5,204		$	176,260			$	50,336		$	149,839			$	15,506			$	2,730,535			$	243,563
Net Assets:
Beginning of year	$	6,200		$				$	5,204		$			$	50,336			$			$	15,506			$				$	243,563			$
End of year	$	17,650		$	6,200			$	83,087		$	5,204		$	226,596			$	50,336		$	165,345			$	15,506			$	2,974,098			$	243,563
Unit Transactions:
Beginning of year		583			-				462			-			4,598				-			1,299								23,605
Purchased		826			583				4,870			279			6,398				4,885			8,938				958				133,187				23,605
Transferred between Sub-Accounts and Fixed
Accumulation Account		3			-				901			183			8,852				(287	)		1,148				341				136,506
Withdrawn, Surrendered and Annuitized		(1	)		-				-						(7	)														(25,282	)
End of year		1,411			583				6,233			462			19,841				4,598			11,385				1,299				268,016				23,605

(e)For the period April 25, 2005 (commencement of operations) through December 31, 2005.

(f)For the period October 31, 2005 (commencement of operations) through December 31, 2005.

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	F15						F20						FMS						TDM						FTG
	Sub-Account						Sub-Account						Sub-Account						Sub-Account						Sub-Account
		Year Ended			Period Ended			Year Ended			Period Ended			Year Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
		December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
		2006			2005 (f)			2006			2005 (f)			2006			2005			2006			2005 (f)			2006			2005
Operations:
Net investment income (loss)	$	25,617		$	896		$	105,359		$	346		$	(234,449	)	$	(188,502	)	$	(21,509	)	$	(1,130	)	$	(81,285	)	$	(41,008	)
Net realized gains (losses)		77,580			1			222,100						2,552,491			498,615			95,614			1,823			757,389			92,256
Net unrealized gains (losses)		261,343			(1,714	)		493,030			(457	)		4,231,002			1,533,819			861,925			29,558			2,035,968			361,211
Increase (Decrease) in net assets from
operations	$	364,540		$	(817	)	$	820,489		$	(111	)	$	6,549,044		$	1,843,932		$	936,030		$	30,251		$	2,712,072		$	412,459
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	6,031,331		$	189,687		$	10,650,714		$	66,245		$	17,932,205		$	8,295,868		$	4,074,300		$	611,398		$	7,237,072		$	4,090,080
Net transfers between Sub-Accounts and
Fixed Account		1,773,873			79,831			3,509,402			41,878			9,288,424			3,315,012			1,572,821			338,537			4,227,979			1,392,994
Withdrawals, surrenders, annuitizations and
contract charges		(349,436	)		(157	)		(104,396	)		(69	)		(3,675,200	)		(1,252,638	)		(291,976	)		(55,349	)		(545,397	)		(257,037	)
Net accumulation activity	$	7,455,768		$	269,361		$	14,055,720		$	108,054		$	23,545,429		$	10,358,242		$	5,355,145		$	894,586		$	10,919,654		$	5,226,037
Annuitization Activity:
Annuitizations	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Annuity payments and contract charges		-			-			-			-			(2,196	)		(1,990	)		-			-			-			-
Net transfers between Sub-Accounts		-			-			-			-			-			-			-			-			-			-
Adjustments to annuity reserves		-			-			-			-			(363	)		(285	)		-			-			-			-
Net annuitization activity	$	-		$	-		$	-		$	-		$	(2,559	)	$	(2,275	)	$	-		$	-		$	-		$	-
Increase (Decrease) in net assets from
contract owner transactions	$	7,455,768		$	269,361		$	14,055,720		$	108,054		$	23,542,870		$	10,355,967		$	5,355,145		$	894,586		$	10,919,654		$	5,226,037
Increase (Decrease) in net assets	$	7,820,308		$	268,544		$	14,876,209		$	107,943		$	30,091,914		$	12,199,899		$	6,291,175		$	924,837		$	13,631,726		$	5,638,496
Net Assets:
Beginning of year	$	268,544		$			$	107,943		$			$	27,978,414		$	15,778,515		$	924,837		$			$	8,461,348		$	2,822,852
End of year	$	8,088,852		$	268,544		$	14,984,152		$	107,943		$	58,070,328		$	27,978,414		$	7,216,012		$	924,837		$	22,093,074		$	8,461,348
Unit Transactions:
Beginning of year		25,858						10,353						1,886,907			1,146,446			82,552						518,022			185,270
Purchased		559,998			18,168			1,005,397			6,339			1,125,797			597,636			329,220			56,369			404,263			261,472
Transferred between Sub-Accounts and Fixed
Accumulation Account		164,200			7,705			321,718			4,021			593,573			235,512			125,107			31,280			242,351			91,227
Withdrawn, Surrendered and Annuitized		(34,502	)		(15	)		(28,560	)		(7	)		(237,763	)		(92,687	)		(25,248	)		(5,097	)		(30,007	)		(19,947	)
End of year		715,554			25,858			1,308,908			10,353			3,368,514			1,886,907			511,631			82,552			1,134,629			518,022

(f)   For the period October 31, 2005 (commencement of operations) through December 31, 2005.

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	FTI							FVS							LAV							LA1								LA9
	Sub-Account							Sub-Account							Sub-Account							Sub-Account								Sub-Account
		Year Ended			Year Ended				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,			December 31,				December 31,
		2006			2005				2006			2005				2006			2005				2006			2005			2006				2005
Operations:
Net investment income (loss)	$	(1,949,558	)	$	(1,223,843	)	$		(302,895	)	$	(163,221	)	$		(147,845	)	$	(85,593	)	$		(565,458	)	$	(904,299	)	$	(783,542		)	$	(375,765	)
Net realized gains (losses)		6,971,300			3,452,096				2,290,414			888,015				1,071,701			126,621				11,062,770			15,881,514			1,086,124				501,010
Net unrealized gains (losses)		56,227,353			14,258,164				1,380,519			269,153				752,919			381,290				22,787,968			(11,217,586	)		2,362,173				897,097
Increase (Decrease) in net assets from
operations	$	61,249,095		$	16,486,417		$		3,368,038		$	993,947		$		1,676,775		$	422,318		$		33,285,280		$	3,759,629		$	2,664,755			$	1,022,342
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	144,049,990		$	94,552,775		$		8,433,637		$	4,710,851		$		9,639,253		$	3,580,006		$		90,941,531		$	63,348,297		$	20,928,850			$	13,940,799
Net transfers between Sub-Accounts and
Fixed Account		26,759,979			14,124,276				3,194,026			740,975				2,976,799			741,809				22,609,610			(18,043,881	)		7,679,452				3,159,484
Withdrawals, surrenders, annuitizations and
contract charges		(19,539,053	)		(8,651,998	)			(1,599,488	)		(719,383	)			(1,284,681	)		(476,755	)			(14,208,187	)		(8,033,358	)		(2,280,937		)		(837,860	)
Net accumulation activity	$	151,270,916		$	100,025,053		$		10,028,175		$	4,732,443		$		11,331,371		$	3,845,060		$		99,342,954		$	37,271,058		$	26,327,365			$	16,262,423
Annuitization Activity:
Annuitizations	$	-		$	34,094		$		-		$	-		$		-		$	-		$		-		$	29,764		$	-			$	3,485
Annuity payments and contract charges		(12,275	)		(8,629)				(2,401	)		(2,165	)			-			-				(15,223	)		(12,131	)		(917		)		(688	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(1,428	)		(1,204	)			(377	)		(297	)			-			-				(2,726	)		(2,347	)		(59		)		(50	)
Net annuitization activity	$	(13,703	)	$	24,261		$		(2,778	)	$	(2,462	)	$		-		$	-		$		(17,949	)	$	15,286		$	(976		)	$	2,747
Increase (Decrease) in net assets from
contract owner transactions	$	151,257,213		$	100,049,314		$		10,025,397		$	4,729,981		$		11,331,371		$	3,845,060		$		99,325,005		$	37,286,344		$	26,326,389			$	16,265,170
Increase (Decrease) in net assets	$	212,506,308		$	116,535,731		$		13,393,435		$	5,723,928		$		13,008,146		$	4,267,378		$		132,610,285		$	41,045,973		$	28,991,144			$	17,287,512
Net Assets:
Beginning of year	$	236,905,307		$	120,369,576		$		18,622,511		$	12,898,583		$		8,330,401		$	4,063,023		$		174,257,651		$	133,211,678		$	30,716,359			$	13,428,847
End of year	$	449,411,615		$	236,905,307		$		32,015,946		$	18,622,511		$		21,338,547		$	8,330,401		$		306,867,936		$	174,257,651		$	59,707,503			$	30,716,359
Unit Transactions:
Beginning of year		15,021,292			8,240,520				1,065,024			784,791				673,060			344,432				11,563,674			8,986,821			2,675,259				1,203,674
Purchased		8,501,667			6,468,289				446,568			284,849				725,675			308,999				5,621,684			4,375,897			1,779,483				1,273,976
Transferred between Sub-Accounts and Fixed
Accumulation Account		1,576,633			943,675				170,833			39,422				225,941			62,863				1,377,581			(1,210,470)			651,802				285,478
Withdrawn, Surrendered and Annuitized		(1,193,176	)		(631,192	)			(85,271	)		(44,038	)			(94,625	)		(43,234	)			(911,844	)		(588,574	)		(203,966		)		(87,869	)
End of year		23,906,416			15,021,292				1,597,154			1,065,024				1,530,051			673,060				17,651,095			11,563,674			4,902,578				2,675,259

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

		LA2							MF7						BDS						MFD						CAS
		Sub-Account							Sub-Account						Sub-Account						Sub-Account						Sub-Account
			Year Ended			Year Ended				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,			December 31,			December 31,
			2006			2005				2006			2005			2006			2005			2006			2005			2006			2005
Operations:
Net investment income (loss)	$		(714,382	)	$	(471,523	)	$		3,239,683		$	3,136,240		$	6,062,225		$	7,116,061		$	(473,094	)	$	(376,850	)	$	(5,785,742	)	$	(4,290,701	)
Net realized gains (losses)			6,949,356			6,143,075				(625,930	)		1,243,423			(560,119	)		3,764,523			1,414,284			265,650			(23,183,696	)		(78,660,688	)
Net unrealized gains (losses)			775,661			(3,249,341	)			(323,132	)		(4,437,725	)		(1,218,764	)		(10,425,182	)		312,628			(46,730	)		50,763,288			85,325,353
Increase (Decrease) in net assets from
operations	$		7,010,635		$	2,422,211		$		2,290,621		$	(58,062	)	$	4,283,342		$	455,402		$	1,253,818		$	(157,930	)	$	21,793,850		$	2,373,964
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$		26,148,959		$	16,628,312		$		3,541,989		$	5,898,613		$	1,429,134		$	1,640,530		$	447,563		$	358,600		$	3,271,217		$	4,595,663
Net transfers between Sub-Accounts and
Fixed Account			6,832,710			(12,208,420	)			4,236,410			2,642,761			3,207,474			6,111,732			(202,471	)		2,271,952			(22,018,513	)		78,736,198
Withdrawals, surrenders, annuitizations and
contract charges			(3,736,971	)		(1,887,985	)			(9,419,037	)		(6,276,972	)		(31,343,359	)		(28,462,559	)		(4,924,690	)		(2,901,582	)		(100,887,714	)		(101,849,234	)
Net accumulation activity	$		29,244,698		$	2,531,907		$		(1,640,638	)	$	2,264,402		$	(26,706,751	)	$	(20,710,297	)	$	(4,679,598	)	$	(271,030	)	$	(119,635,010	)	$	(18,517,373	)
Annuitization Activity:
Annuitizations	$		-		$	7,205		$		-		$	-		$	88,147		$	-		$	-		$	-		$	182,024		$	419,455
Annuity payments and contract charges			(5,159	)		(4,565	)			(1,696	)		(1,785	)		(65,814	)		(62,907	)		(1,813	)		(1,863	)		(627,696	)		(491,722	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves			(614	)		(535	)			(161	)		(156	)		18,451			169,503			(271	)		(197	)		(45,843	)		(40,534	)
Net annuitization activity	$		(5,773	)	$	2,105		$		(1,857	)	$	(1,941	)	$	40,784		$	106,596		$	(2,084	)	$	(2,060	)	$	(491,515	)	$	(112,801	)
Increase (Decrease) in net assets from
Contract owner transactions	$		29,238,925		$	2,534,012		$		(1,642,495	)	$	2,262,461		$	(26,665,967	)	$	(20,603,701	)	$	(4,681,682	)	$	(273,090	)	$	(120,126,525	)	$	(18,630,174	)
Increase (Decrease) in net assets	$		36,249,560		$	4,956,223		$		648,126		$	2,204,399		$	(22,382,625	)	$	(20,148,299	)	$	(3,427,864	)	$	(431,020	)	$	(98,332,675	)	$	(16,256,210	)
Net Assets:
Beginning of year	$		45,585,122		$	40,628,899		$		75,047,190		$	72,842,791		$	141,413,865		$	161,562,164		$	32,540,878		$	32,971,898		$	548,698,901		$	564,955,111
End of year	$		81,834,682		$	45,585,122		$		75,695,316		$	75,047,190		$	119,031,240		$	141,413,865		$	29,113,014		$	32,540,878		$	450,366,226		$	548,698,901
Unit Transactions:
Beginning of year			2,743,587			2,592,930				6,270,011			6,078,648			9,925,405			11,381,676			3,518,217			3,522,979			41,628,520			41,868,827
Purchased			1,544,166			1,064,983				294,011			497,139			99,201			112,475			47,151			37,483			313,748			355,788
Transferred between Sub-Accounts and Fixed
Accumulation Account			406,759			(786,503	)			341,542			224,489			180,658			404,556			(21,425	)		277,473			(1,383,249	)		6,072,375
Withdrawn, Surrendered and Annuitized			(223,274	)		(127,823	)			(772,232	)		(530,265	)		(2,145,407	)		(1,973,302	)		(531,564	)		(319,718	)		(7,068,227	)		(6,668,470	)
End of year			4,471,238			2,743,587				6,133,332			6,270,011			8,059,857			9,925,405			3,012,379			3,518,217			33,490,792			41,628,520

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	CO1						COS							MFF							EGS							EM1
	Sub-Account						Sub-Account							Sub-Account							Sub-Account							Sub-Account
		Year Ended			Year Ended				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,				December 31,			December 31,
		2006			2005				2006			2005				2006			2005				2006			2005				2006			2005
Operations:
Net investment income (loss)	$	(198,364	)	$	(129,838	)		$	(1,624,864	)	$	(1,051,656	)		$	(296,313	)	$	(274,326	)		$	(4,054,889	)	$	(4,680,774	)		$	(98,257	)	$	(79,153	)
Net realized gains (losses)		401,028			149,765				(25,390,310	)		(37,726,309	)			1,240,630			308,993				(41,708,395	)		(90,895,883	)			3,857,380			761,334
Net unrealized gains (losses)		1,572,352			(98,824	)			47,707,450			37,922,114				118,898			1,211,117				62,982,516			117,240,832				(224,970	)		1,681,975
Increase (Decrease) in net assets from
operations	$	1,775,016		$	(78,897	)		$	20,692,276		$	(855,851	)		$	1,063,215		$	1,245,784			$	17,219,232		$	21,664,175			$	3,534,153		$	2,364,156
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	1,260,601		$	732,303			$	1,904,733		$	2,399,239			$	1,540,676		$	816,801			$	2,551,995		$	2,961,834			$	3,116,039		$	480,067
Net transfers between Sub-Accounts and
Fixed Account		(488,323	)		(1,257,138	)			(14,125,390	)		(17,692,371	)			122,580			(406,758	)			(14,795,779	)		(26,080,867	)			4,201,069			1,833,337
Withdrawals, surrenders, annuitizations and
contract charges		(1,369,937	)		(1,083,644	)			(34,426,630	)		(35,142,490	)			(2,507,591	)		(1,442,541	)			(57,102,777	)		(58,185,524	)			(2,657,229	)		(625,877	)
Net accumulation activity	$	(597,659	)	$	(1,608,479	)		$	(46,647,287	)	$	(50,435,622	)		$	(844,335	)	$	(1,032,498	)		$	(69,346,561	)	$	(81,304,557	)		$	4,659,879		$	1,687,527
Annuitization Activity:
Annuitizations	$	-		$	-			$	60,913		$	9,372			$	-		$	-			$	86,703		$	87,768			$	-		$	-
Annuity payments and contract charges		(6,870	)		(6,723	)			(58,899	)		(62,048	)			-			-				(145,799	)		(161,097	)			-			-
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(917	)		(612	)			(14,241	)		(11,834	)			(427	)		364				(18,553	)		68,837				-			-
Net annuitization activity	$	(7,787	)	$	(7,335	)		$	(12,227	)	$	(64,510	)		$	(427	)	$	364			$	(77,649	)	$	(4,492	)		$	-		$	-
Increase (Decrease) in net assets from
contract owner transactions	$	(605,446	)	$	(1,615,814	)		$	(46,659,514	)	$	(50,500,132	)		$	(844,762	)	$	(1,032,134	)		$	(69,424,210	)	$	(81,309,049	)		$	4,659,879		$	1,687,527
Increase (Decrease) in net assets	$	1,169,570		$	(1,694,711	)		$	(25,967,238	)	$	(51,355,983	)		$	218,453		$	213,650			$	(52,204,978	)	$	(59,644,874	)		$	8,194,032		$	4,051,683
Net Assets:
Beginning of year	$	14,992,153		$	16,686,864			$	194,106,985		$	245,462,968			$	18,519,452		$	18,305,802			$	315,569,435		$	375,214,309			$	10,352,754		$	6,301,071
End of year	$	16,161,723		$	14,992,153			$	168,139,747		$	194,106,985			$	18,737,905		$	18,519,452			$	263,364,457		$	315,569,435			$	18,546,786		$	10,352,754
Unit Transactions:
Beginning of year		1,483,374			1,675,705				21,130,668			26,220,995				1,747,003			1,863,783				30,633,904			37,868,174				441,657			340,870
Purchased		86,019			57,107				194,644			313,249				107,685			64,874				263,502			398,555				226,014			37,143
Transferred between Sub-Accounts and Fixed
Accumulation Account		(55,987	)		(133,405	)			(1,587,608	)		(2,013,497	)			(1,528	)		(35,910	)			(1,496,908	)		(2,730,091	)			245,982			93,800
Withdrawn, Surrendered and Annuitized		(136,175	)		(116,033	)			(3,238,431	)		(3,390,079	)			(237,796	)		(145,744	)			(4,784,428	)		(4,902,734	)			(99,978	)		(30,156	)
End of year		1,377,231			1,483,374				16,499,273			21,130,668				1,615,364			1,747,003				24,616,070			30,633,904				813,675			441,657

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

		EME							GG1							GGS								GG2							GGR
		Sub-Account							Sub-Account							Sub-Account								Sub-Account							Sub-Account
			Year Ended			Year Ended				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,			December 31,				December 31,
			2006			2005				2006			2005				2006			2005			2006				2005			2006				2005
Operations:
Net investment income (loss)	$		(269,042	)	$	(485,707	)	$		(62,552	)	$	407,553		$		(553,318	)	$	4,738,940		$	(101,955		)	$	(100,475	)	$	(1,203,693		)	$	(1,403,083	)
Net realized gains (losses)			30,636,607			8,043,111				(240,777	)		(83,260	)			(1,194,241	)		499,965			788,817				437,073			7,533,573				(3,627,490	)
Net unrealized gains (losses)			(9,795,436	)		12,740,867				431,433			(752,952	)			3,065,220			(9,835,773	)		472,706				222,273			14,271,559				16,422,115
Increase (Decrease) in net assets from
operations	$		20,572,129		$	20,298,271		$		128,104		$	(428,659	)	$		1,317,661		$	(4,596,868	)	$	1,159,568			$	558,871		$	20,601,439			$	11,391,542
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$		898,939		$	284,219		$		188,953		$	81,495		$		233,405		$	389,913		$	128,768			$	85,123		$	997,480			$	912,531
Net transfers between Sub-Accounts and
Fixed Account			3,256,059			14,209,394				174,553			208,862				(766,992	)		848,113			1,107,840				(144,759	)		428,100				(5,293,714	)
Withdrawals, surrenders, annuitizations and
contract charges			(18,202,140	)		(10,511,540	)			(959,659	)		(447,370	)			(8,354,263	)		(9,303,652	)		(1,307,179		)		(698,965	)		(27,659,328		)		(26,234,722	)
Net accumulation activity	$		(14,047,142	)	$	3,982,073		$		(596,153	)	$	(157,013	)	$		(8,887,850	)	$	(8,065,626	)	$	(70,571		)	$	(758,601	)	$	(26,233,748		)	$	(30,615,905	)
Annuitization Activity:
Annuitizations	$		-		$	7,876		$		-		$	-		$		26,422		$	111,898		$	-			$	-		$	142,026			$	-
Annuity payments and contract charges			(61,782	)		(24,718	)			(1,813	)		(1,902	)			(131,151	)		(36,669	)		(2,114)				(1,895	)		(110,736)				(95,928	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves			(36,528	)		(32,086	)			(165	)		(111	)			(137	)		2,622			(341		)		(272	)		(3,998		)		396
Net annuitization activity	$		(98,310	)	$	(48,928	)	$		(1,978	)	$	(2,013	)	$		(104,866	)	$	77,851		$	(2,455		)	$	(2,167	)	$	27,292			$	(95,532	)
Increase (Decrease) in net assets from
contract owner transactions	$		(14,145,452	)	$	3,933,145		$		(598,131	)	$	(159,026	)	$		(8,992,716	)	$	(7,987,775	)	$	(73,026		)	$	(760,768	)	$	(26,206,456		)	$	(30,711,437	)
Increase (Decrease) in net assets	$		6,426,677		$	24,231,416		$		(470,027	)	$	(587,685	)	$		(7,675,055	)	$	(12,584,643	)	$	1,086,542			$	(201,897	)	$	(5,605,017		)	$	(19,319,895	)
Net Assets:
Beginning of year	$		81,260,933		$	57,029,517		$		4,232,469		$	4,820,154		$		43,876,264		$	56,460,907		$	7,538,233			$	7,740,130		$	145,928,483			$	165,248,378
End of year	$		87,687,610		$	81,260,933		$		3,762,442		$	4,232,469		$		36,201,209		$	43,876,264		$	8,624,775			$	7,538,233		$	140,323,466			$	145,928,483
Unit Transactions:
Beginning of year			3,923,235			3,707,620				327,850			340,389				2,809,654			3,280,149			552,979				614,351			8,221,692				9,885,010
Purchased			35,126			13,816				14,571			5,907				15,346			20,411			9,289				6,426			56,173				54,583
Transferred between Sub-Accounts and Fixed
Accumulation Account			119,471			786,970				14,065			14,937				(61,525	)		58,577			75,554				(9,898	)		119,395				(357,428	)
Withdrawn, Surrendered and Annuitized			(776,918	)		(585,171	)			(72,694	)		(33,383	)			(528,499	)		(549,483	)		(88,922		)		(57,900	)		(1,333,952		)		(1,360,473	)
End of year			3,300,914			3,923,235				283,792			327,850				2,234,976			2,809,654			548,900				552,979			7,063,308				8,221,692

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	GT2						GTR						MFK							GSS							MFC
	Sub-Account						Sub-Account						Sub-Account							Sub-Account							Sub-Account
		Year Ended			Year Ended			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,			December 31,				December 31,
		2006			2005			2006			2005			2006			2005			2006			2005			2006				2005
Operations:
Net investment income (loss)	$	(141,028	)	$	349,518		$	(754,110	)	$	4,515,169		$	6,725,052		$	4,943,085		$	11,312,305		$	12,565,709		$	6,580,588			$	5,159,486
Net realized gains (losses)		1,982,874			1,380,816			18,249,102			13,987,861			(1,911,468	)		(1,022,090	)		(5,585,528	)		(2,015,037	)		(1,037,322		)		438,081
Net unrealized gains (losses)		574,075			(1,380,048	)		5,077,683			(14,869,273	)		(383,093	)		(3,448,153	)		358,495			(7,209,278	)		2,669,872				(5,181,899	)
Increase (Decrease) in net assets from
operations	$	2,415,921		$	350,286		$	22,572,675		$	3,633,757		$	4,430,491		$	472,842		$	6,085,272		$	3,341,394		$	8,213,138			$	415,668
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	432,332		$	974,030		$	1,051,442		$	1,414,997		$	56,642,283		$	43,461,194		$	3,344,573		$	4,675,176		$	19,354,502			$	15,071,601
Net transfers between Sub-Accounts and
Fixed Account		927,396			2,400,700			10,318,948			18,721,768			28,931,340			10,741,708			399,815			(368,890	)		3,656,850				(2,294,866	)
Withdrawals, surrenders, annuitizations
and contract charges		(1,980,174	)		(1,389,697	)		(33,502,644	)		(28,086,144	)		(22,941,550	)		(18,447,788	)		(70,684,308	)		(70,344,240	)		(11,638,843		)		(10,086,647	)
Net accumulation activity	$	(620,446	)	$	1,985,033		$	(22,132,254	)	$	(7,949,379	)	$	62,632,073		$	35,755,114		$	(66,939,920	)	$	(66,037,954	)	$	11,372,509			$	2,690,088
Annuitization Activity:
Annuitizations	$	-		$	-		$	6,591		$	180,341		$	-		$	15,734		$	475,216		$	84,194		$	-			$	3,861
Annuity payments and contract charges		(2,100	)		(1,970	)		(167,127	)		(149,588	)		(17,987	)		(17,362	)		(267,284	)		(286,165	)		(7,671		)		(7,273	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(296	)		(218	)		(95,225	)		36,634			(3,619	)		(3,811	)		(75,099	)		207,911			(1,608		)		(1,482	)
Net annuitization activity	$	(2,396	)	$	(2,188	)	$	(255,761	)	$	67,387		$	(21,606	)	$	(5,439	)	$	132,833		$	5,940		$	(9,279		)	$	(4,894	)
Increase (Decrease) in net assets from
contract owner transactions	$	(622,842	)	$	1,982,845		$	(22,388,015	)	$	(7,881,992	)	$	62,610,467		$	35,749,675		$	(66,807,087	)	$	(66,032,014	)	$	11,363,230			$	2,685,194
Increase (Decrease) in net assets	$	1,793,079		$	2,333,131		$	184,660		$	(4,248,235	)	$	67,040,958		$	36,222,517		$	(60,721,815	)	$	(62,690,620	)	$	19,576,368			$	3,100,862
Net Assets:
Beginning of year	$	16,498,684		$	14,165,553		$	156,049,255		$	160,297,490		$	205,291,955		$	169,069,438		$	344,042,581		$	406,733,201		$	95,167,528			$	92,066,666
End of year	$	18,291,763		$	16,498,684		$	156,233,915		$	156,049,255		$	272,332,913		$	205,291,955		$	283,320,766		$	344,042,581		$	114,743,896			$	95,167,528
Unit Transactions:
Beginning of year		1,195,804			1,049,400			8,201,461			8,363,603			19,255,861			15,785,190			22,849,712			26,991,543			7,227,900				7,034,638
Purchased		28,281			71,697			53,566			78,262			5,457,295			4,185,925			237,675			310,904			1,406,471				1,148,789
Transferred between Sub-Accounts and
Fixed Accumulation Account		55,914			179,527			549,127			1,133,661			2,767,847			1,042,444			43,682			20,383			243,007				(167,745	)
Withdrawn, Surrendered and Annuitized		(130,349	)		(104,820	)		(1,545,822	)		(1,374,065	)		(2,172,298	)		(1,757,698	)		(4,548,910	)		(4,473,118	)		(857,109		)		(787,782	)
End of year		1,149,650			1,195,804			7,258,332			8,201,461			25,308,705			19,255,861			18,582,159			22,849,712			8,020,269				7,227,900

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	HYS						IG1						IGS						MI1								MII
	Sub-Account						Sub-Account						Sub-Account						Sub-Account								Sub-Account
		Year Ended			Year Ended			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,				December 31,			December 31,
		2006			2005			2006			2005			2006			2005				2006			2005				2006			2005
Operations:
Net investment income (loss)	$	13,665,888		$	16,583,114		$	(209,739	)	$	(139,436	)	$	(950,004	)	$	(580,350	)		$	(59,660	)	$	(60,142	)	$		(216,729	)	$	(302,197	)
Net realized gains (losses)		1,043,343			(608,245	)		3,981,673			1,243,214			19,777,825			4,193,256				3,020,803			686,620				23,350,199			5,442,783
Net unrealized gains (losses)		1,739,935			(14,566,351	)		467,195			1,006,266			8,157,503			10,677,698				139,521			567,446				5,223,282			7,259,782
Increase (Decrease) in net assets from
operations	$	16,449,166		$	1,408,518		$	4,239,129		$	2,110,044		$	26,985,324		$	14,290,604			$	3,100,664		$	1,193,924		$		28,356,752		$	12,400,368
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	1,669,446		$	1,877,206		$	446,346		$	295,725		$	1,020,027		$	716,020			$	231,030		$	219,342		$		1,117,644		$	778,821
Net transfers between Sub-Accounts and
Fixed Account		(2,403,644	)		(10,914,620	)		834,737			(114,486	)		5,042,260			806,816				3,396,874			3,293,495				18,016,000			24,618,251
Withdrawals, surrenders, annuitizations
and contract charges		(44,119,232	)		(45,388,131	)		(2,865,599	)		(1,611,402	)		(21,189,319	)		(15,624,729	)			(2,901,252	)		(518,923	)			(22,779,644	)		(14,876,076	)
Net accumulation activity	$	(44,853,430	)	$	(54,425,545	)	$	(1,584,516	)	$	(1,430,163	)	$	(15,127,032	)	$	(14,101,893	)		$	726,652		$	2,993,914		$		(3,646,000	)	$	10,520,996
Annuitization Activity:
Annuitizations	$	46,421		$	177,130		$	-		$	-		$	19,077		$	10,297			$	-		$	-		$		-		$	-
Annuity payments and contract charges		(302,946	)		(133,203	)		-			-			(32,077	)		(24,069	)			-			-				(43,454	)		(23,404	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		50,603			(24,135	)		(165	)		(81	)		(10,659	)		(5,406	)			-			-				(29,289	)		14,392
Net annuitization activity	$	(205,922	)	$	19,792		$	(165	)	$	(81	)	$	(23,659	)	$	(19,178	)		$	-		$	-		$		(72,743	)	$	(9,012	)
Increase (Decrease) in net assets from
contract owner transactions	$	(45,059,352	)	$	(54,405,753	)	$	(1,584,681	)	$	(1,430,244	)	$	(15,150,691	)	$	(14,121,071	)		$	726,652		$	2,993,914		$		(3,718,743	)	$	10,511,984
Increase (Decrease) in net assets	$	(28,610,186	)	$	(52,997,235	)	$	2,654,448		$	679,800		$	11,834,633		$	169,533			$	3,827,316		$	4,187,838		$		24,638,009		$	22,912,352
Net Assets:
Beginning of year	$	214,798,743		$	267,795,978		$	18,247,713		$	17,567,913		$	119,334,575		$	119,165,042			$	10,873,687		$	6,685,849		$		105,062,829		$	82,150,477
End of year	$	186,188,557		$	214,798,743		$	20,902,161		$	18,247,713		$	131,169,208		$	119,334,575			$	14,701,003		$	10,873,687		$		129,700,838		$	105,062,829
Unit Transactions:
Beginning of year		14,094,783			17,473,238			1,221,898			1,328,474			8,840,529			9,969,224				661,889			464,476				5,984,457			5,206,659
Purchased		116,036			120,125			27,024			21,208			66,415			55,567				11,654			13,590				57,377			46,241
Transferred between Sub-Accounts and
Fixed Accumulation Account		(155,238	)		(690,416	)		47,674			(9,706	)		304,306			65,086				183,092			218,018				893,568			1,586,799
Withdrawn, Surrendered and Annuitized		(2,708,002	)		(2,808,164	)		(170,368	)		(118,078	)		(1,360,519	)		(1,249,348	)			(153,365	)		(34,195	)			(1,097,291	)		(855,242	)
End of year		11,347,579			14,094,783			1,126,228			1,221,898			7,850,731			8,840,529				703,270			661,889				5,838,111			5,984,457

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	M1B						MIS						MFL						MIT							MC1
	Sub-Account						Sub-Account						Sub-Account						Sub-Account							Sub-Account
		Year Ended			Year Ended			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,				December 31,			December 31,
		2006			2005			2006			2005			2006			2005			2006			2005				2006			2005
Operations:
Net investment income (loss)	$	(1,312,647	)	$	(1,033,378	)	$	(4,462,523	)	$	(3,558,811	)	$	(2,603,982	)	$	(1,196,005	)	$	(4,765,684	)	$	(4,043,090	)	$		(617,659	)	$	(657,849	)
Net realized gains (losses)		2,840,609			906,367			(32,516,504	)		(52,016,751	)		4,853,248			1,694,726			(28,871,748	)		(49,530,970	)			2,599,183			1,461,744
Net unrealized gains (losses)		2,795,592			2,046,378			55,634,010			64,611,410			24,392,057			8,643,645			120,577,334			105,268,694				(1,843,274	)		(452,260	)
Increase (Decrease) in net assets from
operations	$	4,323,554		$	1,919,367		$	18,654,983		$	9,035,848		$	26,641,323		$	9,142,366		$	86,939,902		$	51,694,634		$		138,250		$	351,635
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	6,419,803		$	6,618,077		$	2,703,815		$	2,961,399		$	81,073,506		$	48,524,695		$	7,051,917		$	7,191,804		$		847,927		$	1,776,762
Net transfers between Sub-Accounts and
Fixed Account		(1,867,565	)		(176,125	)		(20,440,145	)		(25,634,138	)		20,863,108			62,520,334			(26,928,173	)		(32,262,023	)			(1,022,157	)		(2,379,908	)
Withdrawals, surrenders, annuitizations
and contract charges		(8,892,827	)		(5,407,268	)		(57,038,071	)		(52,665,488	)		(17,984,649	)		(10,225,205	)		(165,854,065	)		(161,313,860	)			(5,000,852	)		(3,429,952	)
Net accumulation activity	$	(4,340,589	)	$	1,034,684		$	(74,774,401	)	$	(75,338,227	)	$	83,951,965		$	100,819,824		$	(185,730,321	)	$	(186,384,079	)	$		(5,175,082	)	$	(4,033,098	)
Annuitization Activity:
Annuitizations	$	-		$	-		$	136,017		$	167,871		$	-		$	9,176		$	442,410		$	265,966		$		-		$	-
Annuity payments and contract charges		(1,353	)		(1,322	)		(95,740	)		(96,365	)		(4,041	)		(3,030	)		(510,623	)		(584,424	)			(1,498	)		(1,482	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(157	)		(150	)		(8,117	)		(3,497	)		(871	)		(768	)		(142,634	)		(37,994	)			(140	)		(162	)
Net annuitization activity	$	(1,510	)	$	(1,472	)	$	32,160		$	68,009		$	(4,912	)	$	5,378		$	(210,847	)	$	(356,452	)	$		(1,638	)	$	(1,644	)
Increase (Decrease) in net assets from
contract owner transactions	$	(4,342,099	)	$	1,033,212		$	(74,742,241	)	$	(75,270,218	)	$	83,947,053		$	100,825,202		$	(185,941,168	)	$	(186,740,531	)	$		(5,176,720	)	$	(4,034,742	)
Increase (Decrease) in net assets	$	(18,545	)	$	2,952,579		$	(56,087,258	)	$	(66,234,370	)	$	110,588,376		$	109,967,568		$	(99,001,266	)	$	(135,045,897	)	$		(5,038,470	)	$	(3,683,107	)
Net Assets:
Beginning of year	$	78,659,290		$	75,706,711		$	365,666,252		$	431,900,622		$	185,054,959		$	75,087,391		$	858,600,168		$	993,646,065		$		40,389,836		$	44,072,943
End of year	$	78,640,745		$	78,659,290		$	309,578,994		$	365,666,252		$	295,643,335		$	185,054,959		$	759,598,902		$	858,600,168		$		35,351,366		$	40,389,836
Unit Transactions:
Beginning of year		7,285,892			7,277,585			43,809,878			52,900,145			14,452,676			7,171,814			59,467,044			71,195,865				3,978,465			4,467,480
Purchased		498,468			585,724			331,428			365,565			5,525,704			3,620,458			494,788			576,585				83,713			168,616
Transferred between Sub-Accounts and
Fixed Accumulation Account		(154,128	)		(16,700	)		(2,507,580	)		(3,254,704	)		1,386,179			4,587,800			(1,858,078	)		(2,376,201	)			(126,108	)		(287,385	)
Withdrawn, Surrendered and Annuitized		(866,737	)		(560,717	)		(6,246,085	)		(6,201,128	)		(1,441,814	)		(927,396	)		(10,181,494	)		(9,929,205	)			(549,335	)		(370,246	)
End of year		6,763,495			7,285,892			35,387,641			43,809,878			19,922,745			14,452,676			47,922,260			59,467,044				3,386,735			3,978,465

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	MCS						MCV						MM1						MMS						M1A
	Sub-Account						Sub-Account						Sub-Account						Sub-Account						Sub-Account
		Year Ended			Year Ended			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,			December 31,			December 31,
		2006			2005			2006			2005			2006			2005			2006			2005			2006			2005
Operations:
Net investment income (loss)	$	(893,129	)	$	(1,052,820	)	$	(420,532	)	$	(407,130	)	$	3,338,884		$	753,497		$	5,907,513		$	2,633,473		$	(1,785,935	)	$	(1,099,248	)
Net realized gains (losses)		5,021,236			3,972,155			3,659,414			3,818,857			-			-			-			-			4,587,817			696,265
Net unrealized gains (losses)		(4,040,962	)		(2,471,284	)		(1,087,861	)		(2,039,365	)		-			-			-			-			9,393,835			4,109,208
Increase (Decrease) in net assets from
operations	$	87,145		$	448,051		$	2,151,021		$	1,372,362		$	3,338,884		$	753,497		$	5,907,513		$	2,633,473		$	12,195,717		$	3,706,225
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	447,221		$	496,352		$	544,143		$	1,740,028		$	47,732,535		$	35,338,140		$	10,379,663		$	10,162,763		$	36,655,110		$	24,188,648
Net transfers between Sub-Accounts and
Fixed Account		(3,463,195	)		(4,910,417	)		(1,040,782	)		272,585			24,941,438			20,039,535			91,383,956			71,780,580			5,504,921			4,241,256
Withdrawals, surrenders, annuitizations
and contract charges		(12,252,132	)		(11,189,733	)		(2,835,250	)		(1,811,200	)		(39,267,818	)		(22,962,808	)		(116,844,137	)		(121,034,104	)		(8,526,656	)		(4,050,830	)
Net accumulation activity	$	(15,268,106	)	$	(15,603,798	)	$	(3,331,889	)	$	201,413		$	33,406,155		$	32,414,867		$	(15,080,518	)	$	(39,090,761	)	$	33,633,375		$	24,379,074
Annuitization Activity:
Annuitizations	$	8,063		$	-		$	-		$	-		$	-		$	17,988		$	194,051		$	408,596		$	-		$	9,537
Annuity payments and contract charges		(12,655	)		(16,223	)		(151	)		(144	)		(23,945	)		(22,657	)		(285,303	)		(289,212	)		(7,355	)		(6,180	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		3,251			(1,687	)		(23	)		(20	)		(2,127	)		(2,552	)		(34,535	)		4,455			(938	)		(753	)
Net annuitization activity	$	(1,341	)	$	(17,910	)	$	(174	)	$	(164	)	$	(26,072	)	$	(7,221	)	$	(125,787	)	$	123,839		$	(8,293	)	$	2,604
Increase (Decrease) in net assets from
contract owner transactions	$	(15,269,447	)	$	(15,621,708	)	$	(3,332,063	)	$	201,249		$	33,380,083		$	32,407,646		$	(15,206,305	)	$	(38,966,922	)	$	33,625,082		$	24,381,678
Increase (Decrease) in net assets	$	(15,182,302	)	$	(15,173,657	)	$	(1,181,042	)	$	1,573,611		$	36,718,967		$	33,161,143		$	(9,298,792	)	$	(36,333,449	)	$	45,820,799		$	28,087,903
Net Assets:
Beginning of year	$	68,651,430		$	83,825,087		$	25,549,351		$	23,975,740		$	117,199,576		$	84,038,433		$	191,927,367		$	228,260,816		$	82,239,579		$	54,151,676
End of year	$	53,469,128		$	68,651,430		$	24,368,309		$	25,549,351		$	153,918,543		$	117,199,576		$	182,628,575		$	191,927,367		$	128,060,378		$	82,239,579
Unit Transactions:
Beginning of year		12,048,420			14,935,080			1,682,084			1,649,863			11,958,338			8,633,307			15,938,732			19,134,186			6,422,025			4,707,914
Purchased		78,025			91,977			34,925			126,139			4,902,533			3,695,752			836,746			837,549			2,450,426			1,817,450
Transferred between Sub-Accounts and
Fixed Accumulation Account		(638,672	)		(937,855	)		(66,820	)		32,028			2,188,498			1,491,596			6,692,374			5,232,383			376,434			281,762
Withdrawn, Surrendered and Annuitized		(2,164,160	)		(2,040,782	)		(182,968	)		(125,946	)		(3,719,366	)		(1,862,317	)		(8,715,904	)		(9,265,386	)		(704,525	)		(385,101	)
End of year		9,323,613			12,048,420			1,467,221			1,682,084			15,330,003			11,958,338			14,751,948			15,938,732			8,544,360			6,422,025

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	NWD						RE1							RES						RG1						RGS
	Sub-Account						Sub-Account							Sub-Account						Sub-Account						Sub-Account
		Year Ended			Year Ended			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,			December 31,			December 31,
		2006			2005			2006			2005				2006			2005			2006			2005			2006			2005
Operations:
Net investment income (loss)	$	(1,918,070	)	$	(2,066,947	)	$	(321,736	)	$	(309,409	)	$		(2,351,141	)	$	(3,088,143	)	$	(126,087	)	$	(101,190	)	$	(634,584	)	$	(578,321	)
Net realized gains (losses)		2,657,230			(4,566,892	)		1,625,266			886,042				(30,044,374	)		(46,532,878	)		864,164			288,429			3,354,086			1,111,794
Net unrealized gains (losses)		13,402,924			10,556,317			1,012,634			960,746				58,868,032			72,072,584			559,182			248,578			5,825,404			3,243,621
Increase (Decrease) in net assets from
operations	$	14,142,084		$	3,922,478		$	2,316,164		$	1,537,379		$		26,472,517		$	22,451,563		$	1,297,259		$	435,817		$	8,544,906		$	3,777,094
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	948,849		$	847,170		$	2,310,816		$	3,237,528		$		3,106,787		$	2,711,614		$	241,147		$	30,188		$	743,733		$	696,223
Net transfers between Sub-Accounts and
Fixed Account		(4,599,333	)		(10,303,966	)		(359,253	)		(44,410	)			(16,159,167	)		(16,842,629	)		2,784,437			387,312			6,351,781			5,711,630
Withdrawals, surrenders, annuitizations
and contract charges		(22,572,953	)		(21,263,992	)		(3,243,998	)		(2,196,371	)			(68,380,487	)		(71,202,208	)		(1,631,089	)		(774,018	)		(15,821,795	)		(12,416,009	)
Net accumulation activity	$	(26,223,437	)	$	(30,720,788	)	$	(1,292,435	)	$	996,747		$		(81,432,867	)	$	(85,333,223	)	$	1,394,495		$	(356,518	)	$	(8,726,281	)	$	(6,008,156	)
Annuitization Activity:
Annuitizations	$	44,029		$	44,442		$	-		$	-		$		51,212		$	30,358		$	-		$	-		$	-		$	14,165
Annuity payments and contract charges		(47,257	)		(49,118	)		(1,840	)		(1,798	)			(239,516	)		(264,185	)		-			-			(41,670	)		(22,485	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(8,874	)		(9,087	)		(218	)		(198	)			(74,711	)		46,003			-			-			2,742			(7,062	)
Net annuitization activity	$	(12,102	)	$	(13,763	)	$	(2,058	)	$	(1,996	)	$		(263,015	)	$	(187,824	)	$	-		$	-		$	(38,928	)	$	(15,382	)
Increase (Decrease) in net assets from
contract owner transactions	$	(26,235,539	)	$	(30,734,551	)	$	(1,294,493	)	$	994,751		$		(81,695,882	)	$	(85,521,047	)	$	1,394,495		$	(356,518	)	$	(8,765,209	)	$	(6,023,538	)
Increase (Decrease) in net assets	$	(12,093,455	)	$	(26,812,073	)	$	1,021,671		$	2,532,130		$		(55,223,365	)	$	(63,069,484	)	$	2,691,754		$	79,299		$	(220,303	)	$	(2,246,444	)
Net Assets:
Beginning of year	$	137,501,927		$	164,314,000		$	27,431,958		$	24,899,828		$		352,950,696		$	416,020,180		$	9,951,870		$	9,872,571		$	78,190,704		$	80,437,148
End of year	$	125,408,472		$	137,501,927		$	28,453,629		$	27,431,958		$		297,727,331		$	352,950,696		$	12,643,624		$	9,951,870		$	77,970,401		$	78,190,704
Unit Transactions:
Beginning of year		12,797,342			15,598,558			2,260,668			2,212,955				23,187,138			28,414,936			870,283			905,199			6,688,530			7,171,116
Purchased		85,580			78,127			160,843			266,534				239,177			209,773			20,630			2,824			62,559			60,784
Transferred between Sub-Accounts and
Fixed Accumulation Account		(435,237	)		(951,994	)		(47,374	)		(16,685	)			(1,153,335	)		(1,185,133	)		227,234			33,373			540,983			493,062
Withdrawn, Surrendered and Annuitized		(1,823,317	)		(1,927,349	)		(261,426	)		(202,136	)			(4,087,458	)		(4,252,438	)		(138,731	)		(71,113	)		(1,288,488	)		(1,036,432	)
End of year		10,624,368			12,797,342			2,112,711			2,260,668				18,185,522			23,187,138			979,416			870,283			6,003,584			6,688,530

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	RI1						RIS						SG1						SGS						SI1
	Sub-Account						Sub-Account						Sub-Account						Sub-Account						Sub-Account
		Year Ended			Year Ended			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,			December 31,			December 31,
		2006			2005			2006			2005			2006			2005			2006			2005			2006			2005
Operations:
Net investment income (loss)	$	(917,784	)	$	(802,386	)	$	(332,182	)	$	(576,670	)	$	(669,696	)	$	(635,402	)	$	(474,075	)	$	(442,231	)	$	891,825		$	1,175,357
Net realized gains (losses)		12,996,679			3,963,011			14,119,271			3,057,266			1,338,102			837,007			628,136			(2,028,240	)		313,098			463,425
Net unrealized gains (losses)		13,500,925			7,200,026			9,539,121			9,687,272			1,146,347			(369,892	)		1,301,843			2,214,864			(203,176	)		(1,648,182	)
Increase (Decrease) in net assets from
operations	$	25,579,820		$	10,360,651		$	23,326,210		$	12,167,868		$	1,814,753		$	(168,287	)	$	1,455,904		$	(255,607	)	$	1,001,747		$	(9,400	)
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	36,303,078		$	21,667,728		$	912,018		$	451,503		$	2,024,888		$	3,477,517		$	424,552		$	116,817		$	244,594		$	348,779
Net transfers between Sub-Accounts and
Fixed Account		7,278,035			(844,724	)		12,028,268			5,119,489			(867,119	)		(1,313,001	)		(2,627,730	)		(3,430,862	)		1,537,052			1,226,603
Withdrawals, surrenders, annuitizations
and contract charges		(7,763,750	)		(3,685,141	)		(16,597,323	)		(11,179,077	)		(3,972,235	)		(3,266,776	)		(5,404,528	)		(5,251,601	)		(3,572,110	)		(3,109,910	)
Net accumulation activity	$	35,817,363		$	17,137,863		$	(3,657,037	)	$	(5,608,085	)	$	(2,814,466	)	$	(1,102,260	)	$	(7,607,706	)	$	(8,565,646	)	$	(1,790,464	)	$	(1,534,528	)
Annuitization Activity:
Annuitizations	$	-		$	8,182		$	-		$	24,750		$	-		$	-		$	52,641		$	-		$	-		$	-
Annuity payments and contract charges		(2,212	)		(1,356	)		(23,735	)		(23,151	)		(234	)		(234	)		(2,530	)		(17,921	)		(3,058	)		(3,091	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(174	)		(107	)		(2,259	)		4,117			(31	)		(30	)		(445	)		(499	)		(335	)		(311	)
Net annuitization activity	$	(2,386	)	$	6,719		$	(25,994	)	$	5,716		$	(265	)	$	(264	)	$	49,666		$	(18,420	)	$	(3,393	)	$	(3,402	)
Increase (Decrease) in net assets from
contract owner transactions	$	35,814,977		$	17,144,582		$	(3,683,031	)	$	(5,602,369	)	$	(2,814,731	)	$	(1,102,524	)	$	(7,558,040	)	$	(8,584,066	)	$	(1,793,857	)	$	(1,537,930	)
Increase (Decrease) in net assets	$	61,394,797		$	27,505,233		$	19,643,179		$	6,565,499		$	(999,978	)	$	(1,270,811	)	$	(6,102,136	)	$	(8,839,673	)	$	(792,110	)	$	(1,547,330	)
Net Assets:
Beginning of year	$	87,231,876		$	59,726,643		$	91,829,693		$	85,264,194		$	39,158,679		$	40,429,490		$	36,169,909		$	45,009,582		$	22,487,758		$	24,035,088
End of year	$	148,626,673		$	87,231,876		$	111,472,872		$	91,829,693		$	38,158,701		$	39,158,679		$	30,067,773		$	36,169,909		$	21,695,648		$	22,487,758
Unit Transactions:
Beginning of year		5,123,155			4,045,282			6,756,158			7,228,881			3,249,303			3,351,218			5,803,755			7,207,008			1,805,113			1,930,592
Purchased		1,831,103			1,395,767			60,752			34,560			156,837			295,366			66,279			19,799			19,389			28,196
Transferred between Sub-Accounts and
Fixed Accumulation Account		372,408			(59,636	)		700,213			352,425			(77,359	)		(115,065	)		(428,005	)		(602,554	)		106,573			95,966
Withdrawn, Surrendered and Annuitized		(424,632	)		(258,258	)		(995,108	)		(859,708	)		(334,648	)		(282,216	)		(824,716	)		(820,498	)		(268,992	)		(249,641	)
End of year		6,902,034			5,123,155			6,522,015			6,756,158			2,994,133			3,249,303			4,617,313			5,803,755			1,662,083			1,805,113

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	SIS						SVS						TE1								TEC						MFJ
	Sub-Account						Sub-Account						Sub-Account								Sub-Account						Sub-Account
		Year Ended			Year Ended			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,			December 31,			December 31,
		2006			2005			2006			2005				2006			2005				2006			2005			2006			2005
Operations:
Net investment income (loss)	$	2,520,993		$	3,482,491		$	(107,139	)	$	(100,156	)		$	(47,938	)	$	(47,195	)	$		(268,139	)	$	(284,573	)	$	5,629,394		$	3,368,619
Net realized gains (losses)		964,898			1,796,424			1,100,321			1,445,326				327,087			60,025				1,238,694			(746,760	)		34,752,066			18,269,552
Net unrealized gains (losses)		(769,246	)		(5,042,200	)		50,313			(1,623,798	)			278,425			103,449				2,358,913			1,615,211			27,167,038			(14,278,009	)
Increase (Decrease) in net assets from
operations	$	2,716,645		$	236,715		$	1,043,495		$	(278,628	)		$	557,574		$	116,279		$		3,329,468		$	583,878		$	67,548,498		$	7,360,162
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	434,650		$	798,330		$	66,148		$	356,224			$	176,922		$	198,085		$		481,499		$	98,390		$	152,043,446		$	231,095,465
Net transfers between Sub-Accounts and
Fixed Account		3,232,949			3,030,381			(1,688,899	)		(444,523	)			(402,364	)		(242,569	)			(863,305	)		(2,142,311	)		(27,841,332	)		3,174,435
Withdrawals, surrenders, annuitizations
and contract charges		(11,701,524	)		(10,732,024	)		(968,571	)		(557,222	)			(561,321	)		(328,049	)			(3,110,610	)		(2,624,210	)		(69,873,385	)		(45,382,250	)
Net accumulation activity	$	(8,033,925	)	$	(6,903,313	)	$	(2,591,322	)	$	(645,521	)		$	(786,763	)	$	(372,533	)	$		(3,492,416	)	$	(4,668,131	)	$	54,328,729		$	188,887,650
Annuitization Activity:
Annuitizations	$	-		$	-		$	-		$	-			$	-		$	-		$		-		$	-		$	36,380		$	72,929
Annuity payments and contract charges		(20,161	)		(20,803	)		-			-				-			-				(6,059	)		(936	)		(70,667	)		(58,225	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(10,187	)		(408	)		-			-				-			-				(1,212	)		(859	)		(4,478	)		(3,410	)
Net annuitization activity	$	(30,348	)	$	(21,211	)	$	-		$	-			$	-		$	-		$		(7,271	)	$	(1,795	)	$	(38,765	)	$	11,294
Increase (Decrease) in net assets from
contract owner transactions	$	(8,064,273	)	$	(6,924,524	)	$	(2,591,322	)	$	(645,521	)		$	(786,763	)	$	(372,533	)	$		(3,499,687	)	$	(4,669,926	)	$	54,289,964		$	188,898,944
Increase (Decrease) in net assets	$	(5,347,628	)	$	(6,687,809	)	$	(1,547,827	)	$	(924,149	)		$	(229,189	)	$	(256,254	)	$		(170,219	)	$	(4,086,048	)	$	121,838,462		$	196,259,106
Net Assets:
Beginning of year	$	58,018,808		$	64,706,617		$	10,531,335		$	11,455,484			$	3,377,159		$	3,633,413		$		18,988,564		$	23,074,612		$	629,492,828		$	433,233,722
End of year	$	52,671,180		$	58,018,808		$	8,983,508		$	10,531,335			$	3,147,970		$	3,377,159		$		18,818,345		$	18,988,564		$	751,331,290		$	629,492,828
Unit Transactions:
Beginning of year		4,397,877			4,922,159			796,494			847,507				419,282			482,254				5,244,561			6,675,608			49,480,358			35,062,662
Purchased		33,040			60,494			4,734			27,522				23,360			15,474				125,184			28,400			11,289,045			18,109,710
Transferred between Sub-Accounts and
Fixed Accumulation Account		231,863			221,650			(113,962	)		(35,443	)			(41,930	)		(34,049	)			(265,303	)		(666,652	)		(2,116,586	)		235,672
Withdrawn, Surrendered and Annuitized		(864,911	)		(806,426	)		(75,914	)		(43,092	)			(67,937	)		(44,397	)			(798,100	)		(792,795	)		(5,403,322	)		(3,927,686	)
End of year		3,797,869			4,397,877			611,352			796,494				332,775			419,282				4,306,342			5,244,561			53,249,495			49,480,358

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	TRS						MFE						UTS							MV1							MVS
	Sub-Account						Sub-Account						Sub-Account							Sub-Account							Sub-Account
		Year Ended			Year Ended			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,				December 31,			December 31,
		2006			2005			2006			2005				2006			2005				2006			2005				2006			2005
Operations:
Net investment income (loss)	$	15,993,894		$	16,568,875		$	481,991		$	(252,739	)		$	4,762,209		$	(1,263,376	)		$	(458,139	)	$	(546,127	)		$	304,133		$	(120,412	)
Net realized gains (losses)		52,756,757			30,124,782			4,442,052			1,721,587				7,054,717			(3,823,076	)			12,410,216			3,591,472				28,870,620			10,526,546
Net unrealized gains (losses)		44,068,445			(26,978,207	)		8,648,245			2,776,709				69,924,730			47,760,165				10,449,720			2,471,924				24,917,750			5,411,309
Increase (Decrease) in net assets from
operations	$	112,819,096		$	19,715,450		$	13,572,288		$	4,245,557			$	81,741,656		$	42,673,713			$	22,401,797		$	5,517,269			$	54,092,503		$	15,817,443
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	9,552,200		$	11,431,545		$	12,387,129		$	4,654,664			$	3,133,153		$	2,792,123			$	10,039,415		$	11,416,522			$	2,450,975		$	2,381,078
Net transfers between Sub-Accounts and
Fixed Account		(20,050,896	)		19,406,341			7,162,826			7,184,490				8,546,449			15,481,759				(3,225,271	)		(841,120	)			3,195,329			10,371,692
Withdrawals, surrenders, annuitizations
and contract charges		(249,489,606	)		(238,910,653	)		(5,788,717	)		(2,704,056	)			(65,146,846	)		(46,907,679	)			(15,420,977	)		(8,878,990	)			(57,143,884	)		(48,991,266	)
Net accumulation activity	$	(259,988,302	)	$	(208,072,767	)	$	13,761,238		$	9,135,098			$	(53,467,244	)	$	(28,633,797	)		$	(8,606,833	)	$	1,696,412			$	(51,497,580	)	$	(36,238,496	)
Annuitization Activity:
Annuitizations	$	465,062		$	992,727		$	-		$	-			$	74,385		$	27,130			$	-		$	-			$	24,107		$	146,311
Annuity payments and contract charges		(1,154,292	)		(1,201,542	)		(4,233	)		(3,722	)			(106,328	)		(164,847	)			(5,446	)		(5,080	)			(110,401	)		(111,430	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(72,650	)		(31,494	)		(853	)		(509	)			(47,887	)		(27,203	)			(860	)		(568	)			(33,540	)		(5,205	)
Net annuitization activity	$	(761,880	)	$	(240,309	)	$	(5,086	)	$	(4,231	)		$	(79,830	)	$	(164,920	)		$	(6,306	)	$	(5,648	)		$	(119,834	)	$	29,676
Increase (Decrease) in net assets from
contract owner transactions	$	(260,750,182	)	$	(208,313,076	)	$	13,756,152		$	9,130,867			$	(53,547,074	)	$	(28,798,717	)		$	(8,613,139	)	$	1,690,764			$	(51,617,414	)	$	(36,208,820	)
Increase (Decrease) in net assets	$	(147,931,086	)	$	(188,597,626	)	$	27,328,440		$	13,376,424			$	28,194,582		$	13,874,996			$	13,788,658		$	7,208,033			$	2,475,089		$	(20,391,377	)
Net Assets:
Beginning of year	$	1,229,097,435		$	1,417,695,061		$	37,623,081		$	24,246,657			$	299,205,027		$	285,330,031			$	124,900,820		$	117,692,787			$	311,868,666		$	332,260,043
End of year	$	1,081,166,349		$	1,229,097,435		$	64,951,521		$	37,623,081			$	327,399,609		$	299,205,027			$	138,689,478		$	124,900,820			$	314,343,755		$	311,868,666
Unit Transactions:
Beginning of year		61,210,836			70,122,337			2,310,367			1,823,681				16,956,503			18,353,815				9,478,274			9,411,407				20,463,991			22,855,509
Purchased		484,665			578,979			525,263			235,372				181,600			154,638				644,227			866,871				147,279			159,647
Transferred between Sub-Accounts and
Fixed Accumulation Account		(1,026,332	)		1,293,273			362,640			443,312				379,399			938,908				(223,330	)		(72,334	)			131,707			693,930
Withdrawn, Surrendered and Annuitized		(11,467,975	)		(10,783,753	)		(317,730	)		(191,998	)			(2,995,314	)		(2,490,858	)			(1,116,533	)		(727,670	)			(3,382,010	)		(3,245,095	)
End of year		49,201,194			61,210,836			2,880,540			2,310,367				14,522,188			16,956,503				8,782,638			9,478,274				17,360,967			20,463,991

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	OCA						OGG						OMG						OMS						PMB
	Sub-Account						Sub-Account						Sub-Account						Sub-Account						Sub-Account
		Year Ended			Year Ended			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,			December 31,			December 31,
		2006			2005			2006			2005			2006			2005			2006			2005			2006			2005
Operations:
Net investment income (loss)	$	(601,495	)	$	(360,974	)	$	(249,841	)	$	(96,295	)	$	(3,509,576	)	$	(1,564,825	)	$	(256,231	)	$	(162,155	)	$	288,485		$	104,439
Net realized gains (losses)		1,241,850			621,806			1,702,598			141,076			2,280,562			997,053			979,682			673,180			192,144			104,174
Net unrealized gains (losses)		1,453,094			737,196			2,032,323			1,149,890			47,044,527			9,951,281			938,903			235,825			132,658			99,202
Increase (Decrease) in net assets from
operations	$	2,093,449		$	998,028		$	3,485,080		$	1,194,671		$	45,815,513		$	9,383,509		$	1,662,354		$	746,850		$	613,287		$	307,815
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	4,994,538		$	3,706,640		$	12,334,808		$	4,185,665		$	164,759,230		$	106,531,165		$	5,955,070		$	1,821,587		$	1,652,427		$	1,721,604
Net transfers between Sub-Accounts and
Fixed Account		1,545,935			469,075			4,135,316			2,233,083			47,420,723			24,493,311			1,418,873			469,482			3,198,658			1,674,201
Withdrawals, surrenders, annuitizations
and contract charges		(2,735,297	)		(2,060,215	)		(1,958,017	)		(327,334	)		(20,128,381	)		(8,390,392	)		(1,052,171	)		(513,553	)		(608,351	)		(145,675	)
Net accumulation activity	$	3,805,176		$	2,115,500		$	14,512,107		$	6,091,414		$	192,051,572		$	122,634,084		$	6,321,772		$	1,777,516		$	4,242,734		$	3,250,130
Annuitization Activity:
Annuitizations	$	-		$	-		$	-		$	-		$	-		$	41,825		$	-		$	-		$	-		$	-
Annuity payments and contract charges		(2,134	)		(2,069	)		-			-			(11,971	)		(8,439	)		-			-			-			-
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(285	)		(275	)		-			-			(1,233	)		(1,189	)		-			-			-			-
Net annuitization activity	$	(2,419	)	$	(2,344	)	$	-		$	-		$	(13,204	)	$	32,197		$	-		$	-		$	-		$	-
Increase (Decrease) in net assets from
contract owner transactions	$	3,802,757		$	2,113,156		$	14,512,107		$	6,091,414		$	192,038,368		$	122,666,281		$	6,321,772		$	1,777,516		$	4,242,734		$	3,250,130
Increase (Decrease) in net assets	$	5,896,206		$	3,111,184		$	17,997,187		$	7,286,085		$	237,853,881		$	132,049,790		$	7,984,126		$	2,524,366		$	4,856,021		$	3,557,945
Net Assets:
Beginning of year	$	33,917,242		$	30,806,058		$	13,587,975		$	6,301,890		$	246,848,978		$	114,799,188		$	10,694,455		$	8,170,089		$	5,141,808		$	1,583,863
End of year	$	39,813,448		$	33,917,242		$	31,585,162		$	13,587,975		$	484,702,859		$	246,848,978		$	18,678,581		$	10,694,455		$	9,997,829		$	5,141,808
Unit Transactions:
Beginning of year		2,328,976			2,178,624			991,457			514,788			17,938,766			8,686,835			595,796			489,698			290,180			96,856
Purchased		338,885			266,327			859,887			334,202			11,442,718			8,106,880			313,174			109,464			92,353			103,068
Transferred between Sub-Accounts and
Fixed Accumulation Account		107,512			35,858			283,600			173,897			3,288,425			1,836,813			71,942			27,867			186,480			99,474
Withdrawn, Surrendered and Annuitized		(184,959	)		(151,833	)		(138,119	)		(31,430	)		(1,471,259	)		(691,762	)		(55,239	)		(31,233	)		(34,774	)		(9,218	)
End of year		2,590,414			2,328,976			1,996,825			991,457			31,198,650			17,938,766			925,673			595,796			534,239			290,180

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	PLD						PRR						PTR								PRA					PCR
	Sub-Account						Sub-Account						Sub-Account								Sub-Account					Sub-Account
		Year Ended			Year Ended			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,			December 31,			December 31,
		2006			2005			2006			2005			2006			2005			2006				2005 (f)			2006			2005 (f)
Operations:
Net investment income (loss)	$	8,427,849		$	1,853,589		$	822,252		$	297,897		$	1,583,070		$	860,696		$	67,626			$	2,858		$	121,321		$	3,906
Net realized gains (losses)		(284,979	)		464,096			907,137			528,393			147,028			1,003,049			2,011				470			1,639			1,675
Net unrealized gains (losses)		(274,547	)		(3,457,393	)		(2,111,776	)		(753,428	)		(454,586	)		(1,606,801	)		(9,319		)		(1,694	)		(260,653	)		(3,466	)
Increase (Decrease) in net assets from
operations	$	7,868,323		$	(1,139,708	)	$	(382,387	)	$	72,862		$	1,275,512		$	256,944		$	60,318			$	1,634		$	(137,693	)	$	2,115
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	159,348,959		$	105,227,960		$	9,218,232		$	9,781,197		$	14,542,415		$	9,869,887		$	646,211			$	183,341		$	2,908,815		$	402,411
Net transfers between Sub-Accounts and
Fixed Account		83,999,042			22,745,263			(542,029	)		2,413,025			3,880,196			2,994,776			1,191,639				6,671			1,765,354			123,940
Withdrawals, surrenders, annuitizations
and contract charges		(22,007,150	)		(11,014,261	)		(3,329,044	)		(2,986,060	)		(6,786,480	)		(5,078,576	)		(68,207		)					(188,855	)		(23,957	)
Net accumulation activity	$	221,340,851		$	116,958,962		$	5,347,159		$	9,208,162		$	11,636,131		$	7,786,087		$	1,769,643			$	190,012		$	4,485,314		$	502,394
Annuitization Activity:
Annuitizations	$	-		$	55,158		$	-		$	-		$	-		$	-		$	-			$	-		$	-		$	-
Annuity payments and contract charges		(25,310	)		(21,651	)		-			-			(4,739	)		(4,855	)		-				-			-			-
Net transfers between Sub-Accounts
Adjustments to annuity reserves		(2,779	)		(3,300	)		-			-			(977	)		(997	)		-				-			-			-
Net annuitization activity	$	(28,089	)	$	30,207		$	-		$	-		$	(5,716	)	$	(5,852	)	$	-			$	-		$	-		$	-
Increase (Decrease) in net assets from
contract owner transactions	$	221,312,762		$	116,989,169		$	5,347,159		$	9,208,162		$	11,630,415		$	7,780,235		$	1,769,643			$	190,012		$	4,485,314		$	502,394
Increase (Decrease) in net assets	$	229,181,085		$	115,849,461		$	4,964,772		$	9,281,024		$	12,905,927		$	8,037,179		$	1,829,961			$	191,646		$	4,347,621		$	504,509
Net Assets:
Beginning of year	$	234,513,041		$	118,663,580		$	32,648,274		$	23,367,250		$	57,410,982		$	49,373,803		$	191,646			$	-		$	504,509		$	-
End of year	$	463,694,126		$	234,513,041		$	37,613,046		$	32,648,274		$	70,316,909		$	57,410,982		$	2,021,607			$	191,646		$	4,852,130		$	504,509
Unit Transactions:
Beginning of year		23,604,352			11,851,375			2,712,386			1,942,972			5,192,072			4,491,441			18,761				-			49,012			-
Purchased		16,020,017			10,785,554			774,935			820,258			1,310,352			901,835			63,448				18,109			287,349			39,388
Transferred between Sub-Accounts and
Fixed Accumulation Account		8,367,707			2,287,480			(44,601	)		203,121			344,535			271,940			117,166				652			176,858			11,915
Withdrawn, Surrendered and Annuitized		(2,310,892	)		(1,320,057	)		(280,261	)		(253,965	)		(614,999	)		(473,144	)		(6,841		)		-			(18,429	)		(2,291	)
End of year		45,681,184			23,604,352			3,162,459			2,712,386			6,231,960			5,192,072			192,534				18,761			494,790			49,012

(f)   For the period October 31, 2005 (commencement of operations) through December 31, 2005.

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	SSA						LGF					IGB								SRE							SC3
	Sub-Account						Sub-Account					Sub-Account								Sub-Account							Sub-Account
		Year Ended			Year Ended			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,			December 31,				December 31,
		2006			2005			2006 (h)			2005		2006			2005			2006				2005			2006				2005
Operations:
Net investment income (loss)	$	(7,360	)	$	(24,395	)	$	(3,024	)	$	-	$	204,136		$	55,369		$	(274,592		)	$	(139,876	)	$	(56,409		)	$	(46,718	)
Net realized gains (losses)		(20,216	)		216,805			2,073			-		23,468			14,905			7,699,237				3,691,782			3,029,457				2,635,319
Net unrealized gains (losses)		590,630			(225,740	)		42,910			-		32,432			(75,195	)		14,763,157				(155,245	)		2,931,840				(1,236,264	)
Increase (Decrease) in net assets from
operations	$	563,054		$	(33,330	)	$	41,959		$	-	$	260,036		$	(4,921	)	$	22,187,802			$	3,396,661		$	5,904,888			$	1,352,337
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	2,123,277		$	843,538		$	441,553		$	-	$	3,043,666		$	1,578,754		$	35,311,370			$	21,656,624		$	155,176			$	474,467
Net transfers between Sub-Accounts and
Fixed Account		1,013,367			(260,265	)		316,296			-		3,025,471			1,794,232			(2,270,740		)		3,596,732			(2,827,427		)		(747,353	)
Withdrawals, surrenders, annuitizations
and contract charges		(138,574	)		(78,188	)		(2,043	)		-		(1,091,612	)		(551,094	)		(3,618,873		)		(1,722,954	)		(1,655,963		)		(1,165,997	)
Net accumulation activity	$	2,998,070		$	505,085		$	755,806		$	-	$	4,977,525		$	2,821,892		$	29,421,757			$	23,530,402		$	(4,328,214		)	$	(1,438,883	)
Annuitization Activity:
Annuitizations	$	-		$	-		$	-		$	-	$	-		$	-		$				$	5,387		$	-			$	-
Annuity payments and contract charges		-			-			-			-		-			-			(1,774		)		(1,152	)		(1,596		)		(1,307	)
Net transfers between Sub-Accounts
Adjustments to annuity reserves		-			-			-			-		-						(156		)		(87	)		(349		)		(188	)
Net annuitization activity	$	-		$	-		$	-		$	-	$	-		$	-		$	(1,930		)	$	4,148		$	(1,945		)	$	(1,495	)
Increase (Decrease) in net assets from
contract owner transactions	$	2,998,070		$	505,085		$	755,806		$	-	$	4,977,525		$	2,821,892		$	29,419,827			$	23,534,550		$	(4,330,159		)	$	(1,440,378	)
Increase (Decrease) in net assets	$	3,561,124		$	471,755		$	797,765		$	-	$	5,237,561		$	2,816,971		$	51,607,629			$	26,931,211		$	1,574,729			$	(88,041	)
Net Assets:
Beginning of year	$	1,582,621		$	1,110,866		$			$	-	$	3,511,097		$	694,126		$	47,926,006			$	20,994,795		$	18,256,525			$	18,344,566
End of year	$	5,143,745		$	1,582,621		$	797,765		$	-	$	8,748,658		$	3,511,097		$	99,533,635			$	47,926,006		$	19,831,254			$	18,256,525
Unit Transactions:
Beginning of year		146,395			99,939			-			-		340,324			67,201			3,596,058				1,693,151			967,700				1,046,871
Purchased		182,759			79,732			46,906			-		294,660			153,503			2,251,172				1,766,093			6,908				27,704
Transferred between Sub-Accounts and
Fixed Accumulation Account		85,488			(24,538	)		34,204			-		290,633			174,566			(126,137		)		284,725			(129,213		)		(40,192	)
Withdrawn, Surrendered and Annuitized		(11,614	)		(8,738	)		(214	)		-		(104,509	)		(54,946	)		(240,706		)		(147,911	)		(75,626		)		(66,683	)
End of year		403,028			146,395			80,896			-		821,108			340,324			5,480,387				3,596,058			769,769				967,700

(g)   For the period May 1, 2006 (commencement of operations) through December 31, 2006.

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Statements of Changes in Net Assets - continued

	CMM						WTF						USC
	Sub-Account						Sub-Account						Sub-Account
		Year Ended			Period Ended			Year Ended			Period Ended				Year Ended			Period Ended
		December 31,			December 31,			December 31,			December 31,				December 31,			December 31,
		2006			2005 (e)			2006			2005 (e)				2006			2005 (e)
Operations:
Net investment income (loss)	$	22,670		$	2,627		$	(9,740	)	$	(2,544	)		$	(304	)	$	(10	)
Net realized gains (losses)								30,106			1,586				392			(8	)
Net unrealized gains (losses)		-			-			108,393			33,477				1,384			19
Increase (Decrease) in net assets from
operations	$	22,670		$	2,627		$	128,759		$	32,519			$	1,472		$	1
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received	$	546,585		$	413,721		$	442,602		$	339,956			$	1,119		$	3,181
Net transfers between Sub-Accounts and
Fixed Account		196,907			87,375			59,142			51,964				20,785			4,553
Withdrawals, surrenders, annuitizations
and contract charges		(26,169	)		(13,581	)		(17,531	)		(5,995	)			-			-
Net accumulation activity	$	717,323		$	487,515		$	484,213		$	385,925			$	21,904		$	7,734
Annuitization Activity:
Annuitizations	$	-		$	-		$	-		$	-			$	-		$	-
Annuity payments and contract charges		-			-			-			-				-			-
Net transfers between Sub-Accounts
Adjustments to annuity reserves		-			-			-			-				-			-
Net annuitization activity	$	-		$	-		$	-		$	-			$	-		$	-
Increase (Decrease) in net assets from
contract owner transactions	$	717,323		$	487,515		$	484,213		$	385,925			$	21,904		$	7,734
Increase (Decrease) in net assets	$	739,993		$	490,142		$	612,972		$	418,444			$	23,376		$	7,735
Net Assets:
Beginning of year	$	490,142		$			$	418,444		$	-			$	7,735		$	-
End of year	$	1,230,135		$	490,142		$	1,031,416		$	418,444			$	31,111		$	7,735
Unit Transactions:
Beginning of year		48,728			-			36,338			-				699			-
Purchased		54,554			41,669			36,808			32,287				104			283
Transferred between Sub-Accounts and
Fixed Accumulation Account		19,313			8,714			4,925			4,752				1,847			416
Withdrawn, Surrendered and Annuitized		(3,351	)		(1,655	)		(1,944	)		(701	)			-			-
End of year		119,244			48,728			76,127			36,338				2,650			699

(e) For the period April 25, 2005 (commencement of operations) through December 31, 2005.

See notes to financial statements

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Regatta Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements

(1) Organization

Sun Life of Canada (U.S.) Variable Account F (the "Variable Account"), a separate account of Sun Life Assurance Company of Canada (U.S.) (the "Sponsor"), was established on July 13, 1989 as a funding vehicle for the variable portion of Regatta contracts, Regatta Gold contracts, Regatta Classic contracts, Regatta Platinum contracts, Regatta Extra contracts, Regatta Access contracts, Regatta Choice contracts, Regatta Flex 4 contracts, Regatta Flex II contracts, Regatta Choice II contracts, Sun Life Financial Masters Extra contracts, Sun Life Financial Masters Choice contracts, Sun Life Financial Masters Access contracts, Sun Life Financial Masters Flex contracts, Sun Life Financial Masters IV contracts and Sun Life Financial Masters VII contracts (collectively, the "Contracts") and certain other fixed and variable annuity contracts issued by the Sponsor. The Variable Account is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 as a unit investment trust and exists in accordance with the regulations of the Delaware Insurance Department.

The assets of the Variable Account are divided into Sub-Accounts. Each Sub-Account is invested in shares of a single corresponding investment portfolio of certain open-end mutual funds registered under the Investment Company Act of 1940, as amended. With respect to the Regatta contracts, Regatta Gold contracts, Regatta Classic contracts, Regatta Platinum contracts, Regatta Extra contracts, Regatta Access contracts, Regatta Choice contracts, Regatta Flex 4 contracts, Regatta Flex II contracts and the Regatta Choice II contracts, the funds include MFS/Sun Life Series Trust (the "Series Trust"). With respect to the Sun Life Financial Masters Extra contracts, Sun Life Financial Masters Choice contracts, Sun Life Financial Masters Access contracts, Sun Life Financial Masters Flex contracts, Sun Life Financial Masters IV contracts and the Sun Life Financial Masters VII contracts, the funds include Columbia Funds Variable Insurance Trust, Fidelity Variable Insurance Products Funds, Franklin Templeton Variable Insurance Products Trust, Lord Abbett Series Fund, Inc., The "Series Trust", Oppenheimer Variable Account Funds, PIMCO Variable Insurance Trust, Sun Capital Advisers Trust and Wanger Advisors Trust (collectively with the Series Trust, the "Funds").

Under applicable insurance law, the assets and liabilities of the Variable Account are clearly identified and distinguished from the Sponsor’s other assets and liabilities. The portion of the Variable Account’s assets applicable to the variable annuity contracts is not chargeable with liabilities arising out of any other business the Sponsor may conduct.

(2) Significant Accounting Policies

General

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.

Investment Valuations

Investments in shares of the Funds are recorded at their net asset value. The Funds value their investment securities at fair value. Transactions are recorded on a trade date basis. Realized gains and losses on sales of shares of the Funds are determined on the identified cost basis. Dividend income and capital gain distributions received by the Sub-Accounts are reinvested in additional Fund shares and are recognized on the ex-dividend date.

Exchanges between Sub-Accounts requested by participants under the Contracts 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 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.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(2) Significant Accounting Policies - continued

Recent Accounting Pronouncements

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48, (FIN 48) "Accounting for Uncertainty in Income Taxes -an interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, Accounting for Income Taxes". This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or exposed to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management of the Sub-Accounts is currently evaluating the impact of applying the various provisions of FIN 48.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, (FAS 157) "Fair Value Measurements". FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. Management of the Sub-Accounts is currently evaluating the impact the adoption of FAS 157 will have on the Sub-Account’s financial statement disclosures.

(3) Contract Charges and Related Party Transactions

Charges for mortality and expense risks, optional death benefit riders, the Lifetime Income Bonus Benefit (available on Sun Life Financial Masters IV contracts and Sun Life Financial Masters VII contracts), and the Secured Returns Optional Living Benefit (available on Sun Life Financial Masters Choice contracts, Sun Life Financial Masters Extra contracts, and Sun Life Financial Masters Flex contracts) are based on the value of the Sub-Account and are deducted from the Variable Account at the end of each valuation period to cover the risks assumed by the Sponsor. The deductions are transferred periodically to the Sponsor. Currently, the deduction is at an effective annual rate as follows:

	Level 1	Level 2	Level 3	Level 4	Level 5	Level 6	Level 7	Level 8	Level 9
Regatta contracts	1.10%
Regatta Gold contracts	1.25%
Regatta Classic contracts	1.00%
Regatta Platinum contracts	1.25%
Regatta Extra contracts	1.30%	1.45%	1.55%	1.70%
Regatta Choice contracts	0.85%	1.00%	1.10%	1.15%	1.25%	1.40%
Regatta Access contracts	1.00%	1.15%	1.25%	1.40%	1.50%	1.65%
Regatta Flex 4 contracts	0.95%	1.10%	1.20%	1.35%	1.45%	1.60%
Regatta Flex II contracts	1.30%	1.50%	1.55%	1.70%	1.75%	1.90%	1.95%	2.15%
Regatta Choice II contracts	1.05%	1.25%	1.30%	1.45%	1.50%	1.65%	1.70%	1.90%
Sun Life Financial Masters Extra contracts	1.40%	1.60%	1.65%	1.80%	1.85%	2.00%	2.05%	2.25%
Sun Life Financial Masters Choice contracts	1.05%	1.25%	1.30%	1.45%	1.50%	1.65%	1.70%	1.90%
Sun Life Financial Masters Access contracts	1.35%	1.55%	1.60%	1.75%	1.80%	1.95%
Sun Life Financial Masters Flex contracts	1.30%	1.50%	1.55%	1.70%	1.75%	1.90%	1.95%	2.15%
Sun Life Financial Masters IV contracts	1.25%	1.30%	1.35%	1.45%	1.50%	1.55%	1.60%	1.65%	1.75%
Sun Life Financial Masters VII contracts	1.00%	1.10%	1.20%	1.25%	1.30%	1.35%	1.40%	1.50%

Each year on the account anniversary, an account administration fee ("Account Fee") equal to $30 in the case of Regatta contracts, the lesser of $30 or 2% of the participant’s account value in the case of Regatta Gold contracts, the lesser of $35 or 2% of the participant’s account value in the case of Regatta Platinum contracts, $35 in the case of Regatta Extra and Regatta Choice contracts, and $50 in the case of Regatta Classic, Regatta Access, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII contracts (after account year 5, the Account Fee, for Regatta Gold, Regatta Platinum, Regatta Extra and Regatta Choice contracts, may be changed annually, but it may not exceed the lesser of $50 or 2% of the participant’s account value) is deducted from the participant’s account to reimburse the Sponsor for certain administrative expenses. After the annuity commencement date, the Account Fee will be deducted pro rata from each variable annuity payment made during the year.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(3) Contract Charges and Related Party Transactions - continued

As reimbursement for administrative expenses attributable to Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII contracts, which exceed the revenues received from the Account Fees described above derived from such contracts, the Sponsor makes a deduction from the Sub-Account at the end of each valuation period at an effective annual rate of 0.15% of the net assets attributable to such contracts.

A specific quarterly charge, equal to 0.125% of Account Value, is deducted on the last day of the Account Quarter if one of the following optional living benefit riders has been elected: Secured Returns 2, Secured Returns for Life, or Secured Returns for Life Plus. ("Account Quarters" are defined as three-month periods, with the first Account Quarter beginning on the Issue Date.) These three optional living benefit riders are available on Sun Life Financial Masters Choice contracts, Sun Life Financial Masters Extra contracts, Sun Life Financial Masters Flex contracts, Sun Life Financial Masters IV contracts, Sun Life Financial Masters VII contracts.

Massachusetts Financial Services Company is the investment adviser to the Series Trust. Sun Capital Advisers, Inc. is the investment adviser to Sun Capital Advisers Trust. Both are affiliates of the Sponsor and charge management fees at an effective annual rate ranging from .60% to 1.56% and 1.00% to 1.35% of the Funds’ net assets, respectively.

The Sponsor does not deduct a sales charge from purchase payments. However, in the case of Regatta Gold, Regatta Platinum and Regatta Flex 4, a surrender charge (contingent deferred sales charge) of up to 6% of certain amounts withdrawn, when applicable, may be deducted to cover certain expenses relating to the sale of the contracts and certificates. In the case of Regatta Choice, a surrender charge of up to 7% and in the case of Regatta, Regatta Extra, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII contracts, a surrender charge of up to 8% of certain amounts withdrawn, when applicable, may be deducted to cover certain expenses relating to the sale of the contracts and certificates. In the case of Regatta Classic contracts, a withdrawal charge of 1% is applied to purchase payments withdrawn which have been credited to a participant’s account for less than one year.

For assuming the risk that surrender charges may be insufficient to compensate it for the costs of distributing the contracts, the Sponsor makes a deduction from the Sub-Account at the end of each valuation period for the first seven account years at an effective annual rate of 0.15% of the net assets attributable to Regatta, Regatta Gold, Regatta Platinum, Sun Life Financial Masters Extra and Sun Life Financial Masters Choice and an effective annual rate of 0.20% of the net assets attributable to Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII contracts.

As reimbursement for administrative expenses attributable to Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII contracts, which exceed the revenues received from the Account Fees described above derived from such contracts, the Sponsor makes a deduction from the Sub-Account at the end of each valuation period at an effective annual rate of 0.15% of the net assets attributable to such contracts.

For the year ended December 31, 2006, the Sponsor received the following amounts related to the above mentioned contract and surrender charges. These charges are reflected in the "Withdrawals, surrenders, annuitizations and contract charges" line of the Statements of Changes in Net Assets.

	Contract Charges	Surrender Charges
Columbia Funds Variable Insurance Trust
Columbia Small Cap Value Fund	$ 7	$
Columbia Marsico 21st Century Portfolio
Columbia Marsico Growth Portfolio	13
Columbia Marsico International Opportunities Portfolio

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(3) Contract Charges and Related Party Transactions - continued

	Contract Charges	Surrender Charges
Fidelity Variable Insurance Products Funds
VIP Freedom 2010 Portfolio	$ 81	$
VIP Freedom 2015 Portfolio	167	18,103
VIP Freedom 2020 Portfolio	206	2,870
Franklin Templeton Variable Insurance Products Trust
Mutual Shares Securities Fund	7,265	42,879
Templeton Developing Markets Securities Fund	426	6,760
Templeton Growth Securities Fund Class 2	2,365	9,761
Templeton Foreign Securities Fund	49,476	340,951
Franklin Small Cap Value Securities Fund	6,573	23,616
Lord Abbett Series Fund, Inc.
All Value Portfolio	2,305	13,208
Growth & Income Portfolio	50,000	134,759
Growth Opportunities Portfolio	31,414	50,352
Mid Cap Value Portfolio	23,000	49,705
MFS/Sun Life Series Trust:
Bond S Class	19,367	121,056
Bond Series	40,943	86,914
Capital Appreciation S Class	9,467	58,253
Capital Appreciation Series	285,450	275,719
Capital Opportunities S Class	5,467	20,435
Capital Opportunities Series	98,073	119,637
Emerging Growth S Class	7,082	23,510
Emerging Growth Series	193,716	64,806
Emerging Markets Equity S Class
Emerging Markets Equity Series	28,548	163,733
Global Governments S Class	1,305	17,971
Global Governments Series	19,450	54,494
Global Growth S Class	2,341	14,372
Global Growth Series	60,289	76,788
Global Total Return S Class	4,366	13,322
Global Total Return Series	53,134	33,774
Government Securities S Class	63,036	363,037
Government Securities Series	119,792	266,651
High Yield S Class	47,299	167,334
High Yield Series	82,292	189,851
International Growth S Class	5,905	24,546
International Growth Series	49,863	79,980
International Investors Trust S Class	2,928	23,995
International Investors Trust Series	36,269	39,212
Massachusetts Investors Growth Stock S Class	21,558	139,169
Massachusetts Investors Growth Stock Series	169,611	251,582
Massachusetts Investors Trust S Class	54,215	252,207
Massachusetts Investors Trust Series	354,446	510,399
Mid Cap Growth S Class	16,207	39,906
Mid Cap Growth Series	25,004	32,302
Mid Cap Value S Class	9,430	59,699
Money Market S Class	42,212	481,308
Money Market Series	109,929	394,401
New Discovery S Class	47,111	147,762
New Discovery Series	55,989	133,793
Research S Class	7,649	57,013
Research Series	179,686	72,356
Research Growth and Income S Class	2,849	11,053
Research Growth and Income Series	28,201	74,978
Research International S Class	31,611	162,889
Research International Series	27,945	84,237

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(3) Contract Charges and Related Party Transactions - continued

	Contract Charges	Surrender Charges
MFS/Sun Life Series Trust - continued
Strategic Growth S Class	12,450	64,758
Strategic Growth Series	15,969	10,290
Strategic Income S Class	5,743	40,054
Strategic Income Series	15,184	54,655
Strategic Value S Class	2,519	10,386
Technology S Class	1,540	3,140
Technology Series	11,212	25,471
Total Return S Class	187,244	1,552,083
Total Return Series	416,881	712,051
Utilities S Class	11,389	88,081
Utilities Series	114,598	260,858
Value S Class	29,824	216,109
Value Series	86,321	282,919
Oppenheimer Variable Account Funds	2,551	32,857
Capital Appreciation Fund	42,971	407,677
Global Securities Fund	3,625	15,882
Main Street Fund
Main St. Small Cap Fund	1,961	16,153
PIMCO Variable Insurance Trust	41,152	449,994
Emerging Markets Bond Portfolio	8,965	70,356
Low Duration Portfolio	13,032	106,064
Real Return Portfolio	155	1,170
Total Return Portfolio	402	915
VIT All Asset Portfolio
VIT Commodity Real Return Strategy Portfolio	857	2,306
Sun Capital Advisers Trust
All Cap S Class	989	2,803
FI Large Cap Growth Fund	32,787	79,612
Investment Grade Bond S Class	7157	28,460
Real Estate Fund S Class	175	131
Real Estate Fund
Sun Capital Money Market S Class	368	509
Wanger Advisors Trust
Wanger Select
Wanger U.S. Smaller Companies

(4) Reserve for Variable Annuities

Reserve for variable annuities represents actuarial present value of future contract benefits for those contract holders who are in the payout phase of their contract and chose the variable payout option. Annuity reserves are calculated using the 1983 Individual Annuitant Mortality Table and an assumed interest rate of at least 3% or 4%, for Regatta, Regatta Gold, Regatta Classic and Regatta Platinum as stated in each participant’s contract or certificate, as applicable if the contract’s annuity commencement date is before January 1, 2000. Annuity reserves are calculated using the 2000 Individual Annuitant Mortality Table and an assumed rate of at least 3% or 4%, for Regatta, Regatta Gold, Regatta Classic and Regatta Platinum as stated in each participant’s contract or certificate, as applicable if the contract’s annuity commencement date is on or after January 1, 2000. Annuity reserves are calculated using the 2000 Annuitant Mortality Table and an assumed rate of 3% for Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Extra, and Sun Life Financial Masters Flex. Due to the demographics of Regatta Flex II, Regatta Choice II, Sun Life Financial Masters IV and Sun Life Financial Masters VII, no reserves were required at December 31, 2006. Required adjustments to the reserves are accomplished by transfers to or from the Sponsor.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(5) Investment Purchases and Sales

The following table shows the aggregate cost of shares purchased and proceeds from the sales of investments of the Funds for each Sub-Account for the year ended December 31, 2006:

	Purchases		Sales
Columbia Funds Variable Insurance Trust
Columbia Small Cap Value Fund	$	10,157	$	145
Columbia Marsico 21st Century Portfolio		72,955		934
Columbia Marsico Growth Portfolio		167,903		2,841
Columbia Marsico International Opportunities Portfolio		137,869		1,602
Fidelity Variable Insurance Products Funds
VIP Freedom 2010 Portfolio		3,232,409		618,698
VIP Freedom 2015 Portfolio		8,366,898		825,479
VIP Freedom 2020 Portfolio		16,080,325		1,786,366
Franklin Templeton Variable Insurance Products Trust
Mutual Shares Securities Fund		30,431,362		5,833,330
Templeton Developing Markets Securities Fund		6,532,505		1,198,869
Templeton Growth Securities Fund Class 2		12,717,615		1,405,926
Templeton Foreign Securities Fund		173,324,845		24,015,763
Franklin Small Cap Value Securities Fund		15,178,632		4,531,114
Lord Abbett Series Fund, Inc.
All Value Portfolio		14,513,095		2,810,776
Growth & Income Portfolio		120,044,240		11,636,752
Growth Opportunities Portfolio		29,302,492		3,182,705
Mid Cap Value Portfolio		40,330,477		5,733,831
MFS/Sun Life Series Trust:
Bond S Class		17,109,821		15,071,332
Bond Series		21,828,479		41,703,830
Capital Appreciation S Class		2,651,974		7,806,479
Capital Appreciation Series		8,274,534		134,140,958
Capital Opportunities S Class		2,012,879		2,815,772
Capital Opportunities Series		3,085,124		51,355,261
Emerging Growth S Class		3,998,640		5,139,288
Emerging Growth Series		5,246,563		78,707,109
Emerging Markets Equity S Class		11,688,693		5,074,248
Emerging Markets Equity Series		31,629,726		32,947,083
Global Governments S Class		1,426,661		2,045,583
Global Governments Series		3,966,980		13,134,933
Global Growth S Class		2,017,787		2,192,427
Global Growth Series		7,238,775		34,644,926
Global Total Return S Class		5,003,627		4,676,780
Global Total Return Series		24,599,857		37,393,887
Government Securities S Class		95,151,198		25,812,059
Government Securities Series		33,684,867		89,104,551
High Yield S Class		46,404,301		28,458,875
High Yield Series		29,130,871		60,574,938
International Growth S Class		5,329,617		5,617,783
International Growth Series		23,312,251		29,593,358
International Investors Trust S Class		6,575,432		4,518,843
International Investors Trust Series		37,019,234		28,436,366
Massachusetts Investors Growth Stock S Class		12,125,445		17,780,034
Massachusetts Investors Growth Stock Series		6,891,431		86,088,078
Massachusetts Investors Trust S Class		105,198,976		23,855,034
Massachusetts Investors Trust Series		12,214,329		202,778,547
Mid Cap Growth S Class		4,185,422		9,979,661
Mid Cap Growth Series		6,664,906		22,830,734
Mid Cap Value S Class		5,964,115		6,698,939
Money Market S Class		117,339,499		80,618,405
Money Market Series		125,356,795		134,621,052
New Discovery S Class		52,651,990		20,811,905
New Discovery Series		8,301,956		36,446,691

*

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(5) Investment Purchases and Sales - continued

	Purchases		Sales
MFS/Sun Life Series Trust - continued
Research S Class	$	4,905,646	$	6,521,658
Research Series		4,976,330		88,948,642
Research Growth and Income S Class		4,304,540		3,036,132
Research Growth and Income Series		10,473,806		19,876,341
Research International S Class		59,115,043		17,664,779
Research International Series		24,322,726		22,078,554
Strategic Growth S Class		5,668,136		9,152,532
Strategic Growth Series		2,697,290		10,728,960
Strategic Income S Class		5,345,193		6,012,665
Strategic Income Series		11,712,401		16,643,650
Strategic Value S Class		1,566,038		3,465,383
Technology S Class		541,901		1,376,602
Technology Series		4,342,126		8,108,739
Total Return S Class		200,752,198		114,801,741
Total Return Series		91,475,986		291,328,123
Utilities S Class		25,715,605		11,476,609
Utilities Series		24,939,202		73,676,181
Value S Class		24,327,009		28,598,585
Value Series		32,712,904		72,403,260
Oppenheimer Variable Account Funds
Capital Appreciation Fund		10,069,008		6,867,462
Global Securities Fund		19,022,530		3,820,553
Main Street Fund		203,043,082		14,513,059
Main St. Small Cap Fund		8,838,406		2,418,676
PIMCO Variable Insurance Trust
Emerging Markets Bond Portfolio		5,942,908		1,279,053
Low Duration Portfolio		240,108,464		10,365,073
Real Return Portfolio		15,876,382		8,744,600
Total Return Portfolio		24,981,415		11,398,491
VIT All Asset Portfolio		2,236,038		393,783
VIT Commodity Real Return Strategy Portfolio		5,362,673		737,602
Sun Capital Advisers Trust
All Cap S Class		3,534,043		529,111
FI Large Cap Growth Fund		800,243		47,461
Investment Grade Bond S Class		6,819,707		1,557,837
Real Estate Fund S Class		46,180,458		13,795,848
Real Estate Fund		2,566,636		6,135,834
Sun Capital Money Market S Class		786,725		46,732
Wanger Advisors Trust
Wanger Select		561,991		70,698
Wanger U.S. Smaller Companies		22,261		287

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights

The summary of unit values, units outstanding for variable annuity contracts, net assets, investment income ratio, expense ratios', excluding expenses of the underlying funds and the total return, for the years ended December 31, are as follows:

		At December 31							For year ended December 31
				Unit Fair Value					Investment		Expense Ratio				Total Return
		Units		lowest to highest				Net Assets	Income Ratio*		lowest to highest**				lowest to highest***
CSC
	December 31, 2006	1,411	$	12.2863	to	12.5560	$	17,650	0.26	%	1.55	to	1.65	%	17.40		to	17.52	%
	December 31, 2005 (e)	583		10.6376	to	10.6460		6,200	-		1.55	to	1.65		6.38		to	6.46
NMT
	December 31, 2006	6,233		13.0685	to	13.3555		83,087	0.12		1.35	to	1.65		17.77		to	18.13
	December 31, 2005 (e)	462		11.2788	to	11.2788		5,204	-		1.65	to	1.65		12.79
NNG
	December 31, 2006	19,841		11.2465	to	11.4935		226,596	-		1.35	to	1.85		4.14		to	4.66
	December 31, 2005 (e)	4,598		10.9467	to	10.9467		50,336	-		1.75	to	1.75		9.47
NMI
	December 31, 2006	11,385		14.2400	to	14.5526		165,345	0.19		1.35	to	1.65		21.19		to	21.56
	December 31, 2005 (e)	1,299		11.9430	to	11.9524		15,506	0.08		1.55	to	1.65		19.43		to	19.52
F10
	December 31, 2006	268,016		10.9973	to	11.1613		2,974,098	3.37		1.35	to	2.25		7.12		to	8.10
	December 31, 2005 (f)	23,605		10.3185	to	10.3185		243,563	0.87		1.35	to	1.35		3.18
F15
	December 31, 2006	715,554		11.2046	to	11.3717		8,088,852	2.49		1.30	to	2.30		8.30		to	9.40
	December 31, 2005 (f)	25,858		10.3850	to	10.3937		268,544	1.11		1.35	to	1.85		3.85		to	3.94
F20
	December 31, 2006	1,308,908		11.3368	to	11.5058		14,984,152	3.47		1.30	to	2.30		9.14		to	10.26
	December 31, 2005 (f)	10,353		10.4250	to	10.4346		107,943	0.83		1.35	to	1.90		4.25		to	4.35
FMS
	December 31, 2006	3,368,514		13.9177	to	17.7303		58,070,328	1.22		1.30	to	2.35		15.61		to	16.85
	December 31, 2005	1,886,907		12.0251	to	15.1818		27,978,414	0.87		1.30	to	2.30		8.02		to	9.12
	December 31, 2004	1,146,446		11.1069	to	13.9198		15,778,515	0.75		1.25	to	2.30		10.03		to	11.15
	December 31, 2003	489,937		12.2638	to	12.5282		6,110,725	0.78		1.35	to	2.30		22.27		to	23.46
	December 31, 2002 (b)	35,337		10.1163	to	10.1476		357,959	-		1.35	to	2.30		1.16		to	1.48
TDM
	December 31, 2006	511,631		13.9683	to	14.1765		7,216,012	1.18		1.30	to	2.30		25.15		to	26.43
	December 31, 2005 (f)	82,552		11.1943	to	11.2121		924,837	-		1.35	to	2.30		11.94		to	12.12
FTG
	December 31, 2006	1,134,629		14.5363	to	20.3990		22,093,074	1.21		1.30	to	2.35		18.95		to	20.23
	December 31, 2005	518,022		12.2061	to	16.9753		8,461,348	0.99		1.30	to	2.30		6.37		to	7.45
	December 31, 2004 (d)	185,270		11.4492	to	15.8060		2,822,852	1.01		1.25	to	2.30		13.35		to	14.58
FTI
	December 31, 2006	23,906,416		14.9290	to	19.5344		449,411,615	1.19		1.30	to	2.55		18.36		to	19.87
	December 31, 2005	15,021,292		12.5557	to	16.3623		236,905,307	1.11		1.30	to	2.55		7.37		to	8.74
	December 31, 2004	8,240,520		11.6449	to	15.1080		120,369,576	1.01		1.25	to	2.55		15.50		to	16.92
	December 31, 2003	1,734,535		12.3883	to	12.9673		21,780,367	0.81		1.35	to	2.55		26.43		to	30.43
	December 31, 2002 (b)	109,241		9.5923	to	9.6281		1,049,989	-		1.35	to	2.30		(4.08	)	to	(3.72	)
FVS
	December 31, 2006	1,597,154		14.4771	to	20.6252		32,015,946	0.63		1.30	to	2.50		14.06		to	15.46
	December 31, 2005	1,065,024		12.6580	to	17.8718		18,622,511	0.75		1.30	to	2.30		6.27		to	7.36
	December 31, 2004	784,791		11.8836	to	16.6555		12,898,583	0.18		1.25	to	2.30		18.84		to	22.07
	December 31, 2003	403,105		13.3363	to	13.6441		5,464,413	0.16		1.35	to	2.30		29.09		to	30.34
	December 31, 2002 (b)	20,281		10.4355	to	10.4678		211,927	-		1.35	to	2.30		4.35		to	4.68
LAV
	December 31, 2006	1,530,051		13.6347	to	14.1549		21,338,547	0.81		1.35	to	2.30		12.01		to	13.10
	December 31, 2005	673,060		12.1780	to	12.5157		8,330,401	0.45		1.35	to	2.30		4.50		to	5.51
	December 31, 2004 (d)	344,432		11.6270	to	11.8619		4,063,023	0.73		1.25	to	2.30		13.04		to	16.27
LA1
	December 31, 2006	17,651,095		13.2854	to	18.1473		306,867,936	1.54		1.30	to	2.55		14.29		to	15.75
	December 31, 2005	11,563,674		11.5708	to	15.6855		174,257,651	1.17		1.30	to	2.55		0.62		to	1.91
	December 31, 2004	8,986,821		11.4511	to	15.3996		133,211,678	1.31		1.25	to	2.55		9.77		to	14.82
	December 31, 2003	2,488,679		11.9130	to	13.8575		33,267,291	1.89		1.35	to	2.55		19.13		to	29.25
	December 31, 2002 (b)	33,508		10.6887	to	10.7219		358,622	4.77		1.35	to	2.30		6.89		to	7.22

(b) For the period August 5, 2002 (commencement of operations) through December 31, 2002.

(d) For the period February 2, 2004 (commencement of operations) through December 31, 2004.

(e) For the period April 25, 2005 (commencement of operations) through December 31, 2005.

(f) For the period October 31, 2005 (commencement of operations) through December 31, 2005.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights - continued

		At December 31							For year ended December 31
				Unit Fair Value					Investment		Expense Ratio					Total Return
		Units		lowest to highest				Net Assets	Income Ratio*		lowest to highest**					lowest to highest***
LA9
	December 31, 2006	4,902,578	$	11.8596	to	13.3200	$	59,707,503	-	%		1.30	to	2.55	%	5.15		to	6.50	%
	December 31, 2005	2,675,259		11.2788	to	12.5076		30,716,359	-			1.30	to	2.55		1.96		to	3.27
	December 31, 2004 (d)	1,203,674		11.0616	to	12.1119		13,428,847	-			1.25	to	2.55		8.39		to	21.12
LA2
	December 31, 2006	4,471,238		13.7695	to	19.0113		81,834,682	0.63			1.30	to	2.55		9.38		to	10.78
	December 31, 2005	2,743,587		12.5489	to	17.1707		45,585,122	0.51			1.30	to	2.55		5.47		to	6.82
	December 31, 2004	2,592,930		11.8315	to	16.0827		40,628,899	0.51			1.25	to	2.55		18.32		to	22.36
	December 31, 2003	437,574		12.4541	to	13.1433		5,685,572	1.01			1.35	to	2.30		20.80		to	23.07
	December 31, 2002 (b)	26,664		10.6397	to	10.6794		284,181	3.92			1.35	to	2.30		6.40		to	6.79
MF7
	December 31, 2006	6,133,332		10.5636	to	12.9429		75,695,316	5.91			1.00	to	2.55		2.20		to	3.82
	December 31, 2005	6,270,011		10.3358	to	12.4661		75,047,190	5.84			1.00	to	2.55		(0.99	)	to	0.58
	December 31, 2004	6,078,648		10.4393	to	12.3943		72,842,791	5.91			1.00	to	2.55		3.20		to	4.85
	December 31, 2003	5,706,413		10.1153	to	11.8211		65,794,236	4.22			1.00	to	2.55		1.15		to	8.34
	December 31, 2002	3,399,082		10.5580	to	10.9115		36,841,435	3.50			1.00	to	2.10		5.58		to	8.81
BDS
	December 31, 2006	8,059,857		13.7634	to	15.1894		119,031,240	6.18			1.15	to	1.85		3.26		to	4.00
	December 31, 2005	9,925,405		13.3159	to	14.6046		141,413,865	6.16			1.15	to	1.85		(0.12	)	to	0.60
	December 31, 2004	11,381,676		13.3189	to	14.5404		161,562,164	6.19			1.15	to	1.85		4.28		to	5.04
	December 31, 2003	14,515,463		12.4728	to	13.8771		196,808,905	5.07			1.15	to	1.85		7.69		to	8.62
	December 31, 2002	16,672,091		11.8359	to	12.8247		209,295,113	3.62			1.00	to	1.85		7.56		to	8.50
MFD
	December 31, 2006	3,012,379		9.0437	to	15.2763		29,113,014	-			1.00	to	2.30		3.62		to	5.00
	December 31, 2005	3,518,217		8.6877	to	14.5788		32,540,878	0.37			1.00	to	2.30		(1.67	)	to	(0.37	)
	December 31, 2004	3,522,979		8.7952	to	14.6624		32,971,898	-			1.00	to	2.10		8.23		to	9.67
	December 31, 2003	3,536,749		8.0892	to	13.3964		30,045,935	-			1.00	to	2.30		25.40		to	27.07
	December 31, 2002	3,163,343		6.4212	to	10.5642		20,470,534	0.15			1.00	to	2.10		(33.81	)	to	5.64
CAS
	December 31, 2006	33,490,792		5.6481	to	28.3245		450,366,226	0.20			1.00	to	1.85		4.41		to	5.31
	December 31, 2005	41,628,520		5.4069	to	26.9998		548,698,901	0.64			1.00	to	1.85		(0.95	)	to	(0.09	)
	December 31, 2004	41,868,827		5.4557	to	27.1281		564,955,111	0.06			1.00	to	1.85		8.96		to	9.91
	December 31, 2003	47,654,629		5.0044	to	24.7780		612,259,795	-			1.00	to	1.85		26.33		to	27.42
	December 31, 2002	53,276,821		3.9494	to	19.5203		560,298,723	0.17			1.00	to	1.85		(80.74	)	to	(33.06	)
CO1
	December 31, 2006	1,377,231		9.9965	to	16.8521		16,161,723	0.25			1.10	to	2.25		11.46		to	12.77
	December 31, 2005	1,483,374		8.9324	to	14.9595		14,992,153	0.69			1.10	to	2.25		(0.96	)	to	0.20
	December 31, 2004	1,675,705		8.9826	to	14.9448		16,686,864	0.29			1.10	to	2.25		9.93		to	16.04
	December 31, 2003	1,740,370		8.1338	to	13.4434		15,053,183	0.14			1.10	to	2.30		25.06		to	26.60
	December 31, 2002	1,659,796		6.4740	to	10.6299		10,868,241	0.06			1.10	to	2.30		(31.83	)	to	6.30
COS
	December 31, 2006	16,499,273		6.5622	to	18.9934		168,139,747	0.52			1.00	to	1.85		12.21		to	13.18
	December 31, 2005	21,130,668		5.8304	to	16.8464		194,106,985	0.95			1.00	to	1.85		(0.24	)	to	0.63
	December 31, 2004	26,220,995		5.8264	to	16.8061		245,462,968	0.49			1.00	to	1.85		10.70		to	11.67
	December 31, 2003	31,162,190		5.2469	to	15.1086		265,953,050	0.36			1.00	to	1.85		25.93		to	27.02
	December 31, 2002	36,579,889		4.1530	to	11.9403		248,530,711	0.09			1.00	to	1.85		(31.68	)	to	(31.09	)
MFF
	December 31, 2006	1,615,364		10.0706	to	17.3526		18,737,905	-			1.00	to	2.30		5.23		to	6.62
	December 31, 2005	1,747,003		9.5267	to	16.3077		18,519,452	-			1.00	to	2.30		6.40		to	7.81
	December 31, 2004	1,863,783		8.9127	to	15.1566		18,305,802	-			1.00	to	2.25		10.36		to	11.83
	December 31, 2003	1,705,653		8.0389	to	13.5806		14,517,814	-			1.15	to	2.25		28.12		to	29.83
	December 31, 2002	1,550,123		6.2456	to	10.4817		9,746,182	-			1.15	to	1.90		(35.57	)	to	4.82
EGS
	December 31, 2006	24,616,070		5.2490	to	22.1693		263,364,457	-			1.00	to	1.85		6.03		to	6.94
	December 31, 2005	30,633,904		4.9480	to	20.8097		315,569,435	-			1.00	to	1.85		7.12		to	8.05
	December 31, 2004	37,868,174		4.6166	to	19.3335		375,214,309	-			1.00	to	1.85		11.14		to	12.11
	December 31, 2003	44,118,674		4.1517	to	17.3124		407,376,323	-			1.00	to	1.85		29.06		to	30.18
	December 31, 2002	50,696,788		3.2151	to	13.3500		370,438,018	-			1.00	to	1.85		(35.40	)	to	(34.83	)

(b) For the period August 5, 2002 (commencement of operations) through December 31, 2002.

(d) For the period February 2, 2004 (commencement of operations) through December 31, 2004.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights - continued

		At December 31					For year ended December 31
			Unit Fair Value				Investment			Expense Ratio				Total Return
		Units	lowest to highest			Net Assets	Income Ratio*			lowest to highest**				lowest to highest***
EM1
	December 31, 2006	813,675	$ 14.2242	to	33.1470	$ 18,546,786		0.90	%	1.15	to	2.50	%	26.66		to	28.41	%
	December 31, 2005	441,657	11.2417	to	25.8270	10,352,754		0.51		1.15	to	2.25		12.42		to	34.88
	December 31, 2004	340,870	15.4356	to	19.1577	6,301,071		0.84		1.15	to	1.85		24.28		to	25.42
	December 31, 2003	336,533	12.4202	to	15.2823	4,983,507		0.39		1.15	to	2.05		49.01		to	50.38
	December 31, 2002	204,949	9.8964	to	10.1593	2,036,932		1.18		1.15	to	1.85		(3.93	)	to	1.59
EME
	December 31, 2006	3,300,914	24.4161	to	29.5347	87,687,610		1.12		1.00	to	1.85		27.76		to	28.87
	December 31, 2005	3,923,235	19.1105	to	22.6447	81,260,933		0.68		1.00	to	1.85		34.24		to	35.40
	December 31, 2004	3,707,620	14.2359	to	16.7834	57,029,517		1.02		1.00	to	1.85		24.82		to	25.91
	December 31, 2003	3,765,936	11.4049	to	13.3776	46,170,963		0.59		1.00	to	1.85		49.78		to	51.08
	December 31, 2002	3,685,145	7.6143	to	8.8861	30,076,632		1.24		1.00	to	1.85		(3.75	)	to	(2.92	)
GG1
	December 31, 2006	283,792	10.4123	to	14.0408	3,762,442		-		1.15	to	1.85		2.77		to	3.50
	December 31, 2005	327,850	11.8827	to	13.6067	4,232,469		10.41		1.15	to	1.85		(9.20	)	to	(8.56	)
	December 31, 2004	340,389	13.0273	to	14.9250	4,820,154		12.26		1.15	to	1.85		7.76		to	8.53
	December 31, 2003	408,658	12.0336	to	13.7443	5,349,433		5.62		1.15	to	1.85		13.17		to	13.98
	December 31, 2002	344,004	10.5848	to	11.5577	3,969,895		-		1.15	to	2.05		5.85		to	18.91
GGS
	December 31, 2006	2,234,976	13.4688	to	19.1593	36,201,209		-		1.00	to	1.85		3.03		to	3.92
	December 31, 2005	2,809,654	13.0728	to	18.5077	43,876,264		10.70		1.00	to	1.85		(8.92	)	to	(8.13	)
	December 31, 2004	3,280,149	14.3527	to	20.2232	56,460,907		12.59		1.00	to	1.85		8.02		to	8.96
	December 31, 2003	3,854,620	12.3771	to	18.6329	61,738,804		5.37		1.00	to	1.85		13.46		to	14.44
	December 31, 2002	4,610,834	11.7112	to	16.3444	64,709,568		-		1.00	to	1.85		18.39		to	19.25
GG2
	December 31, 2006	548,900	14.1520	to	19.6328	8,624,775		0.33		1.00	to	2.10		14.55		to	15.84
	December 31, 2005	552,979	12.3227	to	16.9829	7,538,233		0.23		1.00	to	2.10		7.44		to	8.64
	December 31, 2004	614,351	11.4406	to	15.6639	7,740,130		0.31		1.00	to	2.10		12.75		to	14.25
	December 31, 2003	615,859	10.1003	to	13.7376	6,778,114		0.26		1.00	to	2.30		32.02		to	33.78
	December 31, 2002	468,329	7.6154	to	10.2750	3,713,489		0.25		1.00	to	1.85		(21.15	)	to	2.75
GGR
	December 31, 2006	7,063,308	9.8502	to	30.0902	140,323,466		0.56		1.00	to	1.85		15.21		to	16.20
	December 31, 2005	8,221,692	8.5455	to	25.9940	145,928,483		0.47		1.00	to	1.85		8.00		to	8.94
	December 31, 2004	9,885,010	7.9081	to	23.9533	165,248,378		0.48		1.00	to	1.85		13.47		to	14.45
	December 31, 2003	11,683,281	6.9659	to	21.0097	175,751,261		0.49		1.15	to	1.85		32.94		to	34.09
	December 31, 2002	13,695,036	5.2372	to	15.7288	157,722,758		0.28		1.15	to	1.85		(20.86	)	to	(20.29	)
GT2
	December 31, 2006	1,149,650	14.9739	to	17.2425	18,291,763		0.66		1.15	to	2.05		14.52		to	15.57
	December 31, 2005	1,195,804	13.4408	to	14.9273	16,498,684		3.81		1.00	to	2.05		1.42		to	2.51
	December 31, 2004	1,049,400	13.2252	to	14.5915	14,165,553		2.33		1.15	to	2.05		14.47		to	15.53
	December 31, 2003	965,835	11.5294	to	12.6366	11,304,042		2.14		1.15	to	2.05		20.02		to	21.13
	December 31, 2002	575,530	9.5864	to	9.6983	5,544,326		1.70		1.00	to	1.85		(1.45	)	to	(0.60	)
GTR
	December 31, 2006	7,258,332	14.7633	to	28.1974	156,233,915		0.92		1.15	to	1.85		15.11		to	15.95
	December 31, 2005	8,201,461	12.8186	to	24.3793	156,049,255		4.27		1.15	to	1.85		1.85		to	2.59
	December 31, 2004	8,363,603	12.5796	to	23.8232	160,297,490		2.50		1.15	to	1.85		14.94		to	15.78
	December 31, 2003	8,836,494	10.9384	to	20.6270	151,229,262		2.10		1.15	to	1.85		20.70		to	21.58
	December 31, 2002	5,490,465	9.0578	to	17.0082	76,987,347		1.91		1.15	to	1.85		(1.26	)	to	(0.54	)
MFK
	December 31, 2006	25,308,705	9.9499	to	11.7457	272,332,913		4.56		1.00	to	2.55		0.84		to	2.44
	December 31, 2005	19,255,861	9.8669	to	11.4658	205,291,955		4.32		1.00	to	2.55		(0.59	)	to	0.99
	December 31, 2004	15,785,190	9.9252	to	11.3535	169,069,438		5.19		1.00	to	2.55		0.86		to	2.51
	December 31, 2003	12,383,782	9.8364	to	11.0490	131,892,096		3.98		1.10	to	2.55		(1.64	)	to	0.85
	December 31, 2002	8,558,119	10.2092	to	10.9594	93,288,471		3.90		1.00	to	2.30		2.09		to	8.34
GSS
	December 31, 2006	18,582,159	12.3657	to	19.7009	283,320,766		5.07		1.00	to	1.85		1.77		to	2.65
	December 31, 2005	22,849,712	12.1380	to	19.2660	344,042,581		4.75		1.00	to	1.85		0.42		to	1.28
	December 31, 2004	26,991,543	12.0756	to	19.0953	406,733,201		5.63		1.00	to	1.85		1.84		to	2.72
	December 31, 2003	35,262,145	11.8457	to	18.6615	521,823,973		4.70		1.00	to	1.85		0.26		to	1.13
	December 31, 2002	50,577,174	11.8031	to	18.5247	743,720,269		4.46		1.00	to	1.85		7.77		to	8.71

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights - continued

		At December 31							For year ended December 31
				Unit Fair Value					Investment		Expense Ratio				Total Return
		Units		lowest to highest				Net Assets	Income Ratio*		lowest to highest**				lowest to highest***
MFC
	December 31, 2006	8,020,269	$	11.4368	to	14.9231	$	114,743,896	8.08	%	1.00	to	2.55	%	7.25		to	8.95	%
	December 31, 2005	7,227,900		10.6154	to	13.7254		95,167,528	7.45		1.00	to	2.55		(0.66	)	to	0.92
	December 31, 2004	7,034,638		10.6489	to	13.6280		92,066,666	6.45		1.00	to	2.55		6.49		to	8.27
	December 31, 2003	6,699,213		10.8910	to	12.6501		81,254,026	8.01		1.10	to	2.55		8.91		to	20.00
	December 31, 2002	3,266,770		9.9081	to	10.6087		32,604,716	9.43		1.00	to	2.25		0.07		to	6.09
HYS
	December 31, 2006	11,347,579		12.8873	to	25.1862		186,188,557	8.37		1.00	to	1.85		8.36		to	9.29
	December 31, 2005	14,094,783		11.8935	to	23.1337		214,798,743	8.45		1.00	to	1.85		0.31		to	1.17
	December 31, 2004	17,473,238		11.8536	to	22.9531		267,795,978	7.78		1.00	to	1.85		7.51		to	8.45
	December 31, 2003	21,115,563		11.0197	to	21.2473		302,952,628	8.99		1.00	to	1.85		19.20		to	20.23
	December 31, 2002	20,985,015		9.2403	to	17.7408		257,293,833	10.19		1.00	to	1.85		0.80		to	1.67
IG1
	December 31, 2006	1,126,228		17.9775	to	23.0061		20,902,161	0.45		1.00	to	2.05		23.18		to	24.50
	December 31, 2005	1,221,898		14.5644	to	18.5160		18,247,713	0.70		1.00	to	2.05		12.28		to	13.48
	December 31, 2004	1,328,474		12.9450	to	16.3494		17,567,913	0.38		1.00	to	2.05		16.14		to	17.39
	December 31, 2003	1,333,889		11.1229	to	13.9554		15,049,223	0.54		1.15	to	2.05		35.52		to	36.97
	December 31, 2002	1,265,240		8.1908	to	10.2091		10,427,953	0.64		1.15	to	1.85		(14.25	)	to	2.09
IGS
	December 31, 2006	7,850,731		14.4597	to	19.7805		131,169,208	0.68		1.00	to	1.85		23.72		to	24.78
	December 31, 2005	8,840,529		11.6819	to	15.8737		119,334,575	0.93		1.00	to	1.85		12.79		to	13.76
	December 31, 2004	9,969,224		10.3519	to	13.9724		119,165,042	0.56		1.00	to	1.85		16.73		to	17.75
	December 31, 2003	10,442,087		8.8633	to	11.8829		106,629,189	0.75		1.00	to	1.85		36.10		to	37.28
	December 31, 2002	11,708,342		6.5089	to	8.6679		87,260,895	0.56		1.00	to	1.85		(13.52	)	to	(12.77	)
MI1
	December 31, 2006	703,270		20.2099	to	24.7123		14,701,003	1.07		1.15	to	2.05		26.32		to	27.47
	December 31, 2005	661,889		15.9668	to	19.3959		10,873,687	0.88		1.15	to	1.85		12.81		to	13.62
	December 31, 2004	464,476		14.1533	to	17.0802		6,685,849	0.67		1.15	to	1.85		25.37		to	26.27
	December 31, 2003	399,293		11.2880	to	13.5336		4,572,074	0.68		1.15	to	1.85		30.74		to	31.67
	December 31, 2002	253,434		8.6349	to	10.2839		2,198,379	0.97		1.15	to	1.85		(7.70	)	to	2.84
MII
	December 31, 2006	5,838,111		17.5246	to	27.5761		129,700,838	1.24		1.00	to	1.85		26.84		to	27.94
	December 31, 2005	5,984,457		13.8089	to	21.6372		105,062,829	1.11		1.00	to	1.85		13.09		to	14.07
	December 31, 2004	5,206,659		12.2041	to	19.0416		82,150,477	0.73		1.00	to	1.85		25.65		to	26.74
	December 31, 2003	4,579,850		9.7077	to	15.0821		58,724,401	1.02		1.15	to	1.85		31.16		to	32.29
	December 31, 2002	4,845,066		7.3979	to	11.4447		48,423,016	0.81		1.15	to	1.85		(7.68	)	to	(7.01	)
M1B
	December 31, 2006	6,763,495		9.6001	to	14.6951		78,640,745			1.00	to	2.55		4.68		to	6.34
	December 31, 2005	7,285,892		9.1054	to	13.8464		78,659,290	0.28		1.00	to	2.55		1.51		to	3.12
	December 31, 2004	7,277,585		8.9065	to	13.4550		75,706,711			1.00	to	2.55		6.56		to	8.26
	December 31, 2003	6,650,621		8.2983	to	12.4536		61,950,966			1.00	to	2.55		10.66		to	21.62
	December 31, 2002	4,230,272		6.8823	to	10.2607		29,392,471	0.12		1.00	to	2.10		(29.45	)	to	2.61
MIS
	December 31, 2006	35,387,641		6.3943	to	11.4456		309,578,994	0.10		1.00	to	1.85		5.68		to	6.59
	December 31, 2005	43,809,878		6.0476	to	10.7527		365,666,252	0.52		1.00	to	1.85		2.45		to	3.33
	December 31, 2004	52,900,145		5.9002	to	10.4204		431,900,622	0.07		1.00	to	1.85		7.58		to	8.51
	December 31, 2003	61,247,213		5.4818	to	9.6165		464,658,182			1.00	to	1.85		21.11		to	22.15
	December 31, 2002	65,830,913		4.5242	to	7.8833		411,220,281	0.15		1.00	to	1.85		(29.39	)	to	(28.78	)
MFL
	December 31, 2006	19,922,745		11.4804	to	16.5607		295,643,335	0.60		1.00	to	2.55		10.17		to	11.91
	December 31, 2005	14,452,676		10.3470	to	14.8278		185,054,959	0.84		1.00	to	2.55		4.69		to	6.35
	December 31, 2004	7,171,814		9.8134	to	13.9709		75,087,391	0.83		1.00	to	2.25		9.16		to	14.32
	December 31, 2003	7,446,726		8.9484	to	12.6554		69,845,786	0.92		1.00	to	2.30		19.64		to	21.23
	December 31, 2002	6,235,850		7.4454	to	10.4607		46,842,065	0.95		1.00	to	2.10		(22.85	)	to	4.61

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights - continued

		At December 31									For year ended December 31
				Unit Fair Value					Investment		Expense Ratio				Total Return
		Units		lowest to highest				Net Assets	Income Ratio*		lowest to highest**				lowest to highest***
MIT
	December 31, 2006	47,922,260	$	9.5591	to	33.9245	$	759,598,902	0.82	%	1.00	to	1.85	%	11.21		to	12.17
	December 31, 2005	59,467,044		8.5910	to	30.3594		858,600,168	0.97		1.00	to	1.85		5.72		to	6.63
	December 31, 2004	71,195,865		8.1222	to	28.5811		993,646,065	1.03		1.00	to	1.85		9.91		to	10.86
	December 31, 2003	82,105,319		7.3861	to	25.8800		1,068,836,521	1.14		1.00	to	1.85		20.56		to	21.61
	December 31, 2002	93,484,847		6.1232	to	21.3640		1,027,852,421	1.03		1.00	to	1.85		(22.69	)	to	(22.01	)
MC1
	December 31, 2006	3,386,735		7.6371	to	16.7744		35,351,366	-		1.00	to	2.55		(0.40	)	to	1.18
	December 31, 2005	3,978,465		7.6135	to	16.6129		40,389,836	-		1.00	to	2.55		0.16		to	1.75
	December 31, 2004	4,467,480		7.5470	to	16.3597		44,072,943	-		1.00	to	2.55		11.36		to	13.14
	December 31, 2003	4,289,811		6.7284	to	14.4891		36,228,952	-		1.00	to	2.55		21.51		to	35.96
	December 31, 2002	2,772,461		4.9917	to	10.6720		14,018,481	-		1.00	to	2.25		(48.15	)	to	6.72
MCS
	December 31, 2006	9,323,613		5.4047	to	5.8972		53,469,128	-		1.15	to	1.85		0.45		to	1.18
	December 31, 2005	12,048,420		5.3749	to	5.7777		68,651,430	-		1.15	to	1.85		1.20		to	1.93
	December 31, 2004	14,935,080		5.3057	to	5.6681		83,825,087	-		1.15	to	1.85		12.50		to	13.32
	December 31, 2003	15,334,959		4.7114	to	5.0019		76,141,789	-		1.15	to	1.85		35.33		to	36.31
	December 31, 2002	10,939,748		3.4780	to	3.6695		39,906,465	-		1.15	to	1.85		(48.14	)	to	(47.76	)
MCV
	December 31, 2006	1,467,221		13.7842	to	18.9695		24,368,309	-		1.15	to	2.55		8.19		to	9.74
	December 31, 2005	1,682,084		12.6762	to	17.2950		25,549,351	-		1.15	to	2.55		4.67		to	6.17
	December 31, 2004	1,649,863		12.0488	to	16.2981		23,975,740	-		1.15	to	2.55		18.64		to	20.35
	December 31, 2003	1,271,769		10.1039	to	13.5495		15,678,656	0.03		1.15	to	2.55		22.81		to	30.39
	December 31, 2002 (c)	86,168		7.8310	to	10.3969		703,547	-		1.15	to	2.05		(21.69	)	to	3.97
MM1
	December 31, 2006	15,330,003		9.7773	to	10.4095		153,918,543	4.28		1.00	to	2.55		1.68		to	3.29
	December 31, 2005	11,958,338		9.5912	to	10.1022		117,199,576	2.49		1.00	to	2.55		(0.14	)	to	1.44
	December 31, 2004	8,633,307		9.5804	to	9.9889		84,038,433	0.64		1.00	to	2.55		(2.00	)	to	(0.11	)
	December 31, 2003	4,896,722		9.7496	to	9.9778		48,317,367	0.38		1.00	to	2.55		(1.93	)	to	(0.63	)
	December 31, 2002	5,279,063		9.9247	to	10.0406		52,748,947	1.00		1.00	to	2.10		(0.85	)	to	0.01
MMS
	December 31, 2006	14,751,948		10.3731	to	13.9040		182,628,575	4.56		1.00	to	1.85		2.66		to	3.55
	December 31, 2005	15,938,732		10.1733	to	13.4788		191,927,367	2.67		1.00	to	1.85		0.82		to	1.70
	December 31, 2004	19,134,186		10.0645	to	13.3052		228,260,816	0.80		1.00	to	1.85		(1.04	)	to	(0.19	)
	December 31, 2003	27,710,277		10.1449	to	13.3815		333,687,915	0.64		1.00	to	1.85		(1.23	)	to	(0.38	)
	December 31, 2002	47,957,226		10.2453	to	13.4839		581,571,010	1.26		1.00	to	1.85		(55.73	)	to	0.26
M1A
	December 31, 2006	8,544,360		10.5494	to	16.8413		128,060,378	-		1.00	to	2.55		10.02		to	11.77
	December 31, 2005	6,422,025		9.5394	to	15.0983		82,239,579	-		1.00	to	2.55		2.29		to	3.91
	December 31, 2004	4,707,914		9.2786	to	14.5596		54,151,676	-		1.00	to	2.55		4.47		to	26.21
	December 31, 2003	3,069,941		8.8358	to	13.7450		28,856,139	-		1.00	to	2.30		22.94		to	33.66
	December 31, 2002	2,530,871		6.6917	to	10.2978		17,111,473	-		1.00	to	2.05		(34.89	)	to	2.98
NWD
	December 31, 2006	10,624,368		8.5367	to	16.9125		125,408,472	-		1.00	to	1.85		11.08		to	12.04
	December 31, 2005	12,797,342		7.6617	to	15.1157		137,501,927	-		1.00	to	1.85		3.27		to	4.16
	December 31, 2004	15,598,558		7.3969	to	14.5325		164,314,000	-		1.00	to	1.85		5.49		to	6.41
	December 31, 2003	17,567,342		6.9904	to	13.6762		176,434,664	-		1.00	to	1.85		32.79		to	33.94
	December 31, 2002	18,934,627		5.2482	to	10.2251		142,395,159	-		1.00	to	1.85		(34.69	)	to	(34.13	)
RE1
	December 31, 2006	2,112,711		11.2383	to	17.0586		28,453,629	0.42		1.10	to	2.30		7.79		to	9.11
	December 31, 2005	2,260,668		10.3786	to	15.6503		27,431,958	0.37		1.10	to	2.25		5.29		to	6.53
	December 31, 2004	2,212,955		9.8168	to	14.7062		24,899,828	0.76		1.10	to	2.10		13.05		to	17.40
	December 31, 2003	1,658,552		8.6571	to	12.8834		15,941,604	0.54		1.10	to	2.15		15.22		to	23.64
	December 31, 2002	998,378		7.0555	to	10.4308		7,124,245	0.39		1.10	to	2.05		(26.73	)	to	4.31

(c) For the period May 01, 2002 (commencement of operations) through December 31, 2002.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights - continued

		At December 31							For year ended December 31
			Unit Fair Value						Income		Expense Ratio				Total Return
		Units	lowest to highest					Net Assets	Investment Ratio*		lowest to highest**				lowest to highest***
RES
	December 31, 2006	18,185,522	$	7.7933	to	25.7598	$	297,727,331	0.66	%	1.15	to	1.85	%	8.52		to	9.30	%
	December 31, 2005	23,187,138		7.1781	to	23.6255		352,950,696	0.58		1.15	to	1.85		6.02		to	6.78
	December 31, 2004	28,414,936		6.7673	to	22.1793		416,020,180	0.93		1.15	to	1.85		13.68		to	14.51
	December 31, 2003	34,114,618		5.9499	to	19.4171		449,074,479	0.86		1.15	to	1.85		23.00		to	23.89
	December 31, 2002	40,346,263		4.8348	to	15.7110		442,075,147	0.42		1.00	to	1.85		(26.53	)	to	(25.99	)
RG1
	December 31, 2006	979,416		12.3578	to	17.4884		12,643,624	0.41		1.00	to	2.05		11.12		to	12.31
	December 31, 2005	870,283		11.1213	to	15.6035		9,951,870	0.44		1.10	to	2.05		4.21		to	5.22
	December 31, 2004	905,199		10.6715	to	14.8441		9,872,571	0.47		1.10	to	2.05		11.94		to	13.03
	December 31, 2003	919,450		9.5333	to	13.1465		8,883,437	0.59		1.10	to	2.05		24.88		to	26.09
	December 31, 2002	836,210		7.6204	to	10.4365		6,404,569	0.67		1.10	to	1.85		(23.54	)	to	4.37
RGS
	December 31, 2006	6,003,584		10.8138	to	16.4253		77,970,401	0.60		1.00	to	1.85		11.64		to	12.60
	December 31, 2005	6,688,530		9.7530	to	14.6071		78,190,704	0.69		1.00	to	1.85		4.59		to	5.49
	December 31, 2004	7,171,116		9.2426	to	13.8656		80,437,148	0.67		1.00	to	1.85		12.50		to	13.48
	December 31, 2003	7,761,504		8.2069	to	12.2587		77,446,938	0.77		1.15	to	1.85		25.50		to	26.59
	December 31, 2002	7,794,225		6.5327	to	9.7214		61,785,510	0.71		1.15	to	1.85		(22.86	)	to	(22.30	)
RI1
	December 31, 2006	6,902,034		16.7358	to	23.0340		148,626,673	0.93		1.00	to	2.55		24.02		to	25.98
	December 31, 2005	5,123,155		13.4517	to	18.3201		87,231,876	0.59		1.15	to	2.55		13.24		to	14.86
	December 31, 2004	4,045,282		11.8126	to	15.9581		59,726,643	0.38		1.15	to	2.55		17.87		to	19.57
	December 31, 2003	2,221,110		10.6762	to	13.3535		27,027,191	0.26		1.15	to	2.55		25.72		to	31.87
	December 31, 2002	688,316		8.1535	to	10.1312		5,755,219	0.28		1.15	to	2.10		(13.67	)	to	1.31
RIS
	December 31, 2006	6,522,015		14.1980	to	25.1497		111,472,872	1.14		1.15	to	1.85		25.12		to	26.03
	December 31, 2005	6,756,158		11.3347	to	19.9559		91,829,693	0.79		1.15	to	1.85		14.41		to	15.24
	December 31, 2004	7,228,881		9.8769	to	17.3169		85,264,194	0.48		1.15	to	1.85		18.95		to	19.82
	December 31, 2003	7,413,002		8.2779	to	14.4526		73,292,770	0.61		1.15	to	1.85		31.38		to	32.34
	December 31, 2002	8,305,636		6.2814	to	10.9211		61,819,925	0.26		1.15	to	1.85		(13.12	)	to	(12.49	)
SG1
	December 31, 2006	2,994,133		9.0166	to	15.4698		38,158,701	-		1.15	to	2.55		3.67		to	5.15
	December 31, 2005	3,249,303		8.6358	to	14.7193		39,158,679	0.12		1.15	to	2.55		(1.40	)	to	0.01
	December 31, 2004	3,351,218		8.6962	to	14.7251		40,429,490	-		1.00	to	2.55		3.86		to	5.51
	December 31, 2003	2,600,189		8.3133	to	13.9839		29,290,904	-		1.00	to	2.55		13.46		to	25.78
	December 31, 2002	729,461		6.6667	to	11.1313		4,997,289	-		1.00	to	2.05		(31.44	)	to	11.31
SGS
	December 31, 2006	4,617,313		5.8000	to	7.7263		30,067,773	-		1.00	to	1.85		4.61		to	5.52
	December 31, 2005	5,803,755		5.5414	to	7.3504		36,169,909	0.34		1.00	to	1.85		(0.47	)	to	0.39
	December 31, 2004	7,207,008		5.5648	to	7.3502		45,009,582	-		1.00	to	1.85		4.84		to	5.75
	December 31, 2003	7,977,749		5.3050	to	6.9772		47,472,900	-		1.00	to	1.85		25.18		to	26.25
	December 31, 2002	8,056,046		4.2359	to	5.5475		38,193,061	-		1.00	to	1.85		(31.40	)	to	(30.80	)
SI1
	December 31, 2006	1,662,083		11.2160	to	13.5062		21,695,648	5.71		1.15	to	2.30		4.01		to	5.23
	December 31, 2005	1,805,113		11.9667	to	12.7313		22,487,758	6.66		1.15	to	2.30		(0.72	)	to	0.44
	December 31, 2004	1,930,592		12.0538	to	12.6752		24,035,088	5.67		1.15	to	2.25		5.34		to	6.59
	December 31, 2003	1,775,616		11.4507	to	11.8921		20,856,822	4.05		1.15	to	2.25		9.89		to	11.18
	December 31, 2002	1,211,192		10.4234	to	10.6959		12,904,706	3.83		1.00	to	2.30		4.23		to	6.23
SIS
	December 31, 2006	3,797,869		13.2544	to	14.2929		52,671,180	6.07		1.15	to	1.85		4.74		to	5.50
	December 31, 2005	4,397,877		12.6479	to	13.5477		58,018,808	7.12		1.15	to	1.85		0.01		to	0.73
	December 31, 2004	4,922,159		12.6404	to	13.4491		64,706,617	4.80		1.15	to	1.85		6.04		to	6.81
	December 31, 2003	5,366,035		11.9144	to	12.5915		66,281,500	4.48		1.15	to	1.85		10.80		to	11.60
	December 31, 2002	5,060,468		10.7476	to	11.2823		56,213,140	4.38		1.00	to	1.85		5.50		to	6.26
SVS
	December 31, 2006	611,352		12.1335	to	17.5537		8,983,508	0.55		1.15	to	2.35		11.25		to	12.62
	December 31, 2005	796,494		10.8728	to	15.5949		10,531,335	0.75		1.15	to	2.30		(3.00	)	to	(1.86	)
	December 31, 2004	847,507		11.1803	to	15.8984		11,455,484	0.23		1.15	to	2.25		15.05		to	16.41
	December 31, 2003	696,940		9.6926	to	13.6640		8,170,754	0.09		1.15	to	2.30		24.10		to	25.56
	December 31, 2002 (c)	131,129		7.8014	to	10.8817		1,072,102	-		1.15	to	2.10		(21.99	)	to	8.82

(c) For the period May 01, 2002 (commencement of operations) through December 31, 2002.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights - continued

		At December 31							For year ended December 31
									Investment
				Unit Fair Value					Income		Expense Ratio				Total Return
		Units		lowest to highest				Net Assets	Ratio*		lowest to highest**				lowest to highest***
TE1
	December 31, 2006	332,775	$	9.0680	to	19.8947	$	3,147,970	-	%	1.15	to	1.85	%	19.35		to	20.20	%
	December 31, 2005	419,282		7.5980	to	16.5602		3,377,159	-		1.15	to	1.85		4.07		to	4.81
	December 31, 2004	482,254		7.3009	to	15.8084		3,633,413	-		1.15	to	1.85		(0.13	)	to	0.79
	December 31, 2003	547,602		7.2956	to	15.6925		4,095,386	-		1.15	to	2.05		42.38		to	43.69
	December 31, 2002	292,860		5.1135	to	10.9267		1,507,781	-		1.15	to	1.85		(47.37	)	to	9.27
TEC
	December 31, 2006	4,306,342		4.0772	to	4.6453		18,818,345	-		1.15	to	1.85		19.72		to	20.57
	December 31, 2005	5,244,561		3.4021	to	3.8152		18,988,564	-		1.15	to	1.85		4.23		to	4.99
	December 31, 2004	6,675,608		3.2606	to	3.6344		23,074,612	-		1.15	to	1.85		0.54		to	1.27
	December 31, 2003	8,298,127		3.2398	to	3.5893		28,352,273	-		1.00	to	2.50		42.71		to	43.74
	December 31, 2002	5,811,547		2.2680	to	2.5067		14,026,934	-		1.00	to	1.85		(46.99	)	to	(46.53	)
MFJ
	December 31, 2006	53,249,495		12.0173	to	14.9995		751,331,290	2.50		1.00	to	2.55		9.06		to	10.79
	December 31, 2005	49,480,358		10.9837	to	13.5657		629,492,828	2.32		1.00	to	2.55		0.20		to	1.79
	December 31, 2004	35,062,662		10.9007	to	13.3545		433,233,722	2.17		1.00	to	2.55		8.30		to	10.03
	December 31, 2003	21,048,945		10.2866	to	12.1619		231,480,462	2.74		1.00	to	2.50		9.69		to	15.66
	December 31, 2002	13,048,289		9.0028	to	10.5361		120,728,633	2.87		1.00	to	2.30		(9.97	)	to	5.36
TRS
	December 31, 2006	49,201,194		13.3518	to	34.0206		1,081,166,349	2.82		1.15	to	1.85		10.15		to	10.95
	December 31, 2005	61,210,836		12.1091	to	30.7387		1,229,097,435	2.66		1.15	to	1.85		1.12		to	1.85
	December 31, 2004	70,122,337		11.9625	to	30.2533		1,417,695,061	2.52		1.00	to	1.85		9.40		to	10.35
	December 31, 2003	77,917,832		10.9232	to	27.5211		1,465,467,127	3.35		1.00	to	1.85		14.98		to	15.98
	December 31, 2002	86,032,615		9.4901	to	23.8208		1,430,271,084	3.22		1.00	to	1.85		(68.81	)	to	(6.66	)
MFE
	December 31, 2006	2,880,540		16.8080	to	28.8532		64,951,521	2.61		1.00	to	2.35		28.87		to	30.65
	December 31, 2005	2,310,367		12.9764	to	22.1297		37,623,081	0.76		1.00	to	2.30		14.35		to	15.81
	December 31, 2004	1,823,681		11.3020	to	19.1479		24,246,657	1.74		1.00	to	2.25		21.17		to	28.71
	December 31, 2003	1,653,827		8.8571	to	14.9068		15,912,021	2.77		1.00	to	2.30		32.90		to	34.67
	December 31, 2002	1,391,497		6.6338	to	11.0847		9,331,003	3.74		1.00	to	2.05		(25.56	)	to	10.85
UTS
	December 31, 2006	14,522,188		13.9930	to	44.0096		327,399,609	2.98		1.15	to	1.85		29.84		to	30.78
	December 31, 2005	16,956,503		10.7441	to	33.7338		299,205,027	0.99		1.15	to	1.85		15.13		to	15.96
	December 31, 2004	18,353,815		9.3039	to	29.1618		285,330,031	1.95		1.15	to	1.85		27.96		to	28.89
	December 31, 2003	20,380,385		7.2490	to	22.6819		249,989,394	3.17		1.15	to	1.85		33.74		to	34.71
	December 31, 2002	22,902,575		5.4038	to	16.8792		210,814,418	3.79		1.00	to	1.85		(25.26	)	to	(24.72	)
MV1
	December 31, 2006	8,782,638		13.9154	to	18.4691		138,689,478	1.28		1.00	to	2.55		17.59		to	19.46
	December 31, 2005	9,478,274		11.7960	to	15.4922		124,900,820	1.19		1.00	to	2.55		3.64		to	5.28
	December 31, 2004	9,411,407		11.3265	to	14.7447		117,692,787	1.14		1.00	to	2.55		12.24		to	14.03
	December 31, 2003	7,717,616		10.0399	to	12.9572		83,091,042	1.35		1.00	to	2.55		18.88		to	23.84
	December 31, 2002	5,567,204		8.2070	to	10.4844		46,412,389	0.75		1.00	to	2.10		(17.93	)	to	4.84
MVS
	December 31, 2006	17,360,967		14.2333	to	20.1884		314,343,755	1.54		1.15	to	1.85		18.73		to	19.59
	December 31, 2005	20,463,991		11.9762	to	16.8820		311,868,666	1.40		1.15	to	1.85		4.63		to	5.39
	December 31, 2004	22,855,509		11.4346	to	16.0188		332,260,043	1.30		1.00	to	1.85		13.38		to	14.36
	December 31, 2003	23,811,669		10.0749	to	14.0264		304,199,758	1.63		1.15	to	1.85		23.00		to	24.06
	December 31, 2002	25,236,732		8.1828	to	11.3216		261,243,141	0.83		1.00	to	1.85		(15.18	)	to	(14.44	)
OCA
	December 31, 2006	2,590,414		11.9843	to	16.1528		39,813,448	0.18		1.30	to	2.55		4.94		to	6.29
	December 31, 2005	2,328,976		11.4153	to	15.2053		33,917,242	0.71		1.30	to	2.55		2.20		to	3.50
	December 31, 2004	2,178,624		12.2953	to	14.6981		30,806,058	0.22		1.25	to	2.55		3.89		to	5.17
	December 31, 2003	1,528,490		11.8349	to	13.9752		20,450,955	0.02		1.35	to	2.55		18.35		to	28.93
	December 31, 2002 (b)	16,503		10.8085	to	10.8398		178,514	-		1.35	to	2.05		8.09		to	8.40
OGG
	December 31, 2006	1,996,825		15.4407	to	16.0948		31,585,162	0.68		1.30	to	2.30		14.67		to	15.84
	December 31, 2005	991,457		13.5710	to	13.8938		13,587,975	0.67		1.30	to	2.30		11.44		to	12.58
	December 31, 2004 (d)	514,788		12.1774	to	12.3035		6,301,890	0.10		1.25	to	2.30		16.14		to	17.27

(b) For the period August 5, 2002 (commencement of operations) through December 31, 2002.

(d) For the period February 2, 2004 (commencement of operations) through December 31, 2004.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights - continued

		At December 31							For year ended December 31
			Unit Fair Value						Investment		Expense Ratio				Total Return
		Units	lowest to highest				Net Assets		Income Ratio*		lowest to highest**				lowest to highest***
OMG
	December 31, 2006	31,198,650	$	12.9188	to	16.1003	$	484,702,859	0.79	%	1.30	to	2.55	%	11.84		to	13.27	%
	December 31, 2005	17,938,766		11.4982	to	14.2212		246,848,978	0.91		1.30	to	2.55		3.05		to	4.37
	December 31, 2004	8,686,835		11.1107	to	13.6327		114,799,188	0.25		1.25	to	2.55		6.36		to	11.40
	December 31, 2003	509,155		11.8023	to	12.6618		6,365,427	0.19		1.35	to	2.30		16.55		to	24.73
	December 31, 2002 (b)	17,855		9.5579	to	10.1512		180,752			1.35	to	2.25		(4.42	)	to	1.51
OMS
	December 31, 2006	925,673		14.9139	to	20.7493		18,678,581	0.02		1.30	to	2.30		12.03		to	13.17
	December 31, 2005	595,796		13.3787	to	18.3437		10,694,455	-		1.35	to	2.30		7.20		to	8.24
	December 31, 2004	489,698		15.2353	to	16.9475		8,170,089	-		1.25	to	2.30		16.43		to	17.57
	December 31, 2003	236,889		13.7917	to	14.4153		3,383,961	-		1.35	to	2.30		30.85		to	42.30
	December 31, 2002 (b)	15,242		10.0990	to	10.1304		154,060	-		1.35	to	2.10		0.99		to	1.30
PMB
	December 31, 2006	534,239		12.6765	to	19.6898		9,997,829	5.39		1.30	to	2.25		6.82		to	7.86
	December 31, 2005	290,180		11.8652	to	18.2643		5,141,808	5.13		1.35	to	2.25		8.30		to	9.29
	December 31, 2004 (d)	96,856		15.8431	to	16.7115		1,583,863	4.20		1.25	to	2.25		9.59		to	10.61
PLD
	December 31, 2006	45,681,184		9.9020	to	10.2799		463,694,126	4.25		1.30	to	2.55		1.33		to	2.63
	December 31, 2005	23,604,352		9.7717	to	10.0216		234,513,041	2.90		1.30	to	2.55		(1.56	)	to	(0.30	)
	December 31, 2004 (d)	11,851,375		9.9261	to	10.0564		118,663,580	1.46		1.25	to	2.55		(0.75	)	to	0.47
PRR
	December 31, 2006	3,162,459		10.1108	to	12.1816		37,613,046	4.23		1.30	to	2.35		(1.65	)	to	(0.59	)
	December 31, 2005	2,712,386		10.2970	to	12.2602		32,648,274	2.84		1.30	to	2.30		(0.24	)	to	0.77
	December 31, 2004	1,942,972		10.2697	to	12.1722		23,367,250	1.04		1.25	to	2.30		2.70		to	7.44
	December 31, 2003	997,936		11.1063	to	11.3288		11,220,537	1.66		1.35	to	2.30		6.35		to	7.38
	December 31, 2002 (b)	48,547		10.5171	to	10.5497		511,033	3.18		1.35	to	2.10		5.17		to	5.50
PTR
	December 31, 2006	6,231,960		10.2806	to	11.5442		70,316,909	4.41		1.30	to	2.55		1.21		to	2.51
	December 31, 2005	5,192,072		10.1577	to	11.2677		57,410,982	3.44		1.30	to	2.55		(0.15	)	to	1.12
	December 31, 2004	4,491,441		10.1448	to	11.1480		49,373,803	1.90		1.25	to	2.55		1.45		to	3.47
	December 31, 2003	3,385,657		9.9532	to	10.7740		36,064,300	2.54		1.35	to	2.55		(0.47	)	to	3.63
	December 31, 2002 (b)	144,063		10.3584	to	10.4113		1,494,943	3.71		1.35	to	2.25		3.58		to	4.11
PRA
	December 31, 2006	192,534		10.4068	to	10.5620		2,021,607	6.50		1.35	to	2.25		2.31		to	3.25
	December 31, 2005 (f)	18,761		10.2116	to	10.2236		191,646	4.67		1.35	to	2.05		2.12		to	2.24
PCR
	December 31, 2006	494,790		9.7092	to	9.8541		4,852,130	6.00		1.30	to	2.30		(5.32	)	to	(4.36	)
	December 31, 2005 (f)	49,012		10.2856	to	10.3019		504,509	2.08		1.35	to	2.30		2.86		to	3.02
SSA
	December 31, 2006	403,028		12.4447	to	13.6457		5,143,745	1.56		1.30	to	2.30		17.03		to	18.22
	December 31, 2005	146,395		10.7134	to	11.5423		1,582,621	0.00		1.30	to	2.30		(3.25	)	to	(2.26	)
	December 31, 2004 (d)	99,939		11.0730	to	11.1712		1,110,866	0.09		1.25	to	2.30		10.73		to	11.71
LGF
	December 31, 2006 (h)	80,896		9.8104	to	9.8937		797,765	-		1.35	to	2.10		(1.60	)	to	(1.10	)
IGB
	December 31, 2006	821,108		10.4189	to	10.7963		8,748,658	5.05		1.30	to	2.30		2.73		to	3.78
	December 31, 2005	340,324		10.2177	to	10.4083		3,511,097	4.45		1.30	to	2.30		(0.60	)	to	0.41
	December 31, 2004 (d)	67,201		10.2282	to	10.3705		694,126	4.32		1.25	to	2.30		2.28		to	3.71
SRE
	December 31, 2006	5,480,387		17.7423	to	18.3844		99,533,635	1.38		1.30	to	2.55		35.12		to	36.85
	December 31, 2005	3,596,058		13.1306	to	13.4410		47,926,006	1.38		1.30	to	2.55		6.58		to	7.95
	December 31, 2004 (d)	1,693,151		12.3194	to	12.4577		20,994,795	-		1.25	to	2.55		23.19		to	24.58
SC3
	December 31, 2006	769,769		22.8241	to	27.3850		19,831,254	1.58		1.35	to	2.55		35.43		to	37.09
	December 31, 2005	967,700		16.8526	to	20.0460		18,256,525	1.61		1.35	to	2.55		6.88		to	8.19
	December 31, 2004	1,046,871		15.7675	to	18.5935		18,344,566	1.68		1.25	to	2.55		29.91		to	31.52
	December 31, 2003	960,307		12.1371	to	14.1883		12,836,641	-		1.35	to	2.55		21.37		to	34.11
	December 31, 2002 (b)	27,198		10.0602	to	10.0914		273,956	34.66		1.35	to	2.10		0.60		to	0.91

(b) For the period August 5, 2002 (commencement of operations) through December 31, 2002.

(d) For the period February 2, 2004 (commencement of operations) through December 31, 2004.

(f) For the period October 31, 2005 (commencement of operations) through December 31, 2005.

(h) For the period May 1, 2006 (commencement of operations) through December 31, 2006.

Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts Included in Sun Life of Canada (U.S.) Variable Account F

Notes to Financial Statements - continued

(6) Financial Highlights - continued

		At December 31							For year ended December 31
			Unit Fair Value						Investment		Expense Ratio				Total Return
		Units	lowest to highest					Net Assets	Income Ratio*		lowest to highest**				lowest to highest***
CMM
	December 31, 2006	119,244	$	10.1589	to	10.3821	$	1,230,135	4.30	%	1.35	to	2.05	%	2.21	to	2.93	%
	December 31, 2005 (e)	48,728		10.0463	to	10.0862		490,142	2.24		1.35	to	1.85		0.46	to	0.86
WTF
	December 31, 2006	76,127		13.3415	to	13.6344		1,031,416	0.29		1.35	to	2.25		17.02	to	18.09
	December 31, 2005 (e)	36,338		11.4820	to	11.5458		418,444			1.35	to	2.05		14.82	to	15.46
USC
	December 31, 2006	2,650		11.7457				31,111	0.13		1.65				6.10
	December 31, 2005 (e)	699		11.0707				7,735			1.65				10.71

(e) For the period April 25, 2005 (commencement of operations) through December 31, 2005.

* Represents the dividends, excluding distributions of capital gains, received by the Sub-Account from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. The ratio excludes those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the Sub-Account is affected by the timing of the declaration of dividends by the underlying fund in which the Sub-Accounts invest.

** Ratio represents the annualized contract expenses of the separate account. The ratio includes only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expense of the underlying fund are excluded.

*** Represents the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expense assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period.

Report of Independent Registered Public Accounting Firm

To the Participants in Regatta, Regatta Gold, Regatta Classic, Regatta Platinum, Regatta Extra, Regatta Access, Regatta Choice, Regatta Flex 4, Regatta Flex II, Regatta Choice II, Sun Life Financial Masters Extra, Sun Life Financial Masters Choice, Sun Life Financial Masters Access, Sun Life Financial Masters Flex, Sun Life Financial Masters IV and Sun Life Financial Masters VII Sub-Accounts of Sun Life of Canada (U.S.) Variable Account F and the Board of Directors of Sun Life Assurance Company of Canada (U.S.):

We have audited the accompanying statements of condition of Columbia Funds VIT Small Cap Value Fund Sub-Account, Columbia Funds VIT Marsico 21st Century Portfolio Sub-Account, Columbia Funds VIT Marsico Growth Portfolio Sub-Account, Columbia VIT Marsico International Opportunities Portfolio Sub-Account, Fidelity VIP Freedom 2010 Portfolio Sub-Account, Fidelity VIP Freedom 2015 Portfolio Sub-Account, Fidelity VIP Freedom 2020 Portfolio Sub-Account, Franklin Templeton VIP Mutual Shares Securities Fund Sub-Account, Franklin Templeton VIP Developing Markets Securities Fund Sub-Account, Franklin Templeton VIP Growth Securities Fund Class 2 Sub-Account, Franklin Templeton VIP Foreign Securities Fund Sub-Account, Franklin Templeton VIP Small Cap Value Securities Fund Sub-Account, Lord Abbett All Value Portfolio Sub-Account, Lord Abbett Growth & Income Portfolio Sub-Account, Lord Abbett Growth Opportunities Portfolio Sub-Account, Lord Abbett Mid Cap Value Sub-Account, MFS/Sun Life Bond S Class Sub-Account, MFS/Sun Life Bond Series Sub-Account, MFS/Sun Life Capital Appreciation S Class Sub-Account, MFS/Sun Life Capital Appreciation Series Sub-Account, MFS/Sun Life Capital Opportunities S Class Sub-Account, MFS/Sun Life Capital Opportunities Series Sub-Account, MFS/Sun Life Emerging Growth S Class Sub-Account, MFS/Sun Life Emerging Growth Series Sub-Account, MFS/Sun Life Emerging Markets Equity S Class Sub-Account, MFS/Sun Life Emerging Markets Equity Series Sub-Account, MFS/Sun Life Global Government S Class Sub-Account, MFS/Sun Life Global Government Series Sub-Account, MFS/Sun Life Global Growth S Class Sub-Account, MFS/Sun Life Global Growth Series Sub-Account, MFS/Sun Life Global Total Return S Class Sub-Account, MFS/Sun Life Global Total Return Series Sub-Account, MFS/Sun Life Government Securities S Class Sub-Account, MFS/Sun Life Government Securities Series Sub-Account, MFS/Sun Life High Yield S Class Sub-Account, MFS/Sun Life High Yield Series Sub-Account, MFS/Sun Life International Growth S Class Sub-Account, MFS/Sun Life International Growth Series Sub-Account, MFS/Sun Life International Investors Trust S Class Sub-Account, MFS/Sun Life International Investors Trust Series Sub-Account, MFS/Sun Life Massachusetts Investors Growth Stock S Class Sub-Account, MFS/Sun Life Massachusetts Investors Growth Stock Series Sub-Account, MFS/Sun Life Massachusetts Investors Trust S Class Sub-Account, MFS/Sun Life Massachusetts Investors Trust Series Sub-Account, MFS/Sun Life Mid Cap Growth S Class Sub-Account, MFS/Sun Life Mid Cap Growth Series Sub-Account, MFS/Sun Life Mid Cap Value S Class Sub-Account, MFS/Sun Life Money Market S Class Sub-Account, MFS/Sun Life Money Market Series Sub-Account, MFS/Sun Life New Discovery S Class Sub-Account, MFS/Sun Life New Discovery Series Sub-Account, MFS/Sun Life Research S Class Sub-Account, MFS/Sun Life Research Series Sub-Account, MFS/Sun Life Research Growth and Income S Class Sub-Account, MFS/Sun Life Research Growth and Income Series Sub-Account, MFS/Sun Life Research International S Class Sub-Account, MFS/Sun Life Research International Series Sub-Account, MFS/Sun Life Strategic Growth S Class Sub-Account, MFS/Sun Life Strategic Growth Series Sub-Account, MFS/Sun Life Strategic Income S Class Sub-Account, MFS/Sun Life Strategic Income Series Sub-Account, MFS/Sun Life Strategic Value S Class Sub-Account, MFS/Sun Life Technology S Class Sub-Account, MFS/Sun Life Technology Series Sub-Account, MFS/Sun Life Total Return S Class Sub-Account, MFS/Sun Life Total Return Series Sub-Account, MFS/Sun Life Utilities S Class Sub-Account, MFS/Sun Life Utilities Series Sub-Account, MFS/Sun Life Value S Class Sub-Account, MFS/Sun Life Value Series Sub-Account, Oppenheimer Capital Appreciation Fund Sub-Account, Oppenheimer Global Securities Fund Sub-Account, Oppenheimer Main Street Fund Sub-Account, Oppenheimer Main St. Small Cap Fund Sub-Account, PIMCO VIT Emerging Markets Bond Portfolio Sub-Account, PIMCO VIT Low Duration Portfolio Sub-Account, PIMCO VIT Real Return Portfolio Sub-Account, PIMCO VIT Total Return Portfolio Sub-Account, PIMCO VIT All Asset Portfolio Sub-Account, PIMCO VIT Commodity Real Return Strategy Portfolio Sub-Account, SCAT Sun Capital All Cap S Class Sub-Account, SCAT Sun Capital FI Large Cap Growth Fund Sub-Account, SCAT Sun Capital Investment Grade Bond S Class Sub-Account, SCAT Sun Capital Real Estate Fund S Class Sub-Account, SCAT Sun Capital Real Estate Fund Sub-Account, SCAT Sun Capital Money Market S Class Sub-Account, Wanger Advisors Trust Wanger Select Sub-Account, and Wanger Advisors Trust Wanger U.S. Smaller Companies Sub-Account of Sun Life of Canada (U.S.) Variable Account F (collectively the "Sub-Accounts"), as of December 31, 2006, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Sub-Accounts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.  The Sub-Accounts are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Sub-Accounts’ internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the custodian.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Sub-Accounts as of December 31, 2006, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

April 20, 2007

Boston, Massachusetts