Sun Life Financial reports first quarter net income of $202 million, or $.48 per share, an increase of 12 per cent

HIGHLIGHTS:

- Earnings increase by 12 per cent despite severe declines in

international equity markets

- Record inflows at MFS grow market share

- Cost reductions of $41 million relative to fourth quarter



Apr 25, 2001, 01:00 ET from Sun Life Financial Services of Canada Inc.

    TORONTO, April 25 /PRNewswire/ - Sun Life Financial Services of Canada
 Inc. (NYSE/TSE: "SLC") today reported shareholder net income of $202 million
 for the quarter ending March 31, 2001, an increase of 12 per cent over the
 $181 million earned in the same period in 2000. Earnings per share of $0.48
 were up 7 per cent from the $0.45 per share earned in the first quarter a year
 ago. Revenues for the quarter were $4,333 million, compared with $3,749
 million in the first quarter of 2000, an increase of 16 per cent. Assets under
 management were $316 billion at quarter end, a decline of 2 per cent compared
 with the $321 billion at the end of the first quarter of 2000, and a decline
 of 4 per cent relative to assets of $329 billion at December 31, 2000.
 
 
     ------------------------------------------------------------------------
                               Earnings Summary
 
     (in millions, except per share amounts)
 
                                                  Quarterly Results
                                          1Q'01        4Q'00        1Q'00
                                          -----        -----        -----
     Shareholder Net Income                 202          211          181(x)
     Earnings Per Share                     .48          .50          .45(x)
     Average Shares Outstanding             421          422          400
 
     (x)Pro forma
     ------------------------------------------------------------------------
 
 
     "Sun Life Financial's ability to produce solid earnings despite severe
 declines in international equity markets shows the strength and resiliency of
 our diversified business portfolio," said Donald A. Stewart, Chairman and
 Chief Executive Officer. "Our first quarter performance demonstrates our
 employees' success at taking offsetting actions to maintain sales and earnings
 momentum in a difficult environment. This achievement is indicative of a
 management team committed to excellence and long-term success."
     C. James Prieur, President and Chief Operating Officer commented, "In a
 quarter when much of the asset management industry in the U.S. experienced net
 redemptions, MFS not only achieved solid net sales, but actually increased net
 sales by 97 per cent relative to the first quarter in 2000 and 55 per cent
 relative to the fourth quarter of 2000 establishing a new record for quarterly
 inflows. This marketing achievement represents an important increase in market
 share and sets the stage for outstanding earnings performance with the
 recovery of North American equity markets. The inherent strength of the Sun
 Life Financial franchise has become increasingly evident as our ability to
 execute long-term growth strategies in a challenging operating environment
 produces tangible results."
     Paul Derksen, Executive Vice-President and Chief Financial Officer said,
 "Productivity improvement remains a prominent theme in explaining Sun Life
 Financial's ability to show robust performance despite market volatility.
 Operating expenses declined by $41 million or 6 per cent in the first quarter
 relative to the level reported in the fourth quarter of 2000. This is a
 significant accomplishment given the 7 per cent growth in revenues achieved
 over the same time period."
     "Solid earnings added to the Company's accumulated capital resources
 during the quarter," added Mr. Derksen. "This high level of capital
 contributed to the decline in return on equity to 12.0 per cent. We are
 continuing to examine opportunities to increase the efficiency of our capital
 deployment as a means of enhancing key measures of profitability."
 
 
     FINANCIAL REVIEW
 
     At March 31, 2001, assets under management were $316 billion, a decrease
 of $5 billion or 2 per cent relative to the $321 billion at March 31, 2000.
 Relative to assets under management of $329 billion at December 31, 2000, the
 decline was $13 billion, or 4 per cent. Both decreases are attributable to the
 downturn in North American equity markets over the past year.
     Total revenue in the first quarter was $4.3 billion, an increase of $584
 million, or 16 per cent, compared to the $3.7 billion recorded in the quarter
 ending March 31, 2000.
     Earnings attributable to shareholders for the first quarter were $202
 million, up $21 million, or 12 per cent from the $181 million earned in the
 first quarter of 2000. Total net income, which includes earnings attributable
 to policyholders, was $201 million, an increase of $4 million, or 2 per cent,
 as compared to the $197 million earned in the first quarter of 2000. Net cash
 flows in the first quarter of 2001 were $35 million compared to a decline of
 $153 million in the first quarter of 2000. At March 31, 2001 cash, cash
 equivalents and short-term investments were $4.3 billion compared to $3.1
 billion a year earlier and $4.0 billion at December 31, 2000.
     Pro forma earnings reflect the impact of the demutualization for the full
 reporting periods. Differences between total net income and earnings
 attributable to shareholders beginning with the second quarter of 2000
 represent earnings attributable to participating policyholders.
 
 
     PERFORMANCE BY COUNTRY
 
     Canada
 
     ------------------------------------------------------------------------
                                               Quarterly Results
                                            1Q'01    4Q'00    1Q'00
                                            -----    -----    -----
 
     Individual Life                           10       42       (1)
     Group Life and Health                     12       27       11
     Group Retirement Services                 11       15       13
     Spectrum and Other                        10       (8)      15
     Investment Portfolio                       6      (14)      (3)
                                              ----     ----     ----
                    Total                      49       62       35
     ------------------------------------------------------------------------
 
 
     Canadian operations earned $49 million in the first quarter, an increase
 of $14 million, or 40 per cent, relative to the $35 million earned in the
 first quarter of 2000. This increase was driven by an $11 million increase in
 earnings from Individual Life and $9 million in the Investment Portfolio
 partially offset by earnings declines in Spectrum and Group Retirement
 Services.
     Earnings declined by $13 million, or 21 per cent, relative to the $62
 million earned in the fourth quarter of 2000 when a number of special items
 added $17 million to that quarter's results. First quarter 2001 earnings for
 Canadian operations would have shown an increase of $4 million, or 9 per cent
 relative to the adjusted results of the fourth quarter of 2000 absent the
 favourable impact of the aforementioned special items.
 
     -    Individual Life reported earnings of $10 million for the current
          quarter, a decline of $32 million relative to the $42 million earned
          in the fourth quarter of 2000 when special items added $29 million
          to that quarter's results. The loss of $1 million reported in the
          first quarter of 2000 relates to one-time reserve changes and other
          unfavourable items in that quarter.
 
     -    Group Life and Health earned $12 million in the quarter, an increase
          of $1 million or 9 per cent, relative to the $11 million earned in
          the first quarter of 2000. Earnings of $27 million in the fourth
          quarter of 2000 reflected the benefit of more favourable morbidity
          experience than that experienced in the first quarter of 2001.
 
     -    Group Retirement Services earned $11 million in the first quarter of
          2001, a decline of $2 million, or 15 per cent, relative to the first
          quarter of 2000. Adverse mortality experience was the primary factor
          behind the earnings decline relative to both the first and fourth
          quarters of 2000.
 
     -    Spectrum and Other earnings declined to $10 million in the current
          quarter from $15 million in the first quarter of 2000. This decline
          resulted primarily from a $1.2 billion decline in average earning
          assets as equity markets experienced valuation pressures.
 
 
     United States Insurance Operations
 
     ------------------------------------------------------------------------
                                               Quarterly Results
                                            1Q'01    4Q'00    1Q'00
                                            -----    -----    -----
     Retirement Products and Services          12       15       15
     Individual Life                           23       21       21
     Group Life and Health                      6       12        0
     Investment Portfolio                       9       (5)      29
                                              ----     ----     ----
                    Total                      50       43       65
     ------------------------------------------------------------------------
 
 
     U.S. Insurance Operations earned $50 million in the first quarter
 compared to $65 million in the first quarter of 2000, a decrease of $15
 million. A reduction in venture capital gains net of asset provisions
 accounted for $19 million of the decrease. U.S. operations achieved an
 increase of $4 million, or 9 per cent, when comparing earnings in the first
 quarter of 2001 to the adjusted results for the first quarter of 2000.
 
     -    Retirement Products and Services reported earnings of $12 million, a
          decline of $3 million or 20 per cent relative to the $15 million
          earned in the first quarter of 2000. The primary factor causing this
          decrease was a reduction in fees resulting from declining market
          valuations.
 
     -    Individual Life had a solid quarter earning $23 million, an increase
          of $2 million, or 10 per cent, relative to the $21 million earned in
          the first quarter of 2000.
 
     -    Group Life and Health earned $6 million in the first quarter, a $6
          million increase relative to the breakeven quarter reported in the
          first quarter of 2000. The profitability growth reflects the
          repricing of various products including stop-loss.
 
 
     MFS Investment Management
 
     ------------------------------------------------------------------------
                                                    Quarterly Results
                                             1Q'01        4Q'00        1Q'00
                                             -----        -----        -----
 
     MFS Net Income (C$mm)                      58           60           62
     Assets Under Management (C$Billion)       209          221          219
     Net New Sales (C$Billion)                12.4          8.0          6.3
     Market Movement/Currency (C$Billion)    (24.8)       (24.9)        13.9
     ------------------------------------------------------------------------
 
 
     MFS earned $58 million in the first quarter, a decline of $4 million, or
 6 per cent, relative to the $62 million earned in the first quarter of 2000.
 Relative to performance in the fourth quarter of 2000 earnings in the first
 quarter declined by $2 million, or 3 per cent. Two factors were responsible
 for MFS' ability to report relatively stable earnings performance during this
 period of steep declines in U.S. equity markets: (1) net funds inflows
 provided a partial offset to asset valuation declines, and (2) aggressive cost
 control enhanced profit margins.
 
     -    Net new sales for the quarter were a record $12.4 billion (US$8.1
          billion).
 
     -    No. 2 ranking for net new retail mutual fund flows in the non-
          proprietary channel (year to date  February 28)
 
     -    Captured 13 per cent of retail mutual fund industry's net funds
          flows through the non-proprietary channel.
 
     -    No. 5 ranking for overall mutual fund net new flows.
 
     -    No. 9 ranking by size among U.S. mutual fund companies with US$89
          billion in long term mutual fund assets under management (February
          28, 2001).
 
     -    59 per cent of domestic retail mutual fund assets reside in one of
          MFS' 25 funds with a 4 or 5 Star Overall Morningstar Rating
          (February 28, 2001).
 
 
     United Kingdom
 
     ------------------------------------------------------------------------
                                                Quarterly Results
                                          1Q'01        4Q'00        1Q'00
                                          -----        -----        -----
 
        UK Net Income                        39           37           17
     ------------------------------------------------------------------------
 
 
     Earnings for the U.K. were $39 million in the first quarter of 2001, an
 increase of $22 million, or 129 per cent, relative to earnings of $17 million
 in the first quarter of 2000. Adverse mortality experience in the first
 quarter of 2000 contributed to this favourable earnings comparison.
     On February 15, 2001, Sun Life Financial announced its decision to exit
 the direct sales force distribution business in the U.K. The sales force was
 terminated on March 30, 2001.
 
 
     Asia
 
     ------------------------------------------------------------------------
                                                   Quarterly Results
                                            1Q'01        4Q'00        1Q'00
 
     Asia Net Income                            8            6            7
     ------------------------------------------------------------------------
 
 
     Earnings for Asia in the first quarter were $8 million, an increase of $1
 million, or 14 per cent relative to earnings in the first quarter of 2000. A
 significantly improved performance in the Hong Kong market contributed to this
 increase. Current period earnings include the impact of continuing investments
 in the Asian market in pursuit of longer-term growth prospects.
 
 
     MARKETING AND CORPORATE HIGHLIGHTS
 
     -    Canada's Group Division launched first paperless claims payment
          service in Canada.
 
     -    Canadian Operations' Group Retirement Services had strong sales and
          deposits of $730 million, up 85 per cent from the fourth quarter of
          2000.
 
     -    New premium and equivalents increased by 124 per cent from the
          fourth quarter in the Canadian group business.
 
     -    Canadian Operations established partnership with Intuit Canada
          providing Intuit's QuickTax software with easy access to Sun Life
          Financial's wealth management products.
 
     -    Sun Life Assurance Company of Canada (U.S.) acquired Vision
          Financial Corporation, a third-party administrator specializing in
          the administration of worksite insurance products.
 
     -    Rated  No. 1 for overall U.S. Retirement Products & Services in
          Operations Support by DALBAR, an independent rating service.
 
     -    MFS achieved record quarterly net sales.
 
     -    Sun Life Financial sold its first life insurance policy in India
          since re-establishing its Indian insurance business through our
          joint venture with Aditya Birla Group last year.
 
 
     SUN LIFE FINANCIAL
 
     Sun Life Financial is a leading international financial services
 organization providing a diverse range of wealth accumulation and protection
 products and services to individuals and corporate customers. Tracing its
 roots back to 1871, Sun Life Financial and its partners today have operations
 in key markets worldwide, including Canada, the United States, the United
 Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, and Bermuda. As
 of March 31, 2001 the Sun Life Financial group of companies has total assets
 under management of CDN $316 billion.
     Sun Life Financial Services of Canada Inc. trades on the Toronto (TSE),
 New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol
 "SLC", and on the London Stock Exchange under Ticker symbol "SFC".
 
 
     /NOTE TO EDITORS:  All figures shown in Canadian dollars.  Exchange
     rates used by the Company for balance sheet purposes, as at March 31,
     2001 were as follows:
 
     1 USD  equals  $1.57
     1 GBP  equals  $2.25/
 
 
                SUN LIFE FINANCIAL SERVICES OF CANADA INC.
                  COMPARATIVE HIGHLIGHTS - 2001 vs. 2000
                     (in millions of Canadian dollars)
 
 
                                             For three months ended March 31
                                                2001      2000       Change
                                         ------------------------------------
                                                  $         $           %
 
 
     Shareholders' Net Income (1)               202       181          12
     Earnings Per Share (1)                    0.48      0.45           7
       Weighted Average Number
        of Shares Outstanding                 421.4     400.1
     Return on Shareholders'
      Equity (1)                               12.0%     12.6%
 
     Gross Sales and Deposits
         Mutual Funds                        12,331    12,410          (1)
         Managed Funds                       10,699     5,687          88
         Segregated Funds                     1,946     1,207          61
 
     Revenue
         Premium Income                       2,561     1,992          29
         Net Investment Income                  941       975          (3)
         Fee Income                             831       782           6
                                         ------------------------
         Total Revenue                        4,333     3,749          16
                                         ------------------------
 
                                        As at March 31          As at Dec. 31
                                       2001      2000   Change          2000
                                     -------------------------  --------------
                                         $         $      %               $
     Assets Under Management
        General Funds                 57,893   52,838     10           55,802
        Segregated Funds              45,342   48,055     (6)          48,741
        Other Assets Under
         Management
           Mutual Funds              151,580  166,543     (9)         163,160
           Managed Funds and Other    61,464   53,978     14           63,830
                                     -----------------               ---------
        Total Assets Under
         Management                  316,279  321,414     (2)         328,533
                                     -----------------               ---------
 
     Total Equity
        Participating Policyholders'
         Account                          80        84                     79
        Shareholders' Equity           6,877     5,814                  6,618
                                     -----------------               ---------
        Total Equity                   6,957     5,878                  6,697
                                     -----------------               ---------
 
     MCCSR (%)                           288       266                    295
 
 
 
     Notes:
 
     (1)       Amounts for Q1 2000 are on a pro forma basis assuming
               the Company had become public on January 1, 2000.
 
 
 

SOURCE Sun Life Financial Services of Canada Inc.
    TORONTO, April 25 /PRNewswire/ - Sun Life Financial Services of Canada
 Inc. (NYSE/TSE: "SLC") today reported shareholder net income of $202 million
 for the quarter ending March 31, 2001, an increase of 12 per cent over the
 $181 million earned in the same period in 2000. Earnings per share of $0.48
 were up 7 per cent from the $0.45 per share earned in the first quarter a year
 ago. Revenues for the quarter were $4,333 million, compared with $3,749
 million in the first quarter of 2000, an increase of 16 per cent. Assets under
 management were $316 billion at quarter end, a decline of 2 per cent compared
 with the $321 billion at the end of the first quarter of 2000, and a decline
 of 4 per cent relative to assets of $329 billion at December 31, 2000.
 
 
     ------------------------------------------------------------------------
                               Earnings Summary
 
     (in millions, except per share amounts)
 
                                                  Quarterly Results
                                          1Q'01        4Q'00        1Q'00
                                          -----        -----        -----
     Shareholder Net Income                 202          211          181(x)
     Earnings Per Share                     .48          .50          .45(x)
     Average Shares Outstanding             421          422          400
 
     (x)Pro forma
     ------------------------------------------------------------------------
 
 
     "Sun Life Financial's ability to produce solid earnings despite severe
 declines in international equity markets shows the strength and resiliency of
 our diversified business portfolio," said Donald A. Stewart, Chairman and
 Chief Executive Officer. "Our first quarter performance demonstrates our
 employees' success at taking offsetting actions to maintain sales and earnings
 momentum in a difficult environment. This achievement is indicative of a
 management team committed to excellence and long-term success."
     C. James Prieur, President and Chief Operating Officer commented, "In a
 quarter when much of the asset management industry in the U.S. experienced net
 redemptions, MFS not only achieved solid net sales, but actually increased net
 sales by 97 per cent relative to the first quarter in 2000 and 55 per cent
 relative to the fourth quarter of 2000 establishing a new record for quarterly
 inflows. This marketing achievement represents an important increase in market
 share and sets the stage for outstanding earnings performance with the
 recovery of North American equity markets. The inherent strength of the Sun
 Life Financial franchise has become increasingly evident as our ability to
 execute long-term growth strategies in a challenging operating environment
 produces tangible results."
     Paul Derksen, Executive Vice-President and Chief Financial Officer said,
 "Productivity improvement remains a prominent theme in explaining Sun Life
 Financial's ability to show robust performance despite market volatility.
 Operating expenses declined by $41 million or 6 per cent in the first quarter
 relative to the level reported in the fourth quarter of 2000. This is a
 significant accomplishment given the 7 per cent growth in revenues achieved
 over the same time period."
     "Solid earnings added to the Company's accumulated capital resources
 during the quarter," added Mr. Derksen. "This high level of capital
 contributed to the decline in return on equity to 12.0 per cent. We are
 continuing to examine opportunities to increase the efficiency of our capital
 deployment as a means of enhancing key measures of profitability."
 
 
     FINANCIAL REVIEW
 
     At March 31, 2001, assets under management were $316 billion, a decrease
 of $5 billion or 2 per cent relative to the $321 billion at March 31, 2000.
 Relative to assets under management of $329 billion at December 31, 2000, the
 decline was $13 billion, or 4 per cent. Both decreases are attributable to the
 downturn in North American equity markets over the past year.
     Total revenue in the first quarter was $4.3 billion, an increase of $584
 million, or 16 per cent, compared to the $3.7 billion recorded in the quarter
 ending March 31, 2000.
     Earnings attributable to shareholders for the first quarter were $202
 million, up $21 million, or 12 per cent from the $181 million earned in the
 first quarter of 2000. Total net income, which includes earnings attributable
 to policyholders, was $201 million, an increase of $4 million, or 2 per cent,
 as compared to the $197 million earned in the first quarter of 2000. Net cash
 flows in the first quarter of 2001 were $35 million compared to a decline of
 $153 million in the first quarter of 2000. At March 31, 2001 cash, cash
 equivalents and short-term investments were $4.3 billion compared to $3.1
 billion a year earlier and $4.0 billion at December 31, 2000.
     Pro forma earnings reflect the impact of the demutualization for the full
 reporting periods. Differences between total net income and earnings
 attributable to shareholders beginning with the second quarter of 2000
 represent earnings attributable to participating policyholders.
 
 
     PERFORMANCE BY COUNTRY
 
     Canada
 
     ------------------------------------------------------------------------
                                               Quarterly Results
                                            1Q'01    4Q'00    1Q'00
                                            -----    -----    -----
 
     Individual Life                           10       42       (1)
     Group Life and Health                     12       27       11
     Group Retirement Services                 11       15       13
     Spectrum and Other                        10       (8)      15
     Investment Portfolio                       6      (14)      (3)
                                              ----     ----     ----
                    Total                      49       62       35
     ------------------------------------------------------------------------
 
 
     Canadian operations earned $49 million in the first quarter, an increase
 of $14 million, or 40 per cent, relative to the $35 million earned in the
 first quarter of 2000. This increase was driven by an $11 million increase in
 earnings from Individual Life and $9 million in the Investment Portfolio
 partially offset by earnings declines in Spectrum and Group Retirement
 Services.
     Earnings declined by $13 million, or 21 per cent, relative to the $62
 million earned in the fourth quarter of 2000 when a number of special items
 added $17 million to that quarter's results. First quarter 2001 earnings for
 Canadian operations would have shown an increase of $4 million, or 9 per cent
 relative to the adjusted results of the fourth quarter of 2000 absent the
 favourable impact of the aforementioned special items.
 
     -    Individual Life reported earnings of $10 million for the current
          quarter, a decline of $32 million relative to the $42 million earned
          in the fourth quarter of 2000 when special items added $29 million
          to that quarter's results. The loss of $1 million reported in the
          first quarter of 2000 relates to one-time reserve changes and other
          unfavourable items in that quarter.
 
     -    Group Life and Health earned $12 million in the quarter, an increase
          of $1 million or 9 per cent, relative to the $11 million earned in
          the first quarter of 2000. Earnings of $27 million in the fourth
          quarter of 2000 reflected the benefit of more favourable morbidity
          experience than that experienced in the first quarter of 2001.
 
     -    Group Retirement Services earned $11 million in the first quarter of
          2001, a decline of $2 million, or 15 per cent, relative to the first
          quarter of 2000. Adverse mortality experience was the primary factor
          behind the earnings decline relative to both the first and fourth
          quarters of 2000.
 
     -    Spectrum and Other earnings declined to $10 million in the current
          quarter from $15 million in the first quarter of 2000. This decline
          resulted primarily from a $1.2 billion decline in average earning
          assets as equity markets experienced valuation pressures.
 
 
     United States Insurance Operations
 
     ------------------------------------------------------------------------
                                               Quarterly Results
                                            1Q'01    4Q'00    1Q'00
                                            -----    -----    -----
     Retirement Products and Services          12       15       15
     Individual Life                           23       21       21
     Group Life and Health                      6       12        0
     Investment Portfolio                       9       (5)      29
                                              ----     ----     ----
                    Total                      50       43       65
     ------------------------------------------------------------------------
 
 
     U.S. Insurance Operations earned $50 million in the first quarter
 compared to $65 million in the first quarter of 2000, a decrease of $15
 million. A reduction in venture capital gains net of asset provisions
 accounted for $19 million of the decrease. U.S. operations achieved an
 increase of $4 million, or 9 per cent, when comparing earnings in the first
 quarter of 2001 to the adjusted results for the first quarter of 2000.
 
     -    Retirement Products and Services reported earnings of $12 million, a
          decline of $3 million or 20 per cent relative to the $15 million
          earned in the first quarter of 2000. The primary factor causing this
          decrease was a reduction in fees resulting from declining market
          valuations.
 
     -    Individual Life had a solid quarter earning $23 million, an increase
          of $2 million, or 10 per cent, relative to the $21 million earned in
          the first quarter of 2000.
 
     -    Group Life and Health earned $6 million in the first quarter, a $6
          million increase relative to the breakeven quarter reported in the
          first quarter of 2000. The profitability growth reflects the
          repricing of various products including stop-loss.
 
 
     MFS Investment Management
 
     ------------------------------------------------------------------------
                                                    Quarterly Results
                                             1Q'01        4Q'00        1Q'00
                                             -----        -----        -----
 
     MFS Net Income (C$mm)                      58           60           62
     Assets Under Management (C$Billion)       209          221          219
     Net New Sales (C$Billion)                12.4          8.0          6.3
     Market Movement/Currency (C$Billion)    (24.8)       (24.9)        13.9
     ------------------------------------------------------------------------
 
 
     MFS earned $58 million in the first quarter, a decline of $4 million, or
 6 per cent, relative to the $62 million earned in the first quarter of 2000.
 Relative to performance in the fourth quarter of 2000 earnings in the first
 quarter declined by $2 million, or 3 per cent. Two factors were responsible
 for MFS' ability to report relatively stable earnings performance during this
 period of steep declines in U.S. equity markets: (1) net funds inflows
 provided a partial offset to asset valuation declines, and (2) aggressive cost
 control enhanced profit margins.
 
     -    Net new sales for the quarter were a record $12.4 billion (US$8.1
          billion).
 
     -    No. 2 ranking for net new retail mutual fund flows in the non-
          proprietary channel (year to date  February 28)
 
     -    Captured 13 per cent of retail mutual fund industry's net funds
          flows through the non-proprietary channel.
 
     -    No. 5 ranking for overall mutual fund net new flows.
 
     -    No. 9 ranking by size among U.S. mutual fund companies with US$89
          billion in long term mutual fund assets under management (February
          28, 2001).
 
     -    59 per cent of domestic retail mutual fund assets reside in one of
          MFS' 25 funds with a 4 or 5 Star Overall Morningstar Rating
          (February 28, 2001).
 
 
     United Kingdom
 
     ------------------------------------------------------------------------
                                                Quarterly Results
                                          1Q'01        4Q'00        1Q'00
                                          -----        -----        -----
 
        UK Net Income                        39           37           17
     ------------------------------------------------------------------------
 
 
     Earnings for the U.K. were $39 million in the first quarter of 2001, an
 increase of $22 million, or 129 per cent, relative to earnings of $17 million
 in the first quarter of 2000. Adverse mortality experience in the first
 quarter of 2000 contributed to this favourable earnings comparison.
     On February 15, 2001, Sun Life Financial announced its decision to exit
 the direct sales force distribution business in the U.K. The sales force was
 terminated on March 30, 2001.
 
 
     Asia
 
     ------------------------------------------------------------------------
                                                   Quarterly Results
                                            1Q'01        4Q'00        1Q'00
 
     Asia Net Income                            8            6            7
     ------------------------------------------------------------------------
 
 
     Earnings for Asia in the first quarter were $8 million, an increase of $1
 million, or 14 per cent relative to earnings in the first quarter of 2000. A
 significantly improved performance in the Hong Kong market contributed to this
 increase. Current period earnings include the impact of continuing investments
 in the Asian market in pursuit of longer-term growth prospects.
 
 
     MARKETING AND CORPORATE HIGHLIGHTS
 
     -    Canada's Group Division launched first paperless claims payment
          service in Canada.
 
     -    Canadian Operations' Group Retirement Services had strong sales and
          deposits of $730 million, up 85 per cent from the fourth quarter of
          2000.
 
     -    New premium and equivalents increased by 124 per cent from the
          fourth quarter in the Canadian group business.
 
     -    Canadian Operations established partnership with Intuit Canada
          providing Intuit's QuickTax software with easy access to Sun Life
          Financial's wealth management products.
 
     -    Sun Life Assurance Company of Canada (U.S.) acquired Vision
          Financial Corporation, a third-party administrator specializing in
          the administration of worksite insurance products.
 
     -    Rated  No. 1 for overall U.S. Retirement Products & Services in
          Operations Support by DALBAR, an independent rating service.
 
     -    MFS achieved record quarterly net sales.
 
     -    Sun Life Financial sold its first life insurance policy in India
          since re-establishing its Indian insurance business through our
          joint venture with Aditya Birla Group last year.
 
 
     SUN LIFE FINANCIAL
 
     Sun Life Financial is a leading international financial services
 organization providing a diverse range of wealth accumulation and protection
 products and services to individuals and corporate customers. Tracing its
 roots back to 1871, Sun Life Financial and its partners today have operations
 in key markets worldwide, including Canada, the United States, the United
 Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, and Bermuda. As
 of March 31, 2001 the Sun Life Financial group of companies has total assets
 under management of CDN $316 billion.
     Sun Life Financial Services of Canada Inc. trades on the Toronto (TSE),
 New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol
 "SLC", and on the London Stock Exchange under Ticker symbol "SFC".
 
 
     /NOTE TO EDITORS:  All figures shown in Canadian dollars.  Exchange
     rates used by the Company for balance sheet purposes, as at March 31,
     2001 were as follows:
 
     1 USD  equals  $1.57
     1 GBP  equals  $2.25/
 
 
                SUN LIFE FINANCIAL SERVICES OF CANADA INC.
                  COMPARATIVE HIGHLIGHTS - 2001 vs. 2000
                     (in millions of Canadian dollars)
 
 
                                             For three months ended March 31
                                                2001      2000       Change
                                         ------------------------------------
                                                  $         $           %
 
 
     Shareholders' Net Income (1)               202       181          12
     Earnings Per Share (1)                    0.48      0.45           7
       Weighted Average Number
        of Shares Outstanding                 421.4     400.1
     Return on Shareholders'
      Equity (1)                               12.0%     12.6%
 
     Gross Sales and Deposits
         Mutual Funds                        12,331    12,410          (1)
         Managed Funds                       10,699     5,687          88
         Segregated Funds                     1,946     1,207          61
 
     Revenue
         Premium Income                       2,561     1,992          29
         Net Investment Income                  941       975          (3)
         Fee Income                             831       782           6
                                         ------------------------
         Total Revenue                        4,333     3,749          16
                                         ------------------------
 
                                        As at March 31          As at Dec. 31
                                       2001      2000   Change          2000
                                     -------------------------  --------------
                                         $         $      %               $
     Assets Under Management
        General Funds                 57,893   52,838     10           55,802
        Segregated Funds              45,342   48,055     (6)          48,741
        Other Assets Under
         Management
           Mutual Funds              151,580  166,543     (9)         163,160
           Managed Funds and Other    61,464   53,978     14           63,830
                                     -----------------               ---------
        Total Assets Under
         Management                  316,279  321,414     (2)         328,533
                                     -----------------               ---------
 
     Total Equity
        Participating Policyholders'
         Account                          80        84                     79
        Shareholders' Equity           6,877     5,814                  6,618
                                     -----------------               ---------
        Total Equity                   6,957     5,878                  6,697
                                     -----------------               ---------
 
     MCCSR (%)                           288       266                    295
 
 
 
     Notes:
 
     (1)       Amounts for Q1 2000 are on a pro forma basis assuming
               the Company had become public on January 1, 2000.
 
 
 SOURCE Sun Life Financial Services of Canada Inc.