1st Quarter Results

Sun Life Fin.Services of Canada Inc
25 April 2001


               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 

(TORONTO - April 25, 2001) 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 * 
Earnings Per Share                               .48         .50          .45 * 
Average Shares Outstanding                       421         422          400 

 *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).

-  £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.

-  £5 ranking for overall mutual fund net new flows.

-  £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 £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 OF CANADA 
Sun Life Financial of Canada 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 = $1.57 
1 GBP = $2.25  


Media contacts:
 
John Vincic              Francine Cleroux
[phone]           [phone]
  
  
 
Investor Relations contact: 
Thomas Rice
[phone]  

Web site: www.sunlife.com 



                 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.