Final Results

Sun Life Fin.Services of Canada Inc
15 February 2001


Sun Life Financial caps record year with 37 per cent increase in fourth quarter
earnings to $.50 per share


Company to exit U.K. direct sales force business to enhance value creation 


(TORONTO - February 15, 2001)Sun Life Financial Services of Canada Inc.
(NYSE/TSE ticker symbol 'SLC') today reported shareholder net income of $211
million for the quarter ending December 31, 2000, an increase of 37 per cent
over the $154 million, on an adjusted pro forma basis, earned in the same period
in 1999. Earnings per share of $0.50 were up 32 per cent from the $0.38 per
share earned in the fourth quarter a year ago. For fiscal 2000, net income to
shareholders totalled a record $792 million, an increase of 22 per cent over
adjusted pro forma net income to shareholders of $649 million in 1999. Revenues
for fiscal 2000 were $16.2 billion compared to $14.7 billion in 1999, an
increase of 10 per cent. Assets under management at year-end 2000 were $329
billion compared to $301 billion in 1999, an increase of 9 per cent.      

                                  Earnings summary

(in millions, except per share amounts): 



                            Quarterly Results          Twelve Month Results 
                            4Q'00   3Q'00    4Q'99     2000        1999
 
            
Shareholders Net Income*      211     203      154      792         649   
Total Net Income(loss)        210     202      (56)     802         164   

Earnings Per Share*          0.50    0.48     0.38     1.90        1.62   
            
Average Shares Outstanding 
For Purposes of 
EPS Calculation             421.7   421.7    400.1    416.2       400.1 


*Periods prior to 2Q'00 are on an adjusted pro forma basis 


Sun Life Financial also announced that it has decided to exit the direct sales
force distribution business in the U.K. As a result, Sun Life Financial intends
to reduce its U.K. workforce from approximately 2,000 employees to approximately
300 employees by the end of 2003, with an interim target of 900 employees by the
year end 2001. A consultation process with employee representatives has been
initiated. The phase down of the U.K. business is not expected to have a
material effect on Sun Life Financial's 2001 earnings. 

'Sun Life Financial reported record earnings for the year 2000 and finished on a
solid note with record quarter earnings in the final quarter,' said Donald A.
Stewart, Chairman and Chief Executive Officer. 'At the same time we are
addressing the strategic challenges we face. Amid an increasingly difficult
environment in the U.K., we have decided to reduce our business profile. Our
operating strategies in the U.K. over the past two years have focused on
simultaneously reducing costs and creating a new approach to driving revenue
growth. Our cost reduction efforts have been successful. However, we have been
disappointed with the revenue trajectory and have concluded that we will be
unable to meet our longer term financial objectives.' 

C. James Prieur, President and Chief Operating Officer commented, 'Our fourth
quarter results extend the trend of solid momentum in key business segments.'
Referring to the marketing programs driving growth in individual business lines,
Mr. Prieur added, 'We achieved significant success in growing annual revenues in
2000: U.S. annuity sales were up 57 per cent; U.S. Group sales grew by 31 per
cent; U.S. Individual rose 195 per cent; Canadian annuity sales increased by 22
per cent; and Canadian Individual insurance sales recorded growth of 27 per
cent.' 

'MFS continued to record healthy net inflows which were all the more impressive
given the market conditions which characterized the latter half of the year,'
added Mr. Prieur. 'This enviable track record of continued gains in market
share, even during periods of market stress and rapidly changing customer
preferences regarding fund investment styles, speaks to the integrity of MFS's
broadly based strategy. Market stress has highlighted MFS' relative performance
and actually enhanced our ability to grow market share.' 

Paul Derksen, Executive Vice-President and Chief Financial Officer said: 'This
quarter proved the benefits of maintaining prudent business diversity. The broad
retreat in the equity markets reduced assets under management, which had a
direct impact on the earnings of MFS and variable annuity products. In addition,
the strong growth of the variable annuity business and the absorption of up
front costs associated with that growth put additional pressure on short term
earnings while creating long term shareholder value. Offsetting these declines
were the earnings of the group and individual businesses which were propelled by
strong growth and broad improvements in market conditions. Going forward,
however, given current trends in the equity markets, achieving consensus
analysts estimates of $2.15 per share for 2001 may be a challenge.' 

FINANCIAL REVIEW 

At December 31, 2000, assets under management were $329 billion, an increase of
$28 billion or 9 per cent relative to the $301 billion recorded at year-end
1999. However, during the fourth quarter, assets under management declined by 5
per cent compared to $345 billion at September 30, 2000. This decrease is
attributable to the downturn in North American equity markets in the fourth
quarter of 2000. 

The Company made significant progress in 2000 towards its objective of growing
fee income. Fee income businesses are generally characterized by higher margins
as well as efficient use of capital. Fee income increased 23 per cent to $855
million compared to $697 million in last year's fourth quarter but was down 1.5
per cent compared to $868 million in the third quarter of 2000. Total revenue in
the fourth quarter was $4.0 billion, an increase of $165 million or 4 per cent
compared to the $3.9 billion recorded in the quarter ending December 31, 1999. 

Earnings attributable to shareholders for the fourth quarter were $211 million,
up from $203 million earned in the third quarter of 2000. Earnings per share
were $0.50 for the fourth quarter compared to $0.48 in the third quarter of
2000. This compares favourably with the adjusted pro forma results for the
fourth quarter of 1999 of $154 million or $0.38 per share. 

Return on equity for the fourth quarter was 12.9 per cent, up from the 10.7 per
cent recorded for the fourth quarter of 1999, and also showed an increase
relative to the 12.8 per cent in the third quarter of 2000. 

There were a number of special items in the fourth quarter of 2000 whose
individual effects were largely offsetting. The net impact of these special
items was a reduction of $1 million in net income. These special items included:
(1) reserve strengthening of $52 million, (2) a favorable impact of $74 million
related to reinsurance of certain Canadian individual life insurance policies,
(3) a reduction of $37 million in net income from asset provisions, and (4) net
favorable tax and other items of $14 million. In the fourth quarter of 1999,
special items reduced earnings by $8 million. 

In the discussion below, earnings are stated on an adjusted pro forma basis as
described in note 1 of the Comparative Highlights section. Pro forma earnings
reflect the impact of the demutualization for the full reporting periods.
Differences between total net income and earnings attributable to shareholders
in the second, third and fourth quarters of 2000 represent earnings attributable
to participating policyholders. 

PERFORMANCE BY COUNTRY 

Canada 
                            Quarterly Results          Twelve Month Results 
                            4Q'00     3Q'00   4Q'99    2000          1999 
            
Individual Life                42         3       7      48            36 
Group Life and Health          27        18      14      68            28 
Group Retirement Services      15         9      12      45            38 
Spectrum and Other             (8)        8       1      24            36 
All Other                     (14)        7      17      (1)           28   
Total                          62        45      51     184           166  


Canadian operations earned $62 million in the fourth quarter, an increase of $11
million or 22 per cent compared to $51 million in the fourth quarter of 1999.
Earnings were also up $17 million or 38 per cent compared to $45 million in the
third quarter of 2000. For fiscal 2000, earnings totalled $184 million compared
to $166 million in 1999, an increase of 11 per cent. 

A number of special items as noted above had a net favorable impact of $17
million on Canada's results for the fourth quarter of 2000. 


- Individual Life achieved notable marketing success in the fourth quarter with
sales growth of 43 per cent as compared with the fourth quarter of 1999. This
strong sales growth was led by the Universal Life product which continued to be
well received by the market. Fourth quarter earnings for Individual Life were
$42 million compared to $7 million in the fourth quarter of 1999, an increase of
$35 million of which $29 million was related to special items. 


- Group Life and Health also produced excellent results with earnings of $27
million, an increase of $13 million, or 93 percent, as compared with the $14
million earned in the same period a year ago. Improving market conditions
provided enhanced pricing flexibility which contributed favourably to bottom
line results. 


- Group Retirement Services achieved an annual sales increase of 40 percent
relative to 1999's sales. This sales increase contributed to earnings of $15
million, an increase of $3 million or 25 per cent compared to $12 million earned
in the fourth quarter of 1999.


- Spectrum Investments earned $7 million in the fourth quarter an increase of $6
million as compared with $1 million earned in the fourth quarter of 1999. The
loss in the reporting unit Spectrum and Other was $8 million as Spectrum's
earnings were offset by lower earnings due to the sale of Sun Life Trust and
other special items totalling $9 million related to individual annuities.


- The reporting unit All Other recorded a loss of $14 million in the fourth
quarter of 2000, a decline of $31 million relative to the $17 million earned in
the fourth quarter of 1999. Decreased earnings included special items discussed
above as well as lower investment income resulting from declines in Canadian
capital markets.




United States Insurance Operations 

                                    Quarterly Results       Twelve Month Results

                                    4Q'00     3Q'00  4Q'99   2000          1999 
            
Retirement Products and Services       15        29      9     73            57 
Individual Life                        21        13      2     75            22 
Group Life and Health                  12         7     20     25            20 
All Other                              (5)       14     39     56            78 
Total                                  43        63     70    229           177 
   


U.S. Insurance Operations earned $43 million in the fourth quarter compared to
$70 million in the fourth quarter of 1999, a decrease of $27 million, or 39 per
cent. Earnings were also $20 million or 32 per cent lower compared to the $63
million earned in the third quarter of 2000. For fiscal 2000, earnings totalled
$229 million compared to $177 million in 1999, an increase of 29 per cent. 

Fourth quarter 1999 earnings were unusually strong as a result of two special
items: $40 million from venture capital gains and a $19 million gain from the
sale of U.S. trust company operations. 


- Retirement Products and Services also showed comparatively good performance
with earnings of $15 million, an increase of $6 million, or 66 per cent,
compared to $9 million in the same year-earlier period largely as a result of
changes in actuarial liability assumptions, partially offset by higher levels of
new business strain as a result of increased sales in this line. Fourth quarter
earnings declined from third quarter 2000 levels due to higher levels of new
business strain and expenses. Fee income from variable annuities rose $26
million or 31 per cent as a result of strong sales from this product line.


- Individual Life showed exceptional gains, as earnings increased to $21 million
in the fourth quarter, up $19 million compared to the fourth quarter of 1999.
This was the result of a combination of factors, including better mortality
experience in 2000 and special items related to actuarial liability assumptions
which depressed earnings in the fourth quarter of 1999.


- Group Life and Health earned $12 million, down 40 per cent from the $20
million earned in the fourth quarter of 1999. While overall revenues as
reflected by sales and premium income increased $36 million, net income was
lower as a result of one-time changes in actuarial liability assumptions in
1999.


- The All Other reporting unit recorded a loss of $5 million in the fourth
quarter of 2000, a decrease of $44 million relative to the $39 million earned in
the fourth quarter of 1999, when special items including $40 million in venture
capital gains and a $19 million gain on the sale of the U.S. trust company
operations bolstered returns. 




MFS Investment Management 

                                     Quarterly Results    Twelve Month Results 
                                   4Q'00    3Q'00  4Q'99  2000       1999 
Total                                 60       72     56   256        187 


MFS earned $60 million in the fourth quarter of 2000, an increase of $4 million,
or 7 per cent, compared to $56 million in the fourth quarter of 1999. Earnings
were lower by $12 million, or 17 per cent, compared to the record $72 million
earned in the third quarter of 2000. For fiscal 2000, earnings totalled $256
million compared to $187 million in 1999, an increase of 37 per cent. The
decline in earnings from the record third quarter performance resulted from
adverse equity market conditions in the U.S., causing modest declines in assets
under management which led to lower fee income. 


- During the course of the year 2000, assets under management grew by 11 percent
despite a 10 per cent decline in the S&P 500 and a 39 per cent decline in
NASDAQ.


- MFS achieved significant market share gains in 2000 as it advanced its ranking
among the largest U.S. retail mutual fund competitors climbing from the number
eleven position at year-end 1999 to capture a number nine ranking at year-end
2000 based on long term open end mutual funds under management.


- The fourth quarter was characterized by continued strength in net sales. Net
sales of mutual and managed funds which were $7.5 billion for the quarter
declined by 11 per cent off the strong pace of the third quarter when sales
reached $8.4 billion. 


United Kingdom 

                                  Quarterly Results     Twelve Month Results 
                                4Q'00   3Q'00  4Q'99    2000           1999 
Total                              37      32     (5)    119            101 


Earnings for the U.K. in the fourth quarter were $37 million compared to a loss
of $5 million in the fourth quarter of 1999. Earnings were up $5 million or 16
per cent compared to $32 million in the third quarter of 2000. For fiscal 2000,
earnings totalled $119 million compared to $101 million in 1999, an increase of
18 per cent. 


- Improved earnings from Group Life and Health as well as pension and annuity
contributed to the stronger performance in the fourth quarter. Lower investment
income as a result of poor equity market performance adversely impacted
earnings.


- The U.K. experienced reduced revenues in the fourth quarter as the transition
to a new product set had adverse implications for business volumes and sales.
Today's announcement of plans to exit the direct sales force distribution
business will accelerate the Company's plans for cost reduction in the U.K. 


Asia 

                           Quarterly Results      Twelve Month Results 
                         4Q'00    3Q'00   4Q'99   2000            1999 
Total                        6        9      (2)    27              31  


Earnings for Asia in the fourth quarter were $6 million compared to a loss of $2
million in the same quarter of 1999. Earnings were $3 million or 33 per cent
lower than the $9 million earned in the third quarter of 2000. For fiscal 2000,
earnings totalled $27 million compared to $31 million in 1999, a decrease of 13
per cent. 




- Stronger earnings growth of $17 million in the Philippines was offset by
business development costs associated with the new Indian joint-venture
operation and currency fluctuations. 


- The Company continues to view the long-term potential of the Asian market as
an important area for future growth and current period earnings reflect the
financial impact of continuing investments designed to achieve these growth
objectives. 



MARKETING AND CORPORATE HIGHLIGHTS 

- The Company achieved tremendous growth in Annuities, Group and Individual
sales in 2000 in both Canadian and U.S operations;


- In the U.S., Sun Life Financial completed a record year for sales of its
variable annuities. Combined sales for the Futurity, Regatta and Architect line
of variable annuities were $4.4 billion for the one-year period ending December
31, 2000. This total represents a 57% growth over 1999 total sales of $2.8
billion;


- Canadian Group Retirement Services ranked top provider of group retirement
plans in Canada in annual survey conducted by Benefits Canada magazine;


- MFS assets under management grew by 11% over the year despite volatile capital
markets that resulted in declines on the S&P 500 and NASDAQ indices;


- In the U.S., Sun Life Financial has been rated £1 for overall Operations
Support among mid-size variable annuity firms in the DALBAR 2000 Financial
Professional Survey. The survey was conducted among investment firms' main
office operation managers.



SUN LIFE FINANCIAL OF CANADA

With significant operations in Canada, the United States, the United Kingdom and
Asia for over a century and with a growing range of businesses and offices in 13
key markets around the world, Sun Life Financial of Canada is a global force in
the international financial services industry today. 

The Sun Life Financial of Canada group of companies, and its partners, provide a
wide range of savings, retirement, pension, and life and health insurance
products and services to individuals and corporate customers in Canada, the
United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia,
India, Bermuda and Chile. Tracing its roots back to 1871, Sun Life Financial of
Canada has grown to become a leading international provider of financial
services with total assets under management of $329 billion CDN at December 31,
2000. 

Sun Life Financial Services of Canada Inc. trades on the Toronto (TSE), New York
(NYSE) and Philippine (PSE) stock exchanges under the ticker symbol 'SLC', and
on the London Stock Exchange (LSE) under the ticker symbol 'SFC'. 


NOTE TO EDITORS:    All figures shown in Canadian dollars. Exchange rates used
by the Company for balance sheet purposes, as at December 31, 2000 were as
follows: 


- 1 USD = $1.50 Cdn
- 1 GBP = $2.24 Cdn 


Media contacts: 
Audrey Gouskos             Francine Cleroux
[phone]             [phone] 
 
  
 
Investor Relations contact: 
Thomas Rice
[phone]  

Web site: HYPERLINKwww.sunlife.com 





SUN LIFE FINANCIAL SERVICES OF CANADA INC.
COMPARATIVE HIGHLIGHTS - 2000 vs. 1999 
(in millions of Canadian dollars)  

                                 For three months    For Twelve months 
                                 ended Dec.31        ended Dec.31
                               2000    1999 Change   2000    1999    Change 
                                $       $     %        $       $       %   
Shareholders Net Income (1)     211     154    37     792     649     22 
Earnings 
Per Share(2)                   0.50    0.38    32    1.90    1.62     17 
Average number of shares 
outstanding                   421.7   400.1         416.2   400.1  
Return on Shareholders' 
Equity (2)                     12.9%   10.7%         12.7%   11.2%   

 Gross Sales and Deposits        
Mutual Funds                 10,562  7,777     36  45,614   38,123    20 
Managed Funds                 7,481  3,123    140  25,869   13,939    86 
Segregated Funds              2,870    995    188   8,318    4,137   101 

 Revenue               
Premium Income                2,289  2,020     13   9,113    8,022    14 
Net Investment Income           892  1,154    (23)  3,776    4,113    (8) 
Fee Income                      855    697     23   3,317    2,606    27 
Total Revenue                 4,036  3,871      4  16,206   14,741    10 
                

--------------------------------------------------------------------------------
 
                
                                     As at Dec.31          As at Dec.31    
                                    2000      1999  Change      1999    
                                      $        $      %          $   
Assets Under Management               
General Funds                      55,802    54,751   2      54,751   
Segregated Funds                   48,741    46,014   6      46,014   
                
Other Assets Under Management                
 Mutual Funds                     163,160   152,807   7     152,807   
 Managed Funds and Other           63,830    47,731  34      47,731   
Total Assets Under Management     328,533   301,303   9     301,303   
                
Total Equity               
Participating Policyholders' 
Account                                79        -                -   
Shareholders' Equity                6,618        -                -   
Policyholders' Surplus                  -    5,878            5,878   
Total Equity                        6,697    5,878            5,878   
                
MCCSR (%)(3)                          295      262              262   


NOTES:

(1)Amounts for the periods prior to Q2 2000 are on an adjusted pro forma basis
assuming the Company had become public on January 1, 1999. 

Shareholders' net income excludes earnings attributable to participating
policyholders of $10 million in 2000($1 million loss in Q4) and $68 million in
1999 ($3 million in Q4). The 1999 amounts have also been adjusted for provisions
for U.K. pension business and loss from discontinued operations, less gains on
the sale of MFS shares, totalling $553 million ($213 million in Q4). 

(2)Based on shareholders' net income. Periods prior to Q2 2000 are on an
adjusted pro forma basis as described in Note 1. 

(3)MCCSR ratio at September 30, 2000 was 290%.