##### 



Sun Life Financial announces
record operating earnings for 2003 of $1.5 billionbefore
$211 million charge for potential cost of MFS settlement

Toronto  January 29, 2004 Sun Life Financial Inc. (NYSE/TSX: SLF) today
announced record operating earnings for 2003 of more than $1.5 billion before a
$211 million after-tax provision taken to provide for the
potential cost of regulatory and other actions which may be brought
against Massachusetts Financial Services Company (MFS) related to
frequent trading in certain MFS mutual funds. Including this
charge, net income was $1.3 billion for the full year, and $206 million or 34 cents
per share for the fourth quarter ended December 31, 2003. Operating income for the fourth
quarter was a record $417 million, or 69 cents per share, up from $394 million, or
65 cents a share in the previous quarter. Operating earnings per share (EPS) for the fourth
quarter increased 19 per cent over operating EPS in the fourth quarter of 2002. EPS decreased
32 per cent to 34 cents from 50 cents per share a year ago. The financial results
presented are unaudited.

Donald A. Stewart, Chief Executive
Officer, said, The mutual fund industry in the United States is
currently under scrutiny regarding mutual fund practices. The company
has taken a charge of $211 million against earnings to provide
for the potential cost of the regulatory and other actions related to
frequent trading in certain MFS mutual funds which may
be brought against MFS. We will continue to work closely with MFS in
responding effectively to these regulatory concerns. We will take all
steps necessary to ensure that MFS remains a leader in the industry.

Turning to the companys operational performance, Stewart said, A strong
performance from our Canadian businesses contributed to the continued
improvement in earnings. These results confirmed our confidence in the
acquisition of Clarica to complement and strengthen our domestic presence and
position us for international growth. I am pleased with our successful
integration of Clarica which allowed us to serve more than one in four
Canadians and generated significant shareholder value with accretion of 26
cents a share compared with our target of 20 cents.

The competitive advantage of our fully integrated Canadian businesses, expense
reduction efforts in the U.S. and a growing Asia franchise, together with
improvements in the credit cycle and equity markets, position us for further
profitable growth in 2004. We believe the companys long-term growth momentum
remains strong. Notably, our balanced business model comprises operations
which are diversified both geographically and between wealth management and
protection businesses, providing stable long-term growth into the future, he
said.

Stewart said, As a result of our continued financial strength and positive
outlook for 2004, the Board of Directors has announced a 24 per cent increase
in the quarterly dividend to 21 cents per share.





---



##### 



Sun Life Financial / Fourth Quarter Earnings
    
    Page 2


FINANCIAL HIGHLIGHTS:



| |  | Operating EPS of 69 cents for the fourth quarter, up 19 per
cent from operating EPS of 58 cents a year earlier. EPS of 34 cents for the quarter, down 32 per cent from EPS of 50 cents for the fourth quarter of 2002.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Operating earnings for the year were $1.5 billion, up $260
million from 2002. Earnings were $1.3 billion, up
$311 million from 2002.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------



| |  | Operating Return on Equity (ROE) for the quarter was 11.8 per
cent, up 50 basis points from the previous quarter, and up 200
basis points from a year ago. ROE, based on earnings
after the MFS charge, was 5.9 per cent for the fourth quarter
and 9.2 per cent for the year.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The Clarica transaction provided accretion of 26 cents a share
for the year compared to the 20 cents targeted.
Accretion for the fourth quarter was 7 cents.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In US$, MFS operating earnings were up 95 per cent from the
fourth quarter of 2002 as equity markets improved.
|- |  | --------------------------------------------------------------------------------------------------------------



| |  | Share repurchase program resulted in the repurchase of 2 million
shares during the quarter for $75 million, bringing the total in 2003 to 18.3
million shares for $527 million. In early January 2004, Sun Life Financial announced
the continuation of the share repurchase program for 2004.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Sun Life Financial invested an additional $266 million in CI
Fund Management Inc. (CI) during the fourth quarter to maintain
a 34 per cent stake following CIs acquisitions of Assante,
Synergy and Skylon.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The impact of currency during the quarter was to lower earnings by
$35 million and revenue by $610 million.  For the year the impact on earnings was
$72 million and on revenue was $1.6 billion.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

BUSINESS HIGHLIGHTS

Canada



| |  | Group Retirement Services (GRS) ranked the #1 defined
contribution pension plan supplier in Canada in terms of assets
under administration according to the 2003 Defined Contribution
Plan Report, published by Benefits Canada magazine.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Key accomplishments in the successful integration of Clarica
operations included the conversion of data for hundreds of
thousands of policies and claims to single processing systems,
resulting in more efficient operations and a stronger platform
for growth.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Life and health sales levels in the fourth quarter of 2003 for
the Independent Career Advisors (ICA) distribution channel were
17 per cent ahead of the same period last year. The ICA
increased by 43 advisors in the fourth quarter of 2003 to
reach 4,135 by December 31, 2003 and a successful fourth
quarter campaign for retail products produced record sales
levels for this channel.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 3




| |  | The Retail and Group Benefits (GB) businesses jointly developed
Health Coverage Choice, a personal health insurance product
that offers guaranteed coverage to anyone leaving a group
benefits plan.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



U.S.



| |  | Sun Life Financial U.S. strengthened product offerings in New
York State by offering short-term disability products,
introducing a portfolio of variable universal life and
launching Sun Life Keyport Value fixed annuity and Sun Life
Masters Choice variable annuity.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Sun Life Financial merged its subsidiaries, Sun Life Assurance
Company of Canada (U.S.) and Keyport Life Insurance Company
streamlining its operating structure in the U.S.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Sun Life Financial introduced a fixed annuity product that will
be sold exclusively through Investment Services at Sovereign
Bank. The Lantern (SM) Retirement Advantage is a private
labelled fixed rate annuity with bonus options. As a long-term
investment it has the advantages of tax-deferred earnings plus
100% return of principal and offers clients a variety of
choices among term length and rate guarantee periods.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Strong Group Life & Health sales in the fourth quarter
contributed to the 22 per cent increase in sales for the year
for this division.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------

MFS



| |  | MFS recorded over US$900 million in net institutional separate
account sales for the fourth quarter of 2003 from both
corporate and plan sponsors.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Assets under management (AUM) ended the fourth quarter of 2003
at US$140 billion compared to US$113 billion a year ago, up 24
per cent.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------

Asia



| |  | Sun Life Financial was granted approval by the China Insurance
Regulatory Commission (CIRC) to begin preparing operations for
selling life insurance in Beijing with its joint venture
partner China Everbright Group Limited. Sun Life Financial
anticipates that sales for the Beijing operation will commence
in the second quarter of 2004.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Sun Life Financial Asia has successfully launched its revamped
traditional products in Hong Kong. The enhanced products and
improvements in the agency channel contributed to a 43 per cent
increase in sales in Hong Kong in the fourth quarter.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Fourth quarter sales in India were 120 per cent higher than in
the fourth quarter a year ago. The agency force grew to over 9,000
with representation in every major urban centre.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 4


EARNINGS AND PROFITABILITY

FINANCIAL SUMMARY

Unaudited




Quarterly Results
    

Full
Year4Q'03
    
    3Q'03
    
    2Q'03
    
    1Q'03
    
    4Q'02
    
    2003
    
    2002Revenues ($mm)
    
    
    5,437
    
    
    
    5,282
    
    
    
    5,579
    
    
    
    5,758
    
    
    
    6,028
    
    
    
    22,056
    
    
    
    23,101Shareholders Net Income ($mm)
    
    
    206
    
    
    
    394
    
    
    
    366
    
    
    
    343
    
    
    
    310
    
    
    
    1,309
    
    
    
    998Operating Earnings ($mm)
    
    
    417
    
    
    
    394
    
    
    
    366
    
    
    
    343
    
    
    
    361
    
    
    
    1,520
    
    
    
    1,260Earnings Per Share (EPS) ($)
    
    
    0.34
    
    
    
    0.65
    
    
    
    0.60
    
    
    
    0.56
    
    
    
    0.50
    
    
    
    2.15
    
    
    
    1.84Operating EPS ($)
    
    
    0.69
    
    
    
    0.65
    
    
    
    0.60
    
    
    
    0.56
    
    
    
    0.58
    
    
    
    2.50
    
    
    
    2.32Return on Equity (ROE) (%)
    
    
    5.9
    
    
    
    11.3
    
    
    
    10.3
    
    
    
    9.3
    
    
    
    8.4
    
    
    
    9.2
    
    
    
    8.5Operating ROE (%)
    
    
    11.8
    
    
    
    11.3
    
    
    
    10.3
    
    
    
    9.3
    
    
    
    9.8
    
    
    
    10.6
    
    
    
    10.7Average Shares Outstanding (mm)
    
    
    601.4
    
    
    
    603.3
    
    
    
    610.3
    
    
    
    616.8
    
    
    
    618.4
    
    
    
    607.9
    
    
    
    542.6S&P 500 Index (daily average)
    
    
    1,056
    
    
    
    1,000
    
    
    
    938
    
    
    
    861
    
    
    
    886
    
    
    
    965
    
    
    
    994Operating earnings, operating EPS and operating ROE are non-GAAP measures and have no standardized
definition under GAAP. They are presented to facilitate the comparison of quarterly and year-to-date earnings
and may not be comparable to similar measures presented by other issuers. Operating earnings for 4Q03
exclude the charge for potential costs of regulatory and other actions brought against MFS of $211 million. A reconciliation from shareholders net
income to operating earnings for each quarter of 2002 is contained in the MD&A for that period. Financial results not specifically referred to as operating have been determined in accordance with GAAP.


Paul Derksen, Executive Vice-President and Chief Financial Officer, said,
Operating earnings for the quarter were up $56 million compared to the same
period last year, despite the adverse effect of currency which impacted fourth
quarter operating earnings by $35 million or 6 cents per share. The
significant improvement in operating ROE in the fourth quarter of 2003 compared
to the fourth quarter of 2002 reflected the higher earnings and the cumulative
impact of the share repurchase program for 2003.

With the improved profitability of all our operations generating significant
levels of capital, we will continue to focus on the effective
management of capital
which drove improvements in operating ROE in 2003, he said.





---



##### 



Sun Life Financial / Fourth Quarter Earnings
    
    Page 5


PERFORMANCE BY OPERATING UNIT

Sun Life Financial Canada

Quarterly Results
    
    Full Year4Q'03
    
    3Q'03
    
    2Q'03
    
    1Q'03
    
    4Q'02
    
    2003
    
    2002Revenues ($mm)
    
    
    2,265
    
    
    
    2,109
    
    
    
    2,112
    
    
    
    2,150
    
    
    
    2,199
    
    
    
    8,636
    
    
    
    6,563Net Income ($mm)Retail Insurance
    
    
    68
    
    
    
    61
    
    
    
    68
    
    
    
    49
    
    
    
    57
    
    
    
    246
    
    
    
    140Group Benefits
    
    
    57
    
    
    
    50
    
    
    
    64
    
    
    
    62
    
    
    
    61
    
    
    
    233
    
    
    
    157Reinsurance
    
    
    14
    
    
    
    10
    
    
    
    17
    
    
    
    15
    
    
    
    7
    
    
    
    56
    
    
    
    32Group Retirement Services
    
    
    24
    
    
    
    23
    
    
    
    22
    
    
    
    19
    
    
    
    18
    
    
    
    88
    
    
    
    57Retail & Other Wealth Management *
    
    
    60
    
    
    
    49
    
    
    
    38
    
    
    
    41
    
    
    
    38
    
    
    
    188
    
    
    
    97Investment Portfolio & Other
    
    
    (2
    )
    
    
    13
    
    
    
    9
    
    
    
    (2
    )
    
    
    4
    
    
    
    18
    
    
    
    30Total
    
    
    221
    
    
    
    206
    
    
    
    218
    
    
    
    184
    
    
    
    185
    
    
    
    829
    
    
    
    513ROE (%)
    
    
    12.4
    
    
    
    12.0
    
    
    
    12.7
    
    
    
    10.7
    
    
    
    10.7
    
    
    
    11.9
    
    
    
    11.3* Includes earnings from the
equity ownership position of CI
of
    
    
    16
    
    
    
    17
    
    
    
    9
    
    
    
    14
    
    
    
    13
    
    
    
    56
    
    
    
    21


In the fourth quarter of 2003, Sun Life Financial Canadas earnings increased
19 per cent over the fourth quarter of 2002 due to enhanced pricing for
segregated funds, improved credit experience, better mortality experience and
the benefits of integrating Clarica.

Earnings for 2003 increased over 2002 mainly as a result of the Clarica
acquisition in May 2002, the synergies arising from the integration of Clarica
and favourable mortality and morbidity during the year in Group Benefits.



| |  | Retail Insurance earnings improved compared to the fourth quarter of
2002, due to the benefit of synergies arising from the Clarica
acquisition and better investment experience.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Fourth quarter earnings for Group Benefits were lower than in the
fourth quarter of 2002 due to less favourable morbidity experience
partially offset by stronger mortality experience during the quarter.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Reinsurance earnings were higher in the fourth quarter of 2003
compared with the fourth quarter of 2002 and the third quarter of 2003
due to favourable mortality, partially offset by the weakening U.S.
dollar.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Improved investment gains from stronger market performance and
improved mortality experience led to higher Group Retirement Services
earnings in the fourth quarter of 2003 over the fourth quarter of
2002.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Retail & Other Wealth Management earnings increased by 58 per cent
over the fourth quarter of 2002 as a result of improved pricing for
segregated fund guarantees and better credit and market conditions.
Earnings from the investment in CI increased over the fourth quarter
of 2002 due to the impact of improved equity markets and Sun Life Financials increase in equity ownership
during 2003 to 34 per cent from 31.7 per cent.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 6


Sun Life Financial U.S.

Quarterly
Results
    

Full
Year4Q'03
    
    3Q'03
    
    2Q'03
    
    1Q'03
    
    4Q'02
    
    2003
    
    2002Revenues (US$mm)
    
    
    1,654
    
    
    
    1,622
    
    
    
    1,878
    
    
    
    1,733
    
    
    
    1,757
    
    
    
    6,887
    
    
    
    7,561Net Income (US$mm)Annuities
    
    
    32
    
    
    
    48
    
    
    
    20
    
    
    
    16
    
    
    
    37
    
    
    
    116
    
    
    
    172Individual Life
    
    
    20
    
    
    
    21
    
    
    
    20
    
    
    
    16
    
    
    
    20
    
    
    
    77
    
    
    
    75Group Life & Health
    
    
    9
    
    
    
    6
    
    
    
    9
    
    
    
    6
    
    
    
    11
    
    
    
    30
    
    
    
    31Investment Portfolio & Other
    
    
    7
    
    
    
    (5
    )
    
    
    (5
    )
    
    
    (2
    )
    
    
    (4
    )
    
    
    (5
    )
    
    
    (48
    )Clarica U.S. (discontinued)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8Total (US$mm)
    
    
    68
    
    
    
    70
    
    
    
    44
    
    
    
    36
    
    
    
    64
    
    
    
    218
    
    
    
    238Total ( C$mm)
    
    
    89
    
    
    
    97
    
    
    
    63
    
    
    
    54
    
    
    
    100
    
    
    
    303
    
    
    
    374ROE (%)
    
    
    9.1
    
    
    
    9.6
    
    
    
    6.0
    
    
    
    4.8
    
    
    
    7.3
    
    
    
    7.3
    
    
    
    7.3


The appreciation of the Canadian dollar against the U.S. dollar reduced
earnings in Sun Life Financial U.S. by CDN$17 million in the fourth quarter of
2003 compared to the fourth quarter of 2002 and by CDN$36 million for the full
year.

In U.S. dollars, earnings for Sun Life Financial U.S. decreased three per cent
in the fourth quarter compared to the third quarter of 2003. The decrease was
primarily due to the positive impact in the third quarter of 2003 of expense
changes on actuarial liabilities. Other changes included the positive impact
of improving equity markets partially offset by higher bond provisions in the
fourth quarter of 2003. Bond provisions, after-tax, were US$5 million higher in
the fourth quarter of 2003 than in the third quarter of 2003.

Earnings increased US$4 million compared to the fourth quarter of 2002. For the
full year, earnings from continuing operations were lower than the previous
year as the impact of spread compression exceeded the benefits of lower bond
provisions for the twelve-month period.



| |  | The Annuities division earnings decreased US$16 million compared to the
third quarter of 2003, as third quarter results benefited from the
positive impact of expense
changes on actuarial liabilities. The improvements in equity markets at December 31, 2003 would have allowed the company
to lower the reserves
held for guaranteed minimum death benefits (GMDB). However, the reserves were not
released in order to provide additional protection in the event of a
further decline in equity markets.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Earnings in the annuity division decreased compared to the fourth quarter of
2002 due to the impact of spread compression, partially offset by lower new
business strain and improving equity markets in 2003.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Group Life & Health earnings increased from the third quarter of 2003 due
to improved long-term disability (LTD) claims experience and the
impact of reserve increases recorded in the third quarter of 2003
resulting from expense changes. Annualized sales premiums were up 53 per
cent in the fourth quarter of 2003 compared to fourth quarter of 2002,
which contributed to a 22 per cent annual sales increase in all of 2003.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 7


MFS Investment Management



Quarterly Results
    
    Year to Date4Q03
    
    3Q03
    
    2Q03
    
    1Q03
    
    4Q02
    
    2003
    
    2002Revenues (US$mm)
    
    
    325
    
    
    
    317
    
    
    
    294
    
    
    
    270
    
    
    
    281
    
    
    
    1,206
    
    
    
    1,260Net Income/(Loss) (US$mm)
    
    
    (123
    )
    
    
    36
    
    
    
    30
    
    
    
    18
    
    
    
    19
    
    
    
    (39
    )
    
    
    111Operating Earnings (US$mm)
    
    
    37
    
    
    
    36
    
    
    
    30
    
    
    
    18
    
    
    
    19
    
    
    
    121
    
    
    
    111Net Income/(Loss) (C$mm)
    
    
    (162
    )
    
    
    49
    
    
    
    42
    
    
    
    28
    
    
    
    36
    
    
    
    (43
    )
    
    
    174Operating Earnings (C$mm)
    
    
    49
    
    
    
    49
    
    
    
    42
    
    
    
    28
    
    
    
    36
    
    
    
    168
    
    
    
    174Operating ROE (%)
    
    
    66.6
    
    
    
    78.6
    
    
    
    72.3
    
    
    
    40.1
    
    
    
    36.0
    
    
    
    63.7
    
    
    
    46.2Average Net Assets (US$B)
    
    
    135
    
    
    
    129
    
    
    
    122
    
    
    
    112
    
    
    
    112
    
    
    
    125
    
    
    
    123Assets Under Management (US$B)
    
    
    140
    
    
    
    129
    
    
    
    128
    
    
    
    112
    
    
    
    113
    
    
    
    140
    
    
    
    113Net New Sales (US$B)
    
    
    0.8
    
    
    
    (0.8
    )
    
    
    2.9
    
    
    
    1.3
    
    
    
    0.9
    
    
    
    4.2
    
    
    
    3.2Market Movement (US$B)
    
    
    10.8
    
    
    
    2.3
    
    
    
    12.6
    
    
    
    (2.4
    )
    
    
    4.4
    
    
    
    23.3
    
    
    
    (27.9
    )S&P 500 Index (daily average)
    
    
    1,056
    
    
    
    1,000
    
    
    
    938
    
    
    
    861
    
    
    
    886
    
    
    
    965
    
    
    
    994


The company took an after-tax charge
of CDN$211 million in the fourth quarter of 2003 to provide for
the potential cost of regulatory and other actions which may be
brought against MFS including a potential settlement with the U.S.
Securities and Exchange Commission, the Office of the Attorney
General of New York and the New Hampshire Bureau of Securities
Regulation related to frequent trading in certain MFS mutual funds. Including this charge, MFS Investment Management (MFS)
had a net loss of CDN$162 million for the fourth quarter of 2003
and a loss of CDN$43 million for the year. Without this charge,
operating earnings were CDN$49 million in the quarter and
CDN$168 million for the year.

The mutual fund industry in the United States is subject to expanding industry-wide regulatory investigations into its business practices.
MFS is continuing to cooperate in these ongoing investigations.

The appreciation of the Canadian dollar against the U.S. dollar reduced
operating earnings for MFS by CDN$9 million in the fourth quarter of 2003
compared to the fourth quarter of 2002 and by CDN$20 million for the full year.

In U.S. dollars, MFS contribution to Sun Life Financials operating earnings
in the fourth quarter of 2003 increased 95 per cent from the fourth quarter of
2002. A strong recovery in equity markets combined with continued expense
controls drove the earnings growth. The S&P 500 Index daily average of 1,056 in
the fourth quarter, was up 19 per cent compared to the fourth quarter of 2002,
while average net assets under management (ANA) were up 21 per cent in U.S.
dollars.

Operating earnings for 2003 were up US$10 million or nine per cent on slightly
lower revenue, reflecting expense savings from reduced staffing levels and
lower sales-related costs.

The trend in operating earnings in 2003 continued to be positive. MFS earnings
grew 3 per cent and AUM grew by 8.5 per cent compared to the third quarter
of 2003.



---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 8




| |  | AUM ended the fourth quarter of 2003 at US$140 billion compared to
US$113 billion a year ago.
|- |  | ---------------------------------------------------------------------------------------------



| |  | Net sales were positive in the fourth quarter at US$0.8 billion and
for the full year were US$4.2 billion. Positive flows in institutional
products, managed accounts and insurance products were partially
offset by net outflows in U.S. retail mutual funds.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Based on Lipper data, 61 per cent of MFS equity funds and 87 per cent of its
fixed income funds were in the top two quartiles for three-year performance
through December 31, 2003.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 9


Sun Life Financial Asia



Quarterly Results
    
    Year to Date4Q'03
    
    3Q'03
    
    2Q'03
    
    1Q'03
    
    4Q'02
    
    2003
    
    2002Revenues ($mm)
    
    
    158
    
    
    
    144
    
    
    
    140
    
    
    
    145
    
    
    
    192
    
    
    
    587
    
    
    
    661Net Income/(Loss) ($mm)Philippine Operations
    
    
    15
    
    
    
    13
    
    
    
    11
    
    
    
    8
    
    
    
    11
    
    
    
    47
    
    
    
    41Other Asian Operations
    
    
    (2
    )
    
    
    (2
    )
    
    
    (5
    )
    
    
    (1
    )
    
    
    1
    
    
    
    (10
    )
    
    
    (17
    )Total
    
    
    13
    
    
    
    11
    
    
    
    6
    
    
    
    7
    
    
    
    12
    
    
    
    37
    
    
    
    24ROE (%)
    
    
    11.5
    
    
    
    10.0
    
    
    
    5.9
    
    
    
    5.6
    
    
    
    9.4
    
    
    
    7.8
    
    
    
    4.8


Individual life sales for Sun Life Financial Asia in the fourth quarter of 2003
were 37 per cent above third quarter levels, with all business units
registering double-digit growth reflecting improvements in agent productivity
and the product portfolio. Full year sales in 2003 were up 35 per cent over
2002 before currency effects. The sales growth is attributed mainly to
expansion in distribution reach and improvement in agent productivity in joint
venture companies in India and China.

Earnings for the fourth quarter of 2003 were $2 million above the third
quarter. Full year earnings of $37 million in 2003 were $13 million higher than
in 2002, primarily due to effective expense management and business growth,
partially offset by the strengthening of the Canadian dollar. In original
currency, earnings for the full year in Asia increased by 83 per cent, with the
strengthening of the Canadian dollar relative to the local currencies reducing
net income by CDN$7 million.





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 10


Sun Life Financial U.K.

Quarterly Results
    
    Full Year4Q03
    
    3Q03
    
    2Q03
    
    1Q03
    
    4Q02
    
    2003
    
    2002Net Income (£mm)
    
    
    21
    
    
    
    28
    
    
    
    19
    
    
    
    21
    
    
    
    19
    
    
    
    89
    
    
    
    81Net Income (C$mm)
    
    
    47
    
    
    
    63
    
    
    
    43
    
    
    
    50
    
    
    
    48
    
    
    
    203
    
    
    
    190ROE (%)
    
    
    20.4
    
    
    
    27.9
    
    
    
    18.3
    
    
    
    19.5
    
    
    
    20.4
    
    
    
    21.5
    
    
    
    21.9


The appreciation of the Canadian dollar against the GB pound reduced earnings
in Sun Life Financial U.K. by CDN$5 million in the fourth quarter of 2003
compared to the fourth quarter of 2002 and by CDN$6 million for the full year.

Sun Life Financial U.K. fourth quarter 2003 earnings increased £2 million from
fourth quarter 2002, reflecting the effect of reduced operating expenses offset
by reduced earnings in the U.K. group income protection business which was sold
in the first quarter of 2003, and lower favourable tax adjustments.

The decrease in earnings compared to the third quarter of 2003 was primarily
due to increased provisions, partially offset by reduced maintenance expenses
and improved group life claims experience.

Despite the sale of the U.K. group insurance business, Sun Life Financial U.K.
full year 2003 earnings increased over the comparable period in 2002, primarily
due to the impact of reduced operating expenses. Earnings in 2002 were
negatively affected by the decline in equity markets.





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 11


Corporate Capital

Corporate Capital refers to investment income, expenses, capital and other
items not allocated to Sun Life Financials other operating units, and the
results of the run-off reinsurance business.

Quarterly Results
    
    Full Year4Q03
    
    3Q03
    
    2Q03
    
    1Q03
    
    4Q02
    
    2003
    
    2002Net Income/(Loss) ($mm)
    
    
    (2
    )
    
    
    (32
    )
    
    
    (6
    )
    
    
    20
    
    
    
    (65
    )
    
    
    (20
    )
    
    
    (277
    )


Fourth quarter Corporate Capital results improved $63 million from a year ago
primarily due to the inclusion in the fourth quarter of 2002 of a loss from the
sale of Clarica U.S., Inc. (Clarica U.S.). The improvements in equity markets at December 31, 2003 would have allowed the company to set lower reserves held for guaranteed minimum income benefits (GMIB). However, the reserves were not released in order to provide additional protection in the event of a future decline in equity markets.

Full year 2003 results improved by $257 million over 2002 results, which
included a $217 million restructuring charge.





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 12


ADDITIONAL FINANCIAL DISCLOSURE

Revenue

Total revenue in the fourth quarter of
2003 was $5.4 billion, a decrease of
$591 million, or 10 per cent, compared to $6.0 billion in the quarter ending
December 31, 2002. The decline in revenues was primarily due to weaker foreign
currencies relative to the Canadian dollar, which had the effect of reducing
reported revenues by approximately $610 million. Revenues in
2003 were $1.0 billion lower than 2002 with increases from the Clarica acquisition more than
offset by lower U.S. annuity revenues, lower Sun Life Financial U.K. revenues
and a decline of approximately $1.6 billion due to currency fluctuations.

Fourth quarter 2003 annuity premiums were $394 million lower than the fourth
quarter of 2002, primarily due to weaker foreign currencies relative to the
Canadian dollar, which had the effect of reducing reported premiums by
approximately $140 million, and lower sales of U.S. fixed annuities. Life and
health premiums were $181 million lower than the fourth quarter of 2002 with
strength in U.S. Universal Life more than offset by lower Bank Owned Life
Insurance (BOLI) sales and offshore sales.

Investment income of $1.4 billion
in the fourth quarter of 2003 was $6 million lower than
in the fourth quarter of 2002 as a decrease of approximately $140 million due to the weakening of foreign
currencies against the Canadian dollar was partially offset by the
impact of improved credit conditions.

Fee income of $714 million in the fourth quarter of 2003 was $10 million lower
than fourth quarter of 2002 as the positive gains in MFS and other fee based
product lines, reflecting a rebound in the equity markets, were more than
offset by a decline of $112 million due to the strengthening of the Canadian
dollar against foreign currencies.

Assets Under Management

At December 31, 2003, AUM were
$359.0 billion, an increase of $10.5 billion, or
three per cent compared to $348.5 billion at September 30, 2003. The increase
in AUM during the quarter was primarily the result of:



| | (i) |  | net sales of mutual, managed and segregated funds of $1.9
billion; and
| | --- |  | ----------------------------------------------------------------------



| | (ii) |  | market value increases of $18.5 billion; partially offset by
| | ---- |  | ------------------------------------------------------------



| | (iii) |  | unfavourable currency fluctuations of $10.5 billion.
| | ----- |  | ----------------------------------------------------

AUM exclude Sun Life Financials pro rata share of the $47.6 billion of assets
managed by CI as at December 31, 2003.

On a year-over-year basis, AUM
decreased by $1.6 billion over the $360.6
billion at December 31, 2002. The year-over-year change in AUM was primarily
the result of:



| | (i) |  | unfavourable changes of $49.2 billion due to currency
fluctuations; and
| | --- |  | -----------------------------------------------------------------------



| | (ii) |  | the sale of Clarica U.S. which had assets of $5.3 billion at
December 31, 2002; partially offset by
| | ---- |  | ---------------------------------------------------------------------------------------------------



| | (iii) |  | net sales of mutual, managed and segregated funds of $9.6
billion;
| | ----- |  | ------------------------------------------------------------------



| | (iv) |  | market value increases of $40.6 million; and
| | ---- |  | --------------------------------------------



| | (v) |  | business growth in general funds.
| | --- |  | ---------------------------------





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 13


Changes in the Balance Sheet and Shareholders Equity

Total general fund assets of
$109.2 billion at December 31, 2003 were $1.5 billion
lower than the September 30, 2003 balance of $110.7 billion. The
increase in general fund assets due to business growth was more than offset by
a decline of $2.0 billion from the strengthening of the Canadian dollar.

Total general fund assets at the end of the fourth quarter of 2003 were down
$14.2 billion from the end of the fourth quarter of 2002, primarily due to the
strengthening of the Canadian dollar, which reduced asset values by $11.7
billion, and the sale of Clarica U.S., which had assets of $5.3 billion at
December 31, 2002.

Actuarial and other policyholder liabilities of $77.4 billion at December 31,
2003 were $1.0 billion lower than at the end of the previous quarter. An
increase primarily as a result of lower surrenders was more than offset by the
decline of $1.5 billion due to currency fluctuations. Compared to December 31,
2002, actuarial liabilities declined $12.6 billion. General business growth was
more than offset by the impact of currency fluctuations of $8.8 billion and the
sale of Clarica U.S. and the U.K. group insurance business, which had actuarial
liabilities of $4.3 billion and $395 million, respectively, at December 31,
2002.

Shareholders equity was
$13.9 billion at December 31, 2003, down $181 million
from September 30, 2003. Fourth quarter shareholders net income, before stock
option costs of $2 million, contributed $208 million, which was partially
offset by dividend payments of $102 million in the quarter. Purchase and
cancellation of common shares reduced shareholders equity by $75 million.
The strengthening Canadian dollar decreased shareholders equity
by $219 million.

Share Repurchase Program

As part of the share repurchase program, Sun Life Financial purchased and
cancelled 2.4 million of its common shares during the fourth quarter of 2003. As
of December 31, 2003, it had 600 million common shares issued and outstanding.

Other Matters

Sun Life Financial will be reporting sources of earnings in its analysts
conference call on January 29, 2004. The information will also be available at
www.sunlife.com.

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
1865, 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, China and Bermuda. As of December 31,
2003, the Sun Life Financial group of companies had total assets under
management of CDN$359.0 billion.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under ticker symbol SLF.





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 14


Some of the statements contained in this press release, including those
relating to the Companys strategies and other statements that are
predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as expects, anticipates,
intends, plans, believes, estimates or similar expressions, are
forward-looking statements within the meaning of securities laws.
Forward-looking statements include, without limitation, the information
concerning possible or assumed future results of operations of the
Company. These statements are not historical facts but instead represent
only the Companys expectations, estimates and projections regarding
future events.

The forward-looking statements contained in this press release are not
guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. The future results and
stockholder value of the Company may differ materially from those
expressed in these forward-looking statements due to, among other
factors, the matters set out under Risk Factors in the Companys Annual
Information Form and the factors detailed in its other filings with
Canadian and U.S. securities regulators, including its annual and interim
managements discussion and analysis, and the annual and interim
financial statements and accompanying notes. These documents are
available for review at www.sedar.com.

Factors that could cause actual results to differ materially from expectations
include, but are not limited to: external factors, including changes in equity
market performance, interest rates, currency exchange rates and government
regulations; the amount and composition of assets under management; the
management of product pricing; mortality and morbidity rates; expense
management; the maintenance of spreads between credited rates and investment
returns; surrender and lapse rates; the management of market and credit risks;
the management of risks inherent in products with guaranteed benefit options;
and the results of regulatory investigations into the practices of the mutual
fund, insurance, annuity and financial product distribution industries in the United States, including private legal proceedings and
class actions that have been commenced or threatened in connection with these
practices. The Company does not undertake any obligation to update or release
any revisions to these forward-looking statements to reflect events or
circumstances after the date of this presentation or to reflect the occurrence
of unanticipated events, except as required by law.

-30-

Note to Editors: All figures shown in Canadian dollars unless otherwise noted.

Media Contact:
Nicholas Thomas
Director, Media and External Relations
416-979-6070nicholas.thomas@sunlife.com

Investor Relations Contact:
Tom Reid
Vice-President, Investor Relations
416-204-8163investor.relations@sunlife.com





---



##### 



Sun Life Financial / Fourth
Quarter Earnings
    
    Page 15


SUN LIFE FINANCIAL INC.

COMPARATIVE HIGHLIGHTS  2003 vs.
2002


(unaudited)


(in millions of Canadian dollars unless indicated
otherwise)


|                                     |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |     |  
|------------------------------------ | -------------------------- | ------------------------------ |  | ------------------------------- |  | -------- |  | ----- |  | ---- |  | -------- | - |  |  | ------ |  |  |  | ------ |  |  |  | --- | -
|                                     |                            |                                |  |                                
|                                     |                            | For Three Months Ended Dec. 31 |  | For Twelve Months Ended Dec. 31
|                                     |                            |                                |  |                                
|                                     |                            | 2003                           |  | 2002                            |  | % Change |  | 2003  |  | 2002 |  | % Change
|                                     |                            |                                |  |                                 |  |          |  |       |  |      |  |         
|Shareholders Net Income             |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    
|                                     |  Operating Earnings       |                                |  | 417                             |  |          |  | 361   |  |      |  | 16       |   |  |  | 1,520  |  |  |  | 1,260  |  |  |  | 21  |  
|                                     |  Reported                 |                                |  | 206                             |  |          |  | 310   |  |      |  | (34      | ) |  |  | 1,309  |  |  |  | 998    |  |  |  | 31  |  
|Basic Earnings Per Share (dollars)   |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    
|                                     |  Operating Earnings       |                                |  | 0.69                            |  |          |  | 0.58  |  |      |  | 19       |   |  |  | 2.50   |  |  |  | 2.32   |  |  |  | 8   |  
|                                     |  Reported                 |                                |  | 0.34                            |  |          |  | 0.50  |  |      |  | (32      | ) |  |  | 2.15   |  |  |  | 1.84   |  |  |  | 17  |  
|Diluted Earnings Per Share (dollars) |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    
|                                     |  Operating Earnings       |                                |  | 0.69                            |  |          |  | 0.58  |  |      |  | 19       |   |  |  | 2.50   |  |  |  | 2.32   |  |  |  | 8   |  
|                                     |  Reported                 |                                |  | 0.34                            |  |          |  | 0.50  |  |      |  | (32      | ) |  |  | 2.15   |  |  |  | 1.83   |  |  |  | 17  |  
|Shares Outstanding (millions)        |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    
|                                     |  End of Period            |                                |  | 600.0                           |  |          |  | 618.4 |  |      |  |          |   |  |  | 600.0  |  |  |  | 618.4  |  |  |  |     |  
|                                     |  Basic Weighted Average   |                                |  | 601.4                           |  |          |  | 618.4 |  |      |  |          |   |  |  | 607.9  |  |  |  | 542.6  |  |  |  |     |  
|                                     |  Diluted Weighted Average |                                |  | 601.8                           |  |          |  | 618.4 |  |      |  |          |   |  |  | 607.9  |  |  |  | 542.8  |  |  |  |     |  
|Return on Shareholders Equity       |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    
|                                     |  Operating Earnings       |                                |  | 11.8%                           |  |          |  | 9.8%  |  |      |  |          |   |  |  | 10.6%  |  |  |  | 10.7%  |  |  |  |     |  
|                                     |  Reported                 |                                |  | 5.9%                            |  |          |  | 8.4%  |  |      |  |          |   |  |  | 9.2%   |  |  |  | 8.5%   |  |  |  |     |  
|Gross Sales and Deposits             |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    
|                                     | Mutual Funds               |                                |  | 5,679                           |  |          |  | 7,084 |  |      |  | (20      | ) |  |  | 26,970 |  |  |  | 31,668 |  |  |  | (15 | )
|                                     | Managed Funds              |                                |  | 6,005                           |  |          |  | 8,278 |  |      |  | (27      | ) |  |  | 25,202 |  |  |  | 29,683 |  |  |  | (15 | )
|                                     | Segregated Funds           |                                |  | 1,747                           |  |          |  | 2,329 |  |      |  | (25      | ) |  |  | 5,968  |  |  |  | 6,642  |  |  |  | (10 | )
|Revenue                              |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    
|                                     | Premium Income             |                                |  | 3,278                           |  |          |  | 3,853 |  |      |  | (15      | ) |  |  | 13,543 |  |  |  | 14,875 |  |  |  | (9  | )
|                                     | Net Investment Income      |                                |  | 1,445                           |  |          |  | 1,451 |  |      |  | (0       | ) |  |  | 5,703  |  |  |  | 5,131  |  |  |  | 11  |  
|                                     | Fee Income                 |                                |  | 714                             |  |          |  | 724   |  |      |  | (1       | ) |  |  | 2,810  |  |  |  | 3,095  |  |  |  | (9  | )
|                                     |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    
|                                     | Total Revenue              |                                |  | 5,437                           |  |          |  | 6,028 |  |      |  | (10      | ) |  |  | 22,056 |  |  |  | 23,101 |  |  |  | (5  | )
|                                     |                            |                                |  |                                 |  |          |  |       |  |      |  |          |   |  |  |        |  |  |  |        |  |  |  |    

| |  | 
| |  | 
|

|                        |                                      |                         |  |         |         |          |  |         |         |  |  |     |    |   | 
|----------------------- | ------------------------------------ | ----------------------- |  | ------- | ------- | -------- |  | ------- | ------- |  |  | --- | -- | - | 
|                        |                                      |                        
|                        |                                      | As at December 31      
|                        |                                      |                        
|                        |                                      | 2003                    |  | 2002    |         | % Change
|                        |                                      |                         |  |         |         |         
|Assets Under Management |                                      |                         |  |         |         |          |  |         |         |  |  |    
|                        | General Funds                        |                         |  | 109,209 |         |          |  | 123,452 |         |  |  | (12 | ) 
|                        | Segregated Funds                     |                         |  | 54,086  |         |          |  | 52,755  |         |  |  | 3   |   
|                        | Other Assets Under Management        |                         |  |         |         |          |  |         |         |  |  |     |   
|                        |                                      | Mutual Funds            |  |         | 111,676 |          |  |         | 116,911 |  |  |     | (4 | )
|                        |                                      | Managed Funds and Other |  |         | 84,053  |          |  |         | 67,496  |  |  |     | 25 |  
|                        |                                      |                         |  |         |         |          |  |         |         |  |  |    
|                        | Total Assets Under Management        |                         |  | 359,024 |         |          |  | 360,614 |         |  |  | (0  | ) 
|                        |                                      |                         |  |         |         |          |  |         |         |  |  |    
|Total Equity            |                                      |                         |  |         |         |          |  |         |         |  |  |    
|                        | Participating Policyholders Account |                         |  | 67      |         |          |  | 76      |         |  |  |     |   
|                        | Shareholders Equity                 |                         |  | 13,909  |         |          |  | 14,833  |         |  |  |     |   
|                        |                                      |                         |  |         |         |          |  |         |         |  |  |    
|                        | Total Equity                         |                         |  | 13,976  |         |          |  | 14,909  |         |  |  |     |   
|                        |                                      |                         |  |         |         |          |  |         |         |  |  |    

| |  | 
| |  | 
|

|               |                        |                        |  |                         |  |       |  |       |  |      
|-------------- | ---------------------- | ---------------------- |  | ----------------------- |  | ----- |  | ----- |  | -----
|               |                        |                        |  |                        
|               |                        | For Three Months Ended |  | For Twelve Months Ended
|               |                        | Dec. 31                |  | Dec. 31                
|               |                        |                        |  |                        
|               |                        | 2003                   |  | 2002                    |  | 2003  |  | 2002 
|               |                        |                        |  |                         |  |       |  |      
|Exchange Rates |                        |                        |  |                         |  |       |  |      
|               | Income Statement Rates |                        |  |                         |  |       |  |       | 
|               |                        | U.S. Dollar            |  | 1.316                   |  | 1.569 |  | 1.402 |  | 1.570
|               |                        | U.K. Pound             |  | 2.241                   |  | 2.464 |  | 2.287 |  | 2.357
|               | Balance Sheet Rates    |                        |  |                         |  |       |  |       | 
|               |                        | U.S. Dollar            |  | 1.290                   |  | 1.580 |  | 1.290 |  | 1.580
|               |                        | U.K. Pound             |  | 2.300                   |  | 2.530 |  | 2.300 |  | 2.530