Sun Life Financial Inc. announced today that it exceeded the US$1 billion mark in U.S. variable annuity gross sales for the first five months of 2007, representing an increase of 66% over the comparable period in 2006.

In the months of April and May, the company achieved aggregate variable annuity gross sales of US$529 million.

“Sun Life’s innovative Income ON Demand annuity product, combined with the continuing execution of our distribution strategy, are fueling impressive sales growth in the United States and solidly positioning us within key retirement and demographic markets,” said Donald Stewart, CEO, Sun Life Financial, in a news release.

Sun Life also announced today that the company’s Chinese joint venture life insurance company, Sun Life Everbright Life Insurance Company, received China Insurance Regulatory Commission (CIRC) preparatory approval for Shanghai. Sales in Shanghai are expected to begin in the fourth quarter subject to CIRC operating approval. This approval brings the company’s operations in China to a total of 14 cities. China is key to Sun Life’s strategy of expanding its global distribution.

“We have consistently delivered on our ROE and earnings growth goals,” said Richard McKenney, executive vp and CFO. “Our announcements today reinforce that our diversified earnings platform will drive our growth going forward.”

These announcements were made as part of Sun Life Financial’s 2007 Investor Day.

Sun Life also announced that it has determined the next generation of its financing structure to support its U.S. universal life insurance products. The company expects reducing levels of new business strain commencing in the second quarter of 2007, with the full benefits of the solution anticipated to be realized by year-end.