CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2010

Jun. 30, 2011

Jun. 30, 2010

Revenues

Premiums and annuity considerations

$ 36,270

$ 33,178

$ 70,547

$ 68,242

Net investment income (1)

244,732

^[1]

407,618

^[1]

536,730

^[2]

851,447

^[2]

Net derivative loss (Note 5)

(135,769)

(525,715)

(107,999)

(567,165)

Net realized losses on trading investments

18,991

11,174

23,074

16,339

Other-than-temporary impairment losses (2) (Note 5)

^[3]

(71)

^[4]

(885)

^[4]

Fee and other income

157,152

120,475

305,173

236,228

Total revenues

321,376

46,730

827,454

604,206

Benefits and Expenses

Interest credited

96,279

87,428

184,155

176,811

Interest expense

11,509

9,355

22,601

26,452

Policyowner benefits

34,524

81,974

79,491

116,577

Amortization of deferred policy acquisition costs and value of business and customer renewals acquired 1

(10,649)

(424,941)

237,465

(253,232)

Other operating expenses

86,709

78,883

176,194

159,793

Total benefits and expenses

218,372

(167,301)

699,906

226,401

Income before income tax expense

103,004

214,031

127,548

377,805

Income tax expense

31,590

69,231

35,749

121,354

Net income

$ 71,414

$ 144,800

$ 91,799

$ 256,451

[1]	Net investment income includes an increase in the market value of trading fixed maturity securities of $89.2 million and $179.5 million for the three-month periods ended June 30, 2011 and 2010 respectively.
[2]	Net investment income includes an increase in market value of trading fixed maturity securities of $210.6 million and $449.9 million for the six-month periods ended June 30, 2011 and 2010, respectively.
[3]	No OTTI losses, credit or non-credit, were recorded for the three-month periods ended June 30, 2011 and 2010.
[4]	The other-than-temporary impairment (“OTTI”) losses for the six-month periods ended June 30, 2011 and 2010, represent solely credit losses. The Company incurred no non-credit OTTI losses during the six-month periods ended June 30, 2011 and 2010, as such, no non-credit OTTI losses were recognized in other comprehensive income for the periods.

Sun Life Assurance Co of Canada (U.S.) 10-Q/A