<PAGE> 1
As filed with the Securities and Exchange Commission.
'33 Act File No. 333-53023
================================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 8 [X]
and
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940 [ ]
NATIONWIDE VARIABLE ACCOUNT-9
(Exact Name of Registrant)
NATIONWIDE LIFE INSURANCE COMPANY
(Name of Depositor)
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code: (614) 249-7111
PATRICIA R. HATLER, SECRETARY, ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215
(Name and Address of Agent for Service)
This Post-Effective Amendment amends the Registration Statement in respect of
the Prospectus.
[ ] immediately upon filing to paragraph (b) of Rule 485
[X] on January 2, 2001 pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a) of Rule 485
[ ] on (date) pursuant to paragraph (a) of Rule 485
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
================================================================================
<PAGE> 2
NATIONWIDE VARIABLE ACCOUNT-9
REFERENCE TO ITEMS REQUIRED BY FORM N-4
<TABLE>
<CAPTION>
<S> <C>
N-4 ITEM CAPTION
PART A INFORMATION REQUIRED IN A PROSPECTUS
Item 1. Cover Page.................................................................................Cover Page
Item 2. Definitions.................................................................Glossary of Special Terms
Item 3. Synopsis or Highlights......................................................Synopsis of the Contracts
Item 4. Condensed Financial Information.......................................Condensed Financial Information
Item 5. General Description of Registrant, Depositor, and Portfolio
Companies ..........................Nationwide Life Insurance Company; Investing in the Contract
Item 6. Deductions and Expenses...............................................Standard Charges and Deductions
Item 7. General Description of Variable
Annuity Contracts.......................................Contract Ownership; Operation of the Contract
Item 8. Annuity Period...............................................................Annuitizing the Contract
Item 9. Death Benefit and Distributions........................................................Death Benefits
Item 10. Purchases and Contract Value................................................Operation of the Contract
Item 11. Redemptions....................................................................Surrender (Redemption)
Item 12. Taxes ....................................................................Federal Tax Considerations
Item 13. Legal Proceedings...................................................................Legal Proceedings
Item 14. Table of Contents of the Statement of Additional
Information.........................Table of Contents of the Statement of Additional Information
PART B INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
Item 15. Cover Page.................................................................................Cover Page
Item 16. Table of Contents...................................................................Table of Contents
Item 17. General Information and History.......................................General Information and History
Item 18. Services.....................................................................................Services
Item 19. Purchase of Securities Being Offered.............................Purchase of Securities Being Offered
Item 20. Underwriters.............................................................................Underwriters
Item 21. Calculation of Performance Information....................................Calculations of Performance
Item 22. Annuity Payments.....................................................................Annuity Payments
Item 23. Financial Statements.............................................................Financial Statements
PART C OTHER INFORMATION
Item 24. Financial Statements and Exhibits.............................................................Item 24
Item 25. Directors and Officers of the Depositor.......................................................Item 25
Item 26. Persons Controlled by or Under Common Control with
the Depositor or Registrant..............................................................Item 26
Item 27. Number of Contract Owners.....................................................................Item 27
Item 28. Indemnification...............................................................................Item 28
Item 29. Principal Underwriter.........................................................................Item 29
Item 30. Location of Accounts and Records..............................................................Item 30
Item 31. Management Services...........................................................................Item 31
Item 32. Undertakings.......................................................................................Item 32
</TABLE>
<PAGE> 3
SUPPLEMENT DATED JANUARY 2, 2001, TO
PROSPECTUS DATED MAY 1, 2000, FOR
MODIFIED SINGLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VARIABLE ACCOUNT - 9
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS. PLEASE
READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
1. THE "DEATH BENEFIT OPTION" PROVISION OF THE SECTION ENTITLED "ADDITIONAL
CONTRACT OPTIONS" IS DELETED AND REPLACED WITH THE FOLLOWING:
DEATH BENEFIT OPTION
For contracts issued on or after the later of January 2, 2001 or the date on
which state insurance authorities approve applicable contract modifications,
applicants may elect the Greater of One-Year or Optional 5% Enhanced Death
Benefit with Long Term Care/Nursing Home Waiver instead of the One-Year Step Up
Death Benefit that is standard to every contract.
<TABLE>
<CAPTION>
<S> <C>
Optional Greater of One Year or 5% Enhanced Death Benefit with Long Term
Care/Nursing Home Waiver.............................................................................0.15%
Total Variable Account Charges
(including death benefit option only).........................................................1.35%
For contracts issued prior to January 2, 2001 or on a date prior to which state
insurance authorities approve the contract modifications listed above,
applicants may elect the following death benefit as a replacement for the
One-Year Step-Up Death Benefit that is standard to every contract.
Optional 5% Enhanced Death Benefit...............................................................0.05%
Total Variable Account Charges
(including death benefit option only).........................................................1.25%
</TABLE>
2. THE "SPOUSAL PROTECTION ANNUITY OPTION" PROVISION OF THE SECTION ENTITLED
"ADDITIONAL CONTRACT OPTIONS" IS AMENDED AS FOLLOWS:
SPOUSAL PROTECTION ANNUITY OPTION
An applicant for an Individual Retirement Annuity or a non-qualified contract
may elect the Spousal Protection Annuity Option at no additional cost (see
"Spousal Protection Annuity Option").
Spousal Protections Annuity Option ......................................0.00%
Total Variable Account
(including Spousal Protection Annuity Option only) ....................1.20%
LIKEWISE, THE "SPOUSAL PROTECTION ANNUITY OPTION" PROVISION OF THE "OPTIONAL
CONTRACT BENEFITS, CHARGES AND DEDUCTIONS" IS AMENDED TO ALLOW AN APPLICANT TO
ELECT THE SPOUSAL PROTECTION ANNUITY OPTION WITH EITHER THE STANDARD DEATH
BENEFIT OR THE OPTIONAL DEATH BENEFIT.
3. THE THIRD PARAGRAPH OF THE "CHARGES AND EXPENSES" OF THE PROSPECTUS IS
DELETED AND REPLACED WITH THE FOLLOWING:
An optional death benefit is available under the contract. For contracts issued
on or after the later of January 2, 2001 or the date on which state insurance
authorities approve applicable contract modifications, Nationwide will deduct an
additional charge at an annualized rate of 0.15% of the daily net assets of the
variable account if the Greater of One-Year or 5% Enhanced Death Benefit with
Long Term Care/Nursing Home Waiver is elected. For contracts issued prior to
January 2, 2001 or on a date prior to which state insurance authorities approve
the contract option listed above, Nationwide will deduct an annualized rate of
0.05% of the daily net assets of the variable account if the 5% Enhanced Death
Benefit is elected.
4. THE "DEATH BENEFIT OPTION" PROVISION OF THE SECTION ENTITLED "OPTIONAL
CONTRACT BENEFITS, CHARGES AND DEDUCTIONS" AND THE "5% ENHANCED DEATH
BENEFIT" PROVISION OF THE SECTION ENTITLED "DEATH BENEFIT PAYMENT" ARE
DELETED AND REPLACED WITH THE FOLLOWING:
<PAGE> 4
The following death benefit option is available with the contracts. The death
benefit option may not be available in every state.
--------------------------------------------------------------------------------
THE FOLLOWING BENEFIT IS AVAILABLE FOR CONTRACTS ISSUED ON OR AFTER THE LATER OF
JANUARY 2, 2001 OR THE DATE ON WHICH STATE INSURANCE AUTHORITIES APPROVE THE
APPLICABLE CONTRACT MODIFICATION.
--------------------------------------------------------------------------------
If the contract owner elects the optional death benefit, Nationwide will deduct
a charge equal to an annualized rate of 0.15% of the daily net assets of the
variable account for the Greater of One-Year or 5% Enhanced Death Benefit with
Long Term Care/Nursing Home Waiver.
Greater of One-Year or 5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greatest of:
(1) the contract value;
(2) the total of all purchase payments, less an adjustment for amounts
surrendered;
(3) the highest contract value on any contract anniversary before the
annuitant's 86th birthday, less an adjustment for amounts subsequently
surrendered, plus purchase payments received after that contract
anniversary; or
(4) the 5% interest anniversary value.
The adjustment for amounts surrendered will reduce items (2) and (3) above in
the same proportion that the contract value was reduced on the date of the
partial surrender.
The 5% Interest Anniversary Value is equal to purchase payments minus amounts
surrendered, accumulated at 5% compound interest until the last contract
anniversary prior to the annuitant's 86th birthday. Such total accumulated
amount shall not exceed 200% of the net of purchase payments and amounts
surrendered. The adjustment for amounts subsequently surrendered after the most
recent contract anniversary will reduce the 5% Interest Anniversary Value in the
same proportion that the contract value was reduced on the date of the partial
surrender.
<PAGE> 5
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THE FOLLOWING BENEFIT IS AVAILABLE FOR CONTRACTS ISSUED PRIOR TO JANUARY 2, 2001
OR ON A DATE PRIOR TO WHICH STATE INSURANCE AUTHORITIES APPROVE THE CONTRACT
MODIFICATION LISTED ABOVE.
--------------------------------------------------------------------------------
If the contract owner elects the 5% Enhanced Death Benefit, Nationwide will
deduct an additional charge equal to an annual rate of 0.05% of the daily net
assets of the variable account.
5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greater of:
(1) the contract value; or
(2) the total of all purchase payments, less any amounts surrendered,
accumulated at 5% simple interest from the date of each purchase
payment or surrender to the most recent contract anniversary prior to
the annuitant's 86th birthday, less an adjustment for amounts
subsequently surrendered, plus purchase payments received since that
contract anniversary.
The total accumulated amount will not exceed 200% of the net of purchase
payments and amounts surrendered. The adjustment for amounts subsequently
surrendered after the most recent contract anniversary will reduce the 5%
interest anniversary value in the same proportion that the contract value was
reduced on the date(s) of the partial surrender(s).
--------------------------------------------------------------------------------
IN ADDITION, ALL DEATH BENEFIT OPTIONS HAVE A LONG TERM CARE FACILITY AND
TERMINAL ILLNESS BENEFIT AVAILABLE AT NO ADDITIONAL CHARGE PROVIDED THE
CONDITIONS DESCRIBED BELOW ARE SATISFIED.
--------------------------------------------------------------------------------
No CDSC will be charged if:
(1) the third contract anniversary has passed; and
(2) the contract owner has been confined to a long-term care facility or
hospital for a continuous 90-day period that began after the contract issue
date; or
(3) the contract owner has been diagnosed by a physician to have a terminal
illness; and
(4) Nationwide receives and records such a letter from that physician
indicating such diagnosis.
Written notice and proof of terminal illness or confinement for 90 days in a
hospital or long term care facility must be received in a form satisfactory to
Nationwide and recorded at Nationwide's home office prior to waiver of the CDSC.
<PAGE> 6
In the case of joint ownership, the waivers will apply if either joint owner
meets the qualifications listed above. For those contracts that have a
non-natural person as contract owner as an agent for a natural person, the
annuitant may exercise the right of the contract owner for purposes described in
this provision. If the non-natural contract owner does not own the contract as
an agent for a natural person (.e.g., the contract owner is a corporation or a
trust for the benefit of an entity), the annuitant may not exercise the rights
described in this provision.
5. EFFECTIVE JANUARY 8, 2001, WADDELL & REED INVESTMENT MANAGEMENT COMPANY
WILL BECOME ONE OF THE SUBADVISERS OF THE NATIONWIDE SEPARATE ACCOUNT TRUST
- NATIONWIDE SMALL COMPANY FUND. THERE IS NO CHANGE IN THE FUND'S OBJECTIVE
AS IS STATED IN THE PROSPECTUS DATED MAY 1, 2000.
<PAGE> 7
SUPPLEMENT DATED SEPTEMBER 20, 2000, TO
PROSPECTUS DATED MAY 1, 2000, FOR
MODIFIED SINGLE PREMIUM DEFERRED
VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VARIABLE ACCOUNT - 9
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS. PLEASE
READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
1. AN APPLICATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
("SEC") FOR AN ORDER PERMITTING THE SUBSTITUTION OF SHARES OF THE
UNDERLYING MUTUAL FUNDS IN COLUMN A ("EXISTING FUNDS") OF THE FOLLOWING
TABLE WITH SHARES OF THE UNDERLYING MUTUAL FUNDS IN COLUMN B ("REPLACEMENT
FUNDS"). UNTIL AN ORDER IS GRANTED BY THE SEC, BOTH INVESTMENT OPTIONS WILL
BE AVAILABLE TO ALL CONTRACT OWNERS AS UNDERLYING MUTUAL FUND OPTIONS. IF
AN ORDER IS GRANTED, INFORMATION WILL BE SENT TO ALL CONTRACT OWNERS
REGARDING THE "EXCHANGE DATE" ON WHICH THE EXISTING FUNDS WILL BE
ELIMINATED AS INVESTMENT OPTIONS AND SUBSTITUTED WITH THE REPLACEMENT
FUNDS.
<TABLE>
<CAPTION>
Column A Column B
Existing Funds Replacement Funds
<S> <C>
Nationwide Separate Account Trust ("NSAT") - Strong Opportunity Fund II, Inc.
Nationwide Strategic Value Fund
Warburg Pincus Trust - Value Portfolio Fidelity VIP - Equity-Income Portfolio: Service
Class
</TABLE>
2. THE "SURRENDER (REDEMPTION)" PROVISION ON PAGE 29 OF YOUR PROSPECTUS IS
AMENDED TO INCLUDE THE FOLLOWING:
Nationwide is required by state law to reserve the right to postpone
payment of assets in the fixed account for a period of up to six months
from the date of the surrender request.
3. THE "ENHANCED RATE DOLLAR COST AVERAGING" PROVISION ON PAGE 33 OF YOUR
PROSPECTUS IS AMENDED TO INCLUDE THE FOLLOWING:
Nationwide is required by state law to reserve the right to postpone
payment of assets in the fixed account for a period of up to six months
from the date of the surrender request.
4. "APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS" ON PAGE 57 OF YOUR
PROSPECTUS IS AMENDED TO READ:
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST ("AMT")
Neuberger Berman AMT is an open-end, diversified management investment
company that offers its portfolios in connection with variable annuity
contracts and variable life insurance policies, and certain qualified
plans. Prior to May 1, 2000, the portfolios invested through a two-tier
master/feeder structure, whereby each portfolio invested its assets in
another fund that served as a corresponding "master series;" the master
series invested in securities. Effective May 1, 2000, the portfolios
converted to a conventional one-tier structure, whereby each portfolio
holds its securities directly. Neuberger Berman Management Inc. is the
investment adviser.
<PAGE> 8
GUARDIAN PORTFOLIO
Investment Objective: Long-term capital growth, with current income as
a secondary objective. The portfolio pursues these goals by investing
mainly in common stocks of large-capitalization companies.
MID-CAP GROWTH PORTFOLIO
Investment Objective: Capital growth. The portfolio pursues this goal
by investing mainly in common stocks of mid-capitalization companies.
The managers look for fast-growing companies that are in new or
rapidly evolving industries and seek to reduce risk by diversifying
among many companies, industries and sectors.
PARTNERS PORTFOLIO
Investment Objective: Capital growth. The portfolio pursues its goal
by investing mainly in common stocks of mid- to large-capitalization
companies.
5. EFFECTIVE SEPTEMBER 25, 2000: MERGER OF VAN KAMPEN LIFE INVESTMENT TRUST -
MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO INTO THE UNIVERSAL
INSTITUTIONAL FUNDS, INC. - U.S. REAL ESTATE PORTFOLIO.
Effective September 25, pursuant to shareholder vote, all shares of Van
Kampen Life Investment Trust - Morgan Stanley Real Estate Securities
Portfolio were exchanged for shares of The Universal Institutional Funds,
Inc. - U.S. Real Estate Portfolio. Any assets invested in Van Kampen Life
Investment Trust - Morgan Stanley Real Estate Securities Portfolio at the
close of business on September 22, 2000 will be exchanged for shares of The
Universal Institutional Funds, Inc. - U.S. Real Estate Portfolio. The value
of the shares received in the exchange equals the value of the shares held
in the Van Kampen Life Investment Trust - Morgan Stanley Real Estate
Securities Portfolio as of the close of business on September 22, 2000.
This exchange of shares will not otherwise affect any contract rights.
Contract owners are free to reallocate assets located in The Universal
Institutional Funds, Inc. - U.S. Real Estate Portfolio pursuant to the
terms of the contract.
Following the exchange, contract owners who had assets in the Van Kampen
Life Investment Trust - Morgan Stanley Real Estate Securities Portfolio
will have assets in The Universal Institutional Funds, Inc. - U.S. Real
Estate Portfolio and the Van Kampen Life Investment Trust - Morgan Stanley
Real Estate Securities Portfolio will be terminated in accordance with
Delaware state law.
6. EFFECTIVE SEPTEMBER 25, 2000, ALL REFERENCES IN YOUR PROSPECTUS TO VAN
KAMPEN LIFE INVESTMENT TRUST - MORGAN STANLEY REAL ESTATE SECURITIES
PORTFOLIO ARE DELETED AND PAGE 1 OF YOUR PROSPECTUS IS AMENDED TO INCLUDE
THE FOLLOWING UNDERLYING MUTUAL FUND:
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.
- U.S. Real Estate Portfolio
7. EFFECTIVE SEPTEMBER 25, 2000, THE "UNDERLYING MUTUAL FUND ANNUAL EXPENSES"
TABLE ON PAGE 9 OF YOUR PROSPECTUS IS AMENDED AS FOLLOWS:
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(as a percentage of underlying mutual fund average net assets, after expense reimbursement)
Total Underlying
Management Other 12b-1 Mutual Fund
Fees Expenses Fees Expenses
<S> <C> <C> <C> <C>
The Universal Institutional Funds, Inc. 0.75% 0.35% 0.00% 1.10%
-- U. S. Real Estate Portfolio
</TABLE>
The expenses shown above are deducted by the underlying mutual fund before
it provides Nationwide with the daily net asset value. Nationwide then
deducts applicable variable account charges from the net asset value in
calculating the unit value of the corresponding sub-account. The management
fees and other expenses are more fully described in the prospectus for each
underlying
<PAGE> 9
mutual fund. Information relating to the underlying mutual funds was
provided by the underlying mutual funds and not independently verified by
Nationwide.
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been
for such funds without fee waivers and expense reimbursements.
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(as a percentage of underlying mutual fund average net assets, before expense reimbursement)
Total Underlying
Management Other 12b-1 Mutual Fund
Fees Expenses Fees Expenses
<S> <C> <C> <C> <C>
The Universal Institutional Funds, Inc. 0.80% 0.35% 0.00% 1.15%
-- U. S. Real Estate Portfolio
</TABLE>
8. EFFECTIVE SEPTEMBER 25, 2000, THE "EXAMPLE" CHART ON PAGE 12 OF YOUR
PROSPECTUS IS AMENDED AS FOLLOWS:
The following chart shows the amount of expenses (in dollars) that would be
incurred under this contract assuming a $1,000 investment, 5% annual
return, and no change in expenses. These dollar figures are illustrative
only and should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown below.
The example reflects expenses of both the variable account and the
underlying mutual funds. The example reflects variable account charges of
1.70%. Deductions for premium taxes are not reflected but may apply.
<TABLE>
<CAPTION>
If you surrender your If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
applicable time period applicable time period time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
The Universal 92 144 189 323 29 90 153 323 * 90 153 323
Institutional
Funds, Inc.--
U. S. Real
Estate Portfolio
</TABLE>
*The contracts sold under this prospectus do not permit annuitization during the
first two contract years.
9. EFFECTIVE SEPTEMBER 25, 2000, "APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL
FUNDS" ON PAGE 57 OF YOUR PROSPECTUS IS AMENDED TO READ:
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.
U. S. REAL ESTATE PORTFOLIO
Investment Objective: Long-term capital growth by investing principally
in a diversified portfolio of securities of companies operating in the
real estate industry ("Real Estate Securities"). Current income is a
secondary consideration. Real Estate Securities include equity
securities, including common stocks and convertible securities, as well
as non-convertible preferred stocks and debt securities of real estate
industry companies. A "real estate industry company" is a company that
derives at least 50% of its assets (marked to market), gross income or
net profits from the ownership, construction, management or sale of
residential, commercial or industrial real estate.
<PAGE> 10
Under normal market conditions, at least 65% of the Fund's total assets
will be invested in Real Estate Securities, primarily equity securities
of real estate investment trusts. The Portfolio may invest up to 25% of
its total assets in securities issued by foreign issuers, some or all
of which may also be Real Estate Securities. Morgan Stanley Asset
Management, Inc. serves as the Fund's investment adviser.
10. EFFECTIVE OCTOBER 2, 2000, PAGE 1 OF YOUR PROSPECTUS IS AMENDED TO INCLUDE
THE FOLLOWING UNDERLYING MUTUAL FUNDS:
NATIONWIDE SEPARATE ACCOUNT TRUST
- Gartmore NSAT Emerging Markets Fund
- Gartmore NSAT Global Technology and Communications Fund
- Gartmore NSAT International Growth Fund
- Turner NSAT Growth Focus Fund
11. EFFECTIVE OCTOBER 2, 2000, THE FOLLOWING UNDERLYING MUTUAL FUNDS HAVE
CHANGED NAMES. ALL REFERENCES IN YOUR PROSPECTUS TO THE OLD NAME WILL BE
REPLACED WITH THE NEW NAME AS DESCRIBED BELOW:
<TABLE>
<CAPTION>
ALL REFERENCES TO... ARE REPLACED WITH...
<S> <C>
Nationwide Separate Account Trust ("NSAT") - NSAT - J.P. Morgan NSAT Balanced Fund
Nationwide Balanced Fund
NSAT - Nationwide Equity Income Fund NSAT - Federated NSAT Equity Income Fund
NSAT - Nationwide High Income Bond Fund NSAT - Federated NSAT High Income Bond Fund
NSAT - Nationwide Mid Cap Index Fund NSAT - Dreyfus NSAT Mid Cap Index Fund
NSAT - Nationwide Multi Sector Bond Fund NSAT - MAS NSAT Multi Sector Bond Fund
NSAT - Nationwide Strategic Growth Fund NSAT - Strong NSAT Mid Cap Growth Fund
</TABLE>
12. EFFECTIVE OCTOBER 2, 2000, WADDELL & REED INVESTMENT MANAGEMENT COMPANY
WILL REPLACE FRANKLIN ADVISERS, INC. AS ONE OF THE SUBADVISERS OF THE
NATIONWIDE SEPARATE ACCOUNT TRUST - NATIONWIDE SMALL CAP GROWTH FUND. THERE
IS NO CHANGE IN THE FUND'S OBJECTIVE AS IS STATED IN THE PROSPECTUS DATED
MAY 1, 2000.
13. EFFECTIVE OCTOBER 2, 2000, THE "UNDERLYING MUTUAL FUND ANNUAL EXPENSES"
TABLE ON PAGE 9 OF YOUR PROSPECTUS IS AMENDED AS FOLLOWS:
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(as a percentage of underlying mutual fund average net assets, after expense reimbursement)
Total Underlying
Management Other 12b-1 Mutual Fund
Fees Expenses Fees Expenses
<S> <C> <C> <C> <C>
NSAT - Gartmore NSAT Emerging Markets Fund 0.87% 0.88% 0.00% 1.75%
NSAT - Gartmore NSAT Global Technology and 0.62% 0.73% 0.00% 1.35%
Communications Fund
NSAT - Gartmore NSAT International Growth 0.72% 0.88% 0.00% 1.60%
Fund
NSAT - Nationwide Small Cap Value Fund 0.88% 0.37% 0.00% 1.25%
NSAT - Turner NSAT Growth Focus Fund 0.59% 0.76% 0.00% 1.35%
</TABLE>
<PAGE> 11
The expenses shown above are deducted by the underlying mutual fund before
it provides Nationwide with the daily net asset value. Nationwide then
deducts applicable variable account charges from the net asset value in
calculating the unit value of the corresponding sub-account. The management
fees and other expenses are more fully described in the prospectus for each
underlying mutual fund. Information relating to the underlying mutual funds
was provided by the underlying mutual funds and not independently verified
by Nationwide.
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been
for such funds without fee waivers and expense reimbursements.
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(as a percentage of underlying mutual fund average net assets, before expense reimbursement)
Total Underlying
Management Other 12b-1 Mutual Fund
Fees Expenses Fees Expenses
<S> <C> <C> <C> <C>
NSAT - Gartmore NSAT Emerging Markets Fund 1.15% 0.88% 0.00% 2.03%
NSAT - Gartmore NSAT Global Technology and 0.98% 0.73% 0.00% 1.71%
Communications Fund
NSAT - Gartmore NSAT International Growth 1.00% 0.88% 0.00% 1.88%
Fund
NSAT - Nationwide Small Cap Value Fund 0.90% 0.37% 0.00% 1.27%
NSAT - Turner NSAT Growth Focus Fund 0.90% 0.76% 0.00% 1.66%
</TABLE>
14. EFFECTIVE OCTOBER 2, 2000, THE "EXAMPLE" CHART ON PAGE 12 OF YOUR
PROSPECTUS IS AMENDED AS FOLLOWS:
The following chart shows the amount of expenses (in dollars) that would be
incurred under this contract assuming a $1,000 investment, 5% annual
return, and no change in expenses. These dollar figures are illustrative
only and should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown below.
The example reflects expenses of both the variable account and the
underlying mutual funds. The example reflects variable account charges of
1.70%. Deductions for premium taxes are not reflected but may apply.
<TABLE>
<CAPTION>
If you surrender your If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
applicable time period applicable time period time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NSAT - Gartmore 99 164 222 386 36 110 186 386 * 110 186 386
NSAT Emerging
Markets Fund
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
If you surrender your If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
applicable time period applicable time period time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NSAT - Gartmore 95 152 202 347 32 98 166 347 * 98 166 347
NSAT Global
Technology and
Communications Fund
NSAT - Gartmore 98 160 215 371 35 106 179 371 * 106 179 371
NSAT International
Growth Fund
NSAT - Nationwide 94 149 197 338 31 95 161 338 * 95 161 338
Small Cap Value
Fund
NSAT - Turner NSAT 95 152 202 347 32 98 166 347 * 98 166 347
Growth Focus Fund
</TABLE>
*The contracts sold under this prospectus do not permit annuitization during the
first two contract years.
15. EFFECTIVE OCTOBER 2, 2000, "APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL
FUNDS" ON PAGE 57 OF YOUR PROSPECTUS IS AMENDED TO READ:
NATIONWIDE SEPARATE ACCOUNT TRUST ("NSAT")
GARTMORE NSAT EMERGING MARKETS FUND
(subadviser: Gartmore Global Partners)
Investment Objective: Long term capital growth by investing primarily
in equity securities of companies located in emerging market
countries.
GARTMORE NSAT GLOBAL TECHNOLOGY AND COMMUNICATIONS FUND
(subadviser: Gartmore Global Partners)
Investment Objective: Long term capital appreciation by investing
primarily and at least 65% of its total assets in equity securities
issued by U.S. and foreign companies with business operations in
technology and communications and technology and communication related
industries.
GARTMORE NSAT INTERNATIONAL GROWTH FUND
(subadviser: Gartmore Global Partners)
Investment Objective: Long term capital growth by investing primarily
in equity securities of companies in Europe, Australia, the Far East
and other regions, including developing countries.
TURNER NSAT GROWTH FOCUS FUND
(subadviser: Turner Investment Partners, Inc.)
Investment Objective: Long term capital appreciation by investing
primarily in U.S. common stocks, ADRs and foreign companies that
demonstrate strong earnings growth potential.
<PAGE> 13
SUPPLEMENT DATED SEPTEMBER 20, 2000, TO
PROSPECTUS DATED MAY 1, 2000, FOR
DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE VARIABLE ACCOUNT - 9
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN YOUR PROSPECTUS. PLEASE
READ IT AND KEEP IT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
1. AN APPLICATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
("SEC") FOR AN ORDER PERMITTING THE SUBSTITUTION OF SHARES OF THE VICTORY
VARIABLE INSURANCE FUNDS - INVESTMENT QUALITY BOND FUND: CLASS A WITH
SHARES OF THE FEDERATED INSURANCE SERIES - FEDERATED QUALITY BOND FUND II.
EFFECTIVE OCTOBER 2, 2000 AND UNTIL AN ORDER IS GRANTED BY THE SEC, BOTH
INVESTMENT OPTIONS WILL BE AVAILABLE TO ALL CONTRACT OWNERS AS UNDERLYING
MUTUAL FUND OPTIONS. IF AN ORDER IS GRANTED, INFORMATION WILL BE SENT TO
ALL CONTRACT OWNERS REGARDING THE "EXCHANGE DATE" ON WHICH THE VICTORY
VARIABLE INSURANCE FUNDS - INVESTMENT QUALITY BOND FUND: CLASS A WILL BE
ELIMINATED AS AN INVESTMENT OPTION AND SUBSTITUTED WITH THE FEDERATED
INSURANCE SERIES - FEDERATED QUALITY BOND FUND II.
2. THE "SURRENDER (REDEMPTION)" PROVISION ON PAGE 24 OF YOUR PROSPECTUS IS
AMENDED TO INCLUDE THE FOLLOWING:
Nationwide is required by state law to reserve the right to postpone
payment of assets in the fixed account for a period of up to six months
from the date of the surrender request.
3. THE "ENHANCED RATE DOLLAR COST AVERAGING" PROVISION ON PAGE 28 OF YOUR
PROSPECTUS IS AMENDED TO INCLUDE THE FOLLOWING:
Nationwide is required by state law to reserve the right to postpone
payment of assets in the fixed account for a period of up to six months
from the date of the surrender request.
4. "APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS" ON PAGE 50 OF YOUR
PROSPECTUS IS AMENDED TO READ:
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST ("AMT")
Neuberger Berman AMT is an open-end, diversified management investment
company that offers its portfolios in connection with variable annuity
contracts and variable life insurance policies, and certain qualified
plans. Prior to May 1, 2000, the portfolios invested through a two-tier
master/feeder structure, whereby each portfolio invested its assets in
another fund that served as a corresponding "master series;" the master
series invested in securities. Effective May 1, 2000, the portfolios
converted to a conventional one-tier structure, whereby each portfolio
holds its securities directly. Neuberger Berman Management Inc. is the
investment adviser.
MID-CAP GROWTH PORTFOLIO
Investment Objective: Capital growth. The portfolio pursues this goal
by investing mainly in common stocks of mid-capitalization companies.
The managers look for fast-growing companies that are in new or rapidly
evolving industries and seek to reduce risk by diversifying among many
companies, industries and sectors.
<PAGE> 14
PARTNERS PORTFOLIO
Investment Objective: Capital growth. The portfolio pursues its goal
by investing mainly in common stocks of mid- to large-capitalization
companies.
5. EFFECTIVE OCTOBER 2, 2000, THE FOLLOWING UNDERLYING MUTUAL FUNDS HAVE
CHANGED NAMES. ALL REFERENCES IN YOUR PROSPECTUS TO THE OLD NAME WILL BE
REPLACED WITH THE NEW NAME AS DESCRIBED BELOW:
<TABLE>
<CAPTION>
ALL REFERENCES TO... ARE REPLACED WITH...
<S> <C>
Nationwide Separate Account Trust ("NSAT") - NSAT - Federated NSAT Equity Income Fund
Nationwide Equity Income Fund
NSAT - Nationwide High Income Bond Fund NSAT - Federated NSAT High Income Bond Fund
NSAT - Nationwide Multi Sector Bond Fund NSAT - MAS NSAT Multi Sector Bond Fund
</TABLE>
6. EFFECTIVE OCTOBER 2, 2000, PAGE 1 OF YOUR PROSPECTUS IS AMENDED TO INCLUDE
THE FOLLOWING UNDERLYING MUTUAL FUND:
FEDERATED INSURANCE SERIES
- Federated Quality Bond Fund II
7. EFFECTIVE OCTOBER 2, 2000, THE "UNDERLYING MUTUAL FUND ANNUAL EXPENSES"
TABLE ON PAGES 8-9 OF YOUR PROSPECTUS IS AMENDED AS FOLLOWS:
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(as a percentage of underlying mutual fund average net assets, after expense reimbursement)
Total Underlying
Management Other 12b-1 Mutual Fund
Fees Expenses Fees Expenses
<S> <C> <C> <C> <C>
Federated Insurance Series - Federated 0.00% 0.68% 0.00% 0.68%
Quality Bond Fund II
</TABLE>
The expenses shown above are deducted by the underlying mutual fund before
it provides Nationwide with the daily net asset value. Nationwide then
deducts applicable variable account charges from the net asset value in
calculating the unit value of the corresponding sub-account. The management
fees and other expenses are more fully described in the prospectus for each
underlying mutual fund. Information relating to the underlying mutual funds
was provided by the underlying mutual funds and not independently verified
by Nationwide.
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been
for such funds without fee waivers and expense reimbursements.
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(as a percentage of underlying mutual fund average net assets, before expense reimbursement)
Total Underlying
Management Other 12b-1 Mutual Fund
Fees Expenses Fees Expenses
<S> <C> <C> <C> <C>
Federated Insurance Series - Federated 0.60% 0.89% 0.25% 1.74%
Quality Bond Fund II
</TABLE>
<PAGE> 15
8. EFFECTIVE OCTOBER 2, 2000, THE "EXAMPLE" CHART ON PAGES 9-10 OF YOUR
PROSPECTUS IS AMENDED AS FOLLOWS:
The following chart shows the amount of expenses (in dollars) that would be
incurred under this contract assuming a $1,000 investment, 5% annual
return, and no change in expenses. These dollar figures are illustrative
only and should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown below.
The example reflects expenses of both the variable account and the
underlying mutual funds. The example reflects an assumed variable account
charge of 1.70%, which is the maximum variable account charge for the
maximum number of rider options.
For those contracts that do not elect the maximum number of rider options,
the expenses would be reduced. Deductions for premium taxes are not
reflected but may apply.
<TABLE>
<CAPTION>
If you surrender your If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
applicable time period applicable time period time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Federated 88 131 167 280 25 77 131 280 * 77 131 280
Insurance
Series -
Federated
Quality Bond
Fund II
</TABLE>
*The contracts sold under this prospectus do not permit annuitization
during the first two contract years.
9. EFFECTIVE OCTOBER 2, 2000, "APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL
FUNDS" ON PAGE 50 OF YOUR PROSPECTUS IS AMENDED TO READ:
FEDERATED INSURANCE SERIES
Federated Insurance Series (the "Trust"), an Open-End Management Investment
Company, was established as a Massachusetts business trust, under a
Declaration of Trust dated September 15, 1993. The Trust offers its shares
only as investment vehicles for variable annuity and variable life
insurance products of insurance companies. Federated Investment Management
Company serves as the investment adviser.
FEDERATED QUALITY BOND FUND II
Investment Objective: Current income by investing in investment grade
fixed income securities.
<PAGE> 16
NATIONWIDE LIFE INSURANCE COMPANY
Modified Single Premium Deferred Variable Annuity Contracts
Issued by Nationwide Life Insurance Company through its Nationwide Variable
Account-9
The date of this prospectus is May 1, 2000.
--------------------------------------------------------------------------------
Variable annuities are complex investment products with unique benefits and
advantages that may be particularly useful to many investors in meeting
long-term savings and retirement needs. There are, however, costs and charges
associated with some of these unique benefits - costs and charges that do not
exist or are not present with other investment products. With help from
financial consultants or advisers, investors are encouraged to compare and
contrast the costs and benefits of the variable annuity described in this
prospectus with those of other investment products, including other variable
annuity or variable life insurance products offered by Nationwide Life Insurance
Company and its affiliates. This process will aid in determining whether the
purchase of the contract described in this prospectus is consistent with an
individual's goals, risk tolerance, time horizon, marital status, tax situation,
and other personal characteristics and needs.
THIS PROSPECTUS CONTAINS BASIC INFORMATION YOU SHOULD KNOW ABOUT THE CONTRACTS
BEFORE INVESTING. PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE
REFERENCE.
--------------------------------------------------------------------------------
The following underlying mutual funds are available under the contracts:
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN CENTURY(SM)
FAMILY OF INVESTMENTS
- American Century VP Income & Growth
- American Century VP International
- American Century VP Value
DREYFUS
- Dreyfus Investment Portfolios - European Equity Portfolio
- The Dreyfus Socially Responsible Growth Fund, Inc.
- Dreyfus Stock Index Fund, Inc.
- Dreyfus Variable Investment Fund - Appreciation Portfolio (formerly,
Dreyfus Variable Investment Fund - Capital Appreciation Portfolio)
FEDERATED INSURANCE SERIES
- Federated Quality Bond Fund II
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
- VIP Equity-Income Portfolio: Service Class
- VIP Growth Portfolio: Service Class
- VIP High Income Portfolio: Service Class*
- VIP Overseas Portfolio: Service Class
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
- VIP II Contrafund(R)Portfolio: Service Class
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III
- VIP III Growth Opportunities Portfolio: Service Class
JANUS ASPEN SERIES
- Capital Appreciation Portfolio: Service Shares
- Global Technology Portfolio: Service Shares
- International Growth Portfolio: Service Shares
MORGAN STANLEY
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (FORMERLY, MORGAN STANLEY DEAN WITTER
UNIVERSAL FUNDS, INC.)
- Emerging Markets Debt Portfolio
- Mid Cap Growth Portfolio
VAN KAMPEN LIFE INVESTMENT TRUST
- Morgan Stanley Real Estate Securities Portfolio
NATIONWIDE SEPARATE ACCOUNT TRUST
- Capital Appreciation Fund
- Government Bond Fund
- Money Market Fund
- Total Return Fund
- Nationwide Balanced Fund (subadviser: J.P. Morgan Investment Management
Inc.)
- Nationwide Equity Income Fund (subadviser: Federated Investment
Counseling)
<PAGE> 17
- Nationwide Global 50 Fund (formerly, Nationwide Global Equity Fund)
(subadviser: J.P. Morgan Investment Management Inc.)
- Nationwide High Income Bond Fund* (subadviser: Federated Investment
Counseling)
- Nationwide Mid Cap Index Fund (formerly, Nationwide Select Advisers Mid
Cap Fund) (subadviser: The Dreyfus Corporation)
- Nationwide Multi Sector Bond Fund (subadviser: Miller, Anderson &
Sherrerd, LLP)
- Nationwide Small Cap Growth Fund (formerly, Nationwide Select Advisers
Small Cap Growth Fund) (subadvisers: Franklin Advisers, Inc., Miller,
Anderson & Sherrerd, LLP, Neuberger Berman, LLC.)
- Nationwide Small Cap Value Fund (subadvisers: The Dreyfus Corporation)
- Nationwide Small Company Fund (subadvisers: The Dreyfus Corporation,
Neuberger Berman, LLC, Lazard Asset Management and Strong Capital
Management, Inc.)
- Nationwide Strategic Growth Fund (subadviser: Strong Capital
Management, Inc.)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
- AMT Guardian Portfolio
- AMT Mid-Cap Growth Portfolio
- AMT Partners Portfolio
OPPENHEIMER VARIABLE ACCOUNT FUNDS
- Oppenheimer Aggressive Growth Fund/VA (formerly, Oppenheimer Capital
Appreciation Fund)
- Oppenheimer Capital Appreciation Fund/VA (formerly, Oppenheimer Growth
Fund)
- Oppenheimer Global Securities Fund/VA
- Oppenheimer Main Street Growth & Income Fund/VA (formerly, Oppenheimer
Growth & Income Fund)
STRONG OPPORTUNITY FUND II, INC.
VAN ECK WORLDWIDE INSURANCE TRUST
- Worldwide Emerging Markets Fund
- Worldwide Hard Assets Fund
VICTORY VARIABLE INSURANCE FUNDS
- Diversified Stock Fund: Class A
- Small Company Opportunity Fund: Class A
*These underlying mutual funds may invest in lower quality debt securities
commonly referred to as junk bonds.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE IN CONNECTION WITH
CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER
SEPTEMBER 27, 1999:
WARBURG PINCUS TRUST
- International Equity Portfolio
- Global Post-Venture Capital Portfolio (formerly, Post-Venture Capital
Portfolio)
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE IN CONNECTION WITH
CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER
MAY 1, 2000:
NATIONWIDE SEPARATE ACCOUNT TRUST
- Nationwide Strategic Value Fund (subadviser: Strong Capital Management,
Inc./Schafer Capital Management, Inc.)
VICTORY VARIABLE INSURANCE FUNDS
- Investment Quality Bond Fund: Class A
WARBURG PINCUS TRUST
- Value Portfolio (formerly, Growth & Income Portfolio)
Purchase payments not invested in the underlying mutual funds of the Nationwide
Variable Account-9 ("variable account") can be allocated to the fixed account or
the Guaranteed Term Options (Guaranteed Term Options may not be available in
every jurisdiction - refer to your contract for specific information).
The Statement of Additional Information (dated May 1, 2000) which contains
additional information about the contracts and the variable account, has been
filed with the Securities and Exchange Commission ("SEC") and is incorporated
herein by reference. The table of contents for the Statement of Additional
Information is on page 57.
For general information or to obtain FREE copies of the:
- Statement of Additional Information;
2
<PAGE> 18
- prospectus, annual report or semi-annual report for any underlying
mutual fund;
- prospectus for the Guaranteed Term Options; or
- required Nationwide forms,
call: 1-800-848-6331
TDD 1-800-238-3035
or write:
NATIONWIDE LIFE INSURANCE COMPANY
P.O. BOX 16609
COLUMBUS, OHIO 43216-6609
The Statement of Additional Information and other material incorporated by
reference can be found on the SEC website at:
WWW.SEC.GOV
Information about this and other Best of America products can be found at:
WWW.BESTOFAMERICA.COM
THIS ANNUITY IS NOT:
- A BANK DEPOSIT - FEDERALLY INSURED
- ENDORSED BY A BANK OR - AVAILABLE IN
GOVERNMENT AGENCY EVERY STATE
Investors assume certain risks when investing in the contracts, including the
possibility of losing money.
These contracts are offered to customers of various financial institutions and
brokerage firms. No financial institution or brokerage firm is responsible for
the guarantees under the contracts. Guarantees under the contracts are the sole
responsibility of Nationwide.
In the future, additional underlying mutual funds managed by certain financial
institutions or brokerage firms may be added to the variable account. These
additional underlying mutual funds may be offered exclusively to purchasing
customers of the particular financial institution or brokerage firm.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, NOR HAS THE
SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
3
<PAGE> 19
GLOSSARY OF SPECIAL TERMS
ACCUMULATION UNIT- An accounting unit of measure used to calculate the variable
account contract value before the annuitization date.
ANNUITIZATION DATE- The date on which annuity payments begin.
ANNUITY COMMENCEMENT DATE- The date on which annuity payments are scheduled to
begin. This date may be changed by the contract owner with Nationwide's consent.
ANNUITY UNIT- An accounting unit of measure used to calculate variable annuity
payments.
CONTRACT VALUE- The total value of all accumulation units plus any amount held
in the fixed account, and any amount held under Guaranteed Term Options.
CONTRACT YEAR- Each year the contract is in force beginning with the date the
contract is issued.
ERISA- The Employee Retirement Income Security Act of 1974, as amended.
FIXED ACCOUNT- An investment option which is funded by the general account of
Nationwide.
GENERAL ACCOUNT- All assets of Nationwide other than those of the variable
account or in other separate accounts that have been or may be established by
Nationwide.
INDIVIDUAL RETIREMENT ACCOUNT- An account that qualifies for favorable tax
treatment under Section 408(a) of the Internal Revenue Code, but does not
include Roth IRAs.
INDIVIDUAL RETIREMENT ANNUITY- An annuity contract that qualifies for favorable
tax treatment under Section 408(b) of the Internal Revenue Code, but does not
include Roth IRAs.
INVESTMENT-ONLY CONTRACT- A contract purchased by a Qualified Pension,
Profit-Sharing or Stock Bonus Plan as defined by Section 401(a) of the Internal
Revenue Code.
NATIONWIDE- Nationwide Life Insurance Company.
NON-QUALIFIED CONTRACT- A contract which does not qualify for favorable tax
treatment as a Qualified Plan, IRA, Roth IRA or Tax Sheltered Annuity.
QUALIFIED PLANS- Retirement plans which receive favorable tax treatment under
Section 401 or 403(a) of the Internal Revenue Code.
ROTH IRA- An annuity contract which qualifies for favorable tax treatment under
Section 408A of the Internal Revenue Code.
SUB-ACCOUNTS- Divisions of the variable account to which underlying mutual fund
shares are allocated and for which accumulation units and annuity units are
separately maintained - each sub-account corresponds to a single underlying
mutual fund.
TAX SHELTERED ANNUITY- An annuity that qualifies for favorable tax treatment
under Section 403(b) of the Internal Revenue Code.
VALUATION PERIOD- Each day the New York Stock Exchange is open for business.
VARIABLE ACCOUNT- Nationwide Variable Account-9, a separate account of
Nationwide that contains variable account allocations. The variable account is
divided into sub-accounts, each of which invests in shares of a separate
underlying mutual fund.
4
<PAGE> 20
TABLE OF CONTENTS
GLOSSARY OF SPECIAL TERMS..........................
SUMMARY OF STANDARD CONTRACT EXPENSES..............
ADDITIONAL CONTRACT OPTIONS........................
UNDERLYING MUTUAL FUND ANNUAL EXPENSES.............
EXAMPLE............................................
SYNOPSIS OF THE CONTRACTS..........................
FINANCIAL STATEMENTS...............................
CONDENSED FINANCIAL INFORMATION....................
NATIONWIDE LIFE INSURANCE COMPANY..................
NATIONWIDE INVESTMENT SERVICES
CORPORATION...................................
TYPES OF CONTRACTS.................................
Non-Qualified Annuity Contracts
Individual Retirement Annuities (IRAs)
Roth IRAs
Tax Sheltered Annuities
Qualified Plans
INVESTING IN THE CONTRACT..........................
The Variable Account and Underlying
Mutual Funds
Guaranteed Term Options
The Fixed Account
STANDARD CHARGES AND DEDUCTIONS....................
Mortality and Expense Risk Charge
Contingent Deferred Sales Charge
Premium Taxes
OPTIONAL CONTRACT BENEFITS, CHARGES AND
DEDUCTIONS....................................
Death Benefit Option
Guaranteed Minimum Income Benefit
Options
Spousal Protection Annuity Option
CONTRACT OWNERSHIP.................................
Joint Ownership
Contingent Ownership
Annuitant
Beneficiary and Contingent Beneficiary
OPERATION OF THE CONTRACT..........................
Minimum Initial and Subsequent Purchase
Payments
Pricing
Allocation of Purchase Payments
Determining the Contract Value
Transfers Prior to Annuitization
Transfers After Annuitization
Transfer Requests
RIGHT TO REVOKE....................................
SURRENDER (REDEMPTION).............................
Partial Surrenders (Partial Redemptions)
Full Surrenders (Full Redemptions)
Surrenders Under a Texas Optional
Retirement Program or a Louisiana
Optional Retirement Plan
Surrenders Under a Tax Sheltered Annuity
LOAN PRIVILEGE.....................................
Minimum & Maximum Loan Amounts
Loan Processing Fee
How Loan Requests are Processed
Loan Interest
Loan Repayment
Distributions & Annuity Payments
Transferring the Contract
Grace Period & Loan Default
ASSIGNMENT.........................................
CONTRACT OWNER SERVICES............................
Asset Rebalancing
Dollar Cost Averaging
Systematic Withdrawals
ANNUITY COMMENCEMENT DATE..........................
ANNUITIZING THE CONTRACT...........................
Annuitization Date
Annuitization
Fixed Payment Annuity
Variable Payment Annuity
Frequency and Amount of Annuity
Payments
Guaranteed Minimum Income Benefit
Options ("GMIB")
Annuity Payment Options
<PAGE> 21
DEATH BENEFITS.....................................
Death of Contract Owner - Non-Qualified
Contracts
Death of Annuitant - Non-Qualified Contracts
Death of Contract Owner/Annuitant
Death Benefit Payment
REQUIRED DISTRIBUTIONS.............................
Required Distributions for Non-Qualified
Contracts
Required Distributions for Tax Sheltered
Annuities
Required Distributions for Individual
Retirement Annuities
Required Distributions for Roth IRAs
FEDERAL TAX CONSIDERATIONS.........................
Federal Income Taxes
Withholding
Non-Resident Aliens
Federal Estate, Gift, and Generation
Skipping Transfer Taxes
Charge for Tax
Diversification
Tax Changes
STATEMENTS AND REPORTS.............................
LEGAL PROCEEDINGS..................................
ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY....
TABLE OF CONTENTS OF STATEMENT OF
ADDITIONAL INFORMATION.....................
APPENDIX A: OBJECTIVES FOR UNDERLYING
MUTUAL FUNDS...............................
APPENDIX B: CONDENSED FINANCIAL INFORMATION........
6
<PAGE> 22
SUMMARY OF STANDARD CONTRACT EXPENSES
The expenses listed below are charged to all contracts unless:
- the contract owner meets an available exception under the contract; or
- a contract owner has replaced a standard benefit with an available
option for an additional charge.
CONTRACT OWNER TRANSACTION EXPENSES
Maximum Contingent Deferred Sales
Charge ("CDSC") (as a percentage
of purchase payments surrendered)................7%(1)
Range of CDSC over time:
Number of Years from Date CDSC
of Purchase Payment Percentage
0 7%
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 0%
(1)Each contract year, the contract owner may withdraw without a CDSC the
greater of:
(a) 10% of all purchase payments made to the contract; or
(b) any amount withdrawn to meet minimum distribution requirements under
the Internal Revenue Code.
This free withdrawal privilege is non-cumulative. Free amounts not taken during
any given contract year cannot be taken as free amounts in a subsequent contract
year (see "Contingent Deferred Sales Charge").
Withdrawals may be restricted for contracts issued as Tax Sheltered Annuities or
other Qualified Plans due to Internal Revenue Code restrictions.
VARIABLE ACCOUNT CHARGES(2)
(as a percentage of the daily net assets of the variable account)
Mortality and Expense Risk Charges............1.20%
Total Variable Account Charges.............1.20%(3)
LOAN PROCESSING FEE
(per loan transaction).........................$25(4)
(2)These charges apply only to sub-account allocations. They do not apply to
allocations made to the fixed account or to the Guaranteed Term Options. They
are charged on a daily basis at the annual rate noted above.
(3)Charges shown include the One-Year Step Up Death Benefit which is standard
to every contract (see "Death Benefit Payment").
(4)Nationwide assesses a $25 loan processing fee at the time each new loan is
processed. Loans are only available for contracts issued as Tax Sheltered
Annuities. Loans are not available in all states. In addition, some states
may not permit Nationwide to assess a loan processing fee (see "Loan
Privilege").
7
<PAGE> 23
ADDITIONAL CONTRACT OPTIONS
The following options are available to contract owners. Some options assess an
additional charge. These options must be elected at the time of application and
will replace the corresponding standard contract benefit.
If the contract owner chooses an optional benefit, a corresponding charge will
be deducted. The charge for an optional benefit is IN ADDITION TO the standard
variable account charges. Except as otherwise noted, optional benefit charges
will only apply to allocations made to the underlying mutual funds and are
charged as a percentage of the average variable account value.
DEATH BENEFIT OPTION
An applicant may choose the Optional 5% Enhanced Death Benefit instead of the
One-Year Step Up Death Benefit that is standard to every contract.
Optional 5% Enhanced Death
Benefit........................................0.05%
Total Variable Account Charges
(including 5% Enhanced Death
Benefit only)..............................1.25%
GUARANTEED MINIMUM INCOME BENEFIT OPTIONS
An applicant may elect one of two Guaranteed Minimum Income Benefit options (see
"Guaranteed Minimum Income Benefit Options").
Guaranteed Minimum Income Benefit Option 1..0.45%
Total Variable Account Charges
(including Guaranteed Minimum
Income Benefit Option 1 only).............1.65%
Guaranteed Minimum Income Benefit
Option 2....................................0.30%
Total Variable Account Charges
(including Guaranteed Minimum
Income Benefit Option 2 only).............1.50%
SPOUSAL PROTECTION ANNUITY OPTION - AVAILABLE WITH THE STANDARD DEATH BENEFIT
ONLY
An applicant for an Individual Retirement Annuity or a non-qualified contract
may elect the Spousal Protection Annuity Option at no additional cost (see
"Spousal Protection Annuity Option").
Spousal Protection Annuity Option..............0.00%
Total Variable Account Charges (including Spousal Protection Annuity Option
only)......................................1.20%
8
<PAGE> 24
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND AVERAGE NET ASSETS, AFTER EXPENSE REIMBURSEMENT)
Management Other 12b-1 Total
Fees Expenses Fees Underlying
Mutual Fund
Expenses
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American Century 0.70% 0.00% 0.00% 0.70%
VP Income & Growth
American Century Variable Portfolios, Inc. - American Century 1.34% 0.00% 0.00% 1.34%
VP International
American Century Variable Portfolios, Inc. - American Century 1.00% 0.00% 0.00% 1.00%
VP Value
Dreyfus Investment Portfolios - European Equity Portfolio 1.00% 0.25% 0.00% 1.25%
The Dreyfus Socially Responsible Growth Fund, Inc. 0.75% 0.04% 0.00% 0.79%
Dreyfus Stock Index Fund, Inc. 0.25% 0.01% 0.00% 0.26%
Dreyfus Variable Investment Fund - Appreciation Portfolio 0.43% 0.35% 0.00% 0.78%
(formerly, Dreyfus Variable Investment Fund - Capital
Appreciation Portfolio)
Federated Insurance Series - Federated Quality Bond Fund II 0.00% 0.68% 0.00% 0.68%
Fidelity VIP Equity-Income Portfolio: Service Class 0.48% 0.08% 0.10% 0.66%
Fidelity VIP Growth Portfolio: Service Class 0.58% 0.07% 0.10% 0.75%
Fidelity VIP High Income Portfolio: Service Class 0.58% 0.11% 0.10% 0.79%
Fidelity VIP Overseas Portfolio: Service Class 0.73% 0.15% 0.10% 0.98%
Fidelity VIP II Contrafund(R)Portfolio: Service Class 0.58% 0.07% 0.10% 0.75%
Fidelity VIP III Growth Opportunities Portfolio: Service Class 0.58% 0.10% 0.10% 0.78%
Janus Aspen Series - Capital Appreciation Portfolio: Service 0.65% 0.04% 0.25% 0.94%
Shares*
Janus Aspen Series - Global Technology Portfolio: Service 0.65% 0.13% 0.25% 1.03%
Shares*
Janus Aspen Series - International Growth Portfolio: Service 0.65% 0.11% 0.25% 1.01%
Shares*
NSAT Capital Appreciation Fund 0.60% 0.14% 0.00% 0.74%
NSAT Government Bond Fund 0.50% 0.15% 0.00% 0.65%
NSAT Money Market Fund 0.39% 0.15% 0.00% 0.54%
NSAT Total Return Fund 0.58% 0.14% 0.00% 0.72%
NSAT Nationwide Balanced Fund 0.75% 0.15% 0.00% 0.90%
NSAT Nationwide Equity Income Fund 0.80% 0.15% 0.00% 0.95%
NSAT Nationwide Global 50 Fund (formerly, NSAT Nationwide 1.00% 0.20% 0.00% 1.20%
Global Equity Fund)
NSAT Nationwide High Income Bond Fund 0.80% 0.15% 0.00% 0.95%
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT Nationwide 0.88% 0.15% 0.00% 1.03%
Select Advisers Mid Cap Fund)
NSAT Nationwide Multi Sector Bond Fund 0.75% 0.15% 0.00% 0.90%
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT 1.10% 0.20% 0.00% 1.30%
Nationwide Select Advisers Small Cap Growth Fund)
NSAT Nationwide Small Cap Value Fund 0.90% 0.15% 0.00% 1.05%
NSAT Nationwide Small Company Fund 0.98% 0.17% 0.00% 1.15%
NSAT Nationwide Strategic Growth Fund 0.90% 0.10% 0.00% 1.00%
NSAT Nationwide Strategic Value Fund 0.90% 0.10% 0.00% 1.00%
Neuberger Berman AMT Guardian Portfolio 0.85% 0.15% 0.00% 1.00%
Neuberger Berman AMT Mid-Cap Growth Portfolio 0.85% 0.15% 0.00% 1.00%
Neuberger Berman AMT Partners Portfolio 0.80% 0.07% 0.00% 0.87%
</TABLE>
9
<PAGE> 25
<TABLE>
<CAPTION>
Management Other 12b-1 Total
Fees Expenses Fees Underlying
Mutual Fund
Expenses
<S> <C> <C> <C> <C>
Oppenheimer Variable Account Funds - Oppenheimer Aggressive 0.66% 0.01% 0.00% 0.67%
Growth Fund/VA (formerly, Oppenheimer Variable Account Funds -
Oppenheimer Capital Appreciation Fund)
Oppenheimer Variable Account Funds - Oppenheimer Capital 0.68% 0.02% 0.00% 0.70%
Appreciation Fund/VA (formerly, Oppenheimer Variable Account
Funds - Oppenheimer Growth Fund)
Oppenheimer Variable Account Funds - Oppenheimer Global 0.67% 0.02% 0.00% 0.69%
Securities Fund/VA
Oppenheimer Variable Account Funds - Oppenheimer Main Street 0.73% 0.05% 0.00% 0.78%
Growth & Income Fund/VA (formerly, Oppenheimer Variable Account
Funds - Oppenheimer Growth & Income Fund)
Strong Opportunity Fund II, Inc. 1.00% 0.14% 0.00% 1.14%
The Universal Institutional Funds, Inc. - Emerging Markets Debt 0.45% 0.98% 0.00% 1.43%
Portfolio (formerly, Morgan Stanley Dean Witter Universal
Funds, Inc. - Emerging Markets Debt Portfolio)
The Universal Institutional Funds, Inc. - Mid Cap Growth 0.00% 1.05% 0.00% 1.05%
Portfolio
Van Eck Worldwide Insurance Trust - Worldwide Emerging Markets 1.00% 0.34% 0.00% 1.34%
Fund
Van Eck Worldwide Insurance Trust - Worldwide Hard Assets Fund 1.00% 0.26% 0.00% 1.26%
Van Kampen Life Investment Trust - Morgan Stanley Real Estate 0.97% 0.13% 0.00% 1.10%
Securities Portfolio
Victory Variable Insurance Funds - Diversified Stock Fund: 0.00% 0.78% 0.00% 0.78%
Class A
Victory Variable Insurance Funds - Investment Quality Bond 0.00% 0.60% 0.00% 0.60%
Fund: Class A
Victory Variable Insurance Funds - Small Company Opportunity 0.00% 0.75% 0.00% 0.75%
Fund: Class A
Warburg Pincus Trust - Global Post-Venture Capital Portfolio 1.07% 0.33% 0.00% 1.40%
(formerly, Warburg Pincus Trust - Post-Venture Capital
Portfolio)
Warburg Pincus Trust - International Equity Portfolio 1.00% 0.32% 0.00% 1.32%
Warburg Pincus Trust - Value Portfolio (formerly, Warburg 0.56% 0.44% 0.00% 1.00%
Pincus Trust - Growth & Income Portfolio)
</TABLE>
*Expenses are based on the estimated expenses that the new Service Shares class
of each Portfolio expects to incur in its initial fiscal year.
The expenses shown above are deducted by the underlying mutual fund before it
provides Nationwide with the daily net asset value. Nationwide then deducts
applicable variable account charges from the net asset value in calculating the
unit value of the corresponding sub-account. The management fees and other
expenses are more fully described in the prospectus for each underlying mutual
fund. Information relating to the underlying mutual funds was provided by the
underlying mutual funds and not independently verified by Nationwide.
10
<PAGE> 26
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been for
such funds without fee waivers and expense reimbursements.
<TABLE>
<CAPTION>
Management Other 12b-1 Total
Fees Expenses Fees Underlying
Mutual Fund
Expenses
<S> <C> <C> <C> <C>
Federated Insurance Series - Federated Quality Bond Fund II 0.60% 0.89% 0.25% 1.74%
Fidelity VIP Equity-Income Portfolio: Service Class 0.48% 0.09% 0.10% 0.67%
Fidelity VIP Growth Portfolio: Service Class 0.58% 0.09% 0.10% 0.77%
Fidelity VIP Overseas Portfolio: Service Class 0.73% 0.18% 0.10% 1.01%
Fidelity VIP II Contrafund(R)Portfolio: Service Class 0.58% 0.10% 0.10% 0.78%
Fidelity VIP III Growth Opportunities Portfolio: Service Class 0.58% 0.11% 0.10% 0.79%
NSAT Nationwide Balanced Fund 0.75% 0.25% 0.00% 1.00%
NSAT Nationwide Equity Income Fund 0.80% 0.29% 0.00% 1.09%
NSAT Nationwide Global 50 Fund (formerly, NSAT Nationwide 1.00% 0.54% 0.00% 1.54%
Global Equity Fund)
NSAT Nationwide High Income Bond Fund 0.80% 0.50% 0.00% 1.30%
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT Nationwide 0.88% 0.86% 0.00% 1.74%
Select Advisers Mid Cap Fund)
NSAT Nationwide Multi Sector Bond Fund 0.75% 0.27% 0.00% 1.02%
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT 1.10% 1.30% 0.00% 2.40%
Nationwide Select Advisers Small Cap Growth Fund)
NSAT Nationwide Small Cap Value Fund 0.90% 0.37% 0.00% 1.27%
NSAT Nationwide Strategic Growth Fund 0.90% 0.33% 0.00% 1.23%
NSAT Nationwide Strategic Value Fund 0.90% 0.32% 0.00% 1.22%
Neuberger Berman AMT Mid-Cap Growth Portfolio 0.93% 0.15% 0.00% 1.08%
The Universal Institutional Funds, Inc. - Emerging Markets 0.80% 0.98% 0.00% 1.78%
Debt Portfolio (formerly, Morgan Stanley Dean Witter Universal
Funds, Inc. - Emerging Markets Debt Portfolio)
The Universal Institutional Funds, Inc. - Mid Cap Growth 0.75% 7.31% 0.00% 8.06%
Portfolio
Van Eck Worldwide Insurance Trust - Worldwide Emerging Markets 1.00% 0.54% 0.00% 1.54%
Fund
Van Kampen Life Investment Trust - Morgan Stanley Real Estate 1.00% 0.13% 0.00% 1.13%
Securities Portfolio
Victory Variable Insurance Funds - Diversified Stock Fund: 0.30% 6.68% 0.00% 6.98%
Class A
Victory Variable Insurance Funds - Investment Quality Bond 0.20% 8.70% 0.00% 8.90%
Fund: Class A
Victory Variable Insurance Funds - Small Company Opportunity 0.30% 9.33% 0.00% 9.63%
Fund: Class A
Warburg Pincus Trust - Global Post-Venture Capital Portfolio 1.25% 0.33% 0.00% 1.58%
(formerly, Warburg Pincus Trust - Post-Venture Capital
Portfolio)
Warburg Pincus Trust - Value Portfolio (formerly, Warburg 0.75% 0.59% 0.00% 1.34%
Pincus Trust - Growth & Income Portfolio)
</TABLE>
11
<PAGE> 27
EXAMPLE
The following chart shows the amount of expenses (in dollars) that would be
incurred under this contract assuming a $1,000 investment, 5% annual return, and
no change in expenses. These dollar figures are illustrative only and should not
be considered a representation of past or future expenses. Actual expenses may
be greater or less than those shown below.
The example reflects expenses of both the variable account and the underlying
mutual funds. The example reflects an assumed variable account charge of 1.70%,
which is the maximum variable account charge for the maximum number of rider
options.
For those contracts that do not elect the maximum number of rider options, the
expenses would be reduced. Deductions for premium taxes are not reflected but
may apply.
<TABLE>
<CAPTION>
If you surrender your If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
applicable time period applicable time period time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
American Century Variable 88 131 168 282 25 77 132 282 * 77 132 282
Portfolios, Inc. - American
Century VP Income & Growth
American Century Variable 95 152 201 346 32 98 165 346 * 98 165 346
Portfolios, Inc. - American
Century VP International
American Century Variable 91 141 184 313 28 87 148 313 * 87 148 313
Portfolios, Inc. - American
Century VP Value
Dreyfus Investment Portfolios 94 149 197 338 31 95 161 338 * 95 161 338
- European Equity Portfolio
The Dreyfus Socially 89 134 173 291 26 80 137 291 * 80 137 291
Responsible Growth Fund, Inc.
Dreyfus Stock Index Fund, Inc. 84 118 145 235 21 64 109 235 * 64 109 235
Dreyfus Variable Investment 89 134 173 290 26 80 137 290 * 80 137 290
Fund - Appreciation Portfolio
(formerly, Dreyfus Variable
Investment Fund - Capital
Appreciation Portfolio)
Federated Insurance Series - 88 131 167 280 25 77 131 280 * 77 131 280
Federated Quality Bond Fund II
Fidelity VIP Equity-Income 88 130 166 278 25 76 130 278 * 76 130 278
Portfolio: Service Class
Fidelity VIP Growth 89 133 171 287 26 79 135 287 * 79 135 287
Portfolio: Service Class
Fidelity VIP High Income 89 134 173 291 26 80 137 291 * 80 137 291
Portfolio: Service Class
Fidelity VIP Overseas 91 140 183 311 28 86 147 311 * 86 147 311
Portfolio: Service Class
Fidelity VIP II Contrafund(R) 89 133 171 287 26 79 135 287 * 79 135 287
Portfolio: Service Class
Fidelity VIP III Growth 89 134 173 290 26 80 137 290 * 80 137 290
Opportunities Portfolio:
Service Class
</TABLE>
12
<PAGE> 28
<TABLE>
<CAPTION>
If you surrender your If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
applicable time period applicable time period time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Janus Aspen Series - Capital 91 139 181 307 28 85 145 307 * 85 145 307
Appreciation Portfolio:
Service Shares
Janus Aspen Series - Global 92 142 186 316 29 88 150 316 * 88 150 316
Technology Portfolio: Service
Shares
Janus Aspen Series - 91 141 185 314 28 87 149 314 * 87 149 314
International Growth
Portfolio: Service Shares
NSAT Capital Appreciation Fund 89 133 171 286 26 79 135 286 * 79 135 286
NSAT Government Bond Fund 88 130 166 277 25 76 130 277 * 76 130 277
NSAT Money Market Fund 87 126 160 265 24 72 124 265 * 72 124 265
NSAT Total Return Fund 88 132 169 284 25 78 133 284 * 78 133 284
NSAT Nationwide Balanced Fund 90 138 179 303 27 84 143 303 * 84 143 303
NSAT Nationwide Equity Income 91 139 181 308 28 85 145 308 * 85 145 308
Fund
NSAT Nationwide Global 50 93 147 194 333 30 93 158 333 * 93 158 333
Fund (formerly, NSAT
Nationwide Global Equity Fund)
NSAT Nationwide High Income 91 139 181 308 28 85 145 308 * 85 145 308
Bond Fund
NSAT Nationwide Mid Cap Index 92 142 186 316 29 88 150 316 * 88 150 316
Fund (formerly, NSAT
Nationwide Select Advisers
Mid Cap Fund)
NSAT Nationwide Multi Sector 90 138 179 303 27 84 143 303 * 84 143 303
Bond Fund
NSAT Nationwide Small Cap 95 150 199 343 32 96 163 343 * 96 163 343
Growth Fund (formerly, NSAT
Nationwide Select Advisers
Small Cap Growth Fund)
NSAT Nationwide Small Cap 92 142 187 318 29 88 151 318 * 88 151 318
Value Fund
NSAT Nationwide Small Company 93 146 192 328 30 92 156 328 * 92 156 328
Fund
NSAT Nationwide Strategic 91 141 184 313 28 87 148 313 * 87 148 313
Growth Fund
NSAT Nationwide Strategic 91 141 184 313 28 87 148 313 * 87 148 313
Value Fund
Neuberger Berman AMT Guardian 91 141 184 313 28 87 148 313 * 87 148 313
Portfolio
Neuberger Berman AMT Mid-Cap 91 141 184 313 28 87 148 313 * 87 148 313
Growth Portfolio
Neuberger Berman AMT Partners 90 137 177 300 27 83 141 300 * 83 141 300
Portfolio
</TABLE>
13
<PAGE> 29
<TABLE>
<CAPTION>
If you surrender your If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
applicable time period applicable time period time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oppenheimer Variable Account 88 131 167 279 25 77 131 279 * 77 131 279
Funds - Oppenheimer
Aggressive Growth Fund/VA
(formerly, Oppenheimer
Variable Account Funds -
Oppenheimer Capital
Appreciation Fund)
Oppenheimer Variable Account 88 131 168 282 25 77 132 282 * 77 132 282
Funds - Oppenheimer Capital
Appreciation Fund/VA
(formerly, Oppenheimer
Variable Account Funds -
Oppenheimer Growth Fund)
Oppenheimer Variable Account 88 131 168 281 25 77 132 281 * 77 132 281
Funds - Oppenheimer Global
Securities Fund/VA
Oppenheimer Variable Account 89 134 173 290 26 80 137 290 * 80 137 290
Funds - Oppenheimer Main
Street Growth & Income
Fund/VA(formerly, Oppenheimer
Variable Account Funds -
Oppenheimer Growth & Income
Fund)
Strong Opportunity Fund II, 93 145 191 327 30 91 155 327 * 91 155 327
Inc.
The Universal Institutional 96 154 206 355 33 100 170 355 * 100 170 355
Funds, Inc. - Emerging
Markets Debt Portfolio
(formerly, Morgan Stanley
Dean Witter Universal Funds,
Inc. - Emerging Markets Debt
Portfolio)
The Universal Institutional 92 142 187 318 29 88 151 318 * 88 151 318
Funds, Inc. - Mid Cap Growth
Portfolio
Van Eck Worldwide Insurance 95 152 201 346 32 98 165 346 * 98 165 346
Trust - Worldwide Emerging
Markets Fund
Van Eck Worldwide Insurance 94 149 197 339 31 95 161 339 * 95 161 339
Trust - Worldwide Hard Assets
Fund
Van Kampen Life Investment 92 144 189 323 29 90 153 323 * 90 153 323
Trust - Morgan Stanley Real
Estate Securities Portfolio
Victory Variable Insurance 89 134 173 290 26 80 137 290 * 80 137 290
Funds - Diversified Stock
Fund: Class A
Victory Variable Insurance 87 128 163 272 24 74 127 272 * 74 127 272
Funds - Investment Quality
Bond Fund: Class A
</TABLE>
14
<PAGE> 30
<TABLE>
<CAPTION>
If you surrender your If you do not surrender your If you annuitize your contract
contract at the end of the contract at the end of the at the end of the applicable
applicable time period applicable time period time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Victory Variable Insurance 89 133 171 287 26 79 135 287 * 79 135 287
Funds - Small Company
Opportunity Fund: Class A
Warburg Pincus Trust - Global 96 153 205 352 33 99 169 352 * 99 169 352
Post-Venture Capital
Portfolio (formerly, Warburg
Pincus Trust - Post-Venture
Capital Portfolio)
Warburg Pincus Trust - 95 151 200 345 32 97 164 345 * 97 164 345
International Equity Portfolio
Warburg Pincus Trust - Value 91 141 184 313 28 87 148 313 * 87 148 313
Portfolio (formerly, Warburg
Pincus Trust - Growth &
Income Portfolio)
</TABLE>
*Annuitization is not permitted during the first two contract years.
15
<PAGE> 31
SYNOPSIS OF THE CONTRACTS
The contracts described in this prospectus are modified single purchase payment
contracts. The contracts may be issued as either individual or group contracts.
In those states where contracts are issued as group contracts, references
throughout this prospectus to "contract(s)" will also mean "certificate(s)."
The contracts can be categorized as follows:
- Non-Qualified;
- Investment-only;
- Individual Retirement Annuities, with contributions rolled-over or
transferred from certain tax-qualified plans;
- Roth IRAs;
- Tax Sheltered Annuities, with contributions rolled-over or transferred
from other Tax Sheltered Annuities; and
- Charitable Remainder Trusts.
For more detailed information with regard to the differences in the contract
types, please see "Types of Contracts" later in this prospectus.
MINIMUM INITIAL AND SUBSEQUENT PURCHASE PAYMENTS
MINIMUM INITIAL MINIMUM
CONTRACT PURCHASE SUBSEQUENT
TYPE PAYMENT PAYMENTS
Non-Qualified $10,000 $1,000
Investment-only $10,000 $1,000
IRA $10,000 $1,000
Roth IRA $10,000 $1,000
Tax Sheltered Annuity $10,000 $1,000
Charitable Remainder $10,000 $1,000
Trust
Subsequent purchase payments are not permitted in Oregon, and may not be
permitted in other states under certain circumstances.
Guaranteed Term Options
Guaranteed Term Options are separate investment options under the contract. The
minimum amount that may be allocated to a Guaranteed Term Option is $1,000.
CHARGES AND EXPENSES
Nationwide deducts a Mortality and Expense Risk Charge equal to an annual rate
of 1.20% of the daily net assets of the variable account. Nationwide assesses
this charge in return for bearing certain mortality and expense risks, as well
as for administrative expenses.
Nationwide does not deduct a sales charge from purchase payments upon deposit
into the contract. However, Nationwide will deduct a CDSC if any amount is
withdrawn from the contract. This CDSC reimburses Nationwide for sales expenses.
The amount of the CDSC will not exceed 7% of purchase payments surrendered.
An optional death benefit is available under the contract. Nationwide will
deduct an additional charge equal to an annual rate of 0.05% of the daily net
assets of the variable account if the contract owner elects the 5% Enhanced
Death Benefit (see "Death Benefit Payment").
Two Guaranteed Minimum Income Benefit options are available under the contract.
If the contract owner elects one of the Guaranteed Minimum Income Benefit
options, Nationwide will deduct an additional charge at an annual rate of 0.45%
or 0.30% of the daily net assets of the variable account, depending on which
option was chosen (see "Guaranteed Minimum Income Benefits").
Upon annuitization of the contract, any amounts assessed for any rider options
elected will be waived and only those charges applicable to the base contract
will be assessed.
ANNUITY PAYMENTS
Annuity payments begin on the annuitization date. The payments will be based on
the annuity payment option chosen at the time of application (see "Annuity
Payment Options").
TAXATION
How a contract is taxed depends on the type of contract issued and the purpose
for which the contract is purchased. Nationwide will charge against the contract
any premium taxes levied by a state or other governmental entity (see
16
<PAGE> 32
"Federal Tax Considerations" and "Premium Taxes").
TEN DAY FREE LOOK
Contract owners may return the contract for any reason within ten days of
receipt and Nationwide will refund the contract value or other amounts required
by law (see "Right to Revoke").
FINANCIAL STATEMENTS
Financial statements for the variable account and Nationwide are located in the
Statement of Additional Information. A current Statement of Additional
Information may be obtained, without charge, by contacting Nationwide's home
office at the telephone number listed on page 3 of this prospectus.
CONDENSED FINANCIAL INFORMATION
The value of an accumulation unit is determined on the basis of changes in the
per share value of the underlying mutual funds and the assessment of a variable
account charge which may vary from contract to contract (for more information on
the calculation of accumulation unit values, see "Determining Variable Account
Value - Valuing an Accumulation Unit"). Please refer to Appendix B for
information regarding each class of accumulation units.
NATIONWIDE LIFE INSURANCE COMPANY
Nationwide is a stock life insurance company organized under Ohio law in March,
1929 with its home office at One Nationwide Plaza, Columbus, Ohio 43215.
Nationwide is a provider of life insurance, annuities and retirement products.
It is admitted to do business in all states, the District of Columbia and Puerto
Rico.
NATIONWIDE INVESTMENT SERVICES CORPORATION
The contracts are distributed by the general distributor, Nationwide Investment
Services Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio 43215. (For
contracts issued in the State of Michigan, all references to NISC shall mean
Nationwide Investment Svcs. Corporation.) NISC is a wholly owned subsidiary of
Nationwide.
TYPES OF CONTRACTS
The contracts described in this prospectus are classified according to the tax
treatment they are subject to under the Internal Revenue Code. The following is
a general description of the various types of contracts. Eligibility
requirements, tax benefits (if any), limitations, and other features of the
contracts will differ depending on the type of contract.
NON-QUALIFIED ANNUITY CONTRACTS
A Non-Qualified Annuity Contract is a contract that does not qualify for certain
tax benefits under the Internal Revenue Code, and which is not an IRA, a Roth
IRA or a Tax Sheltered Annuity.
Upon the death of the owner of a Non-Qualified Annuity Contract, mandatory
distribution requirements are imposed to ensure distribution of the entire
balance in the contract within a required period of time.
Non-Qualified Annuity contracts that are owned by natural persons allow for the
deferral of taxation on the income earned in the contract until it is
distributed or deemed to be distributed.
INDIVIDUAL RETIREMENT ANNUITIES (IRAS)
Individual Retirement Annuities are contracts that are issued by insurance
companies and satisfy the following requirements:
- the contract is not transferable by the owner;
- the premiums are not fixed;
- the annual premium cannot exceed $2,000 (although rollovers of greater
amounts from qualified plans, tax-sheltered annuities and other IRAs can be
received);
17
<PAGE> 33
- certain minimum distribution requirements must be satisfied after the owner
attains the age of 70 1/2;
- the entire interest of the owner in the contract is nonforfeitable; and
- after the death of the owner, additional distribution requirements may be
imposed to ensure distribution of the entire balance in the contract within
the statutory period of time.
Depending on the circumstance of the owner, all or a portion of the
contributions made to the account may be deducted for federal income tax
purposes.
Failure to make the mandatory distributions can result in an additional penalty
tax of 50% of the excess of the amount required to be distributed over the
amount that was actually distributed.
IRAs may receive rollover contributions from other Individual Retirement
Accounts and Individual Retirement Annuities, from Tax Sheltered Annuities, and
from qualified retirement plans, including 401(k) plans.
For further details regarding IRAs, please refer to the disclosure statement
provided when the IRA was established.
ROTH IRAS
Roth IRA contracts are contracts that are issued by insurance companies and
satisfy the following requirements:
- the contract is not transferable by the owner;
- the premiums are not fixed; o the annual premium cannot exceed $2,000
(although rollovers of greater amounts from other Roth IRAs and IRAs can be
received);
- the entire interest of the owner in the contract is nonforfeitable; and
- after the death of the owner, certain distribution requirements may be
imposed to ensure distribution of the entire balance in the contract within
the statutory period of time.
A Roth IRA can receive a rollover from an IRA; however, the amount rolled over
from the IRA to the Roth IRA is required to be included in the owner's federal
gross income at the time of the rollover, and will be subject to federal income
tax.
There are income limitations on eligibility to participate in a Roth IRA and
additional income limitations for eligibility to roll over amounts from an IRA
to a Roth IRA. For further details regarding Roth IRAs, please refer to the
disclosure statement provided when the Roth IRA was established.
TAX SHELTERED ANNUITIES
Certain tax-exempt organizations (described in section 501(c)(3) of the Internal
Revenue Code) and public school systems may establish a plan under which annuity
contracts can be purchased for their employees. These annuity contracts are
often referred to as Tax Sheltered Annuities.
Purchase payments made to Tax Sheltered Annuities are excludible from the income
of the employee, up to statutory maximum amounts. These amounts should be set
forth in the plan adopted by the employer.
The owner's interest in the contract is nonforfeitable (except for failure to
pay premiums) and cannot be transferred. Certain minimum distribution
requirements must be satisfied after the owner attains the age of 70 1/2, and
after the death of the owner. Additional distribution requirements may be
imposed to ensure distribution of the entire balance in the contract within the
statutory period of time.
QUALIFIED PLANS
Contracts that are owned by Qualified Plans are not intended to confer tax
benefits on the beneficiaries of the plan; they are used as investment vehicles
for the plan. The income tax consequences to the beneficiary of a Qualified Plan
are controlled by the operation of the plan, not by operation of the assets in
which the plan invests.
Beneficiaries of Qualified Plans should contact their employer and/or trustee of
the plan to
18
<PAGE> 34
obtain and review the plan, trust, summary plan description and other documents
for the tax and other consequences of being a participant in a qualified plan.
INVESTING IN THE CONTRACT
THE VARIABLE ACCOUNT AND UNDERLYING MUTUAL FUNDS
Nationwide Variable Account-9 is a variable account that contains the underlying
mutual funds listed in Appendix A. The variable account was established on May
22, 1997, pursuant to Ohio law. Although the variable account is registered with
the SEC as a unit investment trust pursuant to the Investment Company Act of
1940 ("1940 Act"), the SEC does not supervise the management of Nationwide or
the variable account.
Income, gains, and losses credited to, or charged against, the variable account
reflect the variable account's own investment experience and not the investment
experience of Nationwide's other assets. The variable account's assets are held
separately from Nationwide's assets and are not chargeable with liabilities
incurred in any other business of Nationwide. Nationwide is obligated to pay all
amounts promised to contract owners under the contracts.
The variable account is divided into sub-accounts, each corresponding to a
single underlying mutual fund. Nationwide uses the assets of each sub-account to
buy shares of the underlying mutual funds based on contract owner instructions.
There are two sub-accounts for each underlying mutual fund. One sub-account
contains shares attributable to accumulation units under Non-Qualified
Contracts. The other contains shares attributable to accumulation units under
Investment-only Contracts, Individual Retirement Annuities, Roth IRAs, and Tax
Sheltered Annuities.
Each underlying mutual fund's prospectus contains more detailed information
about that fund. Prospectuses for the underlying mutual funds should be read in
conjunction with this prospectus.
Underlying mutual funds in the variable account are NOT publicly traded funds.
They are only available as investment options in variable life insurance
policies or variable annuity contracts issued by life insurance companies, or in
some cases, through participation in certain qualified pension or retirement
plans.
The investment advisers of the underlying mutual funds may manage publicly
traded mutual funds with similar names and investment objectives. However, the
underlying mutual funds are NOT directly related to any publicly traded mutual
fund. Contract owners should not compare the performance of a publicly traded
fund with the performance of underlying mutual funds participating in the
variable account. The performance of the underlying mutual funds could differ
substantially from that of any publicly traded funds.
Voting Rights
Contract owners who have allocated assets to the underlying mutual funds are
entitled to certain voting rights. Nationwide will vote contract owner shares at
special shareholder meetings based on contract owner instructions. However, if
the law changes allowing Nationwide to vote in its own right, it may elect to do
so.
Contract owners with voting interests in an underlying mutual fund will be
notified of issues requiring the shareholders' vote as soon as possible before
the shareholder meeting. Notification will contain proxy materials and a form
with which to give Nationwide voting instructions. Nationwide will vote shares
for which no instructions are received in the same proportion as those that are
received.
The number of shares which a contract owner may vote is determined by dividing
the cash value of the amount they have allocated to an underlying mutual fund by
the net asset value of the underlying mutual fund. Nationwide will designate a
date for this determination not more than 90 days before the shareholder
meeting.
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Material Conflicts
The underlying mutual funds may be offered through separate accounts of other
insurance companies, as well as through other separate accounts of Nationwide.
Nationwide does not anticipate any disadvantages to this. However, it is
possible that a conflict may arise between the interests of the variable account
and one or more of the other separate accounts in which these underlying mutual
funds participate.
Material conflicts may occur due to a change in law affecting the operations of
variable life insurance policies and variable annuity contracts, or differences
in the voting instructions of the contract owners and those of other companies.
If a material conflict occurs, Nationwide will take whatever steps are necessary
to protect contract owners and variable annuity payees, including withdrawal of
the variable account from participation in the underlying mutual fund(s)
involved in the conflict.
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another underlying
mutual fund for shares already purchased or to be purchased in the future if
either of the following occurs:
1) shares of a current underlying mutual fund are no longer available for
investment; or
2) further investment in an underlying mutual fund is inappropriate.
No substitution, elimination, or combination of shares may take place without
the prior approval of the SEC.
GUARANTEED TERM OPTIONS
Guaranteed Term Options are separate investment options under the contract. A
Guaranteed Term Option prospectus should be read in conjunction with this
prospectus. The minimum amount that may be allocated to a Guaranteed Term Option
is $1,000. Allocations to the Guaranteed Term Options are not subject to
variable account charges.
Guaranteed Term Options provide a guaranteed rate of interest over four
different maturity durations: three (3), five (5), seven (7) or ten (10) years.
Note: The guaranteed term may last for up to 3 months beyond the 3, 5, 7, or 10
year period since every guaranteed term will end on the final day of a calendar
quarter.
For the duration selected, Nationwide will declare a guaranteed interest rate.
That rate will be credited to amounts allocated to the Guaranteed Term Option
UNLESS a distribution is taken for any reason before the maturity date. If a
distribution occurs before the maturity date, the amount distributed will be
subject to a market value adjustment. A market value adjustment can increase or
decrease the amount distributed depending on current interest rate fluctuations.
No market value adjustment will be applied if Guaranteed Term Option allocations
are held to maturity.
Because a market value adjustment can affect the value of a distribution, its
effects should be carefully considered before surrendering or transferring from
Guaranteed Term Options. When actual interest rates are higher than the
guaranteed rate, a market value adjustment would reduce the value of the amount
distributed. When actual interest rates are lower than the guaranteed rate, the
value of the amount distributed would increase.
Guaranteed Term Options are available only during the accumulation phase of a
contract. They are not available after the annuitization date. In addition,
Guaranteed Term Options are not available for use with asset rebalancing, Dollar
Cost Averaging, or systematic withdrawals.
Guaranteed Term Options may not be available in every state.
THE FIXED ACCOUNT
The fixed account is an investment option that is funded by assets of
Nationwide's general account. The general account contains all of Nationwide's
assets other than those in other Nationwide separate accounts. It is used to
support Nationwide's annuity and insurance
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obligations and may contain compensation for mortality and expense risks. The
general account is not subject to the same laws as the variable account and the
SEC has not reviewed material in this prospectus relating to the fixed account.
However, information relating to the fixed account is subject to federal
securities laws relating to the accuracy and completeness of prospectus
disclosure.
Purchase payments will be allocated to the fixed account by election of the
contract owner.
The investment income earned by the fixed account will be allocated to the
contracts at varying guaranteed interest rate(s) depending on the following
categories of fixed account allocations:
- New Money Rate - The rate credited on the fixed account allocation when the
contract is purchased or when subsequent purchase payments are made.
Subsequent purchase payments may receive different New Money Rates than the
rate when the contract was issued, since the New Money Rate is subject to
change based on market conditions.
- Variable Account to Fixed Rate - Allocations transferred from any of the
underlying investment options in the variable account to the fixed account
may receive a different rate. The rate may be lower than the New Money
Rate. There may be limits on the amount and frequency of movements from the
variable account to the fixed account.
- Renewal Rate - The rate available for maturing fixed account allocations
which are entering a new guarantee period. The contract owner will be
notified of this rate in a letter issued with the quarterly statements when
any of the money in the contract owner's fixed account matures. At that
time, the contract owner will have an opportunity to leave the money in the
fixed account and receive the Renewal Rate or the contract owner can move
the money to any of the other underlying mutual fund options.
- Dollar Cost Averaging Rate - From time to time, Nationwide may offer a more
favorable rate for an initial purchase payment into a new contract when
used in conjunction with a Dollar Cost Averaging program.
All of these rates are subject to change on a daily basis; however, once applied
to the fixed account, the interest rates are guaranteed until the end of the
calendar quarter during the12 month anniversary in which the fixed account
allocation occurs.
Credited interest rates are annualized rates - the effective yield of interest
over a one-year period. Interest is credited to each contract on a daily basis.
As a result, the credited interest rate is compounded daily to achieve the
stated effective yield.
The guaranteed rate for any purchase payment will be effective for not less than
twelve months. Nationwide guarantees that the rate will not be less than 3.0%
per year.
Any interest in excess of 3.0% will be credited to fixed account allocations at
Nationwide's sole discretion. The contract owner assumes the risk that interest
credited to fixed account allocations may not exceed the minimum guarantee of
3.0% for any given year.
Nationwide guarantees that the fixed account contract value will not be less
than the amount of the purchase payments allocated to the fixed account, plus
interest credited as described above, less surrenders and any applicable charges
including CDSC.
STANDARD CHARGES AND DEDUCTIONS
MORTALITY AND EXPENSE RISK CHARGE
Nationwide deducts a Mortality and Expense Risk Charge from the variable
account. This amount is computed on a daily basis and is equal to an annual rate
of 1.20% of the daily net assets of the variable account.
The Mortality Risk Charge compensates Nationwide for guaranteeing the annuity
purchase rates of the contracts. This guarantee ensures that the annuity
purchase rates will not
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change regardless of the death rates of annuity payees or the general
population. The Mortality Risk Charge also compensates Nationwide for risks
assumed in connection with the standard death benefit, but only partially
compensates Nationwide in connection with the optional death benefit, for which
there is a separate charge.
The Expense Risk Charge compensates Nationwide for guaranteeing that charges
will not increase regardless of actual expenses.
If the Mortality and Expense Risk Charge is insufficient to cover actual
expenses, the loss is borne by Nationwide.
CONTINGENT DEFERRED SALES CHARGE
No sales charge deduction is made from the purchase payments when amounts are
deposited into the contracts. However, if any part of the contract is
surrendered, Nationwide will, with certain exceptions, deduct a CDSC, as
described below. The CDSC will not exceed 7% of purchase payments surrendered.
The CDSC is calculated by multiplying the applicable CDSC percentage (noted
below) by the amount of purchase payments surrendered. For purposes of
calculating the CDSC, surrenders are considered to come first from the oldest
purchase payment made to the contract, then the next oldest purchase payment,
and so forth. Earnings are not subject to the CDSC, however, earnings may not be
distributed prior to the distribution of all purchase payments. For tax
purposes, a surrender is usually treated as a withdrawal of earnings first.
The CDSC applies as follows:
Number of Years from Date CDSC
of Purchase Payment Percentage
0 7%
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 0%
The CDSC is used to cover sales expenses, including commissions (maximum of
7.00% of purchase payments), production of sales material and other promotional
expenses. If expenses are greater than the CDSC, the shortfall will be made up
from Nationwide's general account, which may indirectly include portions of the
variable account charges, since Nationwide may generate a profit from these
charges.
All or a portion of any withdrawal may be subject to federal income taxes.
Contract owners taking withdrawals before age 59 1/2 may be subject to a 10%
penalty tax.
Waiver of Contingent Deferred Sales Charge
Each contract year, the contract owner may withdraw without a CDSC the greater
of:
(a) 10% of all purchase payments; or
(b) any amount withdrawn to meet minimum distribution requirements under
the Internal Revenue Code.
This CDSC-free privilege is non-cumulative. Free amounts not taken during any
given contract year cannot be taken as free amounts in a subsequent contract
year.
In addition, no CDSC will be deducted:
(1) upon the annuitization of contracts which have been in force for at
least two years;
(2) upon payment of a death benefit; or
(3) from any values which have been held under a contract for at least 7
years.
No CDSC applies to transfers among sub-accounts or between or among the
Guaranteed Term Options, the fixed account or the variable account. Nationwide
may waive the CDSC if a contract described in this prospectus is exchanged for
another Nationwide contract (or a contract of any of its affiliated insurance
companies). A CDSC may apply to the contract received in the exchange.
A contract held by a Charitable Remainder Trust may withdraw CDSC-free the
greater of (a) or (b), where:
(a) is the amount which would otherwise be available for withdrawal
without a CDSC; and
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(b) is the difference between the total purchase payments made to the
contract as of the date of the withdrawal (reduced by previous
withdrawals) and the contract value at the close of the day prior to
the date of the withdrawal.
The CDSC will not be eliminated if to do so would be unfairly discriminatory or
prohibited by state law.
Long Term Care Facility Provisions
No CDSC will be charged if:
- The third contract anniversary has passed; and
- The contract owner has been confined to a long-term care facility or
hospital for a continuous 90-day period that began after the contract issue
date.
Additionally, no CDSC will be charged if:
- The contract owner has been diagnosed by a physician to have a
terminal illness; and
- Nationwide receives and records a letter from that physician
indicating such diagnosis.
Written notice and proof of terminal illness or confinement for 90 days in a
hospital or long term care facility must be received in a form satisfactory to
Nationwide and recorded at Nationwide's home office prior to waiver of the CDSC.
For those contracts that have a non-natural person as the contract owner acting
as an agent for a natural person, the annuitant may exercise the rights of the
contract owner for the purposes described in this provision. If the non-natural
contract owner does NOT own the contract as an agent for a natural person (e.g.,
the contract owner is a corporation or a trust for the benefit of an entity),
the annuitant may NOT exercise the rights described in this provision.
PREMIUM TAXES
Nationwide will charge against the contract value any premium taxes levied by a
state or other government entity. Premium tax rates currently range from 0% to
5.0%. This range is subject to change. The method used to assess premium tax
will be determined by Nationwide at its sole discretion in compliance with state
law.
Nationwide currently deducts premium taxes from the contract either at:
(1) the time the contract is surrendered;
(2) annuitization; or
(3) such earlier date as Nationwide becomes subject to premium taxes.
Premium taxes may be deducted from death benefit proceeds.
OPTIONAL CONTRACT BENEFITS, CHARGES AND DEDUCTIONS
DEATH BENEFIT OPTION
If the contract owner chooses the 5% Enhanced Death Benefit, Nationwide will
deduct an additional charge equal to an annual rate of 0.05% of the daily net
assets of the variable account. This charge reimburses Nationwide for increased
expenses and mortality risks. The following death benefit may not be available
in every state.
5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greater of:
(1) the contract value; or
(2) the total of all purchase payments, less any amounts surrendered,
accumulated at 5% simple interest from the date of each purchase
payment or surrender to the most recent contract anniversary prior to
the annuitant's 86th birthday, less an adjustment for amounts
subsequently surrendered, plus purchase payments received since that
contract anniversary.
GUARANTEED MINIMUM INCOME BENEFIT OPTIONS
The contract owner can purchase one of two Guaranteed Minimum Income Benefit
options at the time of application. If elected, Nationwide
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will deduct an additional charge of either 0.45% or 0.30% of the daily net
assets of the variable account, depending on which option was chosen. Guaranteed
Minimum Income Benefit options provide for a minimum guaranteed value that may
replace the contract value as the amount to be annuitized under certain
circumstances. A Guaranteed Minimum Income Benefit may afford protection against
unfavorable investment performance.
Upon annuitization of the contract, any amounts assessed for any rider options
elected will be waived and only those charges applicable to the base contract
will be assessed.
SPOUSAL PROTECTION ANNUITY OPTION - AVAILABLE WITH THE STANDARD DEATH BENEFIT
ONLY
AN APPLICANT FOR AN INDIVIDUAL RETIREMENT ANNUITY OR A NON-QUALIFIED CONTRACT
MAY ELECT THE SPOUSAL PROTECTION OPTION AT NO ADDITIONAL COST. IF THE SPOUSAL
PROTECTION ANNUITY OPTION IS ELECTED THE CONTRACT MUST MEET THE FOLLOWING
REQUIREMENTS:
1. One or both of the spouses must be named as the contract owner. For
contracts issued as Individual Retirement Annuities, only the person for
whom the Individual Retirement Annuity is established may be named as the
sole contract owner.
2. Both spouses must be named as co-annuitants and both must be age 85 or
younger at the time the contract is issued.
3. No other person may be named as contract owner, joint owner, contingent
owner, annuitant, co-annuitant or primary beneficiary.
4. If both spouses are alive upon annuitization, the contract owner(s) must
specify which spouse is the annuitant upon whose continuation of life any
annuity payments involving life contingencies depend. For contracts issued
as Individual Retirement Annuities, the person to receive annuity payments
at the time of annuitization must be the contract owner.
Election of the Spousal Protection Annuity Option permits the following:
If one annuitant dies prior to annuitization of the contract, the surviving
spouse may continue the contract as the sole contract owner. If the surviving
spouse chooses to continue the contract, he or she may name a new beneficiary
but may not name another co-annuitant.
If the standard death benefit is higher than the contract value at the time of
the death of any annuitant, the contract value will be adjusted to equal the
standard death benefit amount.
CONTRACT OWNERSHIP
The contract owner has all rights under the contract. Purchasers who name
someone other than themselves as the contract owner will have no rights under
the contract.
Contract owners of Non-Qualified Contracts may name a new contract owner at any
time before the annuitization date. Any change of contract owner automatically
revokes any prior contract owner designation. Changes in contract ownership may
result in federal income taxation and may be subject to state and federal gift
taxes.
A change in contract ownership must be submitted in writing and recorded at
Nationwide's home office. Once recorded, the change will be effective as of the
date signed. However, the change will not affect any payments made or actions
taken by Nationwide before it was recorded.
The contract owner may also request a change in the annuitant, contingent
annuitant, contingent owner, beneficiary, or contingent beneficiary before the
annuitization date. These changes must be:
- on a Nationwide form;
- signed by the contract owner; and
- received at Nationwide's home office before the annuitization date.
Nationwide must review and approve any change requests. If the contract owner is
not a natural person and there is a change of the annuitant,
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distributions will be made as if the contract owner died at the time of the
change.
On the annuitization date, the annuitant will become the contract owner, unless
the contract owner is a Charitable Remainder Trust.
JOINT OWNERSHIP
Joint owners each own an undivided interest in the contract.
Contract owners can name a joint owner at any time before annuitization subject
to the following conditions:
- joint owners can only be named for Non-Qualified Contracts;
- joint owners must be spouses at the time joint ownership is requested,
unless state law requires Nationwide to allow non-spousal joint
owners;
- the exercise of any ownership right in the contract will generally
require a written request signed by both joint owners;
- an election in writing signed by both contract owners must be made to
authorize Nationwide to allow the exercise of ownership rights
independently by either joint owner; and
- Nationwide will not be liable for any loss, liability, cost, or
expense for acting in accordance with the instructions of either joint
owner.
CONTINGENT OWNERSHIP
The contingent owner is entitled to certain benefits under the contract if a
contract owner who is NOT the annuitant dies before the annuitization date and
there is no surviving joint owner.
The contract owner may name or change a contingent owner at any time before the
annuitization date. To change the contingent owner, a written request must be
submitted to Nationwide. Once Nationwide has recorded the change, it will be
effective as of the date it was signed, whether or not the contract owner was
living at the time it was recorded. The change will not effect any action taken
by Nationwide before the change was recorded.
ANNUITANT
The annuitant is the person who will receive annuity payments and upon whose
continuation of life any annuity payment involving life contingencies depends.
This person must be age 85 or younger at the time of contract issuance (age 83
or younger if electing a Guaranteed Minimum Income Benefit), unless Nationwide
approves a request for an annuitant of greater age. The annuitant may be changed
before the annuitization date with Nationwide's consent.
BENEFICIARY AND CONTINGENT BENEFICIARY
The beneficiary is the person who is entitled to the death benefit if the
annuitant dies before the annuitization date and there is no joint owner. The
contract owner can name more than one beneficiary. Multiple beneficiaries will
share the death benefit equally, unless otherwise specified.
The contract owner may change the beneficiary or contingent beneficiary during
the annuitant's lifetime by submitting a written request to Nationwide. Once
recorded, the change will be effective as of the date it was signed, whether or
not the annuitant was living at the time it was recorded. The change will not
effect any action taken by Nationwide before the change was recorded.
OPERATION OF THE CONTRACT
MINIMUM INITIAL AND SUBSEQUENT PURCHASE PAYMENTS
MINIMUM MINIMUM
CONTRACT INITIAL SUBSEQUENT
TYPE PURCHASE PAYMENTS
PAYMENT
Non-Qualified $10,000 $1,000
Investment-only $10,000 $1,000
IRA $10,000 $1,000
Roth IRA $10,000 $1,000
Tax Sheltered Annuity $10,000 $1,000
Charitable Remainder $10,000 $1,000
Trust
Subsequent purchase payments may not be permitted in states under certain
circumstances.
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Guaranteed Term Options
Guaranteed Term Options are separate investment options under the contract. The
minimum amount that may be allocated to a Guaranteed Term Option is $1,000.
PRICING
Initial purchase payments allocated to sub-accounts will be priced at the
accumulation unit value determined no later than 2 business days after receipt
of an order to purchase. The application and all necessary information must be
complete. If the application is not complete, Nationwide may retain a purchase
payment for up to 5 business days while attempting to complete it. If the
application is not completed within 5 business days, the prospective purchaser
will be informed of the reason for the delay. The purchase payment will be
returned unless the prospective purchaser specifically consents to allow
Nationwide to hold the purchase payment until the application is completed.
Subsequent purchase payments will be priced based on the next available
accumulation unit value after the payment is RECEIVED. The cumulative total of
all purchase payments under contracts issued by Nationwide on the life of any
one annuitant cannot exceed $1,000,000 without Nationwide's prior consent.
Purchase payments will not be priced when the New York Stock Exchange is closed
or on the following nationally recognized holidays:
- New Year's Day - Independence Day
- Martin Luther King, Jr. - Labor Day Day
- Presidents' Day - Thanksgiving
- Good Friday - Christmas
- Memorial Day
Nationwide also will not price purchase payments if:
(1) trading on the New York Stock Exchange is restricted;
(2) an emergency exists making disposal or valuation of securities held in
the variable account impracticable; or
(3) the SEC, by order, permits a suspension or postponement for the
protection of security holders.
Rules and regulations of the SEC will govern as to when the conditions described
in (2) and (3) exist. If Nationwide is closed on days when New York Stock
Exchange is open, contract value may be affected since the contract owner will
not have access to their account.
ALLOCATION OF PURCHASE PAYMENTS
Nationwide allocates purchase payments to sub-accounts, the fixed account,
and/or Guaranteed Term Options as instructed by the contract owner. Shares of
the underlying mutual funds allocated to the sub-accounts are purchased at net
asset value, then converted into accumulation units. Contract owners can change
allocations or make exchanges among the sub-accounts, fixed account or
Guaranteed Term Options. However, no change may be made that would result in an
amount less than 1% of the purchase payments being allocated to any sub-account.
Certain transactions may be subject to conditions imposed by the underlying
mutual funds, as well as those set forth in the contract.
DETERMINING THE CONTRACT VALUE
The contract value is the sum of:
1) the value of amounts allocated to the sub-accounts of the variable
account;
2) amounts allocated to the fixed account; and
3) amounts allocated to a Guaranteed Term Option.
If part or all of the contract value is surrendered, or charges are assessed
against the whole contract value, Nationwide will deduct a proportionate amount
from each of the sub-accounts, and amounts from the fixed account and Guaranteed
Term Options based on current cash values.
Determining Variable Account Value - Valuing an Accumulation Unit
Purchase payments or transfers allocated to sub-accounts are accounted for in
accumulation
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units. Accumulation unit values (for each sub-account) are determined by
calculating the net investment factor for the underlying mutual funds for the
current valuation period and multiplying that result with the accumulation unit
values determined on the previous valuation period.
Nationwide uses the net investment factor as a way to calculate the investment
performance of a sub-account from valuation period to valuation period. For each
sub-account, the net investment factor shows the investment performance of the
underlying mutual fund in which a particular sub-account invests, including the
charges assessed against that sub-account for a valuation period.
The net investment factor is determined by dividing (a) by (b), and then
subtracting (c) from the result, where:
(a) is:
(1) the net asset value of the underlying mutual fund as of the end
of the current valuation period; and
(2) the per share amount of any dividend or income distributions made
by the underlying mutual fund (if the ex-dividend date occurs
during the current valuation period);
(b) is the net asset value of the underlying mutual fund determined as of
the end of the preceding valuation period; and
(c) is a factor representing the daily variable account charges, which may
include charges for contract options chosen by the contract owner. The
factor is equal to an annual rate ranging from 1.20% to 1.70% of the
daily net assets of the variable account, depending on which contract
features the contract owner chose.
Based on the net investment factor, the value of an accumulation unit may
increase or decrease. Changes in the net investment factor may not be directly
proportional to changes in the net asset value of the underlying mutual fund
shares because of the deduction of variable account charges.
Though the number of accumulation units will not change as a result of
investment experience, the value of an accumulation unit may increase or
decrease from valuation period to valuation period.
Nationwide determines the value of the fixed account by:
1) adding all amounts allocated to the fixed account, minus any amounts
previously transferred or withdrawn; and
2) adding any interest earned on the amounts allocated.
Determining the Guaranteed Term Option Value
Nationwide determines the value of a Guaranteed Term Option by:
1) adding all amounts allocated to any Guaranteed Term Option, minus
amounts previously transferred or withdrawn (which may be subject to a
market value adjustment);
2) adding any interest earned on the amounts allocated to any Guaranteed
Term Option; and
3) subtracting charges deducted in accordance with the contract.
TRANSFERS PRIOR TO ANNUITIZATION
Transfers from the Fixed Account to the Variable Account or a Guaranteed Term
Option
Fixed account allocations may be transferred to the variable account or a
Guaranteed Term Option only upon reaching the end of an interest rate guarantee
period. Normally, Nationwide will permit 100% of such fixed account allocations
to be transferred to the variable account or a Guaranteed Term Option; however
Nationwide may, under certain economic conditions and at its discretion, limit
the maximum transferable amount. Under no circumstances will the maximum
transferable amount be less than 10% of the fixed account allocation reaching
the end of an interest rate
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guarantee period. Transfers of the fixed account allocations must be made within
45 days after reaching the end of an interest rate guarantee period.
Contract owners who use Dollar Cost Averaging may transfer from the fixed
account to the variable account (but not to Guaranteed Term Options) under the
terms of that program (see "Dollar Cost Averaging").
Transfers to the Fixed Account
Variable account allocations may be transferred to the fixed account at any
time. Normally, Nationwide will not restrict transfers from the variable account
to the fixed account; however, Nationwide may establish a maximum transfer limit
from the variable account to the fixed account. Except as noted below, under no
circumstances will the transfer limit be less than 10% of the current value of
the variable account, less any transfers made in the 12 months preceding the
date the transfer is requested, but not including transfers made prior to the
imposition of the transfer limit. However, where permitted by state law,
Nationwide reserves the right to refuse transfers or purchase payments to the
fixed account (whether from the variable account or a Guaranteed Term Option)
when the fixed account value is greater than or equal to 30% of the contract
value at the time the purchase payment is made or the transfer is requested.
Transfers from a Guaranteed Term Option
Transfers from a Guaranteed Term Option prior to maturity are subject to a
market value adjustment.
Transfers Among the Sub-Accounts
Allocations may be transferred among the sub-accounts once per valuation period.
TRANSFERS AFTER ANNUITIZATION
After annuitization, transfers may only be made on the anniversary of the
annuitization date.
TRANSFER REQUESTS
Nationwide will accept transfer requests in writing or, in those states that
allow them, over the telephone. Nationwide will use reasonable procedures to
confirm that telephone instructions are genuine and will not be liable for
following telephone instructions that it reasonably determined to be genuine.
Nationwide may withdraw the telephone exchange privilege upon 30 days written
notice to contract owners.
Amounts transferred to the variable account will receive the accumulation unit
value next determined after the transfer request is received.
Interest Rate Guarantee Period
The interest rate guarantee period is the period of time that
the fixed account interest rate is guaranteed to remain the same.
Within 45 days of the end of an interest rate guarantee period, transfers may be
made from the fixed account to the variable account or to the Guaranteed Term
Options. Nationwide will determine the amount that may be transferred and will
declare this amount at the end of the guarantee period. This amount will not be
less than 10% of the amount in the fixed account that is maturing.
For new purchase payments allocated to the fixed account, or transfers to the
fixed account from the variable account or a Guaranteed Term Option, this period
begins on the date of deposit or transfer and ends on the one year anniversary
of the deposit or transfer. The guaranteed interest rate period may last for up
to 3 months beyond the 1 year anniversary because guaranteed terms end on the
last day of a calendar quarter.
The interest rate guarantee period does not in any way refer to interest rate
crediting practices connected with Guaranteed Term Options.
During an interest rate guarantee period, transfers cannot be made from the
fixed account and amounts transferred to the fixed account must remain on
deposit.
Market Timing Firms
Some contract owners may use market timing firms or other third parties to make
transfers on their behalf. Generally, in order to take
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advantage of perceived market trends, market timing firms will submit transfer
or exchange requests on behalf of multiple contract owners at the same time.
Sometimes this can result in unusually large transfers of funds. These large
transfers might interfere with the ability of Nationwide or the underlying
mutual fund to process transactions. This can potentially disadvantage contract
owners not using market timing firms. To avoid this, Nationwide may modify
transfer and exchange rights of contract owners who use market timing firms (or
other third parties) to transfer or exchange funds on their behalf.
The exchange and transfer rights of individual contract owners will not be
modified in any way when instructions are submitted directly by the contract
owner, or by the contract owner's representative (as authorized by the execution
of a valid Nationwide Limited Power of Attorney Form).
To protect contract owners, Nationwide may refuse exchange and transfer
requests:
- submitted by any agent acting under a power of attorney on behalf of
more than one contract owner; or
- submitted on behalf of individual contract owners who have executed
pre-authorized exchange forms which are submitted by market timing
firms (or other third parties) on behalf of more than one contract
owner at the same time.
Nationwide will not restrict exchange rights unless Nationwide believes it to be
necessary for the protection of all contract owners.
RIGHT TO REVOKE
Contract owners have a ten day "free look" to examine the contract. The contract
may be returned to Nationwide's home office for any reason within ten days of
receipt and Nationwide will refund the contract value or another amount required
by law. The refunded contract value will reflect the deduction of any contract
charges, unless otherwise required by law. All Individual Retirement Annuity and
Roth IRA refunds will be a return of purchase payments. State and/or federal law
may provide additional free look privileges.
Liability of the variable account under this provision is limited to the
contract value in each sub-account on the date of revocation. Any additional
amounts refunded to the contract owner will be paid by Nationwide.
SURRENDER (REDEMPTION)
Contract owners may surrender some or all of their contract value before the
earlier of the annuitization date or the annuitant's death. Surrender requests
must be in writing and Nationwide may require additional information. When
taking a full surrender, the contract must accompany the written request.
Nationwide may require a signature guarantee.
Nationwide will pay any amounts surrendered from the sub-accounts within 7 days.
However, Nationwide may suspend or postpone payment when it is unable to price a
purchase payment or transfer.
PARTIAL SURRENDERS (PARTIAL REDEMPTIONS)
Nationwide will surrender accumulation units from the sub-accounts and an amount
from the fixed account and Guaranteed Term Options. The amount withdrawn from
each investment option will be in proportion to the value in each option at the
time of the surrender request.
A CDSC may apply. The contract owner may take the CDSC from either:
a) the amount requested; or
b) the contract value remaining after the contract owner has received the
amount requested.
If the contract owner does not make a specific election, any applicable CDSC
will be taken from the contract value remaining after the contract owner has
received the amount requested.
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FULL SURRENDERS (FULL REDEMPTIONS)
The contract value upon full surrender may be more or less than the total of all
purchase payments made to the contract. The contract value will reflect variable
account charges, underlying mutual fund charges and the investment performance
of the underlying mutual funds. A CDSC may apply.
SURRENDERS UNDER A TEXAS OPTIONAL RETIREMENT PROGRAM OR A LOUISIANA OPTIONAL
RETIREMENT PLAN
Redemption restrictions apply to contracts issued under the Texas Optional
Retirement Program or the Louisiana Optional Retirement Plan.
The Texas Attorney General has ruled that participants in contracts issued under
the Texas Optional Retirement Program may only take withdrawals if:
- the participant dies;
- the participant retires;
- the participant terminates employment due to total disability; or
- the participant that works in a Texas public institution of higher
education terminates employment.
A participant under a contract issued under the Louisiana Optional Retirement
Plan may only take distributions from the contract upon retirement or
termination of employment. All retirement benefits under this type of plan must
be paid as lifetime income; lump sum cash payments are not permitted, except for
death benefits.
Due to the restrictions described above, a participant under either of these
plans will not be able to withdraw cash values from the contract unless one of
the applicable conditions is met. However, contract value may be transferred to
other carriers, subject to any CDSC.
Nationwide issues this contract to participants in the Texas Optional Retirement
Program in reliance upon and in compliance with Rule 6c-7 of the Investment
Company Act of 1940. Nationwide issues this contract to participants in the
Louisiana Optional Retirement Plan in reliance upon and in compliance with an
exemptive order that Nationwide received from the SEC on August 22, 1990.
SURRENDERS UNDER A TAX SHELTERED ANNUITY
Contract owners of a Tax Sheltered Annuity may surrender part or all of their
contract value before the earlier of the annuitization date or the annuitant's
death, except as provided below:
A. Contract value attributable to contributions made under a qualified cash or
deferred arrangement (within the meaning of Internal Revenue Code Section
402(g)(3)(A)), a salary reduction agreement (within the meaning of Internal
Revenue Code Section 402(g)(3)(C)), or transfers from a Custodial Account
(described in Section 403(b)(7) of the Internal Revenue Code), may be
surrendered only:
1. when the contract owner reaches age 59 1/2, separates from service,
dies or becomes disabled (within the meaning of Internal Revenue Code
Section 72(m)(7)); or
2. in the case of hardship (as defined for purposes of Internal Revenue
Code Section 401(k)), provided that any such hardship surrender may NOT
include any income earned on salary reduction contributions.
B. The surrender limitations described in Section A also apply to:
1. salary reduction contributions to Tax Sheltered Annuities made for
plan years beginning after December 31, 1988;
2. earnings credited to such contracts after the last plan year beginning
before January 1, 1989, on amounts attributable to salary reduction
contributions; and
3. all amounts transferred from 403(b)(7) Custodial Accounts (except that
earnings and employer contributions as of December 31, 1988 in such
Custodial
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<PAGE> 46
Accounts may be withdrawn in the case of hardship).
C. Any distribution other than the above, including a ten day free look
cancellation of the contract (when available) may result in taxes,
penalties and/or retroactive disqualification of a Tax Sheltered Annuity.
In order to prevent disqualification of a Tax Sheltered Annuity after a ten day
free look cancellation, Nationwide will transfer the proceeds to another Tax
Sheltered Annuity upon proper direction by the contract owner.
These provisions explain Nationwide's understanding of current withdrawal
restrictions. These restrictions may change.
Distributions pursuant to Qualified Domestic Relations Orders will not violate
the restrictions stated above.
LOAN PRIVILEGE
The loan privilege is ONLY available to owners of Tax Sheltered Annuities. These
contract owners can take loans from the contract value beginning 30 days after
the contract is issued up to the annuitization date. Loans are subject to the
terms of the contract, the plan and the Internal Revenue Code. Nationwide may
modify the terms of a loan to comply with changes in applicable law.
MINIMUM & MAXIMUM LOAN AMOUNTS
Contract owners may borrow a minimum of $1,000, unless Nationwide is required by
law to allow a lesser minimum amount. Each loan must individually satisfy the
contract minimum amount.
Nationwide will calculate the maximum nontaxable loan amount based upon
information provided by the participant or the employer. Loans may be taxable if
a participant has additional loans from other plans. The total of all
outstanding loans must not exceed the following limits:
CONTRACT MAXIMUM OUTSTANDING LOAN
VALUES BALANCE ALLOWED
NON-ERISA PLANS up to up to 80% of contract
$20,000 value (not more than
$10,000)
$20,000 up to 50% of contract
and over value (not more than
$50,000*)
ERISA PLANS All up to 50% of contract
value (not more than
$50,000*)
*The $50,000 limits will be reduced by the highest outstanding balance owed
during the previous 12 months.
For salary reduction Tax Sheltered Annuities, loans may be secured only by the
contract value.
LOAN PROCESSING FEE
Nationwide charges a $25 loan processing fee at the time each new loan is
processed. This fee compensates Nationwide for expenses related to administering
and processing loans.
The fee is taken from the sub-accounts, fixed account, and Guaranteed Term
Options in proportion to the contract value at the time the loan is processed.
HOW LOAN REQUESTS ARE PROCESSED
All loans are made from the collateral fixed account. Nationwide transfers
accumulation units in proportion to the assets in each sub-account to the
collateral fixed account until the requested amount is reached. If there are not
enough accumulation units available in the contract to reach the requested loan
amount, Nationwide next transfers contract value from the fixed account. Any
remaining required collateral will be transferred from the Guaranteed Term
Options. Transfers from the Guaranteed Term Options may be subject to a market
value adjustment. No CDSC will be deducted on transfers related to loan
processing.
LOAN INTEREST
The outstanding loan balance in the collateral fixed account is credited with
interest until the loan is repaid in full. The interest rate will be 2.25% less
than the loan interest rate fixed by Nationwide. The interest rate is guaranteed
never to fall below 3.0%.
Specific loan terms are disclosed at the time of loan application or issuance.
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LOAN REPAYMENT
Loans must be repaid in five years. However, if the loan is used to purchase the
contract owner's principal residence, the contract owner has 15 years to repay
the loan.
Contract owners must identify loan repayments as loan repayments or they will be
treated as purchase payments and will not reduce the outstanding loan. Payments
must be substantially level and made at least quarterly.
Loan repayments will consist of principal and interest in amounts set forth in
the loan agreement. Repayments are allocated to the sub-accounts in accordance
with the contract, unless Nationwide and the contract owner have agreed to amend
the contract at a later date on a case by case basis.
Loan repayments to the Guaranteed Term Options must be at least $1,000. If the
proportional share of the repayment to the Guaranteed Term Option is less than
$1,000, that portion of the repayment will be allocated to the NSAT-Money Market
Fund unless the contract owner directs otherwise.
DISTRIBUTIONS & ANNUITY PAYMENTS
Distributions made from the contract while a loan is outstanding will be reduced
by the amount of the outstanding loan plus accrued interest if:
- the contract is surrendered;
- the contract owner/annuitant dies;
- the contract owner who is not the annuitant dies prior to
annuitization; or
- annuity payments begin.
TRANSFERRING THE CONTRACT
Nationwide reserves the right to restrict any transfer of the contract while the
loan is outstanding.
GRACE PERIOD & LOAN DEFAULT
If a loan payment is not made when due, interest will continue to accrue. A
grace period may be available (please refer to the terms of the loan agreement).
If a loan payment is not made by the end of the applicable grace period, the
entire loan will be treated as a deemed distribution and will be taxable to the
borrower. This deemed distribution may also be subject to an early withdrawal
tax penalty by the Internal Revenue Service.
After default, interest will continue to accrue on the loan. Defaulted amounts,
plus interest, are deducted from the contract value when the participant is
eligible for a distribution of at least that amount. Additional loans are not
available while a previous loan is in default.
ASSIGNMENT
Contract rights are personal to the contract owner and may not be assigned
without Nationwide's written consent.
A Non-Qualified Contract owner may assign some or all rights under the contract.
An assignment must occur before annuitization while the annuitant is alive. Once
proper notice of assignment is recorded by Nationwide's home office, the
assignment will become effective as of the date the written request was signed.
Investment-only Contracts, Individual Retirement Annuities, Roth IRAs, and Tax
Sheltered Annuities may not be assigned, pledged or otherwise transferred except
where allowed by law.
Nationwide is not responsible for the validity or tax consequences of any
assignment. Nationwide is not liable for any payment or settlement made before
the assignment is recorded. Assignments will not be recorded until Nationwide
receives sufficient direction from the contract owner and the assignee regarding
the proper allocation of contract rights.
Amounts pledged or assigned will be treated as distributions and will be
included in gross income to the extent that the cash value exceeds the
investment in the contract for the taxable year in which it was pledged or
assigned. Amounts assigned may be subject to a tax
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penalty equal to 10% of the amount included in gross income.
Assignment of the entire contract value may cause the portion of the contract
value exceeding the total investment in the contract and previously taxed
amounts to be included in gross income for federal income tax purposes each year
that the assignment is in effect.
CONTRACT OWNER SERVICES
ASSET REBALANCING
Asset rebalancing is the automatic reallocation of contract values to the
sub-accounts on a predetermined percentage basis. Asset rebalancing is not
available for assets held in the fixed account or the Guaranteed Term Options.
Requests for asset rebalancing must be on a Nationwide form.
Asset rebalancing occurs every three months or on another frequency if permitted
by Nationwide. If the last day of the three month period falls on a Saturday,
Sunday, recognized holiday, or any other day when the New York Stock Exchange is
closed, asset rebalancing will occur on the next business day.
Asset rebalancing may be subject to employer limitations or restrictions for
contracts issued to a Tax Sheltered Annuity plan. Contract owners should consult
a financial adviser to discuss the use of asset rebalancing.
Nationwide reserves the right to stop establishing new asset rebalancing
programs. Nationwide also reserves the right to assess a processing fee for this
service.
DOLLAR COST AVERAGING
Dollar Cost Averaging is a long-term transfer program that allows you to make
regular, level investments over time. It involves the automatic transfer of a
specified amount from the fixed account and/or certain sub-accounts into other
sub-accounts. Nationwide does not guarantee that this program will result in
profit or protect contract owners from loss.
Contract owners direct Nationwide to automatically transfer specified amounts
from the fixed account and the Federated Insurance Series - Federated Quality
Bond Fund II, Fidelity VIP High Income Portfolio, NSAT Government Bond Fund,
NSAT Nationwide High Income Bond Fund, and NSAT Money Market Fund to any other
underlying mutual fund. Dollar Cost Averaging transfers may not be directed to
Guaranteed Term Options.
Transfers occur monthly or on another frequency if permitted by Nationwide.
Nationwide will process transfers until either the value in the originating
investment option is exhausted, or the contract owner instructs Nationwide in
writing to stop the transfers.
Nationwide reserves the right to stop establishing new Dollar Cost Averaging
programs. Nationwide also reserves the right to assess a processing fee for this
service.
Dollar Cost Averaging from the Fixed Account
Transfers from the fixed account must be equal to or less than 1/30th of the
fixed account value at the time the program is requested. A Dollar Cost
Averaging program which transfers amounts from the fixed account to the variable
account is not the same as an Enhanced Rate Dollar Cost Averaging program.
Contract owners that wish to utilize Dollar Cost Averaging from the fixed
account should first inquire whether any Enhanced Rate Dollar Cost Averaging
programs are available.
Enhanced Rate Dollar Cost Averaging
Nationwide may, from time to time, offer Enhanced Rate Dollar Cost Averaging
programs. Contract owners may participate in this program if their contract
value is $10,000 or more. Dollar Cost Averaging transfers for this program may
only be made from the fixed account. Such Enhanced Rate Dollar Cost Averaging
programs allow the contract owner to earn a higher rate of interest on assets in
the fixed account than would normally be credited when not participating in the
program. Each enhanced interest rate is guaranteed for as long as the
corresponding program is in effect.
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Nationwide will process transfers until either amounts in the enhanced rate
fixed account are exhausted, or the contract owner instructs Nationwide in
writing to stop the transfers. For this program only, when a written request to
discontinue transfers is received, Nationwide will automatically transfer the
remaining amount in the enhanced rate fixed account to the NSAT Money Market
Fund.
SYSTEMATIC WITHDRAWALS
Systematic withdrawals allow contract owners to receive a specified amount (of
at least $100) on a monthly, quarterly, semi-annual, or annual basis. Requests
for systematic withdrawals and requests to discontinue systematic withdrawals
must be in writing.
The withdrawals will be taken from the sub-accounts and the fixed account
proportionately unless Nationwide is instructed otherwise. Systematic
withdrawals are not available from the Guaranteed Term Options.
Nationwide will withhold federal income taxes from systematic withdrawals unless
otherwise instructed by the contract owner. The Internal Revenue Service may
impose a 10% penalty tax if the contract owner is under age 59 1/2 unless the
contract owner has made an irrevocable election of distributions of
substantially equal payments.
If the contract owner takes systematic withdrawals, the maximum amount that can
be withdrawn annually without a CDSC is the greatest of:
1) 10% of all purchase payments made to the contract as of the withdrawal
date;
2) an amount withdrawn to meet minimum distribution requirements under
the Internal Revenue Code; or
3) a percentage of the contract value based on the contract owner's age,
as shown in the table that follows:
CONTRACT OWNER'S PERCENTAGE OF
AGE CONTRACT VALUE
Under age 59 1/2 5%
Age 59 1/2through age 61 7%
Age 62 through age 64 8%
Age 65 through age 74 10%
Age 75 and over 13%
Contract value and contract owner's age are determined as of the date the
request for the withdrawal program is recorded by Nationwide's home office. For
joint owners, the older joint owner's age will be used.
If total amounts withdrawn in any contract year exceed the CDSC-free amount
described above, those amounts will only be eligible for the 10% of purchase
payment CDSC-free withdrawal privilege described in the "Contingent Deferred
Sales Charge" section. The total amount of CDSC for that contract year will be
determined in accordance with that provision.
The CDSC-free withdrawal privilege for systematic withdrawals is non-cumulative.
Free amounts not taken during any contract year cannot be taken as free amounts
in a subsequent contract year.
Nationwide reserves the right to stop establishing new systematic withdrawal
programs. Nationwide also reserves the right to assess a processing fee for this
service. Systematic withdrawals are not available before the end of the ten day
free look period (see "Right to Revoke").
ANNUITY COMMENCEMENT DATE
The annuity commencement date is the date on which annuity payments are
scheduled to begin. The contract owner may change the annuity commencement date
before annuitization. This change must be in writing and approved by Nationwide.
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ANNUITIZING THE CONTRACT
ANNUITIZATION DATE
The annuitization date is the date that annuity payments begin. It will be the
first day of a calendar month unless otherwise agreed, and must be at least 2
years after the contract is issued. If the contract is issued to fund a Tax
Sheltered Annuity, annuitization may occur during the first 2 years subject to
Nationwide's approval.
ANNUITIZATION
Annuitization is the period during which annuity payments are received. It is
irrevocable once payments have begun. Upon arrival of the annuitization date,
the annuitant must choose:
(1) an annuity payment option; and
(2) either a fixed payment annuity, variable payment annuity, or an available
combination.
Nationwide guarantees that each payment under a fixed payment annuity will be
the same throughout annuitization. Under a variable payment annuity, the amount
of each payment will vary with the performance of the underlying mutual funds
chosen by the contract owner.
FIXED PAYMENT ANNUITY
A fixed payment annuity is an annuity where the amount of the annuity payments
remains level.
The first payment under a fixed payment annuity is determined on the
annuitization date on an "age last birthday" basis by:
1) deducting applicable
premium taxes from the total contract value; then
2) applying the contract value amount specified by the contract owner to the
fixed payment annuity table for the annuity payment option elected.
Subsequent payments will remain level unless the annuity payment option elected
provides otherwise. Nationwide does not credit discretionary interest during
annuitization.
VARIABLE PAYMENT ANNUITY
A variable payment annuity is an annuity where the amount of the annuity
payments will vary depending on the performance of the underlying mutual funds
selected.
--------------------------------------------------------------------------------
A VARIABLE PAYMENT ANNUITY MAY NOT BE ELECTED WHEN EXERCISING A GUARANTEED
MINIMUM INCOME BENEFIT OPTION.
--------------------------------------------------------------------------------
The first payment under a variable payment annuity is determined on the
annuitization date on an "age last birthday" basis by:
1) deducting applicable premium taxes from the total contract value; then
2) applying the contract value amount specified by the contract owner to
the variable payment annuity table for the annuity payment option
elected.
The dollar amount of the first payment is converted into a set number of annuity
units that will represent each monthly payment. This is done by dividing the
dollar amount of the first payment by the value of an annuity unit as of the
annuitization date. This number of annuity units remains fixed during
annuitization.
The second and subsequent payments are determined by multiplying the fixed
number of annuity units by the annuity unit value for the valuation period in
which the payment is due. The amount of the second and subsequent payments will
vary with the performance of the selected underlying mutual funds. Nationwide
guarantees that variations in mortality experience from assumptions used to
calculate the first payment will not affect the dollar amount of the second and
subsequent payments.
Assumed Investment Rate
An assumed investment rate is the percentage rate of return assumed to determine
the amount of the first payment under a variable payment annuity. Nationwide
uses the assumed investment rate of 3.5% to calculate the first annuity payment
and to calculate the investment performance of an underlying mutual fund in
order to determine subsequent payments under a
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<PAGE> 51
variable payment annuity. An assumed investment rate is the percentage rate of
return required to maintain level variable annuity payments. Subsequent variable
annuity payments may be more or less than the first payment based on whether
actual investment performance of the underlying mutual funds is higher or lower
than the assumed investment rate of 3.5%.
Value of an Annuity Unit
Annuity unit values for sub-accounts are determined by multiplying the net
investment factor for the valuation period for which the annuity unit is being
calculated by the immediately preceding valuation period's annuity unit value,
and multiplying the result by an interest factor to neutralize the assumed
investment rate of 3.5% per annum built into the variable payment annuity
purchase rate basis in the contracts.
Exchanges among Underlying Mutual Funds
Exchanges among underlying mutual funds during annuitization must be in writing.
Exchanges may only be made on each anniversary of the annuitization date.
FREQUENCY AND AMOUNT OF ANNUITY PAYMENTS
Payments are made based on the annuity payment option selected, unless:
- the amount to be distributed is less than $5,000, in which case Nationwide
may make one lump sum payment of the contract value; or
- an annuity payment would be less than $50, in which case Nationwide can
change the frequency of payments to intervals that will result in payments
of at least $50. Payments will be made at least annually.
GUARANTEED MINIMUM INCOME BENEFIT OPTIONS ("GMIB")
What is a GMIB?
A GMIB is a benefit which ensures the availability of a minimum amount when the
contract owner wishes to annuitize the contract. This minimum amount, referred
to as the Guaranteed Annuitization Value, may be used at specified times to
provide a guaranteed level of determinable lifetime annuity payments. The GMIB
may provide protection in the event of lower contract values that may result
from the investment performance of the contract.
How is the Guaranteed Annuitization Value Determined?
There are two options available at the time of application. The Guaranteed
Annuitization Value is determined differently based on which option the contract
owner elects.
Calculation Under GMIB Option 1
The Guaranteed Annuitization Value is equal to (a) - (b), but will never be
greater than 200% of all purchase payments, where:
(a) is the sum of all purchase payments, plus interest accumulated at a
compounded annual rate of 5% starting at the date of issue and ending
on the contract anniversary occurring immediately prior to the
annuitant's 86th birthday;
(b) is the reduction to (a) due to surrenders made from the contract. All
such reductions will be proportionately the same as reductions to the
contract value caused by surrenders. For example, a surrender which
reduces the contract value by 25% will also reduce the Guaranteed
Annuitization Value by 25%.
Special Restrictions for GMIB Option 1
After the first contract year, if the value of the contract owner's fixed
account allocation becomes greater than 30% of the contract value in any
contract year due to:
(1) the application of additional purchase payments;
(2) surrenders; or
(3) transfers from the variable account,
then 0% interest will accrue in that contract year for purposes of calculating
the Guaranteed Annuitization Value.
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If the contract owner's fixed account allocation becomes greater than 30% of the
contract value solely as a result of fluctuations in the value of the variable
account, then interest will continue to accrue for the purposes of the
Guaranteed Annuitization Value at 5% annually, subject to the other terms and
conditions outlined herein.
Calculation Under GMIB Option 2
The Guaranteed Annuitization Value will be equal to the highest contract value
on any contract anniversary occurring prior to the annuitant's 86th birthday,
less an adjustment for amounts surrendered, plus purchase payments received
after that contract anniversary. If the contract owner elects to annuitize the
contract using this GMIB option prior to the first contract anniversary, the
Guaranteed Annuitization Value will be equal to the amount of purchase payments
paid, less an adjustment for amounts surrendered.
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GMIB Illustrations
The following charts illustrate the amount of income that will be provided to an
annuitant if the contract owner annuitizes the contract at the 7th, 10th or 15th
contract anniversary date, using a GMIB.
The illustrations assume the following:
- An initial purchase payment of $100,000 is made to the contract and allocated
to the variable account;
- There are no surrenders from the contract or
transfers to the fixed account (raising the fixed account value to greater than
30% of the contract value);
- The contract is issued to a MALE at age 55, 65 or 70;
- A Life Annuity with 120 Months Guaranteed Fixed Payment Annuity Option is
elected.
<TABLE>
<CAPTION>
7 Years in Accumulation
$140,710.04 for GMIB at Annuitization
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
<S> <C> <C> <C>
55 62 $4.72 $664.15
65 72 $5.96 $838.63
70 77 $5.79 $955.42
</TABLE>
<TABLE>
<CAPTION>
10 Years in Accumulation
$162,889.46 for GMIB at Annuitization
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
<S> <C> <C> <C>
55 65 $5.03 $819.33
65 75 $6.44 $1,049.01
70 80 $7.32 $1,192.35
</TABLE>
<TABLE>
<CAPTION>
15 Years in Accumulation
$200,000.00 for GMIB at Annuitization
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
<S> <C> <C> <C>
55 70 $5.66 $1,132.00
65 80 $7.32 $1,464.00
70 85 $8.18 $1,636.00
</TABLE>
*Guaranteed Monthly Benefit per $1,000 applied.
The illustrations should be used as a tool to assist an investor in determining
whether purchasing and exercising a GMIB option is right for them. The
guaranteed purchase rates assumed in the illustrations may not apply in some
states, or for contracts issued under an employer sponsored plan. Different
guaranteed purchase rates will also apply for females, for males who annuitize
at ages other than the ages shown above, or for annuitizations under other
annuity payment options. Where different guaranteed purchase rates apply, GMIB
amounts shown above will be different. In all cases, the guaranteed purchase
rates used to calculate the GMIB will be the same as the purchase rates
guaranteed in the contract for fixed annuitizations without the GMIB.
The purchase rates available in connection with annuitization options under a
GMIB are minimum guaranteed purchase rates. Alternative purchase rates, which
may be more favorable, may apply to annuitizations which occur without a GMIB
option.
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When May the Guaranteed Annuitization Value be Used?
The contract owner may use the Guaranteed Annuitization Value by annuitizing the
contract during the thirty day period following any contract anniversary:
(1) after the contract has been in effect for seven years; AND
(2) the annuitant has attained age 60.
What Annuity Payment Options May Be Used With the Guaranteed Annuitization
Value?
The contract owner may elect any life contingent FIXED ANNUITY PAYMENT OPTION
calculated using the guaranteed annuity purchase rates set forth in the
contract. Such Fixed Annuity Payment Options include:
- Life Annuity;
- Joint and Last Survivor Annuity; and
- Life Annuity with 120 or 240 Monthly Payments Guaranteed.
Other GMIB Terms and Conditions
**PLEASE READ CAREFULLY**
- The GMIB must be elected at the time of application.
- The annuitant must be age 82 or younger at the time the contract is
issued.
The GMIB is irrevocable and will remain for as long as the contract remains in
force.
--------------------------------------------------------------------------------
IMPORTANT CONSIDERATIONS TO KEEP IN MIND REGARDING THE GMIB OPTION
While a GMIB does provide a Guaranteed Annuitization Value, A GMIB MAY NOT BE
APPROPRIATE FOR ALL INVESTORS and should be understood completely and analyzed
thoroughly before being elected.
- A GMIB DOES NOT in any way guarantee the performance of any underlying
mutual fund, or any other investment option available under the
contract.
- Once elected, the GMIB is irrevocable, meaning that even if the
investment performance of underlying mutual funds or other available
investment options surpasses the minimum guarantees associated with
the GMIB, the GMIB charges will still be assessed.
- The GMIB in no way restricts or limits the rights of contract owners
to annuitize the contract at other times permitted under the contract,
nor will it in any way restrict the right to annuitize the contract
using contract values that may be higher than the Guaranteed
Annuitization Value.
- Please take advantage of the guidance of a qualified financial adviser
in evaluating the GMIB options, and all other aspects of the contract.
- GMIB may not be approved in all state jurisdictions.
--------------------------------------------------------------------------------
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ANNUITY PAYMENT OPTIONS
Contract owners must elect an annuity payment option before the annuitization
date. The annuity payment options are:
(1) LIFE ANNUITY - An annuity payable periodically, but at least annually, for
the lifetime of the annuitant. Payments will end upon the annuitant's
death. For example, if the annuitant dies before the second annuity payment
date, the annuitant will receive only one annuity payment. The annuitant
will only receive two annuity payments if he or she dies before the third
annuity payment date, and so on.
(2) JOINT AND LAST SURVIVOR ANNUITY - An annuity payable periodically, but at
least annually, during the joint lifetimes of the annuitant and a
designated second individual. If one of these parties dies, payments will
continue for the lifetime of the survivor. As is the case under option 1,
there is no guaranteed number of payments. Payments end upon the death of
the last surviving party, regardless of the number of payments received.
(3) LIFE ANNUITY WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED - An annuity
payable monthly during the lifetime of the annuitant. If the annuitant dies
before all of the guaranteed payments have been made, payments will
continue to the end of the guaranteed period and will be paid to a designee
chosen by the annuitant at the time the annuity payment option was elected.
The designee may elect to receive the present value of the remaining
guaranteed payments in a lump sum. The present value will be computed as of
the date Nationwide receives the notice of the annuitant's death.
Not all of the annuity payment options may be available in all states. Contract
owners may request other options before the annuitization date. These options
are subject to Nationwide's approval.
No distribution for Non-Qualified Contracts will be made until an annuity
payment option has been elected. Individual Retirement Annuities and Tax
Sheltered Annuities are subject to the "minimum distribution" requirements set
forth in the plan, contract, and the Internal Revenue Code.
DEATH BENEFITS
DEATH OF CONTRACT OWNER - NON-QUALIFIED CONTRACTS
If the contract owner who is not the annuitant dies before the annuitization
date, the joint owner becomes the contract owner. If no joint owner is named,
the contingent owner becomes the contract owner. If no contingent owner is
named, the last surviving contract owner's estate becomes the contract owner.
If the contract owner and annuitant are the same, and the contract
owner/annuitant dies before the annuitization date, the contingent owner will
not have any rights in the contract unless the contingent owner is also the
beneficiary.
Distributions under Non-Qualified Contracts will be made pursuant to the
"Required Distributions for Non-Qualified Contracts" provision.
DEATH OF ANNUITANT - NON-QUALIFIED CONTRACTS
If the annuitant who is not a contract owner dies before the annuitization date,
a death benefit is payable to the beneficiary unless a contingent annuitant is
named. If a contingent annuitant is named, the contingent annuitant becomes the
annuitant and no death benefit is payable.
The beneficiary may elect to receive the death benefit:
(1) in a lump sum;
(2) as an annuity; or
(3) in any other manner permitted by law and approved by Nationwide.
The beneficiary must notify Nationwide of this election within 60 days of the
annuitant's death.
If no beneficiaries survive the annuitant, the contingent beneficiary(ies)
receives the death
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benefit. Contingent beneficiaries will share the death benefit equally, unless
otherwise specified.
If no beneficiaries or contingent beneficiaries survive the annuitant, the
contract owner or the last surviving contract owner's estate will receive the
death benefit.
If the contract owner is a Charitable Remainder Trust and the annuitant dies
before the annuitization date, the death benefit will accrue to the Charitable
Remainder Trust. Any designation in conflict with the Charitable Remainder
Trust's right to the death benefit will be void.
If the annuitant dies after the annuitization date, any benefit that may be
payable will be paid according to the selected annuity payment option.
DEATH OF CONTRACT OWNER/ANNUITANT
If a contract owner who is also the annuitant dies before the annuitization
date, a death benefit is payable according to the "Death of Annuitant -
Non-Qualified Contracts" provision.
A joint owner will receive a death benefit if a contract owner/annuitant dies
before the annuitization date.
If the contract owner/annuitant dies after the annuitization date, any benefit
that may be payable will be paid according to the selected annuity payment
option.
DEATH BENEFIT PAYMENT
Contract owners may select one of two death benefits available under the
contract at the time of application (not all death benefit options may be
available in all states). If no selection is made at the time of application,
the death benefit will be the One-Year Step Up Death Benefit.
The death benefit value is determined as of the date Nationwide receives:
(1) proper proof of the annuitant's death;
(2) an election specifying the distribution method; and
(3) any state required form(s).
If a contract owner who is also the annuitant dies, and the beneficiary is the
contract owner/ annuitant's spouse who is:
(a) eligible to continue the contract; and
(b) entitled to a death benefit,
then the spousal-beneficiary shall have the option of continuing the contract
with the contract value adjusted to include the difference between the death
benefit (if greater than the contract value) and the contract value at the time
of the contract owner/annuitant's death.
One-Year Step Up Death Benefit (Standard Death Benefit)
If the annuitant dies before the annuitization date, the death benefit will be
the greatest of:
(1) the contract value;
(2) the total of all purchase payments, less an adjustment for amounts
surrendered; or
(3) the highest contract value on any contract anniversary prior to the
annuitant's 86th birthday, less an adjustment for amounts subsequently
surrendered, plus purchase payments received after that contract
anniversary.
The adjustment for amounts surrendered will reduce items (2) and (3) above in
the same proportion that the contract value was reduced on the date(s) of the
partial surrender(s).
5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greater of:
(2) the contract value; or
(3) the total of all purchase payments, less any amounts surrendered,
accumulated at 5% simple interest from the date of each purchase
payment or surrender to the most recent contract anniversary prior to
the annuitant's 86th birthday, less an adjustment for amounts
subsequently surrendered, plus purchase payments received since that
contract anniversary.
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The total accumulated amount will not exceed 200% of the net of purchase
payments and amounts surrendered. The adjustment for amounts subsequently
surrendered after the most recent contract anniversary will reduce the 5%
interest anniversary value in the same proportion that the contract value was
reduced on the date(s) of the partial surrender(s).
REQUIRED DISTRIBUTIONS
REQUIRED DISTRIBUTIONS FOR NON-QUALIFIED CONTRACTS
Internal Revenue Code Section 72(s) requires Nationwide to make certain
distributions when a contract owner dies. The following distributions will be
made according to those requirements:
1) If any contract owner dies on or after the annuitization date and
before the entire interest in the contract has been distributed, then
the remaining interest must be distributed at least as rapidly as the
distribution method in effect on the contract owner's death.
2) If any contract owner dies before the annuitization date, then the
entire interest in the contract (consisting of either the death
benefit or the contract value reduced by charges set forth elsewhere
in the contract) will be distributed within 5 years of the contract
owner's death, provided however:
a) any interest payable to or for the benefit of a natural person
(referred to herein as a "designated beneficiary"), may be
distributed over the life of the designated beneficiary or over a
period not longer than the life expectancy of the designated
beneficiary. Payments must begin within one year of the contract
owner's death unless otherwise permitted by federal income tax
regulations; and
b) if the designated beneficiary is the surviving spouse of the
deceased contract owner, the spouse can choose to become the
contract owner instead of receiving a death benefit. Any
distributions required under these distribution rules will be
made upon that spouse's death.
In the event that the contract owner is NOT a natural person (e.g., a trust or
corporation), then, for purposes of these distribution provisions:
a) the death of the annuitant will be treated as the death of a contract
owner;
b) any change of annuitant will be treated as the death of a contract
owner; and
c) in either case, the appropriate distribution will be made upon the
death or change, as the case may be.
These distribution provisions do not apply to any contract exempt from Section
72(s) of the Internal Revenue Code by reason of Section 72(s)(5) or any other
law or rule.
The designated beneficiary must elect a method of distribution and notify
Nationwide of this election within 60 days of the contract owner's death.
REQUIRED DISTRIBUTIONS FOR TAX SHELTERED ANNUITIES
Distributions from Tax Sheltered Annuities will be made according to the Minimum
Distribution and Incidental Benefit ("MDIB") provisions of Section 401(a)(9) of
the Internal Revenue Code. Distributions will be made to the annuitant according
to the annuity payment option selected over a period not longer than:
a) the life of the annuitant or the joint lives of the annuitant and the
annuitant's designated beneficiary; or
b) a period not longer than the life expectancy of the annuitant or the
joint life expectancies of the annuitant and the annuitant's
designated beneficiary.
Required distributions will not be withdrawn from this contract if they are
being withdrawn from another Tax Sheltered Annuity of the annuitant.
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If the annuitant's entire interest in a Tax Sheltered Annuity will be
distributed in equal or substantially equal payments over a period described in
a) or b), the payments will begin on the required beginning date. The required
beginning date is the later of:
a) April 1 of the calendar year following the calendar year in which the
annuitant reaches age 70 1/2; or
b) the annuitant's retirement date.
Provision b) does not apply to any employee who is a 5% owner (as defined in
Section 416 of the Internal Revenue Code) with respect to the plan year ending
in the calendar year when the employee attains the age of 70 1/2.
Distribution commencing on the required distribution date must satisfy minimum
distribution and incidental benefit provisions set forth in the Internal Revenue
Code. Those provisions require that distributions cannot be less than the amount
determined by dividing the annuitant's interest in the Tax Sheltered Annuity
determined by the end of the previous calendar year by:
(a) the annuitant's life expectancy; or if applicable;
(b) the joint and survivor life expectancy of the annuitant and the
annuitant's beneficiary.
The life expectancies and joint life expectancies are determined by reference to
Treasury Regulation 1.72-9.
If the annuitant dies before distributions begin, the interest in the Tax
Sheltered Annuity must be distributed by December 31 of the calendar year in
which the fifth anniversary of the annuitant's death occurs unless:
a) the annuitant names his or her surviving spouse as the beneficiary and
the spouse chooses to receive distribution of the contract in
substantially equal payments over his or her life (or a period not
longer than his or her life expectancy) and beginning no later than
December 31 of the year in which the annuitant would have attained age
70 1/2; or
b) the annuitant names a beneficiary other than his or her surviving
spouse and the beneficiary elects to receive distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year in which the annuitant
dies.
If the annuitant dies after distributions have begun, distributions must
continue at least as rapidly as under the schedule used before the annuitant's
death.
If distribution requirements are not met, a penalty tax of 50% is levied on the
difference between the amount that should have been distributed for that year
and the amount that actually was distributed for that year.
REQUIRED DISTRIBUTIONS FOR INDIVIDUAL RETIREMENT ANNUITIES
Distributions from an Individual Retirement Annuity must begin no later than
April 1 of the calendar year following the calendar year in which the contract
owner reaches age 70 1/2. Distribution may be paid in a lump sum or in
substantially equal payments over:
a) the contract owner's life or the lives of the contract owner and his
or her spouse or designated beneficiary; or
b) a period not longer than the life expectancy of the contract owner or
the joint life expectancy of the contract owner and the contract
owner's designated beneficiary.
If the contract owner dies before distributions begin, the interest in the
Individual Retirement Annuity must be distributed by December 31 of the calendar
year in which the fifth anniversary of the contract owner's death occurs,
unless:
a) the contract owner names his or her surviving spouse as the
beneficiary and such spouse chooses to:
1) treat the contract as an Individual Retirement Annuity
established for his or her benefit; or
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2) receive distribution of the contract in substantially equal
payments over his or her life (or a period not longer than his or
her life expectancy) and beginning no later than December 31 of
the year in which the contract owner would have reached age 70
1/2; or
b) the contract owner names a beneficiary other than his or her surviving
spouse and such beneficiary elects to receive a distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year of the contract
owner's death.
Required distributions will not be withdrawn from this contract if they are
being withdrawn from another Individual Retirement Annuity or Individual
Retirement Account of the contract owner.
If the contract owner dies after distributions have begun, distributions must
continue at least as rapidly as under the schedule being used before the
contract owner's death. However, a surviving spouse who is the beneficiary under
the annuity payment option may treat the contract as his or her own, in the same
manner as is described in section (a)(1) of this provision.
If distribution requirements are not met, a penalty tax of 50% is levied on the
difference between the amount that should have been distributed for that year
and the amount that actually was distributed for that year.
A portion of each distribution will be included in the recipient's gross income
and taxed at ordinary income tax rates. The portion of a distribution which is
taxable is based on the ratio between the amount by which non-deductible
purchase payments exceed prior non-taxable distributions and total account
balances at the time of the distribution. The owner of an Individual Retirement
Annuity must annually report the amount of non-deductible purchase payments, the
amount of any distribution, the amount by which non-deductible purchase payments
for all years exceed nontaxable distributions for all years, and the total
balance of all Individual Retirement Annuities.
Individual Retirement Annuity distributions will not receive the favorable tax
treatment of a lump sum distribution from a Qualified Plan. If the contract
owner dies before the entire interest in the contract has been distributed, the
balance will also be included in his or her gross estate.
REQUIRED DISTRIBUTIONS FOR ROTH IRAS
The rules for Roth IRAs do not require distributions to begin during the
contract owner's lifetime.
When the contract owner dies, the interest in the Roth IRA must be distributed
by December 31 of the calendar year in which the fifth anniversary of his or her
death occurs, unless:
a) the contract owner names his or her surviving spouse as the
beneficiary and the spouse chooses to:
1) treat the contract as a Roth IRA established for his or her
benefit; or
2) receive distribution of the contract in substantially equal
payments over his or her life (or a period not longer than his or
her life expectancy) and beginning no later than December 31 of
the year following the year in which the contract owner would
have reached age 70 1/2; or
b) the contract owner names a beneficiary other than his or her surviving
spouse and the beneficiary chooses to receive distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year in which the contract
owner dies.
Distributions from Roth IRAs may be either taxable or nontaxable, depending upon
whether they are "qualified distributions" or "non-
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qualified distributions" (see "Federal Tax Considerations").
FEDERAL TAX CONSIDERATIONS
FEDERAL INCOME TAXES
The tax consequences of purchasing a contract described in this prospectus will
depend on:
- the type of contract purchased;
- the purposes for which the contract is purchased; and
- the personal circumstances of individual investors having interests in the
contracts.
See "Synopsis of the Contracts" for a brief description of the various types of
contracts and the different purposes for which the contracts may be purchased.
Existing tax rules are subject to change, and may affect individuals differently
depending on their situation. Nationwide does not guarantee the tax status of
any contracts or any transactions involving the contracts.
If the contract is purchased as an investment of certain retirement plans (such
as qualified retirement plans, Individual Retirement Accounts, and custodial
accounts as described in Sections 401, 408(a), and 403(b)(7) of the Internal
Revenue Code), tax advantages enjoyed by the contract owner and/or annuitant may
relate to participation in the plan rather than ownership of the annuity
contract. Such plans are permitted to purchase investments other than annuities
and retain tax-deferred status.
The following is a brief summary of some of the federal income tax
considerations related to the contracts. In addition to the federal income tax,
distributions from annuity contracts may be subject to state and local income
taxes. The tax rules across all states and localities are not uniform and
therefore will not be discussed in this prospectus. Tax rules that may apply to
contracts issued in U.S. territories such as Puerto Rico and Guam are also not
discussed. Nothing in this prospectus should be considered to be tax advice.
Contract owners and prospective contract owners are encouraged to consult a
financial consultant, tax advisor or legal counsel to discuss the taxation and
use of the contracts.
The Internal Revenue Code sets forth different income tax rules for the
following types of annuity contracts:
- Individual Retirement Annuities;
- Roth IRAs;
- Tax Sheltered Annuities; and
- "Non-Qualified Annuities."
Individual Retirement Annuities
Distributions from Individual Retirement Annuities are generally taxed when
received. If any of the amount contributed to the IRA was nondeductible for
federal income tax purposes, then a portion of each distribution is excludable
from income.
If distributions of income from an IRA are made prior to the date that the owner
attains the age of 59 1/2 years, the income is subject to both the regular
income tax and an additional penalty tax of 10%. The penalty tax can be avoided
if the distribution is:
- made to a beneficiary on or after the death of the owner;
- attributable to the owner becoming disabled (as defined in the Internal
Revenue Code);
- part of a series of substantially equal periodic payments made not less
frequently than annually made for the life (or life expectancy) of the
owner, or the joint lives (or joint life expectancies) of the owner and his
or her designated beneficiary;
- used for qualified higher education expenses; or
- used for expenses attributable to the purchase of a home for a qualified
first-time buyer.
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Roth IRAs
Distributions of earnings from Roth IRAs are taxable or nontaxable depending
upon whether they are "qualified distributions" or "non-qualified
distributions." A "qualified distribution" is one that satisfies the five-year
rule and meets one of the following requirements:
- it is made on or after the date on which the contract owner attains age 59
1/2;
- it is made to a beneficiary (or the contract owner's estate) on or after
the death of the contract owner;
- it is attributable to the contract owner's disability; or
- it is used for expenses attributable to the purchase of a home for a
qualified first-time buyer.
The five year rule generally is satisfied if the distribution is not made within
the five taxable year period beginning with the first taxable year in which a
contribution is made to any Roth IRA established for the owner.
A qualified distribution is not included in gross income for federal income tax
purposes.
A non-qualified distribution is not includible in gross income to the extent
that the distribution, when added to all previous distributions, does not exceed
that total amount of contributions made to the Roth IRA. Any non-qualified
distribution in excess of the aggregate amount of contributions will be included
in the contract owner's gross income in the year that is distributed to the
contract owner.
Special rules apply for Roth IRAs that have proceeds received from an IRA prior
to January 1, 1999 if the owner elected the special 4-year income averaging
provisions that were in effect for 1998.
If non-qualified distributions of income from a Roth IRA are made prior to the
date that the owner attains the age of 59 1/2 years, the income is subject to
both the regular income tax and an additional penalty tax of 10%. The penalty
tax can be avoided if the distribution is:
- made to a beneficiary on or after the death of the owner;
- attributable to the owner becoming disabled as defined in the Internal
Revenue Code;
- part of a series of substantially equal periodic payments made not less
frequently than annually made for the life (or life expectancy) of the
owner, or the joint lives (or joint life expectancies) of the owner and his
or her designated beneficiary;
- for qualified higher education expenses; or
- used for expenses attributable to the purchase of a home for a qualified
first-time buyer.
If the contract owner dies before the contract is completely distributed, the
balance may be included in the contract owner's gross estate for tax purposes.
Tax Sheltered Annuities
Distributions from Tax Sheltered Annuities are generally taxed when received. A
portion of each distribution is excludable from income based on a formula
established pursuant to the Internal Revenue Code. The formula excludes from
income the amount invested in the contract divided by the number of anticipated
payments until the full investment in the contract is recovered. Thereafter all
distributions are fully taxable.
If a distribution of income is made from a Tax Sheltered Annuity prior to the
date that the owner attains the age of 59 1/2 years, the income is subject to
both the regular income tax and an additional penalty tax of 10%. The penalty
tax can be avoided if the distribution is:
- made to a beneficiary on or after the death of the owner;
- attributable to the owner becoming disabled as defined in the Internal
Revenue Code;
- part of a series of substantially equal periodic payments made not less
frequently
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than annually made for the life (or life expectancy) of the owner, or the
joint lives (or joint life expectancies) of the owner and his or her
designated beneficiary;
- for qualified higher education expenses;
- used for expenses attributable to the purchase of a home for a qualified
first-time buyer; or
- made to the owner after separation from service with his or her employer
after age 55.
Non-Qualified Contracts - Natural Persons as Contract Owners
Generally, the income earned inside a Non-Qualified Annuity Contract that is
owned by a natural person is not taxable until it is distributed from the
contract.
Distributions before the annuitization date are taxable to the contract owner to
the extent that the cash value of the contract exceeds the contract owner's
investment at the time of the distribution. Distributions, for this purpose,
include partial surrenders, any portion of the contract that is assigned or
pledged; or any portion of the contract that is transferred by gift. For these
purposes, a transfer by gift may occur upon annuitization if the contract owner
and the annuitant are not the same individual.
With respect to annuity distributions on or after the annuitization date, a
portion of each annuity payment is excludable from taxable income. The amount
excludable is based on the ratio between the contract owner's investment in the
contract and the expected return on the contract. Once the entire investment in
the contract is recovered, all distributions are fully includable in income. The
maximum amount excludable from income is the investment in the contract. If the
annuitant dies before the entire investment in the contract has been excluded
from income, and as a result of the annuitant's death no more payments are due
under the contract, then the unrecovered investment in the contract may be
deducted on his or her final tax return.
In determining the taxable amount of a distribution, all annuity contracts
issued after October 21, 1988 by the same company to the same contract owner
during the same calendar year will be treated as one annuity contract.
A special rule applies to distributions from contracts that have investments
that were made prior to August 14, 1982. For those contracts, distributions that
are made prior to the annuitization date are treated first as a recovery of the
investment in the contract as of that date. A distribution in excess of the
amount of the investment in the contract as of August 14, 1982, will be treated
as taxable income.
The Internal Revenue Code imposes a penalty tax if a distribution is made before
the contract owner reaches age 59 1/2. The amount of the penalty is 10% of the
portion of any distribution that is includible in gross income. The penalty tax
does not apply if the distribution is:
- the result of a contract owner's death;
- the result of a contract owner's disability, as defined in the Internal
Revenue Code;
- one of a series of substantially equal periodic payments made over the life
(or life expectancy) of the contract owner or the joint lives (or joint
life expectancies) of the contract owner and the beneficiary selected by
the contract owner to receive payment under the annuity payment option
selected by the contract owner; or
- is allocable to an investment in the contract before August 14, 1982.
Non-Qualified Contracts - Non-Natural Persons as Contract Owners
The previous discussion related to the taxation of Non-Qualified Contracts owned
by individuals. Different rules (the so-called "non-natural persons" rules)
apply if the contract owner is not a natural person.
Generally, contracts owned by corporations, partnerships, trusts, and similar
entities are not treated as annuity contracts under the Internal Revenue Code.
Therefore, income earned under a Non-Qualified Contract that is owned by a
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non-natural person is taxed as ordinary income during the taxable year that it
is earned. Taxation is not deferred, even if the income is not distributed out
of the contract. The income is taxable as ordinary income, not capital gain.
The non-natural persons rules do not apply to all entity-owned contracts. A
contract that is owned by a non-natural person as an agent of an individual is
treated as owned by the individual. This would cause the contract to be treated
as an annuity under the Internal Revenue Code, allowing tax deferral. However,
this exception does not apply when the non-natural person is an employer that
holds the contract under a non-qualified deferred compensation arrangement for
one or more employees.
The non-natural persons rules also do not apply to contracts that are:
- acquired by the estate of a decedent by reason of the death of the
decedent;
- issued in connection with certain qualified retirement plans and individual
retirement plans;
- purchased by an employer upon the termination of certain qualified
retirement plans.
WITHHOLDING
Pre-death distributions from the contracts are subject to federal income tax.
Nationwide will withhold the tax from the distributions unless the contract
owner requests otherwise. If the distribution is from a Tax Sheltered Annuity,
it will be subject to mandatory 20% withholding that cannot be waived, unless:
- the distribution is made directly to another Tax Sheltered Annuity or IRA;
or
- the distribution satisfies the minimum distribution requirements imposed by
the Internal Revenue Code.
In addition, contract owners may not waive withholding if the distribution is
subject to mandatory back-up withholding (if no taxpayer identification number
is given or if the Internal Revenue Service notifies Nationwide that mandatory
back-up withholding is required). Mandatory back-up withholding rates are 31% of
income that is distributed.
NON-RESIDENT ALIENS
Generally, a pre-death distribution from a contract to a non-resident alien is
subject to federal income tax at a rate of 30% of the amount of income that is
distributed. Nationwide is required to withhold this amount and send it to the
Internal Revenue Service. Some distributions to non-resident aliens may be
subject to a lower (or no) tax if a treaty applies. In order to obtain the
benefits of such a treaty, the non-resident alien must:
1) provide Nationwide with proof of residency and citizenship (in
accordance with Internal Revenue Service requirements); and
2) provide Nationwide with an individual taxpayer identification number.
If the non-resident alien does not meet the above conditions, Nationwide will
withhold 30% of income from the distribution.
Another way to avoid the 30% withholding is for the non-resident alien to
provide Nationwide with sufficient evidence that:
1) the distribution is connected to the non-resident alien's conduct of
business in the United States; and
2) the distribution is includible in the non-resident alien's gross
income for United States federal income tax purposes.
Note that these distributions may be subject to back-up withholding, currently
31%, if a correct taxpayer identification number is not provided.
FEDERAL ESTATE, GIFT, AND GENERATION SKIPPING TRANSFER TAXES
The following transfers may be considered a gift for federal gift tax purposes:
- a transfer of the contract from one contract owner to another; or
- a distribution to someone other than a contract owner.
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Upon the contract owner's death, the value of the contract may subject to estate
taxes, even if all or a portion of the value is also subject to federal income
taxes.
Section 2612 of the Internal Revenue Code may require Nationwide to determine
whether a death benefit or other distribution is a "direct skip" and the amount
of the resulting generation skipping transfer tax, if any. A direct skip is when
property is transferred to, or a death benefit or other distribution is made to:
a) an individual who is two or more generations younger than the contract
owner; or
b) certain trusts, as described in Section 2613 of the Internal Revenue
Code (generally, trusts that have no beneficiaries who are not 2 or
more generations younger than the contract owner).
If the contract owner is not an individual, then for this purpose ONLY,
"contract owner" refers to any person:
- who would be required to include the contract, death benefit, distribution,
or other payment in his or her federal gross estate at his or her death; or
- who is required to report the transfer of the contract, death benefit,
distribution, or other payment for federal gift tax purposes.
If a transfer is a direct skip, Nationwide will deduct the amount of the
transfer tax from the death benefit, distribution or other payment, and remit it
directly to the Internal Revenue Service.
CHARGE FOR TAX
Nationwide is not required to maintain a capital gain reserve liability on
Non-Qualified Contracts. If tax laws change requiring a reserve, Nationwide may
implement and adjust a tax charge.
DIVERSIFICATION
Internal Revenue Code Section 817(h) contains rules on diversification
requirements for variable annuity contracts. A variable annuity contract that
does not meet these diversification requirements will not be treated as an
annuity, unless:
- the failure to diversify was accidental;
- the failure is corrected; and
- a fine is paid to the Internal Revenue Service.
The amount of the fine will be the amount of tax that would have been paid by
the contract owner if the income, for the period the contract was not
diversified, had been received by the contract owner.
If the violation is not corrected, the contract owner will be considered the
owner of the underlying securities and will be taxed on the earnings of his or
her contract. Nationwide believes that the investments underlying this contract
meet these diversification requirements.
TAX CHANGES
The foregoing tax information is based on Nationwide's understanding of federal
tax laws. It is NOT intended as tax advice. All information is subject to change
without notice. For more details, contact your personal tax and/or financial
advisor.
STATEMENTS AND REPORTS
Nationwide will mail contract owners statements and reports. Therefore, contract
owners should promptly notify Nationwide of any address change.
These mailings will contain:
- statements showing the contract's quarterly activity;
- confirmation statements showing transactions that affect the
contract's value. Confirmation statements will not be sent for
recurring transactions (i.e., Dollar Cost
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Averaging or salary reduction programs). Instead, confirmation of
recurring transactions will appear in the contract's quarterly
statements;
- semi-annual reports as of June 30 containing financial statements for
the variable account; and
- annual reports as of December 31 containing financial statements for
the variable account.
Contract owners should review statements and confirmations carefully. All errors
or corrections must be reported to Nationwide immediately to assure proper
crediting to the contract. Unless Nationwide is notified within 30 days of
receipt of the statement, Nationwide will assume statements and confirmation
statements are correct.
LEGAL PROCEEDINGS
Nationwide is a party to litigation and arbitration proceedings in the ordinary
course of its business, none of which is expected to have a material adverse
effect on Nationwide.
In recent years, life insurance companies have been named as defendants in
lawsuits, including class action lawsuits relating to life insurance and annuity
pricing and sales practices. A number of these lawsuits have resulted in
substantial jury awards or settlements.
In November 1997, two plaintiffs, one who was the owner of a variable life
insurance contract and the other who was the owner of a variable annuity
contract, commenced a lawsuit in a federal court in Texas against Nationwide and
the American Century group of defendants (Robert Young and David D. Distad v.
Nationwide Life Insurance Company et al.). In this lawsuit, plaintiffs sought to
represent a class of variable life insurance contract owners and variable
annuity contract owners whom they claim were allegedly misled when purchasing
these variable contracts into believing that the performance of their underlying
mutual fund option managed by American Century, whose shares may only be
purchased by insurance companies, would track the performance of a mutual fund,
also managed by American Century, whose shares are publicly traded. The amended
complaint seeks unspecified compensatory and punitive damages. On April 27,
1998, the District Court denied, in part, and granted, in part, motions to
dismiss the complaint filed by Nationwide and American Century. The remaining
claims against Nationwide allege securities fraud, common law fraud, civil
conspiracy, and breach of contract. The District Court, on December 2, 1998,
issued an order denying plaintiffs' motion for class certification and the
appeals court declined to review the order denying class certification upon
interlocutory appeal. On June 11, 1999, the District Court denied the
plaintiffs' motion to amend their complaint and reconsider class certification.
In January 2000 Nationwide and American Century settled this lawsuit now limited
to the claims of the two named plaintiffs. On February 9, 2000 the court
dismissed this lawsuit with prejudice.
On October 29, 1998, Nationwide was named in a lawsuit filed in Ohio state court
related to the sale of deferred annuity products for use as investments in
tax-deferred contributory retirement plans (Mercedes Castillo v. Nationwide
Financial Services, Inc., Nationwide Life Insurance Company and Nationwide Life
and Annuity Insurance Company). On May 3, 1999, the complaint was amended to,
among other things, add Marcus Shore as a second plaintiff. The amended
complaint is brought as a class action on behalf of all persons who purchased
individual deferred annuity contracts or participated in group annuity contracts
sold by Nationwide and the other named Nationwide affiliates which were used to
fund certain tax-deferred retirement plans. The amended complaint seeks
unspecified compensatory and punitive damages. No class has been certified. On
June 11, 1999, Nationwide and the other named defendants filed a motion to
dismiss the amended complaint. On March 8, 2000, the court denied the motion to
dismiss the amended complaint filed by Nationwide and other named
50
<PAGE> 66
defendants. Nationwide intends to defend this lawsuit vigorously.
There can be no assurance that any litigation relating to pricing or sales
practices will not have a material adverse effect on Nationwide in the future.
The general distributor, NISC, is not engaged in any litigation of any material
nature.
ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY
ADVERTISING
A "yield" and "effective yield" may be advertised for the NSAT Money Market
Fund. "Yield" is a measure of the net dividend and interest income earned over a
specific seven-day period (which period will be stated in the advertisement)
expressed as a percentage of the offering price of the NSAT Money Market Fund's
units. Yield is an annualized figure, which means that it is assumed that the
NSAT Money Market Fund generates the same level of net income over a 52-week
period. The "effective yield" is calculated similarly but includes the effect of
assumed compounding, calculated under rules prescribed by the SEC. The effective
yield will be slightly higher than yield due to this compounding effect.
Nationwide may advertise the performance of a sub-account in relation to the
performance of other variable annuity sub-accounts, underlying mutual fund
options with similar or different objectives, or the investment industry as a
whole. Other investments to which the sub-accounts may be compared include, but
are not limited to:
- precious metals;
- real estate;
- stocks and bonds;
- closed-end funds;
- bank money market deposit accounts and passbook savings;
- CDs; and
- the Consumer Price Index.
Market Indexes
The sub-accounts will be compared to certain market indexes, such as:
- S&P 500;
- Shearson/Lehman Intermediate Government/Corporate Bond Index;
- Shearson/Lehman Long-Term Government/Corporate Bond Index;
- Donoghue Money Fund Average;
- U.S. Treasury Note Index;
- Bank Rate Monitor National Index of 2 1/2 Year CD Rates; and
- Dow Jones Industrial Average.
Tracking & Rating Services; Publications
Nationwide's rankings and ratings are sometimes published by other services,
such as:
- Lipper Analytical Services, Inc.;
- CDA/Wiesenberger;
- Morningstar;
- Donoghue's;
- magazines such as:
- Money;
- Forbes;
- Kiplinger's Personal Finance Magazine;
- Financial World;
- Consumer Reports;
- Business Week;
- Time;
- Newsweek;
- National Underwriter; and
- News and World Report;
- LIMRA;
- Value;
- Best's Agent Guide;
- Western Annuity Guide;
- Comparative Annuity Reports;
- Wall Street Journal;
- Barron's;
- Investor's Daily;
- Standard & Poor's Outlook; and
- Variable Annuity Research & Data Service (The VARDS Report).
These rating services and publications rank the underlying mutual funds'
performance against other funds. These rankings may or may not include the
effects of sales charges or other fees.
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<PAGE> 67
Financial Rating Services
Nationwide is also ranked and rated by independent financial rating services,
among which are Moody's, Standard & Poor's and A.M. Best Company. Nationwide may
advertise these ratings. These ratings reflect Nationwide's financial strength
or claims-paying ability. The ratings are not intended to reflect the investment
experience or financial strength of the variable account.
Some Nationwide advertisements and endorsements may include lists of
organizations, individuals or other parties that recommend Nationwide or the
contract. Furthermore, Nationwide may occasionally advertise comparisons of
currently taxable and tax deferred investment programs, based on selected tax
brackets, or discussions of alternative investment vehicles and general economic
conditions.
Historical Performance of the Sub-Accounts
Nationwide will advertise historical performance of the sub-accounts. Nationwide
may advertise for the sub-account's standardized average annual total return
("standardized return") calculated in a manner prescribed by the SEC, and
non-standardized total return ("non-standardized return").
Standardized return shows the percentage rate of return of a hypothetical
initial investment of $1,000 for the most recent one, five and ten year periods
(or for a period covering the time the underlying mutual fund has been available
in the variable account if it has not been available for one of the prescribed
periods). This calculation reflects the standard 7 year CDSC schedule and the
charges that could be assessed to a contract if the maximum rider options are
chosen (1.70%). Standardized return does not reflect the deduction of state
premium taxes, which may be imposed by certain states.
Non-standardized return is calculated similarly to standardized return except
non-standardized return assumes an initial investment of $25,000, with base
contract variable account charges of 1.20% and does not reflect CDSC. An assumed
initial investment of $25,000 is used because that amount more accurately
reflects the average contract size.
Both methods of calculation reflect total return for the most recent one, five
and ten year periods (or for a period covering the time the underlying mutual
fund has been in existence). For those underlying mutual funds which have not
been available for one of the prescribed periods, the nonstandardized total
return illustrations will show the investment performance the underlying mutual
funds would have achieved had they been available in the variable account for
one of the periods. If the underlying mutual fund has been available in the
variable account for less than one year (or if the underlying mutual fund has
been effective for less than one year) standardized and non-standardized
performance is not annualized.
The standardized average annual total return and nonstandardized total return
quotations are calculated using data for the period ended December 31, 1999.
However, Nationwide generally provides performance information more frequently.
Information relating to performance of the sub-accounts is based on historical
earnings and does not represent or guarantee future results.
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<PAGE> 68
SUB-ACCOUNT PERFORMANCE SUMMARY
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
10 Years
or Date Fund
Available in Date Fund
the Variable Available in
1 Year 5 Years Account the Variable
Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American 9.72% N/A 3.82% 11/03/97
Century VP Income & Growth
American Century Variable Portfolios, Inc. - American 54.97% N/A 24.37% 11/03/97
Century VP International
American Century Variable Portfolios, Inc. - American -8.65% N/A -11.52% 11/03/97
Century VP Value
Dreyfus Investment Portfolios - European Equity N/A N/A 22.43% 09/27/99
Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc. 21.58% N/A 6.69% 11/03/97
Dreyfus Stock Index Fund, Inc. 12.27% N/A 3.83% 11/03/97
Dreyfus Variable Investment Fund - Appreciation 3.27% N/A 1.88% 11/03/97
Portfolio (formerly, Dreyfus Variable Investment Fund -
Capital Appreciation Portfolio)
Federated Insurance Series - Federated Quality Bond N/A N/A -8.57% 05/03/99
Fund II
Fidelity VIP Equity-Income Portfolio: Service Class -1.84% N/A -7.58% 11/03/97
Fidelity VIP Growth Portfolio: Service Class 28.67% N/A 10.81% 11/03/97
Fidelity VIP High Income Portfolio: Service Class -0.05% N/A -10.77% 11/03/97
Fidelity VIP Overseas Portfolio: Service Class 33.76% N/A 9.41% 11/03/97
Fidelity VIP II Contrafund(R) Portfolio: Service Class 15.75% N/A 3.83% 11/03/97
Fidelity VIP III Growth Opportunities Portfolio: -3.88% N/A -1.97% 11/03/97
Service Class
NSAT Capital Appreciation Fund -3.79% N/A -0.66% 11/03/97
NSAT Government Bond Fund -10.02% N/A -0.66% 11/03/97
NSAT Money Market Fund -3.21% N/A -0.12% 10/31/97
NSAT Total Return Fund -1.17% N/A -3.49% 11/03/97
NSAT Nationwide Balanced Fund -7.08% N/A -4.92% 11/03/97
NSAT Nationwide Equity Income Fund 10.19% N/A -0.66% 11/03/97
NSAT Nationwide Global 50 Fund (formerly, NSAT 14.55% N/A 3.31% 11/03/97
Nationwide Global Equity Fund)
NSAT Nationwide High Income Bond Fund -4.86% N/A -3.72% 11/03/97
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 12.57% N/A -1.94% 11/03/97
Nationwide Select Advisers Mid Cap Fund)
NSAT Nationwide Multi Sector Bond Fund -6.46% N/A -4.27% 11/03/97
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT N/A N/A 96.41% 05/03/99
Nationwide Select Advisers Small Cap Growth Fund)
NSAT Nationwide Small Cap Value Fund 19.38% N/A -8.57% 11/03/97
NSAT Nationwide Small Company Fund 35.28% N/A 3.12% 11/03/97
NSAT Nationwide Strategic Growth Fund 75.37% N/A 12.87% 11/03/97
</TABLE>
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<PAGE> 69
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (CONTINUED)
<TABLE>
<CAPTION>
10 Years
or Date Fund
Available in Date Fund
the Variable Available in
1 Year 5 Years Account the Variable
Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account
<S> <C> <C> <C> <C>
NSAT Nationwide Strategic Value Fund -10.68% N/A -18.03% 11/03/97
Neuberger Berman AMT Guardian Portfolio 6.70% N/A 2.18% 11/03/97
Neuberger Berman AMT Mid-Cap Growth Portfolio 44.98% N/A 28.98% 11/03/97
Neuberger Berman AMT Partners Portfolio -0.74% N/A -10.31% 11/03/97
Oppenheimer Variable Account Funds - Oppenheimer 74.22% N/A 10.99% 11/03/97
Aggressive Growth Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Capital
Appreciation Fund)
Oppenheimer Variable Account Funds - Oppenheimer 32.96% N/A 2.53% 11/03/97
Capital Appreciation Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth Fund)
Oppenheimer Variable Account Funds - Oppenheimer Main 13.35% N/A -1.90% 11/03/97
Street Growth & Income Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth & Income
Fund)
The Universal Institutional Funds, Inc. - Emerging 20.90% N/A -16.10% 11/03/97
Markets Debt Portfolio (formerly, Morgan Stanley Dean
Witter Universal Funds, Inc. - Emerging Markets Debt
Portfolio)
Van Eck Worldwide Insurance Trust - Worldwide 90.64% N/A -15.36% 11/03/97
Emerging Markets Fund
Van Eck Worldwide Insurance Trust - Worldwide Hard 12.67% N/A -24.40% 11/03/97
Assets Fund
Van Kampen Life Investment Trust - Morgan Stanley -10.96% N/A -14.42% 11/03/97
Real Estate Securities Portfolio
Victory Variable Insurance Funds - Diversified Stock N/A N/A -5.60% 07/01/99
Fund: Class A
Victory Variable Insurance Funds - Investment Quality N/A N/A -8.05% 07/01/99
Bond Fund: Class A
Victory Variable Insurance Funds - Small Company N/A N/A -8.68% 07/01/99
Opportunity Fund: Class A
Warburg Pincus Trust - Global Post-Venture Capital 54.43% N/A 9.30% 11/03/97
Portfolio (formerly, Warburg Pincus Trust -
Post-Venture Capital Portfolio)
Warburg Pincus Trust - International Equity Portfolio 44.53% N/A 11.90% 11/03/97
Warburg Pincus Trust - Value Portfolio (formerly, -1.85% N/A -6.49% 11/03/97
Warburg Pincus Trust - Growth & Income Portfolio)
</TABLE>
54
<PAGE> 70
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
$25,000 INITIAL INVESTMENT, VARIABLE ACCOUNT CHARGES OF 1.20%, NO CDSC
PLEASE NOTE: THE PERFORMANCE NUMBERS BELOW REFLECT THE DEDUCTION OF THE AMOUNT
ASSESSED FOR THE BASE CONTRACT OF 1.20%. FOR CONTRACT OWNERS WHO HAVE CHOSEN ONE
OR MORE RIDER OPTIONS, THE FUND PERFORMANCE AS SHOWN BELOW WOULD BE REDUCED IN
ACCORDANCE TO THE COSTS OF THE RIDER OPTIONS SELECTED.
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (CONTINUED)
<TABLE>
<CAPTION>
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American 16.60% N/A 23.21% 10/30/97
Century VP Income & Growth
American Century Variable Portfolios, Inc. - American 62.08% 22.81% 18.63% 05/02/94
Century VP International
American Century Variable Portfolios, Inc. - American -2.04% N/A 9.78% 05/01/96
Century VP Value
Dreyfus Investment Portfolios - European Equity N/A N/A 28.13% 04/22/99
Portfolio
The Dreyfus Socially Responsible Growth Fund, Inc. 28.52% 27.12% 22.61% 10/06/93
Dreyfus Stock Index Fund, Inc. 19.16% 26.54% 16.29% 09/29/89
Dreyfus Variable Investment Fund - Appreciation 10.12% 24.03% 18.63% 04/05/93
Portfolio (formerly, Dreyfus Variable Investment Fund
- Capital Appreciation Portfolio)
Federated Insurance Series - Federated Quality Bond N/A N/A -2.82% 04/22/99
Fund II
Fidelity VIP Equity-Income Portfolio: Service Class 4.98% 17.14% 13.10% 10/09/86
Fidelity VIP Growth Portfolio: Service Class 35.64% 28.13% 18.47% 10/09/86
Fidelity VIP High Income Portfolio: Service Class 6.78% 9.47% 11.05% 09/19/85
Fidelity VIP Overseas Portfolio: Service Class 40.76% 15.91% 10.07% 01/28/87
Fidelity VIP II Contrafund(R) Portfolio: Service Class 22.66% N/A 26.18% 01/03/95
Fidelity VIP III Growth Opportunities Portfolio: 2.93% N/A 20.03% 01/03/95
Service Class
NSAT Capital Appreciation Fund 3.03% 22.86% 15.87% 04/15/92
NSAT Government Bond Fund -3.52% 6.17% 6.38% 11/08/82
NSAT Money Market Fund 3.59% 3.98% 3.76% 11/30/81
NSAT Total Return Fund 5.66% 19.33% 13.41% 11/08/82
NSAT Nationwide Balanced Fund -0.34% N/A 3.51% 10/31/97
NSAT Nationwide Equity Income Fund 17.07% N/A 14.97% 10/31/97
NSAT Nationwide Global 50 Fund (formerly, NSAT 21.45% N/A 18.48% 10/31/97
Nationwide Global Equity Fund)
NSAT Nationwide High Income Bond Fund 1.95% N/A 3.97% 10/31/97
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 19.47% N/A 12.91% 10/31/97
Nationwide Select Advisers Mid Cap Fund)
NSAT Nationwide Multi Sector Bond Fund 0.34% N/A 1.18% 10/31/97
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT N/A N/A 103.39% 05/03/99
Nationwide Select Advisers Small Cap Growth Fund)
NSAT Nationwide Small Cap Value Fund 26.30% N/A 8.27% 10/31/97
NSAT Nationwide Small Company Fund 42.29% N/A 21.74% 10/23/95
NSAT Nationwide Strategic Growth Fund 82.54% N/A 41.11% 10/31/97
</TABLE>
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<PAGE> 71
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (CONTINUED)
<TABLE>
<CAPTION>
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
<S> <C> <C> <C> <C>
NSAT Nationwide Strategic Value Fund -4.23% N/A -1.70% 10/31/97
Neuberger Berman AMT Guardian Portfolio 13.55% N/A 22.56% 11/03/97
Neuberger Berman AMT Mid-Cap Growth Portfolio 52.04% N/A 51.42% 11/03/97
Neuberger Berman AMT Partners Portfolio 6.08% 19.58% 16.08% 03/22/94
Oppenheimer Variable Account Funds - Oppenheimer 81.41% 28.16% 18.99% 08/15/86
Aggressive Growth Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Capital
Appreciation Fund)
Oppenheimer Variable Account Funds - Oppenheimer 39.96% 29.10% 17.05% 04/03/85
Capital Appreciation Growth Fund/VA (formerly,
Oppenheimer Variable Account Funds - Oppenheimer
Growth Fund)
Oppenheimer Variable Account Funds - Oppenheimer Main 20.25% N/A 24.30% 07/05/95
Street Growth & Income Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth & Income
Fund)
The Universal Institutional Funds, Inc. - Emerging 27.82% N/A -3.83% 01/16/97
Markets Debt Portfolio (formerly, Morgan Stanley Dean
Witter Universal Funds, Inc. - Emerging Markets Debt
Portfolio)
Van Eck Worldwide Insurance Trust - Worldwide 97.89% N/A 8.62% 12/21/95
Emerging Markets Fund
Van Eck Worldwide Insurance Trust - Worldwide Hard 19.55% 0.26% 1.82% 09/01/89
Assets Fund
Van Kampen Life Investment Trust - Morgan Stanley -4.53% N/A 9.37% 07/03/95
Real Estate Securities Portfolio
Victory Variable Insurance Funds - Diversified Stock N/A N/A 0.60% 07/01/99
Fund-Class A
Victory Variable Insurance Funds - Investment Quality N/A N/A -0.69% 07/01/99
Bond Fund-Class A
Victory Variable Insurance Funds - Small Company N/A N/A -1.03% 07/01/99
Opportunity Fund-Class A
Warburg Pincus Trust - Value Portfolio (formerly, 4.97% N/A 9.03% 10/31/97
Warburg Pincus Trust - Growth & Income Portfolio)
Warburg Pincus Trust - International Equity Portfolio 51.59% N/A 13.46% 06/30/95
Warburg Pincus Trust - Global Post-Venture Capital 61.54% N/A 20.88% 09/30/96
Portfolio (formerly, Warburg Pincus Trust -
Post-Venture Capital Portfolio)
</TABLE>
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no sub-account
performance is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no sub-account performance is available.
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<PAGE> 72
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
PAGE
General Information and History..........................................1
Services.................................................................1
Purchase of Securities Being Offered.....................................2
Underwriters.............................................................2
Calculations of Performance..............................................2
Annuity Payments.........................................................3
Financial Statements.....................................................4
57
<PAGE> 73
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS
The underlying mutual funds listed below are designed primarily as investments
for variable annuity contracts and variable life insurance policies issued by
insurance companies.
There is no guarantee that the investment objectives will be met.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN
CENTURY(SM) FAMILY OF INVESTMENTS
American Century Variable Portfolios, Inc. was organized as a Maryland
corporation in 1987. It is a diversified, open-end investment management company
which offers its shares only as investment vehicles for variable annuity and
variable life insurance products of insurance companies. American Century
Variable Portfolios, Inc. is managed by American Century Investment Management,
Inc.
AMERICAN CENTURY VP INCOME & GROWTH
Investment Objective: Dividend growth, current income and capital
appreciation. The Fund seeks to achieve its investment objective by
investing in common stocks. The investment manager constructs the portfolio
to match the risk characteristics of the S&P 500 Stock Index and then
optimizes each portfolio to achieve the desired balance of risk and return
potential. This includes targeting a dividend yield that exceeds that of
the S&P 500. Such a management technique known as "portfolio optimization"
may cause the Fund to be more heavily invested in some industries than in
others. However, the Fund may not invest more than 25% of its total assets
in companies whose principal business activities are in the same industry.
AMERICAN CENTURY VP INTERNATIONAL
Investment Objective: To seek capital growth. The Fund will seek to achieve
its investment objective by investing primarily in securities of foreign
companies that meet certain fundamental and technical standards of
selection and, in the opinion of the investment manager, have potential for
appreciation. Under normal conditions, the Fund will invest at least 65% of
its assets in common stocks or other equity securities of issuers from at
least three countries outside the United States. While securities of United
States issuers may be included in the portfolio from time to time, it is
the primary intent of the manager to diversify investments across a broad
range of foreign issuers. Although the primary investment of the Fund will
be common stocks (defined to include depository receipts for common stock
and other equity equivalents), the Fund may also invest in other types of
securities consistent with the Fund's objective. When the manager believes
that the total capital growth potential of other securities equals or
exceeds the potential return of common stocks, the Fund may invest up to
35% of its assets in such other securities. There can be no assurance that
the Fund will achieve its objectives.
AMERICAN CENTURY VP VALUE
Investment Objective: The investment objective of the Fund is long-term
capital growth; income is a secondary objective. The equity securities in
which the Fund will invest will be primarily securities of well-established
companies with intermediate-to-large market capitalizations that are
believed by management to be undervalued at the time of purchase. Under
normal market conditions, the Fund expects to invest at least 80% of the
value of its total asset in equity securities, including common and
preferred stock, convertible preferred stock and convertible debt
obligations.
DREYFUS INVESTMENT PORTFOLIOS
Dreyfus Investment Portfolios (the "Fund") is an open-end, management investment
company known as a mutual fund. Shares are offered only to variable annuity and
variable life insurance separate accounts established by insurance companies to
fund variable annuity contracts and variable life insurance policies and to
qualified pension and retirement plans.
58
<PAGE> 74
Individuals may not purchase shares directly from the Fund. The Dreyfus
Corporation serves as the Fund's investment adviser.
EUROPEAN EQUITY PORTFOLIO
Investment Objective: The Portfolio seeks long-term capital growth. To
pursue this goal, the Portfolio generally invests at least 80% of its total
assets in stocks included within the universe of the 300 largest European
companies. The Portfolio may invest up to 10% of its total assets in the
stocks of non-European companies. The Portfolio's stock investments may
include common stocks, preferred stocks and convertible securities.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
The Dreyfus Socially Responsible Growth Fund, Inc. is an open-end, diversified,
management investment company incorporated under Maryland law on July 20, 1992
and commenced operations on October 7, 1993. The Fund offers its share only as
investment vehicles for variable annuity and variable life insurance products of
insurance companies. Dreyfus serves as the Fund's investment adviser. NCM
Capital Management Group, Inc. serves as the Fund's sub-investment adviser and
provides day-to-day management of the Fund's portfolio.
Investment Objective: Capital growth through equity investment in companies
that, in the opinion of the Fund's advisers, not only meet traditional
investment standards, but which also show evidence that they conduct their
business in a manner that contributes to the enhancement of the quality of
life in America. Current income is secondary to the primary goal.
DREYFUS STOCK INDEX FUND, INC.
The Dreyfus Stock Index Fund, Inc. ("Fund") is an open-end, non-diversified,
management investment company incorporated under Maryland law on January 24,
1989 and commenced operations on September 29, 1989. The Fund offers its shares
only as investment vehicles for variable annuity and variable life insurance
products of insurance companies. The Dreyfus Corporation ("Dreyfus") serves as
the Fund's manager, while Mellon Equity Associates, an affiliate of Dreyfus,
serves as the Fund's index manager. Dreyfus is a wholly-owned subsidiary of
Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Bank
Corporation.
Investment Objective: To provide investment results that correspond to the
price and yield performance of publicly traded common stocks in the
aggregate, as represented by the Standard & Poor's 500 Composite Stock
Price Index. The Fund is neither sponsored by nor affiliated with Standard
& Poor's Corporation.
DREYFUS VARIABLE INVESTMENT FUND
Dreyfus Variable Investment Fund ("Fund") is an open-end, management investment
company. It was organized as an unincorporated business trust under the laws of
the Commonwealth of Massachusetts on October 29, 1986 and commenced operations
on August 31, 1990. The Fund offers its shares only as investment vehicles for
variable annuity and variable life insurance products of insurance companies.
Dreyfus serves as the Fund's manager. Fayez Sarofim & Company serves as the
sub-adviser and provides day-to-day management of the Portfolio.
APPRECIATION PORTFOLIO (FORMERLY, CAPITAL APPRECIATION PORTFOLIO)
Investment Objective: The Portfolio's primary investment objective is to
provide long-term capital growth consistent with the preservation of
capital; current income is a secondary investment objective. This Portfolio
invests primarily in the common stocks of domestic and foreign issuers.
FEDERATED INSURANCE SERIES
Federated Insurance Series (the "Trust"), an Open-End Management Investment
Company, was established as a Massachusetts business trust, under a Declaration
of Trust dated September 15, 1993. The Trust offers its shares only as
investment vehicles for variable annuity and variable life insurance products of
insurance
59
<PAGE> 75
companies. Federated Investment Management Company serves as the investment
adviser.
FEDERATED QUALITY BOND FUND II
Investment Objective: Current income by investing in investment grade fixed
income securities.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
The Fidelity Variable Insurance Products Fund (VIP) is an open-end, diversified,
management investment company organized as a Massachusetts business trust on
November 13, 1981. Shares of VIP are purchased by insurance companies to fund
benefits under variable life insurance policies and variable annuity contracts.
Fidelity Management & Research Company ("FMR") is the manager for VIP and its
portfolios.
VIP EQUITY-INCOME PORTFOLIO: SERVICE CLASS
Investment Objective: Reasonable income by investing primarily in
income-producing equity securities. In choosing these securities FMR also
will consider the potential for capital appreciation. The Portfolio's goal
is to achieve a yield which exceeds the composite yield on the securities
comprising the Standard & Poor's 500 Composite Stock Price Index.
VIP GROWTH PORTFOLIO: SERVICE CLASS
Investment Objective: Capital appreciation. This Portfolio will invest in
the securities of both well-known and established companies, and smaller,
less well-known companies which may have a narrow product line or whose
securities are thinly traded. These latter securities will often involve
greater risk than may be found in the ordinary investment security. FMR's
analysis and expertise plays an integral role in the selection of
securities and, therefore, the performance of the Portfolio. Many
securities which FMR believes would have the greatest potential may be
regarded as speculative, and investment in the Portfolio may involve
greater risk than is inherent in other underlying mutual funds. It is also
important to point out that this Portfolio makes sense for you if you can
afford to ride out changes in the stock market because it invests primarily
in common stocks. FMR can also make temporary investments in securities
such as investment-grade bonds, high-quality preferred stocks and
short-term notes, for defensive purposes when it believes market conditions
warrant.
VIP HIGH INCOME PORTFOLIO: SERVICE CLASS
Investment Objective: High level of current income by investing primarily
in high-risk, lower-rated, high-yielding, fixed-income securities, while
also considering growth of capital. FMR will seek high current income
normally by investing the Portfolio's assets as follows:
- at least 65% in income-producing debt securities and preferred stocks,
including convertible securities
- up to 20% in common stocks and other equity securities when consistent
with the Portfolio's primary objective or acquired as part of a unit
combining fixed-income and equity securities
Higher yields are usually available on securities that are lower-rated or
that are unrated. Lower-rated securities are usually defined as Ba or lower
by Moody's Investor Service, Inc. ("Moody's"); BB or lower by Standard &
Poor's and may be deemed to be of a speculative nature. The Portfolio may
also purchase lower-quality bonds such as those rated Ca3 by Moody's or C-
by Standard & Poor's which provide poor protection for payment of principal
and interest (commonly referred to as "junk bonds"). For a further
discussion of lower-rated securities, please see the "Risks of Lower-Rated
Debt Securities" section of the Portfolio's prospectus.
VIP OVERSEAS PORTFOLIO: SERVICE CLASS
Investment Objective: Long-term capital growth primarily through
investments in foreign securities. This Portfolio provides a means for
investors to diversify their own
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portfolios by participating in companies and economies outside the United
States.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
The Fidelity Variable Insurance Products Fund II (VIP II) is an open-end,
diversified, management investment company organized as a Massachusetts business
trust on March 21, 1988. VIP II's shares are purchased by insurance companies to
fund benefits under variable life insurance policies and variable annuity
contracts. FMR is the manager of VIP II and its portfolios.
VIP II CONTRAFUND(R) PORTFOLIO: SERVICE CLASS
Investment Objective: To seek capital appreciation by investing primarily
in companies that FMR believes to be undervalued due to an overly
pessimistic appraisal by the public. This strategy can lead to investments
in domestic or foreign companies, small and large, many of which may not be
well known. The Portfolio primarily invests in common stock and securities
convertible into common stock, but it has the flexibility to invest in any
type of security that may produce capital appreciation.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III
The Fidelity Variable Insurance Products Fund III (VIP III) is an open-end,
diversified, management investment company organized as a Massachusetts business
trust on July 14, 1994. VIP III's shares are purchased by insurance companies to
fund benefits under variable life insurance policies and variable annuity
contracts. FMR is the manager of VIP III and it's portfolios.
VIP III GROWTH OPPORTUNITIES PORTFOLIO: SERVICE CLASS
Investment Objective: Capital growth by investing primarily in common
stocks and securities convertible into common stocks. The Portfolio, under
normal conditions, will invest at least 65% of its total assets in
securities of companies that FMR believes have long-term growth potential.
Although the Portfolio invests primarily in common stock and securities
convertible into common stock, it has the ability to purchase other
securities, such as preferred stock and bonds, that may produce capital
growth. The Portfolio may invest in foreign securities without limitation.
JANUS ASPEN SERIES
The Janus Aspen Series is an open-end management investment company whose shares
are offered in connection with investment in and payments under variable annuity
contracts and variable life insurance policies, as well as certain qualified
retirement plans. Janus Capital Corporation serves as investment adviser to each
Portfolio.
CAPITAL APPRECIATION PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing
primarily in common stocks selected for their growth potential. The
Portfolio may invest in companies of any size, from larger,
well-established companies to smaller, emerging growth companies.
GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing
primarily in equity securities of U.S. and foreign companies selected for
their growth potential. Under normal circumstances, the Portfolio invests
at least 65% of its total assets in securities of companies that the
Portfolio manager believes will benefit significantly from advances or
improvements in technology.
INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing at
least 65% of its total assets in securities of issuers from at least five
different countries, excluding the United States. Although the Portfolio
intends to invest substantially all of its assets in issuers located
outside the United States, it may invest in U.S. issuers
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<PAGE> 77
and it may at times invest all of its assets in fewer than five countries,
or even a single country.
NATIONWIDE SEPARATE ACCOUNT TRUST
Nationwide Separate Account Trust ("NSAT") is a diversified open-end management
investment company created under the laws of Massachusetts. NSAT offers shares
in the mutual funds listed below, each with its own investment objectives.
Shares of NSAT will be sold primarily to separate accounts to fund the benefits
under variable life insurance policies and variable annuity contracts issued by
life insurance companies. The assets of NSAT are managed by Villanova Mutual
Fund Capital Trust ("VMF"), an indirect subsidiary of Nationwide Financial
Services, Inc.
CAPITAL APPRECIATION FUND
Investment Objective: Long-term capital appreciation.
GOVERNMENT BOND FUND
Investment Objective: As high a level of income as is consistent with the
preservation of capital by investing in a diversified portfolio of
securities issued or backed by the U.S. Government, its agencies or
instrumentalities.
MONEY MARKET FUND
Investment Objective: As high a level of current income as is consistent
with the preservation of capital and maintenance of liquidity.
TOTAL RETURN FUND
Investment Objective: To obtain a reasonable, long-term total return on
invested capital.
SUBADVISED NATIONWIDE FUNDS
NATIONWIDE BALANCED FUND
Subadviser: J.P. Morgan Investment Management Inc.
Investment Objective: Primarily seeks above-average income compared to a
portfolio entirely invested in equity securities. The Fund's secondary
objective is to take advantage of opportunities for growth of capital and
income. The Fund seeks its objective primarily through investments in a
broad variety of securities, including equity securities, fixed-income
securities and short term obligations. Under normal market conditions, it
is anticipated that the Fund will invest at least 40% of the Fund's total
assets in equity securities and at least 25% in fixed-income senior
securities. The Fund's subadviser will have discretion to invest in the
full range of maturities of fixed-income securities. Generally, most of
the Fund's long-term debt investments will consist of "investment grade"
securities, but the Fund may invest up to 20% of its net assets in
non-convertible fixed-income securities rated below investment grade or
determined by the subadviser to be of comparable quality. These
securities are commonly known as junk bonds. In addition, the Fund may
invest an unlimited amount in convertible securities rated below
investment grade.
NATIONWIDE EQUITY INCOME FUND
Subadviser: Federated Investment Counseling
Investment Objective: Seeks above average income and capital appreciation
by investing at least 65% of its assets in income-producing equity
securities. Such equity securities include common stocks, preferred
stocks, and securities (including debt securities) that are convertible
into common stocks. The portion of the Fund's total assets invested in
each type of equity security will vary according to the Fund's
subadviser's assessment of market, economic conditions and outlook.
NATIONWIDE GLOBAL 50 FUND (FORMERLY, NATIONWIDE GLOBAL EQUITY FUND)
Subadviser: J. P. Morgan Investment Management Inc.
Investment Objective: To provide high total return from a globally
diversified portfolio of equity securities. Total return will consist of
income plus realized and
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<PAGE> 78
unrealized capital gains and losses. The Fund seeks its investment
objective through country allocation, stock selection and management of
currency exposure. Under normal market conditions, J.P. Morgan Investment
Management Inc., intends to keep the Fund essentially fully invested with
at least 65% of the value of its total assets in equity securities
consisting of common stocks and other securities with equity
characteristics such as preferred stocks, warrants, rights, convertible
securities, trust certificates, limited partnership interests and equity
participations. The Fund's primary equity instruments are the common
stock of companies based in the developed countries around the world. The
assets of the Fund will ordinarily be invested in the securities of at
least five different countries.
NATIONWIDE HIGH INCOME BOND FUND
Subadviser: Federated Investment Counseling
Investment Objective: Seeks to provide high current income by investing
primarily in a professionally managed, diversified portfolio of fixed
income securities. To meet its objective, the Fund intends to invest at
least 65% of its assets in lower-rated fixed income securities such as
preferred stocks, bonds, debentures, notes, equipment lease certificates
and equipment trust certificates which are rated BBB or lower by Standard
& Poor's or Fitch Investors Service or Baa or lower by Moody's (or if not
rated, are determined by the Fund's subadviser to be of a comparable
quality). Such investments are commonly referred to as "junk bonds." For
a further discussion of lower-rated securities, please see the "High
Yield Securities" section of the Fund's prospectus.
NATIONWIDE MID CAP INDEX FUND (FORMERLY, NATIONWIDE SELECT ADVISERS MID
CAP FUND)
Subadviser: The Dreyfus Corporation
Investment Objective: Capital appreciation. The Fund seeks to match the
performance of the Standard & Poor's MidCap 400 Index. To pursue this
goal, the Fund generally is fully invested in all 400 stocks included in
this index in proportion to their weighting in the index, and in futures
whose performance is tied to the index. The Fund is neither sponsored by
nor affiliated with Standard & Poor's Corporation.
NATIONWIDE MULTI SECTOR BOND FUND
Subadviser: Miller, Anderson & Sherrerd, LLP
Investment Objective: Primarily seeks a high level of current income.
Capital appreciation is a secondary objective. The Fund seeks to achieve
its objectives by investing in a globally diverse portfolio of
fixed-income investments and by giving the subadviser broad discretion to
deploy the Fund's assets among certain segments of the fixed-income
market that the subadviser believes will best contribute to achievement
of the Fund's investment objectives. The Fund reserves the right to
invest predominantly in securities rated in medium or lower categories,
or as determined by the subadviser to be of comparable quality, commonly
referred to as "junk bonds." Although the subadviser has the ability to
invest up to 100% of the Fund's assets in lower-rated securities, the
subadviser does not anticipate investing in excess of 75% of the Fund's
assets in such securities.
NATIONWIDE SMALL CAP GROWTH FUND (FORMERLY, NATIONWIDE SELECT ADVISERS
SMALL CAP GROWTH FUND)
Subadvisers: Franklin Advisers, Inc., Miller Anderson & Sherrerd, LLP,
Neuberger Berman, LLC.
Investment Objective: Seeks capital growth by investing in a broadly
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diversified portfolio of equity securities issued by U.S. and foreign
companies with market capitalizations in the range of companies
represented by the Russell 2000, known has small cap companies. Under
normal market conditions, the Fund will invest at least 65% of its total
assets in the equity securities of small cap companies. The balance of
the Fund's assets may be invested in equity securities of larger cap
companies.
NATIONWIDE SMALL CAP VALUE FUND
Subadviser: The Dreyfus Corporation
Investment Objective: The Fund intends to pursue its investment objective
by investing, under normal market conditions, at least 75% of the Fund's
total assets in equity securities of companies whose equity market
capitalizations at the time of investments are similar to the market
capitalizations of companies in the Russell 2000 Small Stock Index.
NATIONWIDE SMALL COMPANY FUND
Subadvisers: The Dreyfus Corporation, Neuberger Berman, LLC, Lazard Asset
Management and Strong Capital Management, Inc.
Investment Objective: Under normal market conditions, the Fund will
invest at least 65% of its total assets in equity securities of
companies whose equity market capitalizations at the time of investment
are similar to the market capitalizations of companies in the
Russell 2000 Small Stock Index.
NATIONWIDE STRATEGIC GROWTH FUND
Subadviser: Strong Capital Management Inc.
Investment Objective: Capital growth by investing primarily in equity
securities that the Fund's subadviser believes have above-average growth
prospects. The Fund will generally invest in companies whose earnings are
believed to be in a relatively strong growth trend, and to a lesser
extent, in companies in which significant further growth is not
anticipated but whose market value is thought to be undervalued. Under
normal market conditions, the Fund will invest at least 65% of its total
assets in equity securities, including common stocks, preferred stocks,
and securities convertible into common or preferred stocks, such as
warrants and convertible bonds. The Fund may invest up to 35% of its
total assets in debt obligations, including intermediate- to long-term
corporate or U.S. Government debt securities.
NATIONWIDE STRATEGIC VALUE FUND (NOT AVAILABLE IN CONNECTION WITH
CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR
AFTER MAY 1, 2000)
Subadviser: Strong Capital Management Inc./Schafer Capital Management
Inc.
Investment Objective: Primarily long-term capital appreciation; current
income is a secondary objective. The Fund seeks to meet its objectives by
investing in securities which are believed to offer the possibility of
increase in value, primarily common stocks of established companies
having a strong financial position and a low stock market valuation at
the time of purchase in relation to investment value. Other than
considered appropriate for cash reserves, the Fund will generally
maintain a fully invested position in common stocks of publicly held
companies, primarily in stocks of companies listed on a national
securities exchange or other equity securities (common stock or
securities convertible into common stock). Investments may also be made
in debt securities which are convertible into common stocks and in
warrants or other rights to purchase common stock, which in such case
are considered equity securities by the Fund. Strong Capital Management,
Inc. has subcontracted with Schafer Capital Management, Inc. to
subadvise the Fund.
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NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Neuberger Berman Advisers Management Trust ("NB AMT") is an open-end,
diversified management investment company consisting of several series. Shares
of the series of NB AMT are offered in connection with certain variable annuity
contracts and variable life insurance policies issued through life insurance
company separate accounts and are also offered directly to qualified pension and
retirement plans outside of the separate account context.
The Guardian, Partners and Mid-Cap Growth Portfolios of NB AMT invest all of
their investable assets in a corresponding series of Advisers Managers Trust
managed by Neuberger Berman Management Incorporated ("NB Management"). Each
series then invests in securities in accordance with an investment objective,
policies and limitations identical to those of the Portfolio. This
"master/feeder fund" structure is different from that of many other investment
companies which directly acquire and manage their own portfolios of securities.
(For more information regarding "master/feeder fund" structure, see "Special
Information Regarding Organization, Capitalization, and Other Matters" in the
underlying mutual fund prospectus.) The investment advisor is NB Management.
AMT GUARDIAN PORTFOLIO
Investment Objective: Capital appreciation and secondarily, current income.
The Portfolio and its corresponding series seek to achieve these objectives
by investing in common stocks of long-established, high-quality companies.
NB Management uses a value-oriented investment approach in selecting
securities, looking for low price-to-earnings ratios, strong balance
sheets, solid management, and consistent earnings.
AMT MID-CAP GROWTH PORTFOLIO
Investment Objective: Capital appreciation by investing in equity
securities of medium-sized companies that NB Management believes have the
potential for long-term, above-average capital appreciation. Medium-sized
companies have market capitalizations form $300 million to $10 billion at
the time of investment. The Portfolio and its corresponding series may
invest up to 10% of its net assets, measured at the time of investment, in
corporate debt securities that are below investment grade or, if unrated,
deemed by NB Management to be of comparable quality. Securities that are
below investment grade, as well as unrated securities, are often considered
to be speculative and usually entail greater risk. As a part of the
Portfolio's investment strategy, the Portfolio may invest up to 20% of its
net assets in securities of issuers organized and doing business
principally outside the United States. This limitation does not apply with
respect to foreign securities that are denominated in U.S. dollars.
AMT PARTNERS PORTFOLIO
Investment Objective: Capital growth by investing primarily in the common
stock of established companies. Its investment program seeks securities
believed to be undervalued based on fundamentals such as low
price-to-earnings ratios, consistent cash flows, and the company's track
record through all parts of the market cycle.
OPPENHEIMER VARIABLE ACCOUNT FUNDS
The Oppenheimer variable account Funds are an open-end, diversified management
investment company organized as a Massachusetts business trust in 1984. Shares
of the Funds are sold to provide benefits under variable life insurance policies
and variable annuity contracts. OppenheimerFunds, Inc. is the investment
adviser.
OPPENHEIMER AGGRESSIVE GROWTH FUND/VA (FORMERLY, OPPENHEIMER CAPITAL
APPRECIATION FUND)
Investment Objective: Capital appreciation by investing in "growth type"
companies. Such companies are believed to have relatively favorable
long-term prospects for increasing demand for their goods or
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<PAGE> 81
services, or to be developing new products, services or markets and
normally retain a relatively larger portion of their earnings for research,
development and investment in capital assets. The Fund may also invest in
cyclical industries in "special situations" that OppenheimerFunds, Inc.
believes present opportunities for capital growth.
OPPENHEIMER CAPITAL APPRECIATION FUND/VA (FORMERLY, OPPENHEIMER GROWTH
FUND)
Investment Objective: Capital appreciation by investing in securities of
well-known established companies. Such securities generally have a history
of earnings and dividends and are issued by seasoned companies (companies
which have an operating history of at least five years including
predecessors). Current income is a secondary consideration in the selection
of the Fund's portfolio securities.
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Investment Objective: To seek long-term capital appreciation by investing a
substantial portion of assets in securities of foreign issuers,
"growth-type" companies, cyclical industries and special appreciation
possibilities. These securities may be considered speculative.
OPPENHEIMER MAIN STREET GROWTH & INCOME FUND/VA (FORMERLY, OPPENHEIMER
GROWTH & INCOME FUND)
Investment Objective: High total return, which stocks, preferred stocks,
convertible securities and warrants. Debt investments will include bonds,
participation includes growth in the value of its shares as well as current
income from quality and debt securities. In seeking its investment
objectives, the Fund may invest in equity and debt securities. Equity
investments will include common interests, asset-backed securities,
private-label mortgage-backed securities and CMOs, zero coupon securities
and U.S. debt obligations, and cash and cash equivalents. From time to
time, the Fund may focus on small to medium capitalization issuers, the
securities of which may be subject to greater price volatility than those
of larger capitalized issuers.
STRONG OPPORTUNITY FUND II, INC.
The Strong Opportunity Fund II, Inc. is a diversified, open-end management
company commonly called a mutual fund. The Strong Opportunity Fund II, Inc. was
incorporated in Wisconsin and may only be purchased by the separate accounts of
insurance companies for the purpose of funding variable annuity contracts and
variable life insurance policies. Strong Capital Management Inc. is the
investment adviser for the Fund.
Investment Objective: To seek capital appreciation through investments in a
diversified portfolio of equity securities.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (FORMERLY, MORGAN STANLEY DEAN WITTER
UNIVERSAL FUNDS, INC.)
The Universal Institutional Funds, Inc. is a mutual fund designed to provide
investment vehicles for variable annuity contracts and variable life insurance
policies and for certain tax-qualified investors. Its Emerging Markets Debt
Portfolio is managed by Morgan Stanley Dean Witter Investment Management, Inc.
EMERGING MARKETS DEBT PORTFOLIO
Investment Objective: High total return by investing primarily in dollar
and non-dollar denominated fixed income securities of government and
government-related issuers located in emerging market countries, which
securities provide a high level of current income, while at the same time
holding the potential for capital appreciation if the perceived
creditworthiness of the issuer improves due to improving economic,
financial, political, social or other conditions in the country in which
the issuer is located.
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MID CAP GROWTH PORTFOLIO
Investment Objective: Long-term capital growth by investing primarily in
common stocks and other equity securities of issuers with equity
capitalizations in the range of the companies represented in the Standard &
Poor's Rating Group ("S&P") MidCap 400 Index. Such range is generally $500
million to $6 billion but the range fluctuates over time with changes in
the equity market. Miller Anderson & Sherrerd, LLP is the Portfolio's
investment adviser.
VAN ECK WORLDWIDE INSURANCE TRUST
Van Eck Worldwide Insurance Trust ("Van Eck Trust") is an open-end management
investment company organized as a business trust under the laws of the
Commonwealth of Massachusetts on January 7, 1987. Shares of Van Eck Trust are
offered only to separate accounts of insurance companies to fund the benefits of
variable life insurance policies and variable annuity contracts. The investment
advisor and manager is Van Eck Associates Corporation.
WORLDWIDE EMERGING MARKETS FUND
Investment Objective: Seeks long-term capital appreciation by investing
primarily in equity securities in emerging markets around the world. The
Fund emphasizes investment in countries that, compared to the world's major
economies, exhibit relatively low gross national product per capita, as
well as the potential for rapid economic growth.
WORLDWIDE HARD ASSETS FUND
Investment Objective: Long-term capital appreciation by investing primarily
in "Hard Asset Securities." For the Fund's purpose, "Hard Assets" are real
estate, energy, timber, and industrial and precious metals. Income is a
secondary consideration.
VAN KAMPEN LIFE INVESTMENT TRUST
Van Kampen Life Investment Trust is an open-end diversified management
investment company organized as a Delaware business trust. Shares are offered in
separate portfolios which are sold only to insurance companies to provide
funding for variable life insurance policies and variable annuity contracts. Van
Kampen Asset Management Inc. serves as the Fund's investment adviser.
MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO
Investment Objective: Long-term capital growth by investing principally in
a diversified portfolio of securities of companies operating in the real
estate industry ("Real Estate Securities"). Current income is a secondary
consideration. Real Estate Securities include equity securities, including
common stocks and convertible securities, as well as non-convertible
preferred stocks and debt securities of real estate industry companies. A
"real estate industry company" is a company that derives at least 50% of
its assets (marked to market), gross income or net profits from the
ownership, construction, management or sale of residential, commercial or
industrial real estate. Under normal market conditions, at least 65% of the
Fund's total assets will be invested in Real Estate Securities, primarily
equity securities of real estate investment trusts. The Portfolio may
invest up to 25% of its total assets in securities issued by foreign
issuers, some or all of which may also be Real Estate Securities.
VICTORY VARIABLE INSURANCE FUNDS
The Victory Variable Insurance Funds (the "Trust") is a Delaware business trust
formed on February 11, 1998. The Trust is offered exclusively through contracts
offered by the separate accounts of participating insurance companies. Key Asset
Management Inc. serves as the investment adviser for each fund offered through
the Trust.
DIVERSIFIED STOCK FUND: CLASS A
Investment Objective: Seeks to provide long-term growth of capital. The
Fund pursues its objective by investing primarily in equity securities and
securities convertible into common stocks traded on U.S. exchanges and
issued by large, established companies.
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INVESTMENT QUALITY BOND FUND: CLASS A (NOT AVAILABLE IN CONNECTION WITH
CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR
AFTER MAY 1, 2000)
Investment Objective: Seeks to provide a high level of income. The Fund
pursues its objective by investing primarily in investment-grade bonds
issued by corporations and the U.S. Government and its agencies or
instrumentalities.
SMALL COMPANY OPPORTUNITY FUND: CLASS A
Investment Objective: Seeks to provide capital appreciation. The Fund
pursues its objective by investing primarily in common stocks of smaller
companies that show the potential for high earnings growth in relation to
their price-earnings ratio.
WARBURG PINCUS TRUST
The Warburg Pincus Trust is an open-end management investment company organized
in March 1995 as a business trust under the laws of The Commonwealth of
Massachusetts. The Trust offers its shares to insurance companies for allocation
to separate accounts for the purpose of funding variable annuity and variable
life contracts. Portfolios are managed by Credit Suisse Asset Management, LLC
("Credit Suisse").
VALUE PORTFOLIO (FORMERLY, GROWTH & INCOME PORTFOLIO) (NOT AVAILABLE IN
CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE)
RECEIVED ON OR AFTER MAY 1, 2000)
Investment Objective: Seeks total return by investing primarily in equity
securities of value companies that may or may not pay dividends.
INTERNATIONAL EQUITY PORTFOLIO (NOT AVAILABLE IN CONNECTION WITH CONTRACTS
FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER
SEPTEMBER 27, 1999)
Investment Objective: Long-term capital appreciation by investing
primarily in a broadly diversified portfolio of equity securities of
companies, wherever organized, that in the judgment of Credit Suisse have
their principal business activities and interests outside the United
States. The Portfolio will ordinarily invest substantially all of its
assets, but no less than 65% of its total assets, in common stocks,
warrants and securities convertible into or exchangeable for common
stocks. The Portfolio intends to invest principally in the securities of
financially strong companies with opportunities for growth within growing
international economies and markets through increased earning power and
improved utilization or recognition of assets.
GLOBAL POST-VENTURE CAPITAL PORTFOLIO (FORMERLY, POST-VENTURE PORTFOLIO)
(NOT AVAILABLE IN CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER
APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER SEPTEMBER 27, 1999
Investment Objective: Seeks long-term growth of capital by investing
primarily in equity securities of U.S. and foreign companies considered to
be in their post-venture capital stage of development. Under normal market
conditions, the Portfolio will invest at least 65% of its total assets in
equity securities of "post-venture capital companies." A post-venture
capital company is one that has received venture capital financing either:
(a) during the early stages of the company's existence or the early stages
of the development of a new product or service; or (b) as part of a
restructuring or recapitalization of the company. The Portfolio will invest
in at least three countries including the Unites States.
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APPENDIX B: CONDENSED FINANCIAL INFORMATION
Accumulation unit values for accumulation units outstanding throughout the
period.
<TABLE>
<CAPTION>
NO OPTIONAL BENEFITS ELECTED (TOTAL 1.20%)
(VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.431326 14.495483 16.60% 153,346 1999
Variable Portfolios, 10.000000 12.431326 24.31% 1,288 1998
Inc. - American Century
VP Income & Growth - Q
American Century 12.431326 14.495483 16.60% 218,180 1999
Variable Portfolios, 10.000000 12.431326 24.31% 1,176 1998
Inc. - American Century
VP Income & Growth - NQ
American Century 10.904652 17.674116 62.08% 88,463 1999
Variable Portfolios, 10.000000 10.904652 9.05% 0 1998
Inc. - American Century
VP International - Q
American Century 10.904652 17.674116 62.08% 176,995 1999
Variable Portfolios, 10.000000 10.904652 9.05% 223 1998
Inc. - American Century
VP International - NQ
American Century 11.497731 11.263216 -2.04% 57,164 1999
Variable Portfolios, 10.000000 11.497731 14.98% 0 1998
Inc. - American Century
VP Value - Q
American Century 11.497731 11.263216 -2.04% 100,599 1999
Variable Portfolios, 10.000000 11.497731 14.98% 1,306 1998
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.890242 28.90% 7,628 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.890242 28.90% 6,633 1999
Portfolios - European
Equity Portfolio - NQ
</TABLE>
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<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.758878 16.397708 28.52% 72,938 1999
Responsible Growth 10.000000 12.758878 27.59% 740 1998
Fund, Inc. - Q
The Dreyfus Socially 12.758878 16.397708 28.52% 197,418 1999
Responsible Growth 10.000000 12.758878 27.59% 2,098 1998
Fund, Inc. - NQ
Dreyfus Stock Index 12.367188 14.736468 19.16% 317,764 1999
Fund, Inc. - Q 10.000000 12.367188 23.67% 2,486 1998
Dreyfus Stock Index 12.367188 14.736468 19.16% 883,507 1999
Fund, Inc. - NQ 10.000000 12.367188 23.67% 26,086 1998
Dreyfus Variable 12.207586 13.442893 10.12% 109,356 1999
Investment Fund 10.000000 12.207586 22.08% 0 1998
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.207586 13.442893 10.12% 258,806 1999
Investment Fund 10.000000 12.207586 22.08% 2,910 1998
-Appreciation Portfolio
- NQ(1)
Federated Insurance 10.000000 9.790385 -2.10% 7,252 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.790385 -2.10% 7,843 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.850451 12.440601 4.98% 156,626 1999
Equity-Income 10.000000 11.850451 18.50% 1,331 1998
Portfolio: Service
Class - Q
Fidelity VIP 11.850451 12.440601 4.98% 398,586 1999
Equity-Income 10.000000 11.850451 18.50% 776 1998
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
70
<PAGE> 86
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.015101 17.653733 35.64% 424,562 1999
Portfolio: Service 10.000000 13.015101 30.15% 0 1998
Class - Q
Fidelity VIP Growth 13.015101 17.653733 35.64% 744,435 1999
Portfolio: Service 10.000000 13.015101 30.15% 10,429 1998
Class - NQ
Fidelity VIP High 10.384114 11.087928 6.78% 68,880 1999
Income Portfolio: 10.000000 10.384114 3.84% 878 1998
Service Class - Q
Fidelity VIP High 10.384114 11.087928 6.78% 195,058 1999
Income Portfolio: 10.000000 10.384114 3.84% 1,251 1998
Service Class - NQ
Fidelity VIP Overseas 11.296846 15.900927 40.76% 48,657 1999
Portfolio: Service 10.000000 11.296846 12.97% 1,382 1998
Class - Q
Fidelity VIP Overseas 11.296846 15.900927 40.76% 101,781 1999
Portfolio: Service 10.000000 11.296846 12.97% 811 1998
Class - NQ
Fidelity VIP II 12.602507 15.457984 22.66% 330,761 1999
Contrafund(R) Portfolio: 10.000000 12.602507 26.03% 1,331 1998
Service Class - Q
Fidelity VIP II 12.602507 15.457984 22.66% 666,106 1999
Contrafund(R) Portfolio: 10.000000 12.602507 26.03% 10,719 1998
Service Class - NQ
Fidelity VIP III Growth 12.421717 12.785954 2.93% 107,947 1999
Opportunities 10.000000 12.421717 24.22% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP III Growth 12.421717 12.785954 2.93% 253,025 1999
Opportunities 10.000000 12.421717 24.22% 2,338 1998
Portfolio: Service
Class - NQ
</TABLE>
71
<PAGE> 87
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.392954 12.767993 3.03% 98,307 1999
Appreciation Fund - Q 10.000000 12.392954 23.93% 0 1998
NSAT Capital 12.392954 12.767993 3.03% 339,211 1999
Appreciation Fund - NQ 10.000000 12.392954 23.93% 2,724 1998
NSAT Government Bond 10.174058 9.816007 -3.52% 63,555 1999
Fund - Q 10.000000 10.174058 1.74% 0 1998
NSAT Government Bond 10.174058 9.816007 -3.52% 229,852 1999
Fund - NQ 10.000000 10.174058 1.74% 1,172 1998
NSAT Money Market Fund 10.126097 10.489614 3.59% 250,793 1999
- Q* 10.000000 10.126097 1.26% 0 1998
NSAT Money Market Fund 10.126097 10.489614 3.59% 741,672 1999
- NQ* 10.000000 10.126097 1.26% 48,756 1998
NSAT Total Return Fund 11.968910 12.646339 5.66% 75,208 1999
- Q 10.000000 11.968910 19.69% 0 1998
NSAT Total Return Fund 11.968910 12.646339 5.66% 194,496 1999
- NQ 10.000000 11.968910 19.69% 2,349 1998
NSAT Nationwide 10.772545 10.735723 -0.34% 18,162 1999
Balanced Fund - Q 10.000000 10.772545 7.73% 0 1998
NSAT Nationwide 10.772545 10.735723 -0.34% 36,771 1999
Balanced Fund - NQ 10.000000 10.772545 7.73% 842 1998
NSAT Nationwide Equity 11.927845 13.963829 17.07% 11,784 1999
Income Fund - Q 10.000000 11.927845 19.28% 0 1998
NSAT Nationwide Equity 11.927845 13.963829 17.07% 27,402 1999
Income Fund - NQ 10.000000 11.927845 19.28% 1,552 1998
</TABLE>
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.18%.
72
<PAGE> 88
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Global 11.747364 14.267173 21.45% 21,255 1999
50 Fund - Q(1) 10.000000 11.747364 17.47% 0 1998
NSAT Nationwide Global 11.747364 14.267173 21.45% 54,375 1999
50 Fund - NQ(1) 10.000000 11.747364 17.47% 0 1998
NSAT Nationwide High 10.558563 10.764664 1.95% 13,174 1999
Income Bond Fund - Q 10.000000 10.558563 5.59% 0 1998
NSAT Nationwide High 10.558563 10.764664 1.95% 28,453 1999
Income Bond Fund - NQ 10.000000 10.558563 5.59% 1,154 1998
NSAT Nationwide Mid Cap 12.257790 14.644558 19.47% 3,953 1999
Index Fund - Q(2) 10.000000 12.257790 22.58% 0 1998
NSAT Nationwide Mid Cap 12.257790 14.644558 19.47% 14,427 1999
Index Fund - NQ(2) 10.000000 12.257790 22.58% 0 1998
NSAT Nationwide Multi 10.475252 10.510552 0.34% 22,793 1999
Sector Bond Fund - Q 10.000000 10.475252 4.75% 0 1998
NSAT Nationwide Multi 10.475252 10.510552 0.34% 22,519 1999
Sector Bond Fund - NQ 10.000000 10.475252 4.75% 1,706 1998
NSAT Nationwide Small 10.000000 20.338511 103.39% 14,318 1999
Cap Growth Fund - Q(3)
NSAT Nationwide Small 10.000000 20.338511 103.39% 16,901 1999
Cap Growth Fund - NQ(3)
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(3) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
73
<PAGE> 89
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 12.586199 15.896867 26.30% 16,931 1999
Cap Value Fund - Q 10.000000 12.586199 25.86% 0 1998
NSAT Nationwide Small 12.586199 15.896867 26.30% 55,415 1999
Cap Value Fund - NQ 10.000000 12.586199 25.86% 1,878 1998
NSAT Nationwide Small 12.016781 17.099098 42.29% 26,101 1999
Company Fund - Q 10.000000 12.016781 20.17% 0 1998
NSAT Nationwide Small 12.016781 17.099098 42.29% 54,286 1999
Company Fund - NQ 10.000000 12.016781 20.17% 0 1998
NSAT Nationwide 12.463581 22.750997 82.54% 43,707 1999
Strategic Growth Fund - Q 10.000000 12.463581 24.64% 0 1998
NSAT Nationwide 12.463581 22.750997 82.54% 95,640 1999
Strategic Growth Fund - NQ 10.000000 12.463581 24.64% 0 1998
NSAT Nationwide 12.477330 11.949113 -4.23% 3,411 1999
Strategic Value Fund - Q 10.000000 12.477330 24.77% 853 1998
NSAT Nationwide 12.477330 11.949113 -4.23% 9,951 1999
Strategic Value Fund - NQ 10.000000 12.477330 24.77% 0 1998
Neuberger Berman AMT 12.307946 13.976229 13.55% 43,271 1999
Guardian Portfolio - Q 10.000000 12.307946 23.08% 0 1998
Neuberger Berman AMT 12.307946 13.976229 13.55% 98,016 1999
Guardian Portfolio - NQ 10.000000 12.307946 23.08% 0 1998
Neuberger Berman AMT 13.702754 20.834304 52.04% 53,952 1999
Mid-Cap Growth 10.000000 13.702754 37.03% 0 1998
Portfolio - Q
</TABLE>
74
<PAGE> 90
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 13.702754 20.834304 52.04% 129,643 1999
Mid-Cap Growth 10.000000 13.702754 37.03% 1,744 1998
Portfolio - NQ
Neuberger Berman AMT 11.821068 12.539993 6.08% 39,095 1999
Partners Portfolio - Q 10.000000 11.821068 18.21% 874 1998
Neuberger Berman AMT 11.821068 12.539993 6.08% 88,792 1999
Partners Portfolio - NQ 10.000000 11.821068 18.21% 1,913 1998
Oppenheimer Variable 12.961315 23.512658 81.41% 38,475 1999
Account Funds - 10.000000 12.961315 29.61% 0 1998
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 12.961315 23.512658 81.41% 109,178 1999
Account Funds - 10.000000 12.961315 29.61% 1,383 1998
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
Oppenheimer Variable 12.752843 17.848621 39.96% 91,823 1999
Account Funds - 10.000000 12.752843 27.53% 0 1998
Oppenheimer Capital
Appreciation Fund/VA -
Q(2)
Oppenheimer Variable 12.752843 17.848621 39.96% 184,810 1999
Account Funds - 10.000000 12.752843 27.53% 2,543 1998
Oppenheimer Capital
Appreciation Fund/VA -
NQ(2)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
75
<PAGE> 91
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Variable 12.149185 14.609212 20.25% 108,861 1999
Account Funds - 10.000000 12.149185 21.49% 796 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- Q(1)
Oppenheimer Variable 12.149185 14.609212 20.25% 261,855 1999
Account Funds - 10.000000 12.149185 21.49% 1,940 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- NQ(1)
The Universal 11.400149 14.572201 27.82% 11,108 1999
Institutional Funds, 10.000000 11.400149 14.00% 0 1998
Inc. - Emerging Markets
Debt Portfolio - Q(2)
The Universal 11.400149 14.572201 27.82% 21,560 1999
Institutional Funds, 10.000000 11.400149 14.00% 593 1998
Inc. - Emerging Markets
Debt Portfolio - NQ(2)
Van Eck Worldwide 12.101814 23.947713 97.89% 10,295 1999
Insurance Trust - 10.000000 12.101814 21.02% 0 1998
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 12.101814 23.947713 97.89% 41,623 1999
Insurance Trust - 10.000000 12.101814 21.02% 1,018 1998
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 10.581149 12.649846 19.55% 12,722 1999
Insurance Trust - 10.000000 10.581149 5.81% 0 1998
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 10.581149 12.649846 19.55% 15,637 1999
Insurance Trust - 10.000000 10.581149 5.81% 0 1998
Worldwide Hard Assets
Fund - NQ
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
(2) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
76
<PAGE> 92
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
<S> <C> <C> <C> <C> <C>
Van Kampen Life 10.740684 10.253920 -4.53% 11,674 1999
Investment Trust - 10.000000 10.740684 7.41% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.740684 10.253920 -4.53% 41,535 1999
Investment Trust - 10.000000 10.740684 7.41% 2,201 1998
Morgan Stanley Real
Estate Securities
Portfolio - NQ
Warburg Pincus Trust - 12.739606 20.579437 61.54% 4,931 1999
Global Post-Venture 10.000000 12.739606 27.40% 0 1998
Capital Portfolio - Q(1)
Warburg Pincus Trust - 12.739606 20.579437 61.54% 27,964 1999
Global Post-Venture 10.000000 12.739606 27.40% 0 1998
Capital Portfolio - NQ(1)
Warburg Pincus Trust - 10.801619 16.374564 51.59% 18,175 1999
International Equity 10.000000 10.801619 8.02% 0 1998
Portfolio - Q
Warburg Pincus Trust - 10.801619 16.374564 51.59% 23,601 1999
International Equity 10.000000 10.801619 8.02% 0 1998
Portfolio - NQ
Warburg Pincus Trust - 11.688738 12.269490 4.97% 19,814 1999
Value Portfolio - Q(2) 10.000000 11.688738 16.89% 25 1998
Warburg Pincus Trust - 11.688738 12.269490 4.97% 13,095 1999
Value Portfolio - NQ(2) 10.000000 11.688738 16.89% 0 1998
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
77
<PAGE> 93
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
78
<PAGE> 94
NO OPTIONAL BENEFITS ELECTED (TOTAL 1.20%)(KEY CHOICE)
(VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE
ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.431326 14.495483 16.60% 7,880 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
American Century 12.431326 14.495483 16.60% 16,322 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
American Century 10.904652 17.674116 62.08% 2,182 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
American Century 10.904652 17.674116 62.08% 11,522 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
American Century 11.497731 11.263216 -2.04% 2,975 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
American Century 11.497731 11.263216 -2.04% 4,394 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
Dreyfus Variable 12.207586 13.442893 10.12% 4,088 1999
Investment Fund
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.207586 13.442893 10.12% 13,257 1999
Investment Fund
-Appreciation Portfolio
- NQ(1)
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
79
<PAGE> 95
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.015101 17.653733 35.64% 9,712 1999
Portfolio: Service
Class - Q
Fidelity VIP Growth 13.015101 17.653733 35.64% 21,093 1999
Portfolio: Service
Class - NQ
Fidelity VIP II 12.602507 15.457984 22.66% 18,806 1999
Contrafund(R) Portfolio:
Service Class - Q
Fidelity VIP II 12.602507 15.457984 22.66% 23,364 1999
Contrafund(R) Portfolio:
Service Class - NQ
NSAT Money Market Fund 10.126097 10.489614 3.59% 11,414 1999
- Q*
NSAT Money Market Fund 10.126097 10.489614 3.59% 4,032 1999
- NQ*
NSAT Nationwide Equity 11.927845 13.963829 17.07% 6,957 1999
Income Fund - Q
NSAT Nationwide Equity 11.927845 13.963829 17.07% 13,200 1999
Income Fund - NQ
NSAT Nationwide High 10.558563 10.764664 1.95% 4,534 1999
Income Bond Fund - Q
NSAT Nationwide High 10.558563 10.764664 1.95% 8,123 1999
Income Bond Fund - NQ
NSAT Nationwide Multi 10.475252 10.510552 0.34% 4,401 1999
Sector Bond Fund - Q
</TABLE>
*The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
4.18%.
80
<PAGE> 96
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Multi 10.475252 10.510552 0.34% 5,783 1999
Sector Bond Fund - NQ
NSAT Nationwide Small 12.016781 17.099098 42.29% 208 1999
Company Fund - Q
NSAT Nationwide Small 12.016781 17.099098 42.29% 3,202 1999
Company Fund - NQ
Neuberger Berman AMT 13.702754 20.834304 52.04% 1,400 1999
Mid-Cap Growth
Portfolio - Q
Neuberger Berman AMT 13.702754 20.834304 52.04% 18,869 1999
Mid-Cap Growth
Portfolio - NQ
Neuberger Berman AMT 11.821068 12.539993 6.08% 3,238 1999
Partners Portfolio - Q
Neuberger Berman AMT 11.821068 12.539993 6.08% 3,705 1999
Partners Portfolio - NQ
Oppenheimer Variable 12.961315 23.512658 81.41% 2,414 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 12.961315 23.512658 81.41% 12,069 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
81
<PAGE> 97
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
<S> <C> <C> <C> <C> <C>
Victory Variable 10.000000 10.060160 0.60% 69,363 1999
Insurance Funds -
Diversified Stock Fund:
Class A - Q
Victory Variable 10.000000 10.060160 0.60% 219,452 1999
Insurance Funds -
Diversified Stock Fund:
Class A - NQ
Victory Variable 10.000000 9.930934 -0.69% 21,371 1999
Insurance Funds -
Investment Quality Bond
Fund: Class A - Q
Victory Variable 10.000000 9.930934 -0.69% 50,141 1999
Insurance Funds -
Investment Quality Bond
Fund: Class A - NQ
Victory Variable 10.000000 9.896766 -1.03% 2,419 1999
Insurance Funds - Small
Company Opportunity
Fund: Class A - Q
Victory Variable 10.000000 9.896766 -1.03% 33,474 1999
Insurance Funds - Small
Company Opportunity
Fund: Class A - NQ
Warburg Pincus Trust - 10.801619 16.374564 51.59% 1,716 1999
International Equity
Portfolio - Q
Warburg Pincus Trust - 10.801619 16.374564 51.59% 6,645 1999
International Equity
Portfolio - NQ
</TABLE>
82
<PAGE> 98
OPTIONAL BENEFITS ELECTED (TOTAL 1.25%)
(VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE
ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.429254 14.485724 16.55% 28,163 1999
Variable Portfolios, 10.000000 12.429254 24.29% 0 1998
Inc. - American Century
VP Income & Growth - Q
American Century 12.429254 14.485724 16.55% 70,791 1999
Variable Portfolios, 10.000000 12.429254 24.29% 0 1998
Inc. - American Century
VP Income & Growth - NQ
American Century 10.902825 17.662250 62.00% 15,144 1999
Variable Portfolios, 10.000000 10.902825 9.03% 0 1998
Inc. - American Century
VP International - Q
American Century 10.902825 17.662250 62.00% 39,926 1999
Variable Portfolios, 10.000000 10.902825 9.03% 0 1998
Inc. - American Century
VP International - NQ
American Century 11.495807 11.255628 -2.09% 10,437 1999
Variable Portfolios, 10.000000 11.495807 14.96% 0 1998
Inc - American Century
VP Value - Q
American Century 11.495807 11.255628 -2.09% 27,377 1999
Variable Portfolios, 10.000000 11.495807 14.96% 322 1998
Inc - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.888550 28.89% 2,408 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.888550 28.89% 83 1999
Portfolios - European
Equity Portfolio - NQ
</TABLE>
83
<PAGE> 99
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.756741 16.386683 28.46% 15,724 1999
Responsible Growth 10.000000 12.756741 27.57% 0 1998
Fund, Inc. - Q
The Dreyfus Socially 12.756741 16.386683 28.46% 23,875 1999
Responsible Growth 10.000000 12.756741 27.57% 0 1998
Fund, Inc. - NQ
Dreyfus Stock Index 12.365124 14.726559 19.10% 79,760 1999
Fund, Inc. - Q 10.000000 12.365124 23.65% 0 Z1998
Dreyfus Stock Index 12.365124 14.726559 19.10% 168,117 1999
Fund, Inc. - NQ 10.000000 12.365124 23.65% 1,686 1998
Dreyfus Variable 12.205549 13.433832 10.06% 11,623 1999
Investment Fund 10.000000 12.205549 22.06% 0 1998
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.205549 13.433832 10.06% 32,571 1999
Investment Fund 10.000000 12.205549 22.06% 0 1998
-Appreciation Portfolio
- NQ(1)
Federated Insurance 10.000000 9.787093 -2.13% 407 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.787093 -2.13% 440 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.848469 12.432231 4.93% 38,692 1999
Equity-Income 10.000000 11.848469 18.48% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP 11.848469 12.432231 4.93% 112,541 1999
Equity-Income 10.000000 11.848469 18.48% 1,549 1998
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
84
<PAGE> 100
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.012933 17.641868 35.57% 60,378 1999
Portfolio: Service 10.000000 13.012933 30.13% 0 1998
Class - Q
Fidelity VIP Growth 13.012933 17.641868 35.57% 120,323 1999
Portfolio: Service 10.000000 13.012933 30.13% 1,201 1998
Class - NQ
Fidelity VIP High 10.382374 11.080460 6.72% 18,186 1999
Income Portfolio: 10.000000 10.382374 3.82% 0 1998
Service Class - Q
Fidelity VIP High 10.382374 11.080460 6.72% 37,233 1999
Income Portfolio: 10.000000 10.382374 3.82% 0 1998
Service Class - NQ
Fidelity VIP Overseas 11.294949 15.890221 40.68% 6,281 1999
Portfolio: Service 10.000000 11.294949 12.95% 0 1998
Class - Q
Fidelity VIP Overseas 11.294949 15.890221 40.68% 47,995 1999
Portfolio: Service 10.000000 11.294949 12.95% 0 1998
Class - NQ
Fidelity VIP II 12.600399 15.447579 22.60% 41,329 1999
Contrafund(R) Portfolio: 10.000000 12.600399 26.00% 0 1998
Service Class - Q
Fidelity VIP II 12.600399 15.447579 22.60% 86,270 1999
Contrafund(R) Portfolio: 10.000000 12.600399 26.00% 0 1998
Service Class - NQ
Fidelity VIP III Growth 12.419643 12.777351 2.88% 19,723 1999
Opportunities 10.000000 12.419643 24.20% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP III Growth 12.419643 12.777351 2.88% 33,643 1999
Opportunities 10.000000 12.419643 24.20% 0 1998
Portfolio: Service
Class - NQ
NSAT Capital 12.390885 12.759401 2.97% 39,309 1999
Appreciation Fund - Q 10.000000 12.390885 23.91% 0 1998
</TABLE>
85
<PAGE> 101
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.390885 12.759401 2.97% 38,078 1999
Appreciation Fund - NQ 10.000000 12.390885 23.91% 0 1998
NSAT Government Bond 10.172348 9.809384 -3.57% 24,669 1999
Fund - Q 10.000000 10.172348 1.72% 0 1998
NSAT Government Bond 10.172348 9.809384 -3.57% 45,642 1999
Fund - NQ 10.000000 10.172348 1.72% 442 1998
NSAT Money Market Fund 10.124383 10.482530 3.54% 108,020 1999
- Q* 10.000000 10.124838 1.24% 0 1998
NSAT Money Market Fund 10.124383 10.482530 3.54% 79,313 1999
- NQ* 10.000000 10.124838 1.24% 0 1998
NSAT Total Return Fund 11.966903 12.637807 5.61% 31,348 1999
- Q 10.000000 11.966903 19.67% 0 1998
NSAT Total Return Fund 11.966903 12.637807 5.61% 39,235 1999
- NQ 10.000000 11.966903 19.67% 137 1998
NSAT Nationwide 10.770735 10.728485 -0.39% 659 1999
Balanced Fund - Q 10.000000 10.770735 7.71% 0 1998
NSAT Nationwide 10.770735 10.728485 -0.39% 12,442 1999
Balanced Fund - NQ 10.000000 10.770735 7.71% 0 1998
NSAT Nationwide Equity 11.925844 13.954430 17.01% 1,309 1999
Income Fund - Q 10.000000 11.925844 19.26% 0 1998
NSAT Nationwide Equity 11.925844 13.954430 17.01% 2,203 1999
Income Fund - NQ 10.000000 11.925844 19.26% 0 1998
NSAT Nationwide Global 11.745400 14.257588 21.39% 1,197 1999
50 Fund(1) - Q 10.000000 11.745400 17.45% 0 1998
NSAT Nationwide Global 11.745400 14.257588 21.39% 16,046 1999
50 Fund(1) - NQ 10.000000 11.745400 17.45% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Nationwide Money Market Fund as of December 31,
199 was 4.13%.
86
<PAGE> 102
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide High 10.556787 10.757403 1.90% 2,457 1999
Income Bond Fund - Q 10.000000 10.556787 5.57% 0 1998
NSAT Nationwide High 10.556787 10.757403 1.90% 8,309 1999
Income Bond Fund - NQ 10.000000 10.556787 5.57% 0 1998
NSAT Nationwide Mid Cap 12.255745 14.634711 19.41% 80 1999
Index Fund - Q(1) 10.000000 12.255745 22.56% 0 1998
NSAT Nationwide Mid Cap 12.255745 14.634711 19.41% 2,497 1999
Index Fund - NQ(1) 10.000000 12.255745 22.56% 0 1998
NSAT Nationwide Multi 10.473496 10.503468 0.29% 182 1999
Sector Bond Fund - Q 10.000000 10.473496 4.73% 0 1998
NSAT Nationwide Multi 10.473496 10.503468 0.29% 3,824 1999
Sector Bond Fund - NQ 10.000000 10.473496 4.73% 0 1998
NSAT Nationwide Small 10.000000 20.331712 103.32% 681 1999
Cap Growth Fund - Q(2)
NSAT Nationwide Small 10.000000 20.331712 103.32% 3,667 1999
Cap Growth Fund - NQ(2)
NSAT Nationwide Small 12.584102 15.886176 26.24% 6,706 1999
Cap Value Fund - Q 10.000000 12.584102 25.84% 0 1998
NSAT Nationwide Small 12.584102 15.886176 26.24% 7,074 1999
Cap Value Fund - NQ 10.000000 12.584102 25.84% 310 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
87
<PAGE> 103
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 12.014774 17.087592 42.22% 5,137 1999
Company Fund - Q 10.000000 12.014774 20.15% 0 1998
NSAT Nationwide Small 12.014774 17.087592 42.22% 15,996 1999
Company Fund - NQ 10.000000 12.014774 20.15% 0 1998
NSAT Nationwide 12.461498 22.735718 82.45% 8,954 1999
Strategic Growth Fund - 10.000000 12.461498 24.61% 0 1998
Q
NSAT Nationwide 12.461498 22.735718 82.45% 26,153 1999
Strategic Growth Fund - 10.000000 12.461498 24.61% 0 1998
NQ
NSAT Nationwide 12.475236 11.941061 -4.28% 0 1999
Strategic Value Fund - Q 10.000000 12.475236 24.75% 0 1998
NSAT Nationwide 12.475236 11.941061 -4.28% 6,718 1999
Strategic Value Fund - 10.000000 12.475236 24.75% 0 1998
NQ
Neuberger Berman AMT 12.305897 13.966839 13.50% 4,771 1999
Guardian Portfolio - Q 10.000000 12.305897 23.06% 0 1998
Neuberger Berman AMT 12.305897 13.966839 13.50% 9,284 1999
Guardian Portfolio - NQ 10.000000 12.305897 23.06% 0 1998
Neuberger Berman AMT 13.700471 20.820318 51.97% 6,222 1999
Mid-Cap Growth 10.000000 13.700471 37.00% 0 1998
Portfolio - Q
Neuberger Berman AMT 13.700471 20.820318 51.97% 21,721 1999
Mid-Cap Growth 10.000000 13.700471 37.00% 0 1998
Portfolio - NQ
</TABLE>
88
<PAGE> 104
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 11.819096 12.531553 6.03% 4,561 1999
Partners Portfolio - Q 10.000000 11.819096 18.19% 0 1998
Neuberger Berman AMT 11.819096 12.531553 6.03% 29,890 1999
Partners Portfolio - NQ 10.000000 11.819096 18.19% 789 1998
Oppenheimer Variable 12.959156 23.496887 81.31% 11,956 1999
Account Funds - 10.000000 12.959156 29.59% 0 1998
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 12.959156 23.496887 81.31% 34,519 1999
Account Funds - 10.000000 12.959156 29.59% 678 1998
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
Oppenheimer Variable 12.750719 17.836627 39.89% 8,852 1999
Account Funds - 10.000000 12.750719 27.51% 0 1998
Oppenheimer Capital
Appreciation Fund/VA -
Q(2)
Oppenheimer Variable 12.750719 17.836627 39.89% 37,199 1999
Account Funds - 10.000000 12.750719 27.51% 0 1998
Oppenheimer Capital
Appreciation Fund/VA -
NQ(2)
Oppenheimer Variable 12.147153 14.599387 20.19% 24,445 1999
Account Funds - 10.000000 12.147153 21.47% 0 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- Q(3)
Oppenheimer Variable 12.147153 14.599387 20.19% 74,139 1999
Account Funds - 10.000000 12.147153 21.47% 0 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- NQ(3)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
89
<PAGE> 105
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
The Universal 11.398245 14.562396 27.76% 55 1999
Institutional Funds, 10.000000 11.398245 13.98% 0 1998
Inc. - Emerging Markets
Debt Portfolio - Q1
The Universal 11.398245 14.562396 27.76% 315 1999
Institutional Funds, 10.000000 11.398245 13.98% 0 1998
Inc. - Emerging Markets
Debt Portfolio - NQ1
Van Eck Worldwide 12.099788 23.931619 97.79% 2,614 1999
Insurance Trust - 10.000000 12.099788 21.00% 0 1998
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 12.099788 23.931619 97.79% 7,039 1999
Insurance Trust - 10.000000 12.099788 21.00% 0 1998
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 10.579367 12.641312 19.49% 57 1999
Insurance Trust - 10.000000 10.579367 5.79% 0 1998
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 10.579367 12.641312 19.49% 696 1999
Insurance Trust - 10.000000 10.579367 5.79% 0 1998
Worldwide Hard Assets
Fund - NQ
Van Kampen Life 10.738882 10.247016 -4.58% 704 1999
Investment Trust - 10.000000 10.738882 7.39% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.738882 10.247016 -4.58% 557 1999
Investment Trust - 10.000000 10.738882 7.39% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - NQ
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
90
<PAGE> 106
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
Warburg Pincus Trust - 12.737475 20.565582 61.46% 3,406 1999
Global Post-Venture 10.000000 12.737475 27.37% 0 1998
Capital Portfolio - Q(1)
Warburg Pincus Trust - 12.737475 20.565582 61.46% 175 1999
Global Post-Venture 10.000000 12.737475 27.37% 0 1998
Capital Portfolio - NQ(1)
Warburg Pincus Trust - 10.799816 16.363554 51.52% 17,984 1999
International Equity 10.000000 10.799816 8.00% 0 1998
Portfolio - Q
Warburg Pincus Trust - 10.799816 16.363554 51.52% 7,363 1999
International Equity 10.000000 10.799816 8.00% 0 1998
Portfolio - NQ
Warburg Pincus Trust - 11.686779 12.261224 4.92% 2,849 1999
Value Portfolio - Q(2) 10.000000 11.686779 16.87% 0 1998
Warburg Pincus Trust - 11.686779 12.261224 4.92% 1,916 1999
Value Portfolio - NQ(2) 10.000000 11.686779 16.87% 0 1998
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
91
<PAGE> 107
OPTIONAL BENEFITS ELECTED (TOTAL 1.25%)(KEY CHOICE)
(VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE
ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.429254 14.485724 16.55% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
American Century 12.429254 14.485724 16.55% 2,511 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
American Century 10.902825 17.662250 62.00% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
American Century 10.902825 17.662250 62.00% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
American Century 11.495807 11.255628 -2.09% 0 1999
Variable Portfolios,
Inc - American Century
VP Value - Q
American Century 11.495807 11.255628 -2.09% 1,466 1999
Variable Portfolios,
Inc - American Century
VP Value - NQ
Dreyfus Variable 12.205549 13.433832 10.06% 0 1999
Investment Fund
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.205549 13.433832 10.06% 287 1999
Investment Fund
-Appreciation Portfolio
- NQ(1)
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
92
<PAGE> 108
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 13.012933 17.641868 35.57% 0 1999
Portfolio: Service
Class - Q
Fidelity VIP Growth 13.012933 17.641868 35.57% 872 1999
Portfolio: Service
Class - NQ
Fidelity VIP II 12.600399 15.447579 22.60% 0 1999
Contrafund(R) Portfolio:
Service Class - Q
Fidelity VIP II 12.600399 15.447579 22.60% 217 1999
Contrafund(R) Portfolio:
Service Class - NQ
NSAT Nationwide High 10.556787 10.757403 1.90% 0 1999
Income Bond Fund - Q
NSAT Nationwide High 10.556787 10.757403 1.90% 1,538 1999
Income Bond Fund - NQ
NSAT Nationwide Multi 10.473496 10.503468 0.29% 0 1999
Sector Bond Fund - Q
NSAT Nationwide Multi 10.473496 10.503468 0.29% 0 1999
Sector Bond Fund - NQ
NSAT Money Market Fund 10.124383 10.482530 3.54% 0 1999
- Q*
NSAT Money Market Fund 10.124383 10.482530 3.54% 0 1999
- NQ*
NSAT Nationwide Equity 11.925844 13.954430 17.01% 0 1999
Income Fund - Q
</TABLE>
* The 7 day yield for the NSAT Nationwide Money Market Fund as of December 31,
1999 was 4.13%
93
<PAGE> 109
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Equity 11.925844 13.954430 17.01% 52 1999
Income Fund - NQ
NSAT Nationwide Small 12.014774 17.087592 42.22% 0 1999
Company Fund - Q
NSAT Nationwide Small 12.014774 17.087592 42.22% 0 1999
Company Fund - NQ
Neuberger Berman AMT 13.700471 20.820318 51.97% 0 1999
Mid-Cap Growth
Portfolio - Q
Neuberger Berman AMT 13.700471 20.820318 51.97% 0 1999
Mid-Cap Growth
Portfolio - NQ
Neuberger Berman AMT 11.819096 12.531553 6.03% 0 1999
Partners Portfolio - Q
Neuberger Berman AMT 11.819096 12.531553 6.03% 1,364 1999
Partners Portfolio - NQ
Oppenheimer Variable 12.959156 23.496887 81.31% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 12.959156 23.496887 81.31% 782 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
94
<PAGE> 110
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
Victory Variable 10.000000 10.057633 0.58% 0 1999
Insurance Funds -
Diversified Stock Fund:
Class A - Q
Victory Variable 10.000000 10.057633 0.58% 4,891 1999
Insurance Funds -
Diversified Stock Fund:
Class A - NQ
Victory Variable 10.000000 9.928452 -0.72% 0 1999
Insurance Funds -
Investment Quality Bond
Fund: Class A - Q
Victory Variable 10.000000 9.928452 -0.72% 883 1999
Insurance Funds -
Investment Quality Bond
Fund: Class A - NQ
Victory Variable 10.000000 9.894290 -1.06% 0 1999
Insurance Funds - Small
Company Opportunity
Fund: Class A - Q
Victory Variable 10.000000 9.894290 -1.06% 772 1999
Insurance Funds - Small
Company Opportunity
Fund: Class A - NQ
Warburg Pincus Trust - 10.799816 16.363554 51.52% 0 1999
International Equity
Portfolio - Q
Warburg Pincus Trust - 10.799816 16.363554 51.52% 0 1999
International Equity
Portfolio - NQ
</TABLE>
95
<PAGE> 111
OPTIONAL BENEFITS ELECTED (TOTAL 1.50%)
(VARIABLE ACCOUNT CHARGES OF 1.50% OF THE DAILY NET ASSETS OF THE VARIABLE
ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.502898 14.534695 16.25% 839 1999
Variable Portfolios, 10.000000 12.502898 25.03% 0 1998
Inc. - American Century
VP Income & Growth - Q
American Century 12.502898 14.534695 16.25% 3,976 1999
Variable Portfolios, 10.000000 12.502898 25.03% 0 1998
Inc. - American Century
VP Income & Growth - NQ
American Century 12.049887 19.471172 61.59% 4,363 1999
Variable Portfolios, 10.000000 12.049887 20.50% 0 1998
Inc. - American Century
VP International - Q
American Century 12.049887 19.471172 61.59% 20,263 1999
Variable Portfolios, 10.000000 12.049887 20.50% 0 1998
Inc. - American Century
VP International - NQ
American Century 11.268440 11.005082 -2.34% 180 1999
Variable Portfolios, 10.000000 11.268440 12.68% 0 1998
Inc. - American Century
VP Value - Q
American Century 11.268440 11.005082 -2.34% 749 1999
Variable Portfolios, 10.000000 11.268440 12.68% 0 1998
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.880083 28.80% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.880083 28.80% 0 1999
Portfolios - European
Equity Portfolio - NQ
</TABLE>
96
<PAGE> 112
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.772030 16.364824 29.13% 2,611 1999
Responsible Growth 10.000000 12.772030 27.72% 0 1998
Fund, Inc. - Q
The Dreyfus Socially 12.772030 16.364824 29.13% 5,743 1999
Responsible Growth 10.000000 12.772030 27.72% 0 1998
Fund, Inc. - NQ
Dreyfus Stock Index 12.451705 14.792159 18.80% 4,808 1999
Fund, Inc. - Q 10.000000 12.451705 24.52% 0 1998
Dreyfus Stock Index 12.451705 14.792159 18.80% 126,089 1999
Fund, Inc. - NQ 10.000000 12.451705 24.52% 0 1998
Dreyfus Variable 12.377494 13.588614 9.78% 433 1999
Investment Fund 10.000000 12.377494 23.77% 0 1998
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.377494 13.588614 9.78% 7,169 1999
Investment Fund 10.000000 12.377494 23.77% 0 1998
-Appreciation Portfolio
- NQ(1)
Federated Insurance 10.000000 9.770666 -2.29% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.770666 -2.29% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.797885 12.347825 4.66% 5,165 1999
Equity-Income 10.000000 11.797885 17.98% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP 11.797885 12.347825 4.66% 11,769 1999
Equity-Income 10.000000 11.797885 17.98% 0 1998
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
97
<PAGE> 113
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.901477 17.446540 35.23% 6,024 1999
Portfolio: Service 10.000000 12.901477 29.01% 0 1998
Class - Q
Fidelity VIP Growth 12.901477 17.446540 35.23% 37,910 1999
Portfolio: Service 10.000000 12.901477 29.01% 0 1998
Class - NQ
Fidelity VIP High 10.519957 11.198884 6.45% 4,504 1999
Income Portfolio: 10.000000 10.519957 5.20% 0 1998
Service Class - Q
Fidelity VIP High 10.519957 11.198884 6.45% 353 1999
Income Portfolio: 10.000000 10.519957 5.20% 0 1998
Service Class - NQ
Fidelity VIP Overseas 12.175055 17.085125 40.33% 4,121 1999
Portfolio: Service 10.000000 12.175055 21.75% 0 1998
Class - Q
Fidelity VIP Overseas 12.175055 17.085125 40.33% 4,531 1999
Portfolio: Service 10.000000 12.175055 21.75% 0 1998
Class - NQ
Fidelity VIP II 12.784276 15.633362 22.29% 6,557 1999
Contrafund(R) Portfolio: 10.000000 12.784276 27.84% 0 1998
Service Class -Q
Fidelity VIP II 12.784276 15.633362 22.29% 41,072 1999
Contrafund(R) Portfolio: 10.000000 12.784276 27.84% 0 1998
Service Class -NQ
Fidelity VIP III Growth 12.297109 12.619265 2.62% 1,253 1999
Opportunities 10.000000 12.297109 22.97% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP III Growth 12.297109 12.619265 2.62% 9,790 1999
Opportunities 10.000000 12.297109 22.97% 0 1998
Portfolio: Service
Class - NQ
NSAT Capital 12.427070 17.764281 2.71% 668 1999
Appreciation Fund - Q 10.000000 12.427070 24.27% 0 1998
</TABLE>
98
<PAGE> 114
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.427070 17.764281 2.71% 16,685 1999
Appreciation Fund - NQ 10.000000 12.427070 24.27% 0 1998
NSAT Government Bond 9.843122 9.467860 -3.81% 0 1999
Fund - Q 10.000000 9.843122 -1.57% 0 1998
NSAT Government Bond 9.843122 9.467860 -3.81% 2,080 1999
Fund - NQ 10.000000 9.843122 -1.57% 0 1998
NSAT Money Market Fund 10.085474 10.415808 3.28% 8,140 1999
- Q* 10.000000 10.085474 0.85% 0 1998
NSAT Money Market Fund 10.085474 10.415808 3.28% 35,979 1999
- NQ* 10.000000 10.085474 0.85% 0 1998
NSAT Total Return Fund 11.981226 12.620906 5.34% 0 1999
- Q 10.000000 11.981226 19.81% 0 1998
NSAT Total Return Fund 11.981226 12.620906 5.34% 1,493 1999
- NQ 10.000000 11.981226 19.81% 0 1998
NSAT Nationwide 10.666693 10.597955 -0.64% 1,074 1999
Balanced Fund - Q 10.000000 10.666693 6.67% 0 1998
NSAT Nationwide 10.666693 10.597955 -0.64% 4,597 1999
Balanced Fund - NQ 10.000000 10.666693 6.67% 0 1998
NSAT Nationwide Equity 11.834345 13.812331 16.71% 0 1999
Income Fund - Q 10.000000 11.834345 18.34% 0 1998
NSAT Nationwide Equity 11.834345 13.812331 16.71% 0 1999
Income Fund - NQ 10.000000 11.834345 18.34% 0 1998
NSAT Nationwide Global 12.199950 14.771891 21.08% 0 1999
50 Fund - Q(1) 10.000000 12.199950 22.00% 0 1998
NSAT Nationwide Global 12.199950 14.771891 21.08% 2,843 1999
50 Fund - NQ(1) 10.000000 12.199950 22.00% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.87%
99
<PAGE> 115
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide High 10.329379 10.499020 1.64% 0 1999
Income Bond Fund - Q 10.000000 10.329379 3.29% 0 1998
NSAT Nationwide High 10.329379 10.499020 1.64% 845 1999
Income Bond Fund - NQ 10.000000 10.329379 3.29% 0 1998
NSAT Nationwide Mid Cap 12.241505 14.580726 19.11% 95 1999
Index Fund - Q(1) 10.000000 12.241505 22.42% 0 1998
NSAT Nationwide Mid Cap 12.241505 14.580726 19.11% 828 1999
Index Fund - NQ(1) 10.000000 12.241505 22.42% 0 1998
NSAT Nationwide Multi 10.235484 10.238786 0.03% 0 1999
Sector Bond Fund - Q 10.000000 10.235484 2.35% 0 1998
NSAT Nationwide Multi 10.235484 10.238786 0.03% 510 1999
Sector Bond Fund - NQ 10.000000 10.235484 2.35% 0 1998
NSAT Nationwide Small 10.000000 20.297724 102.98% 0 1999
Cap Growth Fund - Q(2)
NSAT Nationwide Small 10.000000 20.297724 102.98% 15,068 1999
Cap Growth Fund - NQ(2)
NSAT Nationwide Small 12.951308 16.308373 25.92% 86 1999
Cap Value Fund - Q 10.000000 12.951308 29.51% 0 1998
NSAT Nationwide Small 12.951308 16.308373 25.92% 11,596 1999
Cap Value Fund - NQ 10.000000 12.951308 29.51% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
100
<PAGE> 116
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 12.110854 17.180698 41.86% 468 1999
Company Fund - Q 10.000000 12.110854 21.11% 0 1998
NSAT Nationwide Small 12.110854 17.180698 41.86% 904 1999
Company Fund - NQ 10.000000 12.110854 21.11% 0 1998
NSAT Nationwide 12.655972 23.032196 81.99% 518 1999
Strategic Growth Fund - Q 10.000000 12.655972 26.56% 0 1998
NSAT Nationwide 12.655972 23.032196 81.99% 14,458 1999
Strategic Growth Fund - NQ 10.000000 12.655972 26.56% 0 1998
NSAT Nationwide 13.015559 12.426696 -4.52% 0 1999
Strategic Value Fund - Q 10.000000 13.015559 30.16% 0 1998
NSAT Nationwide 13.015559 12.426696 -4.52% 0 1999
Strategic Value Fund - NQ 10.000000 13.015559 30.16% 0 1998
Neuberger Berman AMT 12.874049 14.574691 13.21% 0 1999
Guardian Portfolio - Q 10.000000 12.874049 28.74% 0 1998
Neuberger Berman AMT 12.874049 14.574691 13.21% 4,594 1999
Guardian Portfolio - NQ 10.000000 12.874049 28.74% 0 1998
Neuberger Berman AMT 14.063808 21.318413 51.58% 277 1999
Mid-Cap Growth 10.000000 14.063808 40.64% 0 1998
Portfolio - Q
Neuberger Berman AMT 14.063808 21.318413 51.58% 2,169 1999
Mid-Cap Growth 10.000000 14.063808 40.64% 0 1998
Portfolio - NQ
Neuberger Berman AMT 11.846069 12.528364 5.76% 14 1999
Partners Portfolio - Q 10.000000 11.846069 18.46% 0 1998
</TABLE>
101
<PAGE> 117
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 11.846069 12.528364 5.76% 3,651 1999
Partners Portfolio - NQ 10.000000 11.846069 18.46% 0 1998
Oppenheimer Variable 13.178533 23.834283 80.86% 824 1999
Account Funds - 10.000000 13.178533 31.79% 0 1998
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 13.178533 23.834283 80.86% 21,397 1999
Account Funds - 10.000000 13.178533 31.79% 0 1998
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
Oppenheimer Variable 13.231670 18.462618 39.53% 927 1999
Account Funds - 10.000000 13.178533 31.79% 0 1998
Oppenheimer Capital
Appreciation Fund/VA -
Q(2)
Oppenheimer Variable 13.231670 18.462618 39.53% 9,849 1999
Account Funds - 10.000000 13.231670 32.23% 0 1998
Oppenheimer Capital
Appreciation Fund/VA -
NQ(2)
Oppenheimer Variable 12.328212 14.779520 19.88% 4,133 1999
Account Funds - 10.000000 12.328212 23.28% 0 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- Q(3)
Oppenheimer Variable 12.328212 14.779520 19.88% 8,982 1999
Account Funds - 10.000000 12.328212 23.28% 0 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- NQ(3)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
102
<PAGE> 118
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
The Universal 11.383996 14.507420 27.44% 0 1999
Institutional Funds, 10.000000 11.383996 13.84% 0 1998
Inc. - Emerging Markets
Debt Portfolio - Q(1)
The Universal 11.383996 14.507420 27.44% 0 1999
Institutional Funds, 10.000000 11.383996 13.84% 0 1998
Inc. - Emerging Markets
Debt Portfolio - NQ(1)
Van Eck Worldwide 12.621572 24.900624 97.29% 0 1999
Insurance Trust - 10.000000 12.621572 26.22% 0 1998
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 12.621572 24.900624 97.29% 338 1999
Insurance Trust - 10.000000 12.621572 26.22% 0 1998
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 9.908503 11.809742 19.19% 0 1999
Insurance Trust - 10.000000 9.908503 -0.91% 0 1998
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 9.908503 11.809742 19.19% 0 1999
Insurance Trust - 10.000000 9.908503 -0.91% 0 1998
Worldwide Hard Assets
Fund - NQ
Van Kampen Life 10.400818 9.899304 -4.82% 0 1999
Investment Trust - 10.000000 10.400818 4.01% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.400818 9.899304 -4.82% 85 1999
Investment Trust - 10.000000 10.400818 4.01% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - NQ
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
103
<PAGE> 119
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Warburg Pincus Trust - 12.826101 20.656350 61.05% 0 1999
Global Post-Venture 10.000000 12.826101 28.26% 0 1998
Capital Portfolio - Q(1)
Warburg Pincus Trust - 12.826101 20.656350 61.05% 0 1999
Global Post-Venture 10.000000 12.826101 28.26% 0 1998
Capital Portfolio - NQ(1)
Warburg Pincus Trust - 11.540306 17.441358 51.13% 0 1999
International Equity 10.000000 11.540306 15.40% 0 1998
Portfolio - Q
Warburg Pincus Trust - 11.540306 17.441358 51.13% 1,102 1999
International Equity 10.000000 11.540306 15.40% 0 1998
Portfolio - NQ
Warburg Pincus Trust - 11.884096 12.436688 4.65% 0 1999
Value Portfolio - Q(2) 10.000000 11.884096 18.84% 0 1998
Warburg Pincus Trust - 11.884096 12.436688 4.65% 0 1999
Value Portfolio - NQ(2) 10.000000 11.884096 18.84% 0 1998
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund, the
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
104
<PAGE> 120
OPTIONAL BENEFITS ELECTED (TOTAL 1.50%)(KEY CHOICE)
(VARIABLE ACCOUNT CHARGES OF 1.50% OF THE DAILY
NET ASSETS OF THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.502898 14.534695 16.25% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
American Century 12.502898 14.534695 16.25% 270 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
American Century 12.049887 19.471172 61.59% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
American Century 12.049887 19.471172 61.59% 93 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
American Century 11.268440 11.005082 -2.34% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
American Century 11.268440 11.005082 -2.34% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
Dreyfus Variable 12.377494 13.588614 9.78% 0 1999
Investment Fund
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.377494 13.588614 9.78% 0 1999
Investment Fund
-Appreciation Portfolio
- NQ(1)
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
105
<PAGE> 121
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.901477 17.446540 35.23% 0 1999
Portfolio: Service
Class - Q
Fidelity VIP Growth 12.901477 17.446540 35.23% 0 1999
Portfolio: Service
Class - NQ
Fidelity VIP II 12.784276 15.633362 22.29% 0 1999
Contrafund(R) Portfolio:
Service Class - Q
Fidelity VIP II 12.784276 15.633362 22.29% 65 1999
Contrafund(R) Portfolio:
Service Class - NQ
NSAT Money Market Fund 10.085474 10.415808 3.28% 0 1999
- Q*
NSAT Money Market Fund 10.085474 10.415808 3.28% 0 1999
- NQ*
NSAT Nationwide Equity 11.834345 13.812331 16.71% 0 1999
Income Fund - Q
NSAT Nationwide Equity 11.834345 13.812331 16.71% 0 1999
Income Fund - NQ
NSAT Nationwide High 10.329379 10.499020 1.64% 0 1999
Income Bond Fund - Q
NSAT Nationwide High 10.329379 10.499020 1.64% 845 1999
Income Bond Fund - NQ
NSAT Nationwide Multi 10.235484 10.238786 0.03% 0 1999
Sector Bond Fund - Q
</TABLE>
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.87%
106
<PAGE> 122
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Multi 10.235484 10.238786 0.03% 510 1999
Sector Bond Fund - NQ
NSAT Nationwide Small 12.110854 17.180698 41.86% 0 1999
Company Fund - Q
NSAT Nationwide Small 12.110854 17.180698 41.86% 0 1999
Company Fund - NQ
Neuberger Berman AMT 14.063808 21.318413 51.58% 0 1999
Mid-Cap Growth
Portfolio - Q
Neuberger Berman AMT 14.063808 21.318413 51.58% 84 1999
Mid-Cap Growth
Portfolio - NQ
Neuberger Berman AMT 11.846069 12.528364 5.76% 0 1999
Partners Portfolio - Q
Neuberger Berman AMT 11.846069 12.528364 5.76% 0 1999
Partners Portfolio - NQ
Oppenheimer Variable 13.178533 23.834283 80.86% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 13.178533 23.834283 80.86% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
107
<PAGE> 123
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Victory Variable 10.000000 10.045034 0.45% 1,414 1999
Insurance Funds -
Diversified Stock Fund:
Class A - Q
Victory Variable 10.000000 10.045034 0.45% 3,685 1999
Insurance Funds -
Diversified Stock Fund:
Class A - NQ
Victory Variable 10.000000 9.916014 -0.84% 390 1999
Insurance Funds -
Investment Quality Bond
Fund: Class A - Q
Victory Variable 10.000000 9.916014 -0.84% 0 1999
Insurance Funds -
Investment Quality Bond
Fund: Class A - NQ
Victory Variable 10.000000 9.881888 -1.18% 208 1999
Insurance Funds - Small
Company Opportunity
Fund: Class A - Q
Victory Variable 10.000000 9.881888 -1.18% 638 1999
Insurance Funds - Small
Company Opportunity
Fund: Class A - NQ
Warburg Pincus Trust - 11.540306 17.441358 51.13% 0 1999
International Equity 10.000000 11.540306 15.40% 0 1998
Portfolio - Q
Warburg Pincus Trust - 11.540306 17.441358 51.13% 0 1999
International Equity 10.000000 11.540306 15.40% 0 1998
Portfolio - NQ
</TABLE>
108
<PAGE> 124
OPTIONAL BENEFITS ELECTED (TOTAL 1.55%)
(VARIABLE ACCOUNT CHARGES OF 1.55% OF THE DAILY
NET ASSETS OF THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.501318 14.525483 16.19% 0 1999
Variable Portfolios, 10.000000 12.501318 25.01% 0 1998
Inc. - American Century
VP Income & Growth - Q
American Century 12.501318 14.525483 16.19% 0 1999
Variable Portfolios, 10.000000 12.501318 25.01% 0 1998
Inc. - American Century
VP Income & Growth - NQ
American Century 12.048368 19.458849 61.51% 0 1999
Variable Portfolios, 10.000000 12.048368 20.48% 0 1998
Inc. - American Century
VP International - Q
American Century 12.048368 19.458849 61.51% 175 1999
Variable Portfolios, 10.000000 12.048368 20.48% 0 1998
Inc. - American Century
VP International - NQ
American Century 11.267010 10.998104 -2.39% 0 1999
Variable Portfolios, 10.000000 11.267010 12.67% 0 1998
Inc. - American Century
VP Value - Q
American Century 11.267010 10.998104 -2.39% 0 1999
Variable Portfolios, 10.000000 11.267010 12.67% 0 1998
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.878387 28.78% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.878387 28.78% 0 1999
Portfolios - European
Equity Portfolio - NQ
</TABLE>
109
<PAGE> 125
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.770419 16.354471 28.07% 0 1999
Responsible Growth 10.000000 12.770419 27.70% 0 1998
Fund, Inc. - Q
The Dreyfus Socially 12.770419 16.354471 28.07% 0 1999
Responsible Growth 10.000000 12.770419 27.70% 0 1998
Fund, Inc. - NQ
Dreyfus Stock Index 12.450128 14.782794 18.74% 0 1999
Fund, Inc. - Q 10.000000 12.450128 24.50% 0 1998
Dreyfus Stock Index 12.450128 14.782794 18.74% 762 1999
Fund, Inc. - NQ 10.000000 12.450128 24.50% 0 1998
Dreyfus Variable 12.375935 13.580004 9.73% 0 1999
Investment Fund 10.000000 12.375935 23.76% 0 1998
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.375935 13.580004 9.73% 337 1999
Investment Fund 10.000000 12.375935 23.76% 0 1998
-Appreciation Portfolio
- NQ(1)
Federated Insurance 10.000000 9.767363 -2.33% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.767363 -2.33% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.796399 12.339995 4.61% 0 1999
Equity-Income 10.000000 11.796399 17.96% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP 11.796399 12.339995 4.61% 3,242 1999
Equity-Income 10.000000 11.796399 17.96% 0 1998
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
110
<PAGE> 126
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.899854 17.435504 35.16% 0 1999
Portfolio: Service 10.000000 12.899854 29.00% 0 1998
Class - Q
Fidelity VIP Growth 12.899854 17.435504 35.16% 276 1999
Portfolio: Service 10.000000 12.899854 29.00% 0 1998
Class - NQ
Fidelity VIP High 10.518622 11.191773 6.40% 0 1999
Income Portfolio: 10.000000 10.518622 5.19% 0 1998
Service Class - Q
Fidelity VIP High 10.518622 11.191773 6.40% 718 1999
Income Portfolio: 10.000000 10.518622 5.19% 0 1998
Service Class - NQ
Fidelity VIP Overseas 12.173522 17.074312 40.26% 0 1999
Portfolio: Service 10.000000 12.173522 21.74% 0 1998
Class - Q
Fidelity VIP Overseas 12.173522 17.074312 40.26% 190 1999
Portfolio: Service 10.000000 12.173522 21.74% 0 1998
Class - NQ
Fidelity VIP II 12.782661 15.623458 22.22% 3,468 1999
Contrafund(R) Portfolio: 10.000000 12.782661 27.83% 0 1998
Service Class -Q
Fidelity VIP II 12.782661 15.623458 22.22% 873 1999
Contrafund(R) Portfolio: 10.000000 12.782661 27.83% 0 1998
Service Class -NQ
Fidelity VIP III Growth 12.295562 12.611273 2.57% 3,871 1999
Opportunities 10.000000 12.295562 22.96% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP III Growth 12.295562 12.611273 2.57% 0 1999
Opportunities 10.000000 12.295562 22.96% 0 1998
Portfolio: Service
Class - NQ
NSAT Capital 12.425504 12.756184 2.66% 3,775 1999
Appreciation Fund - Q 10.000000 12.425504 24.26% 0 1998
</TABLE>
111
<PAGE> 127
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.425504 12.756184 2.66% 1,555 1999
Appreciation Fund - NQ 10.000000 12.425504 24.26% 0 1998
NSAT Government Bond 9.841878 9.461864 -3.86% 0 1999
Fund - Q 10.000000 9.841878 -1.58% 0 1998
NSAT Government Bond 9.841878 9.461864 -3.86% 0 1999
Fund - NQ 10.000000 9.841878 -1.58% 0 1998
NSAT Money Market Fund 10.084183 10.409189 3.22% 0 1999
- Q* 10.000000 10.084183 0.84% 0 1998
NSAT Money Market Fund 10.084183 10.409189 3.22% 0 1999
- NQ* 10.000000 10.084183 0.84% 0 1998
NSAT Total Return Fund 11.979709 12.612898 5.29% 3,921 1999
- Q 10.000000 11.979709 19.80% 0 1998
NSAT Total Return Fund 11.979709 12.612898 5.29% 0 1999
- NQ 10.000000 11.979709 19.80% 0 1998
NSAT Nationwide 10.665345 10.591234 -0.69% 0 1999
Balanced Fund - Q 10.000000 10.665345 6.65% 0 1998
NSAT Nationwide 10.665345 10.591234 -0.69% 0 1999
Balanced Fund - NQ 10.000000 10.665345 6.65% 0 1998
NSAT Nationwide Equity 11.832846 13.803577 16.65% 0 1999
Income Fund - Q 10.000000 11.832846 18.33% 0 1998
NSAT Nationwide Equity 11.832846 13.803577 16.65% 0 1999
Income Fund - NQ 10.000000 11.832846 18.33% 0 1998
NSAT Nationwide Global 12.198407 14.762540 21.02% 2,000 1999
50 Fund - Q(1) 10.000000 12.198407 21.98% 0 1998
NSAT Nationwide Global 12.198407 14.762540 21.02% 0 1999
50 Fund - NQ(1) 10.000000 12.198407 21.98% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.82%.
112
<PAGE> 128
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide High 10.328064 10.492359 1.59% 0 1999
Income Bond Fund - Q 10.000000 10.328064 3.28% 0 1998
NSAT Nationwide High 10.328064 10.492359 1.59% 0 1999
Income Bond Fund - NQ 10.000000 10.328064 3.28% 0 1998
NSAT Nationwide Mid Cap 12.239965 14.571500 19.05% 0 1999
Index Fund - Q(1) 10.000000 12.239965 22.40% 0 1998
NSAT Nationwide Mid Cap 12.239965 14.571500 19.05% 0 1999
Index Fund - NQ(1) 10.000000 12.239965 22.40% 0 1998
NSAT Nationwide Multi 10.234182 10.232296 -0.02% 0 1999
Sector Bond Fund - Q 10.000000 10.234182 2.34% 0 1998
NSAT Nationwide Multi 10.234182 10.232296 -0.02% 0 1999
Sector Bond Fund - NQ 10.000000 10.234182 2.34% 0 1998
NSAT Nationwide Small 10.000000 20.290923 102.91% 0 1999
Cap Growth Fund - Q(2)
NSAT Nationwide Small 10.000000 20.290923 102.91% 0 1999
Cap Growth Fund - NQ(2)
NSAT Nationwide Small 12.949678 16.298055 25.86% 0 1999
Cap Value Fund - Q 10.000000 12.949678 29.50% 0 1998
NSAT Nationwide Small 12.949678 16.298055 25.86% 0 1999
Cap Value Fund - NQ 10.000000 12.949678 29.50% 0 1998
NSAT Nationwide Small 12.109325 17.169820 41.79% 0 1999
Company Fund - Q 10.000000 12.109325 21.09% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
113
<PAGE> 129
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 12.109325 17.169820 41.79% 0 1999
Company Fund - NQ 10.000000 12.109325 21.09% 0 1998
NSAT Nationwide 12.654379 23.017640 81.89% 0 1999
Strategic Growth Fund - Q 10.000000 12.654379 26.54% 0 1998
NSAT Nationwide 12.654379 23.017640 81.89% 0 1999
Strategic Growth Fund - NQ 10.000000 12.654379 26.54% 0 1998
NSAT Nationwide 13.013916 12.418826 -4.57% 0 1999
Strategic Value Fund - Q 10.000000 13.013916 30.14% 0 1998
NSAT Nationwide 13.013916 12.418826 -4.57% 0 1999
Strategic Value Fund - NQ 10.000000 13.013916 30.14% 0 1998
Neuberger Berman AMT 12.872425 14.565469 13.15% 0 1999
Guardian Portfolio - Q 10.000000 12.872425 28.72% 0 1998
Neuberger Berman AMT 12.872425 14.565469 13.15% 1,377 1999
Guardian Portfolio - NQ 10.000000 12.872425 28.72% 0 1998
Neuberger Berman AMT 14.062035 21.304943 51.51% 0 1999
Mid-Cap Growth 10.000000 14.062035 40.62% 0 1998
Portfolio - Q
Neuberger Berman AMT 14.062035 21.304943 51.51% 235 1999
Mid-Cap Growth 10.000000 14.062035 40.62% 0 1998
Portfolio - NQ
Neuberger Berman AMT 11.844579 12.520433 5.71% 0 1999
Partners Portfolio - Q 10.000000 11.844579 18.45% 0 1998
</TABLE>
114
<PAGE> 130
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 11.844579 12.520433 5.71% 0 1999
Partners Portfolio - NQ 10.000000 11.844579 18.45% 0 1998
Oppenheimer Variable 13.176875 23.819210 80.77% 0 1999
Account Funds - 10.000000 13.176875 31.77% 0 1998
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 13.176875 23.819210 80.77% 144 1999
Account Funds - 10.000000 13.176875 31.77% 0 1998
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
Oppenheimer Variable 13.230001 18.450922 39.46% 0 1999
Account Funds - 10.000000 13.230001 32.30% 0 1998
Oppenheimer Capital
Appreciation Fund/VA - Q(2)
Oppenheimer Variable 13.230001 18.450922 39.46% 0 1999
Account Funds - 10.000000 13.230001 32.30% 0 1998
Oppenheimer Capital
Appreciation Fund/VA - NQ(2)
Oppenheimer Variable 12.326652 14.770155 19.82% 3,469 1999
Account Funds - 10.000000 12.326652 23.27% 0 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- Q(3)
Oppenheimer Variable 12.326652 14.770155 19.82% 0 1999
Account Funds - 10.000000 12.326652 23.27% 0 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- NQ(3)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
115
<PAGE> 131
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
The Universal 11.382564 14.498248 27.37% 0 1999
Institutional Funds, 10.000000 11.382564 13.83% 0 1998
Inc. - Emerging Markets
Debt Portfolio - Q(1)
The Universal 11.382564 14.498248 27.37% 0 1999
Institutional Funds, 10.000000 11.382564 13.83% 0 1998
Inc. - Emerging Markets
Debt Portfolio - NQ(1)
Van Eck Worldwide 12.619986 24.884920 97.19% 0 1999
Insurance Trust - 10.000000 12.619986 26.20% 0 1998
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 12.619986 24.884920 97.19% 0 1999
Insurance Trust - 10.000000 12.619986 26.20% 0 1998
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 9.907247 11.802251 19.13% 0 1999
Insurance Trust - 10.000000 9.907247 -0.93% 0 1998
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 9.907247 11.802251 19.13% 0 1999
Insurance Trust - 10.000000 9.907247 -0.93% 0 1998
Worldwide Hard Assets
Fund - NQ
Van Kampen Life 10.399504 9.893020 -4.87% 0 1999
Investment Trust - 10.000000 10.399504 4.00% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.399504 9.893020 -4.87% 0 1999
Investment Trust - 10.000000 10.399504 4.00% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - NQ
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
116
<PAGE> 132
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Warburg Pincus Trust - 12.824482 20.643272 60.97% 0 1999
Global Post-Venture 10.000000 12.824482 28.24% 0 1998
Capital Portfolio - Q(1)
Warburg Pincus Trust - 12.824482 20.643272 60.97% 0 1999
Global Post-Venture 10.000000 12.824482 28.24% 0 1998
Capital Portfolio - NQ(1)
Warburg Pincus Trust - 11.538849 17.430313 51.06% 0 1999
International Equity 10.000000 12.824482 28.24% 0 1998
Portfolio - Q
Warburg Pincus Trust - 11.538849 17.430313 51.06% 0 1999
International Equity 10.000000 11.538849 15.39% 0 1998
Portfolio - NQ
Warburg Pincus Trust - 11.882597 12.428801 4.60% 0 1999
Value Portfolio - Q(2) 10.000000 11.882597 18.83% 0 1998
Warburg Pincus Trust - 11.882597 12.428801 4.60% 366 1999
Value Portfolio - NQ(2) 10.000000 11.882597 18.83% 0 1998
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
117
<PAGE> 133
OPTIONAL BENEFITS ELECTED (TOTAL 1.65%)
(VARIABLE ACCOUNT CHARGES OF 1.65% OF THE DAILY
NET ASSETS OF THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.498159 14.507084 16.07% 0 1999
Variable Portfolios, 10.000000 12.498159 24.98% 0 1998
Inc. - American Century
VP Income & Growth - Q
American Century 12.498159 14.507084 16.07% 3,086 1999
Variable Portfolios, 10.000000 12.498159 24.98% 0 1998
Inc. - American Century
VP Income & Growth - NQ
American Century 12.045328 19.434239 61.34% 0 1999
Variable Portfolios, 10.000000 12.045328 20.45% 0 1998
Inc. - American Century
VP International - Q
American Century 12.045328 19.434239 61.34% 445 1999
Variable Portfolios, 10.000000 12.045328 20.45% 0 1998
Inc. - American Century
VP International - NQ
American Century 11.264161 10.984159 -2.49% 145 1999
Variable Portfolios, 10.000000 11.264161 12.64% 0 1998
Inc. - American Century
VP Value - Q
American Century 11.264161 10.984159 -2.49% 0 1999
Variable Portfolios, 10.000000 11.264161 12.64% 0 1998
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.874994 28.75% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.874994 28.75% 0 1999
Portfolios - European
Equity Portfolio - NQ
</TABLE>
118
<PAGE> 134
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.767196 16.333747 27.94% 6,411 1999
Responsible Growth 10.000000 12.767196 27.67% 0 1998
Fund, Inc. - Q
The Dreyfus Socially 12.767196 16.333747 27.94% 437 1999
Responsible Growth 10.000000 12.767196 27.67% 0 1998
Fund, Inc. - NQ
Dreyfus Stock Index 12.446981 14.764046 18.62% 473 1999
Fund, Inc. - Q 10.000000 12.446981 24.47% 0 1998
Dreyfus Stock Index 12.446981 14.764046 18.62% 3,075 1999
Fund, Inc. - NQ 10.000000 12.446981 24.47% 0 1998
Dreyfus Variable 12.372807 13.562791 9.62% 0 1999
Investment Fund 10.000000 12.372807 23.73% 0 1998
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.372807 13.562791 9.62% 158 1999
Investment Fund 10.000000 12.372807 23.73% 0 1998
-Appreciation Portfolio
- NQ(1)
Federated Insurance 10.000000 9.760781 -2.39% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.760781 -2.39% 594 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 11.793413 12.324339 4.50% 3,415 1999
Equity-Income 10.000000 11.793413 17.93% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP 11.793413 12.324339 4.50% 2,428 1999
Equity-Income 10.000000 11.793413 17.93% 0 1998
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
119
<PAGE> 135
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.896602 17.413426 35.02% 15,705 1999
Portfolio: Service 10.000000 12.896602 28.97% 0 1998
Class - Q
Fidelity VIP Growth 12.896602 17.413426 35.02% 27,331 1999
Portfolio: Service 10.000000 12.896602 28.97% 0 1998
Class - NQ
Fidelity VIP High 10.515966 11.177582 6.29% 0 1999
Income Portfolio: 10.0000000 10.515966 5.16% 0 1998
Service Class - Q
Fidelity VIP High 10.515966 11.177582 6.29% 356 1999
Income Portfolio: 10.0000000 10.515966 5.16% 0 1998
Service Class - NQ
Fidelity VIP Overseas 12.170445 17.052691 40.12% 0 1999
Portfolio: Service 10.000000 12.170445 21.70% 0 1998
Class - Q
Fidelity VIP Overseas 12.170445 17.052691 40.12% 260 1999
Portfolio: Service 10.000000 12.170445 21.70% 0 1998
Class - NQ
Fidelity VIP II 12.779434 15.603664 22.10% 456 1999
Contrafund(R) Portfolio: 10.000000 12.779434 27.79% 0 1998
Service Class - Q
Fidelity VIP II 12.779434 15.603664 22.10% 9,997 1999
Contrafund(R) Portfolio: 10.000000 12.779434 27.79% 0 1998
Service Class - NQ
Fidelity VIP III Growth 12.292450 12.595275 2.46% 0 1999
Opportunities 10.000000 12.292450 22.92% 0 1998
Portfolio: Service
Class - Q
Fidelity VIP III Growth 12.292450 12.595275 2.46% 0 1999
Opportunities 10.000000 12.292450 22.92% 0 1998
Portfolio: Service
Class - NQ
NSAT Capital 12.422359 12.740010 2.56% 8,062 1999
Appreciation Fund - Q 10.000000 12.422359 24.22% 0 1998
</TABLE>
120
<PAGE> 136
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 12.422359 12.740010 2.56% 10,918 1999
Appreciation Fund - NQ 10.000000 12.422359 24.22% 0 1998
NSAT Government Bond 9.839387 9.449856 -3.96% 1,188 1999
Fund - Q 10.000000 9.839387 -1.61% 0 1998
NSAT Government Bond 9.839387 9.449856 -3.96% 0 1999
Fund - NQ 10.000000 9.839387 -1.61% 0 1998
NSAT Money Market Fund 10.081601 10.395950 3.12% 0 1999
- Q* 10.000000 10.081601 0.82% 0 1998
NSAT Money Market Fund 10.081601 10.395950 3.12% 7,486 1999
- NQ* 10.000000 10.081601 0.82% 0 1998
NSAT Total Return Fund 11.976682 12.596911 5.18% 0 1999
- Q 10.000000 11.976682 19.77% 0 1998
NSAT Total Return Fund 11.976682 12.596911 5.18% 0 1999
- NQ 10.000000 11.976682 19.77% 0 1998
NSAT Nationwide 10.662651 10.577794 -0.80% 1,116 1999
Balanced Fund - Q 10.000000 10.662651 6.63% 0 1998
NSAT Nationwide 10.662651 10.577794 -0.80% 0 1999
Balanced Fund - NQ 10.000000 10.662651 6.63% 0 1998
NSAT Nationwide Equity 11.829858 13.786084 16.54% 0 1999
Income Fund - Q 10.000000 11.829858 18.30% 0 1998
NSAT Nationwide Equity 11.829858 13.786084 16.54% 0 1999
Income Fund - NQ 10.000000 11.829858 18.30% 0 1998
NSAT Nationwide Global 12.195325 14.743816 20.90% 0 1999
50 Fund - Q(1) 10.000000 12.195325 21.95% 0 1998
NSAT Nationwide Global 12.195325 14.743816 20.90% 0 1999
50 Fund - NQ(1) 10.000000 12.195325 21.95% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.72%.
121
<PAGE> 137
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide High 10.325454 10.479056 1.49% 0 1999
Income Bond Fund - Q 10.000000 10.325454 3.25% 0 1998
NSAT Nationwide High 10.325454 10.479056 1.49% 0 1999
Income Bond Fund - NQ 10.000000 10.325454 3.25% 0 1998
NSAT Nationwide Mid Cap 12.236869 14.553031 18.93% 120 1999
Index Fund - Q(1) 10.000000 12.236869 22.37% 0 1998
NSAT Nationwide Mid Cap 12.236869 14.553031 18.93% 0 1999
Index Fund - NQ(1) 10.000000 12.236869 22.37% 0 1998
NSAT Nationwide Multi 10.231592 10.219313 -0.12% 0 1999
Sector Bond Fund - Q 10.000000 10.231592 2.32% 0 1998
NSAT Nationwide Multi 10.231592 10.219313 -0.12% 0 1999
Sector Bond Fund - NQ 10.000000 10.231592 2.32% 0 1998
NSAT Nationwide Small 10.000000 20.277316 102.77% 0 1999
Cap Growth Fund - Q(2)
NSAT Nationwide Small 10.000000 20.277316 102.77% 0 1999
Cap Growth Fund - NQ(2)
NSAT Nationwide Small 12.946409 16.277398 25.73% 0 1999
Cap Value Fund - Q 10.000000 12.946409 29.46% 0 1998
NSAT Nationwide Small 12.946409 16.277398 25.73% 0 1999
Cap Value Fund - NQ 10.000000 12.946409 29.46% 0 1998
NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999
Company Fund - Q 10.000000 12.106268 21.06% 0 1998
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
122
<PAGE> 138
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999
Company Fund - NQ 10.000000 12.106268 21.06% 0 1998
NSAT Nationwide 12.651185 22.988509 81.71% 0 1999
Strategic Growth Fund - Q 10.000000 12.651185 26.51% 0 1998
NSAT Nationwide 12.651185 22.988509 81.71% 0 1999
Strategic Growth Fund - NQ 10.000000 12.651185 26.51% 0 1998
NSAT Nationwide 13.010627 12.403079 -4.67% 0 1999
Strategic Value Fund - Q 10.000000 13.010627 30.11% 0 1998
NSAT Nationwide 13.010627 12.403079 -4.67% 0 1999
Strategic Value Fund - NQ 10.000000 13.010627 30.11% 0 1998
Neuberger Berman AMT 12.869170 14.547000 13.04% 0 1999
Guardian Portfolio - Q 10.000000 12.869170 28.69% 0 1998
Neuberger Berman AMT 12.869170 14.547000 13.04% 156 1999
Guardian Portfolio - NQ 10.000000 12.869170 28.69% 0 1998
Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999
Mid-Cap Growth 10.000000 14.058496 40.58% 0 1998
Portfolio - Q
Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999
Mid-Cap Growth 10.000000 14.058496 40.58% 0 1998
Portfolio - NQ
Neuberger Berman AMT 11.841583 12.504542 5.60% 0 1999
Partners Portfolio - Q 10.000000 11.841583 18.42% 0 1998
</TABLE>
123
<PAGE> 139
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 11.841583 12.504542 5.60% 571 1999
Partners Portfolio - NQ 10.000000 11.841583 18.42% 0 1998
Oppenheimer Variable 13.173548 23.789077 80.58% 2,285 1999
Account Funds - 10.000000 13.173548 31.74% 0 1998
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 13.173548 23.789077 80.58% 205 1999
Account Funds - 10.000000 13.173548 31.74% 0 1998
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
Oppenheimer Variable 13.226671 18.427568 39.32% 0 1999
Account Funds - 10.000000 13.226671 32.27% 0 1998
Oppenheimer Capital
Appreciation Fund/VA - Q(2)
Oppenheimer Variable 13.226671 18.427568 39.32% 922 1999
Account Funds - 10.000000 13.226671 32.27% 0 1998
Oppenheimer Capital
Appreciation Fund/VA - NQ(2)
Oppenheimer Variable 12.323541 14.751442 19.70% 17,693 1999
Account Funds - 10.000000 12.323541 23.24% 0 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- Q(3)
Oppenheimer Variable 12.323541 14.751442 19.70% 816 1999
Account Funds - 10.000000 12.323541 23.24% 0 1998
Oppenheimer Main Street
Growth & Income Fund/VA
- NQ(3)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
124
<PAGE> 140
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
The Universal 11.379681 14.479873 24.24% 388 1999
Institutional Funds, 10.000000 11.379681 13.80% 0 1998
Inc. - Emerging Markets
Debt Portfolio - Q(1)
The Universal 11.379681 14.479873 24.24% 0 1999
Institutional Funds, 10.000000 11.379681 13.80% 0 1998
Inc. - Emerging Markets
Debt Portfolio - NQ(1)
Van Eck Worldwide 12.616797 24.853443 96.99% 0 1999
Insurance Trust - 10.000000 12.616797 26.17% 0 1998
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 12.616797 24.853443 96.99% 0 1999
Insurance Trust - 10.000000 12.616797 26.17% 0 1998
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 9.904737 11.787279 19.01% 0 1999
Insurance Trust - 10.000000 9.904737 -0.95% 0 1998
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 9.904737 11.787279 19.01% 0 1999
Insurance Trust - 10.000000 9.904737 -0.95% 0 1998
Worldwide Hard Assets
Fund - NQ
Van Kampen Life 10.396873 9.880471 -4.97% 0 1999
Investment Trust - 10.000000 10.396873 3.97% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.396873 9.880471 -4.97% 0 1999
Investment Trust - 10.000000 10.396873 3.97% 0 1998
Morgan Stanley Real
Estate Securities
Portfolio - NQ
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
125
<PAGE> 141
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Warburg Pincus Trust - 12.821248 20.617144 60.80% 0 1999
Global Post-Venture 10.000000 12.821248 28.21% 0 1998
Capital Portfolio - NQ(1)
Warburg Pincus Trust - 12.821248 20.617144 60.80% 0 1999
Global Post-Venture 10.000000 12.821248 28.21% 0 1998
Capital Portfolio - NQ(1)
Warburg Pincus Trust - 11.535935 17.408242 50.90% 0 1999
International Equity 10.000000 11.535935 15.36% 0 1998
Portfolio - Q
Warburg Pincus Trust - 11.535935 17.408242 50.90% 0 1999
International Equity 10.000000 11.535935 15.36% 0 1998
Portfolio - NQ
Warburg Pincus Trust - 11.879593 12.413046 4.49% 0 1999
Value Portfolio - Q(2) 10.000000 11.879593 18.80% 0 1998
Warburg Pincus Trust - 11.879593 12.413046 4.49% 0 1999
Value Portfolio - NQ(2) 10.000000 11.879593 18.80% 0 1998
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
126
<PAGE> 142
OPTIONAL BENEFITS ELECTED (TOTAL 1.65%)(KEY CHOICE)
(VARIABLE ACCOUNT CHARGES OF 1.65% OF THE DAILY NET
ASSETS OF THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
American Century 12.498159 14.507084 16.07% 0 1999
Variable Portfolios, 1998
Inc. - American Century
VP Income & Growth - Q
American Century 12.498159 14.507084 16.07% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
American Century 12.045328 19.434239 61.34% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
American Century 12.045328 19.434239 61.34% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
American Century 11.264161 10.984159 -2.49% 40 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
American Century 11.264161 10.984159 -2.49% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
Dreyfus Variable 12.372807 13.562791 9.62% 0 1999
Investment Fund
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 12.372807 13.562791 9.62% 0 1999
Investment Fund
-Appreciation Portfolio
- NQ(1)
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
127
<PAGE> 143
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 12.896602 17.413426 35.02% 0 1999
Portfolio: Service
Class - Q
Fidelity VIP Growth 12.896602 17.413426 35.02% 0 1999
Portfolio: Service
Class - NQ
NSAT Money Market Fund 10.081601 10.395950 3.12% 0 1999
- Q*
NSAT Money Market Fund 10.081601 10.395950 3.12% 1,267 1999
- NQ*
NSAT Nationwide Equity 11.829858 13.786084 16.54% 32 1999
Income Fund - Q
NSAT Nationwide Equity 11.829858 13.786084 16.54% 658 1999
Income Fund - NQ
NSAT Nationwide High 10.325454 10.479056 1.49% 0 1999
Income Bond Fund - Q
NSAT Nationwide High 10.325454 10.479056 1.49% 777 1999
Income Bond Fund - NQ
NSAT Nationwide Multi 10.231592 10.219313 -0.12% 0 1999
Sector Bond Fund - Q
NSAT Nationwide Multi 10.231592 10.219313 -0.12% 744 1999
Sector Bond Fund - NQ
NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999
Company Fund - Q
</TABLE>
* The 7 day yield for the NSAT Money Market Fund as December 31, 1999 was
3.72%.
128
<PAGE> 144
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999
Company Fund - NQ
Neuberger Berman AMT 14.058496 21.277954 51.35% 23 1999
Mid-Cap Growth
Portfolio - Q
Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999
Mid-Cap Growth
Portfolio - NQ
Neuberger Berman AMT 11.841583 12.504542 5.60% 0 1999
Partners Portfolio - Q
Neuberger Berman AMT 11.841583 12.504542 5.60% 0 1999
Partners Portfolio - NQ
Oppenheimer Variable 13.173548 23.789077 80.58% 21 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 13.173548 23.789077 80.58% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
Victory Variable 10.000000 10.037475 0.37% 0 1999
Insurance Funds -
Diversified Stock Fund:
Class A - Q
Victory Variable 10.000000 10.037475 0.37% 1,948 1999
Insurance Funds -
Diversified Stock Fund:
Class A - NQ
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
129
<PAGE> 145
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Victory Variable 10.000000 9.908553 -0.91% 0 1999
Insurance Funds -
Investment Quality Bond
Fund: Class A - Q
Victory Variable 10.000000 9.908553 -0.91% 750 1999
Insurance Funds -
Investment Quality Bond
Fund: Class A - NQ
Victory Variable 10.000000 9.874460 -1.26% 0 1999
Insurance Funds - Small
Company Opportunity
Fund: Class A - Q
Victory Variable 10.000000 9.874460 -1.26% 432 1999
Insurance Funds - Small
Company Opportunity
Fund: Class A - NQ
Warburg Pincus Trust - 12.821248 20.617144 60.80% 0 1999
Global Post-Venture
Capital Portfolio - Q(1)
Warburg Pincus Trust - 12.821248 20.617144 60.80% 0 1999
Global Post-Venture
Capital Portfolio - NQ(1)
Warburg Pincus Trust - 11.535935 17.408242 50.90% 0 1999
International Equity
Portfolio - Q
Warburg Pincus Trust - 11.535935 17.408242 50.90% 531 1999
International Equity
Portfolio - NQ
</TABLE>
(1) Formerly, Warburg Pincus Trust -Post-Venture Capital Portfolio.
130
<PAGE> 146
OPTIONAL BENEFITS ELECTED (TOTAL 1.70%)
(VARIABLE ACCOUNT CHARGES OF 1.70% OF THE DAILY
NET ASSETS OF THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
American Century 10.000000 10.894734 8.95% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
American Century 10.000000 10.894734 8.95% 68 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
American Century 10.000000 15.314929 53.15% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
American Century 10.000000 15.314929 53.15% 48 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
American Century 10.000000 8.780117 -12.20% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
American Century 10.000000 8.780117 -12.20% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
Dreyfus Investment 10.000000 12.873298 28.73% 0 1999
Portfolios - European
Equity Portfolio - Q
Dreyfus Investment 10.000000 12.873298 28.73% 0 1999
Portfolios - European
Equity Portfolio - NQ
</TABLE>
131
<PAGE> 147
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 10.000000 11.868131 18.68% 0 1999
Responsible Growth
Fund, Inc. - Q
The Dreyfus Socially 10.000000 11.868131 18.68% 0 1999
Responsible Growth
Fund, Inc. - NQ
Dreyfus Stock Index 10.000000 10.794215 7.94% 2,481 1999
Fund, Inc. - Q
Dreyfus Stock Index 10.000000 10.794215 7.94% 364 1999
Fund, Inc. - NQ
Dreyfus Variable 10.000000 10.184154 1.84% 0 1999
Investment Fund
-Appreciation Portfolio
- Q(1)
Dreyfus Variable 10.000000 10.184154 1.84% 0 1999
Investment Fund -
Appreciation Portfolio
- NQ(1)
Federated Insurance 10.000000 9.757496 -2.43% 0 1999
Series - Federated
Quality Bond Fund II - Q
Federated Insurance 10.000000 9.757496 -2.43% 0 1999
Series - Federated
Quality Bond Fund II -
NQ
Fidelity VIP 10.000000 9.309967 -6.90% 0 1999
Equity-Income
Portfolio: Service
Class - Q
Fidelity VIP 10.000000 9.309967 -6.90% 413 1999
Equity-Income
Portfolio: Service
Class - NQ
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation
Portfolio.
132
<PAGE> 148
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 10.000000 12.322268 23.22% 4,617 1999
Portfolio: Service
Class - Q
Fidelity VIP Growth 10.000000 12.322268 23.22% 324 1999
Portfolio: Service
Class - NQ
Fidelity VIP High 10.000000 9.672582 -3.27% 0 1999
Income Portfolio:
Service Class - Q
Fidelity VIP High 10.000000 9.672582 -3.27% 0 1999
Income Portfolio:
Service Class - NQ
Fidelity VIP Overseas 10.000000 13.058898 30.59% 0 1999
Portfolio: Service
Class - Q
Fidelity VIP Overseas 10.000000 13.058898 30.59% 254 1999
Portfolio: Service
Class - NQ
Fidelity VIP II 10.000000 11.278366 12.78% 2,481 1999
Contrafund(R) Portfolio:
Service Class -Q
Fidelity VIP II 10.000000 11.278366 12.78% 354 1999
Contrafund(R) Portfolio:
Service Class -NQ
Fidelity VIP III Growth 10.000000 9.869824 -1.30% 0 1999
Opportunities
Portfolio: Service
Class - Q
Fidelity VIP III Growth 10.000000 9.869824 -1.30% 68 1999
Opportunities
Portfolio: Service
Class - NQ
NSAT Capital 10.000000 9.707627 -2.92% 0 1999
Appreciation Fund - Q
</TABLE>
133
<PAGE> 149
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Capital 10.000000 9.707627 -2.92% 68 1999
Appreciation Fund - NQ
NSAT Government Bond 10.000000 9.735132 -2.65% 0 1999
Fund - Q
NSAT Government Bond 10.000000 9.735132 -2.65% 0 1999
Fund - NQ
NSAT Money Market Fund 10.000000 10.209430 2.09% 0 1999
- Q*
NSAT Money Market Fund 10.000000 10.209430 2.09% 0 1999
- NQ*
NSAT Total Return Fund 10.000000 9.851989 -1.48% 0 1999
- Q
NSAT Total Return Fund 10.000000 9.851989 -1.48% 0 1999
- NQ
NSAT Nationwide 10.000000 9.481422 -5.19% 0 1999
Balanced Fund - Q
NSAT Nationwide 10.000000 9.481422 -5.19% 0 1999
Balanced Fund - NQ
NSAT Nationwide Equity 10.000000 10.778958 7.79% 0 1999
Income Fund - Q
NSAT Nationwide Equity 10.000000 10.778958 7.79% 0 1999
Income Fund - NQ
NSAT Nationwide Global 10.000000 11.182210 11.82% 0 1999
50 Fund - Q(1)
NSAT Nationwide Global 10.000000 11.182210 11.82% 0 1999
50 Fund - NQ(1)
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.67%
134
<PAGE> 150
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide High 10.000000 9.676620 -3.23% 0 1999
Income Bond Fund - Q
NSAT Nationwide High 10.000000 9.676620 -3.23% 0 1999
Income Bond Fund - NQ
NSAT Nationwide Mid Cap 10.000000 11.447800 14.48% 0 1999
Index Fund - Q(1)
NSAT Nationwide Mid Cap 10.000000 11.447800 14.48% 0 1999
Index Fund - NQ(1)
NSAT Nationwide Multi 10.000000 9.897603 -1.02% 0 1999
Sector Bond Fund - Q
NSAT Nationwide Multi 10.000000 9.897603 -1.02% 0 1999
Sector Bond Fund - NQ
NSAT Nationwide Small 10.000000 20.270503 102.71% 0 1999
Cap Growth Fund - Q(2)
NSAT Nationwide Small 10.000000 20.270503 102.71% 0 1999
Cap Growth Fund - NQ(2)
NSAT Nationwide Small 10.000000 11.697140 16.97% 0 1999
Cap Value Fund - Q
NSAT Nationwide Small 10.000000 11.697140 16.97% 0 1999
Cap Value Fund - NQ
NSAT Nationwide Small 10.000000 14.124755 41.25% 0 1999
Company Fund - Q
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
135
<PAGE> 151
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 14.124755 41.25% 237 1999
Company Fund - NQ
NSAT Nationwide 10.000000 14.658438 46.58% 0 1999
Strategic Growth Fund - Q
NSAT Nationwide 10.000000 14.658438 46.58% 0 1999
Strategic Growth Fund - NQ
NSAT Nationwide 10.000000 8.548175 -14.52% 0 1999
Strategic Value Fund - Q
NSAT Nationwide 10.000000 8.548175 -14.52% 0 1999
Strategic Value Fund - NQ
Neuberger Berman AMT 10.000000 9.968645 -0.31% 0 1999
Guardian Portfolio - Q
Neuberger Berman AMT 10.000000 9.968645 -0.31% 0 1999
Guardian Portfolio - NQ
Neuberger Berman AMT 10.000000 15.264119 52.64% 0 1999
Mid-Cap Growth
Portfolio - Q
Neuberger Berman AMT 10.000000 15.264119 52.64% 0 1999
Mid-Cap Growth
Portfolio - NQ
Neuberger Berman AMT 10.000000 9.504551 -4.95% 0 1999
Partners Portfolio - Q
</TABLE>
136
<PAGE> 152
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 10.000000 9.504551 -4.95% 0 1999
Partners Portfolio - NQ
Oppenheimer Variable 10.000000 16.070617 60.71% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q(1)
Oppenheimer Variable 10.000000 16.070617 60.71% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ(1)
Oppenheimer Variable 10.000000 12.759449 27.59% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA - Q(2)
Oppenheimer Variable 10.000000 12.759449 27.59% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation Fund/VA - NQ(2)
Oppenheimer Variable 10.000000 10.784586 7.85% 2,487 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- Q(3)
Oppenheimer Variable 10.000000 10.784586 7.85% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income Fund/VA
- NQ(3)
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
137
<PAGE> 153
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
The Universal 10.000000 11.210825 12.11% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q(1)
The Universal 10.000000 11.210825 12.11% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ(1)
Van Eck Worldwide 10.000000 15.596564 55.97% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
Van Eck Worldwide 10.000000 15.596564 55.97% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
Van Eck Worldwide 10.000000 9.987144 -0.13% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
Van Eck Worldwide 10.000000 9.987144 -0.13% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
Van Kampen Life 10.000000 9.012565 -9.87% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
Van Kampen Life 10.000000 9.012565 -9.87% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
138
<PAGE> 154
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION
BEGINNING OF END OF PERIOD UNIT VALUE UNITS AT END
PERIOD OF PERIOD
<S> <C> <C> <C> <C> <C>
Warburg Pincus Trust - 10.000000 15.621586 56.22% 0 1999
Global Post-Venture
Capital Portfolio - Q(1)
Warburg Pincus Trust - 10.000000 15.621586 56.22% 0 1999
Global Post-Venture
Capital Portfolio - NQ(1)
Warburg Pincus Trust - 10.000000 14.650223 46.50% 0 1999
International Equity
Portfolio - Q
Warburg Pincus Trust - 10.000000 14.650223 46.50% 0 1999
International Equity
Portfolio - NQ
Warburg Pincus Trust - 10.000000 9.340613 -6.59% 0 1999
Value Portfolio - Q(2)
Warburg Pincus Trust - 10.000000 9.340613 -6.59% 0 1999
Value Portfolio - NQ(2)
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
139
<PAGE> 155
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 2000
DEFERRED VARIABLE ANNUITY CONTRACTS
ISSUED BY NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS NATIONWIDE VARIABLE ACCOUNT- 9
This Statement of Additional Information is not a prospectus. It contains
additional information than set forth in the prospectus and should be read in
conjunction with the prospectus dated May 1, 2000. The prospectus may be
obtained from Nationwide Life Insurance Company by writing P.O. Box 16609,
Columbus, Ohio 43216-6609, or calling 1-800-848-6331, TDD 1-800-238-3035.
TABLE OF CONTENTS
PAGE
General Information and History........................................1
Services...............................................................1
Purchase of Securities Being Offered...................................2
Underwriters...........................................................2
Calculations of Performance............................................2
Annuity Payments.......................................................3
Financial Statements...................................................4
GENERAL INFORMATION AND HISTORY
Nationwide Variable Account-9 is a separate investment account of Nationwide
Life Insurance Company ("Nationwide"). All of Nationwide 's common stock is
owned by Nationwide Financial Services, Inc. ("NFS"), a holding company. NFS has
two classes of common stock outstanding with different voting rights enabling
Nationwide Corporation (the holder of all of the outstanding Class B Common
Stock) to control NFS. Nationwide Corporation is a holding company, as well. All
of the common stock is held by Nationwide Mutual Insurance Company (95.24%) and
Nationwide Mutual Fire Insurance Company (4.76%), the ultimate controlling
persons of Nationwide Insurance Enterprise. The Nationwide Insurance Enterprise
is one of America's largest insurance and financial services family of
companies, with combined assets of over $120 billion as of December 31, 1999.
SERVICES
Nationwide, which has responsibility for administration of the contracts and the
variable account, maintains records of the name, address, taxpayer
identification number, and other pertinent information for each contract owner
and the number and type of contract issued to each contract owner and records
with respect to the contract value of each contract.
The custodian of the assets of the variable account is Nationwide. Nationwide
will maintain a record of all purchases and redemption of shares of the
underlying mutual funds. Nationwide, or affiliates of Nationwide may have
entered into agreements with either the investment adviser or distributor for
the underlying mutual funds. The agreements relate to administrative services
furnished by Nationwide or an affiliate of Nationwide and provide for an annual
fee based on the average aggregate net assets of the variable account (and other
separate accounts of Nationwide or life insurance company subsidiaries of
Nationwide) invested in particular underlying mutual funds. These fees in no way
affect the net asset value of the underlying mutual funds or fees paid by the
contract owner.
The audited financial statements have been included herein in reliance upon the
reports of KPMG LLP, independent certified public accountants, Two Nationwide
Plaza, Columbus Ohio 43215, and upon the authority of said firm as experts in
accounting and auditing.
1
<PAGE> 156
PURCHASE OF SECURITIES BEING OFFERED
The contracts will be sold by licensed insurance agents in the states where the
contracts may be lawfully sold. Such agents will be registered representatives
of broker-dealers registered under the Securities Exchange Act of 1934 who are
members of the National Association of Securities Dealers, Inc. ("NASD").
UNDERWRITERS
The contracts, which are offered continuously, are distributed by Nationwide
Investment Services Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio
43215, an affiliate of Nationwide. During the fiscal years ended December 31,
1999, 1998 and 1997, no underwriting commissions were paid by Nationwide to
NISC.
CALCULATIONS OF PERFORMANCE
Any current yield quotations of the NSAT Money Market Fund, subject to Rule 482
of the Securities Act of 1933, will consist of a seven calendar day historical
yield, carried at least to the nearest hundredth of a percent. The yield will be
calculated by determining the net change, exclusive of capital changes, in the
value of a hypothetical pre-existing account having a balance of one
accumulation unit at the beginning of the base period, subtracting a
hypothetical charge reflecting deductions from contract owner accounts, and
dividing the net change in account value by the value of the account at the
beginning of the period to obtain a base period return, and multiplying the base
period return by (365/7) or (366/7) in a leap year. The NSAT Money Market Fund's
seven-day current unit value yield for the maximum number of options available
as of December 31, 1999 (1.70%) was 3.67%. The NSAT Money Market Fund's
effective yield is computed similarly, but includes the effect of assumed
compounding on an annualized basis of the current unit value yield quotations of
the NSAT Money Market Fund. The NSAT Money Market Fund's seven-day effective
yield for the maximum number of options available as of December 31, 1999
(1.70%) was 3.74% .
The NSAT Money Market Fund's yield and effective yield will fluctuate daily.
Actual yields will depend on factors such as the type of instruments in the
fund's portfolio, portfolio quality and average maturity, changes in interest
rates, and the fund's expenses. Although the NSAT Money Market Fund determines
its yield on the basis of a seven day period, it may use a different time period
on occasion. The yield quotes may reflect the expense limitation described
"Investment Manager and Other Services" in the NSAT Money Market Fund's
Statement of Additional Information. There is no assurance that the yields
quoted on any given occasion will remain in effect for any period of time and
there is no guarantee that the net asset values will remain constant. It should
be noted that a contract owner's investment in the NSAT Money Market Fund is not
guaranteed or insured. Yields of other money market funds may not be comparable
if a different base period or another method of calculation is used.
All performance advertising will include quotations of standardized average
annual total return, calculated in accordance with a standard method prescribed
by rules of the SEC. Standardized average annual total return is found by taking
a hypothetical $1,000 investment in each of the sub-accounts' units on the first
day of the period at the offering price, which is the accumulation unit value
per unit ("initial investment") and computing the ending redeemable value
("redeemable value") of that investment at the end of the period. The redeemable
value is then divided by the initial investment and this quotient is taken to
the Nth root (N represents the number of years in the period) and 1 is
subtracted from the result which is then expressed as a percentage, carried to
at least the nearest hundredth of a percent. Standardized average annual total
return reflects the deduction of variable account charges of 1.55% which
includes the optional 5% Enhanced Death Benefit and the Guaranteed Minimum
Income Benefit Option 2. No deduction is made for premium taxes which may be
assessed by certain states.
2
<PAGE> 157
Nonstandardized total return may also be advertised, and is calculated in a
manner similar to standardized average annual total return except the
nonstandardized total return is based on a hypothetical initial investment of
$25,000. An assumed initial investment of $25,000 will be used because that
figure more closely approximates the size of a typical contract than does the
$1,000 figure used in calculating the standardized average annual total return
quotations.
The standardized average annual total return and nonstandardized average annual
total return quotations will be current to the last day of the calendar quarter
preceding the date on which an advertisement is submitted for publication. The
standardized average annual return will be based on rolling calendar quarters
and will cover periods of one, five, and ten years, or a period covering the
time the underlying mutual fund has been available in the variable account if
the underlying mutual fund has not been available for one of the prescribed
periods. Nonstandardized average annual total return will based on rolling
calendar quarters and will cover periods of one, five and ten years, or a period
covering the time the underlying mutual fund has been in existence. If the
underlying mutual fund has been available in the variable account for less than
one year (or if the underlying mutual fund has been effective for less than one
year), standardized and non-standardized performance is not annualized.
Quotations of average annual total return and total return are based upon
historical earnings and will fluctuate. Any quotation of performance is not a
guarantee of future performance. Factors affecting a sub-account's performance
include general market conditions, operating expenses and investment management.
A contract owner's account when redeemed may be more or less than the original
cost.
ANNUITY PAYMENTS
See "Frequency and Amount of Annuity Payments" located in the prospectus.
3
<PAGE> 158
<PAGE> 1
INDEPENDENT AUDITOR'S REPORT
----------------------------
The Board of Directors of Nationwide Life Insurance Company and
Contract Owners of Nationwide Variable Account-9:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide Variable Account-9 (comprised of the
sub-accounts listed in note 1(b)) (collectively, "the Account") as of December
31, 1999, and the related statements of operations and changes in contract
owners' equity for each of the years in the two year period then ended. These
financial statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Account as of December
31, 1999, and the results of its operations and its changes in contract owners'
equity for each of the years in the two year period then ended in conformity
with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
--------------------------------------------------------------------------------
<PAGE> 2
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Income & Growth (ACVPIncGr)
20,470,398 shares (cost $141,129,469) ........................................................... $ 163,763,182
American Century VP - American Century VP International (ACVPInt)
15,635,412 shares (cost $148,085,984) ........................................................... 195,442,653
American Century VP - American Century VP Value (ACVPValue)
6,446,407 shares (cost $41,615,144) ............................................................. 38,356,121
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
4,265,200 shares (cost $141,396,097) ............................................................ 166,641,352
Dreyfus Stock Index Fund (DryStkIx)
24,176,958 shares (cost $793,412,609) ........................................................... 929,604,033
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
4,147,534 shares (cost $150,423,775) ............................................................ 165,362,188
Dreyfus VIF - European Equities Fund (DryEuroEq)
133,706 shares (cost $1,933,535) ................................................................ 2,133,956
Federated Insurance Series: Federated Quality Bond Fund II (FedQualBd)
759,896 shares (cost $7,462,701) ................................................................ 7,446,981
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVIPEIS)
14,110,995 shares (cost $352,931,972) ........................................................... 362,088,135
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGrS)
11,101,677 shares (cost $493,273,277) ........................................................... 608,371,923
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHIS)
17,406,110 shares (cost $194,757,686) ........................................................... 196,340,922
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOvS)
3,376,287 shares (cost $81,315,398) ............................................................. 92,442,726
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVIPConS)
14,598,621 shares (cost $348,059,935) ........................................................... 424,819,872
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVIPGrOpS)
8,997,661 shares (cost $195,437,600) ............................................................ 208,025,933
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
971,414 shares (cost $6,883,230) ................................................................ 6,712,471
Nationwide SAT - Balanced Fund (NSATBal)
7,167,334 shares (cost $75,886,829) ............................................................. 73,895,215
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
13,299,689 shares (cost $344,987,726) ........................................................... 341,934,999
Nationwide SAT - Equity Income Fund (NSATEqInc)
1,987,264 shares (cost $22,714,475) ............................................................. 26,887,677
Nationwide SAT - Global Equity Fund (NSATGlobEq)
2,671,214 shares (cost $31,808,533) ............................................................. 37,103,163
Nationwide SAT - Government Bond Fund (NSATGvtBd)
22,403,002 shares (cost $256,706,042) ........................................................... 241,728,393
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
5,245,585 shares (cost $52,509,200) ............................................................. 49,937,971
Nationwide SAT - Money Market Fund (NSATMyMkt)
409,469,490 shares (cost $490,469,490) .......................................................... 409,469,490
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
6,330,981 shares (cost $61,931,231) ............................................................. 59,321,292
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
<S> <C>
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
1,196,560 shares (cost $13,198,495) ............................................................. 14,741,624
Nationwide SAT - Select Advisors Small Cap Growth Fund (NSATSmCapG)
723,847 shares (cost $10,978,328) ............................................................... 14,252,550
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
7,095,348 shares (cost $71,255,676) ............................................................. 68,966,784
Nationwide SAT - Small Company Fund (NSATSmCo)
4,613,567 shares (cost $85,795,793) ............................................................. 102,052,097
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
4,272,208 shares (cost $67,679,805) ............................................................. 87,323,924
Nationwide SAT - Strategic Value Fund (NSATStrVal)
1,517,643 shares (cost $14,938,847) ............................................................. 14,281,023
Nationwide SAT - Total Return Fund (NSATTotRe)
27,127,557 shares (cost $503,344,518) ........................................................... 510,269,350
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
4,088,163 shares (cost $58,592,261) ............................................................. 64,797,389
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
4,283,319 shares (cost $69,927,580) ............................................................. 104,084,651
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
6,496,851 shares (cost $124,991,275) ............................................................ 127,598,157
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
1,789,956 shares (cost $109,187,224) ............................................................ 147,331,319
Oppenheimer VAF - Capital Appreciation Fund (OppCapAp)
3,467,910 shares (cost $131,621,275) ............................................................ 172,840,639
Oppenheimer VAF - Main Street Growth & Income Fund (OppGrInc)
5,749,471 shares (cost $125,186,474) ............................................................ 141,609,480
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
2,431,635 shares (cost $28,640,364) ............................................................. 34,675,121
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
618,705 shares (cost $6,514,021) ................................................................ 6,781,006
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
1,709,941 shares (cost $23,106,619) ............................................................. 21,151,964
Victory VIF - Diversified Stock Fund - Class A (VVIFDStk)
397,644 shares (cost $3,840,250) ................................................................ 4,004,273
Victory VIF - Investment Quality Bond Fund - Class A (VVIFIQBd)
176,741 shares (cost $1,764,492) ................................................................ 1,732,060
Victory VIF - Small Company Opportunity Fund - Class A (VVIFSmCoOpp)
138,498 shares (cost $1,359,342) ................................................................ 1,371,129
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
1,549,407 shares (cost $18,232,245) ............................................................. 18,422,453
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
2,535,079 shares (cost $38,270,810) ............................................................. 42,335,823
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
1,121,991 shares (cost $16,592,355) ............................................................. 21,609,550
---------------
Total investments ............................................................................ 6,530,063,014
Accounts receivable .................................................................................. 103,046
---------------
Total assets ................................................................................ 6,530,166,060
Accounts payable ........................................................................................ -
---------------
Contract owners' equity (note 4) ........................................................................ $ 6,530,166,060
===============
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
<PAGE> 4
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
Total ACVPincGr ACVPint
------------------------------ ------------------------------ --------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 67,063,331 20,037,926 13,740 220,567 -
Mortality and expense risk charges
(note 2)............................. (42,760,043) (12,179,624) (1,027,835) (182,750) (948,065)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. 24,303,288 7,858,302 (1,014,095) 37,817 (948,065)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 2,014,782,794 147,138,081 5,909,912 299,469 178,233,023
Cost of mutual fund shares sold........ (1,929,367,144) (151,277,931) (4,451,364) (260,801) (156,687,528)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 85,415,650 (4,139,850) 1,458,548 38,668 21,545,495
Change in unrealized gain (loss)
on investments....................... 529,140,404 121,513,304 18,056,144 4,570,573 46,969,672
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... 614,556,054 117,373,454 19,514,692 4,609,241 68,515,167
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 115,192,705 27,066,537 - 9,256 -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 754,052,047 152,298,293 18,500,597 4,656,314 67,567,102
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 3,413,685,206 2,421,579,829 95,493,563 34,231,141 64,810,675
Transfers between funds................ - - 7,831,668 7,880,597 13,920,028
Redemptions............................ (221,905,485) (66,628,531) (4,154,414) (1,021,174) (3,040,821)
Annuity benefits ...................... (1,253) - - - -
Contingent deferred sales charges
(note 2)............................. (4,399,205) (676,512) (78,156) (7,094) (57,293)
Adjustments to maintain reserves....... (62,185) 38,184 (3,119) (27,089) 3,134
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 3,187,317,078 2,354,312,970 99,089,542 41,056,381 75,635,723
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 3,941,369,125 2,506,611,263 117,590,139 45,712,695 143,202,825
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 2,588,796,935 82,185,672 46,170,274 457,579 52,242,163
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $6,530,166,060 2,588,796,935 163,760,413 46,170,274 195,444,988
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
ACVPint ACVPValue
-------------- -------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 26,394 227,207 28,096
Mortality and expense risk charges
(note 2)............................. (224,953) (304,797) (121,549)
-------------- -------------- --------------
Net investment activity.............. (198,559) (77,590) (93,453)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 2,580,905 8,457,761 1,595,103
Cost of mutual fund shares sold........ (2,610,970) (9,146,919) (1,678,560)
-------------- -------------- --------------
Realized gain (loss) on investments.. (30,065) (689,158) (83,457)
Change in unrealized gain (loss)
on investments....................... 379,163 (3,132,639) (147,770)
-------------- -------------- --------------
Net gain (loss) on investments....... 349,098 (3,821,797) (231,227)
-------------- -------------- --------------
Reinvested capital gains............... 270,951 2,152,580 335,441
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 421,490 (1,746,807) 10,761
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 39,680,086 20,132,932 19,091,612
Transfers between funds................ 12,597,519 (324,126) 1,715,026
Redemptions............................ (1,031,134) (1,325,735) (518,275)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (7,206) (31,100) (7,315)
Adjustments to maintain reserves....... 31,510 (221) (218)
-------------- -------------- --------------
Net equity transactions............ 51,270,775 18,451,750 20,280,830
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 51,692,265 16,704,943 20,291,591
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 549,898 21,650,989 1,359,398
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 52,242,163 38,355,932 21,650,989
============== ============== ==============
</TABLE>
<PAGE> 5
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
DrySRGro DryStkix DryCapAp
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 20,454 60,373 7,074,947 2,203,648 913,606
Mortality and expense risk charges
(note 2)............................. (874,709) (164,380) (5,915,703) (1,335,082) (1,156,439)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. (854,255) (104,007) 1,159,244 868,566 (242,833)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 2,652,981 777,497 8,929,302 3,532,880 8,292,952
Cost of mutual fund shares sold........ (1,915,818) (725,553) (6,410,442) (3,554,666) (6,884,964)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 737,163 51,944 2,518,860 (21,786) 1,407,988
Change in unrealized gain (loss)
on investments....................... 21,902,824 3,346,139 103,762,225 32,439,748 9,643,177
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... 22,639,987 3,398,083 106,281,085 32,417,962 11,051,165
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 5,506,089 1,392,227 6,286,659 435,046 612,835
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 27,291,821 4,686,303 113,726,988 33,721,574 11,421,167
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 88,613,989 29,765,433 474,442,086 242,868,858 101,641,759
Transfers between funds................ 15,489,812 4,305,104 54,840,182 34,854,129 (277,522)
Redemptions............................ (3,496,257) (803,449) (24,356,262) (6,057,535) (4,721,764)
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (62,705) (4,582) (501,167) (83,383) (112,549)
Adjustments to maintain reserves....... (233) 66 827 30,385 (1,052)
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 100,544,606 33,262,572 504,425,666 271,612,454 96,528,872
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 127,836,427 37,948,875 618,152,654 305,334,028 107,950,039
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 38,805,599 856,724 311,454,663 6,120,635 57,411,990
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 166,642,026 38,805,599 929,607,317 311,454,663 165,362,029
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
DryCapAp DryEuroEq
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 296,317 4,319 -
Mortality and expense risk charges
(note 2)............................. (191,312) (2,462) -
-------------- -------------- --------------
Net investment activity.............. 105,005 1,857 -
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 692,754 654,656 -
Cost of mutual fund shares sold........ (632,372) (537,831) -
-------------- -------------- --------------
Realized gain (loss) on investments.. 60,382 116,825 -
Change in unrealized gain (loss)
on investments....................... 5,296,793 200,421 -
-------------- -------------- --------------
Net gain (loss) on investments....... 5,357,175 317,246 -
-------------- -------------- --------------
Reinvested capital gains............... 1,464 20,286 -
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 5,463,644 339,389 -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 37,281,447 526,129 -
Transfers between funds................ 14,756,161 1,278,795 -
Redemptions............................ (999,653) (10,356) -
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (11,014) - -
Adjustments to maintain reserves....... (10,617) (29) -
-------------- -------------- --------------
Net equity transactions............ 51,016,324 1,794,539 -
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 56,479,968 2,133,928 -
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 932,022 - -
-------------- -------------- --------------
Contract owners' equity end of period.... 57,411,990 2,133,928 -
============== ============== ==============
</TABLE>
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FedQualBd FidVIPEIS FidVIPGrS
------------------------------ ------------------------------ --------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 3,121,196 217,564 246,130
Mortality and expense risk charges
(note 2)............................. (19,926) - (2,844,312) (991,992) (3,103,275)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. (19,926) - 276,884 (774,428) (2,857,145)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 1,076,139 - 6,544,933 628,613 26,416,695
Cost of mutual fund shares sold........ (1,075,578) - (6,132,572) (599,673) (21,341,945)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 561 - 412,361 28,940 5,074,750
Change in unrealized gain (loss)
on investments....................... (15,720) - 1,517,647 7,558,663 98,493,324
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... (15,159) - 1,930,008 7,587,603 103,568,074
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... - - 6,899,485 774,271 15,475,451
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... (35,085) - 9,106,377 7,587,446 116,186,380
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 5,376,015 - 178,867,332 175,676,909 306,170,035
Transfers between funds................ 2,358,597 - (7,116,225) 13,491,409 96,715,312
Redemptions............................ (251,679) - (15,062,722) (5,441,684) (19,374,716)
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (1,674) - (279,245) (54,879) (654,127)
Adjustments to maintain reserves....... 757 - (3,780) (2,947) (12,461)
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 7,482,016 - 156,405,360 183,668,808 382,844,043
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 7,446,931 - 165,511,737 191,256,254 499,030,423
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. - - 196,573,059 5,316,805 109,329,873
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 7,446,931 - 362,084,796 196,573,059 608,360,296
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
FidVIPGrS FidVIPHIS
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 27,645 9,984,261 609,157
Mortality and expense risk charges
(note 2)............................. (414,288) (1,459,555) (546,399)
-------------- -------------- --------------
Net investment activity.............. (386,643) 8,524,706 62,758
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 1,691,790 56,084,424 5,911,230
Cost of mutual fund shares sold........ (1,783,855) (63,235,509) (7,053,926)
-------------- -------------- --------------
Realized gain (loss) on investments.. (92,065) (7,151,085) (1,142,696)
Change in unrealized gain (loss)
on investments....................... 16,582,085 7,299,162 (5,732,014)
-------------- -------------- --------------
Net gain (loss) on investments....... 16,490,020 148,077 (6,874,710)
-------------- -------------- --------------
Reinvested capital gains............... 723,135 373,243 387,069
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 16,826,512 9,046,026 (6,424,883)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 71,107,684 81,385,530 106,687,268
Transfers between funds................ 21,283,689 10,885,567 3,713,555
Redemptions............................ (1,868,105) (8,253,422) (3,477,421)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (25,533) (109,715) (19,045)
Adjustments to maintain reserves....... 198 (414) (220)
-------------- -------------- --------------
Net equity transactions............ 90,497,933 83,907,546 106,904,137
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 107,324,445 92,953,572 100,479,254
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 2,005,428 103,387,120 2,907,866
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 109,329,873 196,340,692 103,387,120
============== ============== ==============
</TABLE>
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FidVIPOvS FidVIPConS FidVIPGrOpS
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 428,804 39,473 703,614 56,795 1,071,044
Mortality and expense risk charges
(note 2)............................. (466,539) (125,886) (2,565,841) (530,641) (1,576,394)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. (37,735) (86,413) (1,862,227) (473,846) (505,350)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 169,388,211 4,459,537 1,391,017 389,637 22,825,558
Cost of mutual fund shares sold........ (158,069,751) (4,576,878) (1,110,585) (408,471) (20,001,471)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 11,318,460 (117,341) 280,432 (18,834) 2,824,087
Change in unrealized gain (loss)
on investments....................... 10,631,802 489,713 58,793,652 17,909,633 700,174
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... 21,950,262 372,372 59,074,084 17,890,799 3,524,261
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 691,619 116,340 5,159,836 417,852 2,093,404
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 22,604,146 402,299 62,371,693 17,834,805 5,112,315
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 31,661,483 21,535,431 210,779,869 95,817,883 111,530,050
Transfers between funds................ 13,663,206 3,800,935 32,806,150 13,757,369 (2,530,648)
Redemptions............................ (1,724,410) (383,762) (9,615,920) (2,362,374) (6,562,117)
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (34,214) (3,534) (187,997) (32,976) (125,543)
Adjustments to maintain reserves....... (5,141) 163 (1,122) (59,196) 2,854
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 43,560,924 24,949,233 233,780,980 107,120,706 102,314,596
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 66,165,070 25,351,532 296,152,673 124,955,511 107,426,911
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 26,272,538 921,006 128,667,017 3,711,506 100,601,545
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 92,437,608 26,272,538 424,819,690 128,667,017 208,028,456
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
FidVIPGrOpS MSEmMkt
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 67,013 790,752 387,439
Mortality and expense risk charges
(note 2)............................. (458,675) (47,240) (21,405)
-------------- -------------- --------------
Net investment activity.............. (391,662) 743,512 366,034
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 312,351 6,942,907 1,077,168
Cost of mutual fund shares sold........ (318,329) (7,221,261) (1,547,782)
-------------- -------------- --------------
Realized gain (loss) on investments.. (5,978) (278,354) (470,614)
Change in unrealized gain (loss)
on investments....................... 11,843,161 798,575 (967,487)
-------------- -------------- --------------
Net gain (loss) on investments....... 11,837,183 520,221 (1,438,101)
-------------- -------------- --------------
Reinvested capital gains............... 232,948 - -
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 11,678,469 1,263,733 (1,072,067)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 79,527,836 2,576,386 3,872,593
Transfers between funds................ 8,581,600 (170,498) 313,112
Redemptions............................ (1,722,323) (205,541) (58,191)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (20,999) (2,930) (253)
Adjustments to maintain reserves....... (21,308) 4 (62)
-------------- -------------- --------------
Net equity transactions............ 86,344,806 2,197,421 4,127,199
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 98,023,275 3,461,154 3,055,132
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 2,578,270 3,251,340 196,208
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 100,601,545 6,712,494 3,251,340
============== ============== ==============
</TABLE>
(continued)
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NSATBal NSATCapAp NSATEqInc
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 2,113,096 683,468 1,872,928 750,851 70,825
Mortality and expense risk charges
(note 2)............................. (578,114) (176,388) (2,766,087) (789,249) (190,451)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. 1,534,982 507,080 (893,159) (38,398) (119,626)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 953,859 181,876 20,410,418 2,717,344 662,257
Cost of mutual fund shares sold........ (907,065) (178,647) (17,291,814) (2,728,836) (533,418)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 46,794 3,229 3,118,604 (11,492) 128,839
Change in unrealized gain (loss)
on investments....................... (2,325,487) 328,826 (18,009,623) 14,966,388 3,294,853
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... (2,278,693) 332,055 (14,891,019) 14,954,896 3,423,692
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 10,762 115,971 22,036,681 5,341,096 10,580
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... (732,949) 955,106 6,252,503 20,257,594 3,314,646
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 40,680,546 33,253,731 186,868,647 150,374,491 10,827,322
Transfers between funds................ (2,694,018) 4,913,679 (33,840,307) 25,963,419 1,031,331
Redemptions............................ (2,544,229) (833,930) (12,585,838) (3,752,392) (1,057,143)
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (32,122) (8,225) (275,367) (30,248) (20,478)
Adjustments to maintain reserves....... 44,627 177 (12,885) 53,212 (31)
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 35,454,804 37,325,432 140,154,250 172,608,482 10,781,001
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 34,721,855 38,280,538 146,406,753 192,866,076 14,095,647
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 39,173,071 892,533 195,527,481 2,661,405 12,791,973
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 73,894,926 39,173,071 341,934,234 195,527,481 26,887,620
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NSATEqInc NSATGlobEq
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 75,504 84,740 141,975
Mortality and expense risk charges
(note 2)............................. (66,726) (244,287) (76,522)
-------------- -------------- --------------
Net investment activity.............. 8,778 (159,547) 65,453
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 376,534 526,452 685,356
Cost of mutual fund shares sold........ (366,898) (401,585) (668,251)
-------------- -------------- --------------
Realized gain (loss) on investments.. 9,636 124,867 17,105
Change in unrealized gain (loss)
on investments....................... 869,248 4,354,472 936,891
-------------- -------------- --------------
Net gain (loss) on investments....... 878,884 4,479,339 953,996
-------------- -------------- --------------
Reinvested capital gains............... 137,183 1,182,461 98,132
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 1,024,845 5,502,253 1,117,581
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 10,836,292 15,224,818 12,466,313
Transfers between funds................ 736,897 2,201,223 1,290,714
Redemptions............................ (392,814) (854,333) (359,325)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (5,629) (8,941) (2,129)
Adjustments to maintain reserves....... (359) 8,686 35
-------------- -------------- --------------
Net equity transactions............ 11,174,387 16,571,453 13,395,608
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 12,199,232 22,073,706 14,513,189
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 592,741 15,026,672 513,483
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 12,791,973 37,100,378 15,026,672
============== ============== ==============
</TABLE>
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NSATGvtBd NSATHIncBd NSATMyMkt
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 11,115,708 4,068,221 3,747,180 1,175,418 13,994,349
Mortality and expense risk charges
(note 2)............................. (1,915,411) (617,861) (429,794) (140,356) (3,003,994)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. 9,200,297 3,450,360 3,317,386 1,035,062 10,990,355
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 19,852,089 6,875,359 17,841,203 1,434,798 914,095,013
Cost of mutual fund shares sold........ (20,364,218) (6,712,656) (18,615,221) (1,454,954) (914,095,013)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. (512,129) 162,703 (774,018) (20,156) -
Change in unrealized gain (loss)
on investments....................... (15,046,720) 96,330 (1,931,626) (637,940) -
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... (15,558,849) 259,033 (2,705,644) (658,096) -
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 458,147 644,842 20,477 - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... (5,900,405) 4,354,235 632,219 376,966 10,990,355
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 155,714,369 135,535,861 26,877,564 26,481,762 513,201,591
Transfers between funds................ (31,118,681) (2,966,402) (4,776,516) 2,932,999 (270,070,521)
Redemptions............................ (12,549,617) (4,331,237) (2,757,819) (701,614) (35,394,012)
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (152,236) (23,933) (38,131) (4,542) (569,286)
Adjustments to maintain reserves....... (5,324) 1,128 1,005 (12) 66,186
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 111,888,511 128,215,417 19,306,103 28,708,593 207,233,958
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 105,988,106 132,569,652 19,938,322 29,085,559 218,224,313
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 135,739,661 3,170,009 29,999,540 913,981 191,311,362
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 241,727,767 135,739,661 49,937,862 29,999,540 409,535,675
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NSATMyMkt NSATMSecBd
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 5,541,671 3,046,558 1,155,410
Mortality and expense risk charges
(note 2)............................. (1,078,918) (461,845) (177,722)
-------------- -------------- --------------
Net investment activity.............. 4,462,753 2,584,713 977,688
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 74,592,150 3,225,045 474,327
Cost of mutual fund shares sold........ (74,592,150) (3,438,764) (482,830)
-------------- -------------- --------------
Realized gain (loss) on investments.. - (213,719) (8,503)
Change in unrealized gain (loss)
on investments....................... - (1,852,549) (757,239)
-------------- -------------- --------------
Net gain (loss) on investments....... - (2,066,268) (765,742)
-------------- -------------- --------------
Reinvested capital gains............... - - 31,361
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 4,462,753 518,445 243,307
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 406,622,866 27,508,026 29,533,663
Transfers between funds................ (219,515,750) (1,144,670) 4,903,909
Redemptions............................ (13,347,779) (2,473,128) (761,323)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (133,217) (41,232) (7,092)
Adjustments to maintain reserves....... 36,549 (217) 78
-------------- -------------- --------------
Net equity transactions............ 173,662,669 23,848,779 33,669,235
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 178,125,422 24,367,224 33,912,542
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 13,185,940 34,953,838 1,041,296
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 191,311,362 59,321,062 34,953,838
============== ============== ==============
</TABLE>
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NSATMidCap NSATSmCapG NSATSmCapV
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 26,390 40,624 - - -
Mortality and expense risk charges
(note 2)............................. (100,293) (39,241) (17,275) - (447,536)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. (73,903) 1,383 (17,275) - (447,536)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 1,719,925 1,063,903 5,179,636 - 26,947,959
Cost of mutual fund shares sold........ (1,627,057) (1,093,420) (4,606,174) - (24,503,029)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 92,868 (29,517) 573,462 - 2,444,930
Change in unrealized gain (loss)
on investments....................... 1,139,778 397,911 3,274,222 - (2,252,934)
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... 1,232,646 368,394 3,847,684 - 191,996
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 906,636 - 510,845 - 11,306,131
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 2,065,379 369,777 4,341,254 - 11,050,591
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 5,311,828 6,187,234 3,532,204 - 25,899,735
Transfers between funds................ 629,075 558,871 6,524,803 - 3,995,622
Redemptions............................ (506,127) (98,756) (67,415) - (1,693,497)
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (6,847) (2,133) (334) - (30,984)
Adjustments to maintain reserves....... 4,046 6 (77,860) - 16,893
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 5,431,975 6,645,222 9,911,398 - 28,187,769
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 7,497,354 7,014,999 14,252,652 - 39,238,360
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 7,244,061 229,062 - - 29,728,543
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 14,741,415 7,244,061 14,252,652 - 68,966,903
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NSATSmCapV NSATSmCo
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - - -
Mortality and expense risk charges
(note 2)............................. $ (139,281) (590,685) (214,785)
-------------- -------------- --------------
Net investment activity.............. (139,281) (590,685) (214,785)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 2,135,282 98,840,506 1,735,242
Cost of mutual fund shares sold........ (2,330,458) (90,285,318) (1,907,541)
-------------- -------------- --------------
Realized gain (loss) on investments.. (195,176) 8,555,188 (172,299)
Change in unrealized gain (loss)
on investments....................... (40,635) 15,852,354 424,838
-------------- -------------- --------------
Net gain (loss) on investments....... (235,811) 24,407,542 252,539
-------------- -------------- --------------
Reinvested capital gains............... - 4,052,068 -
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... (375,092) 27,868,925 37,754
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 24,448,985 28,999,047 35,742,935
Transfers between funds................ 5,269,520 4,674,356 6,599,455
Redemptions............................ (761,878) (2,442,726) (919,776)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (10,195) (58,681) (7,264)
Adjustments to maintain reserves....... 49 967 6
-------------- -------------- --------------
Net equity transactions............ 28,946,481 31,172,963 41,415,356
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 28,571,389 59,041,888 41,453,110
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 1,157,154 43,011,425 1,558,315
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 29,728,543 102,053,313 43,011,425
============== ============== ==============
</TABLE>
<PAGE> 11
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NSATStrGro NSATStrVal NSATTotRe
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 114,007 63,791 2,607,845
Mortality and expense risk charges
(note 2)............................. (279,828) (43,967) (135,462) (72,683) (3,940,689)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. (279,828) (43,967) (21,455) (8,892) (1,332,844)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 7,402,907 487,613 5,077,140 1,450,301 5,635,213
Cost of mutual fund shares sold........ (5,535,789) (466,818) (5,576,119) (1,513,062) (4,896,728)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 1,867,118 20,795 (498,979) (62,761) 738,485
Change in unrealized gain (loss)
on investments....................... 18,826,217 809,463 (536,035) (125,831) 2,068,214
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... 20,693,335 830,258 (1,035,014) (188,592) 2,806,699
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 4,290,875 - 422,281 - 18,733,710
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 24,704,382 786,291 (634,188) (197,484) 20,207,565
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 22,842,076 7,304,155 5,369,174 12,996,713 236,961,792
Transfers between funds................ 32,390,564 441,689 (3,499,556) 616,493 (11,925,544)
Redemptions............................ (1,318,965) (118,200) (549,563) (291,210) (20,433,946)
Annuity benefits ...................... - - - - (1,253)
Contingent deferred sales charges
(note 2)............................. (31,712) (2,477) (11,600) (1,123) (403,251)
Adjustments to maintain reserves....... 881 (24) (138) (115) (74)
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 53,882,844 7,625,143 1,308,317 13,320,758 204,197,724
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 78,587,226 8,411,434 674,129 13,123,274 224,405,289
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 8,737,476 326,042 13,606,737 483,463 285,881,294
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period.... $ 87,324,702 8,737,476 14,280,866 13,606,737 510,286,583
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NSATTotRe NBAMTGuard
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 1,708,752 136,645 1,976
Mortality and expense risk charges
(note 2)............................. (1,383,759) (509,102) (150,013)
-------------- -------------- --------------
Net investment activity.............. 324,993 (372,457) (148,037)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 467,344 11,010,636 3,798,426
Cost of mutual fund shares sold........ (439,529) (10,638,188) (3,492,087)
-------------- -------------- --------------
Realized gain (loss) on investments.. 27,815 372,448 306,339
Change in unrealized gain (loss)
on investments....................... 4,936,630 5,598,352 594,984
-------------- -------------- --------------
Net gain (loss) on investments....... 4,964,445 5,970,800 901,323
-------------- -------------- --------------
Reinvested capital gains............... 11,040,291 - -
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 16,329,729 5,598,343 753,286
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 262,212,521 30,029,433 24,467,744
Transfers between funds................ 8,063,395 (1,195,248) 7,388,132
Redemptions............................ (6,698,439) (1,949,424) (704,350)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (83,262) (43,794) (8,663)
Adjustments to maintain reserves....... (796) (171) (16)
-------------- -------------- --------------
Net equity transactions............ 263,493,419 26,840,796 31,142,847
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 279,823,148 32,439,139 31,896,133
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 6,058,146 32,358,200 462,067
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 285,881,294 64,797,339 32,358,200
============== ============== ==============
</TABLE>
<PAGE> 12
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NBAMTMCGr NBAMTPart OppAggGro
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - 2,804 1,329,409 110,164 -
Mortality and expense risk charges
(note 2)............................. (486,685) (128,063) (1,181,540) (710,975) (562,098)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. (486,685) (125,259) 147,869 (600,811) (562,098)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 9,847,995 2,635,124 14,525,051 11,129,126 66,676,730
Cost of mutual fund shares sold........ (8,329,873) (2,223,804) (15,847,800) (12,460,209) (54,000,617)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 1,518,122 411,320 (1,322,749) (1,331,083) 12,676,113
Change in unrealized gain (loss)
on investments....................... 29,692,933 4,390,487 5,530,836 (3,000,603) 36,427,451
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... 31,211,055 4,801,807 4,208,087 (4,331,686) 49,103,564
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 854,495 19,626 2,312,016 3,470,168 -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 31,578,865 4,696,174 6,667,972 (1,462,329) 48,541,466
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 39,386,252 18,933,486 35,775,813 107,647,557 40,719,412
Transfers between funds................ 6,571,008 3,753,367 (18,685,095) (8,050,973) 32,955,048
Redemptions............................ (1,774,431) (610,060) (4,980,093) (2,536,518) (2,221,684)
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (37,463) (5,247) (115,843) (22,496) (49,415)
Adjustments to maintain reserves....... 623 10,095 (187) (1,292) 1,821
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 44,145,989 22,081,641 11,994,595 97,036,278 71,405,182
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 75,724,854 26,777,815 18,662,567 95,573,949 119,946,648
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 28,359,137 1,581,322 108,935,535 13,361,586 27,386,709
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 104,083,991 28,359,137 127,598,102 108,935,535 147,333,357
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
OppAggGro OppCapAp
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 9,456 188,198 37,971
Mortality and expense risk charges
(note 2)............................. (119,282) (871,318) (174,030)
-------------- -------------- --------------
Net investment activity.............. (109,826) (683,120) (136,059)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 1,420,396 1,778,562 597,638
Cost of mutual fund shares sold........ (1,460,125) (1,466,097) (673,390)
-------------- -------------- --------------
Realized gain (loss) on investments.. (39,729) 312,465 (75,752)
Change in unrealized gain (loss)
on investments....................... 1,711,620 36,882,889 4,326,733
-------------- -------------- --------------
Net gain (loss) on investments....... 1,671,891 37,195,354 4,250,981
-------------- -------------- --------------
Reinvested capital gains............... 97,107 2,067,307 458,139
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 1,659,172 38,579,541 4,573,061
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 21,395,189 69,998,087 34,076,956
Transfers between funds................ 4,014,156 26,275,783 2,552,479
Redemptions............................ (398,429) (3,288,357) (796,810)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (3,886) (64,894) (15,293)
Adjustments to maintain reserves....... 66 822 (7)
-------------- -------------- --------------
Net equity transactions............ 25,007,096 92,921,441 35,817,325
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 26,666,268 131,500,982 40,390,386
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 720,441 41,340,619 950,233
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 27,386,709 172,841,601 41,340,619
============== ============== ==============
</TABLE>
<PAGE> 13
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
OppGrinc VEWrldEMkt VEWrldHAs
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 256,716 15,499 - 10,120 32,691
Mortality and expense risk charges
(note 2)............................. (821,624) (226,980) (135,165) (30,563) (47,094)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. (564,908) (211,481) (135,165) (20,443) (14,403)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 2,205,547 1,051,542 49,595,652 1,437,687 33,912,002
Cost of mutual fund shares sold........ (2,181,405) (1,137,377) (44,294,831) (1,801,946) (33,450,865)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 24,142 (85,835) 5,300,821 (364,259) 461,137
Change in unrealized gain (loss)
on investments....................... 16,554,000 (156,268) 6,929,541 (898,926) 349,586
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... 16,578,142 (242,103) 12,230,362 (1,263,185) 810,723
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... 432,510 341,298 - 8,995 -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 16,445,744 (112,286) 12,095,197 (1,274,633) 796,320
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 71,680,449 47,098,256 8,623,115 5,631,777 2,392,796
Transfers between funds................ 5,709,038 4,855,602 10,280,791 (119,473) 1,791,654
Redemptions............................ (3,803,771) (1,267,689) (1,025,890) (159,609) (245,453)
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (65,301) (14,711) (32,807) (976) (1,862)
Adjustments to maintain reserves....... 129 6 621 120 5
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 73,520,544 50,671,464 17,845,830 5,351,839 3,937,140
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 89,966,288 50,559,178 29,941,027 4,077,206 4,733,460
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 51,643,553 1,084,375 4,734,742 657,536 2,047,555
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 141,609,841 51,643,553 34,675,769 4,734,742 6,781,015
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
VEWrldHAs VKMSRESec
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 2,513 1,176,823 10,631
Mortality and expense risk charges
(note 2)............................. (13,210) (195,387) (114,486)
-------------- -------------- --------------
Net investment activity.............. (10,697) 981,436 (103,855)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. 1,320,656 8,332,839 1,342,798
Cost of mutual fund shares sold........ (1,839,705) (9,623,986) (1,619,581)
-------------- -------------- --------------
Realized gain (loss) on investments.. (519,049) (1,291,147) (276,783)
Change in unrealized gain (loss)
on investments....................... (85,920) (722,279) (1,172,272)
-------------- -------------- --------------
Net gain (loss) on investments....... (604,969) (2,013,426) (1,449,055)
-------------- -------------- --------------
Reinvested capital gains............... 61,720 - 104,608
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... (553,946) (1,031,990) (1,448,302)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,371,551 8,349,713 17,955,980
Transfers between funds................ 111,448 (3,211,414) 861,422
Redemptions............................ (100,995) (943,773) (416,792)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. (454) (21,748) (1,112)
Adjustments to maintain reserves....... (228) (165) (276)
-------------- -------------- --------------
Net equity transactions............ 2,381,322 4,172,613 18,399,222
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 1,827,376 3,140,623 16,950,920
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 220,179 18,011,188 1,060,268
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 2,047,555 21,151,811 18,011,188
============== ============== ==============
</TABLE>
<PAGE> 14
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
VVIFDStk VVIFIQBd VVIFSmCoOPP
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 13,921 - 31,107 - 6,490
Mortality and expense risk charges
(note 2)............................. (7,664) - (1,470) - (889)
-------------- -------------- -------------- -------------- -------------
Net investment activity.............. 6,257 - 29,637 - 5,601
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 79,603 - 18,422 - 291
Cost of mutual fund shares sold........ (82,834) - (18,483) - (310)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. (3,231) - (61) - (19)
Change in unrealized gain (loss)
on investments....................... 164,023 - (32,432) - 11,787
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments....... 160,792 - (32,493) - 11,768
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains............... - - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 167,049 - (2,856) - 17,369
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 3,821,737 - 1,758,972 - 1,359,026
Transfers between funds................ 65,984 - - - -
Redemptions............................ (13,451) - (1,445) - -
Annuity benefits ...................... - - - - -
Contingent deferred sales charges
(note 2)............................. (305) - (43) - -
Adjustments to maintain reserves....... (3,436) - (22,296) - (5,256)
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ 3,870,529 - 1,735,188 - 1,353,770
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 4,037,578 - 1,732,332 - 1,371,139
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. - - - - -
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 4,037,578 - 1,732,332 - 1,371,139
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
VVIFSmCoOPP WPGrinc
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - 173,949 108,063
Mortality and expense risk charges
(note 2)............................. - (178,005) (65,537)
-------------- -------------- --------------
Net investment activity.............. - (4,056) 42,526
-------------- -------------- --------------
Proceeds from mutual fund shares sold.. - 5,363,260 492,211
Cost of mutual fund shares sold........ - (5,013,179) (462,324)
-------------- -------------- --------------
Realized gain (loss) on investments.. - 350,081 29,887
Change in unrealized gain (loss)
on investments....................... - (232,251) 416,403
-------------- -------------- --------------
Net gain (loss) on investments....... - 117,830 446,290
-------------- -------------- --------------
Reinvested capital gains............... - 313,236 -
-------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... - 427,010 488,816
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... - 8,990,039 11,279,862
Transfers between funds................ - (3,279,579) 1,072,048
Redemptions............................ - (785,224) (178,134)
Annuity benefits ...................... - - -
Contingent deferred sales charges
(note 2)............................. - (8,341) (1,134)
Adjustments to maintain reserves....... - (17,238) (786)
-------------- -------------- --------------
Net equity transactions............ - 4,899,657 12,171,856
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... - 5,326,667 12,660,672
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. - 13,095,692 435,020
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... - 18,422,359 13,095,692
============== ============== ==============
</TABLE>
<PAGE> 15
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
WPIntEq WPPVenCap
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 323,682 82,563 - -
Mortality and expense risk charges
(note 2)............................. (245,117) (89,474) (102,042) (30,241)
-------------- -------------- -------------- --------------
Net investment activity.............. 78,565 (6,911) (102,042) (30,241)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 158,927,167 2,101,509 20,338,944 1,184,605
Cost of mutual fund shares sold........ (149,550,425) (2,099,792) (17,967,401) (1,319,705)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 9,376,742 1,717 2,371,543 (135,100)
Change in unrealized gain (loss)
on investments....................... 4,764,159 (655,153) 4,746,233 268,939
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 14,140,901 (653,436) 7,117,776 133,839
-------------- -------------- -------------- --------------
Reinvested capital gains............... - - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations....................... 14,219,466 (660,347) 7,015,734 103,598
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 7,668,878 14,240,840 3,304,912 5,338,928
Transfers between funds................ 5,802,849 1,644,029 5,171,722 1,058,670
Redemptions............................ (1,105,825) (211,060) (382,170) (134,332)
Annuity benefits ...................... - - - -
Contingent deferred sales charges
(note 2)............................. (28,643) (2,448) (9,129) (810)
Adjustments to maintain reserves....... (44,309) (112) 86 15
-------------- -------------- -------------- --------------
Net equity transactions............ 12,292,950 15,671,249 8,085,421 6,262,471
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 26,512,416 15,010,902 15,101,155 6,366,069
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 15,824,159 813,257 6,508,542 142,473
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 42,336,575 15,824,159 21,609,697 6,508,542
============== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
<PAGE> 16
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide Variable Account-9 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on May 22, 1997. The Account has been
registered as a unit investment trust under the Investment Company Act
of 1940.
The Company offers tax qualified and non-tax qualified Modified Single
Premium Deferred Variable Annuity Contracts through the Account. The
primary distribution for the contracts is through the brokerage
community; however, other distributors are utilized.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees are offered for purchase.
See note 2 for a discussion of contract expenses.
With certain exceptions, contract owners in either the accumulation or
the payout phase may invest in the following:
Portfolios of the American Century Variable Portfolios, Inc.
(American Century VP);
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International
(ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolio of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
Dreyfus VIF - European Equities Fund (DryEuroEq)
Federated Insurance Series: Federated Quality Bond Fund II
(FedQualBd)
Portfolios of the Fidelity Variable Insurance Products Fund (
Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio - Service Class
(FidVIPEIS)
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGrS)
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHIS)
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOvS)
Portfolio of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Contrafund Portfolio - Service Class
(FidVIPConS)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio - Service
Class (FidVIPGrOpS)
Portfolio of the Morgan Stanley Universal Funds, Inc.
(Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Balanced Fund (NSATBal)
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Equity Income Fund (NSATEqInc)
Nationwide SAT - Global Equity Fund (NSATGlobEq)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
<PAGE> 17
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
Nationwide SAT - Select Advisors Small Cap Growth Fund
(NSATSmCapG)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
Nationwide SAT - Strategic Value Fund (NSATStrVal)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger &Berman AMT);
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer VAF);
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
Oppenheimer VAF - Capital Appreciation Fund (OppCapAp)
(formerly Oppenheimer VAF - Growth Fund)
Oppenheimer VAF - Main Street Growth & Income Fund (OppGrInc)
(formerly Oppenheimer VAF - Growth & Income Fund)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
Portfolio of the Van Kampen Life Investment Trust (Van
Kampen LIT);
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio
(VKMSRESec)
Portfolio of the Victory Variable Insurance Funds ( Victory VIF);
Victory VIF - Diversified Stock Fund - Class A (VVIFDStk)
Victory VIF - Investment Quality Bond Fund - Class A (VVIFIQBd)
Victory VIF - Small Company Opportunity Fund - Class A
(VVIFSmCoOpp)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Post Venture Capital Portfolio
(WPPVenCap)
At December 31, 1999, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain contract expenses (see note 2).
The accompanying financial statements include only contract owners'
purchase payments pertaining to the variable portions of their
contracts and exclude any purchase payments for fixed dollar benefits,
the latter being included in the accounts of the Company.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are available as investment options in variable life insurance policies
or variable annuity contracts issued by life insurance companies or, in
some cases, through participation in certain qualified pension or
retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(Continued)
<PAGE> 18
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at December 31, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(f) Calculation of Annuity Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects otherwise,
in which case the rate may vary from 3.5 percent to 7 percent, as
regulated by the laws of the respective states. The mortality risk is
fully borne by the Company and may result in additional amounts being
transferred into the Account by the Company to cover greater longevity
of annuitants than expected. Conversely, if reserves exceed amounts
required, transfers may be made to the Company.
(2) EXPENSES
(a) Sales Charges
The Company does not deduct a sales charge from purchase payments
received from the contract owners. However, if any part of the contract
value of such contracts is surrendered the Company will, with certain
exceptions, deduct from a contract owner's contract value a contingent
deferred sales charge.
On BOA Future, BOA V and BOA Choice contracts, the contingent deferred
sales charge will not exceed 7% of the lesser of purchase payments or
the amount surrendered, such charge declining to 0% after the purchase
payment has been held in the contract for 84 months. On IVA contracts,
the contingent deferred sales charge will not exceed 6% of the lesser
of purchase payments or the amount surrendered, such charge declining
to 0% after the purchase payment has been held in the contract for 84
months. No sales charges are deducted on BOA Exclusive II contracts.
No sales charges are deducted on redemptions used to purchase units in
the fixed investment options of the company.
<PAGE> 19
(b) Mortality and Expense Risk Charges
The Company deducts a mortality and expense risk charge assessed
through the daily unit value calculation as follows:
For the BOA Future contract, this charge ranges from an annual rate of
.95% to a maximum of 2.65% if all permissible rider options are
utilized. For this contract, the rider options include: (a) reduced
purchase payment; (b) five year CDSC; (c) CDSC waiver; (d) death
benefit; (e) guaranteed minimum income benefit and (f) purchase payment
bonus.
For the BOA Exclusive II contract, this charge ranges from an annual
rate of 1.20% to a maximum of 1.90% if all permissible rider options
are utilized. For this contract, the rider options include: (a) death
benefit and (b) guaranteed minimum income benefit.
For the BOA V contract, this charge ranges from an annual rate of 1.10%
to a maximum of 1.70% if all permissible rider options are utilized.
For this contract, the rider options include: (a) five year CDSC; (b)
CDSC waiver and (c) death benefit.
For the BOA Choice contract, this charge ranges from an annual rate of
1.20% to a maximum of 1.70% if all permissible rider options are
utilized. For this contract, the rider options include: (a) death
benefit and (b) guaranteed minimum income benefit.
For the IVA contract, this charge ranges from an annual rate of 1.25%
to a maximum of 1.45% if the death benefit option is utilized.
The rider options and permissible combinations and related charges for
the foregoing are described in the applicable product prospectus.
The following table provides mortality and expense risk charges by
asset fee rate for the year ended December 31, 1999:
<TABLE>
<CAPTION>
TOTAL ACVPIncGr ACVPInt ACVPValue DrySRGro
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............. $ 21,757,026 530,318 491,566 169,162 435,760
1.00% ............. 14,345,607 320,932 302,747 83,416 294,442
1.05% ............. 2,884,191 53,209 53,182 21,258 52,669
1.10% ............. 336,355 19,660 3,060 625 32,335
1.15% ............. 88,576 4,321 1,274 193 5,557
1.20% ............. 686,547 23,828 16,105 11,432 17,405
1.25% ............. 131,921 5,332 3,969 3,047 2,554
1.30% ............. 27,305 1,049 307 1 2,523
1.35% ............. 1,720 146 14 - 48
1.40% ............. 2,453,510 68,402 74,241 15,312 30,250
1.45% ............. 13,227 146 375 14 496
1.50% ............. 26,101 383 1,200 215 505
1.55% ............. 1,890 - 3 114 5
1.60% ............. 301 - - - 5
1.65% ............. 4,975 82 21 6 141
1.70% ............. 695 7 1 - 12
1.75% ............. 94 20 - 2 2
1.80% ............. 2 - - - -
------------ ------------ ------------ ------------ ------------
Total .......... $ 42,760,043 1,027,835 948,065 304,797 874,709
============ ============ ============ ============ ============
</TABLE>
(Continued)
<PAGE> 20
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
DryStkix DryCapAp DryEuroEq FedQualBd FidVIPEIS
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 3,016,838 589,617 1,284 9,265 1,404,837
1.00% ............ 2,024,620 363,958 576 5,642 1,054,365
1.05% ............ 377,296 90,450 24 686 234,084
1.10% ............ 56,608 14,946 13 145 12,542
1.15% ............ 15,814 5,757 - 75 2,703
1.20% ............ 87,196 29,645 242 439 34,175
1.25% ............ 16,805 3,147 45 9 10,460
1.30% ............ 7,002 2,173 3 5 1,165
1.35% ............ 313 57 - - 24
1.40% ............ 305,698 55,571 275 3,590 86,918
1.45% ............ 1,705 314 - - 1,448
1.50% ............ 5,114 775 - 58 1,192
1.55% ............ 251 4 - - 210
1.60% ............ 71 - - - -
1.65% ............ 196 16 - 12 143
1.70% ............ 148 3 - - 46
1.75% ............ 28 6 - - -
1.80% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 5,915,703 1,156,439 2,462 19,926 2,844,312
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVIPGrS FidVIPHIS FidVIPOvS FidVIPConS FidVIPGrOpS
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 1,493,811 745,195 242,387 1,313,821 747,075
1.00% ............ 1,070,697 456,701 131,511 875,110 619,622
1.05% ............ 186,137 142,636 34,707 141,335 100,891
1.10% ............ 32,456 5,464 974 28,621 4,981
1.15% ............ 9,401 1,244 251 4,870 636
1.20% ............ 80,167 13,927 9,541 67,792 24,590
1.25% ............ 12,973 3,815 2,593 7,593 3,367
1.30% ............ 1,883 167 35 2,627 129
1.35% ............ 130 13 10 56 5
1.40% ............ 209,213 89,860 44,059 120,968 74,271
1.45% ............ 1,510 115 72 391 52
1.50% ............ 2,173 393 385 2,165 664
1.55% ............ 231 17 3 122 95
1.60% ............ 73 - - - -
1.65% ............ 2,216 8 9 281 13
1.70% ............ 200 - 2 79 3
1.75% ............ 3 - - 10 -
1.80% ............ 1 - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 3,103,275 1,459,555 466,539 2,565,841 1,576,394
============ ============ ============ ============ ============
</TABLE>
<PAGE> 21
<TABLE>
<CAPTION>
MSEmMkt NSATBal NSATCapAp NSATEqInc NSATGlobEq
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 27,299 309,458 1,481,740 92,487 120,101
1.00% ............ 10,632 207,599 933,311 76,651 78,975
1.05% ............ 3,619 38,488 161,644 13,852 18,186
1.10% ............ 79 2,657 23,382 325 1,292
1.15% ............ 25 500 10,326 128 233
1.20% ............ 2,260 4,301 36,734 3,120 4,014
1.25% ............ 44 666 5,016 159 1,475
1.30% ............ - 381 1,371 6 26
1.35% ............ - 44 125 - 1
1.40% ............ 3,278 13,748 110,388 3,561 19,763
1.45% ............ - 94 539 20 27
1.50% ............ - 166 610 113 140
1.55% ............ - - 115 - 54
1.60% ............ - - 63 - -
1.65% ............ 4 11 722 17 -
1.70% ............ - 1 1 6 -
1.75% ............ - - - 6 -
1.80% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 47,240 578,114 2,766,087 190,451 244,287
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATGvtBd NSATHIncBd NSATMyMkt NSATMSecBd NSATMidCap
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 990,037 204,521 1,352,383 235,173 50,518
1.00% ............ 643,567 144,262 794,629 151,781 34,803
1.05% ............ 154,193 49,974 208,688 47,907 9,262
1.10% ............ 9,747 598 10,654 233 512
1.15% ............ 5,137 202 1,159 274 76
1.20% ............ 10,538 3,088 56,604 2,859 891
1.25% ............ 4,554 609 8,624 239 61
1.30% ............ 224 11 69 19 2
1.35% ............ 6 - 584 - -
1.40% ............ 96,366 26,223 566,291 23,247 4,046
1.45% ............ 433 118 1,006 24 -
1.50% ............ 583 132 3,134 28 27
1.55% ............ 9 5 - - 92
1.60% ............ 5 3 - - -
1.65% ............ 8 48 166 61 3
1.70% ............ - - 3 - -
1.75% ............ 4 - - - -
1.80% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 1,915,411 429,794 3,003,994 461,845 100,293
============ ============ ============ ============ ============
</TABLE>
(Continued)
<PAGE> 22
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
NSATSmCapG NSATSmCapV NSATSmCo NSATStrGro NSATStrVal
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............. $ 8,888 254,795 307,391 158,226 82,767
1.00% ............. 4,485 127,478 192,099 77,342 35,717
1.05% ............. 1,287 33,249 35,675 12,673 12,621
1.10% ............. 44 2,654 1,852 2,093 156
1.15% ............. 8 618 452 430 63
1.20% ............. 622 4,811 4,691 7,476 742
1.25% ............. 211 1,208 1,319 2,035 153
1.30% ............. 2 60 96 60 1
1.35% ............. - 5 4 - -
1.40% ............. 1,371 22,257 46,795 18,687 2,893
1.45% ............. 87 139 32 207 127
1.50% ............. 270 260 277 547 222
1.55% ............. - - - 2 -
1.60% ............. - 2 - 4 -
1.65% ............. - - - 38 -
1.70% ............. - - 2 8 -
1.75% ............. - - - - -
1.80% ............. - - - - -
------------ ------------ ------------ ------------ ------------
Total .......... $ 17,275 447,536 590,685 279,828 135,462
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATTotRe NBAMTGuard NBAMTMCGr NBAMTPart OppAggGro
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............. $ 2,108,337 236,980 248,428 624,656 295,789
1.00% ............. 1,452,523 185,756 158,289 449,076 162,366
1.05% ............. 227,585 42,007 38,476 71,153 32,685
1.10% ............. 38,153 4,898 5,110 2,579 4,818
1.15% ............. 10,041 844 698 929 1,135
1.20% ............. 18,885 10,395 14,834 9,160 11,285
1.25% ............. 6,859 675 1,521 3,516 4,384
1.30% ............. 3,288 305 333 158 347
1.35% ............. 95 - 1 - 2
1.40% ............. 71,871 26,977 18,251 19,974 47,983
1.45% ............. 1,957 49 204 186 498
1.50% ............. 671 212 411 120 677
1.55% ............. 336 3 105 12 3
1.60% ............. - - - - -
1.65% ............. 31 1 17 21 101
1.70% ............. 51 - 7 - 25
1.75% ............. 5 - - - -
1.80% ............. 1 - - - -
------------ ------------ ------------ ------------ ------------
Total .......... $ 3,940,689 509,102 486,685 1,181,540 562,098
============ ============ ============ ============ ============
</TABLE>
<PAGE> 23
<TABLE>
<CAPTION>
OppCapAp OppGrinc VEWrldEMkt VEWrldHAs VKMSRESec
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 453,566 404,018 73,513 25,572 116,110
1.00% ............ 293,967 285,168 35,483 12,580 57,784
1.05% ............ 51,851 65,935 9,350 3,386 11,719
1.10% ............ 6,885 3,782 420 141 260
1.15% ............ 1,555 1,173 69 28 74
1.20% ............ 19,500 18,378 3,124 1,337 3,074
1.25% ............ 3,703 5,683 713 161 109
1.30% ............ 1,025 295 21 37 22
1.35% ............ 32 5 - - -
1.40% ............ 38,023 35,301 12,356 3,827 6,216
1.45% ............ 96 598 105 8 -
1.50% ............ 958 835 11 17 19
1.55% ............ - 95 - - -
1.60% ............ 72 - - - -
1.65% ............ 70 282 - - -
1.70% ............ 9 75 - - -
1.75% ............ 6 1 - - -
1.80% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 871,318 821,624 135,165 47,094 195,387
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
VVIFDStk VVIFIQBd VVIFSmCoOpp WPGrInc WPintEq
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ - - - 107,503 137,775
1.00% ............ - - - 50,145 61,839
1.05% ............ - - - 13,682 15,866
1.10% ............ - - - 129 177
1.15% ............ - - - 122 181
1.20% ............ 7,367 1,387 850 1,775 3,193
1.25% ............ 73 17 14 349 1,728
1.30% ............ - - - - 5
1.35% ............ - - - - -
1.40% ............ - - - 4,093 24,158
1.45% ............ - - - - 35
1.50% ............ 115 5 10 196 113
1.55% ............ - - - 4 -
1.60% ............ - - - - 3
1.65% ............ 109 61 15 - 44
1.70% ............ - - - 6 -
1.75% ............ - - - 1 -
1.80% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 7,664 1,470 889 178,005 245,117
============ ============ ============ ============ ============
</TABLE>
(Continued)
<PAGE> 24
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
WPPVenCap
------------
0.95% ............ $ 58,059
1.00% ............ 22,961
1.05% ............ 10,614
1.10% ............ 295
1.15% ............ -
1.20% ............ 2,768
1.25% ............ 334
1.30% ............ 72
1.35% ............ -
1.40% ............ 6,938
1.45% ............ -
1.50% ............ -
1.55% ............ -
1.60% ............ -
1.65% ............ 1
1.70% ............ -
1.75% ............ -
1.80% ............ -
------------
Total ......... $ 102,042
============
The following table provides mortality and expense risk charges by
asset fee rate for the year ended December 31, 1998:
<TABLE>
<CAPTION>
TOTAL ACVPIncGr ACVPint ACVPValue DrySRGro
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 6,687,096 104,919 135,323 68,970 87,632
1.00% ............ 4,480,001 64,746 74,971 44,443 63,281
1.05% ............ 1,009,646 13,006 14,635 8,106 13,367
1.10% ............ 909 46 9 4 51
1.15% ............ 244 14 9 - 15
1.20% ............ 1,510 19 2 24 13
1.25% ............ 131 - - 2 15
1.30% ............ 50 - - - 6
1.35% ............ 37 - 4 - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 12,179,624 182,750 224,953 121,549 164,380
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
DryStkix DryCapAp FidVIPEIS FidVIPGrS FidVIPHIS
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 736,785 111,207 505,712 212,170 294,475
1.00% ............ 495,327 62,252 395,500 166,839 193,581
1.05% ............ 102,440 17,737 90,638 35,112 58,296
1.10% ............ 137 62 58 51 22
1.15% ............ 51 27 7 10 5
1.20% ............ 305 19 41 99 16
1.25% ............ 30 - 22 6 -
1.30% ............ 2 4 14 1 -
1.35% ............ 5 4 - - 4
------------ ------------ ------------ ------------ ------------
Total ......... $ 1,335,082 191,312 991,992 414,288 546,399
============ ============ ============ ============ ============
</TABLE>
<PAGE> 25
<TABLE>
<CAPTION>
FidVIPOvS FidVIPCOnS FidVIPGrOpS MSEmMkt NSATBal
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 70,614 299,506 225,407 13,756 90,403
1.00% ............ 42,096 193,026 198,453 5,701 70,281
1.05% ............ 13,142 37,910 34,785 1,939 15,676
1.10% ............ - 67 23 - 11
1.15% ............ 2 15 - - 7
1.20% ............ 32 115 7 8 9
1.25% ............ - - - 1 -
1.30% ............ - 2 - - 1
1.35% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 125,886 530,641 458,675 21,405 176,388
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATCapAp NSATEqinc NSATGlobEq NSATGvtBd NSATHIncBd
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 465,341 34,439 39,570 325,601 70,627
1.00% ............ 270,821 27,139 28,746 228,102 51,930
1.05% ............ 52,969 5,129 8,199 64,068 17,784
1.10% ............ 81 - 5 51 -
1.15% ............ 20 1 - 13 -
1.20% ............ 17 18 - 11 14
1.25% ............ - - 2 14 1
1.30% ............ - - - 1 -
1.35% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 789,249 66,726 76,522 617,861 140,356
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATMyMkt NSATMSecBd NSATMidCap NSATSmCapV NSATSmCo
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 597,802 95,878 20,251 83,736 117,084
1.00% ............ 367,633 61,058 14,445 45,868 81,828
1.05% ............ 112,880 20,762 4,536 9,629 15,866
1.10% ............ 56 2 9 7 7
1.15% ............ 1 - - 4 -
1.20% ............ 530 20 - 35 -
1.25% ............ - 1 - 2 -
1.30% ............ - 1 - - -
1.35% ............ 16 - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 1,078,918 177,722 39,241 139,281 214,785
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATStrGro NSATStrVal NSATTotRe NBAMTGuard NBAMTMCGr
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 27,226 41,771 790,615 72,339 60,842
1.00% ............ 13,699 23,731 504,264 65,593 55,230
1.05% ............ 3,029 7,171 88,737 12,071 11,986
1.10% ............ 12 1 65 10 1
1.15% ............ - - 29 - -
1.20% ............ - 9 28 - 4
1.25% ............ - - 9 - -
1.30% ............ 1 - 8 - -
1.35% ............ - - 4 - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 43,967 72,683 1,383,759 150,013 128,063
============ ============ ============ ============ ============
</TABLE>
(Continued)
<PAGE> 26
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
NBAMTPart OppAggGro OppCapAp OppGrinc VEWrldEMkt
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 403,079 66,368 97,646 118,139 15,766
1.00% ............ 264,681 43,278 61,251 87,278 11,953
1.05% ............ 43,176 9,592 15,113 21,510 2,830
1.10% ............ 16 7 5 18 -
1.15% ............ 3 2 2 5 -
1.20% ............ 17 26 6 26 14
1.25% ............ 3 5 6 - -
1.30% ............ - 4 1 4 -
1.35% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 710,975 119,282 174,030 226,980 30,563
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
VEWrldHAs VKMSRESec WPGrinc WPIntEq WPPVenCap
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95% ............ $ 8,058 67,026 39,367 53,651 17,995
1.00% ............ 3,644 39,789 19,708 28,614 9,221
1.05% ............ 1,503 7,635 6,454 7,209 3,019
1.10% ............ 5 8 2 - -
1.15% ............ - 2 - - -
1.20% ............ - 26 - - -
1.25% ............ - - 6 - 6
1.30% ............ - - - - -
1.35% ............ - - - - -
------------ ------------ ------------ ------------ ------------
Total ......... $ 13,210 114,486 65,537 89,474 30,241
============ ============ ============ ============ ============
</TABLE>
(3) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
<PAGE> 27
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1999.
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
Asset fee @ 0.95% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified .............................. 2,690,998 15.291612 41,149,697 17%
Non-tax Qualified .......................... 2,833,886 15.291612 43,334,685 17%
American Century VP -
American Century VP International:
Tax Qualified .............................. 2,425,184 19.282175 46,762,822 62%
Non-tax Qualified .......................... 2,784,977 19.282175 53,700,414 62%
American Century VP -
American Century VP Value:
Tax Qualified .............................. 954,736 10.498316 10,023,120 (2)%
Non-tax Qualified .......................... 1,026,271 10.498316 10,774,117 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified .............................. 2,847,028 16.794438 47,814,235 29%
Non-tax Qualified .......................... 2,125,519 16.794438 35,696,897 29%
Dreyfus Stock Index Fund:
Tax Qualified .............................. 14,498,220 15.692141 227,508,112 19%
Non-tax Qualified .......................... 15,265,955 15.692141 239,555,518 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified .............................. 2,549,775 14.595134 37,214,308 10%
Non-tax Qualified .......................... 3,204,478 14.595134 46,769,786 10%
Dreyfus VIF -
European Equity Fund:
Tax Qualified .............................. 41,766 12.898688 538,727 29%(a)
Non-tax Qualified .......................... 54,269 12.898688 699,999 29%(a)
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified .............................. 179,065 9.806807 1,756,056 (2)%(a)
Non-tax Qualified .......................... 169,575 9.806807 1,662,989 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified .............................. 7,672,595 12.021290 92,234,490 5%
Non-tax Qualified .......................... 7,100,475 12.021290 85,356,869 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified .............................. 7,650,757 18.830990 144,071,329 36%
Non-tax Qualified .......................... 7,754,684 18.830990 146,028,377 36%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified .............................. 4,486,911 10.262325 46,046,139 7%
Non-tax Qualified .......................... 4,783,500 10.262325 49,089,832 7%
</TABLE>
(Continued)
<PAGE> 28
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ............................... 1,153,906 15.589761 17,989,119 41%
Non-tax Qualified ........................... 1,895,187 15.589761 29,545,512 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ............................... 6,845,562 15.755094 107,852,473 23%
Non-tax Qualified ........................... 6,862,565 15.755094 108,120,357 23%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ............................... 3,626,724 13.235715 48,002,285 3%
Non-tax Qualified ........................... 3,948,998 13.235715 52,267,812 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified ............................... 177,847 9.477539 1,685,552 28%
Non-tax Qualified ........................... 212,802 9.477539 2,016,839 28%
Nationwide SAT - Balanced Fund:
Tax Qualified ............................... 1,986,315 10.834304 21,520,341 0%
Non-tax Qualified ........................... 1,732,414 10.834304 18,769,500 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ............................... 7,218,822 13.808913 99,684,085 3%
Non-tax Qualified ........................... 6,364,816 13.808913 87,891,190 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ............................... 416,097 13.600816 5,659,259 17%
Non-tax Qualified ........................... 528,751 13.600816 7,191,445 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ............................... 567,148 14.515197 8,232,265 22%
Non-tax Qualified ........................... 697,119 14.515197 10,118,820 22%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ............................... 6,202,151 10.583479 65,640,335 (3)%
Non-tax Qualified ........................... 5,468,943 10.583479 57,880,443 (3)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ............................... 1,052,700 10.938415 11,514,869 2%
Non-tax Qualified ........................... 1,171,631 10.938415 12,815,786 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ............................... 8,459,558 10.909142 92,286,519 4%
Non-tax Qualified ........................... 7,978,115 10.909142 87,034,389 4%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ............................... 1,525,742 10.313452 15,735,667 1%
Non-tax Qualified ........................... 1,426,549 10.313452 14,712,645 1%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ............................... 287,257 13.078919 3,757,011 20%
Non-tax Qualified ........................... 273,331 13.078919 3,574,874 20%
</TABLE>
<PAGE> 29
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT -
Select Advisers Small Cap Growth Fund:
Tax Qualified ............................... 123,064 20.372476 2,507,118 104%(a)
Non-tax Qualified ........................... 175,712 20.372476 3,579,689 104%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ............................... 1,560,795 11.943543 18,641,422 27%
Non-tax Qualified ........................... 1,724,288 11.943543 20,594,108 27%
Nationwide SAT - Small Company Fund:
Tax Qualified ............................... 1,832,595 13.720318 25,143,786 43%
Non-tax Qualified ........................... 1,989,069 13.720318 27,290,659 43%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ............................... 992,231 21.195607 21,030,938 83%
Non-tax Qualified ........................... 1,218,089 21.195607 25,818,136 83%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ............................... 349,117 9.687523 3,382,079 (4)%
Non-tax Qualified ........................... 506,067 9.687523 4,902,536 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified ............................... 12,724,239 12.689484 161,464,027 6%
Non-tax Qualified ........................... 8,751,347 12.689484 111,050,078 6%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ............................... 961,809 15.595438 14,999,833 14%
Non-tax Qualified ........................... 980,827 15.595438 15,296,427 14%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ............................... 1,006,419 24.609353 24,767,320 52%
Non-tax Qualified ........................... 1,117,405 24.609353 27,498,614 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ............................... 3,101,826 11.122733 34,500,782 6%
Non-tax Qualified ........................... 2,953,135 11.122733 32,846,932 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ............................... 1,788,303 19.295630 34,506,433 82%
Non-tax Qualified ........................... 1,959,307 19.295630 37,806,063 82%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ............................... 2,455,900 16.935851 41,592,756 40%
Non-tax Qualified ........................... 2,580,016 16.935851 43,694,767 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ............................... 2,722,872 12.826564 34,925,092 21%
Non-tax Qualified ........................... 2,648,768 12.826564 33,974,592 21%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ............................... 710,892 11.409242 8,110,739 98%
Non-tax Qualified ........................... 942,982 11.409242 10,758,710 98%
</TABLE>
(Continued)
<PAGE> 30
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified .............................. 220,914 7.358645 1,625,628 20%
Non-tax Qualified .......................... 195,186 7.358645 1,436,304 20%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified .............................. 685,816 8.662065 5,940,583 (4)%
Non-tax Qualified .......................... 759,304 8.662065 6,577,141 (4)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified .............................. 378,228 12.124398 4,585,787 5%
Non-tax Qualified .......................... 450,717 12.124398 5,464,672 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified .............................. 686,977 14.993656 10,300,297 52%
Non-tax Qualified .......................... 890,352 14.993656 13,349,632 52%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified .............................. 336,738 16.833540 5,668,493 62%
Non-tax Qualified .......................... 423,065 16.833540 7,121,682 62%
Asset fee @ 1.00% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified .............................. 1,586,053 15.274980 24,226,928 17%
Non-tax Qualified .......................... 1,607,606 15.274980 24,556,149 17%
American Century VP -
American Century VP International:
Tax Qualified .............................. 1,533,035 19.261196 29,528,088 62%
Non-tax Qualified .......................... 1,546,288 19.261196 29,783,356 62%
American Century VP -
American Century VP Value:
Tax Qualified .............................. 468,087 10.486868 4,908,767 (2)%
Non-tax Qualified .......................... 477,945 10.486868 5,012,146 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified .............................. 1,646,571 16.776156 27,623,132 29%
Non-tax Qualified .......................... 1,408,453 16.776156 23,628,427 29%
Dreyfus Stock Index Fund:
Tax Qualified .............................. 10,096,625 15.675065 158,265,253 19%
Non-tax Qualified .......................... 9,009,878 15.675065 141,230,423 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified .............................. 1,765,804 14.579248 25,744,094 10%
Non-tax Qualified .......................... 1,673,895 14.579248 24,404,130 10%
Dreyfus VIF -
European Equity Fund:
Tax Qualified .............................. 22,852 12.897004 294,722 29%(a)
Non-tax Qualified .......................... 12,111 12.897004 156,196 29%(a)
</TABLE>
<PAGE> 31
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified .............................. 84,481 9.803523 828,211 (2)%(a)
Non-tax Qualified .......................... 137,958 9.803523 1,352,474 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified .............................. 5,052,392 12.008202 60,670,144 5%
Non-tax Qualified .......................... 5,482,699 12.008202 65,837,357 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified .............................. 5,450,461 18.810518 102,525,995 36%
Non-tax Qualified .......................... 4,942,338 18.810518 92,967,938 36%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified .............................. 2,467,569 10.251150 25,295,420 7%
Non-tax Qualified .......................... 2,678,471 10.251150 27,457,408 7%
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified .............................. 754,434 15.572798 11,748,648 41%
Non-tax Qualified .......................... 703,108 15.572798 10,949,359 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified .............................. 4,360,828 15.737973 68,630,593 23%
Non-tax Qualified .......................... 4,271,544 15.737973 67,225,444 23%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified .............................. 2,904,875 13.221287 38,406,186 3%
Non-tax Qualified .......................... 2,903,624 13.221287 38,389,646 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified .............................. 82,636 9.467196 782,331 28%
Non-tax Qualified .......................... 69,175 9.467196 654,893 28%
Nationwide SAT - Balanced Fund:
Tax Qualified .............................. 1,274,299 10.822502 13,791,103 0%
Non-tax Qualified .......................... 1,025,400 10.822502 11,097,394 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified .............................. 4,491,316 13.793878 61,952,665 3%
Non-tax Qualified .......................... 3,382,879 13.793878 46,663,020 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified .............................. 328,594 13.586032 4,464,289 17%
Non-tax Qualified .......................... 411,828 13.586032 5,595,108 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified .............................. 331,568 14.499401 4,807,537 22%
Non-tax Qualified .......................... 402,444 14.499401 5,835,197 22%
Nationwide SAT -
Government Bond Fund:
Tax Qualified .............................. 3,887,245 10.571951 41,095,764 (3)%
Non-tax Qualified .......................... 3,354,315 10.571951 35,461,654 (3)%
</TABLE>
(Continued)
<PAGE> 32
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT -
High Income Bond Fund:
Tax Qualified .............................. 729,292 10.926498 7,968,608 2%
Non-tax Qualified .......................... 771,554 10.926498 8,430,383 2%
Nationwide SAT - Money Market Fund:
Tax Qualified .............................. 4,438,660 10.897217 48,369,041 4%
Non-tax Qualified .......................... 4,647,437 10.897217 50,644,129 4%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified .............................. 895,547 10.302225 9,226,127 1%
Non-tax Qualified .......................... 867,916 10.302225 8,941,466 1%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified .............................. 180,877 13.064679 2,363,100 20%
Non-tax Qualified .......................... 171,721 13.064679 2,243,480 20%
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Tax Qualified .............................. 78,533 20.365684 1,599,378 104%(a)
Non-tax Qualified .......................... 81,709 20.365684 1,664,060 104%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified .............................. 750,886 11.930542 8,958,477 27%
Non-tax Qualified .......................... 704,595 11.930542 8,406,200 27%
Nationwide SAT - Small Company Fund:
Tax Qualified .............................. 1,081,909 13.705373 14,827,966 43%
Non-tax Qualified .......................... 1,081,295 13.705373 14,819,551 43%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified .............................. 513,063 21.172544 10,862,849 83%
Non-tax Qualified .......................... 614,259 21.172544 13,005,426 83%
Nationwide SAT - Strategic Value Fund:
Tax Qualified .............................. 166,391 9.676976 1,610,162 (4)%
Non-tax Qualified .......................... 222,806 9.676976 2,156,088 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified .............................. 8,158,035 12.675660 103,408,478 6%
Non-tax Qualified .......................... 6,056,435 12.675660 76,769,311 6%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified .............................. 735,905 15.578481 11,464,282 14%
Non-tax Qualified .......................... 627,956 15.578481 9,782,601 14%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified .............................. 625,238 24.582570 15,369,957 52%
Non-tax Qualified .......................... 647,732 24.582570 15,922,917 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified .............................. 2,114,112 11.110632 23,489,120 6%
Non-tax Qualified .......................... 2,074,401 11.110632 23,047,906 6%
</TABLE>
<PAGE> 33
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified .............................. 992,375 19.274630 19,127,661 82%
Non-tax Qualified .......................... 1,028,055 19.274630 19,815,380 82%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified .............................. 1,696,031 16.917425 28,692,477 40%
Non-tax Qualified .......................... 1,605,365 16.917425 27,158,642 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified .............................. 1,667,923 12.812596 21,370,424 20%
Non-tax Qualified .......................... 1,778,201 12.812596 22,783,371 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified .............................. 357,687 11.396847 4,076,504 98%
Non-tax Qualified .......................... 359,944 11.396847 4,102,227 98%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified .............................. 116,193 7.350618 854,090 20%
Non-tax Qualified .......................... 100,478 7.350618 738,575 20%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified .............................. 385,417 8.652617 3,334,866 (4)%
Non-tax Qualified .......................... 264,581 8.652617 2,289,318 (4)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified .............................. 192,234 12.111181 2,328,181 5%
Non-tax Qualified .......................... 262,414 12.111181 3,178,143 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified .............................. 290,968 14.977312 4,357,919 52%
Non-tax Qualified .......................... 329,905 14.977312 4,941,090 52%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified .............................. 169,900 16.815230 2,856,908 62%
Non-tax Qualified .......................... 133,486 16.815230 2,244,598 62%
Asset fee @ 1.05% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified .............................. 198,463 15.258324 3,028,213 17%
Non-tax Qualified .......................... 322,820 15.258324 4,925,692 17%
American Century VP -
American Century VP International:
Tax Qualified .............................. 179,327 19.240268 3,450,300 62%
Non-tax Qualified .......................... 314,342 19.240268 6,048,024 62%
American Century VP -
American Century VP Value:
Tax Qualified .............................. 100,979 10.475442 1,057,800 (2)%
Non-tax Qualified .......................... 110,453 10.475442 1,157,044 (2)%
</TABLE>
(Continued)
<PAGE> 34
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ............................... 190,962 16.757880 3,200,118 29%
Non-tax Qualified ........................... 323,823 16.757880 5,426,587 29%
Dreyfus Stock Index Fund:
Tax Qualified ............................... 1,431,726 15.657978 22,417,934 19%
Non-tax Qualified ........................... 1,815,547 15.657978 28,427,795 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ............................... 347,448 14.563385 5,060,019 10%
Non-tax Qualified ........................... 488,188 14.563385 7,109,670 10%
Dreyfus VIF - European Equity Fund:
Tax Qualified ............................... 888 12.895311 11,451 29%(a)
Non-tax Qualified ........................... 1,301 12.895311 16,777 29%(a)
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified ............................... 13,067 9.800240 128,060 (2)%(a)
Non-tax Qualified ........................... 13,067 9.800240 128,060 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ............................... 828,159 11.995103 9,933,853 5%
Non-tax Qualified ........................... 1,450,150 11.995103 17,394,699 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ............................... 624,895 18.790040 11,741,802 36%
Non-tax Qualified ........................... 990,036 18.790040 18,602,816 36%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ............................... 763,280 10.239981 7,815,973 7%
Non-tax Qualified ........................... 837,266 10.239981 8,573,588 7%
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ............................... 146,217 15.555856 2,274,531 41%
Non-tax Qualified ........................... 210,666 15.555856 3,277,090 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ............................... 509,735 15.720833 8,013,459 23%
Non-tax Qualified ........................... 791,505 15.720833 12,443,118 23%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ............................... 427,715 13.206894 5,648,787 3%
Non-tax Qualified ........................... 467,419 13.206894 6,173,153 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified ............................... 20,165 9.456874 190,698 28%
Non-tax Qualified ........................... 24,015 9.456874 227,107 28%
</TABLE>
<PAGE> 35
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Balanced Fund:
Tax Qualified ............................... 154,427 10.810714 1,669,466 0%
Non-tax Qualified ........................... 230,363 10.810714 2,490,389 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ............................... 619,838 13.778852 8,540,656 3%
Non-tax Qualified ........................... 696,071 13.778852 9,591,059 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ............................... 59,154 13.571227 802,792 17%
Non-tax Qualified ........................... 81,119 13.571227 1,100,884 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ............................... 72,658 14.483618 1,052,351 22%
Non-tax Qualified ........................... 93,078 14.483618 1,348,106 22%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ............................... 632,014 10.560422 6,674,335 (3)%
Non-tax Qualified ........................... 905,782 10.560422 9,565,440 (3)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ............................... 179,156 10.914588 1,955,414 2%
Non-tax Qualified ........................... 286,727 10.914588 3,129,507 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ............................... 936,225 10.885293 10,191,083 4%
Non-tax Qualified ........................... 1,266,352 10.885293 13,784,613 4%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ............................... 196,859 10.290997 2,025,875 0%
Non-tax Qualified ........................... 314,788 10.290997 3,239,482 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ............................... 42,315 13.050437 552,229 20%
Non-tax Qualified ........................... 46,779 13.050437 610,486 20%
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Tax Qualified ............................... 7,378 20.358893 150,208 104%(a)
Non-tax Qualified ........................... 26,356 20.358893 536,579 104%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ............................... 133,437 11.917534 1,590,240 26%
Non-tax Qualified ........................... 226,896 11.917534 2,704,041 26%
Nationwide SAT - Small Company Fund:
Tax Qualified ............................... 135,871 13.690433 1,860,133 43%
Non-tax Qualified ........................... 236,341 13.690433 3,235,611 43%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ............................... 64,464 21.149503 1,363,382 83%
Non-tax Qualified ........................... 96,599 21.149503 2,043,021 83%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ............................... 38,395 9.666432 371,143 (4)%
Non-tax Qualified ........................... 82,657 9.666432 798,998 (4)%
</TABLE>
(Continued)
<PAGE> 36
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Total Return Fund:
Tax Qualified ............................. 1,030,024 12.661861 13,042,021 6%
Non-tax Qualified ......................... 1,055,012 12.661861 13,358,415 6%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ............................. 89,533 15.561518 1,393,269 14%
Non-tax Qualified ......................... 196,408 15.561518 3,056,407 14%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ............................. 103,766 24.555839 2,548,061 52%
Non-tax Qualified ......................... 174,869 24.555839 4,294,055 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ............................. 278,907 11.098514 3,095,453 6%
Non-tax Qualified ......................... 352,606 11.098514 3,913,403 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ............................. 138,526 19.253639 2,667,130 82%
Non-tax Qualified ......................... 196,300 19.253639 3,779,489 82%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ............................. 256,505 16.898986 4,334,674 40%
Non-tax Qualified ......................... 294,848 16.898986 4,982,632 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ............................. 277,065 12.798619 3,546,049 20%
Non-tax Qualified ......................... 459,069 12.798619 5,875,449 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ............................. 66,888 11.384426 761,481 98%
Non-tax Qualified ......................... 80,175 11.384426 912,746 98%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified ............................. 33,535 7.342607 246,234 20%
Non-tax Qualified ......................... 19,917 7.342607 146,243 20%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified ............................. 52,923 8.643190 457,424 (4)%
Non-tax Qualified ......................... 80,562 8.643190 696,313 (4)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified ............................. 21,640 12.098010 261,801 5%
Non-tax Qualified ......................... 101,514 12.098010 1,228,117 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified ............................. 69,477 14.961024 1,039,447 52%
Non-tax Qualified ......................... 84,777 14.961024 1,268,351 52%
</TABLE>
<PAGE> 37
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified............................... 39,482 16.796919 663,176 62%
Non-tax Qualified........................... 65,236 16.796919 1,095,764 62%
Asset fee @ 1.10% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified............................... 222,417 14.608384 3,249,153 17%
Non-tax Qualified........................... 29,546 14.608384 431,619 17%
American Century VP -
American Century VP International:
Tax Qualified............................... 41,404 19.569739 810,265 62%
Non-tax Qualified........................... 14,836 19.569739 290,337 62%
American Century VP -
American Century VP Value:
Tax Qualified............................... 11,136 11.060928 123,174 (2)%
Non-tax Qualified........................... 4,147 11.060928 45,870 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified............................... 465,748 16.447766 7,660,514 29%
Non-tax Qualified........................... 42,230 16.447766 694,589 29%
Dreyfus Stock Index Fund:
Tax Qualified............................... 779,350 14.867150 11,586,713 19%
Non-tax Qualified........................... 110,264 14.867150 1,639,311 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified............................... 194,676 13.657521 2,658,792 10%
Non-tax Qualified........................... 19,399 13.657521 264,942 10%
Dreyfus VIF - European Equity Fund:
Tax Qualified............................... 101 12.893630 1,302 29%(a)
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified............................... 2,380 9.796953 23,317 (2)%(a)
Non-tax Qualified........................... 3,679 9.796953 36,043 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified............................... 168,053 12.410474 2,085,617 5%
Non-tax Qualified........................... 60,188 12.410474 746,962 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified............................... 396,464 17.534950 6,951,976 36%
Non-tax Qualified........................... 82,691 17.534950 1,449,983 36%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified............................... 97,542 11.255695 1,097,903 7%
Non-tax Qualified........................... 12,538 11.255695 141,124 7%
</TABLE>
(Continued)
<PAGE> 38
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ................................ 16,652 17.171657 285,942 41%
Non-tax Qualified ............................ 7,383 17.171657 126,778 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ................................ 357,916 15.712599 5,623,791 23%
Non-tax Qualified ............................ 53,716 15.712599 844,018 23%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................ 60,701 12.683293 769,889 3%
Non-tax Qualified ............................ 18,169 12.683293 230,443 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified ................................ 1,189 14.580968 17,337 28%
Non-tax Qualified ............................ 167 14.580968 2,435 28%
Nationwide SAT - Balanced Fund:
Tax Qualified ................................ 32,797 10.651741 349,345 0%
Non-tax Qualified ............................ 9,454 10.651741 100,702 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ................................ 286,356 12.829034 3,673,671 3%
Non-tax Qualified ............................ 73,395 12.829034 941,587 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ................................ 5,677 13.882376 78,810 17%
Non-tax Qualified ............................ 1,067 13.882376 14,812 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ................................ 20,185 14.846771 299,682 22%
Non-tax Qualified ............................ 4,952 14.846771 73,521 22%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ................................ 163,660 9.515930 1,557,377 (3)%
Non-tax Qualified ............................ 38,632 9.515930 367,619 (3)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ................................ 9,774 10.552305 103,138 2%
Non-tax Qualified ............................ 1,849 10.552305 19,511 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ................................ 181,296 10.468792 1,897,950 4%
Non-tax Qualified ............................ 44,218 10.468792 462,909 4%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ................................ 2,820 10.290756 29,020 0%
Non-tax Qualified ............................ 1,818 10.290756 18,709 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ................................ 6,679 14.654661 97,878 20%
Non-tax Qualified ............................ 310 14.654661 4,543 20%
</TABLE>
<PAGE> 39
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Tax Qualified ................................ 1,653 20.352098 33,642 104%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ................................ 47,149 16.391038 772,821 26%
Non-tax Qualified ............................ 3,348 16.391038 54,877 26%
Nationwide SAT - Small Company Fund:
Tax Qualified ................................ 27,603 17.267747 476,642 42%
Non-tax Qualified ............................ 3,714 17.267747 64,132 42%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ................................ 34,606 23.148836 801,089 83%
Non-tax Qualified ............................ 7,117 23.148836 164,750 83%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ................................ 3,117 12.489739 38,931 (4)%
Non-tax Qualified ............................ 419 12.489739 5,233 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................ 502,732 12.684916 6,377,113 6%
Non-tax Qualified ............................ 114,438 12.684916 1,451,636 6%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ................................ 58,521 14.648600 857,251 14%
Non-tax Qualified ............................ 5,523 14.648600 80,904 14%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................ 57,486 21.426404 1,231,718 52%
Non-tax Qualified ............................ 6,612 21.426404 141,671 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ................................ 32,593 12.591929 410,409 6%
Non-tax Qualified ............................ 6,025 12.591929 75,866 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ................................ 60,543 23.954947 1,450,304 82%
Non-tax Qualified ............................ 13,307 23.954947 318,768 82%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ................................ 89,709 18.556149 1,664,654 40%
Non-tax Qualified ............................ 17,465 18.556149 324,083 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................ 45,934 14.854438 682,324 20%
Non-tax Qualified ............................ 16,741 14.854438 248,678 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ................................ 5,224 25.026598 130,739 98%
Non-tax Qualified ............................ 1,848 25.026598 46,249 98%
</TABLE>
(Continued)
<PAGE> 40
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified............................... 1,570 11.869689 18,635 20%
Non-tax Qualified........................... 44 11.869689 522 20%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified............................... 3,839 9.949557 38,196 (4)%
Non-tax Qualified........................... 223 9.949557 2,219 (4)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified............................... 2,110 12.499772 26,375 5%
Non-tax Qualified........................... 136 12.499772 1,700 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified............................... 2,131 17.529681 37,356 52%
Non-tax Qualified........................... 201 17.529681 3,523 52%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified............................... 1,939 20.760969 40,256 62%
Non-tax Qualified........................... 1,102 20.760969 22,879 62%
Asset fee @ 1.15% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified............................... 41,838 14.599165 610,800 17%
Non-tax Qualified........................... 872 14.599165 12,730 17%
American Century VP -
American Century VP International:
Tax Qualified............................... 13,984 19.557409 273,491 62%
Non-tax Qualified........................... 1,685 19.557409 32,954 62%
American Century VP -
American Century VP Value:
Tax Qualified............................... 780 11.053935 8,622 (2)%
Non-tax Qualified........................... 2,303 11.053935 25,457 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified............................... 73,377 16.437396 1,206,127 29%
Non-tax Qualified........................... 7,945 16.437396 130,595 29%
Dreyfus Stock Index Fund:
Tax Qualified............................... 191,388 14.857773 2,843,599 19%
Non-tax Qualified........................... 30,346 14.857773 450,874 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified............................... 66,469 13.648909 907,229 10%
Non-tax Qualified........................... 5,722 13.648909 78,099 10%
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified............................... 82 9.793677 803 (2)%(a)
Non-tax Qualified........................... 3,439 9.793677 33,680 (2)%(a)
</TABLE>
<PAGE> 41
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................. 30,049 12.402631 372,687 5%
Non-tax Qualified ............................. 9,774 12.402631 121,223 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ................................. 99,919 17.523903 1,750,971 36%
Non-tax Qualified ............................. 22,750 17.523903 398,669 36%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ................................. 22,133 11.248584 248,965 7%
Non-tax Qualified ............................. 4,648 11.248584 52,283 7%
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ................................. 3,415 17.160838 58,604 41%
Non-tax Qualified ............................. 252 17.160838 4,325 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ................................. 60,592 15.702687 951,457 23%
Non-tax Qualified ............................. 9,052 15.702687 142,141 23%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................. 9,541 12.675276 120,935 3%
Non-tax Qualified ............................. 5,617 12.675276 71,197 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified ................................. 110 14.571756 1,603 28%
Non-tax Qualified ............................. 191 14.571756 2,783 28%
Nationwide SAT - Balanced Fund:
Tax Qualified ................................. 6,878 10.645005 73,216 0%
Non-tax Qualified ............................. 443 10.645005 4,716 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ................................. 126,187 12.820934 1,617,835 3%
Non-tax Qualified ............................. 19,193 12.820934 246,072 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ................................. 1,743 13.873607 24,182 17%
Non-tax Qualified ............................. 835 13.873607 11,584 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ................................. 5,296 14.837408 78,579 22%
Non-tax Qualified ............................. 277 14.837408 4,110 22%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ................................. 71,434 9.509925 679,332 (3)%
Non-tax Qualified ............................. 15,177 9.509925 144,332 (3)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ................................. 958 10.545637 10,103 2%
Non-tax Qualified ............................. 428 10.545637 4,514 2%
</TABLE>
(Continued)
<PAGE> 42
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Money Market Fund:
Tax Qualified ................................ 14,690 10.462170 153,689 4%
Non-tax Qualified ............................ 3,569 10.462170 37,339 4%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ................................ 1,562 10.284262 16,064 0%
Non-tax Qualified ............................ 2,287 10.284262 23,520 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ................................ 927 14.645409 13,576 20%
Non-tax Qualified ............................ 30 14.645409 439 20%
Nationwide SAT -
Select Advisers Small Cap Growth Fund:
Tax Qualified ................................ 346 20.345317 7,039 103%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ................................ 9,141 16.380692 149,736 26%
Non-tax Qualified ............................ 1,774 16.380692 29,059 26%
Nationwide SAT - Small Company Fund:
Tax Qualified ................................ 3,239 17.256864 55,895 42%
Non-tax Qualified ............................ 6,788 17.256864 117,140 42%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ................................ 5,918 23.134244 136,908 83%
Non-tax Qualified ............................ 626 23.134244 14,482 83%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ................................ 1,129 12.481871 14,092 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................ 109,816 12.676933 1,392,130 6%
Non-tax Qualified ............................ 30,070 12.676933 381,195 6%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ................................ 11,569 14.639366 169,363 14%
Non-tax Qualified ............................ 1,080 14.639366 15,811 14%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................ 8,306 21.412911 177,856 52%
Non-tax Qualified ............................ 271 21.412911 5,803 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ................................ 12,897 12.583972 162,295 6%
Non-tax Qualified ............................ 416 12.583972 5,235 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ................................ 15,859 23.939845 379,662 81%
Non-tax Qualified ............................ 2,162 23.939845 51,758 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ................................ 22,240 18.544459 412,429 40%
Non-tax Qualified ............................ 6,950 18.544459 128,884 40%
</TABLE>
<PAGE> 43
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................ 13,715 14.845060 203,600 20%
Non-tax Qualified ............................ 3,367 14.845060 49,983 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ................................ 1,298 25.010854 32,464 98%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified ................................ 749 11.862189 8,885 20%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified ................................ 955 9.943271 9,496 (4)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified ................................ 1,740 12.491882 21,736 5%
Non-tax Qualified ............................ 1,140 12.491882 14,241 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified ................................ 39 17.518646 683 52%
Non-tax Qualified ............................ 2,167 17.518646 37,963 52%
Asset fee @ 1.20% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ................................ 390,363 14.495483 5,658,500 17%
Non-tax Qualified ............................ 453,751 14.495483 6,577,340 17%
American Century VP -
American Century VP International:
Tax Qualified ................................ 310,968 17.674116 5,496,085 62%
Non-tax Qualified ............................ 776,659 17.674116 13,726,761 62%
American Century VP -
American Century VP Value:
Tax Qualified ................................ 144,253 11.263216 1,624,753 (2)%
Non-tax Qualified ............................ 206,988 11.263216 2,331,351 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................ 211,081 16.397708 3,461,245 29%
Non-tax Qualified ............................ 352,551 16.397708 5,781,028 29%
Dreyfus Stock Index Fund:
Tax Qualified ................................ 1,214,481 14.736468 17,897,160 19%
Non-tax Qualified ............................ 2,733,494 14.736468 40,282,047 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ................................ 248,570 13.442893 3,341,500 10%
Non-tax Qualified ............................ 529,646 13.442893 7,119,975 10%
Dreyfus VIF - European Equity Fund:
Tax Qualified ................................ 9,327 12.890242 120,227 29%(a)
Non-tax Qualified ............................ 14,047 12.890242 181,069 29%(a)
</TABLE>
(Continued)
<PAGE> 44
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified ................................ 37,796 9.790385 370,037 (2)%(a)
Non-tax Qualified ............................ 71,657 9.790385 701,550 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................ 490,730 12.440601 6,104,976 5%
Non-tax Qualified ............................ 1,018,907 12.440601 12,675,815 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ................................ 1,060,518 17.653733 18,722,102 36%
Non-tax Qualified ............................ 2,167,614 17.653733 38,266,479 36%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ................................ 394,597 11.087928 4,375,263 7%
Non-tax Qualified ............................ 1,947,554 11.087928 21,594,339 7%
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ................................ 228,568 15.900927 3,634,443 41%
Non-tax Qualified ............................ 472,612 15.900927 7,514,969 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ................................ 753,984 15.457984 11,655,073 23%
Non-tax Qualified ............................ 1,358,802 15.457984 21,004,340 23%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................ 300,684 12.785954 3,844,532 3%
Non-tax Qualified ............................ 782,813 12.785954 10,009,011 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified ................................ 21,613 14.572201 314,949 28%
Non-tax Qualified ............................ 44,276 14.572201 645,199 28%
Nationwide SAT - Balanced Fund:
Tax Qualified ................................ 104,760 10.735723 1,124,674 0%
Non-tax Qualified ............................ 158,605 10.735723 1,702,739 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ................................ 288,532 12.767993 3,683,975 3%
Non-tax Qualified ............................ 668,662 12.767993 8,537,472 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ................................ 31,013 13.963829 433,060 17%
Non-tax Qualified ............................ 66,421 13.963829 927,491 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ................................ 58,262 14.267173 831,234 21%
Non-tax Qualified ............................ 151,804 14.267173 2,165,814 21%
</TABLE>
<PAGE> 45
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT -
Government Bond Fund:
Tax Qualified ............................ 446,335 9.816007 4,381,227 (4)%
Non-tax Qualified ........................ 1,049,111 9.816007 10,298,081 (4)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ............................ 71,728 10.764664 772,128 2%
Non-tax Qualified ........................ 141,476 10.764664 1,522,942 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ............................ 1,603,815 10.489614 16,823,400 4%
Non-tax Qualified ........................ 5,432,154 10.489614 56,981,199 4%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ............................ 83,987 10.510552 882,750 0%
Non-tax Qualified ........................ 292,600 10.510552 3,075,388 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ............................ 26,844 14.644558 393,119 19%
Non-tax Qualified ........................ 56,268 14.644558 824,020 19%
Nationwide SAT -
Select Advisers Small Cap Growth Fund:
Tax Qualified ............................ 29,934 20.338511 608,813 103%(a)
Non-tax Qualified ........................ 40,321 20.338511 820,069 103%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ............................ 73,887 15.896867 1,174,572 26%
Non-tax Qualified ........................ 228,412 15.896867 3,631,035 26%
Nationwide SAT - Small Company Fund:
Tax Qualified ............................ 105,198 17.099098 1,798,791 42%
Non-tax Qualified ........................ 624,875 17.099098 10,684,799 42%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ............................ 96,278 22.750997 2,190,420 83%
Non-tax Qualified ........................ 201,108 22.750997 4,575,408 83%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ............................ 16,167 11.949113 193,181 (4)%
Non-tax Qualified ........................ 23,436 11.949113 280,039 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified ............................ 347,616 12.646339 4,396,070 6%
Non-tax Qualified ........................ 697,017 12.646339 8,814,713 6%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ............................ 127,606 13.976229 1,783,451 14%
Non-tax Qualified ........................ 282,638 13.976229 3,950,213 14%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ............................ 124,678 20.834304 2,597,579 52%
Non-tax Qualified ........................ 324,267 20.834304 6,755,877 52%
</TABLE>
(Continued)
<PAGE> 46
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ............................... 93,733 12.539993 1,175,411 6%
Non-tax Qualified ........................... 219,432 12.539993 2,751,676 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ............................... 87,884 23.512658 2,066,386 81%
Non-tax Qualified ........................... 858,422 23.512658 20,183,783 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ............................... 202,090 17.848621 3,607,028 40%
Non-tax Qualified ........................... 434,906 17.848621 7,762,472 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ............................... 231,091 14.609212 3,376,057 20%
Non-tax Qualified ........................... 615,542 14.609212 8,992,584 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ............................... 48,845 23.947713 1,169,726 98%
Non-tax Qualified ........................... 117,449 23.947713 2,812,635 98%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified ............................... 37,006 12.649846 468,120 20%
Non-tax Qualified ........................... 53,488 12.649846 676,615 20%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified ............................... 41,224 10.253920 422,708 (5)%
Non-tax Qualified ........................... 113,232 10.253920 1,161,072 (5)%
Victory VIF - Diversified Stock Fund -
Class A:
Tax Qualified ............................... 69,363 10.060160 697,803 1%(a)
Non-tax Qualified ........................... 219,452 10.060160 2,207,722 1%(a)
Victory VIF - Investment Quality Bond
Fund - Class A:
Tax Qualified ............................... 21,371 9.930934 212,234 (1)%(a)
Non-tax Qualified ........................... 50,141 9.930934 497,947 (1)%(a)
Victory VIF - Small Company
Opportunity Fund - Class A:
Tax Qualified ............................... 2,419 9.896766 23,940 (1)%(a)
Non-tax Qualified ........................... 33,474 9.896766 331,284 (1)%(a)
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified .................................. 40,679 12.269490 499,111 5%
Non-tax Qualified ........................... 35,459 12.269490 435,064 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified ............................... 56,396 16.374564 923,460 52%
Non-tax Qualified ........................... 319,083 16.374564 5,224,845 52%
</TABLE>
<PAGE> 47
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified ................................ 23,863 20.579437 491,087 62%
Non-tax Qualified ............................ 51,497 20.579437 1,059,779 62%
Asset fee @ 1.25% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ................................ 32,451 14.485724 470,076 17%
Non-tax Qualified ............................ 73,685 14.485724 1,067,381 17%
American Century VP -
American Century VP International:
Tax Qualified ................................ 16,086 17.662250 284,115 62%
Non-tax Qualified ............................ 39,926 17.662250 705,183 62%
American Century VP -
American Century VP Value:
Tax Qualified ................................ 10,844 11.255628 122,056 (2)%
Non-tax Qualified ............................ 28,843 11.255628 324,646 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................ 23,551 16.386683 385,923 28%
Non-tax Qualified ............................ 24,892 16.386683 407,897 28%
Dreyfus Stock Index Fund:
Tax Qualified ................................ 115,398 14.726559 1,699,415 19%
Non-tax Qualified ............................ 168,383 14.726559 2,479,702 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ................................ 17,550 13.433832 235,764 10%
Non-tax Qualified ............................ 32,907 13.433832 442,067 10%
Dreyfus VIF - European Equity Fund:
Tax Qualified ................................ 2,408 12.888550 31,036 29%(a)
Non-tax Qualified ............................ 83 12.888550 1,070 29%(a)
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified ................................ 407 9.787093 3,983 (2)%(a)
Non-tax Qualified ............................ 441 9.787093 4,316 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................ 53,847 12.432231 669,438 5%
Non-tax Qualified ............................ 113,198 12.432231 1,407,304 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ................................ 67,791 17.641868 1,195,960 36%
Non-tax Qualified ............................ 131,571 17.641868 2,321,158 36%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ................................ 21,064 11.080460 233,399 7%
Non-tax Qualified ............................ 37,233 11.080460 412,559 7%
</TABLE>
(Continued)
<PAGE> 48
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ................................. 6,292 15.890221 99,981 41%
Non-tax Qualified ............................. 47,996 15.890221 762,667 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ................................. 46,664 15.447579 720,846 23%
Non-tax Qualified ............................. 87,382 15.447579 1,349,840 23%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................. 21,257 12.777351 271,608 3%
Non-tax Qualified ............................. 33,643 12.777351 429,868 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified ................................. 164 14.562396 2,388 28%
Non-tax Qualified ............................. 315 14.562396 4,587 28%
Nationwide SAT - Balanced Fund:
Tax Qualified ................................. 3,364 10.728485 36,091 0%
Non-tax Qualified ............................. 12,442 10.728485 133,484 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ................................. 44,120 12.759401 562,945 3%
Non-tax Qualified ............................. 38,127 12.759401 486,478 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ................................. 1,513 13.954430 21,113 17%
Non-tax Qualified ............................. 2,255 13.954430 31,467 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ................................. 1,280 14.257588 18,250 21%
Non-tax Qualified ............................. 16,120 14.257588 229,832 21%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ................................. 31,768 9.809384 311,625 (4)%
Non-tax Qualified ............................. 45,842 9.809384 449,682 (4)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ................................. 2,505 10.757403 26,947 2%
Non-tax Qualified ............................. 9,925 10.757403 106,767 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ................................. 114,913 10.482530 1,204,579 4%
Non-tax Qualified ............................. 84,738 10.482530 888,269 4%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ................................. 182 10.503468 1,912 0%
Non-tax Qualified ............................. 3,903 10.503468 40,995 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ................................. 82 14.634711 1,200 19%
Non-tax Qualified ............................. 3,058 14.634711 44,753 19%
</TABLE>
<PAGE> 49
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Tax Qualified .................................. 681 20.331712 13,846 103%(a)
Non-tax Qualified .............................. 3,667 20.331712 74,556 103%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified .................................. 8,738 15.886176 138,813 26%
Non-tax Qualified .............................. 7,074 15.886176 112,379 26%
Nationwide SAT - Small Company Fund:
Tax Qualified .................................. 5,336 17.087592 91,179 42%
Non-tax Qualified .............................. 15,997 17.087592 273,350 42%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified .................................. 10,320 22.735718 234,633 82%
Non-tax Qualified .............................. 26,153 22.735718 594,607 82%
Nationwide SAT - Strategic Value Fund:
Non-tax Qualified .............................. 6,717 11.941061 80,208 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified .................................. 60,863 12.637807 769,175 6%
Non-tax Qualified .............................. 40,210 12.637807 508,166 6%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified .................................. 5,731 13.966839 80,044 13%
Non-tax Qualified .............................. 8,235 13.966839 115,017 13%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified .................................. 7,129 20.820318 148,428 52%
Non-tax Qualified .............................. 21,720 20.820318 452,217 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified .................................. 5,718 12.531553 71,655 6%
Non-tax Qualified .............................. 31,254 12.531553 391,661 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified .................................. 13,081 23.496887 307,363 81%
Non-tax Qualified .............................. 35,413 23.496887 832,095 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified .................................. 15,853 17.836627 282,764 40%
Non-tax Qualified .............................. 38,019 17.836627 678,131 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified .................................. 26,462 14.599387 386,329 20%
Non-tax Qualified .............................. 74,917 14.599387 1,093,742 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified .................................. 2,640 23.931619 63,179 98%
Non-tax Qualified .............................. 7,039 23.931619 168,455 98%
</TABLE>
(Continued)
<PAGE> 50
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified ................................ 57 12.641312 721 19%
Non-tax Qualified ............................ 695 12.641312 8,786 19%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified ................................ 1,283 10.247016 13,147 (5)%
Non-tax Qualified ............................ 557 10.247016 5,708 (5)%
Victory VIF - Diversified Stock Fund -
Class A:
Non-tax Qualified ............................ 4,891 10.057633 49,192 1%(a)
Victory VIF - Investment Quality
Bond Fund - Class A:
Non-tax Qualified ............................ 883 9.928452 8,767 (1)%(a)
Victory VIF - Small Company
Opportunity Fund - Class A:
Non-tax Qualified ............................ 772 9.894290 7,638 (1)%(a)
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified ................................ 3,436 12.261224 42,130 5%
Non-tax Qualified ............................ 1,916 12.261224 23,493 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified ................................ 18,145 16.363554 296,917 52%
Non-tax Qualified ............................ 7,363 16.363554 120,485 52%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified ................................ 3,938 20.565582 80,987 61%
Non-tax Qualified ............................ 175 20.565582 3,599 61%
Asset fee @ 1.30% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ................................ 107,904 14.475981 1,562,016 16%
Non-tax Qualified ............................ 108,159 14.475981 1,565,708 16%
American Century VP -
American Century VP International:
Tax Qualified ................................ 72,753 17.650383 1,284,118 62%
Non-tax Qualified ............................ 110,844 17.650383 1,956,439 62%
American Century VP -
American Century VP Value:
Tax Qualified ................................ 12,775 11.248045 143,694 (2)%
Non-tax Qualified ............................ 28,730 11.248045 323,156 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................ 66,205 16.375662 1,084,151 28%
Non-tax Qualified ............................ 61,114 16.375662 1,000,782 28%
</TABLE>
<PAGE> 51
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Dreyfus Stock Index Fund:
Tax Qualified ............................. 684,723 14.716647 10,076,827 19%
Non-tax Qualified ......................... 1,041,506 14.716647 15,327,476 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ............................. 124,739 13.424790 1,674,595 10%
Non-tax Qualified ......................... 114,009 13.424790 1,530,547 10%
Dreyfus VIF - European Equity Fund:
Tax Qualified ............................. 1,134 12.886864 14,614 29%(a)
Non-tax Qualified ......................... 3,490 12.886864 44,975 29%(a)
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified ............................. 19,483 9.783812 190,618 (2)%(a)
Non-tax Qualified ......................... 15,280 9.783812 149,497 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ............................. 173,109 12.423854 2,150,681 5%
Non-tax Qualified ......................... 182,235 12.423854 2,264,061 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ............................. 348,114 17.630000 6,137,250 36%
Non-tax Qualified ......................... 551,381 17.630000 9,720,847 36%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ............................. 132,077 11.072984 1,462,487 7%
Non-tax Qualified ......................... 147,420 11.072984 1,632,379 7%
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ............................. 86,682 15.879549 1,376,471 41%
Non-tax Qualified ......................... 124,203 15.879549 1,972,288 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ............................. 198,360 15.437189 3,062,121 23%
Non-tax Qualified ......................... 274,482 15.437189 4,237,231 23%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ............................. 89,914 12.768758 1,148,090 3%
Non-tax Qualified ......................... 105,265 12.768758 1,344,103 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified ............................. 3,978 14.552579 57,890 28%
Non-tax Qualified ......................... 6,216 14.552579 90,459 28%
Nationwide SAT - Balanced Fund:
Tax Qualified ............................. 17,631 10.721257 189,026 0%
Non-tax Qualified ......................... 45,688 10.721257 489,833 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ............................. 104,562 12.750810 1,333,250 3%
Non-tax Qualified ......................... 341,164 12.750810 4,350,117 3%
</TABLE>
(Continued)
<PAGE> 52
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Equity Income Fund:
Tax Qualified ............................. 7,226 13.945030 100,767 17%
Non-tax Qualified ......................... 19,226 13.945030 268,107 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ............................. 46,323 14.247974 660,009 21%
Non-tax Qualified ......................... 71,266 14.247974 1,015,396 21%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ............................. 247,182 9.802780 2,423,071 (4)%
Non-tax Qualified ......................... 321,361 9.802780 3,150,231 (4)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ............................. 46,078 10.750149 495,345 2%
Non-tax Qualified ......................... 70,255 10.750149 755,252 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ............................. 1,182,057 10.475448 12,382,577 3%
Non-tax Qualified ......................... 1,157,296 10.475448 12,123,194 3%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ............................. 48,359 10.496386 507,595 0%
Non-tax Qualified ......................... 61,675 10.496386 647,365 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ............................. 2,041 14.624858 29,849 19%
Non-tax Qualified ......................... 8,874 14.624858 129,781 19%
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Tax Qualified ............................. 4,379 20.324927 89,003 103%(a)
Non-tax Qualified ......................... 8,148 20.324927 165,608 103%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ............................. 30,908 15.875478 490,679 26%
Non-tax Qualified ......................... 61,322 15.875478 973,516 26%
Nationwide SAT - Small Company Fund:
Tax Qualified ............................. 21,696 17.076087 370,483 42%
Non-tax Qualified ......................... 31,159 17.076087 532,074 42%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ............................. 57,952 22.720430 1,316,694 82%
Non-tax Qualified ......................... 103,969 22.720430 2,362,220 82%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ............................. 8,003 11.933031 95,500 (4)%
Non-tax Qualified ......................... 9,946 11.933031 118,686 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified ............................. 180,091 12.629301 2,274,423 6%
Non-tax Qualified ......................... 176,065 12.629301 2,223,578 6%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ............................. 61,265 13.957433 855,102 13%
Non-tax Qualified ......................... 40,640 13.957433 567,230 13%
</TABLE>
<PAGE> 53
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ............................... 29,312 20.806301 609,874 52%
Non-tax Qualified ........................... 44,345 20.806301 922,655 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ............................... 47,275 12.523110 592,030 6%
Non-tax Qualified ........................... 36,245 12.523110 453,900 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ............................... 45,369 23.481073 1,065,313 81%
Non-tax Qualified ........................... 63,400 23.481073 1,488,700 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ............................... 155,303 17.824624 2,768,218 40%
Non-tax Qualified ........................... 170,308 17.824624 3,035,676 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ............................... 75,394 14.589572 1,099,966 20%
Non-tax Qualified ........................... 111,371 14.589572 1,624,855 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ............................... 11,607 23.915562 277,588 98%
Non-tax Qualified ........................... 22,452 23.915562 536,952 98%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified .................................. 21,175 12.632809 267,500 19%
Non-tax Qualified ........................... 15,744 12.632809 198,891 19%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified ............................... 3,301 10.240102 33,803 (5)%
Non-tax Qualified ........................... 10,725 10.240102 109,825 (5)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified ............................... 2,960 12.252980 36,269 5%
Non-tax Qualified ........................... 12,757 12.252980 156,311 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified ............................... 3,141 16.352558 51,363 51%
Non-tax Qualified ........................... 15,682 16.352558 256,441 51%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified ............................... 5,441 20.551766 111,822 61%
Non-tax Qualified ........................... 2,687 20.551766 55,223 61%
Asset fee @ 1.35% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ............................... 21,978 14.562313 320,051 16%
Non-tax Qualified ........................... 41,898 14.562313 610,132 16%
</TABLE>
(Continued)
<PAGE> 54
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP International:
Tax Qualified ............................. 4,011 19.508116 78,247 62%
Non-tax Qualified ......................... 11,717 19.508116 228,577 62%
American Century VP -
American Century VP Value:
Tax Qualified ............................. 2,318 11.026014 25,558 (2)%
Non-tax Qualified ......................... 4,673 11.026014 51,525 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ............................. 24,037 16.395915 394,109 28%
Non-tax Qualified ......................... 17,768 16.395915 291,323 28%
Dreyfus Stock Index Fund:
Tax Qualified ............................. 65,993 14.820270 978,034 19%
Non-tax Qualified ......................... 129,850 14.820270 1,924,412 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ............................. 987 13.614453 13,437 10%
Non-tax Qualified ......................... 9,554 13.614453 130,072 10%
Dreyfus VIF - European Equity Fund:
Tax Qualified ............................. 1,169 12.885161 15,063 29%(a)
Non-tax Qualified ......................... 520 12.885161 6,700 29%(a)
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified ............................. 1,186 9.780523 11,600 (2)%(a)
Non-tax Qualified ......................... 4,341 9.780523 42,457 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ............................. 16,260 12.371310 201,158 5%
Non-tax Qualified ......................... 53,639 12.371310 663,585 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ............................. 31,835 17.479679 556,466 35%
Non-tax Qualified ......................... 80,540 17.479679 1,407,813 35%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ............................. 15,278 11.220168 171,422 7%
Non-tax Qualified ......................... 31,375 11.220168 352,033 7%
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ............................. 16,878 17.117558 288,910 41%
Non-tax Qualified ......................... 15,165 17.117558 259,588 41%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ............................. 14,384 15.663065 225,298 22%
Non-tax Qualified ......................... 65,942 15.663065 1,032,854 22%
</TABLE>
<PAGE> 55
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ............................... 4,087 12.643267 51,673 3%
Non-tax Qualified ........................... 32,098 12.643267 405,824 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Non-tax Qualified ........................... 676 14.534982 9,826 28%
Nationwide SAT - Balanced Fund:
Tax Qualified ............................... 7,484 10.618109 79,466 0%
Non-tax Qualified ........................... 10,580 10.618109 112,340 0%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ............................... 30,426 12.788549 389,104 3%
Non-tax Qualified ........................... 21,206 12.788549 271,194 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ............................... 898 13.838584 12,427 17%
Non-tax Qualified ........................... 3,836 13.838584 53,085 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ............................... 5,540 14.799960 81,992 21%
Non-tax Qualified ........................... 8,676 14.799960 128,404 21%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ............................... 21,775 9.485894 206,555 (4)%
Non-tax Qualified ........................... 88,782 9.485894 842,177 (4)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ............................... 7,431 10.519004 78,167 2%
Non-tax Qualified ........................... 8,672 10.519004 91,221 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ............................... 53,049 10.435669 553,602 3%
Non-tax Qualified ........................... 206,770 10.435669 2,157,783 3%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ............................... 4,503 10.258279 46,193 0%
Non-tax Qualified ........................... 10,846 10.258279 111,261 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ............................... 1,785 14.608445 26,076 19%
Non-tax Qualified ........................... 1,200 14.608445 17,530 19%
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Tax Qualified ............................... 373 20.318124 7,579 103%(a)
Non-tax Qualified ........................... 63 20.318124 1,280 103%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ............................... 1,206 16.339365 19,705 26%
Non-tax Qualified ........................... 11,351 16.339365 185,468 26%
Nationwide SAT - Small Company Fund:
Tax Qualified ............................... 6,539 17.213333 112,558 42%
Non-tax Qualified ........................... 6,103 17.213333 105,053 42%
</TABLE>
(Continued)
<PAGE> 56
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ................................ 427 23.075929 9,853 82%
Non-tax Qualified ............................ 7,750 23.075929 178,838 82%
Nationwide SAT - Strategic Value Fund:
Non-tax Qualified ............................ 5,161 12.450334 64,256 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................ 23,816 12.644908 301,151 5%
Non-tax Qualified ............................ 35,963 12.644908 454,749 5%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ................................ 5,332 14.602403 77,860 13%
Non-tax Qualified ............................ 8,307 14.602403 121,302 13%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................ 3,548 21.358908 75,781 52%
Non-tax Qualified ............................ 7,645 21.358908 163,289 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ................................ 5,745 12.552194 72,112 6%
Non-tax Qualified ............................ 27,019 12.552194 339,148 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ................................ 1,068 23.879534 25,503 81%
Non-tax Qualified ............................ 1,635 23.879534 39,043 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ................................ 7,034 18.497677 130,113 40%
Non-tax Qualified ............................ 35,537 18.497677 657,352 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................ 4,550 14.807604 67,375 20%
Non-tax Qualified ............................ 11,754 14.807604 174,049 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ................................ 4,785 24.947866 119,376 98%
Non-tax Qualified ............................ 5,229 24.947866 130,452 98%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified ................................ 362 11.832203 4,283 19%
Non-tax Qualified ............................ 3,217 11.832203 38,064 19%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified ................................ 439 9.918143 4,354 (5)%
Non-tax Qualified ............................ 2,722 9.918143 26,997 (5)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Non-tax Qualified ............................ 666 12.460330 8,299 5%
</TABLE>
<PAGE> 57
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified .............................. 631 17.474463 11,026 51%
Non-tax Qualified .......................... 3,077 17.474463 53,769 51%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified .............................. 1,481 20.695562 30,650 61%
Non-tax Qualified .......................... 1,853 20.695562 38,349 61%
Asset fee @ 1.40% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified .............................. 6,866 14.553111 99,922 16%
Non-tax Qualified .......................... 1,803 14.553111 26,239 16%
American Century VP -
American Century VP International:
Tax Qualified .............................. 5,609 19.495801 109,352 62%
Non-tax Qualified .......................... 2,055 19.495801 40,064 62%
American Century VP -
American Century VP Value:
Tax Qualified .............................. 5,362 11.019041 59,084 (2)%
Non-tax Qualified .......................... 2,563 11.019041 28,242 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified .............................. 2,832 16.385550 46,404 28%
Non-tax Qualified .......................... 4,225 16.385550 69,229 28%
Dreyfus Stock Index Fund:
Tax Qualified .............................. 58,371 14.810885 864,526 19%
Non-tax Qualified .......................... 14,182 14.810885 210,048 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified .............................. 19,504 13.605834 265,368 10%
Non-tax Qualified .......................... 3,244 13.605834 44,137 10%
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified .............................. 8 9.777237 78 (2)%(a)
Non-tax Qualified .......................... 174 9.777237 1,701 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified .............................. 12,284 12.363474 151,873 5%
Non-tax Qualified .......................... 7,210 12.363474 89,141 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified .............................. 33,817 17.468631 590,737 35%
Non-tax Qualified .......................... 11,807 17.468631 206,252 35%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified .............................. 1,729 11.213084 19,387 7%
Non-tax Qualified .......................... 5,530 11.213084 62,008 7%
</TABLE>
(Continued)
<PAGE> 58
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified .............................. 730 17.106743 12,488 40%
Non-tax Qualified .......................... 1,826 17.106743 31,237 40%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified .............................. 13,606 15.653161 212,977 22%
Non-tax Qualified .......................... 5,351 15.653161 83,760 22%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified .............................. 8,255 12.635267 104,304 3%
Non-tax Qualified .......................... 2,412 12.635267 30,476 3%
Nationwide SAT - Balanced Fund:
Tax Qualified .............................. 2,247 10.611396 23,844 (1)%
Non-tax Qualified .......................... 317 10.611396 3,364 (1)%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified .............................. 31,154 12.780450 398,162 3%
Non-tax Qualified .......................... 15,231 12.780450 194,659 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified .............................. 654 13.829829 9,045 17%
Non-tax Qualified .......................... 1,566 13.829829 21,658 17%
Nationwide SAT - Global Equity Fund:
Non-tax Qualified .......................... 1,502 14.790595 22,215 21%
Nationwide SAT -
Government Bond Fund:
Tax Qualified .............................. 5,335 9.479885 50,575 (4)%
Non-tax Qualified .......................... 2,731 9.479885 25,890 (4)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified .............................. 2,780 10.512337 29,224 2%
Non-tax Qualified .......................... 84 10.512337 883 2%
Nationwide SAT - Money Market Fund:
Tax Qualified .............................. 4,154 10.429048 43,322 3%
Non-tax Qualified .......................... 1,374 10.429048 14,330 3%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified .............................. 935 10.251777 9,585 0%
Non-tax Qualified .......................... 68 10.251777 697 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified .............................. 871 14.599208 12,716 19%
Nationwide SAT - Small Cap Value Fund:
Tax Qualified .............................. 1,066 16.329040 17,407 26%
Non-tax Qualified .......................... 1,813 16.329040 29,605 26%
Nationwide SAT - Small Company Fund:
Tax Qualified .............................. 1,566 17.202461 26,939 42%
</TABLE>
<PAGE> 59
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ................................ 2,853 23.061361 65,794 82%
Non-tax Qualified ............................ 540 23.061361 12,453 82%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ................................ 2,417 12.442449 30,073 (4)%
Non-tax Qualified ............................ 981 12.442449 12,206 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................ 53,495 12.636905 676,011 5%
Non-tax Qualified ............................ 17,353 12.636905 219,288 5%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ................................ 1,157 14.593171 16,884 13%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................ 4,508 21.345408 96,225 52%
Non-tax Qualified ............................ 1,022 21.345408 21,815 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ................................ 4,022 12.544255 50,453 6%
Non-tax Qualified ............................ 752 12.544255 9,433 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ................................ 2,253 23.864429 53,767 81%
Non-tax Qualified ............................ 2,302 23.864429 54,936 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ................................ 11,468 18.485985 211,997 40%
Non-tax Qualified ............................ 6,224 18.485985 115,057 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................ 16,970 14.798240 251,126 20%
Non-tax Qualified ............................ 5,156 14.798240 76,300 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ................................ 1,166 24.932117 29,071 97%
Non-tax Qualified ............................ 592 24.932117 14,760 97%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified ................................ 2,497 11.824722 29,526 19%
Non-tax Qualified ............................ 221 11.824722 2,613 19%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax Qualified ................................ 250 9.911855 2,478 (5)%
Non-tax Qualified ............................ 889 9.911855 8,812 (5)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified ................................ 4,826 12.452445 60,095 5%
</TABLE>
(Continued)
<PAGE> 60
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURNL(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified ................................ 451 17.463426 7,876 51%
Non-tax Qualified ............................ 202 17.463426 3,528 51%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax Qualified ................................ 980 20.682481 20,269 61%
Non-tax Qualified ............................ 179 20.682481 3,702 61%
Asset fee @ 1.45% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ................................ 414 14.543892 6,021 16%
Non-tax Qualified ............................ 2,924 14.543892 42,526 16%
American Century VP -
American Century VP International:
Tax Qualified ................................ 2,509 19.483474 48,884 62%
Non-tax Qualified ............................ 3,787 19.483474 73,784 62%
American Century VP -
American Century VP Value:
Tax Qualified ................................ 1,405 11.012072 15,472 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................ 4,973 16.375184 81,434 28%
Non-tax Qualified ............................ 12,145 16.375184 198,877 28%
Dreyfus Stock Index Fund:
Tax Qualified ................................ 24,817 14.801530 367,330 19%
Non-tax Qualified ............................ 33,993 14.801530 503,148 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ................................ 4,035 13.597232 54,865 10%
Non-tax Qualified ............................ 2,220 13.597232 30,186 10%
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified ................................ 52 9.773948 508 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................ 6,732 12.355641 83,178 5%
Non-tax Qualified ............................ 20,584 12.355641 254,329 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ................................ 11,174 17.457597 195,071 35%
Non-tax Qualified ............................ 11,399 17.457597 198,999 35%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ................................ 1,302 11.205978 14,590 7%
Non-tax Qualified ............................ 1,902 11.205978 21,314 7%
</TABLE>
<PAGE> 61
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ............................... 1,185 17.095933 20,259 40%
Non-tax Qualified ........................... 320 17.095933 5,471 40%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ............................... 5,156 15.643260 80,657 22%
Non-tax Qualified ........................... 2,495 15.643260 39,030 22%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ............................... 848 12.627255 10,708 3%
Non-tax Qualified ........................... 635 12.627255 8,018 3%
Nationwide SAT - Balanced Fund:
Tax Qualified ............................... 3,235 10.604669 34,306 (1)%
Non-tax Qualified ........................... 1,697 10.604669 17,996 (1)%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ............................... 5,318 12.772360 67,923 3%
Non-tax Qualified ........................... 8,223 12.772360 105,027 3%
Nationwide SAT - Equity Income Fund:
Non-tax Qualified ........................... 230 13.821079 3,179 17%
Nationwide SAT - Global Equity Fund:
Tax Qualified ............................... 1,409 14.781243 20,827 21%
Non-tax Qualified ........................... 298 14.781243 4,405 21%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ............................... 2,805 9.473867 26,574 (4)%
Non-tax Qualified ........................... 25,195 9.473867 238,694 (4)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ............................... 1,761 10.505688 18,501 2%
Non-tax Qualified ........................... 522 10.505688 5,484 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ............................... 17,714 10.422427 184,623 3%
Non-tax Qualified ........................... 9,674 10.422427 100,827 3%
Nationwide SAT -
Multi Sector Bond Fund:
Tax Qualified ............................... 332 10.245290 3,401 0%
Non-tax Qualified ........................... 414 10.245290 4,242 0%
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Tax Qualified ............................... 1,671 20.304522 33,929 103%(a)
Non-tax Qualified ........................... 199 20.304522 4,041 103%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ............................... 2,229 16.318704 36,374 26%
Non-tax Qualified ........................... 722 16.318704 11,782 26%
Nationwide SAT - Small Company Fund:
Tax Qualified ............................... 735 17.191574 12,636 42%
Non-tax Qualified ........................... 107 17.191574 1,839 42%
</TABLE>
(Continued)
<PAGE> 62
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ................................. 4,278 23.046789 98,594 82%
Non-tax Qualified ............................. 909 23.046789 20,950 82%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ................................. 2,281 12.434581 28,363 (4)%
Non-tax Qualified ............................. 644 12.434581 8,008 (4)%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................. 15,219 12.628895 192,199 5%
Non-tax Qualified ............................. 29,418 12.628895 371,517 5%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax Qualified ................................. 1,068 14.583938 15,576 13%
Non-tax Qualified ............................. 416 14.583938 6,067 13%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................. 1,230 21.331920 26,238 52%
Non-tax Qualified ............................. 1,717 21.331920 36,627 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ................................. 4,900 12.536312 61,428 6%
Non-tax Qualified ............................. 1,254 12.536312 15,721 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ................................. 1,448 23.849355 34,534 81%
Non-tax Qualified ............................. 24,213 23.849355 577,464 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ................................. 3,780 18.474301 69,833 40%
Non-tax Qualified ............................. 167 18.474301 3,085 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................. 6,006 14.788879 88,822 20%
Non-tax Qualified ............................. 5,080 14.788879 75,128 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Non-tax Qualified ............................. 15,963 24.916384 397,740 97%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified ................................. 175 11.817233 2,068 19%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified ................................. 576 17.452381 10,053 51%
Non-tax Qualified ............................. 160 17.452381 2,792 51%
</TABLE>
<PAGE> 63
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Asset fee @ 1.50% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ................................ 3,663 14.534695 53,241 16%
Non-tax Qualified ............................ 6,265 14.534695 91,060 16%
American Century VP -
American Century VP International:
Tax Qualified ................................ 8,561 19.471172 166,693 62%
Non-tax Qualified ............................ 26,531 19.471172 516,590 62%
American Century VP -
American Century VP Value:
Tax Qualified ................................ 3,088 11.005082 33,984 (2)%
Non-tax Qualified ............................ 4,545 11.005082 50,018 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................ 4,710 16.364824 77,078 28%
Non-tax Qualified ............................ 6,899 16.364824 112,901 28%
Dreyfus Stock Index Fund:
Tax Qualified ................................ 23,916 14.792159 353,769 19%
Non-tax Qualified ............................ 161,203 14.792159 2,384,540 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ................................ 4,670 13.588614 63,459 10%
Non-tax Qualified ............................ 13,830 13.588614 187,931 10%
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax Qualified ................................ 836 9.770666 8,168 (2)%(a)
Non-tax Qualified ............................ 709 9.770666 6,927 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................ 6,909 12.347825 85,311 5%
Non-tax Qualified ............................ 22,337 12.347825 275,813 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ................................ 14,697 17.446540 256,412 35%
Non-tax Qualified ............................ 48,559 17.446540 847,187 35%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ................................ 5,498 11.198884 61,571 6%
Non-tax Qualified ............................ 5,829 11.198884 65,278 6%
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ................................ 5,314 17.085125 90,790 40%
Non-tax Qualified ............................ 5,076 17.085125 86,724 40%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ................................ 13,326 15.633362 208,330 22%
Non-tax Qualified ............................ 46,095 15.633362 720,620 22%
</TABLE>
(Continued)
<PAGE> 64
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................ 1,253 12.619265 15,812 3%
Non-tax Qualified ............................ 10,842 12.619265 136,818 3%
Nationwide SAT - Balanced Fund:
Tax Qualified ................................ 1,182 10.597955 12,527 (1)%
Non-tax Qualified ............................ 5,274 10.597955 55,894 (1)%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ................................ 8,204 12.764281 104,718 3%
Non-tax Qualified ............................ 21,195 12.764281 270,539 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ................................ 3,142 13.812331 43,398 17%
Non-tax Qualified ............................ 506 13.812331 6,989 17%
Nationwide SAT - Global Equity Fund:
Non-tax Qualified ............................ 2,864 14.771891 42,307 21%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ................................ 594 9.467860 5,624 (4)%
Non-tax Qualified ............................ 15,319 9.467860 145,038 (4)%
Nationwide SAT -
High Income Bond Fund:
Tax Qualified ................................ 1,397 10.499020 14,667 2%
Non-tax Qualified ............................ 4,971 10.499020 52,191 2%
Nationwide SAT - Money Market Fund:
Tax Qualified ................................ 27,321 10.415808 284,570 3%
Non-tax Qualified ............................ 71,293 10.415808 742,574 3%
Nationwide SAT -
Multi Sector Bond Fund:
Non-tax Qualified ............................ 510 10.238786 5,222 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ................................ 95 14.580726 1,385 19%
Non-tax Qualified ............................ 828 14.580726 12,073 19%
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Non-tax Qualified ............................ 15,068 20.297724 305,846 103%(a)
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ................................ 1,330 16.308373 21,690 26%
Non-tax Qualified ............................ 12,715 16.308373 207,361 26%
Nationwide SAT - Small Company Fund:
Tax Qualified ................................ 1,878 17.180698 32,265 42%
Non-tax Qualified ............................ 5,539 17.180698 95,164 42%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ................................ 2,548 23.032196 58,686 82%
Non-tax Qualified ............................ 14,951 23.032196 344,354 82%
</TABLE>
<PAGE> 65
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Strategic Value Fund:
Tax Qualified ................................. 6,036 12.426696 75,008 (5)%
Non-tax Qualified ............................. 415 12.426696 5,157 (5)%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................. 4,117 12.620906 51,960 5%
Non-tax Qualified ............................. 13,709 12.620906 173,020 5%
Neuberger & Berman AMT -
Guardian Portfolio:
Non-tax Qualified ............................. 4,796 14.574691 69,900 13%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................. 2,024 21.318413 43,148 52%
Non-tax Qualified ............................. 5,716 21.318413 121,856 52%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ................................. 14 12.528364 175 6%
Non-tax Qualified ............................. 3,727 12.528364 46,693 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ................................. 1,951 23.834283 46,501 81%
Non-tax Qualified ............................. 21,397 23.834283 509,982 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ................................. 10,109 18.462618 186,639 40%
Non-tax Qualified ............................. 11,501 18.462618 212,339 40%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................. 6,327 14.779520 93,510 20%
Non-tax Qualified ............................. 11,838 14.779520 174,960 20%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Non-tax Qualified ............................. 338 24.900624 8,416 97%
Van Eck WIT -
Worldwide Hard Assets Fund:
Non-tax Qualified ............................. 296 11.809742 3,496 19%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Non-tax Qualified ............................. 414 9.899304 4,098 (5)%
Victory VIF - Diversified Stock Fund -
Class A:
Tax Qualified ................................. 1,414 10.045034 14,204 0%(a)
Non-tax Qualified ............................. 3,685 10.045034 37,016 0%(a)
Victory VIF - Investment Quality
Bond Fund - Class A:
Tax Qualified ................................. 390 9.916014 3,867 (1)%(a)
Victory VIF - Small Company
Opportunity Fund - Class A:
Tax Qualified ................................. 208 9.881888 2,055 (1)%(a)
Non-tax Qualified ............................. 638 9.881888 6,305 (1)%(a)
</TABLE>
(Continued)
<PAGE> 66
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified ................................. 88 12.436688 1,094 5%
Non-tax Qualified ............................. 3,500 12.436688 43,528 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax Qualified ................................. 455 17.441358 7,936 51%
Non-tax Qualified ............................. 1,102 17.441358 19,220 51%
Asset fee @ 1.55% rate:
American Century VP -
American Century VP International:
Non-tax Qualified ............................. 175 19.458849 3,405 62%
American Century VP -
American Century VP Value:
Tax Qualified ................................. 3,076 10.998104 33,830 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................. 90 16.354471 1,472 28%
Non-tax Qualified ............................. 90 16.354471 1,472 28%
Dreyfus Stock Index Fund:
Tax Qualified ................................. 2,465 14.782794 36,440 19%
Non-tax Qualified ............................. 1,115 14.782794 16,483 19%
Dreyfus VIF -
Capital Appreciation Portfolio:
Non-tax Qualified ............................. 337 13.580004 4,576 10%
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................. 2,679 12.339995 33,059 5%
Non-tax Qualified ............................. 3,242 12.339995 40,006 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ................................. 2,316 17.435504 40,381 35%
Non-tax Qualified ............................. 405 17.435504 7,061 35%
Fidelity VIP - High Income Portfolio -
Service Class:
Non-tax Qualified ............................. 718 11.191773 8,036 6%
Fidelity VIP - Overseas Portfolio -
Service Class:
Non-tax Qualified ............................. 190 17.074312 3,244 40%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ................................. 3,468 15.623458 54,182 22%
Non-tax Qualified ............................. 873 15.623458 13,639 22%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................. 3,980 12.611273 50,193 3%
</TABLE>
<PAGE> 67
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ................................ 4,822 12.756184 61,510 3%
Non-tax Qualified ............................ 1,555 12.756184 19,836 3%
Nationwide SAT - Global Equity Fund:
Tax Qualified ................................ 2,000 14.762540 29,525 21%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ................................ 139 9.461864 1,315 (4)%
Non-tax Qualified ............................ 426 9.461864 4,031 (4)%
Nationwide SAT -
High Income Bond Fund:
Non-tax Qualified ............................ 327 10.492359 3,431 2%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ................................ 2,028 14.571500 29,551 19%
Nationwide SAT - Strategic Growth Fund:
Non-tax Qualified ............................ 69 23.017640 1,588 82%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................ 7,634 12.612898 96,287 5%
Non-tax Qualified ............................ 582 12.612898 7,341 5%
Neuberger & Berman AMT -
Guardian Portfolio:
Non-tax Qualified ............................ 1,377 14.565469 20,057 13%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................ 1,708 21.304943 36,389 52%
Non-tax Qualified ............................ 235 21.304943 5,007 52%
Neuberger & Berman AMT -
Partners Portfolio:
Non-tax Qualified ............................ 293 12.520433 3,668 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Non-tax Qualified ............................ 144 23.819210 3,430 81%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................ 3,469 14.770155 51,238 20%
Warburg Pincus Trust -
Growth & Income Portfolio:
Non-tax Qualified ............................ 366 12.428801 4,549 5%
Asset fee @ 1.60% rate:
American Century VP -
American Century VP International:
Non-tax Qualified ............................ 15 19.446544 292 61%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Non-tax Qualified ............................ 160 16.344103 2,615 28%
</TABLE>
(Continued)
<PAGE> 68
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Dreyfus Stock Index Fund:
Non-tax Qualified ............................ 1,231 14.773416 18,186 19%
Fidelity VIP - Growth Portfolio -
Service Class:
Non-tax Qualified ............................ 1,135 17.424460 19,777 35%
Nationwide SAT -
Capital Appreciation Fund:
Non-tax Qualified ............................ 1,104 12.748099 14,074 3%
Nationwide SAT -
Government Bond Fund:
Non-tax Qualified ............................ 213 9.455873 2,014 (4)%
Nationwide SAT -
High Income Bond Fund:
Non-tax Qualified ............................ 131 10.485712 1,374 2%
Nationwide SAT - Small Cap Value Fund:
Non-tax Qualified ............................ 68 16.287722 1,108 26%
Nationwide SAT - Strategic Growth Fund:
Non-tax Qualified ............................ 74 23.003080 1,702 82%
Oppenheimer VAF -
Capital Appreciation Fund:
Non-tax Qualified ............................ 1,078 18.439240 19,878 39%
Warburg Pincus Trust -
International Equity Portfolio:
Non-tax Qualified ............................ 78 17.419297 1,359 51%
Asset fee @ 1.65% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ................................ 158 14.507084 2,292 16%
Non-tax Qualified ............................ 3,473 14.507084 50,383 16%
American Century VP -
American Century VP International:
Tax Qualified ................................ 1,878 19.434239 36,498 61%
Non-tax Qualified ............................ 469 19.434239 9,115 61%
American Century VP -
American Century VP Value:
Tax Qualified ................................ 3,221 10.984159 35,380 (2)%
Non-tax Qualified ............................ 1,409 10.984159 15,477 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................ 6,744 16.333747 110,155 28%
Non-tax Qualified ............................ 779 16.333747 12,724 28%
Dreyfus Stock Index Fund:
Tax Qualified ................................ 4,680 14.764046 69,096 19%
Non-tax Qualified ............................ 5,396 14.764046 79,667 19%
</TABLE>
<PAGE> 69
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ................................. 75 13.562791 1,017 10%
Non-tax Qualified ............................. 234 13.562791 3,174 10%
Federated Insurance Series -
Federated Quality Bond Fund II:
Non-tax Qualified ............................. 594 9.760781 5,798 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................. 3,726 12.324339 45,920 5%
Non-tax Qualified ............................. 6,993 12.324339 86,184 5%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ................................. 23,480 17.413426 408,867 35%
Non-tax Qualified ............................. 30,916 17.413426 538,353 35%
Fidelity VIP - High Income Portfolio -
Service Class:
Tax Qualified ................................. 2,133 11.177582 23,842 6%
Non-tax Qualified ............................. 1,087 11.177582 12,150 6%
Fidelity VIP - Overseas Portfolio -
Service Class:
Tax Qualified ................................. 594 17.052691 10,129 40%
Non-tax Qualified ............................. 277 17.052691 4,724 40%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ................................. 1,471 15.603664 22,953 22%
Non-tax Qualified ............................. 12,941 15.603664 201,927 22%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................. 1,795 12.595275 22,609 2%
Non-tax Qualified ............................. 3,112 12.595275 39,196 2%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax Qualified ................................. 388 14.479873 5,618 27%
Nationwide SAT - Balanced Fund:
Tax Qualified ................................. 1,116 10.577794 11,805 (1)%
Non-tax Qualified ............................. 60 10.577794 635 (1)%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ................................. 8,335 12.740010 106,188 3%
Non-tax Qualified ............................. 11,336 12.740010 144,421 3%
Nationwide SAT - Equity Income Fund:
Tax Qualified ................................. 32 13.786084 441 17%
Non-tax Qualified ............................. 658 13.786084 9,071 17%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ................................. 10,206 9.449856 96,445 (4)%
</TABLE>
(Continued)
<PAGE> 70
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT -
High Income Bond Fund:
Non-tax Qualified ............................. 1,098 10.479056 11,506 1%
Nationwide SAT - Money Market Fund:
Tax Qualified ................................. 3,546 10.395950 36,864 3%
Non-tax Qualified ............................. 10,669 10.395950 110,914 3%
Nationwide SAT -
Multi Sector Bond Fund:
Non-tax Qualified ............................. 1,554 10.219313 15,881 0%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax Qualified ................................. 120 14.553031 1,746 19%
Nationwide SAT - Small Cap Value Fund:
Tax Qualified ................................. 872 16.277398 14,194 26%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ................................. 228 22.988509 5,241 82%
Non-tax Qualified ............................. 428 22.988509 9,839 82%
Nationwide SAT - Strategic Value Fund:
Non-tax Qualified ............................. 195 12.403079 2,419 (5)%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................. 495 12.596911 6,235 5%
Non-tax Qualified ............................. 1,567 12.596911 19,739 5%
Neuberger & Berman AMT -
Guardian Portfolio:
Non-tax Qualified ............................. 156 14.547000 2,269 13%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................. 271 21.277954 5,766 51%
Non-tax Qualified ............................. 256 21.277954 5,447 51%
Neuberger & Berman AMT -
Partners Portfolio:
Tax Qualified ................................. 380 12.504542 4,752 6%
Non-tax Qualified ............................. 845 12.504542 10,566 6%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified ................................. 3,311 23.789077 78,766 81%
Non-tax Qualified ............................. 2,068 23.789077 49,196 81%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ................................. 235 18.427568 4,330 39%
Non-tax Qualified ............................. 1,733 18.427568 31,935 39%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................. 17,731 14.751442 261,558 20%
Non-tax Qualified ............................. 1,074 14.751442 15,843 20%
</TABLE>
<PAGE> 71
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax Qualified ................................ 616 24.853443 15,310 97%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax Qualified ................................ 423 11.787279 4,986 19%
Victory VIF - Diversified Stock Fund -
Class A:
Non-tax Qualified ............................ 1,948 10.037475 19,553 0%(a)
Victory VIF - Investment Quality
Bond Fund - Class A:
Non-tax Qualified ............................ 750 9.908553 7,431 (1)%(a)
Victory VIF - Small Company
Opportunity Fund - Class A:
Non-tax Qualified ............................ 432 9.874460 4,266 (1)%(a)
Warburg Pincus Trust -
International Equity Portfolio:
Non-tax Qualified ............................ 531 17.408242 9,244 51%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Non-tax Qualified ............................ 23 20.617144 474 61%
Asset fee @ 1.70% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ................................ 48 10.894734 523 9%
Non-tax Qualified ............................ 169 10.894734 1,841 9%
American Century VP -
American Century VP International:
Non-tax Qualified ............................ 48 15.314929 735 53%
American Century VP -
American Century VP Value:
Non-tax Qualified ............................ 49 8.780117 430 (12)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................ 256 11.868131 3,038 19%
Non-tax Qualified ............................ 330 11.868131 3,916 19%
Dreyfus Stock Index Fund:
Tax Qualified ................................ 2,986 10.794215 32,232 8%
Non-tax Qualified ............................ 508 10.794215 5,483 8%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified ................................ 584 10.184154 5,948 2%
Non-tax Qualified ............................ 38 10.184154 387 2%
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................ 305 9.309967 2,840 (7)%
Non-tax Qualified ............................ 459 9.309967 4,273 (7)%
</TABLE>
(Continued)
<PAGE> 72
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ................................ 5,243 12.322268 64,606 23%
Non-tax Qualified ............................ 474 12.322268 5,841 23%
Fidelity VIP - Overseas Portfolio -
Service Class:
Non-tax Qualified ............................ 254 13.058898 3,317 31%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ................................ 2,571 11.278366 28,997 13%
Non-tax Qualified ............................ 455 11.278366 5,132 13%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................ 122 9.869824 1,204 (1)%
Non-tax Qualified ............................ 68 9.869824 671 (1)%
Nationwide SAT - Balanced Fund:
Tax Qualified ................................ 77 9.481422 730 (5)%
Nationwide SAT -
Capital Appreciation Fund:
Non-tax Qualified ............................ 110 9.707627 1,068 (3)%
Nationwide SAT - Equity Income Fund:
Non-tax Qualified ............................ 102 10.778958 1,099 8%
Nationwide SAT - Money Market Fund:
Non-tax Qualified ............................ 599 10.209430 6,115 2%
Nationwide SAT - Select Advisers
Small Cap Growth Fund:
Non-tax Qualified ............................ 12 20.270503 243 103%(a)
Nationwide SAT - Small Cap Value Fund:
Non-tax Qualified ............................ 20 11.697140 234 17%
Nationwide SAT - Small Company Fund:
Non-tax Qualified ............................ 237 14.124755 3,348 41%
Nationwide SAT - Strategic Growth Fund:
Tax Qualified ................................ 5 14.658438 73 47%
Non-tax Qualified ............................ 121 14.658438 1,774 47%
Nationwide SAT - Total Return Fund:
Tax Qualified ................................ 298 9.851989 2,936 (1)%
Non-tax Qualified ............................ 146 9.851989 1,438 (1)%
Neuberger & Berman AMT -
Guardian Portfolio:
Non-tax Qualified ............................ 22 9.968645 219 0%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax Qualified ................................ 19 15.264119 290 53%
Non-tax Qualified ............................ 99 15.264119 1,511 53%
</TABLE>
<PAGE> 73
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Partners Portfolio:
Non-tax Qualified .............................. 23 9.504551 219 (5)%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax Qualified .................................. 429 16.070617 6,894 61%
Non-tax Qualified .............................. 15 16.070617 241 61%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified .................................. 485 12.759449 6,188 28%
Non-tax Qualified .............................. 176 12.759449 2,246 28%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified .................................. 2,487 10.784586 26,821 8%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Non-tax Qualified .............................. 16 15.596564 250 56%
Van Eck WIT -
Worldwide Hard Assets Fund:
Non-tax Qualified .............................. 23 9.987144 230 0%
Warburg Pincus Trust -
Growth & Income Portfolio:
Non-tax Qualified .............................. 125 9.340613 1,168 (7)%
Asset fee @ 1.75% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified .................................. 375 10.891060 4,084 9%
American Century VP -
American Century VP Value:
Tax Qualified .................................. 132 8.777154 1,159 (12)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified .................................. 194 11.864126 2,302 19%
Dreyfus Stock Index Fund:
Tax Qualified .................................. 820 10.790571 8,848 8%
Non-tax Qualified .............................. 1,372 10.790571 14,805 8%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax Qualified .................................. 192 10.180717 1,955 2%
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified .................................. 205 12.318116 2,525 23%
Non-tax Qualified .............................. 7,228 12.318116 89,035 23%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified .................................. 153 11.274564 1,725 13%
Non-tax Qualified .............................. 625 11.274564 7,047 13%
</TABLE>
(Continued)
<PAGE> 74
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ................................ 133 9.866489 1,312 (1)%
Nationwide SAT - Equity Income Fund:
Tax Qualified ................................ 191 10.775320 2,058 8%
Nationwide SAT -
Government Bond Fund:
Tax Qualified ................................ 235 9.731842 2,287 (3)%
Nationwide SAT - Money Market Fund:
Non-tax Qualified ............................ 3,456 10.205942 35,272 2%
Nationwide SAT - Small Company Fund:
Non-tax Qualified ............................ 1,202 14.120006 16,972 41%
Nationwide SAT - Total Return Fund:
Non-tax Qualified ............................ 1,503 9.848668 14,803 (2)%
Oppenheimer VAF -
Aggressive Growth Fund:
Non-tax Qualified ............................ 424 16.065210 6,812 61%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ................................ 183 12.755147 2,334 28%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Tax Qualified ................................ 41 10.780952 442 8%
Non-tax Qualified ............................ 504 10.780952 5,434 8%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Non-tax Qualified ............................ 1,471 9.009528 13,253 (10)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax Qualified ................................ 53 9.337456 495 (7)%
Asset fee @ 1.80% rate:
American Century VP -
American Century VP Income & Growth:
Tax Qualified ................................ 2,334 10.887381 25,411 9%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax Qualified ................................ 2,591 11.860138 30,730 19%
Dreyfus Stock Index Fund:
Tax Qualified ................................ 3,195 10.786928 34,464 8%
Non-tax Qualified ............................ 1,636 10.786928 17,647 8%
Fidelity VIP - Equity-Income Portfolio -
Service Class:
Tax Qualified ................................ 646 9.303685 6,010 (7)%
Non-tax Qualified ............................ 3,863 9.303685 35,940 (7)%
</TABLE>
<PAGE> 75
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Growth Portfolio -
Service Class:
Tax Qualified ............................... 5,519 12.313961 67,961 23%
Non-tax Qualified ........................... 268 12.313961 3,300 23%
Fidelity VIP-II - Contrafund Portfolio -
Service Class:
Tax Qualified ............................... 378 11.270766 4,260 13%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax Qualified ............................... 1,929 9.863165 19,026 (1)%
Non-tax Qualified ........................... 311 9.863165 3,067 (1)%
Nationwide SAT -
Capital Appreciation Fund:
Tax Qualified ............................... 3,065 9.701077 29,734 (3)%
Nationwide SAT - Small Company Fund:
Tax Qualified ............................... 308 14.115240 4,347 41%
Nationwide SAT - Strategic Value Fund:
Tax Qualified ............................... 995 8.542404 8,500 (15)%
Nationwide SAT - Total Return Fund:
Tax Qualified ............................... 30 9.845340 295 (2)%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax Qualified ............................... 5,062 12.750840 64,545 28%
Non-tax Qualified ........................... 270 12.750840 3,443 28%
Oppenheimer VAF -
Main Street Growth & Income Fund:
Non-tax Qualified ........................... 1,312 10.777319 14,140 8%
Nationwide SAT -
Select Advisers Small Cap Growth Fund:
Initial funding by depositor ................ 100,000 20.501257 2,050,126 105%(a)
Victory VIF - Diversified Stock Fund -
Class A:
Initial funding by depositor ................ 100,000 10.120885 1,012,088 1%(a)
Victory VIF - Investment Quality
Bond Fund - Class A:
Initial funding by depositor ................ 100,000 10.020857 1,002,086 2%(a)
Victory VIF - Small Company
Opportunity Fund - Class A:
Initial funding by depositor ................ 100,000 9.956513 995,651 (4)%(a)
========= ========== --------------
Reserves for annuity contracts in payout phase:
Non-tax qualified ........................... 17,085
--------------
$6,530,166,060
==============
</TABLE>
(a) Non-annualized. The return was computed for the period 9/27/99, 5/03/99,
5/03/99, 7/01/99, 7/01/99 and 7/01/99 (effective dates) through 12/31/99
for Dreyfus VIF - European Equities Fund, Federated Insurance Series:
Federated Quality Bond Fund II, Nationwide SAT - Select Advisors Small Cap
Growth Fund, Victory VIF - Diversified Stock Fund - Class A, Victory VIF -
Investment Quality Bond Fund - Class A and Victory VIF - Small Company
Opportunity Fund - Class A, respectively.
(b) The annual return does not include contract charges satisfied by
surrendering units.
--------------------------------------------------------------------------------
<PAGE> 159
<PAGE> 1
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Nationwide Life Insurance Company:
We have audited the accompanying consolidated balance sheets of Nationwide Life
Insurance Company and subsidiaries (collectively the Company), a wholly owned
subsidiary of Nationwide Financial Services, Inc., as of December 31, 1999 and
1998, and the related consolidated statements of income, shareholder's equity
and cash flows for each of the years in the three-year period ended December 31,
1999. These consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Nationwide Life
Insurance Company and subsidiaries as of December 31, 1999 and 1998, and the
results of their operations and their cash flows for each of the years in the
three-year period ended December 31, 1999, in conformity with generally accepted
accounting principles.
Columbus, Ohio
January 28, 2000
<PAGE> 2
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Balance Sheets
(in millions, except per share amounts)
<TABLE>
<CAPTION>
December 31,
-----------------------------
Assets 1999 1998
------ --------- ---------
<S> <C> <C>
Investments:
Securities available-for-sale, at fair value:
Fixed maturity securities $15,294.0 $14,245.1
Equity securities 92.9 127.2
Mortgage loans on real estate, net 5,786.3 5,328.4
Real estate, net 254.8 243.6
Policy loans 519.6 464.3
Other long-term investments 73.8 44.0
Short-term investments 416.0 289.1
--------- ---------
22,437.4 20,741.7
--------- ---------
Cash 4.8 3.4
Accrued investment income 238.6 218.7
Deferred policy acquisition costs 2,554.1 2,022.2
Other assets 305.9 420.3
Assets held in separate accounts 67,135.1 50,935.8
--------- ---------
$92,675.9 $74,342.1
========= =========
Liabilities and Shareholder's Equity
------------------------------------
Future policy benefits and claims $21,861.6 $19,767.1
Other liabilities 914.2 866.1
Liabilities related to separate accounts 67,135.1 50,935.8
--------- ---------
89,910.9 71,569.0
--------- ---------
Commitments and contingencies (notes 8 and 13)
Shareholder's equity:
Common stock, $1 par value. Authorized 5.0 million shares;
3.8 million shares issued and outstanding 3.8 3.8
Additional paid-in capital 766.1 914.7
Retained earnings 2,011.0 1,579.0
Accumulated other comprehensive income (15.9) 275.6
--------- ---------
2,765.0 2,773.1
--------- ---------
$92,675.9 $74,342.1
========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 3
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Income
(in millions)
<TABLE>
<CAPTION>
Years ended December 31,
---------------------------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
Revenues:
Policy charges $ 895.5 $ 698.9 $ 545.2
Life insurance premiums 220.8 200.0 205.4
Net investment income 1,520.8 1,481.6 1,409.2
Realized (losses) gains on investments (11.6) 28.4 11.1
Other 66.1 66.8 46.5
-------- -------- --------
2,691.6 2,475.7 2,217.4
-------- -------- --------
Benefits and expenses:
Interest credited to policyholder account balances 1,096.3 1,069.0 1,016.6
Other benefits and claims 210.4 175.8 178.2
Policyholder dividends on participating policies 42.4 39.6 40.6
Amortization of deferred policy acquisition costs 272.6 214.5 167.2
Other operating expenses 463.4 419.7 384.9
-------- -------- --------
2,085.1 1,918.6 1,787.5
-------- -------- --------
Income before federal income tax expense 606.5 557.1 429.9
Federal income tax expense 201.4 190.4 150.2
-------- -------- --------
Net income $ 405.1 $ 366.7 $ 279.7
======== ======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 4
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Shareholder's Equity
Years ended December 31, 1999, 1998 and 1997
(in millions)
<TABLE>
<CAPTION>
Accumulated
Additional other Total
Common paid-in Retained comprehensive shareholder's
stock capital earnings income equity
-------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C>
December 31, 1996 $ 3.8 $ 527.9 $1,432.6 $173.6 $2,137.9
Comprehensive income:
Net income -- -- 279.7 -- 279.7
Net unrealized gains on securities
available-for-sale arising during
the year -- -- -- 73.5 73.5
--------
Total comprehensive income 353.2
--------
Capital contribution -- 836.8 -- -- 836.8
--------
Dividend to shareholder -- (450.0) (400.0) -- (850.0)
------ -------- -------- ------ --------
December 31, 1997 3.8 914.7 1,312.3 247.1 2,477.9
Comprehensive income:
Net income -- -- 366.7 -- 366.7
Net unrealized gains on securities
available-for-sale arising during
the year -- -- -- 28.5 28.5
--------
Total comprehensive income 395.2
--------
Dividend to shareholder -- -- (100.0) -- (100.0)
------ -------- -------- ------ --------
December 31, 1998 3.8 914.7 1,579.0 275.6 2,773.1
Comprehensive income:
Net income -- -- 405.1 -- 405.1
Net unrealized losses on securities
available-for-sale arising during
the year -- -- -- (315.0) (315.0)
--------
Total comprehensive income 90.1
--------
Capital contribution -- 26.4 87.9 23.5 137.8
--------
Dividends to shareholder -- (175.0) (61.0) -- (236.0)
------ -------- -------- ------ --------
December 31, 1999 $ 3.8 $ 766.1 $2,011.0 $(15.9) $2,765.0
====== ======== ======== ====== ========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 5
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Cash Flows
(in millions)
<TABLE>
<CAPTION>
Years ended December 31,
-------------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 405.1 $ 366.7 $ 279.7
Adjustments to reconcile net income to net cash provided by operating
activities:
Interest credited to policyholder account balances 1,096.3 1,069.0 1,016.6
Capitalization of deferred policy acquisition costs (637.0) (584.2) (487.9)
Amortization of deferred policy acquisition costs 272.6 214.5 167.2
Amortization and depreciation 2.4 (8.5) (2.0)
Realized (gains) losses on invested assets, net 11.6 (28.4) (11.1)
Increase in accrued investment income (7.9) (8.2) (0.3)
Decrease (increase) in other assets 122.9 16.4 (12.7)
Decrease in policy liabilities (20.9) (8.3) (23.1)
Increase (decrease) in other liabilities 149.7 (34.8) 230.6
Other, net (8.6) (11.3) (10.9)
--------- --------- ---------
Net cash provided by operating activities 1,386.2 982.9 1,146.1
--------- --------- ---------
Cash flows from investing activities:
Proceeds from maturity of securities available-for-sale 2,307.9 1,557.0 993.4
Proceeds from sale of securities available-for-sale 513.1 610.5 574.5
Proceeds from repayments of mortgage loans on real estate 696.7 678.2 437.3
Proceeds from sale of real estate 5.7 103.8 34.8
Proceeds from repayments of policy loans and sale of other invested assets 40.9 23.6 22.7
Cost of securities available-for-sale acquired (3,724.9) (3,182.8) (2,828.1)
Cost of mortgage loans on real estate acquired (971.4) (829.1) (752.2)
Cost of real estate acquired (14.2) (0.8) (24.9)
Short-term investments, net (27.5) 69.3 (354.8)
Other, net (110.9) (88.4) (62.5)
--------- --------- ---------
Net cash used in investing activities (1,284.6) (1,058.7) (1,959.8)
--------- --------- ---------
Cash flows from financing activities:
Proceeds from capital contributions -- -- 836.8
Cash dividends paid (188.5) (100.0) --
Increase in investment product and universal life insurance
product account balances 3,799.4 2,682.1 2,488.5
Decrease in investment product and universal life insurance
product account balances (3,711.1) (2,678.5) (2,379.8)
--------- --------- ---------
Net cash used in financing activities (100.2) (96.4) 945.5
--------- --------- ---------
Net increase (decrease) in cash 1.4 (172.2) 131.8
Cash, beginning of year 3.4 175.6 43.8
--------- --------- ---------
Cash, end of year $ 4.8 $ 3.4 $ 175.6
========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 6
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements
December 31, 1999, 1998 and 1997
(1) Organization and Description of Business
Nationwide Life Insurance Company (NLIC) is a leading provider of
long-term savings and retirement products in the United States and is a
wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS).
The Company develops and sells a diverse range of products including
variable annuities, fixed annuities and life insurance as well as
investment management and administrative services. NLIC markets its
products through a broad network of distribution channels, including
independent broker/dealers, national and regional brokerage firms,
financial institutions, pension plan administrators, life insurance
specialists, Nationwide Retirement Solutions sales representatives, and
Nationwide agents.
Wholly owned subsidiaries of NLIC include Nationwide Life and Annuity
Insurance Company (NLAIC), Nationwide Advisory Services, Inc., and
Nationwide Investment Services Corporation. NLIC and its subsidiaries
are collectively referred to as "the Company."
(2) Summary of Significant Accounting Policies
The significant accounting policies followed by the Company that
materially affect financial reporting are summarized below. The
accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles, which differ
from statutory accounting practices prescribed or permitted by
regulatory authorities. Annual Statements for NLIC and NLAIC, filed
with the Department of Insurance of the State of Ohio (the Department),
are prepared on the basis of accounting practices prescribed or
permitted by the Department. Prescribed statutory accounting practices
include a variety of publications of the National Association of
Insurance Commissioners (NAIC), as well as state laws, regulations and
general administrative rules. Permitted statutory accounting practices
encompass all accounting practices not so prescribed. The Company has
no material permitted statutory accounting practices.
In preparing the consolidated financial statements, management is
required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosures of contingent
assets and liabilities as of the date of the consolidated financial
statements and the reported amounts of revenues and expenses for the
reporting period. Actual results could differ significantly from those
estimates.
The most significant estimates include those used in determining
deferred policy acquisition costs, valuation allowances for mortgage
loans on real estate and real estate investments and the liability for
future policy benefits and claims. Although some variability is
inherent in these estimates, management believes the amounts provided
are adequate.
(a) Consolidation Policy
The consolidated financial statements include the accounts of NLIC
and its wholly owned subsidiaries. All significant intercompany
balances and transactions have been eliminated.
<PAGE> 7
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(b) Valuation of Investments and Related Gains and Losses
The Company is required to classify its fixed maturity securities
and equity securities as either held-to-maturity,
available-for-sale or trading. Fixed maturity securities are
classified as held-to-maturity when the Company has the positive
intent and ability to hold the securities to maturity and are
stated at amortized cost. Fixed maturity securities not classified
as held-to-maturity and all equity securities are classified as
available-for-sale and are stated at fair value, with the
unrealized gains and losses, net of adjustments to deferred policy
acquisition costs and deferred federal income tax, reported as a
separate component of accumulated other comprehensive income in
shareholder's equity. The adjustment to deferred policy
acquisition costs represents the change in amortization of
deferred policy acquisition costs that would have been required as
a charge or credit to operations had such unrealized amounts been
realized. The Company has no fixed maturity securities classified
as held-to-maturity or trading as of December 31, 1999 or 1998.
Mortgage loans on real estate are carried at the unpaid principal
balance less valuation allowances. The Company provides valuation
allowances for impairments of mortgage loans on real estate based
on a review by portfolio managers. The measurement of impaired
loans is based on the present value of expected future cash flows
discounted at the loan's effective interest rate or, as a
practical expedient, at the fair value of the collateral, if the
loan is collateral dependent. Loans in foreclosure and loans
considered to be impaired are placed on non-accrual status.
Interest received on non-accrual status mortgage loans on real
estate is included in interest income in the period received.
Real estate is carried at cost less accumulated depreciation and
valuation allowances. Other long-term investments are carried on
the equity basis, adjusted for valuation allowances. Impairment
losses are recorded on long-lived assets used in operations when
indicators of impairment are present and the undiscounted cash
flows estimated to be generated by those assets are less than the
assets' carrying amount.
Realized gains and losses on the sale of investments are
determined on the basis of specific security identification.
Estimates for valuation allowances and other than temporary
declines are included in realized gains and losses on investments.
(c) Revenues and Benefits
Investment Products and Universal Life Insurance Products:
Investment products consist primarily of individual and group
variable and fixed deferred annuities. Universal life insurance
products include universal life insurance, variable universal life
insurance, corporate owned life insurance and other
interest-sensitive life insurance policies. Revenues for
investment products and universal life insurance products consist
of net investment income, asset fees, cost of insurance, policy
administration and surrender charges that have been earned and
assessed against policy account balances during the period. Policy
benefits and claims that are charged to expense include interest
credited to policy account balances and benefits and claims
incurred in the period in excess of related policy account
balances.
Traditional Life Insurance Products: Traditional life insurance
products include those products with fixed and guaranteed premiums
and benefits and consist primarily of whole life insurance,
limited-payment life insurance, term life insurance and certain
annuities with life contingencies. Premiums for traditional life
insurance products are recognized as revenue when due. Benefits
and expenses are associated with earned premiums so as to result
in recognition of profits over the life of the contract. This
association is accomplished by the provision for future policy
benefits and the deferral and amortization of policy acquisition
costs.
<PAGE> 8
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(d) Deferred Policy Acquisition Costs
The costs of acquiring new business, principally commissions,
certain expenses of the policy issue and underwriting department
and certain variable sales expenses have been deferred. For
investment products and universal life insurance products,
deferred policy acquisition costs are being amortized with
interest over the lives of the policies in relation to the present
value of estimated future gross profits from projected interest
margins, asset fees, cost of insurance, policy administration and
surrender charges. For years in which gross profits are negative,
deferred policy acquisition costs are amortized based on the
present value of gross revenues. Deferred policy acquisition costs
are adjusted to reflect the impact of unrealized gains and losses
on fixed maturity securities available-for-sale as described in
note 2(b). For traditional life insurance products, these deferred
policy acquisition costs are predominantly being amortized with
interest over the premium paying period of the related policies in
proportion to the ratio of actual annual premium revenue to the
anticipated total premium revenue. Such anticipated premium
revenue was estimated using the same assumptions as were used for
computing liabilities for future policy benefits.
(e) Separate Accounts
Separate account assets and liabilities represent contractholders'
funds which have been segregated into accounts with specific
investment objectives. For all but $915.4 million of separate
account assets, the investment income and gains or losses of these
accounts accrue directly to the contractholders. The activity of
the separate accounts is not reflected in the consolidated
statements of income and cash flows except for the fees the
Company receives.
(f) Future Policy Benefits
Future policy benefits for investment products in the accumulation
phase, universal life insurance and variable universal life
insurance policies have been calculated based on participants'
contributions plus interest credited less applicable contract
charges. The average interest rate credited on investment product
policy reserves was 5.6%, 6.0% and 6.1% for the years ended
December 31, 1999, 1998 and 1997, respectively.
Future policy benefits for traditional life insurance policies
have been calculated by the net level premium method using
interest rates varying from 6.0% to 10.5% and estimates of
mortality, morbidity, investment yields and withdrawals which were
used or which were being experienced at the time the policies were
issued, rather than the assumptions prescribed by state regulatory
authorities.
<PAGE> 9
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(g) Participating Business
Participating business represents approximately 29% in 1999 (40%
in 1998 and 50% in 1997) of the Company's life insurance in force,
69% in 1999 (74% in 1998 and 77% in 1997) of the number of life
insurance policies in force, and 13% in 1999 (14% in 1998 and 27%
in 1997) of life insurance statutory premiums. The provision for
policyholder dividends is based on current dividend scales and is
included in "Future policy benefits and claims" in the
accompanying consolidated balance sheets.
(h) Federal Income Tax
The Company files a consolidated federal income tax return with
Nationwide Mutual Insurance Company (NMIC), the majority
shareholder of Nationwide Corp. The members of the consolidated
tax return group have a tax sharing arrangement which provides, in
effect, for each member to bear essentially the same federal
income tax liability as if separate tax returns were filed.
The Company utilizes the asset and liability method of accounting
for income tax. Under this method, deferred tax assets and
liabilities are recognized for the future tax consequences
attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their
respective tax bases and operating loss and tax credit
carryforwards. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be
recovered or settled. Under this method, the effect on deferred
tax assets and liabilities of a change in tax rates is recognized
in income in the period that includes the enactment date.
Valuation allowances are established when necessary to reduce the
deferred tax assets to the amounts expected to be realized.
(i) Reinsurance Ceded
Reinsurance premiums ceded and reinsurance recoveries on benefits
and claims incurred are deducted from the respective income and
expense accounts. Assets and liabilities related to reinsurance
ceded are reported on a gross basis.
(j) Recently Issued Accounting Pronouncements
In March 1998, The American Institute of Certified Public
Accountant's Accounting Standards Executive Committee issued
Statement of Position (SOP) 98-1, "Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use." The
SOP, which has been adopted prospectively as of January 1, 1999,
requires the capitalization of certain costs incurred in
connection with developing or obtaining internal use software.
Prior to the adoption of SOP 98-1, the Company expensed internal
use software related costs as incurred. The effect of adopting the
SOP was to increase net income for 1999 by $8.3 million.
In June 1998, the Financial Accounting Standards Board (FASB)
issued Statement No. 133, "Accounting for Derivative Instruments
and Hedging Activities" (FAS 133). FAS 133 establishes accounting
and reporting standards for derivative instruments and for hedging
activities. Contracts that contain embedded derivatives, such as
certain investment and insurance contracts, are also addressed by
the Statement. FAS 133 requires that an entity recognize all
derivatives as either assets or liabilities in the statement of
financial position and measure those instruments at fair value. In
July 1999 the FASB issued Statement No. 137 which delayed the
effective date of FAS 133 to fiscal years beginning after June 15,
2000. The Company plans to adopt this Statement in first quarter
2001 and is currently evaluating the impact on results of
operations and financial condition.
(k) Reclassification
Certain items in the 1998 and 1997 consolidated financial
statements have been reclassified to conform to the 1999
presentation.
<PAGE> 10
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(3) Investments
The amortized cost, gross unrealized gains and losses and estimated
fair value of securities available-for-sale as of December 31, 1999 and
1998 were:
<TABLE>
<CAPTION>
Gross Gross
Amortized unrealized unrealized Estimated
(in millions) cost gains losses fair value
--------- ------ ------- ---------
<S> <C> <C> <C> <C>
December 31, 1999:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies $ 428.4 $ 23.4 $ (2.4) $ 449.4
Obligations of states and political subdivisions 0.8 -- -- 0.8
Debt securities issued by foreign governments 110.6 0.6 (0.8) 110.4
Corporate securities 11,414.7 118.9 (218.6) 11,315.0
Mortgage-backed securities 3,422.8 25.8 (30.2) 3,418.4
--------- ------ ------- ---------
Total fixed maturity securities 15,377.3 168.7 (252.0) 15,294.0
Equity securities 84.9 12.4 (4.4) 92.9
--------- ------ ------- ---------
$15,462.2 $181.1 $(256.4) $15,386.9
========= ====== ======= =========
December 31, 1998:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies $ 255.9 $ 13.0 $ -- $ 268.9
Obligations of states and political subdivisions 1.6 -- -- 1.6
Debt securities issued by foreign governments 106.5 4.5 -- 111.0
Corporate securities 9,899.6 423.2 (18.7) 10,304.1
Mortgage-backed securities 3,457.7 104.2 (2.4) 3,559.5
--------- ------ ------- ---------
Total fixed maturity securities 13,721.3 544.9 (21.1) 14,245.1
Equity securities 110.4 18.3 (1.5) 127.2
--------- ------ ------- ---------
$13,831.7 $563.2 $ (22.6) $14,372.3
========= ====== ======= =========
</TABLE>
The amortized cost and estimated fair value of fixed maturity
securities available-for-sale as of December 31, 1999, by expected
maturity, are shown below. Expected maturities will differ from
contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
<TABLE>
<CAPTION>
Amortized Estimated
(in millions) cost fair value
--------- ---------
<S> <C> <C>
Fixed maturity securities available for sale:
Due in one year or less $ 847.0 $ 847.0
Due after one year through five years 5,240.5 5,205.7
Due after five years through ten years 5,046.9 5,005.2
Due after ten years 4,242.9 4,236.1
--------- ---------
$15,377.3 $15,294.0
========= =========
</TABLE>
<PAGE> 11
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The components of unrealized (losses) gains on securities
available-for-sale, net, were as follows as of December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998
------ -------
<S> <C> <C>
Gross unrealized (losses) gains $(75.3) $ 540.6
Adjustment to deferred policy acquisition costs 50.9 (116.6)
Deferred federal income tax 8.5 (148.4)
------ -------
$(15.9) $ 275.6
====== =======
</TABLE>
An analysis of the change in gross unrealized (losses) gains on
securities available-for-sale for the years ended December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
------- ----- ------
<S> <C> <C> <C>
Securities available-for-sale:
Fixed maturity securities $(607.1) $52.6 $137.5
Equity securities (8.8) 4.2 (2.7)
------- ----- ------
$(615.9) $56.8 $134.8
======= ===== ======
</TABLE>
Proceeds from the sale of securities available-for-sale during 1999,
1998 and 1997 were $513.1 million, $610.5 million and $574.5 million,
respectively. During 1999, gross gains of $10.4 million ($9.0 million
and $9.9 million in 1998 and 1997, respectively) and gross losses of
$28.0 million ($7.6 million and $18.0 million in 1998 and 1997,
respectively) were realized on those sales. In addition, gross gains of
$15.1 million and gross losses of $0.7 million were realized in 1997
when the Company paid a dividend to NFS, which then made an equivalent
dividend to Nationwide Corp., consisting of securities having an
aggregate fair value of $850.0 million.
The Company had $15.6 million of real estate investments at December
31, 1999 that were non-income producing the preceding twelve months.
During 1998 the Company had investments of $42.4 million that were
non-income producing, which consisted of $32.7 million of securities
available-for-sale and $9.7 million of real estate.
Real estate is presented at cost less accumulated depreciation of $24.8
million as of December 31, 1999 ($21.5 million as of December 31, 1998)
and valuation allowances of $5.5 million as of December 31, 1999 ($5.4
million as of December 31, 1998).
The recorded investment of mortgage loans on real estate considered to
be impaired was $3.7 million as of both December 31, 1999 and 1998. No
valuation allowance has been recorded for these loans as of December
31, 1999 or 1998. During 1999, the average recorded investment in
impaired mortgage loans on real estate was approximately $3.7 million
($9.1 million in 1998) and there was no interest income recognized on
those loans. Interest income recognized on impaired loans was $0.3
million in 1998 which is equal to interest income recognized using a
cash-basis method of income recognition.
<PAGE> 12
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Activity in the valuation allowance account for mortgage loans on real
estate is summarized for the years ended December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
----- ----- -----
<S> <C> <C> <C>
Allowance, beginning of year $42.4 $42.5 $51.0
Additions (reductions) charged to operations 0.7 (0.1) (1.2)
Direct write-downs charged against the allowance -- -- (7.3)
Allowance on acquired mortgage loans 1.3 -- --
----- ----- -----
Allowance, end of year $44.4 $42.4 $42.5
===== ===== =====
</TABLE>
An analysis of investment income by investment type follows for the
years ended December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
Gross investment income:
Securities available-for-sale:
Fixed maturity securities $1,031.3 $ 982.5 $ 911.6
Equity securities 2.5 0.8 0.8
Mortgage loans on real estate 460.4 458.9 457.7
Real estate 28.8 40.4 42.9
Short-term investments 18.6 17.8 22.7
Other 26.5 30.7 21.0
-------- -------- --------
Total investment income 1,568.1 1,531.1 1,456.7
Less investment expenses 47.3 49.5 47.5
-------- -------- --------
Net investment income $1,520.8 $1,481.6 $1,409.2
======== ======== ========
</TABLE>
An analysis of realized gains (losses) on investments, net of valuation
allowances, by investment type follows for the years ended December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
------- ----- -----
<S> <C> <C> <C>
Securities available-for-sale:
Fixed maturity securities $(25.0) $(0.7) $ 3.6
Equity securities 7.4 2.1 2.7
Mortgage loans on real estate (0.6) 3.9 1.6
Real estate and other 6.6 23.1 3.2
------ ----- -----
$(11.6) $28.4 $11.1
====== ===== =====
</TABLE>
Fixed maturity securities with an amortized cost of $9.1 million as of
December 31, 1999 and $6.5 million as of December 31, 1998 were on
deposit with various regulatory agencies as required by law.
(4) Derivative Financial Instruments
The Company uses derivative financial instruments, principally interest
rate swaps, interest rate futures contracts and foreign currency swaps,
to manage market risk exposures associated with changes in interest
rates and foreign currency exchange rates. Provided they meet specific
criteria, interest rate swaps and futures are considered hedges and are
accounted for under the accrual method and deferral method,
respectively. The Company has no significant derivative positions that
are not considered hedges.
<PAGE> 13
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Interest rate swaps are primarily used to convert specific investment
securities and interest bearing policy liabilities from a fixed-rate to
a floating-rate basis. Amounts receivable or payable under these
agreements are recognized as an adjustment to net investment income or
interest credited to policyholder account balances consistent with the
nature of the hedged item. The changes in fair value of the interest
rate swap agreements are not recognized on the balance sheet, except
for interest rate swaps designated as hedges of fixed maturity
securities available-for-sale, for which changes in fair values are
reported in accumulated other comprehensive income.
Interest rate futures contracts are primarily used to hedge the risk of
adverse interest rate changes related to the Company's mortgage loan
commitments and anticipated purchases of fixed rate investments. Gains
and losses are deferred and, at the time of closing, reflected as an
adjustment to the carrying value of the related mortgage loans or
investments. The carrying value adjustments are amortized into net
investment income over the life of the related mortgage loans or
investments.
Foreign currency swaps are used to convert cash flows from specific
policy liabilities and investments denominated in foreign currencies
into U.S. dollars at specified exchange rates. Gains and losses on
foreign currency swaps are recorded in earnings based on the related
spot foreign exchange rate at the end of the reporting period. Gains
and losses on these contracts offset those recorded as a result of
translating the hedged foreign currency denominated liabilities and
investments to U.S. dollars.
The following table summarizes the notional amount of derivative
financial instruments classified as hedges outstanding as of December
31, 1999. Prior to 1999 the Company's activities in derivatives were
not significant.
<TABLE>
<CAPTION>
(in millions)
-------------
<S> <C>
Interest rate swaps
Pay fixed/receive variable rate swaps hedging investments $362.7
Pay variable/receive fixed rate swaps hedging investments $ 28.5
Other contracts hedging investments $ 19.1
Pay variable/receive fixed rate swaps hedging liabilities $577.2
Foreign currency swaps
Hedging foreign currency denominated investments $ 14.8
Hedging foreign currency denominated liabilities $577.2
Interest rate futures contracts $781.6
</TABLE>
<PAGE> 14
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(5) Federal Income Tax
The tax effects of temporary differences that give rise to significant
components of the net deferred tax liability as of December 31, 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
(in millions) 1999 1998
---- ----
<S> <C> <C>
Deferred tax assets:
Fixed maturity securities $ 5.3 $ --
Future policy benefits 149.5 207.7
Liabilities in separate accounts 373.6 319.9
Mortgage loans on real estate and real estate 18.5 17.5
Other assets and other liabilities 51.1 58.9
----- ------
Total gross deferred tax assets 598.0 604.0
Less valuation allowance (7.0) (7.0)
----- ------
Net deferred tax assets 591.0 597.0
----- ------
Deferred tax liabilities:
Deferred policy acquisition costs 724.4 568.7
Fixed maturity securities -- 212.2
Deferred tax on realized investment gains 34.7 34.8
Equity securities and other long-term investments 10.8 9.6
Other 26.5 21.6
------ ------
Total gross deferred tax liabilities 796.4 846.9
------ ------
Net deferred tax liability $205.4 $249.9
====== ======
</TABLE>
In assessing the realizability of deferred tax assets, management
considers whether it is more likely than not that some portion of the
total gross deferred tax assets will not be realized. Nearly all future
deductible amounts can be offset by future taxable amounts or recovery
of federal income tax paid within the statutory carryback period. There
has been no change in the valuation allowance for the years ended
December 31, 1999, 1998 and 1997.
The Company's current federal income tax liability was $104.7 million
and $72.8 million as of December 31, 1999 and 1998, respectively.
Federal income tax expense for the years ended December 31 was as
follows:
(in millions) 1999 1998 1997
------ ------ ------
Currently payable $ 53.6 $186.1 $121.7
Deferred tax expense 147.8 4.3 28.5
------ ------ ------
$201.4 $190.4 $150.2
====== ====== ======
<PAGE> 15
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Total federal income tax expense for the years ended December 31, 1999,
1998 and 1997 differs from the amount computed by applying the U.S.
federal income tax rate to income before tax as follows:
<TABLE>
<CAPTION>
1999 1998 1997
---------------- ---------------- ----------------
(in millions) Amount % Amount % Amount %
------ ---- ------ ---- ------ ----
<S> <C> <C> <C> <C> <C> <C>
Computed (expected) tax expense $212.3 35.0 $195.0 35.0 $150.5 35.0
Tax exempt interest and dividends
received deduction (7.3) (1.2) (4.9) (0.9) -- --
Income tax credits (4.3) (0.7) -- -- -- --
Other, net 0.7 0.1 0.3 0.1 (0.3) (0.1)
------ ---- ------ ---- ------ ----
Total (effective rate of each year) $201.4 33.2 $190.4 34.2 $150.2 34.9
====== ==== ====== ==== ====== ====
</TABLE>
Total federal income tax paid was $29.8 million, $173.4 million and
$91.8 million during the years ended December 31, 1999, 1998 and 1997,
respectively.
(6) Comprehensive Income
Comprehensive Income includes net income as well as certain items that
are reported directly within separate components of shareholder's
equity that bypass net income. Currently, the Company's only component
of Other Comprehensive Income is unrealized gains (losses) on
securities available-for-sale. The related before and after federal tax
amounts are as follows:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
------- ------ ------
<S> <C> <C> <C>
Unrealized gains (losses) on securities available-for-sale
arising during the period:
Gross $(665.3) $ 58.2 $141.1
Adjustment to deferred policy acquisition costs 167.5 (12.9) (21.8)
Related federal income tax (expense) benefit 171.4 (15.9) (41.7)
------- ------ ------
Net (326.4) 29.4 77.6
------- ------ ------
Reclassification adjustment for net (gains) losses on
securities available-for-sale realized during the
period:
Gross 17.6 (1.4) (6.3)
Related federal income tax expense (benefit) (6.2) 0.5 2.2
------- ------ ------
Net 11.4 (0.9) (4.1)
------- ------ ------
Total Other Comprehensive Income $(315.0) $ 28.5 $ 73.5
======= ====== ======
</TABLE>
(7) Fair Value of Financial Instruments
The following disclosures summarize the carrying amount and estimated
fair value of the Company's financial instruments. Certain assets and
liabilities are specifically excluded from the disclosure requirements
of financial instruments. Accordingly, the aggregate fair value amounts
presented do not represent the underlying value of the Company.
<PAGE> 16
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The fair value of a financial instrument is defined as the amount at
which the financial instrument could be exchanged in a current
transaction between willing parties. In cases where quoted market
prices are not available, fair value is to be based on estimates using
present value or other valuation techniques. Many of the Company's
assets and liabilities subject to the disclosure requirements are not
actively traded, requiring fair values to be estimated by management
using present value or other valuation techniques. These techniques are
significantly affected by the assumptions used, including the discount
rate and estimates of future cash flows. Although fair value estimates
are calculated using assumptions that management believes are
appropriate, changes in assumptions could cause these estimates to vary
materially. In that regard, the derived fair value estimates cannot be
substantiated by comparison to independent markets and, in many cases,
could not be realized in the immediate settlement of the instruments.
Although insurance contracts, other than policies such as annuities
that are classified as investment contracts, are specifically exempted
from the disclosure requirements, estimated fair value of policy
reserves on life insurance contracts is provided to make the fair value
disclosures more meaningful.
The tax ramifications of the related unrealized gains and losses can
have a significant effect on fair value estimates and have not been
considered in the estimates.
The following methods and assumptions were used by the Company in
estimating its fair value disclosures:
Fixed maturity and equity securities: The fair value for fixed
maturity securities is based on quoted market prices, where
available. For fixed maturity securities not actively traded, fair
value is estimated using values obtained from independent pricing
services or, in the case of private placements, is estimated by
discounting expected future cash flows using a current market rate
applicable to the yield, credit quality and maturity of the
investments. The fair value for equity securities is based on
quoted market prices. The carrying amount and fair value for fixed
maturity and equity securities exclude the fair value of
derivatives contracts designated as hedges of fixed maturity and
equity securities.
Mortgage loans on real estate, net: The fair value for mortgage
loans on real estate is estimated using discounted cash flow
analyses, using interest rates currently being offered for similar
loans to borrowers with similar credit ratings. Loans with similar
characteristics are aggregated for purposes of the calculations.
Fair value for mortgage loans in default is the estimated fair
value of the underlying collateral.
Policy loans, short-term investments and cash: The carrying amount
reported in the consolidated balance sheets for these instruments
approximates their fair value.
Separate account assets and liabilities: The fair value of assets
held in separate accounts is based on quoted market prices. The
fair value of liabilities related to separate accounts is the
amount payable on demand, which is net of certain surrender
charges.
Investment contracts: The fair value for the Company's liabilities
under investment type contracts is disclosed using two methods.
For investment contracts without defined maturities, fair value is
the amount payable on demand. For investment contracts with known
or determined maturities, fair value is estimated using discounted
cash flow analysis. Interest rates used are similar to currently
offered contracts with maturities consistent with those remaining
for the contracts being valued.
<PAGE> 17
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Policy reserves on life insurance contracts: Included are
disclosures for individual life insurance, universal life
insurance and supplementary contracts with life contingencies for
which the estimated fair value is the amount payable on demand.
Also included are disclosures for the Company's limited payment
policies, which the Company has used discounted cash flow analyses
similar to those used for investment contracts with known
maturities to estimate fair value.
Commitments to extend credit: Commitments to extend credit have
nominal fair value because of the short-term nature of such
commitments. See note 8.
Futures contracts: The fair value for futures contracts is based
on quoted market prices.
Interest rate and foreign currency swaps: The fair value for
interest rate and foreign currency swaps are calculated with
pricing models using current rate assumptions.
Carrying amount and estimated fair value of financial instruments
subject to disclosure requirements and policy reserves on life
insurance contracts were as follows as of December 31:
<TABLE>
<CAPTION>
1999 1998
------------------------ -------------------------
Carrying Estimated Carrying Estimated
(in millions) amount fair value amount fair value
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Assets:
Investments:
Securities available-for-sale:
Fixed maturity securities $15,294.0 $15,294.0 $14,245.1 $14,245.1
Equity securities 92.9 92.9 128.5 128.5
Mortgage loans on real estate, net 5,786.3 5,745.5 5,328.4 5,527.6
Policy loans 519.6 519.6 464.3 464.3
Short-term investments 416.0 416.0 289.1 289.1
Cash 4.8 4.8 3.4 3.4
Assets held in separate accounts 67,135.1 67,135.1 50,935.8 50,935.8
Liabilities:
Investment contracts (16,977.7) (16,428.6) (15,468.7) (15,158.6)
Policy reserves on life insurance contracts (4,883.9) (4,607.9) (3,914.0) (3,768.9)
Liabilities related to separate accounts (67,135.1) (66,318.7) (50,935.8) (49,926.5)
Derivative financial instruments:
Interest rate swaps hedging assets 4.3 4.3 - -
Interest rate swaps hedging liabilities - (24.2) - -
Foreign currency swaps (11.8) (11.8) - -
Futures contracts 1.3 1.3 (1.3) (1.3)
</TABLE>
(8) Risk Disclosures
The following is a description of the most significant risks facing
life insurers and how the Company mitigates those risks:
Credit Risk: The risk that issuers of securities owned by the Company
or mortgagors on mortgage loans on real estate owned by the Company
will default or that other parties, including reinsurers, which owe the
Company money, will not pay. The Company minimizes this risk by
adhering to a conservative investment strategy, by maintaining
reinsurance and credit and collection policies and by providing for any
amounts deemed uncollectible.
<PAGE> 18
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Interest Rate Risk: The risk that interest rates will change and cause
a decrease in the value of an insurer's investments. This change in
rates may cause certain interest-sensitive products to become
uncompetitive or may cause disintermediation. The Company mitigates
this risk by charging fees for non-conformance with certain policy
provisions, by offering products that transfer this risk to the
purchaser, and/or by attempting to match the maturity schedule of its
assets with the expected payouts of its liabilities. To the extent that
liabilities come due more quickly than assets mature, an insurer would
have to borrow funds or sell assets prior to maturity and potentially
recognize a gain or loss.
Legal/Regulatory Risk: The risk that changes in the legal or regulatory
environment in which an insurer operates will result in increased
competition, reduced demand for a company's products, or create
additional expenses not anticipated by the insurer in pricing its
products. The Company mitigates this risk by offering a wide range of
products and by operating throughout the United States, thus reducing
its exposure to any single product or jurisdiction, and also by
employing underwriting practices which identify and minimize the
adverse impact of this risk.
Financial Instruments with Off-Balance-Sheet Risk: The Company is a
party to financial instruments with off-balance-sheet risk in the
normal course of business through management of its investment
portfolio. These financial instruments include commitments to extend
credit in the form of loans and derivative financial instruments. These
instruments involve, to varying degrees, elements of credit risk in
excess of amounts recognized on the consolidated balance sheets.
Commitments to fund fixed rate mortgage loans on real estate are
agreements to lend to a borrower, and are subject to conditions
established in the contract. Commitments generally have fixed
expiration dates or other termination clauses and may require payment
of a deposit. Commitments extended by the Company are based on
management's case-by-case credit evaluation of the borrower and the
borrower's loan collateral. The underlying mortgage property represents
the collateral if the commitment is funded. The Company's policy for
new mortgage loans on real estate is to lend no more than 75% of
collateral value. Should the commitment be funded, the Company's
exposure to credit loss in the event of nonperformance by the borrower
is represented by the contractual amounts of these commitments less the
net realizable value of the collateral. The contractual amounts also
represent the cash requirements for all unfunded commitments.
Commitments on mortgage loans on real estate of $216.2 million
extending into 2000 were outstanding as of December 31, 1999. The
Company also had $28.0 million of commitments to purchase fixed
maturity securities outstanding as of December 31, 1999.
Notional amounts of derivative financial instruments, primarily
interest rate swaps, interest rate futures contracts and foreign
currency swaps, significantly exceed the credit risk associated with
these instruments and represent contractual balances on which
calculations of amounts to be exchanged are based. Credit exposure is
limited to the sum of the aggregate fair value of positions that have
become favorable to NLIC, including accrued interest receivable due
from counterparties. Potential credit losses are minimized through
careful evaluation of counterparty credit standing, selection of
counterparties from a limited group of high quality institutions,
collateral agreements and other contract provisions. At December 31,
1999, NLIC's credit risk from these derivative financial instruments
was $6.1 million.
Significant Concentrations of Credit Risk: The Company grants mainly
commercial mortgage loans on real estate to customers throughout the
United States. The Company has a diversified portfolio with no more
than 23% (22% in 1998) in any geographic area and no more than 2% (2%
in 1998) with any one borrower as of December 31, 1999. As of December
31, 1999, 39% (42% in 1998) of the remaining principal balance of the
Company's commercial mortgage loan portfolio financed retail
properties.
<PAGE> 19
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Reinsurance: The Company has entered into a reinsurance contract to
cede a portion of its general account individual annuity business to
The Franklin Life Insurance Company (Franklin). Total recoveries due
from Franklin were $143.6 million and $187.9 million as of December 31,
1999 and 1998, respectively. The contract is immaterial to the
Company's results of operations. The ceding of risk does not discharge
the original insurer from its primary obligation to the policyholder.
Under the terms of the contract, Franklin has established a trust as
collateral for the recoveries. The trust assets are invested in
investment grade securities, the market value of which must at all
times be greater than or equal to 102% of the reinsured reserves.
(9) Pension Plan and Postretirement Benefits Other Than Pensions
The Company is a participant, together with other affiliated companies,
in a pension plan covering all employees who have completed at least
one year of service. The Company funds pension costs accrued for direct
employees plus an allocation of pension costs accrued for employees of
affiliates whose work efforts benefit the Company. Assets of the
Retirement Plan are invested in group annuity contracts of NLIC.
Pension cost (benefit) charged to operations by the Company during the
years ended December 31, 1999, 1998 and 1997 were $(8.3) million, $2.0
million and $7.5 million, respectively. The Company has recorded a
prepaid pension asset of $13.3 million and $5.0 million as of December
31, 1999 and 1998, respectively.
In addition to the defined benefit pension plan, the Company, together
with other affiliated companies, participates in life and health care
defined benefit plans for qualifying retirees. Postretirement life and
health care benefits are contributory and generally available to full
time employees who have attained age 55 and have accumulated 15 years
of service with the Company after reaching age 40. Postretirement
health care benefit contributions are adjusted annually and contain
cost-sharing features such as deductibles and coinsurance. In addition,
there are caps on the Company's portion of the per-participant cost of
the postretirement health care benefits. These caps can increase
annually, but not more than three percent. The Company's policy is to
fund the cost of health care benefits in amounts determined at the
discretion of management. Plan assets are invested primarily in group
annuity contracts of NLIC.
The Company elected to immediately recognize its estimated accumulated
postretirement benefit obligation (APBO), however, certain affiliated
companies elected to amortize their initial transition obligation over
periods ranging from 10 to 20 years.
The Company's accrued postretirement benefit expense as of December 31,
1999 and 1998 was $49.6 million and $40.1 million, respectively, and
the net periodic postretirement benefit cost (NPPBC) for 1999, 1998 and
1997 was $4.9 million, $4.1 million and $3.0 million, respectively.
<PAGE> 20
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Information regarding the funded status of the pension plan as a whole
and the postretirement life and health care benefit plan as a whole as
of December 31, 1999 and 1998 follows:
<TABLE>
<CAPTION>
Pension Benefits Postretirement Benefits
------------------ -----------------------
(in millions) 1999 1998 1999 1998
--------------------------------------------------------- -------- -------- ------- -------
<S> <C> <C> <C> <C>
Change in benefit obligation:
Benefit obligation at beginning of year $2,185.0 $2,033.8 $ 270.1 $ 237.9
Service cost 80.0 87.6 14.2 9.8
Interest cost 109.9 123.4 17.6 15.4
Actuarial (gain) loss (95.0) 123.2 (64.4) 15.6
Plan settlement in 1999/curtailment in 1998 (396.1) (107.2) -- --
Benefits paid (72.4) (75.8) (11.0) (8.6)
Acquired companies -- -- 13.3 --
-------- -------- ------- -------
Benefit obligation at end of year 1,811.4 2,185.0 239.8 270.1
-------- -------- ------- -------
Change in plan assets:
Fair value of plan assets at beginning of year 2,541.9 2,212.9 77.9 69.2
Actual return on plan assets 161.8 300.7 3.5 5.0
Employer contribution 12.4 104.1 20.9 12.1
Plan settlement (396.1) -- -- --
Benefits paid (72.4) (75.8) (11.0) (8.4)
-------- -------- ------- -------
Fair value of plan assets at end of year 2,247.6 2,541.9 91.3 77.9
-------- -------- ------- -------
Funded status 436.2 356.9 (148.5) (192.2)
Unrecognized prior service cost 28.2 31.5 -- --
Unrecognized net (gains) losses (402.0) (345.7) (46.7) 16.0
Unrecognized net (asset) obligation at transition (7.7) (11.0) 1.1 1.3
-------- -------- ------- -------
Prepaid (accrued) benefit cost $ 54.7 $ 31.7 $(194.1) $(174.9)
======== ======== ======= =======
</TABLE>
<PAGE> 21
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Basis for measurements, funded status of the pension plan and
postretirement life and health care benefit plan:
<TABLE>
<CAPTION>
Pension Benefits Postretirement Benefits
---------------- -----------------------
1999 1998 1999 1998
---- ---- ------- ------
<S> <C> <C>
Weighted average discount rate 7.00% 5.50% 7.80% 6.65%
Rate of increase in future compensation levels 5.25% 3.75% -- --
Assumed health care cost trend rate:
Initial rate -- -- 15.00% 15.00%
Ultimate rate -- -- 5.50% 8.00%
Uniform declining period -- -- 5 Years 15 Years
</TABLE>
The net periodic pension cost for the pension plan as a whole for the
years ended December 31, 1999, 1998 and 1997 follows:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
-------------------------------------------------------------------------------- ----------- ------------
<S> <C> <C> <C>
Service cost (benefits earned during the period) $ 80.0 $ 87.6 $ 77.3
Interest cost on projected benefit obligation 109.9 123.4 118.6
Expected return on plan assets (160.3) (159.0) (139.0)
Recognized gains (9.1) (3.8) --
Amortization of prior service cost 3.2 3.2 3.2
Amortization of unrecognized transition obligation (asset) (1.4) 4.2 4.2
------- ------- --------
$ 22.3 $ 55.6 $ 64.3
======= ======= ========
</TABLE>
Effective December 31, 1998, Wausau Service Corporation (WSC) ended its
affiliation with Nationwide Insurance and employees of WSC ended
participation in the plan. A curtailment gain of $67.1 million resulted
(consisting of a $107.2 million reduction in the projected benefit
obligation, net of the write-off of the $40.1 million remaining
unamortized transition obligation related to WSC). During 1999, the
plan transferred assets to settle its obligation related to WSC
employees . A settlement gain of $32.9 million was recognized.
Basis for measurements, net periodic pension cost for the pension plan:
<TABLE>
<CAPTION>
1999 1998 1997
------ ----- -----
<S> <C> <C> <C>
Weighted average discount rate 6.08% 6.00% 6.50%
Rate of increase in future compensation levels 4.33% 4.25% 4.75%
Expected long-term rate of return on plan assets 7.33% 7.25% 7.25%
</TABLE>
<PAGE> 22
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The amount of NPPBC for the postretirement benefit plan as a whole for
the years ended December 31, 1999, 1998 and 1997 was as follows:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
------- ----------- -----------
<S> <C> <C> <C>
Service cost (benefits attributed to employee service during the year) $14.2 $ 9.8 $ 7.0
Interest cost on accumulated postretirement benefit obligation 17.6 15.4 14.0
Actual return on plan assets (3.5) (5.0) (3.6)
Amortization of unrecognized transition obligation of affiliates 0.6 0.2 0.2
Net amortization and deferral (1.8) 1.2 (0.5)
----- ----- -----
$27.1 $21.6 $17.1
===== ===== =====
</TABLE>
Actuarial assumptions used for the measurement of the NPPBC for the
postretirement benefit plan for 1999, 1998 and 1997 were as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------- ------ ------
<S> <C> <C> <C>
Discount rate 6.65% 6.70% 7.25%
Long term rate of return on plan
assets, net of tax 7.15% 5.83% 5.89%
Assumed health care cost trend rate:
Initial rate 15.00% 12.00% 11.00%
Ultimate rate 5.50% 6.00% 6.00%
Uniform declining period 5 Years 12 Years 12 Years
</TABLE>
For the postretirement benefit plan as a whole, a one percentage point
increase or decrease in the assumed health care cost trend rate would
have no impact on the APBO as of December 31, 1999 and have no impact
on the NPPBC for the year ended December 31, 1999.
(10) Shareholder's Equity, Regulatory Risk-Based Capital, Retained Earnings
and Dividend Restrictions
Ohio, NLIC's and NLAIC's state of domicile, imposes minimum risk-based
capital requirements that were developed by the NAIC. The formulas for
determining the amount of risk-based capital specify various weighting
factors that are applied to financial balances or various levels of
activity based on the perceived degree of risk. Regulatory compliance
is determined by a ratio of the company's regulatory total adjusted
capital, as defined by the NAIC, to its authorized control level
risk-based capital, as defined by the NAIC. Companies below specific
trigger points or ratios are classified within certain levels, each of
which requires specified corrective action. NLIC and NLAIC each exceed
the minimum risk-based capital requirements.
The statutory capital and surplus of NLIC as of December 31, 1999, 1998
and 1997 was $1.35 billion, $1.32 billion and $1.13 billion,
respectively. The statutory net income of NLIC for the years ended
December 31, 1999, 1998 and 1997 was $276.2 million, $171.0 million and
$111.7 million, respectively.
The Company is limited in the amount of shareholder dividends it may
pay without prior approval by the Department. As of December 31, 1999
$40.2 million of dividends could be paid by NLIC without prior
approval.
<PAGE> 23
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
In addition, the payment of dividends by NLIC may also be subject to
restrictions set forth in the insurance laws of New York that limit the
amount of statutory profits on NLIC's participating policies (measured
before dividends to policyholders) that can inure to the benefit of the
Company and its shareholder.
The Company currently does not expect such regulatory requirements to
impair its ability to pay operating expenses and shareholder dividends
in the future.
(11) Transactions With Affiliates
During second quarter 1999 the Company entered into a modified
coinsurance arrangement to reinsure the 1999 operating results of an
affiliated company, Employers Life Insurance Company of Wausau (ELOW)
retroactive to January 1, 1999. In September 1999, NFS acquired ELOW
for $120.8 million and immediately merged ELOW into NLIC terminating
the modified coinsurance arrangement. Because ELOW was an affiliate,
the Company accounted for the merger similar to poolings-of-interests;
however, prior period financial statements were not restated due to
immateriality. The reinsurance and merger combined contributed $1.46
million to year to date net income.
The Company has a reinsurance agreement with NMIC whereby all of the
Company's accident and health business is ceded to NMIC on a modified
coinsurance basis. The agreement covers individual accident and health
business for all periods presented and group and franchise accident and
health business since July 1, 1999. Either party may terminate the
agreement on January 1 of any year with prior notice. Prior to July 1,
1999 group and franchise accident and health business and a block of
group life insurance policies were ceded to ELOW under a modified
coinsurance agreement. Under a modified coinsurance agreement, invested
assets are retained by the ceding company and investment earnings are
paid to the reinsurer. Under the terms of the Company's agreements, the
investment risk associated with changes in interest rates is borne by
the reinsurer. Risk of asset default is retained by the Company,
although a fee is paid to the Company for the retention of such risk.
The ceding of risk does not discharge the original insurer from its
primary obligation to the policyholder. The Company believes that the
terms of the modified coinsurance agreements are consistent in all
material respects with what the Company could have obtained with
unaffiliated parties. Revenues ceded to NMIC and ELOW for the years
ended December 31, 1999, 1998 and 1997 were $193.0 million, $216.9
million, and $315.3 million, respectively, while benefits, claims and
expenses ceded were $216.9 million, $259.3 million, and $326.6 million,
respectively.
Pursuant to a cost sharing agreement among NMIC and certain of its
direct and indirect subsidiaries, including the Company, NMIC provides
certain operational and administrative services, such as sales support,
advertising, personnel and general management services, to those
subsidiaries. Expenses covered by such agreement are subject to
allocation among NMIC and such subsidiaries. Measures used to allocate
expenses among companies include individual employee estimates of time
spent, special cost studies, salary expense, commission expense and
other methods agreed to by the participating companies that are within
industry guidelines and practices. In addition, beginning in 1999
Nationwide Services Company, a subsidiary of NMIC, provides computer,
telephone, mail, employee benefits administration, and other services
to NMIC and certain of its direct and indirect subsidiaries, including
the Company, based on specified rates for units of service consumed.
For the years ended December 31, 1999, 1998 and 1997, the Company made
payments to NMIC and Nationwide Services Company totaling $124.1
million, $95.0 million, and $85.8 million, respectively. In addition,
the Company does not believe that expenses recognized under these
agreements are materially different than expenses that would have been
recognized had the Company operated on a stand-alone basis.
The Company leases office space from NMIC and certain of its
subsidiaries. For the years ended December 31, 1999, 1998 and 1997, the
Company made lease payments to NMIC and its subsidiaries of $9.9
million, $8.0 million and $8.4 million, respectively.
<PAGE> 24
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The Company also participates in intercompany repurchase agreements
with affiliates whereby the seller will transfer securities to the
buyer at a stated value. Upon demand or a stated period, the securities
will be repurchased by the seller at the original sales price plus a
price differential. Transactions under the agreements during 1999 and
1998 were not material. The Company believes that the terms of the
repurchase agreements are materially consistent with what the Company
could have obtained with unaffiliated parties.
The Company and various affiliates entered into agreements with
Nationwide Cash Management Company (NCMC), an affiliate, under which
NCMC acts as a common agent in handling the purchase and sale of
short-term securities for the respective accounts of the participants.
Amounts on deposit with NCMC were $411.7 million and $248.4 million as
of December 31, 1999 and 1998, respectively, and are included in
short-term investments on the accompanying consolidated balance sheets.
As part of certain restructuring activities that occurred prior to the
March 1997 IPO, the Company paid a dividend valued at $485.7 million to
Nationwide Corp. on January 1, 1997 consisting of the outstanding
shares of common stock of ELOW, National Casualty Company (NCC) and
West Coast Life Insurance Company (WCLIC). Also, on February 24, 1997,
the Company paid a dividend to NFS, and NFS paid an equivalent dividend
to Nationwide Corp., consisting of securities having an aggregate fair
value of $850.0 million. The Company recognized a gain of $14.4 million
on the transfer of securities.
Certain annuity products are sold through three affiliated companies,
which are also subsidiaries of NFS. Total commissions and fees paid to
these affiliates for the three years ended December 31, 1999 were $56.0
million, $60.0 million and $66.1 million, respectively.
(12) Bank Lines of Credit
NFS, NLIC and NMIC are parties to a $600.0 million revolving credit
facility which provides for a $600.0 million loan over a five year term
on a fully revolving basis with a group of national financial
institutions. The credit facility provides for several and not joint
liability with respect to any amount drawn by any party. NFS, NLIC and
NMIC pay facility and usage fees to the financial institutions to
maintain the revolving credit facility. As of December 31, 1999 the
Company had no amounts outstanding under the agreement.
(13) Contingencies
On October 29, 1998, the Company was named in a lawsuit filed in Ohio
state court related to the sale of deferred annuity products for use as
investments in tax-deferred contributory retirement plans (Mercedes
Castillo v. Nationwide Financial Services, Inc., Nationwide Life
Insurance Company and Nationwide Life and Annuity Insurance Company).
On May 3, 1999, the complaint was amended to, among other things, add
Marcus Shore as a second plaintiff. The amended complaint is brought as
a class action on behalf of all persons who purchased individual
deferred annuity contracts or participated in group annuity contracts
sold by the Company and the other named Company affiliates which were
used to fund certain tax-deferred retirement plans. The amended
complaint seeks unspecified compensatory and punitive damages. No class
has been certified. On June 11, 1999, the Company and the other named
defendants filed a motion to dismiss the amended complaint. On March 8,
2000, the court denied the motion to dismiss the amended complaint
filed by the Company and other named defendants. The Company intends to
defend this lawsuit vigorously.
(14) Segment Information
The Company uses differences in products as the basis for defining its
reportable segments. The Company reports three product segments:
Variable Annuities, Fixed Annuities and Life Insurance.
<PAGE> 25
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The Variable Annuities segment consists of annuity contracts that
provide the customer with access to a wide range of investment options,
tax-deferred accumulation of savings, asset protection in the event of
an untimely death, and flexible payout options including a lump sum,
systematic withdrawal or a stream of payments for life. The Company's
variable annuity products consist almost entirely of flexible premium
deferred variable annuity contracts.
The Fixed Annuities segment consists of annuity contracts that generate
a return for the customer at a specified interest rate fixed for a
prescribed period, tax-deferred accumulation of savings, and flexible
payout options including a lump sum, systematic withdrawal or a stream
of payments for life. Such contracts consist of single premium deferred
annuities, flexible premium deferred annuities and single premium
immediate annuities. The Fixed Annuities segment includes the fixed
option under variable annuity contracts.
The Life Insurance segment consists of insurance products, including
variable universal life insurance and corporate-owned life insurance
products, that provide a death benefit and may also allow the customer
to build cash value on a tax-deferred basis.
In addition to the product segments, the Company reports corporate
revenue and expenses, investments and related investment income
supporting capital not specifically allocated to its product segments,
revenues and expenses of its investment advisor subsidiary, revenues
and expenses related to group annuity contracts sold to Nationwide
Insurance employee and agent benefit plans and all realized gains and
losses on investments in a Corporate and Other segment.
During 1999 the Company revised the allocation of net investment income
among its Life Insurance and Corporate and Other segments. Also,
certain amounts previously reported as other income were reclassified
to operating expense. Amounts reported for prior periods have been
restated to reflect these changes.
The following table summarizes the financial results of the Company's
business segments for the years ended December 31, 1999, 1998 and 1997.
<TABLE>
<CAPTION>
Variable Fixed Life Corporate
(in millions) Annuities Annuities Insurance and Other Total
------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
1999:
Net investment income (1) $ (41.5) $ 1,134.5 $ 253.1 $ 174.7 $ 1,520.8
Other operating revenue 668.2 43.4 393.0 77.8 1,182.4
--------- --------- -------- -------- ---------
Total operating revenue (2) 626.7 1,177.9 646.1 252.5 2,703.2
--------- --------- -------- -------- ---------
Interest credited to policyholder
account balances -- 837.5 130.5 128.3 1,096.3
Amortization of deferred policy
acquisition costs 162.8 49.7 60.1 -- 272.6
Other benefits and expenses 173.6 113.5 334.7 94.4 716.2
--------- --------- -------- -------- ---------
Total expenses 336.4 1,000.7 525.3 222.7 2,085.1
--------- --------- -------- -------- ---------
Operating income before
federal income tax 290.3 177.2 120.8 29.8 618.1
Realized losses on investments -- -- -- (11.6) (11.6)
--------- --------- -------- -------- ---------
Consolidated income before
federal tax expense $ 290.3 $ 177.2 $ 120.8 $ 18.2 $ 606.5
========= ========= ======== ======== =========
Assets as of year end $62,599.7 $17,134.8 $6,616.7 $6,324.7 $92,675.9
========= ========= ======== ======== =========
</TABLE>
<PAGE> 26
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
<TABLE>
<CAPTION>
Variable Fixed Life Corporate
(in millions) Annuities Annuities Insurance and Other Total
------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
1998:
Net investment income (1) $ (31.3) $ 1,116.6 $ 225.6 $ 170.7 $ 1,481.6
Other operating revenue 532.9 35.7 318.5 78.6 965.7
--------- --------- -------- -------- ---------
Total operating revenue (2) 501.6 1,152.3 544.1 249.3 2,447.3
--------- --------- -------- -------- ---------
Interest credited to policyholder
account balances -- 828.6 115.4 125.0 1,069.0
Amortization of deferred policy
acquisition costs 123.9 44.2 46.4 -- 214.5
Other benefits and expenses 159.3 104.2 293.5 78.1 635.1
--------- --------- -------- -------- ---------
Total expenses 283.2 977.0 455.3 203.1 1,918.6
--------- --------- -------- -------- ---------
Operating income before federal
income tax 218.4 175.3 88.8 46.2 528.7
Realized gains on investments -- -- -- 28.4 28.4
--------- --------- -------- -------- ---------
Consolidated income before
federal tax expense $ 218.4 $ 175.3 $ 88.8 $ 74.6 $ 557.1
========= ========= ======== ======== =========
Assets as of year end $47,668.7 $15,215.7 $5,187.6 $6,270.1 $74,342.1
========= ========= ======== ======== =========
1997:
Net investment income (1) $ (26.8) $ 1,098.2 $ 184.9 $ 152.9 $ 1,409.2
Other operating revenue 413.9 43.2 283.4 56.6 797.1
--------- --------- -------- -------- ---------
Total operating revenue (2) 387.1 1,141.4 468.3 209.5 2,206.3
--------- --------- -------- -------- ---------
Interest credited to policyholder
account balances -- 823.4 78.5 114.7 1,016.6
Amortization of deferred policy
acquisition costs 87.8 39.8 39.6 -- 167.2
Benefits and expenses 148.4 108.7 283.5 63.1 603.7
--------- --------- -------- -------- ---------
Total expenses 236.2 971.9 401.6 177.8 1,787.5
--------- --------- -------- -------- ---------
Operating income before federal
income tax 150.9 169.5 66.7 31.7 418.8
Realized gains on investments -- -- -- 11.1 11.1
--------- --------- -------- -------- ---------
Consolidated income before
federal tax expense $ 150.9 $ 169.5 $ 66.7 $ 42.8 $ 429.9
========= ========= ======== ======== =========
Assets as of year end $35,278.7 $14,436.3 $3,901.4 $6,174.3 $59,790.7
========= ========= ======== ======== =========
</TABLE>
----------
(1) The Company's method of allocating net investment income results in
a charge (negative net investment income) to the Variable Annuities
segment which is recognized in the Corporate and Other segment. The
charge relates to non-invested assets which support this segment on
a statutory basis.
(2) Excludes realized gains and losses on investments.
The Company has no significant revenue from customers located outside
of the United States nor does the Company have any significant
long-lived assets located outside the United States.
<PAGE> 160
PART C. OTHER INFORMATION
Item 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements:
(1) Financial statements included in Prospectus.
(Part A):
Condensed Financial Information.
in Part B:
Those financial statements required by Item 23 to be
included in Part B have been incorporated therein by
reference to the Prospectus(Part A).
Nationwide Variable Account-9:
Independent Auditors' Report.
Statement of Assets, Liabilities and Contract Owners' Equity
as of December 31, 1999.
Statements of Operations for the years ended December 31,
1999 and 1998.
Statements of Changes in Contract Owners' Equity for the
years ended December 31, 1999 and 1998.
Notes to Financial Statements.
Nationwide Life Insurance Company and subsidiaries:
Independent Auditors' Report.
Consolidated Balance Sheets as of December 31, 1999 and 1998.
Consolidated Statements of Income for the years ended
December 31, 1999, 1998 and 1997.
Consolidated Statements of Shareholder's Equity for the
years ended December 31, 1999, 1998 and 1997.
Consolidated Statements of Cash Flows for the years ended
December 31, 1999, 1998 and 1997.
Notes to Consolidated Financial Statements.
<PAGE> 161
Item 24. (b) Exhibits
(1) Resolution of the Depositor's Board of Directors
authorizing the establishment of the Registrant - Filed
previously with this Registration Statement (File No.
333-53023) and incorporated by reference.
(2) Not Applicable
(3) Underwriting or Distribution of contracts between the
Registrant and Principal Underwriter - Filed previously
with this Registration Statement (File No. 333-53023)
and incorporated by reference.
(4) The form of the variable annuity contract - Filed
previously with this Registration Statement (File No.
333-53023) and incorporated by reference.
(5) Variable Annuity Application - Filed previously with
this Registration Statement (File No. 333-53023) and
incorporated by reference.
(6) Articles of Incorporation of Depositor - Filed
previously with this Registration Statement (File No.
333-53023) and incorporated by reference.
(7) Not Applicable
(8) Not Applicable
(9) Opinion of Counsel - Filed previously with this
Registration Statement (File No. 333-53023) and
incorporated by reference.
(10) Not Applicable
(11) Not Applicable
(12) Not Applicable
(13) Performance Advertising Calculation
Schedule - Filed previously with this Registration
Statement (File No. 333-53023) and incorporated by
reference.
Item 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
Lewis J. Alphin Director
519 Bethel Church Road
Mount Olive, NC 28365-6107
A. I. Bell Director
4121 North River Road West
Zanesville, OH 43701
Nancy C. Breit Director
1767D Westwood Avenue
Alliance, OH 44601
Yvonne M. Curl Director
Xerox Corporation
Suite 200
1401 H Street NW
Washington, DC 20005-2110
<PAGE> 162
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
<S> <C> <C>
Kenneth D. Davis Director
7229 Woodmansee Road
Leesburg, OH 45135
Keith W. Eckel Director
1647 Falls Road
Clarks Summit, PA 18411
Willard J. Engel Director
301 East Marshall Street
Marshall, MN 56258
Fred C. Finney Director
1558 West Moreland Road
Wooster, OH 44691
Joseph J. Gasper President and Chief Operating Officer
One Nationwide Plaza and Director
Columbus, OH 43215
W. G. Jurgensen Chief Executive Officer
One Nationwide Plaza and Director
Columbus, OH 43215
Dimon R. McFerson Chairman and
One Nationwide Plaza Director
Columbus, OH 43215
David O. Miller Chairman of the Board and Director
115 Sprague Drive
Hebron, OH 43025
Ralph M. Paige Director
Federation of Southern
Cooperatives/Land Assistance Fund
2769 Church Street
East Point, GA 30344
James F. Patterson Director
8765 Mulberry Road
Chesterland, OH 44026
Arden L. Shisler Director
1356 North Wenger Road
Dalton, OH 44618
Robert L. Stewart Director
88740 Fairview Road
Jewett, OH 43986
Richard D. Headley Executive Vice President
One Nationwide Plaza
Columbus, OH 43215
</TABLE>
<PAGE> 163
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
<S> <C> <C>
Michael S. Helfer Executive Vice President -
One Nationwide Plaza Corporate Strategy
Columbus, OH 43215
Donna A James Executive Vice President -
One Nationwide Plaza Chief Administrative Officer
Columbus, OH 43215
Robert A. Oakley Executive Vice President -
One Nationwide Plaza Chief Financial Officer
Columbus, OH 43215
Robert J. Woodward, Jr. Executive Vice President -
One Nationwide Plaza Chief Investment Officer
Columbus, OH 43215
Charles A. Bryan Senior Vice President -
One Nationwide Plaza Chief Actuary - Property and Casualty
Columbus, OH 43215
John R. Cook, Jr. Senior Vice President -
One Nationwide Plaza Chief Communications Officer
Columbus, OH 43215
Thomas L. Crumrine Senior Vice President
One Nationwide Plaza
Columbus, OH 43215
David A. Diamond Senior Vice President -
One Nationwide Plaza Corporate Controller
Columbus, OH 43215
Philip C. Gath Senior Vice President -
One Nationwide Plaza Chief Actuary - Nationwide Financial
Columbus, OH 43215
Patricia R. Hatler Senior Vice President,
One Nationwide Plaza General Counsel and Secretary
Columbus, OH 43215
David K. Hollingsworth Senior Vice President -
One Nationwide Plaza Business Development and
Columbus, OH 43215 Sponsor Relations
David R. Jahn Senior Vice President -
One Nationwide Plaza Project Management
Columbus, OH 43215
Richard A. Karas Senior Vice President - Sales -
One Nationwide Plaza Financial Services
Columbus, OH 43215
</TABLE>
<PAGE> 164
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
<S> <C> <C>
Gregory S. Lashutka Senior Vice President -
One Nationwide Plaza Corporate Relations
Columbus, OH 43215
Edwin P. McCausland, Jr. Senior Vice President -
One Nationwide Plaza Fixed Income Securities
Columbus, OH 43215
Mark D. Phelan Senior Vice President -
One Nationwide Plaza Chief Technology Officer
Columbus, OH 43215
Douglas C. Robinette Senior Vice President -
One Nationwide Plaza Claims
Columbus, OH 43215
Mark R. Thresher Senior Vice President -
One Nationwide Plaza Finance - Nationwide Financial
Columbus, OH 43215
Richard M. Waggoner Senior Vice President -
One Nationwide Plaza Operations
Columbus, OH 43215
Susan A. Wolken Senior Vice President - Product
One Nationwide Plaza Management and Nationwide
Columbus, OH 43215 Financial Marketing
</TABLE>
Item 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT.
* Subsidiaries for which separate financial statements are
filed
** Subsidiaries included in the respective consolidated
financial statements
*** Subsidiaries included in the respective group financial
statements filed for unconsolidated subsidiaries
**** other subsidiaries
<PAGE> 165
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
The 401(k) Companies, Inc. Texas Holding Company
The 401(k) Company Texas Third-party administrator for 401(k)
plans
401(k) Investment Advisors, Inc. Texas Investment advisor registered with the
SEC
401(k) Investments Services, Inc. Texas NASD registered broker-dealer
Affiliate Agency, Inc. Delaware Insurance agency marketing life
insurance & annuity products through
financial institutions
Affiliate Agency of Ohio, Inc. Ohio Insurance agency marketing life
insurance & annuity products through
financial institutions
AID Finance Services, Inc. Iowa Holding Company
ALLIED General Agency Company Iowa Managing general agent and surplus
lines broker for property & casualty
insurance products
ALLIED Group, Inc. Iowa Property & casualty holding company
ALLIED Group Insurance Marketing Iowa Direct marketer for property and
Company casualty insurance products
ALLIED Group Merchant Banking Iowa Broker-Dealer
Corporation
ALLIED Property and Casualty Insurance Iowa Underwrites general property &
Company casualty insurance
Allnations, Inc. Ohio Promotes international cooperative
insurance organizations
AMCO Insurance Company Iowa Underwrites general property &
casualty insurance
American Marine Underwriters, Inc. Florida Underwriting manager for ocean cargo
and bulk insurance
Auto Direkt Insurance Company Germany Insurance Company
Cal-Ag Insurance services, Inc. California Captive insurance brokerage firm
CalFarm Insurance Agency California Former marketing company for
traditional agent producers of CalFarm
Insurance Company
CalFarm Insurance Company California Multi-line insurance company
Caliber Funding Delaware A limited purpose corporation
Colonial County Mutual Insurance Texas Insurance Company
Company
Columbus Insurance Brokerage and Germany General service insurance broker
Service GmbH
</TABLE>
<PAGE> 166
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Cooperative Service Company Nebraska Insurance agency that sells and
services commercial insurance
Depositors Insurance Company Iowa Underwrites property & casualty
insurance
eNationwide, LLC Ohio A limited liability company to provide
administrative services to
Nationwide's direct operations
Excaliber Funding Corporation Delaware Limited purpose corporation
F&B, Inc. Iowa Insurance Agency
Farmland Mutual Insurance Company Iowa Mutual Insurance Company
Financial Horizons Distributors Agency Alabama Insurance agency marketing life
of Alabama, Inc. insurance and annuity products through
financial institutions
Financial Horizons Distributors Agency Ohio Insurance marketing life insurance and
of Ohio, Inc. annuity products through financial
institutions
Financial Horizons Distributors Agency Oklahoma Insurance marketing life insurance and
of Oklahoma, Inc. annuity products through financial
institutions
Financial Horizons Distributors Agency Texas Insurance marketing life insurance and
of Texas, Inc. annuity products through financial
institutions
*Financial Horizons Investment Trust Massachusetts Diversified, open-end investment
company
Financial Horizons Securities Oklahoma Limited broker-dealer doing business
Corporation solely in the financial institution
market
GatesMcDonald Health Plus Inc. Ohio Managed Care Organization
Gates, McDonald & Company Ohio Services employers for managing
workers' and unemployment compensation
matters
Gates, McDonald & Company of Nevada Nevada Self-insurance administration, claims
examinations and data processing
services
Gates, McDonald & Company of New York, New York Workers' compensation/self-insured
Inc. claims administration services to
employers with exposure in New York
Insurance Intermediaries, Inc. Ohio Insurance agency providing commercial
property & casualty brokerage services
Irvin L. Schwartz and Associates, Inc. Ohio Insurance Agency
Landmark Financial Services of New New York Insurance agency marketing life
York, Inc. insurance and annuity products through
financial institutions
Leben Direkt Insurance Company Germany Life insurance through direct mail
</TABLE>
<PAGE> 167
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Lone Star General Agency, Inc. Texas General agent to market non-standard
automobile and motorcycle insurance
for Colonial Mutual Insurance Company
MedProSolutions, Inc. Massachusetts Provides third-party administration
services for workers compensation,
automobile injury and disability claims
Midwest Printing Services, Ltd. Iowa General printing services
Morley & Associates, Inc. Oregon Insurance brokerage
Morley Capital Management, Inc. Oregon Investment adviser and stable value
money management
Morley Financial Services, Inc. Oregon Holding Company
Morley Research Associates, Ltd. Delaware Credit research consulting
**MRM Investments, Inc. Ohio Owns and operates a recreational ski
facility
**National Casualty Company Wisconsin Insurance Company
National Casualty Company of America, England Insurance Company
Ltd.
National Deferred Compensation, Inc. Ohio Administers deferred compensation
plans for public employees
**National Premium and Benefit Delaware Provides third-party administration
Administration Company services
Nationwide Advisory Services, Inc. Ohio Registered broker-dealer providing
investment management and
administrative services
**Nationwide Agency, Inc. Ohio Insurance Agency
Nationwide Agribusiness Insurance Iowa Provides property & casualty insurance
Company primarily to agricultural business
Nationwide Arena, LLC Ohio A limited liability company related to
arena development
*Nationwide Asset Allocation Trust Ohio Diversified open-end investment company
Nationwide Assurance Company Wisconsin Underwrites non-standard automobile
and motorcycle insurance
Nationwide Cash Management Company Ohio Investment Securities Agent
</TABLE>
<PAGE> 168
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Nationwide Corporation Ohio Holding company for entities
affiliated with Nationwide Mutual
Insurance Company
Nationwide Exclusive Distribution Ohio A limited liability company providing
Company, LLC agency support services to Nationwide
exclusive agents
Nationwide Financial Assignment Company Ohio An assignment company to administer
structured settlement business
Nationwide Financial Institution Delaware Insurance Agency
Distributors Agency, Inc.
Nationwide Financial Institution New Mexico Insurance Agency
Distributors Agency, Inc. of New Mexico
Nationwide Financial Institution Massachusetts Insurance Agency
Distributors Agency, Inc. of
Massachusetts
Nationwide Financial Services Bermuda Long-term insurer which issued
(Bermuda) Ltd. variable annuity and variable life
products to persons outside the U.S. &
Bermuda
Nationwide Financial Services Capital Delaware Trust which issues and sells
Trust securities & uses proceeds to acquire
debentures
Nationwide Financial Services Capital Delaware Trust which issues and sells
Trust II securities & uses proceeds to acquire
debentures
Nationwide Financial Services, Inc. Delaware Holding Company for entities
associated with Nationwide Mutual
Insurance Company
Nationwide Foundation Ohio Not-for profit corporation
Nationwide General Insurance Company Ohio Primarily provides automobile and fire
insurance to select customers
Nationwide Global Finance, LLC Ohio Act as a support company for
Nationwide Global Holdings, Inc. & its
international capitalization efforts
Nationwide Global Funds Cayman Islands Exempted company with limited
liability for purpose of issuing
investment shares to segregated asset
accounts of Nationwide Financial
Services (Bermuda) Ltd. and to
non-U.S. resident investors
Nationwide Global Holdings, Inc. Ohio Holding Company for Nationwide
Insurance Enterprise international
operations
Nationwide Global Holdings, Inc.-NGH Grand Duchy of Analyze European market of life
Luxembourg Branch Luxembourg insurance
</TABLE>
<PAGE> 169
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Nationwide Global Holdings-Hong Kong, Hong Kong Primarily a holding company for
Limited Nationwide Global Holdings, Inc. Asian
operations
Nationwide Global Holdings-NGH Brasil Brazil Holding company
Participacoes LTDA
Nationwide Health Plans, Inc. Ohio Health insuring organization
Nationwide Home Mortgage Company Iowa Mortgage lendor
*Nationwide Indemnity Company Ohio Reinsurance company assuming business
from Nationwide Mutual Insurance
Company and other insurers within the
Nationwide Insurance Enterprise
Nationwide Insurance Company of America Wisconsin Independent agency personal lines
underwriter of property & casualty
insurance
Nationwide Insurance Company of Florida Ohio Transacts general insurance business
except life insurance
Nationwide Insurance Golf Charities, Ohio Not-for-profit corporation
Inc.
Nationwide International Underwriters California Special risks, excess & surplus lines
underwriting manager
Nationwide Investing Foundation Michigan Provide investors with continuous
source of investment under management
of trustees
*Nationwide Investing Foundation II Massachusetts Diversified, open-end investment
company
Nationwide Investment Services Oklahoma Registered broker-dealer
Corporation
Nationwide Investors Services, Inc. Ohio Stock Transfer Agent
**Nationwide Life and Annuity Ohio Life Insurance Company
Insurance Company
**Nationwide Life Insurance Company Ohio Life Insurance Company
Nationwide Lloyds Texas Commercial property insurance in Texas
Nationwide Management Systems, Inc. Ohio Preferred provider organization,
products and related services
Nationwide Mutual Fire Insurance Ohio Mutual Insurance Company
Company
*Nationwide Mutual Funds Ohio Diversified, open-end investment
company
Nationwide Mutual Insurance Company Ohio Mutual Insurance Company
</TABLE>
<PAGE> 170
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Nationwide Properties, Ltd. Ohio Develop, own and operate real estate
and real estate investments
Nationwide Property and Casualty Ohio Insurance Company
Insurance Company
Nationwide Realty Investors, Inc. Ohio Develop, own and operate real estate
and real estate investments
Nationwide Retirement Solutions, Inc. Delaware Market and administer deferred
compensation plans for public employees
Nationwide Retirement Solutions, Inc. Alabama Market and administer deferred
of Alabama compensation plans for public employees
Nationwide Retirement Solutions, Inc. Arizona Market and administer deferred
of Arizona compensation plans for public employees
Nationwide Retirement Solutions, Inc. Arkansas Market and administer deferred
of Arkansas compensation plans for public employees
Nationwide Retirement Solutions, Inc. Montana Market and administer deferred
of Montana compensation plans for public employees
Nationwide Retirement Solutions, Inc. Nevada Market and administer deferred
of Nevada compensation plans for public employees
Nationwide Retirement Solutions, Inc. New Mexico Market and administer deferred
of New Mexico compensation plans for public employees
Nationwide Retirement Solutions, Inc. Ohio Market variable annuity contracts to
of Ohio members of the National Education
Association in the state of Ohio
Nationwide Retirement Solutions, Inc. Oklahoma Market variable annuity contracts to
of Oklahoma members of the National Education
Association in the state of Oklahoma
Nationwide Retirement Solutions, Inc. South Dakota Market and administer deferred
of South Dakota compensation plans for public employees
Nationwide Retirement Solutions, Inc. Texas Market and administer deferred
of Texas compensation plans for public employees
Nationwide Retirement Solutions, Inc. Wyoming Market variable annuity contracts to
of Wyoming members of the National Education
Association in the state of Wyoming
</TABLE>
<PAGE> 171
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Nationwide Retirement Solutions Massachusetts Market and administer deferred
Insurance Agency Inc. compensation plans for public employees
Nationwide Seguradora S.A. Brazil Engage in elementary, health & life
insurance; private open pension and
wealth concession plans
*Nationwide Separate Account Trust Massachusetts Diversified, open-end investment
company
Nationwide Services Company, LLC. Ohio Single member limited liability
company performing shared services
functions for the Nationwide Insurance
Enterprise
Nationwide Trust Company, FSB United States Federal savings bank chartered by the
Office of Thrift Supervision in U.S.
Department of Treasury to exercise
custody & fiduciary powers
Neckura Holding Company Germany Administrative services for Neckura
Insurance Group
Neckura Insurance Company Germany Insurance Company
Neckura Life Insurance Company Germany Life and health insurance company
Nevada Independent Nevada Workers' compensation administrative
Companies-Construction services to Nevada employers in the
construction industry
Nevada Independent Companies-Health Nevada Workers' compensation administrative
and Nonprofit services to Nevada employers in health
& nonprofit industries
Nevada Independent Companies- Nevada Workers' compensation administrative
Hospitality and Entertainment services to Nevada employers in the
hospitality & entertainment industries
Nevada Independent Companies- Nevada Workers' compensation administrative
Manufacturing, Transportation and services to Nevada employers in the
Distribution manufacturing, transportation and
distribution industries
NFS Distributors, Inc. Delaware Holding company for Nationwide
Financial Services, Inc. distribution
companies
NGH Luxembourg, S.A Luxembourg Acts primarily as holding company for
Nationwide Global Holdings, Inc.
European operations
NGH Netherlands, B.V. The Netherlands Holding company for other overseas
companies
</TABLE>
<PAGE> 172
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
NGH UK, Ltd. United Kingdom Assist Nationwide Global Holdings,
Inc. with European operations and
marketing
Northpointe Capital LLC Delaware Limited liability company for
investments
PanEuroLife Luxembourg Life Insurance company providing
individual life insurance primarily in
the UK, Belgium and France
Pension Associates, Inc. Wisconsin Pension plan administration and record
keeping services
Portland Investment Services, Inc. Oregon NASD registered broker-dealer
Premier Agency, Inc. Iowa Insurance Agency
Riverview Agency, Inc. Texas Has a pending application to become a
licensed insurance agency with the
Texas Department of Insurance
Scottsdale Indemnity Company Ohio Insurance Company
Scottsdale Insurance Company Ohio Insurance Company
Scottsdale Surplus Lines Insurance Arizona Provides excess and surplus lines
Company insurance coverage on a non-admitted
basis
SVM Sales GmbH, Neckura Insurance Group Germany Recruits and supervises external sales
partners who obtain new business for
the Neckura Group as well as to offer
financial services
Union Bond & Trust Company Oregon Oregon state bank with trust powers
Villanova Capital, Inc. Delaware Holding Company
Villanova Mutual Fund Capital Trust Delaware Trust designed to act as a registered
investment advisor
Villanova SA Capital Trust Delaware Trust designed to act as a registered
investment advisor
Western Heritage Insurance Company Arizona Underwrites excess and surplus lines
of property and casualty insurance
</TABLE>
<PAGE> 173
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
* MFS Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* NACo Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide DC Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
Nationwide DCVA-II Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Separate Account No. 1 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Multi-Flex Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide VA Separate Account-A Ohio Nationwide Life and Annuity Issuer of Annuity Contracts
Separate Account
* Nationwide VA Separate Account-B Ohio Nationwide Life and Annuity Issuer of Annuity Contracts
Separate Account
* Nationwide VA Separate Account-C Ohio Nationwide Life and Annuity Issuer of Annuity Contracts
Separate Account
* Nationwide VA Separate Account-D Ohio Nationwide Life and Annuity Issuer of Annuity Contracts
Separate Account
* Nationwide Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-II Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-3 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-4 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-5 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-6 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Fidelity Advisor Variable Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account Account
* Nationwide Variable Account-8 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-9 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-10 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
Nationwide Variable Account-11 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
</TABLE>
<PAGE> 174
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
* Nationwide VL Separate Account-A Ohio Nationwide Life and Annuity Issuer of Life Insurance
Separate Account Policies
Nationwide VL Separate Account-B Ohio Nationwide Life and Annuity Issuer of Life Insurance
Separate Account Policies
* Nationwide VL Separate Account-C Ohio Nationwide Life and Annuity Issuer of Life Insurance
Separate Account Policies
* Nationwide VL Separate Account -D Ohio Nationwide Life and Annuity Issuer of Life Insurance
Separate Account Policies
* Nationwide VLI Separate Account Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
* Nationwide VLI Separate Account-2 Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
* Nationwide VLI Separate Account-3 Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
* Nationwide VLI Separate Account-4 Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
Nationwide VLI Separate Account-5 Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
</TABLE>
<PAGE> 175
<TABLE>
<CAPTION>
(left side)
<S> <C> <C> <C>
------------------------
| NATIONWIDE INSURANCE |
| GOLF CHARITIES, INC. |
| |
| MEMBERSHIP |
| NONPROFIT |
| CORPORATION |
------------------------
-------------------------------------------------------------------------------------------------------------------------
| |
--------------------------- --------------------------- ----------------------------
| CARIBBEAN ALLIANCE | | ALLIED | | |
| INSURANCE COMPANY | | GROUP, INC. | | |
| | | (AGI) | | NATIONWIDE LLOYDS |
| | | | | |
|Common Stock: 1,900,000 | |-------|Common Stock: 850 Shares |---| | |
|------------ Shares | | |------------ | | | A TEXAS LLOYDS |================================
| | | | | | | |
| Cost | | | Cost | | | |
| ---- | | | ---- | | | |
|Casualty- | | |Casualty- | | | |
|99.99% $19,000,000 | | |100% $1,243,344,521| | | |
--------------------------- | --------------------------- | ----------------------------
| |
--------------------------- | --------------------------- | ----------------------------
| NATIONWIDE INSURANCE | | | AMCO | | | DEPOSITORS |
| COMPANY OF AMERICA | | | INSURANCE COMPANY | | | INSURANCE COMPANY |
| | | | (AMCO) | | | (DEPOSITORS) |
|Common Stock: 12,000 | | |Common Stock: 300,000 | | |Common Stock: 300,000 |
|------------ Shares | | |------------ Shares | | |------------ Shares |
| |---| | |---|---| |
| Cost | | | Cost | | | Cost |
| ---- | | | ---- | | | ---- |
| | | | | | | |
|AGI-100% $215,273,000 | | |AGI-100% $147,425,540| | |AGI-100% $22,251,842 |
--------------------------- | --------------------------- | ----------------------------
| | |
--------------------------- | --------------------------- | ----------------------------
| AID FINANCE | | | ALLIED | | | ALLIED PROPERTY |
| SERVICES, INC. | | | GENERAL AGENCY | | | AND CASUALTY |
| (AID FINANCE) | | | COMPANY | | | INSURANCE COMPANY |
|Common Stock: 10,000 | | |Common Stock: 5,000 | | |Common Stock: 300,000 |
|------------ Shares | | |------------ Shares | | |------------ Shares |
| |---| | | |---| |
| Cost | | Cost | | | Cost |
| ---- | | ---- | | | ---- |
|AGI-100% $19,545,634| |AMCO-100% $135,342 | | |AGI-100% $47,018,643 |
--------------------------- --------------------------- | ----------------------------
| |
--------------------------- --------------------------- | ----------------------------
| ALLIED | | ALLIED | | | NATIONWIDE |
| GROUP INSURANCE | | DOCUMENT SOLUTIONS, | | | HOME MORTGAGE |
| MARKETING COMPANY | | INC. | | | COMPANY (NHMC) |
| | |Common Stock: 10,000 | | | |
|Common Stock: 20,000 | |------------ Shares | | |Common Stock: 54,348 |
|------------ Shares | | |---|---|------------ Shares |
| | | | | | |
| | | | | | |
| | | | | | |
| Cost | | Cost | | | |
| ---- | | ---- | | | |
| Aid | |AGI-100% $610,000 | | |AGI-88.9% |
| Finance-100% $16,059,469| --------------------------- | ----------------------------
-------------------------- | |
--------------------------- | ----------------------------
| PREMIER | | | AGMC |
| AGENCY, | | | REINSURANCE, LTD. |
| INC. | | | |
|Common Stock: 100,000 | | |Common Stock: 11,000 |
|------------ Shares | | |------------ Shares |
| |---| | |
| Cost | | | Cost |
| ---- | | | ---- |
|AGI-100% $100,000 | | |NHMC-100% $11,000 |
--------------------------- | ----------------------------
|
--------------------------- | ----------------------------
| ADVANCED BUSINESS | | | WESTERN |
| SERVICES, INC. | | | HERITAGE INSURANCE |
| | | | COMPANY |
|Common Stock: 1,000 | | | |
|------------ Shares | | |Common Stock: 4,776,076 |--------------------------------
| |---| |------------- Shares |
| Cost | | |
| ---- | | Cost |
|AGI-100% $1,500,000 | | ---- |
| | |SIC-100% $57,000,000 |
--------------------------- ----------------------------
</TABLE>
<PAGE> 176
<TABLE>
<CAPTION>
NATIONWIDE(R) (middle)
<S> <C> <C>
------------------------------------------ ------------------------------------------
| | | |
| NATIONWIDE MUTUAL | | NATIONWIDE MUTUAL |
| INSURANCE COMPANY |==============================================| FIRE INSURANCE COMPANY |
| (CASUALTY) | | (FIRE) |
| | | |
------------------------------------------ ------------------------------------------
| || | |
--| || |--------------------------------------------------------------------| |-----------------------
|| |
|| |--------------------------------------------------------------|-------------------
|| | |
|| -------------------------------- | -------------------------------- --------------------------------
|| | FARMLAND MUTUAL | | | NATIONWIDE GENERAL | | NECKURA HOLDING |
|| | INSURANCE COMPANY | | | INSURANCE COMPANY | | COMPANY (NECKURA) |
|| |Guaranty Fund | | | | | |
=====||==|------------ |---| | |Common Stock: 20,000 | |Common Stock: 10,000 |
|Certificate | | |---|------------ Shares | |--|------------ Shares |
|----------- | | | | | | | |
| Cost | | | | Cost | | | Cost |
| ---- | | | | ---- | | | ---- |
|Casualty $500,000 | | | |Casualty-100% $5,944,422 | | |Casualty-100% $142,943,140 |
-------------------------------- | | -------------------------------- | --------------------------------
| | |
-------------------------------- | | -------------------------------- | --------------------------------
| F & B, INC. | | | | NATIONWIDE PROPERTY | | | NECKURA |
| | | | | AND CASUALTY | | | INSURANCE COMPANY |
|Common Stock: 1 Share | | | | INSURANCE COMPANY | | | |
|------------ | | | |Common Stock: 60,000 | |--|Common Stock: 6,000 |
| |---| |---|------------ Shares | | |------------ Shares |
| Cost | | | | | | | |
| ---- | | | | Cost | | | Cost |
|Farmland | | | | ---- | | | ---- |
|Mutual-100% $10 | | | |Casualty-100% $6,000,000 | | |Neckura-100% DM 6,000,000 |
-------------------------------- | | -------------------------------- | --------------------------------
| | |
-------------------------------- | | -------------------------------- | --------------------------------
| COOPERATIVE SERVICE | | | | NATIONWIDE ASSURANCE | | | NECKURA LIFE |
| COMPANY | | | | COMPANY | | | INSURANCE COMPANY |
|Common Stock: 600 Shares | | | | | | | |
|------------ |---- |---|Common Stock: 1,750 | |--|Common Stock: 4,000 |
| | | |------------ Shares | | |------------ Shares |
| Cost | | | | |
| ---- | | | Cost | | | Cost |
|Farmland | | | ---- | | | ---- |
|Mutual-100% $3,506,173 | | |Casualty-100% $41,750,000 | | |Neckura-100% DM 15,825,681|
-------------------------------- | -------------------------------- | --------------------------------
| |
-------------------------------- | -------------------------------- | --------------------------------
| SCOTTSDALE | | | NATIONWIDE AGRIBUSINESS | | | COLUMBUS INSURANCE |
| INSURANCE COMPANY | | | INSURANCE COMPANY | | | BROKERAGE AND SERVICE |
| (SIC) | | | | | | GMBH |
|Common Stock: 30,136 | | |Common Stock: 1,000,000 | | |Common Stock: 1 Share |
|---|------------ Shares |--------|---|------------ Shares | |--|------------ |
| | | | | | | | |
| | | | | Cost | | | Cost |
| | Cost | | | ---- | | | ---- |
| | ---- | | |Casualty-99.9% $26,714,335 | | |Neckura-100% DM 51,639 |
| |Casualty-100% $150,000,500 | | |Other Capital | | | |
| | | | |------------- | | | |
| | | | |Casualty-Ptd. $713,576 | | | |
| -------------------------------- | ------------------------------- | --------------------------------
| | |
| -------------------------------- | -------------------------------- | --------------------------------
| | SCOTTSDALE | | | NATIONAL CASUALTY | | | LEBEN DIREKT |
| | SURPLUS LINES | | | COMPANY | | | INSURANCE COMPANY |
| | INSURANCE COMPANY | | | (NC) | | | |
| |Common Stock: 10,000 | | | Common Stock: 100 Shares | | |Common Stock: 4,000 Shares |
|---|------------ Shares | |---| ------------- | |--|------------ |
| | | | | | | | |
| | Cost | | | Cost | | | Cost |
| | ---- | | | ---- | | | ---- |
| |SIC-100% $6,000,000 | | |Casualty-100% $67,442,439 | | |Neckura-100% DM 4,000,000 |
| | | | | | | | |
| -------------------------------- | -------------------------------- | --------------------------------
| | | |
| -------------------------------- | -------------------------------- | --------------------------------
| | NATIONAL PREMIUM & | | | NCC OF AMERICAN, LTD. | | | AUTO DIREKT |
| | BENEFIT ADMINISTRATION | | | (INACTIVE) | | | INSURANCE COMPANY |
| | COMPANY | | | | | | |
| |Common Stock: 10,000 | | | | | |Common Stock: 1500 Shares |
---|---|------------ Shares | | | | |--|------------ |
| | | | | | | |
| Cost | | | | | | Cost |
| ---- | | | | | | ---- |
|SIC-100% $10,000 | | |NC-100% | | |Neckura-100% DM 1,643,149 |
-------------------------------- | -------------------------------- | --------------------------------
| |
-------------------------------- | -------------------------------- | --------------------------------
| RP&C | | | SUN DIRECT | | | SVM SALES |
| INTERNATIONAL | | | VERSICHERUNGS - | | | GMBH |
| | | | AKTIENGESCLISCHAFT | | | |
|Common Stock: 1,000 | | |Common Stock: 1 Share | | |Common Stock: 50 Shares |
|------------ Shares |--------- |------------ |------------|------------ |
| | | | | |
| Cost | | Cost | | Cost |
| ---- | | ---- | | ---- |
|Casualty-20.3% $2,400,740 | |Neckura-100% $9,600,000 | |Neckura-100% DM 50,000 |
| | | EURO | | |
-------------------------------- -------------------------------- --------------------------------
</TABLE>
<PAGE> 177
<TABLE>
<CAPTION>
(right side)
<S> <C> <C> <C>
------------------------
| NATIONWIDE |
| FOUNDATION |
| |
| MEMBERSHIP |
| NONPROFIT |
| CORPORATION |
------------------------
---------------------------------------------------------------------------------------------------------------------|
|
--------------------------------------------------------------------------------------------------------------- |
| | | | |
| | | | |
| -------------------------------- | -------------------------------- | -------------------------------------
| | SCOTTSDALE | | | NATIONWIDE CASH | | | NATIONWIDE |
| | INDEMNITY COMPANY | | | MANAGEMENT COMPANY | | | CORPORATION |
| | | | | | | | |
| | | | | | | |Common Stock: Control: |
| |Common Stock: 50,000 | | |Common Stock: 100 Shares | | |------------ ------- |
|-----|------------ Shares | |----|------------ | | |13,642,432 100% |
| | | | | Cost | | | Shares Cost |
| | Cost | | | ---- | | | ------ ---- |
| | ---- | | |Casualty-100% $11,226 | | |Casualty 12,992,922 $1,182,959,447 |
| |Casualty-100% $8,800,000 | | | | | |Fire 649,510 111,835,185 |
| | | | | | | | (See Page 2) |
| -------------------------------- | -------------------------------- | -------------------------------------
| | |
| -------------------------------- | -------------------------------- | -------------------------------------
| | NATIONWIDE | | | NATIONWIDE | | | ALLNATIONS, INC. |
| | INDEMNITY COMPANY | | | ARENA LLC | | |Common Stock: 12,167 Shares |
| | | | | | | |------------- Cost |
|-----|Common Stock: 28,000 | |....| | |-----| ---- |
| |------------ Shares | | | | | |Casualty-16% $91,600 |
| | | | | | | |Fire-16% $91,742 |
| | Cost | | | | | |Preferred Stock 1,466 Shares |
| | ---- | | |Casualty-90% | | |--------------- Cost |
| |Casualty-100% $594,529,000 | | | | | | ---- |
| | | | | | | |Casualty-6.8% $100,000 |
| | | | | | | |Fire-6.8% $100,000 |
| -------------------------------- | -------------------------------- | -------------------------------------
| | |
| -------------------------------- | -------------------------------- | -------------------------------------
| | LONE STAR | | | NATIONWIDE | | | NATIONWIDE INTERNATIONAL |
| | GENERAL AGENCY, INC. | | | EXCLUSIVE DISTRIBUTION | | | UNDERWRITERS |
| | | | | COMPANY, LLC (NEDCO) | | | |
------|Common Stock: 1,000 | |....| | |-----|Common Stock: 1,000 |
| |------------ Shares | | | Single Member Limited | | |------------- Shares |
| | | | | Liability Company | | | |
| | Cost | | | | | | Cost |
| | ---- | | |Casualty-100% | | | ---- |
| |Casualty-100% $5,000,000 | | | | | |Casualty-100% $10,000 |
| -------------------------------- | -------------------------------- | -------------------------------------
| || | | |
| -------------------------------- | -------------------------------- | -------------------------------------
| | COLONIAL COUNTY | | | INSURANCE | | | CALFARM INSURANCE |
| | MUTUAL INSURANCE | | | INTERMEDIARIES, INC. | | | COMPANY |
| | COMPANY | | | | | | |
| | | | |Common Stock: 1,615 Shares | | |Common Stock: 52,000 |
| | | | |------------- | |-----|-------------- Shares |
| | | | | Cost | | |
| |Surplus Debentures: | | | ---- | | Cost |
| |------------------- | | |NEDCO-100% $1,615,000 | | ---- |
| | Cost | | -------------------------------- |Casualty-100% $106,164,995 |
| | ---- | | | |
| |Colonial $500,000 | | -------------------------------- -------------------------------------
| |Lone Star 150,000 | | | eNATIONWIDE, LLC | |
| -------------------------------- | | (eNat) | -------------------------------------
| | | | | CALFARM INSURANCE |
| -------------------------------- | | | | AGENCY |
| | NATIONWIDE SERVICES | |....| Single Member Limited | | |
| | COMPANY, LLC | | Liability Company | | |
| | | | | | |
| |Single Member Limited | |----| | |Common Stock: 1,000 shares |
|.....|Liability Company | | | | |------------- |
| | | | | | | |
| | | | |Casualty-100% | | |
| |Casualty-100% | | | | | |
| | | | -------------------------------- |CalFarm Insurance |
| -------------------------------- | |Company - 100% |
| | -------------------------------- -------------------------------------
| | | DISCOVER INSURANCE | |
| -------------------------------- | | COMPANY, LLC | -------------------------------------
| | AMERICAN MARINE | | | | | CAL-AG INSURANCE |
| | UNDERWRITERS, INC. | | | | | SERVICES |
| | | | | Single Member Limited | | |
| |Common Stock: 20 Shares | |....| Liability Company | |Common Stock: 100 Shares |
|-----|------------ | | | | |------------ |
| | Cost | | | | | |
| | ---- | | |eNat-100% | |CalFarm Insurance |
| |Casualty-100% $5,020 | | | | |Agency-100% |
| | | | -------------------------------- -------------------------------------
| -------------------------------- |
| | --------------------------------
| --------------------------------- | | DISCOVER INSURANCE AGENCY |
| | NATIONWIDE INSURANCE | | | OF TEXAS, LLC |
| | COMPANY OF FLORIDA | | | |
| | | | | Single Member Limited |
| | Liability Company | |....| Liability Company |
| |Common Stock: 10,000 Shares | | |
|-----|------------- | | |
| Cost | |eNat-100% |
| ---- | | |
|Casualty-100% $300,000,000 | --------------------------------
| |
---------------------------------
Subsidiary Companies -- Solid Line
Contractual Association -- Double Line
Limited Liability Company -- Dotted Line
September 30, 2000
</TABLE>
Page 1
<PAGE> 178
<TABLE>
<CAPTION>
(Left Side)
<S> <C> <C> <C> <C> <C> <C>
|----------------------------------|-----------------------------------|-----------------------------
| | |
----------------------------- ----------------------------- -----------------------------
| NATIONWIDE LIFE INSURANCE | | NATIONWIDE | | NATIONWIDE TRUST |
| COMPANY (NW LIFE) | | FINANCIAL SERVICES | | COMPANY, FSB |
| | | CAPITAL TRUST | | Common Stock: 2,800,000 |
| Common Stock: 3,814,779 | | Preferred Stock: | | ------------ Shares |
| ------------ Shares | | --------------- | | Cost |
| | | | | ---- |
| NFS--100% | | NFS--100% | | NFS--100% $3,000,000 |
----------------|------------ ----------------------------- -----------------------------
|
| |--------------------------
----------------------------- | ----------------------------- -----------------------------
| NATIONWIDE LIFE AND | | | NATIONWIDE | | NATIONWIDE FINANCIAL |
| ANNUITY INSURANCE COMPANY | | | ADVISORY SERVICES, INC | | INSTITUTION DISTRIBUTORS |
| | | | (NW ADV. SERV.) | | AGENCY, INC. (NFIDAI) |
| Common Stock: 66,000 | | | Common Stock: 7,676 | | |
| ------------ Shares |--|--| ------------ Shares |==== | |
| | | | | || | |
| Cost | | | Cost | || | Common Stock: 1,000 Shares|
| ---- | | | ---- | || | ------------ |
| NW Life-100% $58,070,003 | | | NW Life-100% $5,996,261 | || | NFSDI-100% |
----------------------------- | ----------------------------- || --------------|--||----------
| || | ||
----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| NATIONWIDE INVESTMENT | | | NATIONWIDE MUTUAL | || | FINANCIAL HORIZONS | | || | |
| SERVICES CORPORATION | | | FUNDS | || | DISTRIBUTORS AGENCY | | || | |
| | | | | || | OF ALABAMA, INC. | | || | |
| Common Stock: 5,000 | | | OHIO BUSINESS TRUST | || | | | || | FLORIDA |
| ------------ Shares | | | | || | Common Stock: 10,000 | | || | RECORDS |===
| |--| | |==|| | ------------ Shares |-- || | ADMINISTRATOR, |
| | | | | || | | | || | INC |
| Cost | | | | || | Cost | | || | |
| ---- | | | | || | ---- | | || | |
| NW Life-100% $529,728 | | | | || | NFIDAI-100% $100 | | || | |
----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| || | ||
----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| NATIONWIDE FINANCIAL | | | NATIONWIDE | || | LANDMARK FINANCIAL | | || | |
| ASSIGNMENT | | | SEPARATE ACCOUNT | || | SERVICES OF | | || | |
| COMPANY | | | TRUST | || | NEW YORK, INC. | | || | |
| | | | | || | | | || | |
| | | | | || | Common Stock: 10,000 | | || | FINANCIAL HORIZONS |
| |--| | MASSACHUSETTS |==|| | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY |
| | | | BUSINESS TRUST | || | | | || | OF OHIO, INC |
| | | | | || | Cost | | || | |
| | | | | || | ---- | | || | |
| NW Life-100% | | | | || | NFIDAI-100% $10,100 | | || | |
----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| || | ||
----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| NATIONWIDE REALTY | | | NATIONWIDE | || | FINANCIAL HORIZONS | | || | |
| INVESTORS, LTD. | | | ASSET ALLOCATION TRUST | || | SECURITIES CORP. | | || | |
| | | | | || | | | || | |
| Units: | | | | || | Common Stock: 10,000 | | || | FINANCIAL HORIZONS |
| ------ |..| | OHIO BUSINESS TRUST |==|| | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY |
| | | | | | | | || | OF OKLAHOMA, INC |
| | | | | | Cost | | || | |
| NW Life-70% | | | | | ---- | | || | |
| NW Mutual-30% | | | | | NFIDAI-100% $153,000 | | || | |
----------------------------- | ----------------------------- ----------------------------- | || -----------------------
| | ||
----------------------------- | ----------------------------- | || -----------------------
| NATIONWIDE | | | AFFILIATE AGENCY, INC. | | || | |
| PROPERTIES, LTD. | | | | | || | |
| | | | | | || | |
| Units: |..| | Common Stock: 100 | | || | FINANCIAL HORIZONS |
| ------ | | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY |
| | | | | || | OF TEXAS, INC |
| | | Cost | | || | |
| NW Life-97.6% | | ---- | | || | |
| NW Mutual-2.4% | | NFIDAI-100% $100 | | || | |
----------------------------- ----------------------------- | || -----------------------
| ||
----------------------------- | || -----------------------
| NATIONWIDE FINANCIAL | | || | AFFILIATE |
| INSTITUTION DISTRIBUTORS | | || | AGENCY OF |
| INSURANCE AGENCY, | | || | OHIO, INC |
| INC. OF MASS. | | || | |
| |-- ====|Common Stock: 750 |
|Common Stock: 100 Shares | | |------------ Shares |
|------------ | | | |
| | | | |
|NFIDAI-100% | | |NFIDAI-100% |
----------------------------- | -----------------------
----------------------------- |
| NATIONWIDE FINANCIAL | |
| INSTITUTION DISTRIBUTORS | |
| INSURANCE AGENCY, INC. | |
| OF NEW MEXICO |--
| |
|Common Stock: 100 Shares |
|------------ |
| |
|NFIDAI-100% |
-----------------------------
</TABLE>
<PAGE> 179
<TABLE>
<CAPTION>
(Center)
NATIONWIDE(R)
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------- --------------------------------------------------
| NATIONWIDE MUTUAL | | NATIONWIDE MUTUAL |
| INSURANCE COMPANY |================================| FIRE INSURANCE COMPANY |
| (CASUALTY) | | | (FIRE) |
-------------------------------------------------- | --------------------------------------------------
|
-----------------------------------------
| NATIONWIDE CORPORATION (NW CORP) |
| COMMON STOCK: CONTROL: |
| ------------ ------- |
| 13,642,432 100% |
| SHARES COST |
| ------ ---- |
|CASUALTY 12,992,922 $1,182,959,447 |
|FIRE 649,510 111,385,185 |
-------------------|---------------------
|--------------------------------------------------------------
---------------|-------------
| NATIONWIDE FINANCIAL |
| SERVICES, INC. (NFS) |
| |
|Common Stock: Control: |
|------------ ------- |
| |
| |
|Class A Public-100% |
|CLASS B NW CORP-100% |
---------------|-------------
|
-----------|-------------------------|-------------------------|--------------------------|-------------------------|
| | | | |
-----------|------------ ------------|------------ ------------|------------ -------------|------------ ------------|-------------
|NFS DISTRIBUTORS, INC.| | NATIONWIDE FINANCIAL | | NATIONWIDE FINANCIAL | |PENSION ASSOCIATES, INC.| |VILLANOVA CAPITAL, INC. |
| (NFSDI) | | SERVICES CAPITAL | |SERVICES (BERMUDA) INC.| |Common Stock: 1,000 | |Common Stock: 958,750 |
| | | TRUST II | |Common Stock: 250,000 | |------------ Shares | |------------- Shares |
| | | | |------------- Shares | | | |NFS-96% |
| | | | | Cost | | Cost | |Preferred Stock: 500,000|
|NFS-100% | | | | ---- | | ---- | |--------------- Shares |
| | | NFS-100% | |NFS-100% $3,500,000 | | NFS-100% $2,839,392| |NFS-100% |
-----------|------------ ------------------------- ------------------------- -------------------------- ------------|-------------
| |
-----------|---------|----------------|--------------------------| |-------------------------|---------------
-----------|-------- | ---------------|------------ -------------|------------ -----------|------------- -----------|-------------
|NATIONAL DEFERRED | | |THE 401(k) COMPANIES, INC.| | NATIONWIDE RETIREMENT | | VILLANOVA S.A. CAPITAL| | MORLEY FINANCIAL |
|COMPENSATION, INC.| | | (401(k)) | | SOLUTIONS, INC. (NRS)| | TRUST (VSA) | |SERVICES, INC. (MORLEY)|
| | | | | |Common Stock: 236,494 | | | |Common Stock: 82,343 |
| | | |Common Stock: Control | |------------- Shares | | | |------------ Shares |
| | | |------------- ------- | | | | | | |
|NFSDI-100% | | |Class A Other-100% | | | | | |VILLANOVA CAPITAL, INC.|
| | | |Class B NFSDI-90% | |NFSDI-100% | |DELAWARE BUSINESS TRUST| |-100% |
---||--------------- | -----------|---------------- -------------|------------ -----------------|------- -----------|-------------
|| | | | | |
|| | | | | |------------|
|| | | | | |
|| --------------|------------|---------------------------- | -------------------------- | ---------------------------- |
|| | IRVIN L. SCHWARTZ ||| NATIONWIDE RETIREMENT | | |NATIONWIDE RETIREMENT | | | NATIONWIDE | |
|| | AND ASSOCIATES, INC. |||SOLUTIONS, INC. OF ALABAMA| | | SOLUTIONS, INC. OF | | | INVESTORS SERVICES, INC. | |
|| | ||| | | | NEW MEXICO | | | | |
|| |Common Stock: Control: |||Common Stock: 10,000 | | | Common Stock: 1,000 | | |Common Stock: 5 | |
===== |------------- -------- |||------------- Shares |--|--| ------------- Shares | |--|------------- Shares | |
|Class A Other-100%||| Cost | | | Cost | | | Cost | |
|Class B NFSDI-100%||| ---- | | | ---- | | | ---- | |
| |||NRS-100% $1,000 | | |NRS-100% $1,000 | | |VSA-100% $5,000 | |
---------------------------|---------------------------- | -------------------------- | ---------------------------- |
| | | |
---------------------------|---------------------------- | -------------------------- | ---------------------------- |
| 401(k) INVESTMENT ||| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | | NATIONWIDE GLOBAL FUNDS | |
| SERVICES, INC. |||SOLUTIONS, INC. OF ARIZONA| | | SOLUTIONS, INC. OF | | | | |
| ||| | | | SO. DAKOTA | | | | |
|Common Stock: 1,000,000 |||Common Stock: 1,000 | | |Common Stock: 1,000 | | | | |
|------------ Shares |-|------------- Shares |--|--|------------- Shares | |==| LUXEMBOURG SICAV | |--
| ||| Cost | | | Cost | | | | |
| Cost ||| ---- | | | ---- | | | | |
| ---- |||NRS-100% $1,000 | | |NRS-100% $1,000 | | | | |
|401(k)-100% $7,800 ||---------------------------- | -------------------------- | ---------------------------- |
---------------------------| | | |
|---------------------------- | -------------------------- | ---------------------------- |
---------------------------|| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | | VILLANOVA DISTRIBUTION | |
| 401(k) INVESTMENT ||| SOLUTIONS, INC. OF | | | SOLUTIONS, INC. | | | SERVICES, INC. | |
| ADVISORS, INC. ||| ARKANSAS | | | OF WYOMING | | | | |
| |||Common Stock: 50,000 |-----|Common Stock: 500 Shares| |--|Common Stock: 10,000 | |--
|Common Stock: 1,000 |||------------- Shares | | |------------- | | |------------- Shares | |
|------------ Shares |-| Cost | | | Cost | | | Cost | |
| ||| ---- | | | ---- | | | ---- | |
| Cost |||NRS-100% $500 | | |NRS-100% $500 | | |VSA-100% $146,653 | |
| ---- ||---------------------------- | -------------------------- | ---------------------------- |
|401(k)-100% $1,000 || | | |
---------------------------|---------------------------- | -------------------------- | ---------------------------- |
|| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | | VILLANOVA FINANCIAL | |
---------------------------|| SOLUTIONS, INS. | | | SOLUTIONS, INC. | | | GROUP, INC. | |
| THE 401(k) COMPANY ||| AGENCY, INC. | | | OF OHIO | | |Common Stock: 450,000| |
| |||Common Stock: 1,000 | | | | | |------------ Shares | |
|Common Stock: 855,000 |||------------- Shares |--|==| | |--|Series A Preferred:100,000| |--
|------------ Shares ||| | | | | |------------------ Shares | |
| ||| Cost | | | | | Cost | |
| Cost ||| ---- | | | | | ---- | |
| ---- |-|NRS-100% $1,000 | | | | |VSA-100% $10,000,000| |
|401(k)-100% $1,000 ||---------------------------- | -------------------------- ---------------------------- |
---------------------------| | |
|---------------------------- | -------------------------- ---------------------------- |
---------------------------|| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | PORTLAND INVESTMENT | |
| |||SOLUTIONS, INC. OF MONTANA| | | SOLUTIONS, INC. OF | | SERVICES, INC. | |
| ||| | | | OKLAHOMA | | | |
| RIVERVIEW AGENCY, INC. |||Common Stock: 500 | | | | |Common Stock: 1,000 | |
| |||------------- Shares |--|==| | |------------- Shares |--|--
| ||| Cost | | | | | Cost | |
| |=| ---- | | | | | ---- | |
| | |NRS-100% $500 | | | | |Morley-100% $25,000 | |
--------------------------- ---------------------------- | -------------------------- ---------------------------- |
| |
---------------------------- | -------------------------- ---------------------------- |
| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT| | MORLEY & | |
| SOLUTIONS, INC. OF NEVADA| | | SOLUTIONS, INC. | | ASSOCIATES, INC. | |
| | | | OF TEXAS | | | |
|Common Stock: 1,000 |-- ==| | |Common Stock: 3,500 |--|--
|------------- Shares | | | |------------- Shares |
| Cost | | | | Cost |
| ---- | | | | ---- |
|NRS-100% $1,000 | | | |Morley-100% $1,000 |
---------------------------- -------------------------- ----------------------------
</TABLE>
<PAGE> 180
<TABLE>
<CAPTION>
(Right)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
---------------|-------------- ------------------------------- | ----------------------------
| NATIONWIDE GLOBAL | | GATES MCDONALD | | | NATIONWIDE |
| HOLDINGS, INC. (NGH) | | & COMPANY (GATES) | | |HEALTH PLANS, INC. (NHP) |
| | | | | | |
|Common Stock: 1 Share | --|Common Stock: 254 Shares | | |---|Common Stock: 100 Shares |
|------------ | | |------------ | | | |------------ |
| Cost | | | Cost | | | | Cost |
| ---- | | | ---- | | | | ---- |
|NW Corp.-100% $506,434,210 | | |NW Corp.-100% $25,683,532 | | | | |
| | | |------------------------------ | | |NW Corp.-100% $14,603,732|
|(See Page 3) | | | | ----------------------------
------------------------------ | |------------------------------ | | ----------------------------
| | MEDPROSOLUTIONS, INC. | | | | NATIONWIDE MANAGEMENT |
------------------------------ --| | | | | SYSTEMS, INC. |
| VILLANOVA MUTUAL FUND | | | Cost | | | | |
| CAPITAL TRUST (VMF) | | | ---- | | |---|Common Stock: 100 Shares |
----|----| | | |Gates-100% $6,700,000 | | | |------------- |
| | | | | | | | | Cost |
| | | | | | | | | ---- |
| | | | ------------------------------- | | |NHP Inc.-100% $25,149 |
| | | | | | ----------------------------
| | | | |------------------------------ | | ----------------------------
| | DELAWARE BUSINESS TRUST | | | GATES MCDONALD & | | | | NATIONWIDE |
| ------------------------------ | | COMPANY OF NEW YORK, INC. | | | | AGENCY, INC. |
| --| | | | | |
| ------------------------------ | |Common Stock: 3 Shares | | |---|Common Stock: 100 Shares |
| | NORTHPOINTE | | |------------ | | |------------ |
| | CAPITAL LLC | | | Cost | | | Cost |
| | | | | ---- | | | ---- |
|----| | | |Gates-100% $106,947 | | |NHP Inc.-99% $116,077 |
| | | ------------------------------- | ----------------------------
| | | |
| | | ------------------------------- | ----------------------------
|VILLANOVA CAPITAL, INC.-65% | | | GATES MCDONALD & | | | MRM INVESTMENTS, INC. |
------------------------------ | | COMPANY OF NEVADA | | | |
--| | -------|Common Stock: 1 Shares |
------------------------------ | |Common Stock: 40 Shares | |------------ |
| EXCALIBER FUNDING | | |------------ | | Cost |
| CORPORATION | | | Cost | | ---- |
---------|Common Stock: 1,000 Shares | | | ---- | |NW Corp.-100% $7,000,000 |
|------------- | | |Gates-100% $93,750 | ----------------------------
| Cost | | -------------------------------
| ---- | |
|Morley-100% $1,000 | | -------------------------------
------------------------------ | | GATES MCDONALD |
| | HEALTH PLUS, INC. |
------------------------------ --| |
| CALIBER FUNDING | | |Common Stock: 200 Shares |
| CORPORATION | | |------------ |
| | | | Cost |
---------| | | | ---- |
| | | |Gates-100% $2,000,000 |
| Morley-100% | | -------------------------------
| | |
------------------------------ | -------------------------------
| |NEVADA INDEPENDENT COMPANIES-|
| |MANUFACTURING TRANSPORTATION |
| | AND DISTRIBUTION |
--| |
| |Common Stock: 1,000 Shares |
| |------------ |
| |Gates-100% |
| -------------------------------
|
------------------------------ | -------------------------------
| MORLEY RESEARCH | | | NEVADA INDEPENDENT |
| ASSOCIATES, LTD. | | | COMPANIES-HEALTH AND |
---------| | --| NONPROFIT |
|Common Stock: 1,000 Shares | | |Common Stock: 1,000 Shares |
|------------- | | |------------ |
| Cost | | | |
| ---- | | |Gates-100% |
|Morley-100% $1,000 | | -------------------------------
------------------------------ |
| -------------------------------
------------------------------ | | NEVADA INDEPENDENT |
| MORLEY CAPITAL | | | COMPANIES-CONSTRUCTION |
| MANAGEMENT | --| |
| | | |Common Stock: 1,000 Shares |
---------|Common Stock: 500 Shares | | |------------ |
|------------- | | | |
| Cost | | |Gates-100% |
| ---- | | -------------------------------
|Morley-100% $5,000 | |
------------------------------ | -------------------------------
| | NEVADA INDEPENDENT |
------------------------------ | | COMPANIES-HOSPITALITY AND | Subsidiary Companies - Solid Line
| UNION BOND & TRUST | --| ENTERTAINMENT | Contractual Association - Double Line
| COMPANY | | | Limited Liability Company - Dotted Line
| | |Common Stock: 1,000 Shares |
---------|Common Stock: 2,000 Shares | |------------ |
|------------ | | |
| Cost | |Gates-100% | September 30, 2000
| ---- | -------------------------------
|Morley-100% $50,000 |
------------------------------
Page 2
</TABLE>
<PAGE> 181
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(Left side)
|--------------------------------------------|------------------------------------------|---------------------
| | |
----------------|--------------- -----------------|----------------- ------------------|----------------
| VILLANOVA GLOBAL ASSET | | NATIONWIDE GLOBAL HOLDINGS | | NGH |
| MANAGEMENT TRUST | | - HONG KONG, LIMITED | | NETHERLANDS B.V. |
| (VGAMT) | | Common Stock: 20,343,752 Shares | | Common Stock: 40 Shares |
| | | ------------- Shares | | ------------- |
| | | ------ | | Cost |
| | | NGH 20,343,751 | | ----- |
| NGH - 100% | | LUX SA 1 | | NGH - 100% NLG 52,500 |
----------------|--------------- ----------------------------------- -----------------------------------
|
| |--------------------------|--------------------|-------------------------------------------
| | | |
----------------|--------------- | -----------------|----------------- | -----------------------------------
| NATIONWIDE ASSET | | | GARTMORE INVESTMENT | | | GARTMORE FUND |
| MANAGEMENT HOLDINGS, LTD. | | | SERVICES LTD. | | | MANAGERS LTD. |
| (NAMHL) | | |----| (GISL) | |---| (GFM) |
| | | | | | | | |
| | | | | GIM - 80% | | | GIM - 99.99% |
| VGAMT - 100% | | | | GNL - 20% | | | GSL - .01% |
----------------|--------------- | | ----------------------------------- | ------------------|----------------
| | | | |
| | | | |
| | | | |
----------------|--------------- | | ----------------------------------- | ------------------|----------------
| NATIONWIDE UK ASSET | | | | GARTMORE INVESTMENT | | | |
| MANAGEMENT HOLDINGS, LTD. | | | | SERVICES GMBH | | | FENPLACE LIMITED |
| (NUKAMHL) | | |----| | |---| |
| | | | | | | | |
| NAMHL - 100% | | | | GISL - 100% | | | GFM - 100% |
----------------|--------------- | | ----------------------------------- | ------------------|----------------
| | | | |
| | | | |
| | | | |
----------------|--------------- | | ----------------------------------- | ------------------|----------------
| NATIONWIDE UK HOLDING | | | | MARENWOOD, LTD. (FKA) | | | FENPLACE TWO LTD. (FKA) |
| COMPANY, LTD. | | | | GARTMORE FUND MANAGERS | | | NATWEST INVESTMENT |
| (NUKHCL) | | |----| (FAR EAST) LTD. | | | MANAGEMENT LIMITED (FTL) |
| | | | | | | | |
| | | | | GISL - 50% | | | |
| NUKAMHL - 100% | | | | GNL - 50% | | | GIM - 100% |
----------------|--------------- | | ----------------------------------- | -----------------------------------
| | | |
| | | |
| | | |
----------------|--------------- | | ----------------------------------- | -----------------------------------
| ASSET MANAGEMENT | | | | GARTMORE FUND MANAGERS | | | GARTMORE INVESTMENT MGMT. |
| HOLDINGS PLC | | | | INTERNATIONAL LIMITED | | | (CHANNEL ISLAND) LTD. (GIMCIL) |
| (AMH) | | | | (GFMI) | | | (FKA) NATWEST INVESTMENT MGMT. |
| | | |----| | |---| CHANNEL ISLANDS LIMITED |
| | | | GISL - 99.99% | | | FTL - 99.99% |
| NUKHCL - 100% | | | GSL - .01% | | | Corp Share Ltd. - .01% |
----------------|--------------- | -----------------|----------------- | -----------------------------------
| | | |
| | | |
| | | |
----------------|--------------- | -----------------|----------------- | -----------------------------------
| GARTMORE INVESTMENT | | | GARTMORE NOMINEES | | | GARTMORE SECURITIES LTD. |
| MANAGEMENT PLC | | | (JERSEY) LTD. | | | (GSL) |
| (GIM) | | | | | | |
| |--| | GFMI - 94% | |---| |
| AMH - 99.99% | | GSL - 3% | | GIM - 99.99% |
| GNL - .01% | | GIM - 3% | | GNL - .01% |
-------------------------------- ----------------------------------- -----------------------------------
</TABLE>
<PAGE> 182
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(Center)
NATIONWIDE(R)
--------------------------------- ----------------------------------
| NATIONWIDE MUTUAL | | NATIONWIDE MUTUAL |
| INSURANCE COMPANY |=============| FIRE INSURANCE COMPANY |
| (CASUALTY) | | | (FIRE) |
--------------------------------- | ----------------------------------
|
|
--------------------|--------------------
| NATIONWIDE CORPORATION (NW CORP) |
| COMMON STOCK: CONTROL: |
| ------------- -------- |
| 13,642,432 100% |
| SHARES COST |
| ------ ---- |
| Casualty 12,992,922 $1,182,959,447 |
| Fire 649,510 111,835,185 |
--------------------|--------------------
|
---------------|----------------
| NATIONWIDE GLOBAL |
| HOLDINGS, INC. (NGH) |
| Common Stock: 1 Share |
| ------------- |
| |
| Cost |
| ---- |
| NW Corp.-100% $506,434,210 |
---------------|----------------
|
---------------------------------------|-----------------------|------------------------|-------------------------------------------
| |
---------------|---------------- ----------------|---------------
| NATIONWIDE | | NATIONWIDE GLOBAL |
| SERVICES SP. Z.O.O. | | JAPAN, INC. |
| Common Stock: 80 Shares | | Common Stock: 100 Shares |
| ------------ | | ------------- |
| Cost | | Cost |
| ---- | | ---- |
| NGH - 100% 4,000 PLN | | NGH - 100% $100 |
-------------------------------- --------------------------------
----------------|-----------------------------------------------|-------------------------------------------------------------------
| |
| -------------------------------- | --------------------------------
| | GARTMORE INVESTMENT LTD. | | | GARTMORE SCOTLAND LTD. |
| | (GIL) | | | (GSCL) |
|-------| | |-------| |
| | GIM - 50% | | | GIM - 99.99% |
| | GNL - 50% | | | GNL - .01% |
| ---------------|---------------- | --------------------------------
| | |
| | |
| ---------------|---------------- | --------------------------------
| | GARTMORE JAPAN | | | DAMIAN SECURITIES LTD. |
| | LIMITED | | | |
| | | |-------| |
| | GIL - 98.46% | | | GIM - 50% |
| | GIM - 1.54% | | | GSCL - 50% |
| -------------------------------- | --------------------------------
| |
| |
| -------------------------------- | --------------------------------
| | GARTMORE 1990 LTD. | | | GARTMORE NOMINEES LTD. |
| | (GENERAL PARTNER) | | | (GNL) |
|-------| | |-------| |
| | GIM - 50% | | | GIM - 99.99% |
| | GSL - 50% | | | GSCL - .01% |
| -------------------------------- | --------------------------------
| |
| |
| -------------------------------- | --------------------------------
| | GARTMORE INDOSUEZ UK | | | GARTMORE PENSION FUND |
| | RECOVERY FUND (G.P.) LTD. | | | TRUSTEES, LTD. |
|-------| | |-------| |
| | GIM - 50% | | | GIM - 99% |
| | GNL - 50% | | | GSCL - 1% |
| -------------------------------- | --------------------------------
| |
| |
| -------------------------------- | --------------------------------
| | GARTMORE 1990 TRUSTEE LTD. | | | GIL NOMINEES LTD. |
| | (GENERAL PARTNER) | | | |
|-------| | |-------| |
| GIM - 50% | | GIM - 50% |
| GSL - 50% | | GSCL - 50% |
-------------------------------- --------------------------------
</TABLE>
<PAGE> 183
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(Right side)
----------------------|---------------------|----------------------|------------------------------------------|
: | : |
---------------|---------------- | ----------------|------------------ -----------------|-----------------
| NATIONWIDE GLOBAL | | | NATIONWIDE TOWARZYSTWO | | NATIONWIDE GLOBAL HOLDINGS, |
| FINANCE, LLC | | | UBEZPIECZEN NA ZYCIE SA | | INC. - LUXEMBOURG BRANCH |
| | | | | | (BRANCH) |
| Single Member Limited | | | Common Stock: 1,952,000 Shares | | |
| Liability Company | | | ------------ | | |
| | | | | | |
| NGH - 100% | | | NGH - 100% | | Endowment Capital - $1,000,000 |
-------------------------------- | ----------------|------------------ -----------------|-----------------
| | |
---| | | |
| | | |
| -------------------------------- | ----------------|------------------ -----------------------------------
| | VICPIC LTD. | | | PIONEER NATIONWIDE | | NGH LUXEMBOURG S.A. |
| | | | | SP. Z.O.O. | | (LUX SA) |
| | | | | | | |
|---| | | | | |---| Common Stock: 5,894 Shares |
| | | | | Common Stock: 40,950 Shares | | | ------------ |
| | | | | ------------ | | | Cost |
| | GIM - 99.99% | | | | | | ----- |
| | GSCL - .01% | | | NGH - 70% | | | BRANCH - 99.98% $115,470,723 |
| -------------------------------- | ----------------------------------- | -----------------------------------
| | |
| | |
| -------------------------------- | ----------------------------------- | -----------------------------------
| | GARTMORE EUROPE LTD. | | | SIAM AR-NA-KHET | | | NGH UK, LTD. |
| | | | | COMPANY LTD. (SIAM) | | | |
|---| | |......| | |---| |
| | GIM - 50% | | | | | |
| | GSL - 50% | | NGH - 48.99% | | | LUX SA - 100% |
| -------------------------------- ----------------|------------------ | -----------------------------------
| : |
| : |
| -------------------------------- ----------------|------------------ | -----------------------------------
| | GARTMORE CAPITAL | | THAI PRASIT | | | NATIONWIDE GLOBAL HOLDINGS |
| | MANAGEMENT LTD. | | NATIONWIDE COMPANY LTD. | | | - NGH BRASIL PARTICIPACOES |
| | (GCM) | | | | | LTDA (NGH BRASIL) |
|---| | | | |---| |
| | | | | | Shares Cost |
| | | | | | ------ ----- |
| GIM - 99.99% | | NGH - 24.3% | | | LUX SA 6,164,899 R6,164,889 |
| GSL - .01% | | SIAM - 37.7% | | | NGH 1 R1 |
---------------|---------------- ----------------------------------- | -----------------|-----------------
| | |
| | |
---------------|---------------- ----------------------------------- | -----------------|-----------------
| GARTMORE U.S. LTD. | | PANEUROLIFE (PEL) | | | NATIONWIDE SEGURADORA S.A. |
| (GUS) | | | | | |
| | | Common Stock: 1,300,000 Shares | | | Shares Cost |
| | | ------------- Cost |---| | ------ ----- |
| | | ---- | | NGH |
| | | LUX SA - 100% 3,817,832,685 | | BRASIL 9,999,999 R9,999,999 |
| GCM - 100% | | LUF | | LUX SA 1 R1 |
---------------|---------------- -----------------|----------------- -----------------------------------
| |
| |
---------------|---------------- -----------------|-----------------
| GARTMORE GLOBAL | | VERTBOIS, SA |
| PARTNERS | | | Subsidiary Companies-- Solid Line
| | | | Contractual Association-- Double Line
| | | | Limited Liability Company-- Dotted Line
| | | PEL - 99.99% |
| GUS - 50% | | LUX SA - .01% | September 30, 2000 Page 3
-------------------------------- -----------------------------------
</TABLE>
<PAGE> 184
Item 27. NUMBER OF CONTRACT OWNERS
The number of contract owners of Qualified and Non-Qualified
Contracts as of February 1, 2000 was 791 and 2,028, respectively.
Item 28. INDEMNIFICATION
Provision is made in the Company's Amended and Restated Code of
Regulations and expressly authorized by the General Corporation
Law of the State of Ohio, for indemnification by the Company of
any person who was or is a party or is threatened to be made a
party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or
investigative by reason of the fact that such person is or was a
director, officer or employee of the Company, against expenses,
including attorneys fees, judgments, fines and amounts paid in
settlement actually and reasonably incurred by such person in
connection with such action, suit or proceeding, to the extent and
under the circumstances permitted by the General Corporation Law
of the State of Ohio.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 ("Act") may be permitted to directors,
officers or persons controlling the Company pursuant to the
foregoing provisions, the Company has been informed that in the
opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final
adjudication of such issue.
Item 29. PRINCIPAL UNDERWRITER
(a) Nationwide Investment Services Corporation ("NISC") acts as
principal underwriter and general distributor for the
Nationwide Multi-Flex Variable Account, Nationwide Variable
Account, Nationwide Variable Account-II, Nationwide
Variable Account-5, Nationwide Variable Account-6,
Nationwide Variable Account-8, Nationwide Variable
Account-9, Nationwide Variable Account-10, Nationwide
Variable Account-11, Nationwide VA Separate Account-A,
Nationwide VA Separate Account-B, Nationwide VA Separate
Account-C, Nationwide VA Separate Account-D, Nationwide VL
Separate Account-A, Nationwide VL Separate Account-B,
Nationwide VL Separate Account-C, Nationwide VL Separate
Account-D, Nationwide VLI Separate Account-2, Nationwide
VLI Separate Account-3, Nationwide VLI Separate Account-4,
and the Nationwide VLI Separate Account-5, Nationwide DC
Variable Account, Nationwide DCVA-II, and the NACo Variable
Account, all of which are separate investment accounts of
Nationwide or its affiliates.
<PAGE> 185
(b) NATIONWIDE INVESTMENT SERVICES CORPORATION
DIRECTORS AND OFFICERS
<TABLE>
<CAPTION>
POSITIONS AND OFFICES
NAME AND BUSINESS ADDRESS WITH UNDERWRITER
<S> <C>
Joseph J. Gasper Chairman of the Board and
One Nationwide Plaza Director
Columbus, OH 43215
Dimon R. McFerson Chairman and Chief Executive
One Nationwide Plaza Officer and Director
Columbus, OH 43215
Richard A. Karas Vice Chairman and Director
One Nationwide Plaza
Columbus, OH 43215
Duane C. Meek President
One Nationwide Plaza
Columbus, OH 43215
Philip C. Gath Director
One Nationwide Plaza
Columbus, OH 43215
Susan A. Wolken Director
One Nationwide Plaza
Columbus, OH 43215
Robert A. Oakley Executive Vice President -
One Nationwide Plaza Chief Financial Officer
Columbus, OH 43215
Robert J. Woodward, Jr. Executive Vice President -
One Nationwide Plaza Chief Investment Officer
Columbus, OH 43215
Mark R. Thresher Senior Vice President and Treasurer
One Nationwide Plaza
Columbus, OH 43215
Barbara J. Shane Vice President - Compliance Officer
Two Nationwide Plaza
Columbus, OH 43215
Alan A. Todryk Vice President - Taxation
One Nationwide Plaza
Columbus, OH 43215
John F. Delaloye Assistant Secretary
One Nationwide Plaza
Columbus, OH 43215
Glenn W. Soden Assistant Secretary
One Nationwide Plaza
Columbus, OH 43215
E. Gary Berndt Assistant Treasurer
One Nationwide Plaza
Columbus, OH 43215
</TABLE>
<PAGE> 186
NATIONWIDE INVESTMENT SERVICES CORPORATION
DIRECTORS AND OFFICERS
<TABLE>
<CAPTION>
POSITIONS AND OFFICES
NAME AND BUSINESS ADDRESS WITH UNDERWRITER
<S> <C>
Duane M. Campbell Assistant Treasurer
One Nationwide Plaza
Columbus, OH 43215
Terry C. Smetzer Assistant Treasurer
One Nationwide Plaza
Columbus, OH 43215
</TABLE>
<TABLE>
<CAPTION>
(c)
NAME OF PRINCIPAL NET UNDERWRITING COMPENSATION ON BROKERAGE COMPENSATION
UNDERWRITER DISCOUNTS AND REDEMPTION OR COMMISSIONS
COMMISSIONS ANNUITIZATION
<S> <C> <C> <C> <C>
Nationwide Investment N/A N/A N/A N/A
Services Corporation
</TABLE>
Item 30. LOCATION OF ACCOUNTS AND RECORDS
John Davis
Nationwide Life Insurance Company
One Nationwide Plaza
Columbus, OH 43215
Item 31. MANAGEMENT SERVICES
Not Applicable
<PAGE> 187
Item 32. UNDERTAKINGS
The Registrant hereby undertakes to:
(a) file a post-effective amendment to this registration
statement as frequently as is necessary to ensure that the
audited financial statements in the registration statement
are never more than 16 months old for so long as payments
under the variable annuity contracts may be accepted;
(b) include either (1) as part of any application to purchase a
contract offered by the prospectus, a space that an
applicant can check to request a Statement of Additional
Information, or (2) a post card or similar written
communication affixed to or included in the prospectus that
the applicant can remove to send for a Statement of
Additional Information; and
(c) deliver any Statement of Additional Information and any
financial statements required to be made available under
this form promptly upon written or oral request.
The Registrant represents that any of the contracts which are
issued pursuant to Section 403(b) of the Code, are issued by
Nationwide through the Registrant in reliance upon, and in
compliance with, a no-action letter issued by the Staff of the
Securities and Exchange Commission to the American Council of Life
Insurance (publicly available November 28, 1988) permitting
withdrawal restrictions to the extent necessary to comply with
Section 403(b)(11) of the Code.
Nationwide represents that the fees and charges deducted under the
contract in the aggregate are reasonable in relation to the
services rendered, the expenses expected to be incurred and risks
assumed by Nationwide.
<PAGE> 188
INDEPENDENT AUDITORS' CONSENT
The Board of Directors of Nationwide Life Insurance Company and Contract Owners
of Nationwide Variable Account-9:
We consent to the use of our reports included herein and to the reference to our
firm under the heading "Services" in the Statement of Additional Information.
KPMG LLP
Columbus, Ohio
April 26, 2000
<PAGE> 189
SIGNATURES
As required by the Securities Act of 1933, and the Investment Company Act of
1940, the Registrant, NATIONWIDE VARIABLE ACCOUNT-9, certifies that it meets the
requirements of Securities Act Rule 485(b) for effectiveness of this
Post-Effective Amendment No. 8 and has caused this Post-Effective Amendment No.
8 to be signed on its behalf in the City of Columbus, and State of Ohio, on this
13th day of December, 2000.
<TABLE>
<S> <C>
NATIONWIDE VARIABLE ACCOUNT-9
---------------------------------------------------------------
(Registrant)
NATIONWIDE LIFE INSURANCE COMPANY
---------------------------------------------------------------
(Depositor)
By/s/STEVEN SAVINI, ESQ.
---------------------------------------------------------------
Steven Savini, Esq.
</TABLE>
As required by the Securities Act of 1933, Post-Effective Amendment to the
Registration Statement has been signed by the following persons in the
capacities indicated on the 13th day of December, 2000.
<TABLE>
<CAPTION>
SIGNATURE TITLE
<S> <C> <C>
LEWIS J. ALPHIN Director
----------------------------------------
Lewis J. Alphin
A. I. BELL Director
----------------------------------------
A. I. Bell
NANCY C. BREIT Director
----------------------------------------
Nancy C. Breit
KENNETH D. DAVIS Director
----------------------------------------
Kenneth D. Davis
KEITH W. ECKEL Director
----------------------------------------
Keith W. Eckel
WILLARD J. ENGEL Director
----------------------------------------
Willard J. Engel
FRED C. FINNEY Director
----------------------------------------
Fred C. Finney
JOSEPH J. GASPER President and Chief Operating
---------------------------------------- Officer and Director
Joseph J. Gasper
W.G. JURGENSEN Chief Executive Officer
---------------------------------------- and Director
W.G. Jurgensen
DIMON R. MCFERSON Chairman
---------------------------------------- and Director
Dimon R. McFerson
DAVID O. MILLER Chairman of the Board and
---------------------------------------- Director
David O. Miller
YVONNE L. MONTGOMERY Director
----------------------------------------
Yvonne L. Montgomery
ROBERT A. OAKLEY Executive Vice President and Chief
---------------------------------------- Financial Officer
Robert A. Oakley
RALPH M. PAIGE Director
----------------------------------------
Ralph M. Paige
ZJAMES F. PATTERSON Director
----------------------------------------
James F. Patterson
ARDEN L. SHISLER Director By /s/ STEVEN SAVINI
---------------------------------------- --------------------------------------
Arden L. Shisler Steven Savini
Attorney-in-Fact
ROBERT L. STEWART Director
----------------------------------------
Robert L. Stewart
</TABLE>
