<PAGE> 1
Nationwide(R) VL
Separate Account-C
December31, 1999
[The BEST of AMERICA (R) logo]
America's FUTURE Life Series(SM)
Aa
'99
ANNUAL REPORT
- --------------------------------------------------------------------------------
[logo Nationwide]
Nationwide Life and Annuity Insurance Company
Home Office: Columbus, Ohio
VLOB-0173-B(12/99)
<PAGE> 2
[logo Nationwide]
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[Picture of President Joseph J. Gasper]
PRESIDENT'S MESSAGE
We at Nationwide Life and Annuity Insurance Company are pleased
to bring you the 1999 annual report of the Nationwide VL
Separate Account-C.
During 1999 equity investments extended their spirited advance
to a fifth consecutive year. The S&P 500 was the laggard of the
major indices with a year-over-year change of a respectable
19.53%. The NASDAQ topped the list at over 85% with the other
indices falling into line nearer the lower end of the range.
Fixed earnings investments did not fare as well in the current
environment of rising interest rates.
The U.S. economy remains strong, inflation remains docile and
the available labor pool is incessantly tight. Against this
good-news-bad-news backdrop, the Federal Reserve is increasingly
concerned that recent productivity gains will subside and ignite
wage inflation. To date, the Fed has hiked short-term interest
rates a quarter percentage point on four occasions since last
June. Prospectively, they may well become more aggressive in
their preemptive efforts to dampen economic growth and avoid a
new round of inflation.
We believe some caution may be warranted at this juncture.
Certain market sectors are well extended and may inevitably
retreat to less lofty valuation levels. However, we remain
bullish for the long-term prospects of financial assets. Your
variable insurance contract provides an excellent resource to
help you achieve your long-term retirement savings and financial
planning objectives.
We appreciate your trust in our company and in our investment
products, and we welcome and encourage your feedback.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
February 10, 2000
3
<PAGE> 3
NATIONWIDE VL SEPARATE ACCOUNT-C
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)
723,161 shares (cost $5,256,129) ................................................... $ 5,785,285
American Century VP - American Century VP International (ACVPInt)
259,483 shares (cost $2,279,655) ................................................... 3,243,532
American Century VP - American Century VP Value (ACVPValue)
53,079 shares (cost $312,373) ...................................................... 315,821
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
2,785 shares (cost $98,586) ........................................................ 108,801
Dreyfus Stock Index Fund (DryStkIx)
830,508 shares (cost $28,441,149) .................................................. 31,933,019
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
36,862 shares (cost $1,417,295) .................................................... 1,469,698
Dreyfus VIF - European Equity Portfolio (DryEuroEq)
18,465 shares (cost $288,105) ...................................................... 294,701
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVIPEIS)
66,376 shares (cost $1,658,561) .................................................... 1,703,206
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGrS)
181,425 shares (cost $8,298,921) ................................................... 9,942,107
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHIS)
122,797 shares (cost $1,348,100) ................................................... 1,385,152
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOvS)
58,174 shares (cost $1,349,326) .................................................... 1,592,793
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVIPCon)
115,637 shares (cost $2,938,135) ................................................... 3,365,048
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVIPGrOp)
108,122 shares (cost $2,439,121) ................................................... 2,499,787
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
8,967 shares (cost $65,649) ........................................................ 61,959
Nationwide SAT - Balanced Fund (NSATBal)
72,828 shares (cost $788,005) ...................................................... 750,860
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
82,003 shares (cost $2,246,094) .................................................... 2,108,290
Nationwide SAT - Equity Income Fund (NSATEqInc)
3,993 shares (cost $49,666) ........................................................ 54,029
Nationwide SAT - Global Equity Fund (NSATGlobEq)
79,979 shares (cost $1,037,981) .................................................... 1,110,914
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,373,738 shares (cost $15,062,651) ................................................ 14,822,636
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
17,724 shares (cost $172,397) ...................................................... 168,731
Nationwide SAT - Money Market Fund (NSATMyMkt)
18,625,223 shares (cost $18,625,223) ............................................... 18,625,223
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C>
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
46,383 shares (cost $437,374) .................................................. 434,609
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
47,756 shares (cost $595,172) .................................................. 588,356
Nationwide SAT - Small Cap Growth Fund (NSATSmCapGr)
134,568 shares (cost $1,646,768) ............................................... 2,649,634
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
18,295 shares (cost $180,947) .................................................. 177,824
Nationwide SAT - Small Company Fund (NSATSmCo)
119,920 shares (cost $2,152,155) ............................................... 2,652,624
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
45,624 shares (cost $824,398) .................................................. 932,551
Nationwide SAT - Strategic Value Fund (NSATStrVal)
74,463 shares (cost $686,682) .................................................. 700,697
Nationwide SAT - Total Return Fund (NSATTotRe)
7,565 shares (cost $144,965) ................................................... 142,294
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
52,017 shares (cost $784,997) .................................................. 824,464
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
30,840 shares (cost $557,690) .................................................. 749,412
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
52,914 shares (cost $1,029,191) ................................................ 1,039,223
Oppenheimer VAF - Aggressive Growth Fund (OppAggGr)
47,282 shares (cost $3,158,836) ................................................ 3,891,784
Oppenheimer VAF - Growth Fund (OppGro)
56,671 shares (cost $2,340,115) ................................................ 2,824,476
Oppenheimer VAF - Growth & Income Fund (OppGrInc)
21,466 shares (cost $498,326) .................................................. 528,714
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
33,816 shares (cost $332,236) .................................................. 482,222
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
28,749 shares (cost $301,426) .................................................. 315,085
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
36,090 shares (cost $441,693) .................................................. 446,439
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
32,459 shares (cost $406,095) .................................................. 385,936
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
25,965 shares (cost $317,697) .................................................. 433,620
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
33,744 shares (cost $502,928) .................................................. 649,900
-------------
Total investments ........................................................... 122,191,456
Accounts receivable .................................................................. -
-------------
Total assets ................................................................ 122,191,456
Accounts Payable ........................................................................ 9,645
-------------
Contract owners' equity (note 6) ........................................................ $ 122,181,811
=============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
5
<PAGE> 5
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
TOTAL ACVPincGr ACVPint
----------------------------- ----------------------------- --------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 1,347,823 167,299 165 2,209 -
Mortality and expense charges (note 3)........... (268,225) (23,151) (8,955) (336) (6,057)
------------- ------------- ------------- ------------- -------------
Net investment activity........................ 1,079,598 144,148 (8,790) 1,873 (6,057)
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold............ 103,737,887 3,278,422 1,354,371 18,460 1,371,292
Cost of mutual fund shares sold.................. (99,106,410) (3,254,787) (1,249,864) (16,283) (1,113,862)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments............ 4,631,477 23,635 104,507 2,177 257,430
Change in unrealized gain (loss) on investments . 8,306,165 2,372,478 474,730 54,426 933,102
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments................. 12,937,642 2,396,113 579,237 56,603 1,190,532
------------- ------------- ------------- ------------- -------------
Reinvested capital gains......................... 1,145,941 23,462 - - -
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 15,163,181 2,563,723 570,447 58,476 1,184,475
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 87,966,089 24,823,406 3,408,223 375,552 1,786,884
Transfers between funds.......................... - - 1,403,101 33,816 31,974
Surrenders....................................... (5,053,930) - - - -
Policy loans (net of repayments) (note 4)........ - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c).............................. (2,792,788) (487,870) (59,929) (8,540) (76,149)
------------- ------------- ------------- ------------- -------------
Net equity transactions...................... 80,119,371 24,335,536 4,751,395 400,828 1,742,709
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 95,282,552 26,899,259 5,321,842 459,304 2,927,184
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD........ 26,899,259 - 459,304 - 306,135
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 122,181,811 26,899,259 5,781,146 459,304 3,233,319
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
ACVPint ACVPValue
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ - 1,471 -
Mortality and expense charges (note 3)........... (196) (979) (77)
-------------- -------------- -------------
Net investment activity........................ (196) 492 (77)
-------------- -------------- -------------
Proceeds from mutual fund shares sold............ - 531,207 960
Cost of mutual fund shares sold.................. - (559,656) (886)
-------------- -------------- -------------
Realized gain (loss) on investments............ - (28,449) 74
Change in unrealized gain (loss) on investments . 30,775 (1,755) 5,204
-------------- -------------- -------------
Net gain (loss) on investments................. 30,775 (30,204) 5,278
-------------- -------------- -------------
Reinvested capital gains......................... - 13,940 -
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 30,579 (15,772) 5,201
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 232,301 135,463 77,512
Transfers between funds.......................... 48,928 108,543 14,883
Surrenders....................................... - - -
Policy loans (net of repayments) (note 4)........ - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c).............................. (5,673) (8,529) (1,490)
-------------- -------------- -------------
Net equity transactions...................... 275,556 235,477 90,905
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 306,135 219,705 96,106
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD........ - 96,106 -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. 306,135 315,811 96,106
============== ============== =============
</TABLE>
6
<PAGE> 6
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
DrySRGro DryStkix DryCapAp
----------------------------- ----------------------------- --------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 13 13 258,829 16,440 7,948
Mortality and expense charges (note 3)........... (448) (5) (81,140) (4,323) (4,651)
------------- ------------- ------------- ------------- -------------
Net investment activity........................ (435) 8 177,689 12,117 3,297
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold............ 224,745 403 3,342,223 74,709 1,453,876
Cost of mutual fund shares sold.................. (218,557) (360) (2,441,535) (68,241) (1,373,176)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments............ 6,188 43 900,688 6,468 80,700
Change in unrealized gain (loss) on investments . 9,379 836 2,590,489 901,380 28,294
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments................. 15,567 879 3,491,177 907,848 108,994
------------- ------------- ------------- ------------- -------------
Reinvested capital gains......................... 3,622 287 210,845 4,384 5,329
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 18,754 1,174 3,879,711 924,349 117,620
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 243,046 4,085 12,869,361 1,344,322 968,279
Transfers between funds.......................... (154,045) 3,639 9,841,358 3,839,399 146,912
Surrenders....................................... - - - - -
Policy loans (net of repayments) (note 4)........ - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c).............................. (7,180) (628) (718,132) (65,383) (65,802)
------------- ------------- ------------- ------------- -------------
Net equity transactions...................... 81,821 7,096 21,992,587 5,118,338 1,049,389
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 100,575 8,270 25,872,298 6,042,687 1,167,009
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 8,270 - 6,042,687 - 300,742
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 108,845 8,270 31,914,985 6,042,687 1,467,751
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
DryCapAp DryEuroEq
------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 1,424 602 -
Mortality and expense charges (note 3)........... (168) (35) -
-------------- -------------- -------------
Net investment activity........................ 1,256 567 -
-------------- -------------- -------------
Proceeds from mutual fund shares sold............ 18,997 18 -
Cost of mutual fund shares sold.................. (16,543) (18) -
-------------- -------------- -------------
Realized gain (loss) on investments............ 2,454 - -
Change in unrealized gain (loss) on investments . 24,110 6,597 -
-------------- -------------- -------------
Net gain (loss) on investments................. 26,564 6,597 -
-------------- -------------- -------------
Reinvested capital gains......................... - 2,828 -
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 27,820 9,992 -
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 254,590 13,600 -
Transfers between funds.......................... 26,358 271,115 -
Surrenders....................................... - - -
Policy loans (net of repayments) (note 4)........ - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c).............................. (8,026) - -
-------------- -------------- -------------
Net equity transactions...................... 272,922 284,715 -
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 300,742 294,707 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... - - -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. 300,742 294,707 -
============== ============== =============
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
FidVIPEIS FidVIPGrS FidVIPHiS
----------------------------- ----------------------------- -------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ 148 - 2,889 - 96,332
Mortality and expense charges (note 3)............ (1,161) (7) (19,541) (835) (8,494)
------------- ------------- ------------- ------------- -------------
Net investment activity......................... (1,013) (7) (16,652) (835) 87,838
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold............. 599,706 238 2,813,504 10,989 5,782,461
Cost of mutual fund shares sold................... (623,654) (216) (2,273,564) (10,235) (5,756,236)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments............. (23,948) 22 539,940 754 26,225
Change in unrealized gain (loss) on investments .. 43,792 853 1,464,627 178,559 (19,736)
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments.................. 19,844 875 2,004,567 179,313 6,489
------------- ------------- ------------- ------------- -------------
Reinvested capital gains.......................... 327 - 181,621 - 3,601
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 19,158 868 2,169,536 178,478 97,928
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 44,304 3,459 4,819,460 877,191 2,599,667
Transfers between funds........................... 1,641,238 5,196 1,504,855 536,214 (2,163,505)
Surrenders........................................ - - - - -
Policy loans (net of repayments) (note 4) ........ - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................... (10,618) (369) (127,696) (15,006) (156,897)
------------- ------------- ------------- ------------- -------------
Net equity transactions....................... 1,674,924 8,286 6,196,619 1,398,399 279,265
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 1,694,082 9,154 8,366,155 1,576,877 377,193
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ 9,154 - 1,576,877 - 957,639
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... $ 1,703,236 9,154 9,943,032 1,576,877 1,334,832
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
FidVIPHiS FidVIPOvS
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................... - 10,719 -
Mortality and expense charges (note 3).............. (736) (3,409) (415)
-------------- -------------- -------------
Net investment activity........................... (736) 7,310 (415)
-------------- -------------- -------------
Proceeds from mutual fund shares sold............... 26,665 1,042,748 35,291
Cost of mutual fund shares sold..................... (25,810) (902,237) (31,093)
-------------- -------------- -------------
Realized gain (loss) on investments............... 855 140,511 4,198
Change in unrealized gain (loss) on investments .... 56,789 194,669 48,798
-------------- -------------- -------------
Net gain (loss) on investments.................... 57,644 335,180 52,996
-------------- -------------- -------------
Reinvested capital gains............................ - 17,288 -
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations.............. 56,908 359,778 52,581
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................... 797,529 359,166 322,715
Transfers between funds............................. 126,690 586,388 302,240
Surrenders.......................................... - (346,670) -
Policy loans (net of repayments) (note 4) .......... - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)................................. (23,488) (34,454) (9,108)
-------------- -------------- -------------
Net equity transactions......................... 900,731 564,430 615,847
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................. 957,639 924,208 668,428
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .......... - 668,428 -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD................. 957,639 1,592,636 668,428
============== ============== =============
</TABLE>
8
<PAGE> 8
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
FidVIPCon FidVIPGrOp MSEmMkt
----------------------------- ----------------------------- -------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ 6,774 - 3,879 - 7,684
Mortality and expense charges (note 3)............ (10,620) (860) (5,343) (220) (556)
------------- ------------- ------------- ------------- -------------
Net investment activity......................... (3,846) (860) (1,464) (220) 7,128
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold............. 2,968,067 24,885 2,065,595 3,540 740,841
Cost of mutual fund shares sold................... (2,563,227) (23,083) (2,005,010) (3,522) (711,991)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments............. 404,840 1,802 60,585 18 28,850
Change in unrealized gain (loss) on investments .. 221,798 205,114 18,884 41,781 2,243
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments.................. 626,638 206,916 79,469 41,799 31,093
------------- ------------- ------------- ------------- -------------
Reinvested capital gains.......................... 49,679 - 7,581 - -
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 672,471 206,056 85,586 41,579 38,221
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 1,834,169 1,010,459 1,137,493 39,353 116,046
Transfers between funds........................... (277,061) 83,425 1,413,659 315,460 (176,939)
Surrenders........................................ - - (480,497) - -
Policy loans (net of repayments) (note 4) ........ - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................... (134,004) (29,838) (71,145) (3,286) (6,107)
------------- ------------- ------------- ------------- -------------
Net equity transactions....................... 1,423,104 1,064,046 1,999,510 351,527 (67,000)
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 2,095,575 1,270,102 2,085,096 393,106 (28,779)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ 1,270,102 - 393,106 - 90,735
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... $ 3,365,677 1,270,102 2,478,202 393,106 61,956
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
MSEmMkt NSATBal
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. 10,770 23,069 579
Mortality and expense charges (note 3)............ (72) (2,415) (39)
-------------- -------------- -------------
Net investment activity......................... 10,698 20,654 540
-------------- -------------- -------------
Proceeds from mutual fund shares sold............. 3,311 547,597 10,977
Cost of mutual fund shares sold................... (3,263) (547,511) (10,455)
-------------- -------------- -------------
Realized gain (loss) on investments............. 48 86 522
Change in unrealized gain (loss) on investments .. (5,933) (38,013) 868
-------------- -------------- -------------
Net gain (loss) on investments.................. (5,885) (37,927) 1,390
-------------- -------------- -------------
Reinvested capital gains.......................... - 106 221
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 4,813 (17,167) 2,151
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 76,358 440,636 64,453
Transfers between funds........................... 10,866 372,074 16,856
Surrenders........................................ - (92,593) -
Policy loans (net of repayments) (note 4) ........ - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................... (1,302) (33,872) (2,533)
-------------- -------------- -------------
Net equity transactions....................... 85,922 686,245 78,776
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 90,735 669,078 80,927
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ - 80,927 -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... 90,735 750,005 80,927
============== ============== =============
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NSATCapAp NSATEqinc NSATGLobEq
----------------------------- ----------------------------- -------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ 11,330 864 373 - 757
Mortality and expense charges (note 3)......... (5,775) (308) (518) - (1,632)
------------- ------------- ------------- ------------- -------------
Net investment activity...................... 5,555 556 (145) - (875)
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold.......... 1,154,145 39,188 212,638 - 111,896
Cost of mutual fund shares sold................ (1,109,478) (35,989) (204,435) - (112,521)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments.......... 44,667 3,199 8,203 - (625)
Change in unrealized gain (loss) on investments (170,272) 32,468 4,363 - 72,567
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments............... (125,605) 35,667 12,566 - 71,942
------------- ------------- ------------- ------------- -------------
Reinvested capital gains....................... 154,726 11,909 44 - 34,111
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 34,676 48,132 12,465 - 105,178
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 1,295,042 469,254 45,293 - 394,087
Transfers between funds........................ 388,125 (26,553) 2,148 - 626,801
Surrenders..................................... - - - - -
Policy loans (net of repayments) (note 4) ..... - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................ (79,717) (19,108) (6,008) - (17,581)
------------- ------------- ------------- ------------- -------------
Net equity transactions.................... 1,603,450 423,593 41,433 - 1,003,307
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 1,638,126 471,725 53,898 - 1,108,485
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 471,725 - - - 2,480
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 2,109,851 471,725 53,898 - 1,110,965
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
NSATGLobEq NSATGvtBd
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... 5 313,001 7,625
Mortality and expense charges (note 3)......... (3) (17,310) (306)
-------------- -------------- -------------
Net investment activity...................... 2 295,691 7,319
-------------- -------------- -------------
Proceeds from mutual fund shares sold.......... 43 5,092,894 1,249
Cost of mutual fund shares sold................ (37) (5,283,703) (1,246)
-------------- -------------- -------------
Realized gain (loss) on investments.......... 6 (190,809) 3
Change in unrealized gain (loss) on investments 365 (231,270) (8,745)
-------------- -------------- -------------
Net gain (loss) on investments............... 371 (422,079) (8,742)
-------------- -------------- -------------
Reinvested capital gains....................... 17 14,887 2,401
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 390 (111,501) 978
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 259 4,044,848 314,799
Transfers between funds........................ 1,883 10,618,629 195,168
Surrenders..................................... - (90,452) -
Policy loans (net of repayments) (note 4) ..... - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................ (52) (157,585) (6,117)
-------------- -------------- -------------
Net equity transactions.................... 2,090 14,415,440 503,850
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 2,480 14,303,939 504,828
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - 504,828 -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ 2,480 14,808,767 504,828
============== ============== =============
</TABLE>
10
<PAGE> 10
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NSATHIncBd NSATMyMkt NSATMSecBd
----------------------------- ----------------------------- --------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ 21,764 1,789 521,656 116,826 24,983
Mortality and expense charges (note 3)............ (1,034) (86) (43,048) (10,114) (1,562)
------------- ------------- ------------- ------------- -------------
Net investment activity......................... 20,730 1,703 478,608 106,712 23,421
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold............. 932,935 17,430 50,454,233 2,917,122 841,356
Cost of mutual fund shares sold................... (944,309) (16,738) (50,454,233) (2,917,122) (855,987)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments............. (11,374) 692 - - (14,631)
Change in unrealized gain (loss) on investments .. (6,600) 2,935 - - (3,411)
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments.................. (17,974) 3,627 - - (18,042)
------------- ------------- ------------- ------------- -------------
Reinvested capital gains.......................... 114 - - - -
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 2,870 5,330 478,608 106,712 5,379
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 192,247 138,276 42,289,121 14,686,986 357,691
Transfers between funds........................... (153,800) 3,992 (30,435,129) (7,412,730) (234,720)
Surrenders........................................ - - (229,248) - -
Policy loans (net of repayments) (note 4) ........ - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................... (14,343) (2,423) (526,025) (200,727) (19,579)
------------- ------------- ------------- ------------- -------------
Net equity transactions....................... 24,104 139,845 11,098,719 7,073,529 103,392
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 26,974 145,175 11,577,327 7,180,241 108,771
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ 145,175 - 7,180,241 - 325,786
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... $ 172,149 145,175 18,757,568 7,180,241 434,557
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
NSATMSecBd NSATMidCap
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. 3,801 316 4
Mortality and expense charges (note 3)............ (203) (117) (3)
-------------- -------------- -------------
Net investment activity......................... 3,598 199 1
-------------- -------------- -------------
Proceeds from mutual fund shares sold............. 2,882 5,855 44
Cost of mutual fund shares sold................... (2,846) (5,621) (37)
-------------- -------------- -------------
Realized gain (loss) on investments............. 36 234 7
Change in unrealized gain (loss) on investments .. 646 (7,207) 390
-------------- -------------- -------------
Net gain (loss) on investments.................. 682 (6,973) 397
-------------- -------------- -------------
Reinvested capital gains.......................... 233 36,162 -
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 4,513 29,388 398
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 291,490 22,145 314
Transfers between funds........................... 33,681 534,281 1,884
Surrenders........................................ - - -
Policy loans (net of repayments) (note 4) ........ - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................... (3,898) - (52)
-------------- -------------- -------------
Net equity transactions....................... 321,273 556,426 2,146
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 325,786 585,814 2,544
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ - 2,544 -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... 325,786 588,358 2,544
============== ============== =============
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NSATSmCapGr NSATSmCapV NSATSmCo
----------------------------- ----------------------------- --------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ - - - - -
Mortality and expense charges (note 3).......... (71) - (4,239) (251) (4,937)
------------- ------------- ------------- ------------- -------------
Net investment activity....................... (71) - (4,239) (251) (4,937)
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold........... 15,367 - 2,760,638 749 1,138,531
Cost of mutual fund shares sold................. (14,874) - (2,545,807) (617) (1,004,382)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments........... 493 - 214,831 132 134,149
Change in unrealized gain (loss) on investments 1,002,866 - (51,260) 48,137 455,234
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments................ 1,003,359 - 163,571 48,269 589,383
------------- ------------- ------------- ------------- -------------
Reinvested capital gains........................ 100,381 - 85,300 - 101,040
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations.......... 1,103,669 - 244,632 48,018 685,486
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................... 1,027,328 - 228,233 53,437 1,277,119
Transfers between funds......................... 518,641 - 334,145 488,017 295,719
Surrenders...................................... - - (1,189,906) - -
Policy loans (net of repayments) (note 4) ...... - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................. - - (27,322) (1,592) (82,718)
------------- ------------- ------------- ------------- -------------
Net equity transactions..................... 1,545,969 - (654,850) 539,862 1,490,120
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 2,649,638 - (410,218) 587,880 2,175,606
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ...... - - 587,880 - 457,896
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............. $ 2,649,638 - 177,662 587,880 2,633,502
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
NSATSmCo NSATStrGro
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. - - -
Mortality and expense charges (note 3)............. (266) (609) -
-------------- -------------- -------------
Net investment activity.......................... (266) (609) -
-------------- -------------- -------------
Proceeds from mutual fund shares sold.............. 4,791 200,383 -
Cost of mutual fund shares sold.................... (4,712) (164,475) -
-------------- -------------- -------------
Realized gain (loss) on investments.............. 79 35,908 -
Change in unrealized gain (loss) on investments ... 45,235 108,153 -
-------------- -------------- -------------
Net gain (loss) on investments................... 45,314 144,061 -
-------------- -------------- -------------
Reinvested capital gains........................... - 47,618 -
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............. 45,048 191,070 -
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.................................. 415,058 100,649 -
Transfers between funds............................ 12,398 647,351 -
Surrenders......................................... - - -
Policy loans (net of repayments) (note 4) ......... - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)................................ (14,608) (6,617) -
-------------- -------------- -------------
Net equity transactions........................ 412,848 741,383 -
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................ 457,896 932,453 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ......... - - -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD................ 457,896 932,453 -
============== ============== =============
</TABLE>
12
<PAGE> 12
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NSATStrVal NSATTotRe NBAMTGuard
----------------------------- ----------------------------- --------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 2,521 697 254 262 6,081
Mortality and expense charges (note 3)......... (791) (234) (440) (78) (5,563)
------------- ------------- ------------- ------------- -------------
Net investment activity...................... 1,730 463 (186) 184 518
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold.......... 649,774 5,193 474,916 975 2,794,209
Cost of mutual fund shares sold................ (613,244) (5,131) (456,195) (930) (2,473,838)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments.......... 36,530 62 18,721 45 320,371
Change in unrealized gain (loss) on investments (27,585) 41,599 (8,571) 5,900 (123,751)
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments............... 8,945 41,661 10,150 5,945 196,620
------------- ------------- ------------- ------------- -------------
Reinvested capital gains....................... 14,264 - 5,178 4,010 -
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 24,939 42,124 15,142 10,139 197,138
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 155,038 158,330 116,583 79,186 892,142
Transfers between funds........................ 246,688 87,690 (87,234) 15,559 (1,082,753)
Surrenders..................................... - - - - (329,847)
Policy loans (net of repayments) (note 4) ..... - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................ (9,632) (4,477) (5,554) (1,494) (50,939)
------------- ------------- ------------- ------------- -------------
Net equity transactions.................... 392,094 241,543 23,795 93,251 (571,397)
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 417,033 283,667 38,937 103,390 (374,259)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 283,667 - 103,390 - 1,198,660
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 700,700 283,667 142,327 103,390 824,401
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
NBAMTGuard NBAMTMCGr
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - -
Mortality and expense charges (note 3)......... (837) (6,075) (620)
-------------- -------------- -------------
Net investment activity...................... (837) (6,075) (620)
-------------- -------------- -------------
Proceeds from mutual fund shares sold.......... 7,799 3,339,559 4,507
Cost of mutual fund shares sold................ (7,186) (2,733,204) (4,091)
-------------- -------------- -------------
Realized gain (loss) on investments.......... 613 606,355 416
Change in unrealized gain (loss) on investments 163,218 (40,284) 232,006
-------------- -------------- -------------
Net gain (loss) on investments............... 163,831 566,071 232,422
-------------- -------------- -------------
Reinvested capital gains....................... - 33,171 -
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 162,994 593,167 231,802
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 795,893 744,249 440,392
Transfers between funds........................ 253,300 (501,434) 417,252
Surrenders..................................... - (1,114,722) -
Policy loans (net of repayments) (note 4) ..... - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................ (13,527) (53,045) (8,273)
-------------- -------------- -------------
Net equity transactions.................... 1,035,666 (924,952) 849,371
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 1,198,660 (331,785) 1,081,173
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - 1,081,173 -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ 1,198,660 749,388 1,081,173
============== ============== =============
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NBAMTPart OppAggGr OppGro
----------------------------- ----------------------------- --------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ 4,324 - - - 122
Mortality and expense charges (note 3)............ (3,280) (180) (4,564) (320) (2,821)
------------- ------------- ------------- ------------- -------------
Net investment activity......................... 1,044 (180) (4,564) (320) (2,699)
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold............. 1,151,119 2,278 1,169,499 857 882,266
Cost of mutual fund shares sold................... (1,133,731) (2,175) (805,309) (910) (781,544)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments............. 17,388 103 364,190 (53) 100,722
Change in unrealized gain (loss) on investments .. (10,091) 20,123 635,010 97,938 463,855
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments.................. 7,297 20,226 999,200 97,885 564,577
------------- ------------- ------------- ------------- -------------
Reinvested capital gains.......................... 7,690 - - - 1,339
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 16,031 20,046 994,636 97,565 563,217
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 775,015 200,749 746,374 248,676 723,294
Transfers between funds........................... 45,388 26,446 2,078,986 174,349 1,439,574
Surrenders........................................ - - (397,205) - -
Policy loans (net of repayments) (note 4) ........ - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................... (39,833) (4,731) (46,574) (5,124) (25,735)
------------- ------------- ------------- ------------- -------------
Net equity transactions....................... 780,570 222,464 2,381,581 417,901 2,137,133
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 796,601 242,510 3,376,217 515,466 2,700,350
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ 242,510 - 515,466 - 125,183
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... $ 1,039,111 242,510 3,891,683 515,466 2,825,533
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
OppGro OppGrinc
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. - 4,341 -
Mortality and expense charges (note 3)............ (101) (3,022) (157)
-------------- -------------- -------------
Net investment activity......................... (101) 1,319 (157)
-------------- -------------- -------------
Proceeds from mutual fund shares sold............. 28,812 1,763,439 906
Cost of mutual fund shares sold................... (30,635) (1,623,537) (797)
-------------- -------------- -------------
Realized gain (loss) on investments............. (1,823) 139,902 109
Change in unrealized gain (loss) on investments .. 20,506 4,768 25,619
-------------- -------------- -------------
Net gain (loss) on investments.................. 18,683 144,670 25,728
-------------- -------------- -------------
Reinvested capital gains.......................... - 7,313 -
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 18,582 153,302 25,571
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 86,295 171,347 104,537
Transfers between funds........................... 22,139 733,953 149,203
Surrenders........................................ - (782,790) -
Policy loans (net of repayments) (note 4) ........ - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................... (1,833) (24,094) (2,412)
-------------- -------------- -------------
Net equity transactions....................... 106,601 98,416 251,328
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 125,183 251,718 276,899
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ - 276,899 -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... 125,183 528,617 276,899
============== ============== =============
</TABLE>
14
<PAGE> 14
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
VEWrldEMkt VEWrldHAs VKMSRESec
----------------------------- ----------------------------- --------------
1999 1998 1999 1998 1999
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - - 1,327 - 7,347
Mortality and expense charges (note 3)........... (1,393) (102) (701) (68) (997)
------------- ------------- ------------- ------------- -------------
Net investment activity........................ (1,393) (102) 626 (68) 6,350
------------- ------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold............ 502,179 2,077 357,028 1,076 1,051,015
Cost of mutual fund shares sold.................. (416,510) (1,987) (333,858) (1,070) (1,068,159)
------------- ------------- ------------- ------------- -------------
Realized gain (loss) on investments............ 85,669 90 23,170 6 (17,144)
Change in unrealized gain (loss) on investments . 134,693 15,293 15,698 (2,039) 4,238
------------- ------------- ------------- ------------- -------------
Net gain (loss) on investments................. 220,362 15,383 38,868 (2,033) (12,906)
------------- ------------- ------------- ------------- -------------
Reinvested capital gains......................... - - - - -
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 218,969 15,281 39,494 (2,101) (6,556)
------------- ------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 242,033 87,572 63,607 75,264 365,673
Transfers between funds.......................... (96,346) 32,251 135,707 10,866 82,451
Surrenders....................................... - - - - -
Policy loans (net of repayments) (note 4) ....... - - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c).............................. (15,612) (1,951) (6,389) (1,280) (16,453)
------------- ------------- ------------- ------------- -------------
Net equity transactions...................... 130,075 117,872 192,925 84,850 431,671
------------- ------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 349,044 133,153 232,419 82,749 425,115
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 133,153 - 82,749 - 14,393
------------- ------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 482,197 133,153 315,168 82,749 439,508
============= ============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
VKMSRESec WPGrinc
-------------- ------------------------------
1998 1999 1998
-------------- -------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ - 3,241 2,979
Mortality and expense charges (note 3)........... (2) (1,366) (289)
-------------- -------------- -------------
Net investment activity........................ (2) 1,875 2,690
-------------- -------------- -------------
Proceeds from mutual fund shares sold............ 33 1,052,934 5,560
Cost of mutual fund shares sold.................. (30) (971,396) (5,306)
-------------- -------------- -------------
Realized gain (loss) on investments............ 3 81,538 254
Change in unrealized gain (loss) on investments . 508 (55,089) 34,931
-------------- -------------- -------------
Net gain (loss) on investments................. 511 26,449 35,185
-------------- -------------- -------------
Reinvested capital gains......................... - 5,836 -
-------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 509 34,160 37,875
-------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 311 394,540 373,642
Transfers between funds.......................... 13,626 (481,400) 59,416
Surrenders....................................... - - -
Policy loans (net of repayments) (note 4) ....... - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c).............................. (53) (21,207) (12,701)
-------------- -------------- -------------
Net equity transactions...................... 13,884 (108,067) 420,357
-------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 14,393 (73,907) 458,232
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... - 458,232 -
-------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. 14,393 384,325 458,232
============== ============== =============
</TABLE>
15
<PAGE> 15
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEAR ENDED DECEMBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
WPintEq WPPVenCap
----------------------------- -----------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 3,563 1,012 - -
Mortality and expense charges (note 3)........... (1,380) (180) (1,176) (154)
------------- ------------- ------------- -------------
Net investment activity........................ 2,183 832 (1,176) (154)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold............ 404,610 3,488 386,218 1,938
Cost of mutual fund shares sold.................. (342,261) (3,431) (313,701) (1,774)
------------- ------------- ------------- -------------
Realized gain (loss) on investments............ 62,349 57 72,517 164
Change in unrealized gain (loss) on investments . 100,275 15,648 110,736 36,237
------------- ------------- ------------- -------------
Net gain (loss) on investments................. 162,624 15,705 183,253 36,401
------------- ------------- ------------- -------------
Reinvested capital gains......................... - - - -
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 164,807 16,537 182,077 36,247
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 289,591 160,067 237,003 162,740
Transfers between funds.......................... (230,513) 51,953 25,075 24,240
Surrenders....................................... - - - -
Policy loans (net of repayments) (note 4) ....... - - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c).............................. (15,580) (3,326) (14,132) (3,441)
------------- ------------- ------------- -------------
Net equity transactions...................... 43,498 208,694 247,946 183,539
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 208,305 225,231 430,023 219,786
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 225,231 - 219,786 -
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 433,536 225,231 649,809 219,786
============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 16
NATIONWIDE VL SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VL Separate Account-C (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
and Annuity Insurance Company (the Company) on December 3, 1997. The
Account has been registered as a unit investment trust under the
Investment Company Act of 1940.
On May 3, 1999, the Company (Depositor) transferred to the Account
100,000 shares of the Nationwide SAT - Small Cap Growth Fund for which
the Account was credited with 100,000 units of the Nationwide SAT -
Small Cap Growth Fund. The value of the units purchased by the Company
on May 3, 1999 was $1,000,000.
The Company offers Corporate Flexible Premium Variable Life Insurance
Policies through the Account.
(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 policy charges, and note 3 for asset
charges.
Contract owners 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 Equity Portfolio (DryEuroEq)
Federated Insurance Series - 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
(FidVIPCon)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio - Service
Class (FidVIPGrOp)
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)
(Continued)
17
<PAGE> 17
NATIONWIDE VL SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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)
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
Nationwide SAT - Small Cap Growth Fund (NSATSmCapGr)
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 (OppAggGr)
(formerly Oppenheimer VAF - Capital Appreciation Fund)
Oppenheimer VAF - Growth Fund (OppGro)
Oppenheimer VAF - Growth & Income Fund (OppGrInc)
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)
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 except for Federated Insurance Series - Quality Bond Fund II. 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.
18
<PAGE> 18
(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.
(2) POLICY CHARGES
(a) Deductions from Premium
The Company deducts a charge for state premium taxes of 3.5% on all
premiums received to cover the payment of premium taxes. Additionally,
the Company deducts a front-end sales load not to exceed 5.5% from each
premium payment received. The Company may at its sole discretion reduce
this sales loading.
(b) Cost of Insurance
A cost of insurance charge is assessed monthly against each contract by
liquidating units. The amount of the charge is based upon age, sex,
rate class and net amount at risk (death benefit less total contract
value).
(c) Administrative Charges
The Company deducts a monthly administrative expense charge to recover
policy maintenance, accounting, record keeping and other administrative
expenses and is assessed against each contract by liquidating units.
Currently, this charge is $5.00 per month in all policy years. On a
guaranteed basis this charge is $10.00 per month in all policy years.
(3) Asset charges
For corporate flexible premium contracts, the Company deducts a charge from
the contract to cover mortality and expense risk charges related to
operations. This charge is guaranteed not to exceed an annual rate of .75%.
Currently, this rate is .40% during the first through fourth policy years,
.25% during the fifth through twentieth policy years, and .10% thereafter.
For the reduced fee tier corporate flexible premium contracts the current
rate is .10% for all policy years.
Nationwide may reduce or eliminate certain charges, where the size or
nature of the group results in savings in sales, underwriting,
administrative or other costs, to Nationwide. These charges may be reduced
in certain group, sponsored arrangements or special exchange programs made
available by Nationwide.
(4) Policy Loans (Net of Repayments)
Contract provisions allow contract owners to borrow 90% of a policy's cash
surrender value. Interest is charged on the outstanding loan and is due and
payable in advance on the policy anniversary.
At the time the loan is granted, the amount of the loan is transferred from
the Account to the Company's general account as collateral for the
outstanding loan. Collateral amounts in the general account are credited
with the stated rate of interest in effect at the time the loan is made,
subject to a guaranteed minimum rate. Interest credited is paid by the
Company's general account to the Account. Loan repayments result in a
transfer of collateral including interest back to the Account. There were
no policy loans in the current year.
(Continued)
19
<PAGE> 19
NATIONWIDE VL SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(5) 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.
20
<PAGE> 20
(7) 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>
The BEST of AMERICA(R)
America's FUTURE Life Series(SM):
American Century VP - American
Century VP Income & Growth ................. 233,365 $ 12.803106 $ 2,987,797 18%
American Century VP - American
Century VP International ................... 181,283 15.960157 2,893,305 63%
American Century VP - American
Century VP Value ........................... 34,114 9.257533 315,811 (1)%
The Dreyfus Socially Responsible
Growth Fund, Inc. .......................... 7,538 14.439525 108,845 30%
Dreyfus Stock Index Fund ...................... 2,198,099 13.249543 29,123,807 20%
Dreyfus VIF -
Capital Appreciation Portfolio ............. 119,919 12.239522 1,467,751 11%
Dreyfus VIP -
European Equity Portfolio .................. 22,815 12.917253 294,707 29%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class .............................. 162,451 10.484615 1,703,236 6%
Fidelity VIP - Growth Portfolio -
Service Class .............................. 444,364 16.475102 7,320,942 37%
Fidelity VIP - High Income Portfolio -
Service Class .............................. 137,733 9.691447 1,334,832 8%
Fidelity VIP - Overseas Portfolio -
Service Class .............................. 118,048 13.491426 1,592,636 42%
Fidelity VIP-II - Contrafund Portfolio -
Service Class .............................. 240,062 14.020034 3,365,677 24%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class .................. 212,333 11.671298 2,478,202 4%
Morgan Stanley -
Emerging Markets Debt Portfolio ............ 7,107 8.717559 61,956 29%
Nationwide SAT - Balanced Fund ................ 74,582 10.056111 750,005 0%
Nationwide SAT -
Capital Appreciation Fund .................. 181,521 11.623180 2,109,851 4%
Nationwide SAT - Equity Income Fund ........... 4,316 12.487973 53,898 18%
Nationwide SAT - Global Equity Fund ........... 87,461 12.702408 1,110,965 22%
Nationwide SAT - Government Bond Fund ......... 755,102 10.372218 7,832,083 (3)%
Nationwide SAT - High Income Bond Fund ........ 16,667 10.328712 172,149 3%
Nationwide SAT - Money Market Fund ............ 1,550,267 10.776865 16,707,018 4%
Nationwide SAT - Multi Sector Bond Fund ....... 41,704 10.106222 421,470 1%
Nationwide SAT -
Select Advisers Mid Cap Fund ............... 49,740 11.828670 588,358 20%
Nationwide SAT - Small Cap Growth Fund ........ 29,320 20.447188 599,512 104%(a)
Initial funding by depositor (see note 1a) .... 100,000 20.501257 2,050,126 105%(a)
Nationwide SAT - Small Cap Value Fund ......... 16,261 10.925665 177,662 27%
Nationwide SAT - Small Company Fund ........... 202,708 12.991606 2,633,502 43%
Nationwide SAT - Strategic Growth Fund ........ 48,159 19.361969 932,453 84%
Nationwide SAT - Strategic Value Fund ......... 79,877 8.772237 700,700 (3)%
</TABLE>
(Continued)
21
<PAGE> 21
NATIONWIDE VL SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- -------
<S> <C> <C> <C> <C>
Nationwide SAT - Total Return Fund .............. 13,172 10.805244 142,327 7%
Neuberger & Berman AMT -
Guardian Portfolio ........................... 49,845 10.690765 532,881 14%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio ..................... 43,280 17.314889 749,388 53%
Neuberger & Berman AMT -
Partners Portfolio ........................... 104,066 9.985118 1,039,111 7%
Oppenheimer VAF -
Aggressive Growth Fund ....................... 178,401 17.712996 3,160,016 83%
Oppenheimer VAF - Growth Fund ................... 127,994 15.039330 1,924,944 41%
Oppenheimer VAF -
Growth & Income Fund ......................... 48,784 10.835877 528,617 21%
Van Eck WIT -
Worldwide Emerging Markets Fund .............. 38,228 12.613718 482,197 99%
Van Eck WIT -
Worldwide Hard Assets Fund ................... 38,220 8.246159 315,168 21%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ............. 51,147 8.593033 439,508 (4)%
Warburg Pincus Trust -
Growth & Income Portfolio .................... 36,533 10.519954 384,325 6%
Warburg Pincus Trust -
International Equity Portfolio ............... 31,892 13.593893 433,536 53%
Warburg Pincus Trust -
Post Venture Capital Portfolio ............... 44,018 14.762349 649,809 63%
The BEST of AMERICA(R)
America's FUTURE Life Series(SM) Reduced Fee Tier:
American Century VP - American
Century VP Income & Growth ................... 242,505 11.518727 2,793,349 15%
American Century VP - American
Century VP International ..................... 21,260 15.993145 340,014 60%
Dreyfus Stock Index Fund ........................ 244,230 11.428481 2,791,178 14%
Fidelity VIP - Growth Portfolio -
Service Class ................................ 208,919 12.550748 2,622,090 26%
Nationwide SAT - Government Bond Fund ........... 705,360 9.890955 6,976,684 (1)%
Nationwide SAT - Money Market Fund .............. 197,969 10.357933 2,050,550 4%
Nationwide SAT - Multi Sector Bond Fund ......... 1,287 10.168791 13,087 2%
Neuberger & Berman AMT -
Guardian Portfolio ........................... 26,597 10.960631 291,520 10%
Oppenheimer VAF -
Aggressive Growth Fund ....................... 44,061 16.605768 731,667 64%
Oppenheimer VAF - Growth Fund ................... 68,065 13.231306 900,589 32%
======== =========== -------------
$ 122,181,811
=============
</TABLE>
(a) Non-annualized. These returns were computed for the periods 9/27/99 and
5/03/99 (effective dates) through 12/31/99 for the Dreyfus VIP - European
Equity Portfolio and Nationwide SAT - Small Cap Growth Fund, respectively.
(b) The annual return does not include contract charges satisfied by surrending
units.
- --------------------------------------------------------------------------------
22
<PAGE> 22
Independent Auditors' Report
----------------------------
The Board of Directors of Nationwide Life and Annuity Insurance Company and
Contract Owners of Nationwide VL Separate Account-C:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide VL Separate Account-C (comprised of the
sub-accounts listed in note 1(b)) (collectively, "the Account") as of December
31, 1999, and the related statement of operations and changes in contract
owners' equity for the year ended December 31, 1999 and the period May 1, 1998
(commencement of operations) through December 31, 1998. 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 audit.
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. 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 the year ended December 31, 1999 and the period May 1, 1998
(commencement of operations) through December 31, 1998 in conformity with
generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
- --------------------------------------------------------------------------------
23
<PAGE> 23
<TABLE>
<CAPTION>
<S> <C>
--------------
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual Insurance Company
</TABLE>
