<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT
ANNUAL REPORT
TO
CONTRACT OWNERS
DECEMBER 31, 1995
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43216
[PICTURE OF PETER F. FRENZER, PRESIDENT]
PRESIDENT'S MESSAGE
Nationwide Life Insurance Company is pleased to bring you the 1995 annual report
of the Nationwide Variable Account.
Both equity and fixed income investments turned in a stellar performance during
1995. The major market indices ended the year fully one-third or more higher
than their levels at the beginning of the year. These results equate directly to
the returns enjoyed by our variable annuity participants and contract owners.
Low interest rates and modest inflation should provide a continued favorable
environment for stocks and fixed income investments during 1996. Slowing levels
of economic activity and uncertainty about corporate profits may, however,
dampen a repeat of the strong 1995 market performance. The diverse offering of
investment options within your contract should enable you to take advantage of
changing market conditions.
The year 1995 was a record-setting sales year for our variable investment
products. For this we thank you, our valued customer, for your confidence in the
Nationwide Insurance Enterprise and in our products. Please do not hesitate to
let us know how we can better serve your financial planning and retirement
needs.
/s/ Peter F. Frenzer
---------------------------
Peter F. Frenzer, President
2
<PAGE> 3
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NATIONWIDE VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
Delaware Group Delchester High-Yield Bond Fund, Inc. - Delchester Fund
Institutional Class (DeHyBd)
128,274 shares (cost $830,095).......................................... $ 799,146
Dreyfus A Bonds Plus, Inc. (DryABds)
38,435 shares (cost $543,964)........................................... 573,452
Dreyfus S&P 500 Index Fund (Dry500Ix)
25,439 shares (cost $441,378)........................................... 483,346
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
19,137 shares (cost $145,856)........................................... 157,688
The Evergreen Total Return Fund - Class Y (EvTotRet)
38,436 shares (cost $746,258)........................................... 765,641
Fidelity Asset Manager(TM) (FidAsMgr)
140,095 shares (cost $2,053,447)........................................ 2,220,511
Fidelity Capital & Income Fund (FidCapIn)
155,140 shares (cost $1,319,326)........................................ 1,421,081
Fidelity Equity-Income Fund (FidEqInc)
322,227 shares (cost $10,020,804)....................................... 12,222,089
Fidelity Magellan(R) Fund (FidMgln)
105,965 shares (cost $8,110,929)........................................ 9,110,906
Fidelity Puritan Fund (FidPurtn)
255,404 shares (cost $4,071,433)........................................ 4,344,424
Fidelity VIP - High Income Portfolio (FidHiInc)
36,914 shares (cost $421,562)........................................... 444,813
Janus Twenty Fund (Jan20Fd)
44,023 shares (cost $1,120,595)......................................... 1,130,065
MFS(R) World Governments Fund - Class A (MFSWdGvt)
110,656 shares (cost $1,301,562)........................................ 1,219,428
Nationwide(R) Bond Fund (NWBdFd)
152,673 shares (cost $1,466,716)........................................ 1,493,137
Nationwide(R) Fund (NWFund)
101,546 shares (cost $1,541,872)........................................ 1,788,228
Nationwide(R) Growth Fund (NWGroFd)
260,900 shares (cost $2,674,654)........................................ 3,216,893
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C>
Nationwide(R) Money Market Fund (NWMyMkt)
9,255,173 shares (cost $9,255,173)...................................... 9,255,173
Neuberger & Berman Guardian Fund (NBGuard)
75,897 shares (cost $1,645,853)......................................... 1,747,909
Neuberger & Berman Limited Maturity Bond Fund (NBLtdMat)
97,260 shares (cost $969,786)........................................... 987,192
Neuberger & Berman Partners Fund (NBPartFd)
49,549 shares (cost $1,069,012)......................................... 1,097,025
Oppenheimer Global Fund - Class A (OppGlob)
71,647 shares (cost $2,500,229)......................................... 2,499,779
Phoenix Balanced Fund Series - Class A (PhxBalFd)
16,103 shares (cost $257,112)........................................... 270,526
Strong Total Return Fund, Inc. (StTotRet)
21,668 shares (cost $570,584)........................................... 614,935
Templeton Foreign Fund - Class I (TemForFd)
83,517 shares (cost $772,935)........................................... 766,686
Twentieth Century Growth Investors (TCGroInv)
545,125 shares (cost $11,527,624)....................................... 10,569,971
Twentieth Century International Equity (TCIntlEq)
38,477 shares (cost $288,806)........................................... 299,354
Twentieth Century Ultra Investors (TCUltra)
125,466 shares (cost $2,834,209)........................................ 3,275,919
Twentieth Century U.S. Governments Short-Term (TCUSGvt)
463,231 shares (cost $4,415,647)........................................ 4,437,748
-----------
Total investments................................................... 77,213,065
Accounts receivable......................................................... 13,735
-----------
Total assets........................................................ 77,226,800
Accounts payable............................................................ 424
-----------
Contract owners' equity (note 4)............................................ $77,226,376
===========
</TABLE>
See accompanying notes to financial statements.
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4
<PAGE> 5
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NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
------------ ----------- -----------
<S> <C> <C> <C>
Investment activity:
Reinvested capital gains and dividends.................. $ 5,403,676 4,476,720 2,952,700
Gain (loss) on investments: ------------ ----------- -----------
Proceeds from redemptions of mutual fund shares..... 19,494,999 19,343,653 14,007,169
Cost of mutual fund shares sold..................... (19,182,917) (18,215,058) (11,941,205)
------------ ----------- -----------
Realized gain (loss) on investments................. 312,082 1,128,595 2,065,964
Change in unrealized gain (loss) on investments..... 6,984,871 (5,977,389) (991,082)
------------ ----------- -----------
Net gain (loss) on investments.................. 7,296,953 (4,848,794) 1,074,882
------------ ----------- -----------
Net investment activity..................... 12,700,629 (372,074) 4,027,582
------------ ----------- -----------
Equity transactions:
Purchase payments received from contract
owners.............................................. 21,817,759 16,078,025 5,555,624
Redemptions............................................. (11,831,829) (5,989,583) (5,484,670)
Annuity benefits........................................ (18,792) (19,197) (19,218)
Adjustments to maintain reserves........................ 5,498 1,593 2,272
------------ ----------- -----------
Net equity transactions..................... 9,972,636 10,070,838 54,008
------------ ----------- -----------
Expenses (note 2):
Contract charges........................................ (898,746) (735,120) (641,707)
Contingent deferred sales charges....................... (43,999) (50,816) (70,164)
------------ ----------- -----------
Total expenses.............................. (942,745) (785,936) (711,871)
------------ ----------- -----------
Net change in contract owners' equity....................... 21,730,520 8,912,828 3,369,719
Contract owners' equity beginning of period................. 55,495,856 46,583,028 43,213,309
------------ ----------- -----------
Contract owners' equity end of period....................... $ 77,226,376 55,495,856 46,583,028
============ =========== ===========
</TABLE>
See accompanying notes to financial statements.
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5
<PAGE> 6
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NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995, 1994 AND 1993
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide Variable Account (the Account) was established pursuant to
a resolution of the Board of Directors of Nationwide Life Insurance Company (the
Company) on March 3, 1976. The Account has been registered as a unit investment
trust under the Investment Company Act of 1940.
The Company offers Individual Deferred Variable Annuity Contracts through
the Account. As of December 25, 1982, only tax qualified contracts are issued.
The primary distribution for the contracts is through the Company for Individual
Retirement Account rollovers; however, other distributors may be 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:
Delaware Group Delchester High-Yield Bond Fund, Inc. - Delchester Fund
Institutional Class (DeHyBd)
Dreyfus A Bonds Plus, Inc. (DryABds)
Dreyfus S&P 500 Index Fund (Dry500Ix) (formerly Peoples Index Fund(R),
Inc. (PeoIxFd))
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
The Evergreen Total Return Fund - Class Y (EvTotRet)
Fidelity Advisor Equity-Income Fund - Class A (FAEqInc)
Fidelity Advisor Growth Opportunities Fund - Class A (FAGrOpp)
Fidelity Advisor High Yield Fund - Class A (FAHiYld)
Fidelity Advisor Income & Growth Fund - Class A (FAIncGr)
Fidelity Asset Manager(TM) (FidAsMgr)
Fidelity Capital & Income Fund (FidCapIn)
(not available for additional purchase payments or exchanges after
May 1, 1991)
Fidelity Equity-Income Fund (FidEqInc)
Fidelity Magellan(R) Fund (FidMgln)
Fidelity Puritan Fund (FidPurtn)
Portfolio of the Fidelity Variable Insurance Products Fund (Fidelity
VIP); Fidelity VIP - High Income Portfolio (FidHiInc) (not
available for additional purchase payments or exchanges after
December 1, 1993)
Janus Fund (JanFund)
Janus Twenty Fund (Jan20Fd)
MFS(R) World Governments Fund - Class A (MFSWdGvt)
Nationwide(R) Bond Fund (NWBdFd) (managed for a fee by an affiliated
investment advisor)
Nationwide(R) Fund (NWFund) (managed for a fee by an affiliated
investment advisor)
Nationwide(R) Growth Fund (NWGroFd) (managed for a fee by an
affiliated investment advisor)
Nationwide(R) Money Market Fund (NWMyMkt) (managed for a fee by an
affiliated investment advisor)
Nationwide(R) U.S. Government Income Fund (NWUSGvt)
(managed for a fee by an affiliated investment advisor)
Neuberger & Berman Guardian Fund (NBGuard)
Neuberger & Berman Limited Maturity Bond Fund (NBLtdMat)
Neuberger & Berman Partners Fund (NBPartFd)
Oppenheimer Global Fund - Class A (OppGlob)
Phoenix Balanced Fund Series - Class A (PhxBalFd)
Strong Total Return Fund, Inc. (StTotRet)
Templeton Foreign Fund - Class I (TemForFd)
Twentieth Century Growth Investors (TCGroInv)
Twentieth Century International Equity (TCIntlEq)
Twentieth Century Ultra Investors (TCUltra)
Twentieth Century U.S. Governments Short-Term (TCUSGvt)
Warburg Pincus Emerging Growth - Common Shares (WPEmGro)
6
<PAGE> 7
At December 31, 1995, contract owners have invested in all of the above
funds, except the Fidelity Advisor Equity-Income Fund - Class A, the Fidelity
Advisor Growth Opportunities Fund - Class A, the Fidelity Advisor High Yield
Fund - Class A, the Fidelity Advisor Income & Growth Fund - Class A, the Janus
Fund, the Nationwide(R) U.S. Government Income Fund, and the Warburg Pincus
Emerging Growth - Common Shares.
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.
(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, 1995. The cost of investments sold is
determined on a 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) EXPENSES
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. For
contracts issued prior to January 1, 1993, the contingent deferred sales charge
will be equal to 5% of the lesser of the total of all purchase payments made
within 96 months prior to the date of the request for surrender or the amount
surrendered. For contracts issued on or after January 1, 1993, the Company will
deduct a contingent deferred sales charge not to exceed 7% of the lesser of
purchase payments or the amount surrendered, such charge declining 1% per year,
to 0%, after the purchase payment has been held in the contract for 84 months.
No sales charges are deducted on redemptions used to purchase units in the fixed
investment options of the Company.
The following administrative charges are deducted by the Company: (a) an
annual contract maintenance charge of $30, with certain exceptions, which is
satisfied by surrendering units; and (b) for contracts issued prior to January
1, 1993, a charge for mortality and expense risk assessed through the daily unit
value calculation equal to an annual rate of 0.80% and 0.50%, respectively; for
contracts issued on or after January 1, 1993, a mortality risk charge, an
expense risk charge and an administration charge assessed through the daily unit
value calculation equal to an annual rate of 0.80%, 0.45% and 0.05%,
respectively.
7
<PAGE> 8
(3) SCHEDULE I
Schedule I presents the components of the change in the unit values,
which are the basis for contract owners' equity. This schedule is presented in
the following format:
- Beginning unit value - Jan. 1
- Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to
capital gains and dividend distributions from the underlying
mutual funds.)
- Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the
underlying mutual funds.)
- Contract charges
(This amount reflects the decrease in the unit value due to the
mortality risk charge, expense risk charge and administration
charge discussed in note 2.)
- Ending unit value - Dec. 31
- Percentage increase (decrease) in unit value.
For contracts in the payout phase, an assumed investment return of 3.5%,
used in the calculation of the annuity benefit payment amount, results in a
corresponding reduction in the components of the unit values as shown in
Schedule I.
8
<PAGE> 9
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1995,
for each series, in both the accumulation and payout phases.
<TABLE>
<CAPTION>
Contract owners' equity represented by: Units Unit Value
------- ----------
<S> <C> <C>
Contracts in accumulation phase:
Delaware Group Delchester High-Yield
Bond Fund, Inc. - Delchester Fund
Institutional Class:
Tax qualified...................................... 65,214 $12.257125 $ 799,336
Dreyfus A Bonds Plus, Inc.:
Tax qualified...................................... 53,005 10.819193 573,471
Dreyfus S&P 500 Index Fund:
Tax qualified...................................... 33,323 14.505515 483,367
The Dreyfus Third Century Fund, Inc.:
Tax qualified...................................... 12,292 12.829548 157,701
The Evergreen Total Return Fund - Class Y:
Tax qualified...................................... 60,789 12.594984 765,636
Fidelity Asset Manager(TM):
Tax qualified...................................... 198,546 11.183603 2,220,460
Fidelity Capital & Income Fund:
Tax qualified...................................... 37,608 37.550944 1,412,216
Fidelity Equity-Income Fund:
Tax qualified...................................... 263,736 46.285491 12,207,150
Fidelity Magellan(R) Fund:
Tax qualified...................................... 563,859 16.158074 9,110,875
Fidelity Puritan Fund:
Tax qualified...................................... 301,466 14.410892 4,344,394
Fidelity VIP - High Income Portfolio:
Tax qualified...................................... 22,970 19.364421 444,801
Janus Twenty Fund:
Tax qualified...................................... 96,594 11.699046 1,130,058
MFS(R) World Governments Fund - Class A:
Tax qualified...................................... 34,015 35.454983 1,206,001
Nationwide(R) Bond Fund:
Tax qualified...................................... 38,843 37.782872 1,467,600
Non-tax qualified.................................. 622 37.620900 23,400
Nationwide(R) Fund:
Tax qualified...................................... 30,473 57.857937 1,763,105
Non-tax qualified.................................. 258 60.264917 15,548
Nationwide(R) Growth Fund:
Tax qualified...................................... 48,841 65.471148 3,197,676
Non-tax qualified.................................. 120 69.129314 8,296
Nationwide(R) Money Market Fund:
Tax qualified - Pre 12/25/82....................... 49,996 23.797066 1,189,758
Tax qualified...................................... 424,693 18.898613 8,026,109
Non-tax qualified.................................. 1,323 23.947460 31,682
Neuberger & Berman Guardian Fund:
Tax qualified...................................... 139,046 12.571028 1,747,951
Neuberger & Berman Limited Maturity Bond Fund:
Tax qualified...................................... 91,976 10.735070 987,369
Neuberger & Berman Partners Fund:
Tax qualified...................................... 73,504 14.924653 1,097,022
Oppenheimer Global Fund - Class A:
Tax qualified...................................... 160,871 15.538850 2,499,750
Phoenix Balanced Fund Series - Class A:
Tax qualified...................................... 23,786 11.373217 270,523
Strong Total Return Fund, Inc.:
Tax qualified...................................... 41,291 14.893186 614,955
Templeton Foreign Fund - Class I:
Tax qualified...................................... 69,083 11.097523 766,650
Twentieth Century Growth Investors:
Tax qualified...................................... 231,124 45.274141 10,463,941
Twentieth Century International Equity:
Tax qualified...................................... 25,477 11.748911 299,327
Twentieth Century Ultra Investors:
Tax qualified...................................... 266,570 12.289075 3,275,899
Twentieth Century U.S. Governments Short-Term:
Tax qualified...................................... 216,620 20.449954 4,429,869
======= ==========
Reserves for annuity contracts in payout phase:
Tax qualified...................................... 194,480
-----------
$77,226,376
===========
</TABLE>
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9
<PAGE> 10
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SCHEDULE I
NATIONWIDE VARIABLE ACCOUNT
TAX QUALIFIED
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
DeHyBd DryABds Dry500Ix Dry3dCen EvTotRet FidAsMgr FidCapIn FidEqInc
------ ------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1995***
Beginning unit value - Jan. 1 $10.867271 9.110600 10.749166 9.570659 10.301799 9.589367 32.589111 35.576037
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.215468 .658102 .397253 .897413 .668749 .319835 3.427571 2.721500
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .327407 1.181188 3.524795 2.507797 1.773798 1.408821 2.006467 8.520244
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.153021) (.130697) (.165699) (.146321) (.149362) (.134420) (.472205) (.532290)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $12.257125 10.819193 14.505515 12.829548 12.594984 11.183603 37.550944 46.285491
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 13% 19% 35% 34% 22% 17% 15% 30%
===================================================================================================================================
1994
Beginning unit value - Jan. 1 $11.511092 10.000000 10.819026 10.477293 11.153183 10.415849 34.612981 35.955883
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.272604 .673864 1.169814 1.340681 .771284 .386944 2.899199 3.474735
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (1.770117) (1.452714) (1.099729) (2.117415) (1.484673) (1.082752) (4.479225) (3.384084)
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.146308) ( .110550) (.139945) (.129900) (.137995) (.130674) (.443844) (.470497)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $10.867271 9.110600 10.749166 9.570659 10.301799 9.589367 32.589111 35.576037
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) (6)% (9)%(b) (1)% (9)% (8)% (8)% (6)% (1)%
===================================================================================================================================
1993
Beginning unit value - Jan. 1 $10.000000 ** 10.000000 10.000000 10.000000 10.000000 28.076548 30.029661
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.182306 .620996 .763556 1.208371 .409348 2.810534 1.323037
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .471495 .332942 (.155922) .084471 .034341 4.147502 5.040278
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.142709) (.134912) (.130341) (.139659) (.027840) (.421603) (.437093)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $11.511092 10.819026 10.477293 11.153183 10.415849 34.612981 35.955883
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 15%(b) 8%(b) 5%(b) 12%(b) 4%(b) 23% 20%
===================================================================================================================================
</TABLE>
*An annualized rate of return cannot be determined as:
(a) Contract charges do not include the annual contract maintenance charge
discussed in note 2; and
(b) This investment option was not utilized for the entire year indicated.
**This investment option was not available or was not utilized.
***No other investment options were being utilized.
10
<PAGE> 11
SCHEDULE I, CONTINUED
NATIONWIDE VARIABLE ACCOUNT
TAX QUALIFIED
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
FidMgln FidPurtn FidHiInc Jan20Fd MFSWdGvt NWBdFd NWFund
---------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1995**
Beginning unit value - Jan. 1 $11.964387 12.020413 16.267014 8.701036 31.104159 30.832258 45.095466
- ----------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .938243 .761762 1.177771 1.991385 4.432437 2.340919 3.894595
- ----------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 3.445891 1.800691 2.155057 1.142737 .359301 5.062302 9.527720
- ----------------------------------------------------------------------------------------------------------------------
Contract charges (.190447) (.171974) (.235421) (.136112) (.440914) (.452607) (.659844)
- ----------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $16.158074 14.410892 19.364421 11.699046 35.454983 37.782872 57.857937
- ----------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 35% 20% 19% 34% 14% 23% 28%
======================================================================================================================
1994
Beginning unit value - Jan. 1 $12.346838 11.972512 16.739460 9.451097 33.728667 33.991130 45.422888
- ----------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .480494 .964375 1.533862 .025710 1.658769 2.317590 4.420863
- ----------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.704119) (.757623) (1.790091) (.657508) (3.874555) (5.061696) (4.160340)
- ----------------------------------------------------------------------------------------------------------------------
Contract charges (.158826) (.158851) (.216217) (.118263) (.408722) (.414766) (.587945)
- ----------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $11.964387 12.020413 16.267014 8.701036 31.104159 30.832258 45.095466
- ----------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) (3)% 0% (3)% (8)% (8)% (9)% (1)%
======================================================================================================================
1993
Beginning unit value - Jan. 1 $10.000000 10.000000 14.073333 10.000000 28.864451 31.104546 43.104048
- ----------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.173742 1.451507 1.157225 .264912 3.190912 2.458273 3.251045
- ----------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.321301 .666192 1.712047 (.787472) 2.083311 .864801 (.371871)
- ----------------------------------------------------------------------------------------------------------------------
Contract charges (.148205) (.145187) (.203145) (.026343) (.410007) (.436490) (.560334)
- ----------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $12.346838 11.972512 16.739460 9.451097 33.728667 33.991130 45.422888
- ----------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 23%(b) 20%(b) 19% (5)%(b) 17% 9% 5%
======================================================================================================================
</TABLE>
*An annualized rate of return cannot be determined as:
(a) Contract charges do not include the annual contract maintenance charge
discussed in note 2; and
(b) This investment option was not utilized for the entire year indicated.
**No other investment options were being utilized.
11
<PAGE> 12
SCHEDULE I, CONTINUED
NATIONWIDE VARIABLE ACCOUNT
TAX QUALIFIED
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
NWMyMkt
NWGroFd Pre 12/25/82 NWMyMkt NBGuard NBLtdMat NBPartFd OppGlob
--------- ------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1995***
Beginning unit value - Jan. 1 $51.535806 22.850271 18.146709 9.640402 9.833352 11.183371 13.503390
- -------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 6.923629 1.251864 .994176 .546753 .635595 1.728556 .955752
- -------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 7.791689 .000000 .000000 2.533695 .401069 2.184589 1.269343
- -------------------------------------------------------------------------------------------------------------------------
Contract charges (.779976) (.305069) (.242272) (.149822) (.134946) (.171863) (.189635)
- -------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $65.471148 23.797066 18.898613 12.571028 10.735070 14.924653 15.538850
- -------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 27% 4% 4% 30% 9% 33% 15%
=========================================================================================================================
1994
Beginning unit value - Jan. 1 $51.458079 22.315407 17.721943 10.000000 9.995028 11.548721 14.119303
- -------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.956402 .829315 .658609 .249418 .555641 .945341 1.418589
- -------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (1.208860) .000000 .000000 (.492915) (.588488) (1.162325) (1.850696)
- -------------------------------------------------------------------------------------------------------------------------
Contract charges (.669815) (.294451) (.233843) (.116101) (.128829) (.148366) (.183806)
- -------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $51.535806 22.850271 18.146709 9.640402 9.833352 11.183371 13.503390
- -------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 0% 2% 2% (4)%(b) (2)% (3)% (4)%
=========================================================================================================================
1993
Beginning unit value - Jan. 1 $46.832151 22.042019 17.504831 ** 10.000000 10.000000 10.000000
- -------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.830294 .563931 .447841 .190065 1.163476 1.251857
- -------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 3.434588 .000000 .000000 (.162079) .524641 3.014957
- -------------------------------------------------------------------------------------------------------------------------
Contract charges (.638954) (.290543) (.230729) (.032958) (.139396) (.147511)
- -------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $51.458079 22.315407 17.721943 9.995028 11.548721 14.119303
- -------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 10% 1% 1% 0%(b) 15%(b) 41%(b)
=========================================================================================================================
</TABLE>
* An annualized rate of return cannot be determined as:
(a) Contract charges do not include the annual contract maintenance
charge discussed in note 2; and
(b) This investment option was not utilized for the entire year
indicated.
** This investment option was not available or was not utilized.
*** No other investment options were being utilized.
12
<PAGE> 13
- --------------------------------------------------------------------------------
SCHEDULE I, CONTINUED
NATIONWIDE VARIABLE ACCOUNT
TAX QUALIFIED
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
PhxBalFd StTotRet TemForFd TCGroInv TCIntlEq TCUltra TCUSGvt
---------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1995***
Beginning unit value - Jan. 1 $ 9.338434 11.881033 10.000000 38.113717 10.000000 9.043121 18.748399
- -------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .913359 .793239 .700873 6.277505 .010869 .581551 1.086234
- -------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.255938 2.394151 .523675 1.457594 1.867440 2.805900 .873119
- -------------------------------------------------------------------------------------------------------------------------
Contract charges (.134514) (.175237) (.127025) (.574675) (.129398) (.141497) (.257798)
- -------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $11.373217 14.893186 11.097523 45.274141 11.748911 12.289075 20.449954
- -------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 22% 25% 11%(b) 19% 17%(b) 36% 9%
=========================================================================================================================
1994
Beginning unit value - Jan. 1 $10.000000 12.205201 ** 39.197771 ** 9.505758 19.087872
- -------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .295350 .172665 5.656730 .283163 .888205
- -------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.843207) (.340340) (6.232359) (.626504) (.981660)
- -------------------------------------------------------------------------------------------------------------------------
Contract charges (.113709) (.156493) (.508425) (.119296) (.246018)
- -------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $9.338434 11.881033 38.113717 9.043121 18.748399
- -------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) (7)%(b) (3)% (3)% (5)% (2)%
=========================================================================================================================
1993
Beginning unit value - Jan. 1 ** $10.000000 ** 38.275689 ** 10.000000 18.563845
- -------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .191064 4.379740 .000000 .652799
- -------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 2.158921 (2.963789) (.468221) .119394
- -------------------------------------------------------------------------------------------------------------------------
Contract charges (.144784) (.493869) (.026021) (.248166)
- -------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $12.205201 39.197771 9.505758 19.087872
- -------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (a) 22%(b) 2% (5)%(b) 3%
=========================================================================================================================
</TABLE>
* An annualized rate of return cannot be determined as:
(a) Contract charges do not include the annual contract maintenance
charge discussed in note 2; and
(b) This investment option was not utilized for the entire year
indicated.
** This investment option was not available or was not utilized.
*** No other investment options were being utilized.
- --------------------------------------------------------------------------------
13
<PAGE> 14
- --------------------------------------------------------------------------------
SCHEDULE I, CONTINUED
NATIONWIDE VARIABLE ACCOUNT
NON-TAX QUALIFIED
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
NWBdFd NWFund NWGroFd NWMyMkt
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
1995
Beginning unit value - Jan. 1 $30.700082 46.971513 54.415339 22.994681
- --------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends 2.330893 4.056617 7.310483 1.259777
- --------------------------------------------------------------------------------------------------
Unrealized gain (loss) 5.040599 9.924079 8.227039 .000000
- --------------------------------------------------------------------------------------------------
Contract charges (.450674) (.687292) (.823547) (.306998)
- --------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $37.620900 60.264917 69.129314 23.947460
- --------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 23% 28% 27% 4%
==================================================================================================
1994
Beginning unit value - Jan. 1 $33.845410 47.312558 54.333269 22.456439
- --------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends 2.307668 4.604779 2.065716 .834547
- --------------------------------------------------------------------------------------------------
Unrealized gain (loss) (5.040000) (4.333421) (1.276404) .000000
- --------------------------------------------------------------------------------------------------
Contract charges (.412996) (.612403) (.707242) (.296305)
- --------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $30.700082 46.971513 54.415339 22.994681
- --------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* (9)% (1)% 0% 2%
==================================================================================================
1993
Beginning unit value - Jan. 1 $30.971200 44.897247 49.448867 22.181323
- --------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends 2.447737 3.386294 1.932560 .567483
- --------------------------------------------------------------------------------------------------
Unrealized gain (loss) .861084 (.387333) 3.626496 .000000
- --------------------------------------------------------------------------------------------------
Contract charges (.434611) (.583650) (.674654) (.292367)
- --------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $33.845410 47.312558 54.333269 22.456439
- --------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 9% 5% 10% 1%
==================================================================================================
</TABLE>
*An annualized rate of return cannot be determined as contract charges do not
include the annual contract maintenance charge discussed in note 2.
See note 3.
- -------------------------------------------------------------------------------
14
<PAGE> 15
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Contract Owners of
Nationwide Variable Account
Nationwide Life Insurance Company:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide Variable Account as of December 31, 1995,
and the related statements of operations and changes in contract owners' equity
and schedules of changes in unit value for each of the years in the three year
period then ended. These financial statements and schedules of changes in unit
value are the responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements and schedules of changes in
unit value 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 and schedules of
changes in unit value 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, 1995, by correspondence with the custodian and 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 and schedules of changes in unit
value referred to above present fairly, in all material respects, the financial
position of Nationwide Variable Account as of December 31, 1995, and the results
of its operations and its changes in contract owners' equity and the schedules
of changes in unit value for each of the years in the three year period then
ended in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
February 6, 1996
- -------------------------------------------------------------------------------
15
<PAGE> 16
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
P A I D
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company.
