<PAGE> 1
OHIO NATIONAL VARIABLE ACCOUNT A
OF
THE OHIO NATIONAL LIFE INSURANCE COMPANY
One Financial Way
Montgomery, Ohio 45242
Telephone (513) 794-6514
STATEMENT OF ADDITIONAL INFORMATION
OCTOBER 6, 1999
This Statement of Additional Information is not a prospectus. Read it along with
the prospectus for Ohio National Variable Account A ("VAA") flexible purchase
payment individual variable annuity contracts dated July 1, 1999. To get a free
copy of the prospectus for VAA, write or call us at the above address.
Table of Contents
Custodian ...........................................2
Independent Certified Public Accountants.............2
Underwriter..........................................2
Calculation of Money Market Yield....................3
Total Return.........................................3
The Year 2000 Issue..................................4
Loans Under Tax-sheltered Annuities..................5
Financial Statements.................................6
"FLEX VA"
<PAGE> 2
CUSTODIAN
We have a custody agreement with Firstar Bank, N.A., Cincinnati, Ohio, under
which Firstar holds custody of VAA's assets. The agreement provides for Firstar
to purchase Fund shares at their net asset value determined as of the end of the
valuation period during which we receive the deposit. At our instruction,
Firstar redeems the Fund shares held by VAA at their net asset value determined
as of the end of the valuation period during which we receive or make a
redemption request. In addition, Firstar keeps appropriate records of all of
VAA's transactions in Fund shares.
The custody agreement requires Firstar to always have aggregate capital, surplus
and undivided profit of not less than $2 million. It does not allow Firstar to
resign until (a) a successor custodian bank having the above qualifications has
agreed to serve as custodian, or (b) VAA has been completely liquidated and the
liquidation proceeds properly distributed. Subject to these conditions, the
custody agreement may be terminated by either us or Firstar upon sixty days
written notice. We pay Firstar a fee for its services as custodian.
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The financial statements of VAA as of December 31, 1998 and for the periods
indicated and our consolidated financial statements as of December 31, 1998 and
1997 and for the periods indicated have been included in reliance upon the
report of KPMG LLP, independent certified public accountants, also appearing
herein, and upon that firm's authority as experts in accounting and auditing.
UNDERWRITER
We offer the contracts continuously. Before May 1, 1997, The O. N. Equity Sales
Company ("ONESCO"), a wholly-owned subsidiary of ours, was the principal
underwriter of the contracts. Since May 1, 1997, the principal underwriter has
been Ohio National Equities, Inc. ("ONEQ"), another wholly-owned subsidiary of
ours. The aggregate amount of commissions paid to ONESCO and ONEQ for contracts
issued by VAA, and the amounts retained by ONESCO and ONEQ, for each of the last
three years have been:
<TABLE>
<CAPTION>
ONESCO ONEQ ONESCO ONEQ
Aggregate Aggregate Retained Retained
Year Commissions Commissions Commissions Commissions
- ---- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
1998 None $6,658,441 None $827,720
1997 $ 903,146 2,997,646 $ 89,572 297,299
1996 2,461,096 None 239,957 None
</TABLE>
2
<PAGE> 3
CALCULATION OF MONEY MARKET YIELD
The annualized current yield of the Money Market subaccount for the seven days
ended on December 31, 1998, was 3.69%. This was calculated by determining the
net change, exclusive of capital changes, in the value of a hypothetical
pre-existing account having a balance of one Money Market accumulation unit at
the beginning of the seven-day period, dividing the net change in value by the
beginning value to obtain the seven-day return, and multiplying the difference
by 365/7. The result is rounded to the nearest hundredth of one percent.
TOTAL RETURN
The average annual compounded rate of return for a contract for each subaccount
over a given period is found by equating the initial amount invested to the
ending redeemable value using the following formula:
P(1 + T)n = ERV
where: P = a hypothetical initial payment of $1,000,
T = the average annual total return,
n = the number of years, and
ERV = the ending redeemable value of a hypothetical $1,000
beginning-of-period payment at the end of the period
(or fractional portion thereof).
We will up-date standardized total return data based upon Fund performance in
the subaccounts within 30 days after each calendar quarter.
In addition, we may present non-standardized total return data, using the above
formula but based upon Fund performance before the date we first offered this
series of contracts (May 1, 1998). This will be presented as if the same charges
and deductions applying to these contracts had been in effect from the inception
of each Fund.
3
<PAGE> 4
The average annual total returns for the contracts from the inception of each
Fund and for the one-, five- and ten-year periods ending on December 31, 1998
(assuming surrender of the contract then) are as follows:
<TABLE>
<CAPTION>
From Fund
One Five Ten Fund Returns Inception
Year Years Years Inception in VAA* Date
---- ----- ----- --------- ------- ----
<S> <C> <C> <C> <C> <C> <C>
Ohio National Fund:
Money Market 3.79% 3.54% 3.81% 5.61% 5.61% 03-20-80
Equity 4.16% 11.84% 10.99% 9.24% 9.24% 01-14-71
Bond 3.66% 4.82% 6.55% 6.88% 6.88% 11-02-82
Omni 2.99% 10.09% 9.86% 9.86% 9.86% 09-10-84
S & P 500 Index 28.08% N/A N/A 29.08% 29.08% 01-03-97
International 2.10% 6.38% N/A 9.66% 9.66% 04-30-93
International Small Company 2.00% N/A N/A 7.99% 7.99% 03-31-95
Capital Appreciation 4.35% N/A N/A 11.87% 11.87% 05-01-94
Growth & Income 4.61% N/A N/A 18.74% 18.74% 01-03-97
Small Cap Growth N/A N/A N/A 3.59% 3.59% 05-01-98
High Income Bond N/A N/A N/A (1.18%) (1.18%) 05-01-98
Equity Income N/A N/A N/A 4.89% 4.89% 05-01-98
Blue Chip N/A N/A N/A 1.34% 1.34% 05-01-98
Strategic Income (2.88%) N/A N/A 1.95% 1.95% 01-03-97
Relative Value 18.93% N/A N/A 22.62% 22.62% 01-03-97
Firstar Growth & Income 1.40% N/A N/A 4.64% 4.64% 01-03-97
Dow Target Variable:
Dow Target 10 N/A N/A N/A N/A N/A 01-04-99
Goldman Sachs Variable:
G.S. Growth and Income 3.96% N/A N/A 3.96% (11.58%) 01-02-98
G.S. Core U.S. Equity 13.23% N/A NIA 13.23% 1.79% 01-02-98
G.S. Capital Growth 12.28% N/A N/A 12.28% 11.83% 01-02-98
G.S. Global Income 6.74% N/A N/A 6.74% 5.63% 01-02-98
Janus Aspen Series:
Growth 33.66% 19.62% N/A 19.09% 15.50% 09-13-93
International Growth 15.51% N/A N/A 17.38% (1.33%) 05-02-94
Worldwide Growth 27.02% 19.52% N/A 22.20% 4.98% 09-13-93
Balanced 32.31% 17.35% N/A 17.73% 16.20% 09-13-93
J.P. Morgan Series Trust II:
Small Company (8.34%) N/A N/A 14.84% (16.37%) 01-03-95
Lazard Retirement Series:
Small Cap (4.82%) N/A N/A (6.21%) N/A 11-04-97
Emerging Markets (24.45%) N/A N/A (24.81%) N/A 11-04-97
Mitchell Hutchins Series Trust:
Strategic Income N/A N/A N/A 1.20% N/A 09-28-98
Growth & Income 26.51% 15.13% N/A 10.03% N/A 01-02-92
Tactical Allocation N/A N/A N/A 23.78% N/A 09-28-98
Small Cap N/A N/A N/A 23.70% N/A 09-28-98
Morgan Stanley-Dean Witter Universal:
Fixed Income 6.31% N/A N/A 6.99% 4.43% 01-02-97
U.S. Real Estate (12.18%) N/A N/A 1.27% (10.65%) 03-03-97
Value (3.58%) N/A N/A 7.23% (12.06%) 01-02-97
Emerging Markets Debt (30.38%) N/A N/A (19.57%) (32.84%) 06-16-97
Salomon Brothers Variable:
Capital 16.60% N/A N/A 16.60% 6.60% 01-02-98
Total Return 4.47% N/A N/A 4.47% (0.02%) 01-02-98
Investors 9.13% N/A N/A 9.13% 1.25% 01-02-98
Strong Variable Insurance:
Mid Cap Growth II 26.78% N/A N/A 26.48% 15.19% 12-31-96
Opportunity II 11.83% 14.94% N/A 16.52% (4.65%) 05-08-92
Schafer Value II 0.67% N/A N/A (0.39%) (6.14%) 10-10-97
</TABLE>
* The "Returns in VAA" are the standardized total returns from the time these
Funds were added to VAA through December 31, 1998. The Goldman Sachs Variable,
Janus Aspen Series, J.P. Morgan Series Trust II, Morgan Stanley Dean Witter
Universal, Salomon Brothers Variable and Strong Variable Insurance Funds were
added to VAA May 1, 1998. The Lazard Retirement Series Funds were added to VAA
May 1, 1999. The Mitchell Hutchins Series Trust was added to VAA July 1, 1999.
THE YEAR 2000 ISSUE
We believe we have succeeded in remedying the "Year 2000" problem for all
mission critical computer systems and applications. Conversion testing and
implementation for legacy systems were completed by December 31, 1998, and Year
2000 compliant annuity processing system conversions were installed and testing
completed on June 20, 1999. Peripheral personal computer systems have also been
up-graded and tested for Year 2000 implementation. While Ohio National Fund and
its investment adviser have been assured by suppliers of financial services
(including the custodians, the transfer agent and the accounting agent) that
their systems either are already compliant or will be so in sufficient time,
internal auditors are independently testing those systems to verify their
compliance. We are also developing contingency plans to be prepared for the
possibility that one or more service providers might not be compliant. If we,
Ohio National Fund, its investment adviser or one of our service suppliers fails
to achieve timely and complete compliance, it could materially impair our
ability to conduct our business, including the ability to accurately and timely
value interests in the contracts.
4
<PAGE> 5
LOANS UNDER TAX-SHELTERED ANNUITIES
Contracts issued as tax-sheltered annuities under plans qualifying under Section
403(b) of the Code, and allowing for voluntary contributions only, are eligible
for loans secured by a security interest in the contract. A loan must be for at
least $1,000 and may only be made from the Guaranteed Account. The loan amount
is limited by the maximum loan formula described in your contract.
We charge an annual effective rate of interest up to 7%. You must generally
repay your loans within 5 years (or 20 years if you use the loan to purchase
your primary home).
The amount of the death benefit, the amount payable on a full surrender and the
amount that will be applied to provide an annuity will all be reduced by your
loan balance, including accrued interest.
5
<PAGE> 6
OHIO NATIONAL VARIABLE ACCOUNT A
INDEPENDENT AUDITORS' REPORT
The Board of Directors of
The Ohio National Life Insurance Company
and Contract Owners of
Ohio National Variable Account A:
We have audited the accompanying statements of assets and contract owners'
equity of Ohio National Variable Account A (comprised of the Ohio National
Equity, Ohio National Money Market, Ohio National Bond, Ohio National Omni, Ohio
National International, Ohio National Capital Appreciation, Ohio National Small
Cap, Ohio National Global Contrarian, Ohio National Aggressive Growth, Ohio
National S&P 500 Index, Ohio National Social Awareness, Ohio National Core
Growth, Ohio National Growth & Income, Ohio National Stellar, Ohio National
Strategic Income, Ohio National Relative Value, Ohio National High Income Bond,
Ohio National Equity Income, Ohio National Blue Chip, Ohio National Small Cap
Growth, Montgomery Asset Emerging Market, Montgomery Asset Small Cap Opportunity
Trust II, Fidelity Investments VIP Growth, Fidelity Investments VIP Equity
Income, Fidelity Investments VIP High Income Bond, JP Morgan Small Company,
Janus Aspen Series Growth, Janus Aspen Series International Growth, Janus Aspen
Series Worldwide Growth, Janus Aspen Series Balanced, Salomon Brothers Variable
Series Capital, Salomon Brothers Variable Series Total Return, Salomon Brothers
Variable Series Investors, Strong Variable Funds Opportunity II, Strong Variable
Funds Schafer Value II, Strong Variable Funds Growth II, Morgan Stanley
Universal Funds Fixed Income, Morgan Stanley Universal Funds US Real Estate,
Morgan Stanley Universal Funds Value, Morgan Stanley Universal Funds Emerging
Market Debt, Goldman Sachs VIT Growth & Income, Goldman Sachs VIT Core US
Equity, Goldman Sachs VIT Global Income and Goldman Sachs VIT Capital Growth
subaccounts) as of December 31, 1998, and the related statements of operations
and changes in contract owners' equity for each of the periods indicated herein.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the 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, 1998, 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 Ohio National Variable Account
A as of December 31, 1998, and the results of its operations and its changes in
contract owners' equity for each of the years indicated herein in conformity
with generally accepted accounting principles.
KPMG LLP
Cincinnati, Ohio
February 5, 1999
6
<PAGE> 7
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OHIO NATIONAL VARIABLE ACCOUNT A December 31, 1998
STATEMENTS OF ASSETS AND CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
MONEY
EQUITY MARKET BOND OMNI INTERNATIONAL
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $116,584,418 $19,173,429 $10,160,426 $86,988,408 $48,879,593
============ =========== =========== =========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $116,065,832 $19,059,891 $10,145,018 $86,852,966 $48,877,129
Annuity reserves for contract in payment period....... 518,586 113,538 15,408 135,442 2,464
------------ ----------- ----------- ----------- -----------
Total contract owners' equity........................... $116,584,418 $19,173,429 $10,160,426 $86,988,408 $48,879,593
============ =========== =========== =========== ===========
<CAPTION>
CAPITAL
APPRECIATION SMALL CAP
SUBACCOUNT SUBACCOUNT
------------ -----------
<S> <C> <C>
Assets -- Investments at market value (note 2).......... $25,818,183 $25,836,404
=========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $25,778,593 $25,836,404
Annuity reserves for contract in payment period....... 39,590 0
----------- -----------
Total contract owners' equity........................... $25,818,183 $25,836,404
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL AGGRESSIVE CORE GROWTH & S&P 500
CONTRARIAN GROWTH GROWTH INCOME INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $5,382,295 $6,784,243 $3,416,790 $19,357,466 $36,114,465
========== ========== ========== =========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $5,382,295 $6,784,243 $3,416,790 $19,357,466 $36,106,282
Annuity reserves for contract in payment period....... 0 0 0 0 8,183
---------- ---------- ---------- ----------- -----------
Total contract owners' equity........................... $5,382,295 $6,784,243 $3,416,790 $19,357,466 $36,114,465
========== ========== ========== =========== ===========
<CAPTION>
SOCIAL STRATEGIC
AWARENESS INCOME
SUBACCOUNT SUBACCOUNT
------------ -----------
<S> <C> <C>
Assets -- Investments at market value (note 2).......... $1,964,101 $ 1,874,581
========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $1,964,101 $ 1,874,581
Annuity reserves for contract in payment period....... 0 0
---------- -----------
Total contract owners' equity........................... $1,964,101 $ 1,874,581
========== ===========
</TABLE>
<TABLE>
<CAPTION>
HIGH
RELATIVE BLUE EQUITY INCOME
STELLAR VALUE CHIP INCOME BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $1,345,772 $9,995,636 $830,810 $99,695 $447,812
========== ========== ======== ======= ========
Contract owners' equity
Contracts in accumulation period (note 3)............. $1,345,772 $9,995,636 $830,810 $99,695 $447,812
Annuity reserves for contract in payment period....... 0 0 0 0 0
---------- ---------- -------- ------- --------
Total contract owners' equity........................... $1,345,772 $9,995,636 $830,810 $99,695 $447,812
========== ========== ======== ======= ========
<CAPTION>
SMALL CAP
GROWTH
SUBACCOUNT
------------
<S> <C> <C>
Assets -- Investments at market value (note 2).......... $176,952
========
Contract owners' equity
Contracts in accumulation period (note 3)............. $176,952
Annuity reserves for contract in payment period....... 0
--------
Total contract owners' equity........................... $176,952
========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY INVESTMENTS
MONTGOMERY ASSET ---------------------------------------
------------------------
VIP HIGH
EMERGING SMALL CAP VIP EQUITY INCOME
MARKET OPPORTUNITY VIP GROWTH INCOME BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ----------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $724,872 $90,461 $4,523,170 $5,489,577 $3,096,886
======== ======= ========== ========== ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $724,872 $90,461 $4,523,170 $5,489,577 $3,096,886
======== ======= ========== ========== ==========
<CAPTION>
JP MORGAN
TRUST II
------------
SMALL CO.
SUBACCOUNT
------------
<S> <C> <C>
Assets -- Investments at market value (note 2).......... $656,502
========
Contract owners' equity
Contracts in accumulation period (note 3)............. $656,502
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE> 8
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OHIO NATIONAL VARIABLE ACCOUNT A December 31, 1998
STATEMENTS OF ASSETS AND CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
JANUS ASPEN SERIES
----------------------------------------------------
INTERNATIONAL WORLDWIDE
GROWTH GROWTH GROWTH BALANCED
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ---------- ----------
<S> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $2,417,364 $225,341 $2,712,330 $4,245,160
========== ======== ========== ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $2,417,364 $225,341 $2,712,330 $4,245,160
========== ======== ========== ==========
<CAPTION>
SALOMON BROTHERS VARIABLE SERIES
------------------------------------
TOTAL
CAPITAL RETURN INVESTORS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
<S> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $298,630 $374,621 $393,172
======== ======== ========
Contract owners' equity
Contracts in accumulation period (note 3)............. $298,630 $374,621 $393,172
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
STRONG VARIABLE FUNDS
----------------------------------------
OPPORTUNITY SCHAFER
II VALUE II GROWTH II
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------- ----------
<S> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $775,780 $50,269 $611,718
======== ======= ========
Contract owners' equity
Contracts in accumulation period (note 3)............. $775,780 $50,269 $611,718
======== ======= ========
<CAPTION>
MORGAN STANLEY UNIVERSAL FUNDS
-------------------------------------------------
EMERGING
FIXED US REAL MARKET
INCOME ESTATE VALUE DEBT
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $542,625 $86,646 $422,028 $7,599
======== ======= ======== ======
Contract owners' equity
Contracts in accumulation period (note 3)............. $542,625 $86,646 $422,028 $7,599
======== ======= ======== ======
</TABLE>
<TABLE>
<CAPTION>
GOLDMAN SACHS
-----------------------------------------------------
VIT GROWTH VIT CORE VIT GLOBAL VIT CAPITAL
& INCOME US EQUITY INCOME GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ---------- -----------
<S> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $747,633 $849,461 $82,543 $1,058,880
======== ======== ======= ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $747,633 $849,461 $82,543 $1,058,880
======== ======== ======= ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 9
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
EQUITY MONEY MARKET BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ------------------------- -------------------------
1998 1997 1998 1997 1998 1997
------------ ------------ ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends.............. $ 1,441,507 $ 1,848,791 $ 500,680 $ 330,310 $ 525,455 $ 430,461
Risk & administrative expense
(note 4)....................... (1,251,708) (1,119,990) (110,522) (61,793) (87,915) (54,587)
------------ ------------ ----------- ---------- ----------- ----------
Net investment activity...... 189,799 728,801 390,158 268,517 437,540 375,874
------------ ------------ ----------- ---------- ----------- ----------
Realized & Unrealized gain (loss)
on investments:
Reinvested capital gains....... 2,181,204 5,884,076 0 0 0 0
Realized gain (loss)........... 2,970,607 1,814,454 (14,941) (8,000) 17,380 18,355
Unrealized gain (loss)......... (363,011) 7,253,475 0 0 (152,308) 6,598
------------ ------------ ----------- ---------- ----------- ----------
Net gain (loss) on
investments............... 4,788,800 14,952,005 (14,941) (8,000) (134,928) 24,953
------------ ------------ ----------- ---------- ----------- ----------
Net increase in contract
owners' equity from
operations.............. 4,978,599 15,680,806 375,217 260,517 302,612 400,827
------------ ------------ ----------- ---------- ----------- ----------
Equity transactions:
Sales:
Contract purchase payments..... 11,458,073 12,307,774 15,381,429 5,766,812 3,493,444 1,341,058
Transfers from fixed & other
subaccounts.................. 4,018,120 4,663,120 19,865,502 4,122,546 2,139,647 617,341
------------ ------------ ----------- ---------- ----------- ----------
15,476,193 16,970,894 35,246,931 9,889,358 5,633,091 1,958,399
------------ ------------ ----------- ---------- ----------- ----------
Redemptions:
Withdrawals & surrenders (note
5)........................... 9,328,210 5,482,124 696,570 594,152 537,227 453,555
Annuity & death benefit
payments..................... 1,139,548 1,282,347 76,055 406,483 34,162 29,614
Transfers to fixed & other
subaccounts.................. 5,629,381 3,119,594 22,718,469 7,901,647 1,120,365 1,142,089
------------ ------------ ----------- ---------- ----------- ----------
16,097,139 9,884,065 23,491,094 8,902,282 1,691,754 1,625,258
------------ ------------ ----------- ---------- ----------- ----------
Net equity transactions...... (620,946) 7,086,829 11,755,837 987,076 3,941,337 333,141
------------ ------------ ----------- ---------- ----------- ----------
Net change in contract
owners' equity.......... 4,357,653 22,767,634 12,131,054 1,247,593 4,243,949 733,968
Contract Owners' Equity:
Beginning of period............... 112,226,765 89,459,131 7,042,375 5,794,782 5,916,477 5,182,509
------------ ------------ ----------- ---------- ----------- ----------
End of period..................... $116,584,418 $112,226,765 $19,173,429 $7,042,375 $10,160,426 $5,916,477
============ ============ =========== ========== =========== ==========
<CAPTION>
OMNI
SUBACCOUNT
--------------------------
1998 1997
----------- -----------
<S> <C> <C>
Investment activity:
Reinvested dividends.............. $ 2,270,073 $ 2,224,754
Risk & administrative expense
(note 4)....................... (912,754) (728,446)
----------- -----------
Net investment activity...... 1,357,319 1,496,308
----------- -----------
Realized & Unrealized gain (loss)
on investments:
Reinvested capital gains....... 13,227 3,648,542
Realized gain (loss)........... 1,000,905 739,636
Unrealized gain (loss)......... (7,903) 4,439,035
----------- -----------
Net gain (loss) on
investments............... 1,006,229 8,827,213
----------- -----------
Net increase in contract
owners' equity from
operations.............. 2,363,548 10,323,521
----------- -----------
Equity transactions:
Sales:
Contract purchase payments..... 14,036,874 11,490,950
Transfers from fixed & other
subaccounts.................. 4,779,261 3,553,594
----------- -----------
18,816,135 15,044,544
----------- -----------
Redemptions:
Withdrawals & surrenders (note
5)........................... 5,537,165 3,743,945
Annuity & death benefit
payments..................... 690,280 422,771
Transfers to fixed & other
subaccounts.................. 4,994,854 2,308,199
----------- -----------
11,222,299 6,474,915
----------- -----------
Net equity transactions...... 7,593,836 8,569,629
----------- -----------
Net change in contract
owners' equity.......... 9,957,384 18,893,150
Contract Owners' Equity:
Beginning of period............... 77,031,024 58,137,874
----------- -----------
End of period..................... $86,988,408 $77,031,024
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE> 10
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
INTERNATIONAL CAPITAL APPRECIATION SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------- -------------------------- --------------------------
1998 1997 1998 1997 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends................ $ 2,090,475 $ 3,699,242 $ 579,186 $ 504,043 $ 0 $ 0
Risk & administrative expense (note
4)............................... (577,205) (589,401) (246,166) (142,633) (232,830) (166,773)
----------- ----------- ----------- ----------- ----------- -----------
Net investment activity........ 1,513,270 3,109,841 333,020 361,410 (232,830) (166,773)
----------- ----------- ----------- ----------- ----------- -----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains......... 2,018,195 5,249,079 1,968,462 930,639 339 864,625
Realized gain (loss)............. (317,892) 231,748 115,918 167,921 78,725 231,007
Unrealized gain (loss)........... (1,590,338) (8,473,446) (1,450,953) 501,093 2,368,444 391,861
----------- ----------- ----------- ----------- ----------- -----------
Net gain (loss) on
investments................. 109,965 (2,992,619) 633,427 1,599,653 2,447,508 1,487,493
----------- ----------- ----------- ----------- ----------- -----------
Net increase in contract
owners' equity from
operations................ 1,623,235 117,222 966,447 1,961,063 2,214,678 1,320,720
----------- ----------- ----------- ----------- ----------- -----------
Equity transactions:
Sales:
Contract purchase payments....... 4,212,543 12,103,624 6,782,541 5,782,541 4,808,408 5,912,170
Transfers from fixed & other
subaccounts.................... 1,579,613 3,566,352 2,789,751 2,334,977 2,315,389 2,722,141
----------- ----------- ----------- ----------- ----------- -----------
5,792,156 15,669,976 9,572,292 8,182,773 7,123,797 8,634,311
----------- ----------- ----------- ----------- ----------- -----------
Redemptions:
Withdrawals & surrenders (note
5)............................. 3,698,490 2,644,036 892,779 876,739 1,199,702 978,740
Annuity & death benefit
payments....................... 330,156 454,489 135,114 94,324 126,555 83,891
Transfers to fixed & other
subaccounts.................... 11,527,756 3,449,717 2,345,418 1,171,118 2,503,007 1,581,012
----------- ----------- ----------- ----------- ----------- -----------
15,556,402 6,548,242 3,373,311 2,142,181 3,829,264 2,643,643
----------- ----------- ----------- ----------- ----------- -----------
Net equity transactions........ (9,764,246) 9,121,734 6,198,981 6,040,592 3,294,533 5,990,668
----------- ----------- ----------- ----------- ----------- -----------
Net change in contract
owners' equity............ (8,141,011) 9,238,956 7,165,428 8,001,655 5,509,211 7,311,388
Contract owners' equity:
Beginning of period................. 57,020,604 47,781,648 18,652,755 10,651,100 20,327,193 3,015,805
----------- ----------- ----------- ----------- ----------- -----------
End of period....................... $48,879,593 $57,020,604 $25,818,183 $18,652,755 $25,836,404 $20,327,193
=========== =========== =========== =========== =========== ===========
<CAPTION>
GLOBAL CONTRARION
SUBACCOUNT
------------------------
1998 1997
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends................ $ 161,217 $ 149,703
Risk & administrative expense (note
4)............................... (61,043) (35,945)
---------- ----------
Net investment activity........ 100,174 113,758
---------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains......... 475,985 259,942
Realized gain (loss)............. 3,742 21,203
Unrealized gain (loss)........... (490,547) (87,286)
---------- ----------
Net gain (loss) on
investments................. (10,820) 193,859
---------- ----------
Net increase in contract
owners' equity from
operations................ 89,354 307,617
---------- ----------
Equity transactions:
Sales:
Contract purchase payments....... 949,147 2,590,870
Transfers from fixed & other
subaccounts.................... 458,945 450,183
---------- ----------
1,408,092 3,041,053
---------- ----------
Redemptions:
Withdrawals & surrenders (note
5)............................. 220,074 49,264
Annuity & death benefit
payments....................... 47,792 22,982
Transfers to fixed & other
subaccounts.................... 1,098,960 388,564
---------- ----------
1,366,826 460,810
---------- ----------
Net equity transactions........ 41,266 2,580,243
---------- ----------
Net change in contract
owners' equity............ 130,620 2,887,860
Contract owners' equity:
Beginning of period................. 5,251,675 2,363,815
---------- ----------
End of period....................... $5,382,295 $5,251,675
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE> 11
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CORE GROWTH GROWTH & INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ -------------------------
1998 1997 1998 1997(a) 1998 1997(a)
---------- ---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends............. $ 0 $ 37,645 $ 0 $ 897 $ 153,872 $ 24,579
Risk & administrative expense
(note 4)....................... (65,184) (36,453) (36,181) (21,525) (157,261) (21,755)
---------- ---------- ---------- ---------- ----------- ----------
Net investment activity........ (65,184) 1,192 (36,181) (20,628) (3,389) 2,824
---------- ---------- ---------- ---------- ----------- ----------
Realized & Unrealized gain (loss)
on investments:
Reinvested capital gains....... 457,472 16,116 0 0 0 314,126
Realized gain (loss)........... 9,963 1,626 50,716 (9,324) 20,399 37,785
Unrealized gain (loss)......... (56,102) 338,859 286,587 (15,044) 628,348 164,431
---------- ---------- ---------- ---------- ----------- ----------
Net gain (loss) on
investments............... 411,333 356,601 337,303 (24,368) 648,747 516,342
---------- ---------- ---------- ---------- ----------- ----------
Net (decrease) increase in
contract owners' equity
from operations......... 346,149 357,793 301,122 (44,996) 645,358 519,166
---------- ---------- ---------- ---------- ----------- ----------
Equity transactions:
Sales:
Contract purchase payments..... 2,103,790 1,954,169 704,175 2,572,093 9,635,432 4,480,178
Transfers from fixed & other
subaccounts.................. 622,026 374,153 636,425 1,416,952 6,544,063 1,825,897
---------- ---------- ---------- ---------- ----------- ----------
2,725,816 2,328,322 1,340,600 3,989,045 16,179,495 6,306,075
---------- ---------- ---------- ---------- ----------- ----------
Redemptions:
Withdrawals & surrenders (note
5)........................... 302,085 113,256 406,459 24,689 488,326 59,931
Annuity & death benefit
payments..................... 49,662 31,455 63,396 6,903 150,793 18,886
Transfers to fixed & other
subaccounts.................. 751,284 346,549 1,249,355 418,179 3,265,077 309,615
---------- ---------- ---------- ---------- ----------- ----------
1,103,031 491,260 1,719,210 449,771 3,904,196 388,432
---------- ---------- ---------- ---------- ----------- ----------
Net equity transactions...... 1,622,785 1,837,062 (378,610) 3,539,274 12,275,299 5,917,643
---------- ---------- ---------- ---------- ----------- ----------
Net change in contract
owners' equity.......... 1,968,934 2,194,855 (77,488) 3,494,278 12,920,657 6,436,809
Contract owners' equity:
Beginning of period.............. 4,815,309 2,620,454 3,494,278 0 6,436,809 0
---------- ---------- ---------- ---------- ----------- ----------
End of period.................... $6,784,243 $4,815,309 $3,416,790 $3,494,278 $19,357,466 $6,436,809
========== ========== ========== ========== =========== ==========
<CAPTION>
S&P 500 INDEX
SUBACCOUNT
-------------------------
1998 1997(a)
----------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends............. $ 562,393 $ 160,849
Risk & administrative expense
(note 4)....................... (218,142) (25,136)
----------- ----------
Net investment activity........ 344,251 135,713
----------- ----------
Realized & Unrealized gain (loss)
on investments:
Reinvested capital gains....... 1,546,971 449,005
Realized gain (loss)........... 67,888 28,306
Unrealized gain (loss)......... 3,394,871 (171,692)
----------- ----------
Net gain (loss) on
investments............... 5,009,730 305,619
----------- ----------
Net (decrease) increase in
contract owners' equity
from operations......... 5,353,981 441,332
----------- ----------
Equity transactions:
Sales:
Contract purchase payments..... 13,945,843 4,617,012
Transfers from fixed & other
subaccounts.................. 14,612,814 1,487,498
----------- ----------
28,558,657 6,104,510
----------- ----------
Redemptions:
Withdrawals & surrenders (note
5)........................... 623,902 38,238
Annuity & death benefit
payments..................... 129,913 6,501
Transfers to fixed & other
subaccounts.................. 3,168,210 377,251
----------- ----------
3,922,025 421,990
----------- ----------
Net equity transactions...... 24,636,632 5,682,520
----------- ----------
Net change in contract
owners' equity.......... 29,990,613 6,123,852
Contract owners' equity:
Beginning of period.............. 6,123,852 0
----------- ----------
End of period.................... $36,114,465 $6,123,852
=========== ==========
</TABLE>
- ---------------
(a) Period from January 3, 1997 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
11
<PAGE> 12
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
SOCIAL AWARENESS STRATEGIC INCOME STELLAR
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------- ------------------------ ----------------------
1998 1997(a) 1998 1997(a) 1998 1997(a)
---------- -------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 10,934 $ 2,789 $ 120,659 $ 27,368 $ 40,131 $ 10,225
Risk & administrative expense (note 4)...... (21,454) (2,511) (22,771) (3,454) (15,173) (3,693)
---------- -------- ---------- ---------- ---------- --------
Net investment activity.................. (10,520) 278 97,888 23,914 24,958 6,532
---------- -------- ---------- ---------- ---------- --------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 69,572 479 835 5,463 0
Realized gain (loss)..................... (123,673) 3,622 (10,862) 704 (4,370) 2,211
Unrealized gain (loss)................... (592,163) (58,441) (138,208) (1,145) (23,571) 14,738
---------- -------- ---------- ---------- ---------- --------
Net gain (loss) on investments......... (715,836) 14,753 (148,591) 394 (22,478) 16,949
---------- -------- ---------- ---------- ---------- --------
Net (decrease) increase in contract
owners' equity from operations.... (726,356) 15,031 (50,703) 24,308 2,480 23,481
---------- -------- ---------- ---------- ---------- --------
Equity transactions:
Sales:
Contract purchase payments............... 1,707,317 584,481 1,124,332 1,060,804 898,498 591,022
Transfers from fixed & other
subaccounts............................ 727,506... 264,875 74,905 1,498 181,594 5,839
---------- -------- ---------- ---------- ---------- --------
2,434,823 849,356 1,199,237 1,062,302 1,080,092 596,861
---------- -------- ---------- ---------- ---------- --------
Redemptions:
Withdrawals & surrenders (note 5)........ 23,700 10,008 38,754 0 21,647 1,169
Annuity & death benefit payments......... 21,559 548 14,604 1,028 5,443 1,933
Transfers to fixed & other subaccounts... 509,184 43,754 295,666 10,511 321,246 5,704
---------- -------- ---------- ---------- ---------- --------
554,443 54,310 349,024 11,539 348,336 8,806
---------- -------- ---------- ---------- ---------- --------
Net equity transactions................ 1,880,380 795,046 850,213 1,050,763 731,756 588,055
---------- -------- ---------- ---------- ---------- --------
Net change in contract owners'
equity............................ 1,154,024 810,077 799,510 1,075,071 734,236 611,536
Contract owners' equity:
Beginning of period......................... 810,077 0 1,075,071 0 3,166,554 0
---------- -------- ---------- ---------- ---------- --------
End of period............................... $1,964,101 $810,077 $1,874,581 $1,075,071 $1,345,772 $611,536
========== ======== ========== ========== ========== ========
<CAPTION>
RELATIVE VALUE
SUBACCOUNT
------------------------
1998 1997(a)
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends........................ $ 82,693 $ 19,612
Risk & administrative expense (note 4)...... (95,392) (15,700)
---------- ----------
Net investment activity.................. (12,699) 3,912
---------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 91,524 0
Realized gain (loss)..................... 66,563 11,830
Unrealized gain (loss)................... 1,016,582 215,699
---------- ----------
Net gain (loss) on investments......... 1,174,669 227,529
---------- ----------
Net (decrease) increase in contract
owners' equity from operations.... 1,161,970 231,441
---------- ----------
Equity transactions:
Sales:
Contract purchase payments............... 5,754,162 2,902,485
Transfers from fixed & other
subaccounts............................ 851,753 90,096
---------- ----------
6,605,915 2,992,581
---------- ----------
Redemptions:
Withdrawals & surrenders (note 5)........ 373,306 10,942
Annuity & death benefit payments......... 73,267 5,296
Transfers to fixed & other subaccounts... 492,230 41,230
---------- ----------
938,803 57,468
---------- ----------
Net equity transactions................ 5,667,112 2,935,113
---------- ----------
Net change in contract owners'
equity............................ 6,829,082 3,166,554
Contract owners' equity:
Beginning of period......................... 3,166,554 0
---------- ----------
End of period............................... $9,995,636 $3,166,554
========== ==========
</TABLE>
- ---------------
(a) Period from January 3, 1997 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
12
<PAGE> 13
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
MONTGOMERY ASSET
-----------------------------------
EQUITY HIGH INCOME SMALL CAP EMERGING MARKET SMALL CAP
BLUE CHIP INCOME BOND GROWTH SUBACCOUNT OPPORTUNITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT -------------------- SUBACCOUNT
1998(c) 1998(c) 1998(c) 1998(c) 1998 1997(a) 1998(c)
---------- ---------- ----------- ---------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends............. $ 1,184 $ 614 $ 8,343 $ 0 $ 1,515 $ 1,352 $ 0
Risk & administrative expense
(note 4)...................... (2,525) (220) (838) (294) (10,644) (3,272) (204)
-------- -------- -------- -------- -------- -------- --------
Net investment activity....... (1,341) 394 7,505 (294) (9,129) (1,920) (204)
-------- -------- -------- -------- -------- -------- --------
Realized & Unrealized gain (loss)
on investments:
Reinvested capital gains...... 0 0 775 0 0 0 0
Realized gain (loss).......... 532 215 378 (1,432) (105,907) (2,389) 2,069
Unrealized gain (loss)........ 48,463 6,457 (3,712) 30,958 (288,678) (71,244) 10,248
-------- -------- -------- -------- -------- -------- --------
Net gain (loss) on
investments.............. 48,995 6,672 (2,559) 29,526 (394,585) (73,633) 12,317
-------- -------- -------- -------- -------- -------- --------
Net (decrease) increase
in contract owners'
equity from
operations............. 47,654 7,066 4,946 29,232 (403,714) (75,553) 12,113
-------- -------- -------- -------- -------- -------- --------
Equity transactions:
Sales:
Contract purchase payments.... 628,613 28,016 386,877 75,300 328,559 889,268 91,968
Transfers from fixed & other
subaccounts................. 194,014 80,100 58,490 72,481 383,220 25,538 15,485
-------- -------- -------- -------- -------- -------- --------
822,627 108,116 445,367 147,781 711,779 914,806 107,453
-------- -------- -------- -------- -------- -------- --------
Redemptions:
Withdrawals & surrenders (note
5).......................... 2,746 0 82 0 5,958 4,397 0
Annuity & death benefit
payments.................... 223 0 127 61 1,979 999 16,664
Transfers to fixed & other
subaccounts................. 36,502 15,487 2,292 0 407,864 1,249 12,441
-------- -------- -------- -------- -------- -------- --------
39,471 15,487 2,501 61 415,801 6,645 29,105
-------- -------- -------- -------- -------- -------- --------
Net equity transactions..... 783,156 92,629 442,866 147,720 295,978 908,161 78,348
-------- -------- -------- -------- -------- -------- --------
Net change in contract
owners' equity......... 830,810 99,695 447,812 176,952 (107,736) 832,608 90,461
Contract owners' equity:
Beginning of period.............. 0 0 0 0 832,608 0 0
-------- -------- -------- -------- -------- -------- --------
End of period.................... $830,810 $ 99,695 $447,812 $176,952 $724,872 $832,608 $ 90,461
======== ======== ======== ======== ======== ======== ========
</TABLE>
- ---------------
(a) Period from January 3, 1997 date of commencement of operations.
(c) Period from May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
13
<PAGE> 14
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
FIDELITY INVESTMENTS
--------------------------------------------------------------------------------
VIP GROWTH VIP EQUITY INCOME VIP HIGH INCOME BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ ------------------------
1998 1997(b) 1998 1997(b) 1998 1997(b)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 6,464 $ 0 $ 26,915 $ 0 $ 104,824 $ 0
Risk & administrative expense (note 4)...... (36,874) (3,791) (47,574) (7,136) (28,705) (4,117)
---------- ---------- ---------- ---------- ---------- ----------
Net investment activity................. (30,410) (3,791) (20,659) (7,136) 76,119 (4,117)
---------- ---------- ---------- ---------- ---------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains.................. 169,084 0 95,785 0 66,607 0
Realized gain (loss)...................... 32,996 2,373 15,254 3,136 (22,981) 12,995
Unrealized gain (loss).................... 805,443 37,791 217,112 96,293 (301,337) 29,576
---------- ---------- ---------- ---------- ---------- ----------
Net gain (loss) on investments.......... 1,007,523 40,164 328,151 99,429 (257,711) 42,571
---------- ---------- ---------- ---------- ---------- ----------
Net increase in contract owners'
equity from operations............. 977,113 36,373 307,492 92,293 (181,592) 38,454
---------- ---------- ---------- ---------- ---------- ----------
Equity transactions:
Sales:
Contract purchase payments................ 2,574,916 972,759 3,306,327 1,576,447 1,709,242 1,437,894
Transfers from fixed & other
subaccounts............................. 662,152 11,770 668,846 18,945 333,556 137,249
---------- ---------- ---------- ---------- ---------- ----------
3,237,068 984,529 3,975,173 1,595,392 2,042,798 1,575,143
---------- ---------- ---------- ---------- ---------- ----------
Redemptions:
Withdrawals & surrenders (note 5)......... 54,773 6,020 71,218 3,913 26,465 0
Annuity & death benefit payments.......... 12,293 0 3,399 5,412 791 5,499
Transfers to fixed & other subaccounts.... 638,827 0 390,802 6,029 125,389 219,773
---------- ---------- ---------- ---------- ---------- ----------
705,893 6,020 465,419 15,354 152,645 225,272
---------- ---------- ---------- ---------- ---------- ----------
Net equity transactions................. 2,531,175 978,509 3,509,754 1,580,038 1,890,153 1,349,871
---------- ---------- ---------- ---------- ---------- ----------
Net change in contract owners'
equity............................. 3,508,288 1,014,882 3,817,246 1,672,331 1,708,561 1,388,325
Contract owners' equity:
Beginning of period......................... 1,014,882 0 1,672,331 0 1,388,325 0
---------- ---------- ---------- ---------- ---------- ----------
End of period............................... $4,523,170 $1,014,882 $5,489,577 $1,672,331 $3,096,886 $1,388,325
========== ========== ========== ========== ========== ==========
<CAPTION>
JANUS ASPEN SERIES
JP MORGAN ------------------------
TRUST II
--------- INTL.
SMALL GROWTH GROWTH
COMPANY SUBACCOUNT SUBACCOUNT
1998(c) 1998(c) 1998(c)
--------- ---------- ----------
<S> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 714 $ 1,115 $ 1,286
Risk & administrative expense (note 4)...... (1,554) (3,888) (728)
-------- ---------- ----------
Net investment activity................. (840) (2,773) 558
-------- ---------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains.................. 11,588 139 38
Realized gain (loss)...................... (689) 46,760 14,859
Unrealized gain (loss).................... 37,863 319,539 139
-------- ---------- ----------
Net gain (loss) on investments.......... 48,762 366,438 15,036
-------- ---------- ----------
Net increase in contract owners'
equity from operations............. 47,922 363,665 15,594
-------- ---------- ----------
Equity transactions:
Sales:
Contract purchase payments................ 539,440 1,505,041 119,362
Transfers from fixed & other
subaccounts............................. 73,249 1,737,064 4,506,289
-------- ---------- ----------
612,689 3,242,105 4,625,651
-------- ---------- ----------
Redemptions:
Withdrawals & surrenders (note 5)......... 609 61 59
Annuity & death benefit payments.......... 116 185 16,112
Transfers to fixed & other subaccounts.... 3,384 1,188,160 4,399,733
-------- ---------- ----------
4,109 1,188,406 4,415,904
-------- ---------- ----------
Net equity transactions................. 608,580 2,053,699 209,747
-------- ---------- ----------
Net change in contract owners'
equity............................. 656,502 2,417,364 225,341
Contract owners' equity:
Beginning of period......................... 0 0 0
-------- ---------- ----------
End of period............................... $656,502 $2,417,364 $ 225,341
======== ========== ==========
</TABLE>
- ---------------
(b) Period from April 1, 1997 date of commencement of operations.
(c) Period from May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
14
<PAGE> 15
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
JANUS ASPEN SERIES
(CONTINUED) SALOMON VARIABLE FUND SERIES
----------------------- ------------------------------------
WW TOTAL
GROWTH BALANCE CAPITAL RETURN INVESTORS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
1998(c) 1998(c) 1998(c) 1998(c) 1998(c)
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends.............................. $ 9,702 $ 48,910 $ 1,801 $ 5,362 $ 1,601
Risk & administrative expense (note 4)............ (7,118) (10,847) (402) (825) (1,179)
---------- ---------- -------- -------- --------
Net investment activity...................... 2,584 38,063 1,399 4,537 422
---------- ---------- -------- -------- --------
Realized & Unrealized gain (loss) on investments:
Reinvested capital gains....................... 2,416 1,137 3,009 1,072 0
Realized gain (loss)........................... 36,214 8,538 762 829 1,496
Unrealized gain (loss)......................... 186,957 485,789 17,714 4,184 23,307
---------- ---------- -------- -------- --------
Net gain (loss) on investments............... 225,587 495,464 21,485 6,085 24,803
---------- ---------- -------- -------- --------
Net increase in contract owners' equity
from operations......................... 228,171 533,527 22,884 10,622 25,225
---------- ---------- -------- -------- --------
Equity transactions:
Sales:
Contract purchase payment...................... 1,786,575 2,648,081 233,419 232,678 333,783
Transfers from fixed & other subaccounts....... 3,425,697 1,383,055 42,434 151,291 36,621
---------- ---------- -------- -------- --------
5,212,272 4,031,136 275,853 383,969 370,404
---------- ---------- -------- -------- --------
Redemptions:
Withdrawals & surrenders (note 5)................. 30,747 18,758 0 0 272
Annuity & death benefit payments.................. 252 6,210 107 0 186
Transfers to fixed & other subaccounts............ 2,697,114 294,535 0 19,970 1,999
---------- ---------- -------- -------- --------
2,728,113 319,503 107 19,970 2,457
---------- ---------- -------- -------- --------
Net equity transactions...................... 2,484,159 3,711,633 275,746 363,999 367,947
---------- ---------- -------- -------- --------
Net change in contract owners' equity..... 2,712,330 4,245,160 298,630 374,621 393,172
Contract owners' equity:
Beginning of period............................... 0 0 0 0 0
---------- ---------- -------- -------- --------
End of period..................................... $2,712,330 $4,245,160 $298,630 $374,621 $393,172
========== ========== ======== ======== ========
<CAPTION>
STRONG VARIABLE ANNUITY FUNDS
------------------------------------------
SCHAFER
OPPORTUNITY II VALUE II GROWTH II
SUBACCOUNT SUBACCOUNT SUBACCOUNT
1998(c) 1998(c) 1998(c)
---------------- ---------- ----------
<S> <C> <C> <C>
Investment activity:
Reinvested dividends.............................. $ 1,436 $ 139 $ 0
Risk & administrative expense (note 4)............ (963) (190) (1,238)
---------- ------- --------
Net investment activity...................... 473 (51) (1,238)
---------- ------- --------
Realized & Unrealized gain (loss) on investments:
Reinvested capital gains....................... 0 0 0
Realized gain (loss)........................... 22,907 1,786 1,501
Unrealized gain (loss)......................... 20,918 3,845 102,974
---------- ------- --------
Net gain (loss) on investments............... 43,825 5,631 104,475
---------- ------- --------
Net increase in contract owners' equity
from operations......................... 44,298 5,580 103,237
---------- ------- --------
Equity transactions:
Sales:
Contract purchase payment...................... 234,597 35,791 360,069
Transfers from fixed & other subaccounts....... 1,443,032 24,309 158,068
---------- ------- --------
1,677,629 60,100 518,137
---------- ------- --------
Redemptions:
Withdrawals & surrenders (note 5)................. 0 0 0
Annuity & death benefit payments.................. 15,648 0 0
Transfers to fixed & other subaccounts............ 930,499 15,411 9,656
---------- ------- --------
946,147 15,411 9,656
---------- ------- --------
Net equity transactions...................... 731,482 44,689 508,481
---------- ------- --------
Net change in contract owners' equity..... 775,780 50,269 611,718
Contract owners' equity:
Beginning of period............................... 0 0 0
---------- ------- --------
End of period..................................... $ 775,780 $50,269 $611,718
========== ======= ========
</TABLE>
- ---------------
(c) Period from May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
15
<PAGE> 16
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
GOLDMAN SACHS
MORGAN STANLEY UNIVERSAL FUNDS ----------
------------------------------------------------- VIT
FIXED US REAL EMERGING GROWTH &
INCOME ESTATE VALUE MKT. DEBT INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
1998(c) 1998(c) 1998(c) 1998(c) 1998(c)
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends................................ $ 14,820 $ 1,946 $ 5,516 $ 841 $ 6,481
Risk & administrative expense (note 4).............. (836) (256) (1,037) (14) (2,219)
-------- ------- -------- ------ --------
Net investment activity........................ 13,984 1,690 4,479 827 4,262
-------- ------- -------- ------ --------
Realized & Unrealized gain (loss) on investments:
Reinvested capital gains......................... 5,226 0 8,977 0 0
Realized gain (loss)............................. 13 (61) 1,409 42 (1,956)
Unrealized gain (loss)........................... (15,285) (491) (693) (546) 14,203
-------- ------- -------- ------ --------
Net gain (loss) on investments................. (10,046) (552) 9,693 (504) 12,247
-------- ------- -------- ------ --------
Net increase in contract owners' equity from
operations................................ 3,938 1,138 14,172 323 16,509
-------- ------- -------- ------ --------
Equity transactions:
Sales:
Contract purchase payments....................... 315,893 58,605 264,759 6,757 668,643
Transfers from fixed & other subaccounts......... 335,255 27,072 146,186 519 92,384
-------- ------- -------- ------ --------
651,148 85,677 410,945 7,276 761,027
-------- ------- -------- ------ --------
Redemptions:
Withdrawals & surrenders (note 5)................... 253 0 0 0 150
Annuity & death benefit payments.................... 49 0 137 0 150
Transfers to fixed & other subaccounts.............. 112,159 169 2,952 0 29,603
-------- ------- -------- ------ --------
112,461 169 3,089 0 29,903
-------- ------- -------- ------ --------
Net equity transactions........................ 538,687 85,508 407,856 7,276 731,124
-------- ------- -------- ------ --------
Net change in contract owners' equity....... 542,625 86,646 422,028 7,599 747,633
Contract owners' equity:
Beginning of period................................. 0 0 0 0 0
-------- ------- -------- ------ --------
End of period....................................... $542,625 $86,646 $422,028 $7,599 $747,633
======== ======= ======== ====== ========
<CAPTION>
GOLDMAN SACHS
------------------------------------
VIT VIT VIT
CORE US GLOBAL CAPITAL
EQUITY INCOME GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
1998(c) 1998(c) 1998(c)
---------- ---------- ----------
<S> <C> <C> <C>
Investment activity:
Reinvested dividends................................ $ 3,505 $ 2,398 $ 2,050
Risk & administrative expense (note 4).............. (2,745) (239) (3,490)
-------- ------- ----------
Net investment activity........................ 760 2,159 (1,440)
-------- ------- ----------
Realized & Unrealized gain (loss) on investments:
Reinvested capital gains......................... 0 644 0
Realized gain (loss)............................. 1,045 57 7,124
Unrealized gain (loss)........................... 79,395 (2,172) 110,809
-------- ------- ----------
Net gain (loss) on investments................. 80,440 (1,471) 117,933
-------- ------- ----------
Net increase in contract owners' equity from
operations................................ 81,200 688 116,493
-------- ------- ----------
Equity transactions:
Sales:
Contract purchase payments....................... 760,740 75,695 781,171
Transfers from fixed & other subaccounts......... 74,272 6,926 213,959
-------- ------- ----------
835,012 82,621 995,130
-------- ------- ----------
Redemptions:
Withdrawals & surrenders (note 5)................... 249 0 9,036
Annuity & death benefit payments.................... 24,187 0 3,393
Transfers to fixed & other subaccounts.............. 42,315 766 40,314
-------- ------- ----------
66,751 766 52,743
-------- ------- ----------
Net equity transactions........................ 768,261 81,855 942,387
-------- ------- ----------
Net change in contract owners' equity....... 849,461 82,543 1,058,880
Contract owners' equity:
Beginning of period................................. 0 0 0
-------- ------- ----------
End of period....................................... $849,461 $82,543 $1,058,880
======== ======= ==========
</TABLE>
- ---------------
(c) Period from May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
16
<PAGE> 17
[THIS PAGE LEFT INTENTIONALLY BLANK]
17
<PAGE> 18
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Ohio National Variable Account A (the Account) is a separate account of The
Ohio National Life Insurance Company (ONLIC) and all obligations arising
under variable annuity contracts are general corporate obligations of ONLIC.
The account has been registered as a unit investment trust under the
Investment Company Act of 1940.
Assets of the Account are invested in portfolio shares of Ohio National
Fund, Inc., Montgomery Variable Series Funds III, Fidelity Variable
Insurance Products Fund, J. P. Morgan Series Trust II, Janus Aspen Series,
Salomon Brothers Variable Series Fund, Inc., Strong Variable Insurance
Funds, Inc., Morgan Stanley Universal Funds, Inc. and Goldman Sachs Variable
Insurance Trust (collectively the Funds). The Funds are diversified open-end
management investment companies. The Funds' investments are subject to
varying degrees of market, interest and financial risks; the issuers'
abilities to meet certain obligations may be affected by economic
developments in their respective industries.
Annuity reserves are computed for currently payable contracts according to
the Progressive Annuity Mortality Table. The assumed interest rate is 3.5 or
4.0 percent depending on the contract selected by the annuitant. Charges to
annuity reserves for adverse mortality and express risk experience are
reimbursed to the Account by ONLIC. Such amounts are included in risk and
administrative expenses.
Investments are valued at the net asset value of fund shares held at
December 31, 1998. Share transactions are recorded on the trade date. Income
and capital gain distributions are recorded on the ex-dividend date. Net
realized capital gains and losses are determined on the basis of average
cost.
ONLIC performs investment advisory services on behalf of the Ohio National
Fund, Inc. in which the Account invests. For these services, the Company
receives fees from the mutual funds. These fees are paid to an affiliate of
the Company.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities 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) INVESTMENTS
At December 31, 1998 the aggregate cost and number of shares of the
underlying funds owned by the respective subaccounts were:
<TABLE>
<CAPTION>
MONEY CAPITAL
EQUITY MARKET BOND OMNI INTERNATIONAL APPRECIATION SMALL CAP
OHIO NATIONAL FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ----------- ----------- ----------- ----------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost............... $81,681,801 $19,173,429 $10,179,848 $69,000,855 $53,142,837 $25,765,403 $21,221,932
Number of Shares............. 3,210,454 1,917,343 962,526 4,058,052 3,802,676 1,998,930 1,248,256
</TABLE>
<TABLE>
<CAPTION>
GLOBAL AGGRESSIVE CORE GROWTH & S&P 500 SOCIAL STRATEGIC
CONTRARIAN GROWTH GROWTH INCOME INDEX AWARENESS INCOME
OHIO NATIONAL FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost.................. $5,857,370 $6,644,727 $3,145,247 $18,564,687 $32,891,286 $2,614,705 $ 2,013,934
Number of Shares................ 500,585 608,507 324,235 1,420,106 2,537,197 223,219 200,619
</TABLE>
<TABLE>
<CAPTION>
RELATIVE EQUITY HIGH INCOME SMALL CAP
STELLAR VALUE BLUE CHIP INCOME BOND GROWTH
OHIO NATIONAL FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Aggregate Cost.................. $1,354,605 $8,763,355 $ 782,347 $ 93,238 $ 451,524 $ 145,994
Number of Shares................ 127,465 666,376 81,277 9,469 46,720 16,909
</TABLE>
<TABLE>
<CAPTION>
MONTGOMERY MONTGOMERY FIDELITY JP MORGAN
ASSET ASSET SMALL FIDELITY VIP TRUST II
EMERGING CAP FIDELITY VIP EQUITY HIGH SMALL JANUS ASPEN
MKT. OPPORTUNITY VIP GROWTH INCOME INCOME COMPANY GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost.................. $1,084,794 $ 80,213 $3,679,936 $5,176,172 $3,368,647 $ 618,639 $ 2,097,825
Number of Shares................ 109,996 9,748 100,806 215,955 268,594 55,354 102,692
</TABLE>
18
<PAGE> 19
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
SALOMON
JANUS ASPEN JANUS ASPEN JANUS BROS SALOMON
INTERNATIONAL WORLDWIDE ASPEN VARIABLE BROS. VARIABLE
GROWTH GROWTH BALANCED CAPITAL TOTAL RETURN
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Aggregate Cost........................... $225,202 $2,525,373 $3,759,371 $280,916 $370,437
Number of Shares......................... 10,594 93,239 188,674 25,811 36,021
<CAPTION>
SALOMON STRONG
BROS. VARIABLE OPPORTUNITY
INVESTORS II
SUBACCOUNT SUBACCOUNT
-------------- -----------
<S> <C> <C>
Aggregate Cost........................... $369,865 $754,862
Number of Shares......................... 35,710 35,717
</TABLE>
<TABLE>
<CAPTION>
MORGAN
MORGAN MORGAN MORGAN STANLEY GOLDMAN
STRONG STANLEY STANLEY STANLEY UNIVERSAL SACHS VIT
SCHAFER STRONG UNIVERSAL UNIVERSAL US UNIVERSAL EMERGING GROWTH &
VALUE II GROWTH II FIXED INCOME REAL ESTATE VALUE MKT DEBT INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost................ $ 46,424 $ 508,744 $ 557,910 $ 87,137 $422,721 $ 8,145 $733,430
Number of Shares.............. 4,987 38,185 50,713 8,841 38,021 1,246 71,544
</TABLE>
<TABLE>
<CAPTION>
GOLDMAN GOLDMAN GOLDMAN
SACHS VIT SACHS VIT SACHS VIT
CORE US GLOBAL CAPITAL
EQUITY INCOME GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- -----------
<S> <C> <C> <C>
Aggregate Cost.............. $770,066 $ 84,715 $ 948,071
Number of Shares............ 74,384 7,998 93,623
</TABLE>
(3) CONTRACTS IN ACCUMULATION PERIOD
At December 31, 1998 the accumulation units and value per unit of the
respective subaccounts and products were:
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
EQUITY SUBACCOUNT
Combination............................................... 26,150.9503 139.192132 $ 3,640,007
Back Load................................................. 18,686.2740 78.143774 $ 1,460,216
Top I..................................................... 150,434.2110 62.541201 $ 9,408,336
Top Tradition............................................. 1,469,466.9466 53.820037 $79,086,765
Top Plus.................................................. 755,665.1416 18.458779 $13,948,656
Investar Vision........................................... 73,097.3122 12.093494 $ 884,002
Top Spectrum.............................................. 204,827.9703 12.093494 $ 2,477,086
Top Explorer.............................................. 417,377.5838 12.364737 $ 5,160,764
MONEY MARKET SUBACCOUNT
VIA....................................................... 15,961.1499 28.352494 $ 452,538
Top I..................................................... 24,711.8234 21.483279 $ 530,891
Top Tradition............................................. 133,824.4986 19.104543 $ 2,556,656
Top Plus.................................................. 298,676.0483 12.321496 $ 3,680,136
Investar Vision........................................... 11,211.8391 10.796720 $ 121,051
Top Spectrum.............................................. 111,469.1501 10.796720 $ 1,203,501
Top Explorer.............................................. 458,755.0389 10.716203 $ 4,916,112
Oncore Flex............................................... 354,726.2117 10.250770 $ 3,636,217
Oncore Value.............................................. 49,676.1676 10.291475 $ 511,241
Oncore Premier............................................ 141,510.6535 10.257518 $ 1,451,548
</TABLE>
19
<PAGE> 20
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
BOND SUBACCOUNT
Top I..................................................... 18,756.0110 31.234606 $ 585,837
Top Tradition............................................. 136,752.2145 28.249407 $ 3,863,169
Top Plus.................................................. 163,496.3173 12.919987 $ 2,112,370
Investar Vision........................................... 40,793.1412 11.197447 $ 456,779
Top Spectrum.............................................. 85,530.4152 11.197447 $ 957,722
Top Explorer.............................................. 155,241.5633 11.256655 $ 1,747,501
Oncore Flex............................................... 0.0000 10.211170 $ 0
Oncore Value.............................................. 9,887.4152 10.251716 $ 101,363
Oncore Premier............................................ 31,344.6853 10.217891 $ 320,277
OMNI SUBACCOUNT
Top I..................................................... 124,947.5714 40.603031 $ 5,073,250
Top Tradition............................................. 1,380,276.6861 40.510184 $55,915,263
Top Plus.................................................. 811,017.1342 16.898733 $13,705,162
Investar Vision........................................... 59,841.0789 11.966933 $ 716,114
Top Spectrum.............................................. 240,642.8038 11.966933 $ 2,879,756
Top Explorer.............................................. 670,925.2933 12.100620 $ 8,118,612
Oncore Flex............................................... 0.0000 9.373686 $ 0
Oncore Value.............................................. 28,181.1155 9.410936 $ 265,211
Oncore Premier............................................ 19,147.1651 9.379873 $ 179,598
INTERNATIONAL SUBACCOUNT
Top I..................................................... 78,452.3384 17.278635 $ 1,355,549
Top Tradition............................................. 1,878,181.4332 17.278635 $32,452,412
Top Plus.................................................. 690,871.8461 15.241954 $10,530,237
Investar Vision........................................... 39,155.7072 10.362585 $ 405,754
Top Spectrum.............................................. 81,086.6449 10.362585 $ 840,267
Top Explorer.............................................. 318,013.4051 10.120487 $ 3,218,451
Oncore Flex............................................... 0.0000 9.345821 $ 0
Oncore Value.............................................. 2,069.7149 9.382965 $ 19,420
Oncore Premier............................................ 5,885.3043 9.351988 $ 55,039
CAPITAL APPRECIATION SUBACCOUNT
Top I..................................................... 23,962.1129 15.538473 $ 372,334
Top Tradition............................................. 606,077.6818 15.538473 $ 9,417,522
Top Plus.................................................. 464,527.7607 17.357724 $ 8,063,145
Investar Vision........................................ 68,408.7734 11.872017 $ 812,150
Top Spectrum.............................................. 142,364.2479 11.872017 $ 1,690,151
Top Explorer.............................................. 392,536.8671 11.921997 $ 4,679,823
Oncore Flex............................................... 6,257.6396 9.830302 $ 61,514
Oncore Value.............................................. 12,436.3273 9.869354 $ 122,739
Oncore Premier............................................ 56,849.3316 9.836784 $ 559,215
SMALL CAP SUBACCOUNT
Top I..................................................... 27,574.1368 16.668731 $ 459,625
Top Tradition............................................. 665,332.0331 16.668731 $11,090,241
Top Plus.................................................. 369,788.2913 21.836411 $ 8,074,849
Investar Vision........................................... 76,716.2178 11.836906 $ 908,083
Top Spectrum.............................................. 70,073.1752 11.836906 $ 829,450
Top Explorer.............................................. 322,152.0037 13.888339 $ 4,474,156
</TABLE>
20
<PAGE> 21
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
GLOBAL CONTRARIAN SUBACCOUNT
Top Tradition............................................. 113,661.7885 12.697451 $ 1,443,215
Top Plus.................................................. 144,093.4893 13.644341 $ 1,966,061
Investar Vision........................................... 7,689.4885 11.268548 $ 86,649
Top Spectrum.............................................. 20,281.3963 11.268548 $ 228,542
Top Explorer.............................................. 150,831.7504 10.991242 $ 1,657,828
AGGRESSIVE GROWTH SUBACCOUNT
Top Tradition............................................. 200,720.5572 12.422862 $ 2,493,524
Top Plus.................................................. 138,326.7637 15.009251 $ 2,076,181
Investar Vision........................................... 54,397.5893 11.858619 $ 645,080
Top Spectrum.............................................. 38,405.2594 11.858619 $ 455,433
Top Explorer.............................................. 84,441.2896 13.192890 $ 1,114,025
CORE GROWTH SUBACCOUNT
Top Tradition............................................. 138,652.1868 10.318290 $ 1,430,654
Top Plus.................................................. 98,154.1597 10.359066 $ 1,016,785
Top Explorer.............................................. 79,477.5458 12.196537 $ 969,351
GROWTH & INCOME SUBACCOUNT
Top Tradition............................................. 467,062.7422 14.309421 $ 6,683,397
Top Plus.................................................. 314,341.6560 14.365899 $ 4,515,800
Top Explorer.............................................. 520,160.4255 14.465502 $ 7,524,382
Oncore Flex............................................... 3,516.7603 9.287441 $ 32,662
Oncore Value.............................................. 7,213.9052 9.324354 $ 67,265
Oncore Premier............................................ 57,454.7090 9.293575 $ 533,960
S&P 500 INDEX SUBACCOUNT
Top Tradition............................................. 684,473.5906 16.757375 $11,469,981
Top Plus.................................................. 486,237.2461 16.823468 $ 8,180,197
Top Explorer.............................................. 756,235.1851 16.308232 $12,332,859
Investar Vision........................................... 55,052.3431 11.452642 $ 630,495
Top Spectrum.............................................. 63,211.2177 11.452642 $ 723,935
Oncore Flex............................................... 14,743.1397 11.131014 $ 164,106
Oncore Value.............................................. 70,846.4001 11.175217 $ 791,724
Oncore Premier............................................ 162,769.6725 11.138349 $ 1,812,985
SOCIAL AWARENESS SUBACCOUNT
Top Tradition............................................. 49,168.5293 9.537309 $ 468,935
Top Plus.................................................. 48,417.4699 9.574986 $ 463,597
Top Explorer.............................................. 101,723.5977 10.140901 $ 1,031,569
STRATEGIC INCOME SUBACCOUNT
Investar Vision........................................... 133,871.2498 10.425769 $ 1,395,711
Top Spectrum.............................................. 45,931.4048 10.425769 $ 478,870
STELLAR SUBACCOUNT
Investar Vision........................................... 113,671.1592 10.980827 $ 1,248,203
Top Spectrum.............................................. 8,885.3913 10.980827 $ 97,569
RELATIVE VALUE SUBACCOUNT
Investar Vision........................................... 630,488.8962 15.061199 $ 9,495,918
Top Spectrum.............................................. 33,179.1595 15.061199 $ 499,718
</TABLE>
21
<PAGE> 22
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
BLUE CHIP SUBACCOUNT
Oncore Flex............................................... 2,507.9476 10.134253 $ 25,417
Oncore Value.............................................. 32,060.0222 10.174507 $ 326,195
Oncore Premier............................................ 47,253.8600 10.140937 $ 479,198
EQUITY INCOME SUBACCOUNT
Oncore Flex............................................... 0.0000 10.488837 $ 0
Oncore Value.............................................. 329.6651 10.530500 $ 3,471
Oncore Premier............................................ 9,167.8920 10.495750 $ 96,224
HIGH INCOME BOND SUBACCOUNT
Oncore Flex............................................... 0.0000 9.882097 $ 0
Oncore Value.............................................. 15,816.8839 9.921342 $ 156,925
Oncore Premier............................................ 29,416.3892 9.888612 $ 290,887
SMALL CAP GROWTH SUBACCOUNT
Oncore Flex............................................... 5,017.3301 10.359321 $ 51,977
Oncore Value.............................................. 4,359.2743 10.400462 $ 45,338
Oncore Premier............................................ 7,682.4385 10.366153 $ 79,637
MONTGOMERY ASSET EMERGING MARKET
Investar Vision........................................... 37,962.2205 6.030274 $ 228,923
Top Spectrum.............................................. 13,213.8868 6.030274 $ 79,683
Top Explorer.............................................. 72,272.3006 5.657457 $ 408,877
Oncore Flex............................................... 0.0000 6.396804 $ 0
Oncore Value.............................................. 0.0000 6.422302 $ 0
Oncore Premier............................................ 1,154.3484 6.401040 $ 7,389
MONTGOMERY ASSET SMALL CAP OPPORTUNITY
Oncore Flex............................................... 1,465.6874 9.188061 $ 13,467
Oncore Value.............................................. 2,808.2291 9.224569 $ 25,905
Oncore Premier............................................ 5,556.7813 9.194116 $ 51,090
FIDELITY VIP GROWTH SUBACCOUNT
Top Explorer.............................................. 263,103.2947 17.191614 $ 4,523,170
FIDELITY VIP EQUITY INCOME SUBACCOUNT
Top Explorer.............................................. 398,393.4229 13.779285 $ 5,489,577
FIDELITY VIP HIGH INCOME BOND SUBACCOUNT
Top Explorer.............................................. 280,387.8643 11.045007 $ 3,096,886
JP MORGAN TRUST II SMALL COMPANY SUBACCOUNT
Oncore Flex............................................... 3,544.0788 8.326677 $ 29,510
Oncore Value.............................................. 11,685.5152 8.359794 $ 97,689
Oncore Premier............................................ 63,525.2986 8.332170 $ 529,304
JANUS ASPEN GROWTH SUBACCOUNT
Oncore Flex............................................... 7,102.6219 11.550278 $ 82,037
Oncore Value.............................................. 59,299.9616 11.596125 $ 687,650
Oncore Premier............................................ 142,558.5026 11.557898 $ 1,647,677
JANUS ASPEN INTERNATIONAL GROWTH SUBACCOUNT
Oncore Flex............................................... 0.0000 9.866798 $ 0
Oncore Value.............................................. 3,168.7443 9.905969 $ 31,389
Oncore Premier............................................ 19,644.0342 9.873298 $ 193,951
</TABLE>
22
<PAGE> 23
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
JANUS ASPEN WORLDWIDE GROWTH SUBACCOUNT
Investar Vision........................................... 52,759.9618 10.308701 $ 543,887
Top Spectrum.............................................. 10,721.8067 10.308701 $ 110,528
Oncore Flex............................................... 2,062.7468 10.498008 $ 21,655
Oncore Value.............................................. 53,905.3377 10.539673 $ 568,145
Oncore Premier............................................ 139,755.1030 10.504917 $ 1,468,116
JANUS ASPEN BALANCED SUBACCOUNT
Investar Vision........................................... 79,457.8658 11.955678 $ 949,973
Top Spectrum.............................................. 63,309.0657 11.955678 $ 756,903
Oncore Flex............................................... 10,515.2557 11.619511 $ 122,182
Oncore Value.............................................. 42,914.7797 11.665611 $ 500,627
Oncore Premier............................................ 164,741.5646 11.627155 $ 1,915,476
SALOMON BROTHERS VARIABLE CAPITAL SUBACCOUNT
Oncore Flex............................................... 3,518.1965 10.660198 $ 37,505
Oncore Value.............................................. 2,810.4357 10.702534 $ 30,079
Oncore Premier............................................ 21,659.4320 10.667226 $ 231,046
SALOMON BROTHERS VAR. TOTAL RETURN SUBACCOUNT
Oncore Flex............................................... 3,756.6195 9.998263 $ 37,560
Oncore Value.............................................. 4,957.7277 10.037977 $ 49,766
Oncore Premier............................................ 28,715.7024 10.004853 $ 287,296
SALOMON BROTHERS VARIABLE INVESTORS SUBACCOUNT
Oncore Flex............................................... 4,237.0237 10.125357 $ 42,901
Oncore Value.............................................. 6,726.7725 10.165569 $ 68,381
Oncore Premier............................................ 27,821.5618 10.132029 $ 281,889
STRONG OPPORTUNITY II SUBACCOUNT
Oncore Flex............................................... 42,277.1255 9.534784 $ 403,103
Oncore Value.............................................. 10,471.1133 9.572665 $ 100,236
Oncore Premier............................................ 28,554.4675 9.541070 $ 272,440
STRONG SCHAFER VALUE II SUBACCOUNT
Oncore Flex............................................... 0.0000 9.386490 $ 0
Oncore Value.............................................. 1,864.6521 9.423801 $ 17,572
Oncore Premier............................................ 3,481.0608 9.392680 $ 32,696
STRONG GROWTH II SUBACCOUNT
Oncore Flex............................................... 0.0000 11.518881 $ 0
Oncore Value.............................................. 10,254.9972 11.564594 $ 118,595
Oncore Premier............................................ 42,781.7908 11.526465 $ 493,123
MORGAN STANLEY UNIVERSAL FIXED INCOME SUBACCOUNT
Oncore Flex............................................... 3,924.9967 10.442562 $ 40,987
Oncore Value.............................................. 3,904.7020 10.484025 $ 40,937
Oncore Premier............................................ 44,088.5946 10.449435 $ 460,701
MORGAN STANLEY UNIVERSAL US REAL ESTATE SUBACCOUNT
Oncore Flex............................................... 0.0000 8.935176 $ 0
Oncore Value.............................................. 0.0000 8.970704 $ 0
Oncore Premier............................................ 9,690.8389 8.941071 $ 86,646
MORGAN STANLEY UNIVERSAL VALUE SUBACCOUNT
Oncore Flex............................................... 0.0000 8.793779 $ 0
Oncore Value.............................................. 2,408.4800 8.828718 $ 21,264
Oncore Premier............................................ 45,543.5858 8.799574 $ 400,764
</TABLE>
23
<PAGE> 24
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
MORGAN STANLEY UNIVERSAL EMERGING MKT DEBT SUBACCOUNT
Oncore Flex............................................... 0.0000 6.715933 $ 0
Oncore Value.............................................. 0.0000 6.742711 $ 0
Oncore Premier............................................ 1,130.7346 6.720380 $ 7,599
GOLDMAN SACHS VIT GROWTH & INCOME SUBACCOUNT
Oncore Flex............................................... 10,579.1958 8.842262 $ 93,544
Oncore Value.............................................. 24,325.6525 8.877426 $ 215,949
Oncore Premier............................................ 49,517.9809 8.848103 $ 438,140
GOLDMAN SACHS VIT CORE US EQUITY SUBACCOUNT
Oncore Flex............................................... 13,701.2141 10.178701 $ 139,461
Oncore Value.............................................. 21,555.3686 10.219123 $ 220,277
Oncore Premier............................................ 48,080.8572 10.185409 $ 489,723
GOLDMAN SACHS VIT GLOBAL INCOME SUBACCOUNT
Oncore Flex............................................... 0.0000 10.562975 $ 0
Oncore Value.............................................. 1,759.2795 10.604929 $ 18,657
Oncore Premier............................................ 6,044.1431 10.569939 $ 63,886
GOLDMAN SACHS VIT CAPITAL GROWTH SUBACCOUNT
Investar Vision........................................... 9,474.7690 11.582489 $ 109,741
Top Spectrum.............................................. 27,170.3186 11.582489 $ 314,700
Oncore Flex............................................... 0.0000 11.183295 $ 0
Oncore Value 15,484.3109 11.227684 $ 173,853
Oncore Premier............................................ 41,158.0548 11.190658 $ 460,586
</TABLE>
(4) RISK AND ADMINISTRATIVE EXPENSE
ONLIC charges the Account's assets at the end of each day, equal to 0.25% on
an annual basis, of the contract value for administrative expenses, based on
premiums established at the time the contracts are issued.
Although variable annuity payments differ according to the investment
performance of the Accounts, they are not affected by mortality or expense
experience because ONLIC assumes the expense risk and the mortality risk
under the contracts. ONLIC charges the Accounts' assets for assuming those
risks, based on the contract value at a rate presently ranging from 0.65% to
1.25% for mortality and expense risk on an annual basis.
The expense risk assumed by ONLIC is the risk that the deductions for sales
and administrative expenses provided for in the variable annuity contracts
may prove insufficient to cover the cost of those terms.
The mortality risk results from a provision in the contract in which ONLIC
agrees to make annuity payments regardless of how long a particular
annuitant or other payee lives and how long all annuitants or other payees
as a class live if payment options involving life contingencies are chosen.
Those annuity payments are determined in accordance with annuity purchase
rate provisions established at the time the contracts are issued.
(5) CONTRACT CHARGES
No deduction for a sales charge is made from purchase payments. A contingent
deferred sales charge ranging from 0% to 7% may be assessed by ONLIC when a
contract is surrendered or a partial withdrawal of accumulation value is
made before the annuity payout date.
A transfer fee is charged for each transfer from one subaccount to another.
The fee is charged against the contract owner's equity in the subaccount
from which the transfer is effected.
State premium taxes presently range from 0% to 2-1/2% for these contracts.
In those jurisdictions permitting, such taxes will be deducted when annuity
payments begin. Elsewhere, they will be deducted from purchase payments.
24
<PAGE> 25
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Each year on the contract anniversary (or at the time of surrender of the
contract), ONLIC will deduct a contract administration charge of $30 from
the accumulation value to reimburse it for the expense relating to the
maintenance of the contract. Total contract administration charges for the
Account amounted to approximately $300,000 during 1998.
(6) FEDERAL INCOME TAXES
Operations of the Account form a part of, and are taxed with, operations of
ONLIC which is taxed as a life insurance company under the Internal Revenue
Code. Taxes are the responsibility of the contract owner upon termination or
withdrawal. No Federal income taxes are payable under the present law on
dividend income or capital gains distribution from the Fund shares held in
the Account or on capital gains realized by the Account on redemption of the
Fund shares.
25
