<PAGE> 1
File No. 333-43511
811-1978
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
Pre-Effective Amendment No. / /
Post-Effective Amendment No. 8 /X/
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
Amendment No. 36 /X/
(Exact Name of Registrant)
OHIO NATIONAL VARIABLE ACCOUNT A
(Name of Depositor)
THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Address of Depositor's Principal Executive Offices)
One Financial Way
Cincinnati, Ohio 45242
(Depositor's Telephone Number)
(513) 794-6100
(Name and Address of Agent for Service)
Ronald L. Benedict, Corporate Vice President, Counsel and Secretary
The Ohio National Life Insurance Company
P.O. Box 237
Cincinnati, Ohio 45201
Notice to:
W. Randolph Thompson, Esq.
Of Counsel
Jones & Blouch L.L.P.
Suite 410-East
1025 Thomas Jefferson Street, N.W.
Washington, D.C. 20007
Approximate Date of Proposed Public Offering: As soon after the effective date
of this amendment as is practicable.
It is proposed that this filing will become effective (check appropriate space):
immediately upon filing pursuant to paragraph (b) of Rule 485
--- on (date) pursuant to paragraph (b) of Rule 485
X 60 days after filing pursuant to paragraph (a)(i) of Rule 485
--- on (date) pursuant to paragraph (a)(i) of Rule 485.
If appropriate, check the following box:
--- this post-effective amendment designates a new effective date for
a previously filed post-effective amendment.
<PAGE> 2
OHIO NATIONAL VARIABLE ACCOUNT A
<TABLE>
<CAPTION>
N-4 Item Caption in Prospectus
-------- ---------------------
<S> <C>
1 Cover Page
2 Glossary of Special Terms
3 Not applicable
4 Not applicable
5 Ohio National Life
Ohio National Variable Account A
The Funds
6 Deductions and Expenses
7 Description of Variable Annuity Contracts
8 Annuity Period
9 Death Benefit
10 Accumulation Period
11 Surrender and Partial Withdrawal
12 Federal Tax Status
13 Not applicable
14 Table of Contents
Caption in Statement of Additional Information
15 Cover Page
16 Table of Contents
17 Not applicable
18 Custodian
Independent Certified Public Accountants
19 See Prospectus (Distribution of Variable Annuity Contracts)
Loans Under Tax-Sheltered Annuities
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
<S> <C>
20 Underwriter
21 Calculation of Money Market Subaccount Yield
Total Return
22 See Prospectus (Annuity Period)
23 Financial Statements
Caption in Part C
24 Financial Statements and Exhibits
25 Directors and Officers of the Depositor
26 Persons Controlled by or Under Common Control with the Depositor or
Registrant
27 Number of Contractowners
28 Indemnification
29 Principal Underwriter
30 Location of Accounts and Records
31 Not applicable
32 Undertakings and Representations
</TABLE>
<PAGE> 4
PART A
PROSPECTUS
<PAGE> 5
PROSPECTUS
FLEXIBLE PURCHASE PAYMENT
INDIVIDUAL VARIABLE ANNUITY CONTRACTS
OHIO NATIONAL VARIABLE ACCOUNT A
THE OHIO NATIONAL LIFE INSURANCE COMPANY
One Financial Way
Montgomery, Ohio 45242
Telephone (800) 667-3078
This prospectus offers a variable annuity contract allowing you to accumulate
values and paying you benefits on a variable and/or fixed basis.
Variable annuities provide contract values and lifetime annuity payments that
vary with the investment results of the Funds you choose. You cannot be sure
that the contract value or annuity payments will equal or exceed your purchase
payments.
The variable annuity contracts are designed for:
- annuity purchase plans adopted by public school systems and certain tax-exempt
organizations described in Section 501(c)(3) of the Internal Revenue Code (the
"Code"), qualifying for tax-deferred treatment pursuant to Section 403(b) of
the Code,
- other employee pension or profit-sharing trusts or plans qualifying for
tax-deferred treatment under Section 401(a), 401(k) or 403(a) of the Code,
- individual retirement annuities qualifying for tax-deferred treatment under
Section 408 or 408A of the Code,
- state and municipal deferred compensation plans and
- non-tax-qualified retirement plans.
The minimum initial purchase payment is $10,000. You may make additional
payments of at least $500 at any time ($300 for payroll deduction plans). We may
limit your total purchase payments to $1,500,000.
You may direct the allocation of your purchase payments to one or more (but not
more than 10) subaccounts of Ohio National Variable Account A ("VAA") and/or the
Guaranteed Account. VAA is a separate account of The Ohio National Life
Insurance Company. The assets of VAA are invested in shares of the Funds. The
Funds are portfolios of Ohio National Fund, Inc., the Dow Target Variable Fund
LLC, Goldman Sachs Variable Insurance Trust, Janus Aspen Series, J.P. Morgan
Series Trust II, Lazard Retirement Series, Inc., PBHG Insurance Series Fund,
Inc., The Prudential Series Fund, Inc., Salomon Brothers Variable Series Funds
Inc, Strong Variable Insurance Funds, Inc. and Variable Insurance Products Fund
(Fidelity). See page 2 for the list of available Funds. See also the
accompanying prospectuses of the Funds. The Fund prospectuses might also contain
information about funds that are not available for these contracts.
You may withdraw all or part of the contract's value before annuity payments
begin. You might incur federal income tax penalties for these early withdrawals.
Your exercise of contract rights may be subject to the terms of your qualified
employee trust or annuity plan. This prospectus contains no information
concerning your trust or plan.
You may revoke the contract, without penalty, within 10 days of receiving it (or
a longer period if required by state law).
KEEP THIS PROSPECTUS FOR FUTURE REFERENCE. IT SETS FORTH THE INFORMATION ABOUT
VAA AND THE VARIABLE ANNUITY CONTRACTS THAT YOU SHOULD KNOW BEFORE INVESTING.
ADDITIONAL INFORMATION ABOUT VAA HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION IN A STATEMENT OF ADDITIONAL INFORMATION DATED FEBRUARY , 2001. WE
HAVE INCORPORATED THE STATEMENT OF ADDITIONAL INFORMATION BY REFERENCE. IT IS
AVAILABLE UPON REQUEST AND WITHOUT CHARGE BY WRITING OR CALLING US AT THE ABOVE
ADDRESS. THE TABLE OF CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION IS ON
THE BACK PAGE OF THIS PROSPECTUS.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS PROSPECTUS SHOULD BE
ACCOMPANIED BY THE CURRENT FUND PROSPECTUSES.
FEBRUARY , 2001
Form 8523
<PAGE> 6
TABLE OF CONTENTS
<TABLE>
<S> <C>
Available Funds............................ 2
Fee Table.................................. 4
Financial Statements..................... 8
Accumulation Unit Values................... 8
Ohio National Life....................... 10
Ohio National Variable Account A......... 10
The Funds................................ 10
Mixed and Shared Funding................. 11
Voting Rights............................ 11
Distribution of Variable Annuity
Contracts................................ 12
Deductions and Expenses.................... 12
Sales Charge............................. 12
Contract Administration Charge........... 12
Deduction for Administrative Expenses.... 12
Deduction for Risk Undertakings.......... 12
Transfer Fee............................. 13
Deduction for State Premium Tax.......... 13
Fund Expenses............................ 13
Description of Variable Annuity
Contracts................................ 13
10-Day Free Look......................... 13
Accumulation Period........................ 13
Purchase Payment......................... 13
Accumulation Units....................... 13
Crediting Accumulation Units............. 13
Allocation of Purchase Payments.......... 14
Accumulation Unit Value and Accumulation
Value................................. 14
Net Investment Factor.................... 14
Surrender and Partial Withdrawal......... 14
Transfers among Subaccounts.............. 15
TeleAccess............................... 15
Scheduled Transfers (Dollar Cost
Averaging)............................ 15
Portfolio Rebalancing.................... 16
Death Benefit............................ 16
Guaranteed Account....................... 17
Ohio National Life Employee Discount..... 18
Texas State Optional Retirement
Program............................... 18
Annuity Period............................. 18
Annuity Payout Date...................... 18
Annuity Options.......................... 18
Determination of Amount of the First
Variable Annuity Payment.............. 19
Annuity Units and Variable Payments...... 20
Transfers During Annuity Payout.......... 20
Other Contract Provisions.................. 20
Assignment............................... 20
Reports and Confirmations................ 20
Substitution for Fund Shares............. 21
Contract Owner Inquiries................... 21
Performance Data......................... 21
Federal Tax Status......................... 21
Tax-Deferred Annuities................... 23
Qualified Pension or Profit-Sharing
Plans................................. 23
Individual Retirement Annuities (IRA).... 24
Simplified Employee Pension Plans
(SEPPs)............................... 24
Withholding on Distribution.............. 25
IRA Disclosure Statement................... 26
Free Look Period......................... 26
Eligibility Requirements................. 26
Contributions and Deductions............. 26
IRA for Non-working Spouse............... 27
Rollover Contribution.................... 27
Premature Distributions.................. 28
Distribution at Retirement............... 28
Inadequate Distributions -- 50% Tax...... 28
Death Benefits........................... 28
Roth IRAs................................ 28
Prototype Status......................... 29
Reporting to the IRS..................... 29
Illustration of IRA Fixed Accumulations.... 30
Statement of Additional Information
Contents................................. 31
</TABLE>
AVAILABLE FUNDS
<TABLE>
<S> <C>
OHIO NATIONAL FUND, INC. INVESTMENT ADVISER (SUBADVISER)
Money Market Portfolio Ohio National Investments, Inc.
Equity Portfolio (Legg Mason Funds Management, Inc.)
Bond Portfolio Ohio National Investments, Inc.
Omni Portfolio (a flexible portfolio fund) Ohio National Investments, Inc.
S&P 500 Index Portfolio Ohio National Investments, Inc.
International Portfolio (Federated Global Investment Management Corp.)
International Small Company Portfolio (Federated Global Investment Management Corp.)
Capital Appreciation Portfolio (Jennison Associates LLC)
Small Cap Portfolio (Founders Asset Management LLC)
Aggressive Growth Portfolio (Janus Capital Corporation)
Growth & Income Portfolio (RS Investment Management Co. LLC)
Capital Growth Portfolio (RS Investment Management Co. LLC)
High Income Bond Portfolio (Federated Investment Counseling)
Equity Income Portfolio (Federated Investment Counseling)
</TABLE>
Form 8523
2
<PAGE> 7
<TABLE>
<S> <C>
Blue Chip Portfolio (Federated Investment Counseling)
Core Growth Portfolio (Pilgrim Baxter & Associates, Ltd.)
Nasdaq-100 Index Portfolio Ohio National Investments, Inc.
THE DOW(SM)TARGET VARIABLE FUND LLC
The Dow(SM)Target 10 Portfolios (First Trust Advisors L.P.)
The Dow(SM)Target 5 Portfolios (First Trust Advisors L.P.)
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Goldman Sachs Growth and Income Fund Goldman Sachs Asset Management
Goldman Sachs CORE U.S. Equity Fund Goldman Sachs Asset Management
Goldman Sachs Capital Growth Fund Goldman Sachs Asset Management
Goldman Sachs Global Income Fund Goldman Sachs Asset Management International
JANUS ASPEN SERIES (SERVICE SHARES)
Growth Portfolio Janus Capital Corporation
International Growth Portfolio Janus Capital Corporation
Worldwide Growth Portfolio Janus Capital Corporation
Balanced Portfolio Janus Capital Corporation
J.P. MORGAN SERIES TRUST II
J.P. Morgan Small Company Portfolio J.P. Morgan Investment Management Inc.
LAZARD RETIREMENT SERIES, INC.
Small Cap Portfolio Lazard Asset Management
Emerging Markets Portfolio Lazard Asset Management
MITCHELL HUTCHINS SERIES TRUST
Growth & Income Portfolio Mitchell Hutchins Asset Management Inc.
Tactical Allocation Portfolio Mitchell Hutchins Asset Management Inc.
PBHG INSURANCE SERIES FUND, INC.
PBHG Technology & Communications Portfolio Pilgrim Baxter & Associates, Ltd.
THE PRUDENTIAL SERIES FUND, INC.
Prudential Jennison Portfolio (Jennison Associates LLC)
20/20 Focus Portfolio Prudential Investment Corporation
SALOMON BROTHERS VARIABLE SERIES FUNDS INC
Capital Fund Salomon Brothers Asset Management Inc
Total Return Fund Salomon Brothers Asset Management Inc
Investors Fund (a capital growth fund) Salomon Brothers Asset Management Inc
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II Strong Capital Management, Inc.
Strong Opportunity Fund II
(a mid cap/small cap fund) Strong Capital Management, Inc.
Strong Schafer Value Fund II Strong Capital Management, Inc.
VARIABLE INSURANCE PRODUCTS FUND
SERVICE CLASS 2 (FIDELITY)
VIP Contrafund(R) Portfolio Fidelity Management & Research Company
VIP Mid Cap Portfolio Fidelity Management & Research Company
VIP Growth Portfolio Fidelity Management & Research Company
</TABLE>
Form 8523
3
<PAGE> 8
FEE TABLE
<TABLE>
<CAPTION>
CONTRACTOWNER TRANSACTION EXPENSES
----------------------------------
<S> <C>
Sales Load None
Exchange (transfer) Fee $10 (currently no charge for the first 12
transfers each contract year)
Annual Contract Fee $30 (no fee if contract value exceeds $50,000)
</TABLE>
<TABLE>
<S> <C>
VAA ANNUAL EXPENSES (as a percentage of average account
value)
Mortality and Expense Risk Fees*** 1.25%
Account Fees and Expenses 0.25%
-----
Total VAA Annual Expenses (without optional added death
benefits) 1.50%
Optional increasing death benefit 0.25%
Optional enhanced death benefit 0.30%
-----
Total VAA Annual Expenses with both added death benefits 2.05%
</TABLE>
***The Mortality and Expense Risk fees may be changed at any time, but may not
be increased to more than 1.25%.
Neither the table nor the examples reflect any premium taxes that may apply to a
contract. These currently range from 0% to 3.5%. For further details, see
Deduction for State Premium Tax.
If you choose an optional increasing death benefit, we may charge up to 0.25% of
the death benefit amount. If you choose the optional enhanced death benefit, we
may also charge up to 0.30% (or up to 0.85% if you are now age 71 to 80) of the
average account value. See Death Benefit for details.
FUND ANNUAL EXPENSES (as a percentage of the Fund average net assets)
<TABLE>
<CAPTION>
TOTAL FUND
EXPENSES TOTAL TOTAL FUND
WITHOUT WAIVERS EXPENSES
MANAGEMENT OTHER WAIVERS OR AND WITH WAIVERS
FEES EXPENSES REDUCTIONS REDUCTIONS* OR REDUCTIONS
---------- --------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
OHIO NATIONAL FUND, INC.:
Money Market* 0.30% 0.11% 0.41% 0.05% 0.36%
Equity 0.80% 0.12% 0.92% 0.00% 0.92%
Bond 0.60% 0.17% 0.77% 0.00% 0.77%
Omni 0.54% 0.13% 0.67% 0.00% 0.67%
S&P 500 Index 0.38% 0.11% 0.49% 0.00% 0.49%
International* 0.90% 0.36% 1.26% 0.05% 1.21%
International Small Company 1.00% 1.06% 2.06% 0.00% 2.06%
Capital Appreciation 0.80% 0.15% 0.95% 0.00% 0.95%
Small Cap 0.80% 0.09% 0.89% 0.00% 0.89%
Aggressive Growth 0.80% 0.15% 0.95% 0.00% 0.95%
Growth & Income 0.85% 0.10% 0.95% 0.00% 0.95%
Capital Growth 0.90% 0.19% 1.09% 0.00% 1.09%
High Income Bond 0.75% 0.38% 1.13% 0.00% 1.13%
Equity Income 0.75% 0.53% 1.28% 0.00% 1.28%
Blue Chip 0.90% 0.45% 1.35% 0.00% 1.35%
Core Growth 0.95% 0.11% 1.06% 0.00% 1.06%
Nasdaq-100 Index** 0.75% 0.20% 0.95% 0.00% 0.95%
DOW TARGET VARIABLE FUND LLC:
Dow Target 10* 0.60% 0.64% 1.24% 0.00% 1.03%
Dow Target 5* 0.60% 2.54% 3.14% 0.00% 0.87%
</TABLE>
Form 8523
4
<PAGE> 9
<TABLE>
<CAPTION>
TOTAL FUND
EXPENSES TOTAL TOTAL FUND
WITHOUT WAIVERS EXPENSES
MANAGEMENT OTHER WAIVERS OR AND WITH WAIVERS
FEES EXPENSES REDUCTIONS REDUCTIONS* OR REDUCTIONS
---------- --------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
GOLDMAN SACHS VARIABLE INSURANCE TRUST:
Goldman Sachs Growth and Income* 0.75% 0.47% 1.22% 0.22% 1.00%
Goldman Sachs CORE U.S. Equity 0.70% 0.20% 0.90% 0.00% 0.90%
Goldman Sachs Capital Growth* 0.75% 0.94% 1.69% 0.69% 1.00%
Goldman Sachs Global Income* 0.90% 1.78% 2.68% 1.53% 1.15%
JANUS ASPEN SERIES (SERVICE SHARES):
Growth** 0.65% 0.27% 0.92% 0.00% 0.92%
International Growth** 0.65% 0.36% 1.01% 0.00% 1.01%
Worldwide Growth** 0.65% 0.30% 0.95% 0.00% 0.95%
Balanced** 0.65% 0.27% 0.92% 0.00% 0.92%
J.P. MORGAN SERIES TRUST II:
J.P. Morgan Small Company* 0.60% 1.97% 2.57% 1.42% 1.15%
LAZARD RETIREMENT SERIES, INC.:
Small Cap* 0.75% 6.56% 7.31% 6.06% 1.25%
Emerging Markets* 1.00% 8.59% 9.59% 7.99% 1.60%
MITCHELL HUTCHINS SERIES TRUST:
Growth & Income 0.70% 0.78% 1.48% 0.00% 1.48%
Tactical Allocation 0.50% 0.49% 0.99% 0.00% 0.99%
PBHG INSURANCE SERIES FUND, INC.:
PBHG Technology & Communications 0.85% 0.24% 1.09% 0.00% 1.09%
THE PRUDENTIAL SERIES FUND, INC.:
Prudential Jennison 0.60% 0.43% 1.03% 0.00% 1.03%
20/20 Focus 0.75% 0.74% 1.49% 0.00% 1.49
SALOMON BROTHERS VARIABLE SERIES FUNDS INC:
Capital* 0.85% 1.14% 1.99% 0.99% 1.00%
Total Return* 0.80% 0.85% 1.65% 0.65% 1.00%
Investors* 0.70% 0.45% 1.15% 0.17% 0.98%
STRONG VARIABLE INSURANCE FUNDS, INC.:
Strong Mid Cap Growth II* 1.00% 0.17% 1.17% 0.02% 1.15%
Strong Opportunity II 1.00% 0.14% 1.14% 0.00% 1.14%
Strong Schafer Value II* 1.00% 0.57% 1.57% 0.37% 1.20%
VARIABLE INSURANCE PRODUCTS FUND (FIDELITY):
VIP Contrafund 0.58% 0.37% 0.95% 0.00% 0.95%
VIP Mid Cap 0.57% 0.68% 1.25% 0.00% 1.25%
VIP Growth 0.58% 0.35% 0.93% 0.00% 0.93%
</TABLE>
Form 8523
5
<PAGE> 10
EXAMPLE -- You would pay the following aggregate expenses on a $1,000 investment
in each Fund, assuming a 5% annual return:
<TABLE>
<CAPTION>
1 3 5 10
YEAR YEARS YEARS YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
OHIO NATIONAL FUND, INC.:
Money Market* $24 $ 75 $129 $275
Equity 30 92 156 329
Bond 29 87 149 315
Omni 28 84 144 305
S&P 500 Index 26 79 135 288
International* 33 100 170 356
International Small Company 41 125 210 430
Capital Appreciation 30 93 158 332
Small Cap 30 91 155 326
Aggressive Growth 30 93 158 332
Growth & Income 30 93 158 332
Capital Growth 32 97 164 345
High Income Bond 32 98 166 348
Equity Income 34 102 174 362
Blue Chip 34 104 177 368
Core Growth 31 96 163 342
Nasdaq-100 Index** 30 93 158 332
DOW TARGET VARIABLE FUND LLC:
Dow Target 10* 31 95 162 339
Dow Target 5* 30 90 154 324
GOLDMAN SACHS VARIABLE INSURANCE TRUST:
Goldman Sachs Growth and Income* 31 94 160 336
Goldman Sachs CORE U.S. Equity 30 91 155 327
Goldman Sachs Capital Growth* 31 94 160 336
Goldman Sachs Global Income* 32 99 167 350
JANUS ASPEN SERIES (SERVICE SHARES):
Growth** 30 92 156 329
International Growth** 31 95 161 337
Worldwide Growth** 30 93 158 332
Balanced** 30 92 156 329
J.P. MORGAN SERIES TRUST II:
J.P. Morgan Small Company* 32 99 167 350
LAZARD RETIREMENT SERIES, INC.:
Small Cap* 33 102 172 359
Emerging Markets* 37 112 189 391
MITCHELL HUTCHINS SERIES TRUST:
Growth & Income 36 108 183 380
Tactical Allocation 31 94 160 336
PBHG INSURANCE SERIES FUND, INC.:
PBHG Technology & Communications 32 97 164 345
THE PRUDENTIAL SERIES FUND, INC.:
Prudential Jennison 31 95 162 339
20/20 Focus 36 109 184 381
SALOMON BROTHERS VARIABLE SERIES FUNDS INC:
Capital* 39 119 200 412
Total Return* 31 94 160 336
Investors* 31 94 159 335
</TABLE>
Form 8523
6
<PAGE> 11
<TABLE>
<CAPTION>
1 3 5 10
YEAR YEARS YEARS YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
STRONG VARIABLE INSURANCE FUNDS, INC.:
Strong Mid Cap Growth II* $32 $ 99 $167 $350
Strong Opportunity II 32 98 167 349
Strong Schafer Value II* 33 100 170 355
VARIABLE INSURANCE PRODUCTS FUND (FIDELITY):
VIP ContraFund 30 93 158 332
VIP Mid Cap 33 102 172 359
VIP Growth 30 92 157 330
</TABLE>
*The investment advisers of certain Funds are voluntarily waiving part or all of
their management fees and/or reimbursing certain Funds in order to reduce total
Fund expenses.
EXAMPLE -- Without the voluntary fee waivers or reimbursements by investment
advisers, you would pay the following aggregate expenses on a $1,000 investment
in each of the following Fund's, assuming 5% annual return:
<TABLE>
<CAPTION>
1 3 5 10
YEAR YEARS YEARS YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
OHIO NATIONAL FUND, INC.:
Money Market $25 $ 77 $131 $280
International 33 102 173 360
DOW TARGET VARIABLE FUND LLC:
Dow Target 10 33 101 172 359
Dow Target 5 52 155 258 514
GOLDMAN SACHS VARIABLE INSURANCE TRUST:
Goldman Sachs Growth and Income 33 101 171 357
Goldman Sachs Capital Growth 38 114 193 398
Goldman Sachs Global Income 47 142 238 479
J.P. MORGAN SERIES TRUST II:
J.P. Morgan Small Company 46 139 233 471
LAZARD RETIREMENT SERIES, INC.:
Small Cap 92 263 420 755
Emerging Markets 113 316 493 842
SALOMON BROTHERS VARIABLE SERIES FUNDS INC:
Capital 41 123 207 424
Total Return 37 113 191 395
Investors 32 99 167 350
STRONG VARIABLE INSURANCE FUNDS, INC.:
Strong Mid Cap Growth II 32 99 168 352
Strong Schafer Value II 36 111 187 388
</TABLE>
**The "Other Expenses" (and, accordingly, the Total Fund Expenses) for these
Funds are based on estimates.
The purpose of the above table is to help you to understand the costs and
expenses that you will bear directly or indirectly. [THESE EXAMPLES SHOULD NOT
BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSE. ACTUAL EXPENSES MAY BE
GREATER OR LESS THAN THOSE SHOWN.] For some funds, the "Other Expenses" include
a 12b-1 fee. These fees do not exceed 0.25%. Note that the expense amounts shown
in the examples are aggregate amounts for the total number of years indicated.
In the examples, the annual fee is treated as if it were deducted as a
percentage of assets, based upon the average account value for all contracts,
including ones from which a portion of the contract fee may be paid from amounts
invested in the Guaranteed Account. The above table and examples reflect only
the charges for contracts currently offered by this prospectus and not other
contracts that we may offer. The examples assume that you pay 0.25% for an
optional increasing death benefit plus 0.30% for the optional enhanced death
benefit.
Form 8523
7
<PAGE> 12
FINANCIAL STATEMENTS
The complete financial statements of VAA and Ohio National Life, including the
Independent Auditors' Reports for them, are included in the Statement of
Additional Information.
ACCUMULATION UNIT VALUES
This series of variable annuity contracts began on May 1, 1998. The Dow Target
Variable Fund was first used in these contracts January 6, 1999. Ohio National
Fund International Small Company Portfolio and Lazard Retirement Series, Small
Cap and Emerging Markets Portfolios were first used in these contracts May
1,1999.
The Ohio National Fund Equity portfolio and the Mitchell Hutchins Series
Strategic Income, Growth & Income, Tactical Allocation and Small Cap portfolios
were first used in these contracts July 1, 1999. The Ohio National Fund Small
Cap and Aggressive Growth portfolios and the Prudential Series Prudential
Jennison and 20/20 Focus portfolios were first used in these contracts January
3, 2000. The Ohio National Core Growth and Nasdaq-100 Index portfolios, the
Janus Aspen Series Service Shares, the PBHG Technology & Communications
portfolio and the Variable Insurance Products (Fidelity) portfolios were first
used in these contracts May 1, 2000. The Janus Aspen Series Institutional Shares
and Morgan Stanley Universal Funds are not available in contracts issued on or
after May 1, 2000. The Mitchell Hutchins Series Strategic Income and Small Cap
portfolios are not available in contracts issued on or after September 15, 2000.
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C> <C>
OHIO NATIONAL FUND:
Money Market 1998 $10.000000 $10.250770 354,726
1999 10.250770 10.606650 580,948
Equity 1999 $10.000000 $10.796756 225,183
Bond 1998 $10.000000 $10.211170 0
1999 10.211170 10.118406 3,335
Omni 1998 $10.000000 $ 9.373686 0
1999 9.373686 10.283878 264
S&P 500 Index 1998 $10.000000 $11.131014 14,746
1999 11.131014 13.777077 168,968
International 1998 $10.000000 $ 9.345821 0
1999 9.345821 15.413858 62,643
International Small Company 1999 $10.000000 $15.087923 108
Capital Appreciation 1998 $10.000000 $ 9.830302 6,258
1999 9.830302 10.310477 18,630
Growth & Income 1998 $10.000000 $ 9.287411 3,517
1999 9.287411 14.846078 8,452
Capital Growth 1998 $10.000000 $10.359321 5,017
1999 10.359321 30.891708 33,970
High Income Bond 1998 $10.000000 $ 9.882097 0
1999 9.882097 9.935713 12,856
Equity Income 1998 $10.000000 $10.488837 0
1999 10.488837 12.266014 6,924
Blue Chip 1998 $10.000000 $10.134253 2,508
1999 10.134253 10.580255 17,773
</TABLE>
Form 8523
8
<PAGE> 13
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C> <C>
DOW TARGET VARIABLE FUND:
Dow Target 10, January 1999 $10.000000 $10.154375 128
Dow Target 10, February 1999 $10.000000 $10.538202 38,068
Dow Target 10, March 1999 $10.000000 $10.096966 12,836
Dow Target 10, April 1999 $10.000000 $10.162000 884
Dow Target 10, May 1999 $10.000000 $ 8.314354 1,438
Dow Target 10, June 1999 $10.000000 $ 8.965064 1,644
Dow Target 10, July 1999 $10.000000 $ 8.841905 229
Dow Target 10, August 1999 $10.000000 $ 8.907985 2,889
Dow Target 10, September 1999 $10.000000 $ 8.789882 10,541
Dow Target 10, October 1999 $10.000000 $ 9.232746 14,194
Dow Target 10, November 1999 $10.000000 $10.087394 4,234
Dow Target 10, December 1999 $10.000000 $10.004157 727
GOLDMAN SACHS VARIABLE INSURANCE TRUST:
Goldman Sachs Growth and Income 1998 $10.000000 $ 8.842262 10,579
1999 8.842262 9.183018 32,934
Goldman Sachs CORE U.S. Equity 1998 $10.000000 $10.178701 13,701
1999 10.178701 12.465356 31,465
Goldman Sachs Capital Growth 1998 $10.000000 $11.183295 0
1999 11.183295 14.007791 8,621
Goldman Sachs Global Income 1998 $10.000000 $10.562975 0
1999 10.562975 10.301425 13,311
JANUS ASPEN SERIES (INSTITUTIONAL
SHARES):
Growth 1998 $10.000000 $11.550278 7,103
1999 11.550278 16.385089 181,724
International Growth 1998 $10.000000 $ 9.866798 0
1999 9.866798 17.719378 228,884
Worldwide Growth 1998 $10.000000 $10.498008 2,063
1999 10.498008 17.009248 370,658
Balanced 1998 $10.000000 $11.619511 10,515
1999 11.619511 14.511033 123,188
J.P. MORGAN SERIES TRUST II:
J.P. Morgan Small Company 1998 $10.000000 $ 8.326677 3,544
1999 8.326677 11.845638 7,491
LAZARD RETIREMENT SERIES:
Small Cap 1999 $10.000000 $ 9.283667 0
Emerging Markets 1999 $10.000000 $11.476404 2,966
MITCHELL HUTCHINS SERIES TRUST:
Strategic Income 1999 $10.000000 $ 9.974528 782
Growth & Income 1999 $10.000000 $10.503936 7,311
Tactical Allocation 1999 $10.000000 $10.464132 84,698
Small Cap 1999 $10.000000 $10.784880 116
</TABLE>
Form 8523
9
<PAGE> 14
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C> <C>
MORGAN STANLEY UNIVERSAL:
Fixed Income 1998 $10.000000 $10.442562 3,925
1999 10.442562 10.120748 30,259
Value 1998 $10.000000 $ 8.793779 0
1999 8.793779 8.506511 4,534
U.S. Real Estate 1998 $10.000000 $ 8.935176 0
1999 8.935176 8.673554 1,698
Emerging Markets Debt 1998 $10.000000 $ 6.715933 0
1999 6.715933 8.560480 0
SALOMON BROTHERS VARIABLE SERIES:
Capital 1998 $10.000000 $10.660198 3,518
1999 10.660198 12.822212 22,316
Total Return 1998 $10.000000 $ 9.998263 3,757
1999 9.998263 9.927581 4,263
Investors 1998 $10.000000 $10.125357 4,237
1999 10.125357 11.137851 7,637
STRONG VARIABLE INSURANCE FUNDS:
Strong Mid Cap Growth II 1998 $10.000000 $11.518881 0
1999 11.518881 21.549079 20,343
Strong Opportunity II 1998 $10.000000 $ 9.534784 42,277
1999 9.534784 12.673177 3,803
Strong Schafer Value II 1998 $10.000000 $ 9.386490 0
1999 9.386490 8.982623 3,497
</TABLE>
OHIO NATIONAL LIFE
Ohio National Life was organized under the laws of Ohio on September 9, 1909. We
write life, accident and health insurance and annuities in 47 states, the
District of Columbia and Puerto Rico. Currently we have assets in excess of $6.6
billion and equity in excess of $750 million. Our home office is located at One
Financial Way, Montgomery, Ohio 45242. We are a stock life insurance company
ultimately owned by a mutual insurance holding company (Ohio National Mutual
Holdings, Inc.). Our policyholders own the majority voting interest of the
holding company.
OHIO NATIONAL VARIABLE ACCOUNT A
We established VAA on August 1, 1969 as a separate account for funding variable
annuity contracts. Purchase payments for the variable annuity contracts are
allocated to one or more subaccounts of VAA. However, contract values may not be
allocated to more than 10 variable subaccounts at any one time. Income, gains
and losses, whether or not realized, from assets allocated to VAA are credited
to or charged against VAA without regard to our other income, gains or losses.
The assets maintained in VAA will not be charged with any liabilities arising
out of any of our other business. Nevertheless, all obligations arising under
the contracts, including the commitment to make annuity payments, are our
general corporate obligations. Accordingly, all our assets are available to meet
our obligations under the contracts. VAA is registered as a unit investment
trust under the Investment Company Act of 1940. The assets of the subaccounts of
VAA are invested at net asset value in Fund shares. Values of other contracts
not offered through this prospectus are also allocated to VAA, including some
subaccounts that are not available for these contracts.
THE FUNDS
The Funds are mutual funds registered under the Investment Company Act 1940.
Fund shares are sold only to insurance company separate accounts to fund
variable annuity contracts and variable life insurance policies and, in
Form 8523
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<PAGE> 15
some cases, to qualified plans. The value of each Fund's investments fluctuates
daily and is subject to the risk that Fund management may not anticipate or make
changes necessary in the investments to meet changes in economic conditions.
The Funds receive investment advice from their investment advisers. The Funds
pay each of the investment advisers a fee as shown in the fee table beginning on
page 3. In some cases, the investment adviser pays part of its fee to a
subadviser.
Affiliates of certain Funds may compensate us based upon a percentage of the
Fund's average daily net assets that are allocated to VAA. These percentages
vary by Fund. This is intended to compensate us for administrative and other
services we provide to the Funds and their affiliates.
For additional information concerning the Funds, including their investment
objectives, see the Fund prospectuses. Read them carefully before investing.
They may contain information about other funds that are not available as
investment options for these contracts. You cannot be sure that any Fund will
achieve its stated objectives and policies.
The investment policies, objectives and/or names of some of the Funds may be
similar to those of other investment companies managed by the same investment
adviser or subadviser. However, similar funds often do not have comparable
investment performance. The investment results of the Funds may be higher or
lower than those of the other funds.
MIXED AND SHARED FUNDING
In addition to being offered to VAA, certain Fund shares are offered to our
other separate accounts for variable annuity contracts and a separate account of
Ohio National Life Assurance Corporation for variable life insurance contracts.
Fund shares may also be offered to other insurance company separate accounts and
qualified plans. It is conceivable that in the future it may become
disadvantageous for one or more of variable life and variable annuity separate
accounts, or separate accounts of other life insurance companies, and qualified
plans, to invest in Fund shares. Although neither we nor any of the Funds
currently foresee any such disadvantage, the Board of Directors or Trustees of
each Fund will monitor events to identify any material conflict among different
types of owners and to determine if any action should be taken. That could
possibly include the withdrawal of VAA's participation in a Fund. Material
conflicts could result from such things as:
- changes in state insurance law;
- changes in federal income tax law;
- changes in the investment management of any Fund; or
- differences in voting instructions given by different types of owners.
VOTING RIGHTS
We will vote Fund shares held in VAA at Fund shareholders meetings in accordance
with voting instructions received from contract owners. We will determine the
number of Fund shares for which you are entitled to give instructions as
described below. This determination will be within 90 days before the
shareholders meeting. Proxy material and forms for giving voting instructions
will be distributed to each owner. We will vote Fund shares held in VAA, for
which no timely instructions are received, in proportion to the instructions
that we do receive
Until annuity payments begin, the number of Fund shares for which you may
instruct us is determined by dividing your contract value in each Fund by the
net asset value of a share of that Fund as of the same date. After annuity
payments begin, the number of Fund shares for which you may instruct us is
determined by dividing the actuarial liability for your variable annuity by the
net asset value of a Fund share as of the same date. Generally, the number of
votes tends to decrease as annuity payments progress.
Form 8523
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<PAGE> 16
DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS
The variable annuity contracts are sold by our insurance agents who are also
registered representatives of broker-dealers that have entered into distribution
agreements with Ohio National Equities, Inc. "ONEQ" is a wholly-owned subsidiary
of ours. ONEQ is the principal underwriter of the contracts. ONEQ and the
broker-dealers are registered under the Securities Exchange Act of 1934 and are
members of the National Association of Securities Dealers, Inc. We pay ONEQ
7.25% of each purchase payment and ONEQ then pays part of that to the broker-
dealers. The broker-dealers pay their registered representatives from their own
funds. Purchase payments on which nothing is paid to registered representatives
may not be included in amounts on which we pay the sales compensation to ONEQ.
If our surrender charge is not sufficient to recover the fee paid to ONEQ, any
deficiency will be made up from our general assets. These include, among other
things, any profit from the mortality and expense risk charges. ONEQ's address
is One Financial Way, Montgomery, Ohio 45242.
DEDUCTIONS AND EXPENSES
SALES CHARGE
No deduction is made for sales expense.
CONTRACT ADMINISTRATION CHARGE
Each year on the contract anniversary (or when you surrender of the contract),
we will deduct a contract administration charge of $30 from the contract value.
This helps to repay us for maintaining the contract. There is no contract
administration charge for contracts having a value of at least $50,000. There is
no charge after annuity payments begin. We guarantee not to increase the
contract administration charge.
DEDUCTION FOR ADMINISTRATIVE EXPENSES
At the end of each valuation period we deduct an amount equal to 0.25% on an
annual basis of the contract value. This deduction reimburses us for expenses
not covered by the contract administration charge. Examples of these expenses
are accounting, auditing, legal, contract owner services, reports to regulatory
authorities and contract owners, contract issue, etc.
DEDUCTION FOR RISK UNDERTAKINGS
We guarantee that, until annuity payments begin, the contract's value will not
be affected by any excess of sales and administrative expenses over the
deductions for them. We also guarantee to pay a death benefit if the annuitant
dies before annuity payments begin. After annuity payments begin, we guarantee
that variable annuity payments will not be affected by adverse mortality
experience or expenses.
For assuming these risks, when we determine the accumulation unit values and the
annuity unit values for each subaccount, we make a deduction from the applicable
investment results equal to 1.25% of the contract value on an annual basis. We
may decrease that deduction at any time and we may increase it not more often
than annually to not more than 1.25% on an annual basis. We agree that the
deduction for these risk undertakings shall not be increased to more than the
rate in effect at the time the contract is issued. We may discontinue this
limitation on our right to increase the deduction, but only as to contracts
purchased after notice of the discontinuance. The risk charge is an indivisible
whole of the amount currently being deducted. However, we believe that a
reasonable allocation would be 0.65% for mortality risk, and 0.60% for expense
risk. We hope to realize a profit from this charge. However there will be a loss
if the deduction fails to cover the actual risks involved.
Form 8523
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<PAGE> 17
TRANSFER FEE
We may charge a transfer fee of $10 for each transfer from one or more
subaccounts to other subaccounts. The fee is charged pro rata against the
subaccounts from which the transfer is made. We do not charge for your first 12
transfers each contract year.
DEDUCTION FOR STATE PREMIUM TAX
Most states do not presently charge a premium tax for these contracts. Where a
tax applies, the rates for tax-qualified contracts are presently 0.5% in
California, 1.0% in Puerto Rico and West Virginia, 2.0% in Kentucky and 2.25% in
the District of Columbia. For non-tax-qualified contracts, the rates are
presently 1.0% in Puerto Rico, West Virginia and Wyoming, 1.25% in South Dakota,
2.0% in Kentucky and Maine, 2.25% in the District of Columbia, 2.35% in
California and 3.5% in Nevada. The deduction for premium taxes will be made when
incurred. Normally, that is not until annuity payments begin. However, in South
Dakota and Wyoming, they are presently being deducted from purchase payments.
FUND EXPENSES
There are deductions from, and expenses paid out of, the assets of the Funds.
These are described in the Fund prospectuses.
DESCRIPTION OF VARIABLE ANNUITY CONTRACTS
10-DAY FREE LOOK
You may revoke the contract at any time until the end of 10 days after you
receive it (or such longer period as may be required by your state law) and get
a refund of the contract value as of the date of cancellation. To revoke, you
must return the contract to us within the free look period. In Georgia, Idaho,
Indiana, Nebraska, Nevada, North Carolina, Oklahoma, South Carolina, Utah and
Washington, state law requires that the original purchase price be returned in
lieu of the current contract value if you exercise your free look. Any purchase
payments in these states to be allocated to variable Funds will first be
allocated to the Money Market Fund until the end of the free look period.
ACCUMULATION PERIOD
PURCHASE PAYMENTS
Your first purchase payment must be at least $10,000. You do not have to make
any more payments after that. But you may make additional purchase payments at
any time of at least $500 each ($300 for payroll deduction plans). We may limit
your total purchase payments to $1,500,000.
ACCUMULATION UNITS
Until the annuity payout date, the contract value is measured by accumulation
units. As you make each purchase payment, we credit units to the contract (see
Crediting Accumulation Units). The number of units remains constant between
purchase payments but their dollar value varies depending upon the investment
results of each Fund to which payments are allocated.
CREDITING ACCUMULATION UNITS
Your representative will send an order or application, together with the first
purchase payment, to our home office for acceptance. Upon acceptance, we issue a
contract and we credit the first purchase payment to the contract in the form of
accumulation units. If all information necessary for issuing a contract and
processing the purchase payment is complete, we will credit your first purchase
payment within two business days after receipt. If we do not receive everything
within five business days, we will return the purchase payment to you
immediately unless
Form 8523
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<PAGE> 18
you specifically consent to having us retain the purchase payment until the
necessary information is completed. After that, we will credit the purchase
payment within two business days.
You must send any additional purchase payments directly to our home office. They
will then be applied to provide that number of accumulation units (for each
subaccount) determined by dividing the amount of the purchase payment by the
unit value next computed after we receive the payment at our home office.
ALLOCATION OF PURCHASE PAYMENTS
You may allocate your purchase payments among up to 10 variable subaccounts of
VAA and to the Guaranteed Account. The amount you allocate to any Fund or the
Guaranteed Account must equal a whole percent You may change your allocation of
future purchase payments at any time by sending written notice to our home
office.
ACCUMULATION UNIT VALUE AND ACCUMULATION VALUE
We set the accumulation unit value of each subaccount of VAA at $10 when we
credited the first payments for these contracts. We determine the unit value for
any later valuation period by multiplying the unit value for the immediately
preceding valuation period by the net investment factor (described below) for
such later valuation period. We determine a contract's value by multiplying the
total number of units (for each subaccount) credited to the contract by the unit
value (for such subaccount) for the current valuation period.
NET INVESTMENT FACTOR
The net investment factor measures the investment results of each subaccount.
The net investment factor for each subaccount for any valuation period is
determined by dividing (a) by (b), then subtracting (c) from the result, where:
(a) is
(1) the net asset value of the corresponding Fund share at the end of a
valuation period, plus
(2) the per share amount of any dividends or other distributions declared
for that Fund if the "ex-dividend" date occurs during the valuation
period, plus or minus
(3) a per share charge or credit for any taxes paid or reserved for the
maintenance or operation of that subaccount; (no federal income taxes
apply under present law.)
(b) is the net asset value of the corresponding Fund share at the end of the
preceding valuation period; and
(c) is the deduction for administrative and sales expenses and risk
undertakings.
SURRENDER AND PARTIAL WITHDRAWAL
Before annuity payments begin (and also after that in the case of annuity Option
1(e) described below) you may surrender (totally withdraw the value of) your
contract or elect a partial withdrawal (at least $300). In the case of a
complete surrender, we subtract any contract administration charge. We will pay
you within seven days after we receive your request. However, we may defer
payment described below. Surrenders and partial withdrawals are limited or not
permitted in connection with certain retirement plans. For tax consequences of a
surrender or withdrawal, see Federal Tax Status.
If you request a surrender or partial withdrawal which includes contract values
derived from purchase payments that have not yet cleared the banking system, we
may delay mailing the portion relating to such payments until your check has
cleared. We require the return of the contract in the case of a complete
surrender.
Your right to withdraw may be suspended or the date of payment postponed:
(1) for any period during which the New York Stock Exchange is closed (other
than customary weekend and holiday closings) or during which the Securities
and Exchange Commission has restricted trading on the Exchange;
Form 8523
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<PAGE> 19
(2) for any period during which an emergency, as determined by the Commission,
exists as a result of which disposal of securities held in a Fund is not
reasonably practical, or it is not reasonably practical to determine the
value of a Fund's net assets; or
(3) such other periods as the Commission may order to protect security holders.
TRANSFERS AMONG SUBACCOUNTS
You may transfer contract values from one or more Funds to one or more other
Funds. You may make transfers at any time before annuity payments begin. The
amount of any transfer must be at least $300 (or the entire value of the
contract's interest in a Fund, if less).
We may limit the number, frequency, method or amount of transfers. We may limit
transfers from any Fund on any one day to 1% of the previous day's total net
assets of that Fund if we or the Fund in our discretion, believe that the Fund
might otherwise be damaged. In determining which requests to honor, scheduled
transfers (under a DCA program) will be made first, followed by mailed written
requests in the order postmarked and, lastly, telephone and facsimile requests
in the order received. We will notify you if your requested transfer is not
made. Current SEC rules preclude us from processing at a later date those
requests that were not made. Accordingly, you would need to submit a new
transfer request in order to make a transfer that was not made because of these
limitations.
Certain third parties may offer you asset allocation or timing services for your
contract. We may choose to honor transfer requests from these third parties if
you give us a written power of attorney to do so. Fees you pay for such asset
allocation or timing services are in addition to any contract charges. WE DO NOT
ENDORSE, APPROVE OR RECOMMEND THESE SERVICES.
After annuity payments begin, you may make transfers among Funds only once each
calendar quarter. The transfer fee no longer applies then. Not more than 20% of
a contract's Guaranteed Account value (or $1,000, if greater) as of the
beginning of a contract year may be transferred to variable Funds during that
contract year.
TELEACCESS
If you give us a pre-authorization form, your contract and unit values and
interest rates can be checked and transfers may be made by telephoning us
between 7:00 a.m. and 7:00 p.m. (Eastern time) on days that we are open for
business, at 1-800-366-6654, #8. You may only make one telephone transfer per
day. We will honor pre-authorized telephone transfer instructions from anyone
who provides the personal identifying information requested via TeleAccess. We
will not honor telephone transfer requests after we receive notice of your
death. For added security, we send the contract owner a written confirmation of
all telephone transfers on the next business day. However, if we cannot complete
a transfer as requested, our customer service representative will contact the
owner in writing sent within 48 hours of the TeleAccess request. [YOU MAY THINK
THAT YOU HAVE LIMITED THIS ACCESS TO YOURSELF, OR TO YOURSELF AND YOUR
REPRESENTATIVE. HOWEVER, ANYONE GIVING US THE NECESSARY IDENTIFYING INFORMATION
CAN USE TELEACCESS ONCE YOU AUTHORIZE IT.]
SCHEDULED TRANSFERS (DOLLAR COST AVERAGING)
We administer a scheduled transfer ("DCA") program enabling you to preauthorize
automatic monthly or quarterly transfers of a specified dollar amount of at
least $300 each time. At least 12 DCA transfers must be scheduled, but we may
permit fewer under some special DCA programs. The transfers may be from any
variable Funds to any other Funds or to the Guaranteed Account. Transfers may be
made from the Guaranteed Account to any other Funds if the DCA program is
established at the time the contract is issued, the DCA program is scheduled to
begin within 6 months of the time you make purchase payments from which DCA
transfers will be made. A DCA program from the Guaranteed Account may not exceed
2 years. For transfers from variable Funds, the DCA program may not exceed 5
years. There is no transfer fee for DCA transfers. DCA transfers do not count as
the free transfer you are allowed once each calendar month. We may discontinue
the DCA program at
Form 8523
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<PAGE> 20
any time. You may also discontinue further DCA transfers by giving us written
notice at least 7 business days before the next scheduled transfer.
DCA generally has the effect of reducing the risk of purchasing at the top, and
selling at the bottom, of market cycles. DCA transfers from the Guaranteed
Account or from a Fund with a stabilized net asset value, such as the Money
Market Fund, will generally reduce the average total cost of indirectly
purchasing Fund shares because greater numbers of shares will be purchased when
the share prices are lower than when prices are higher. However, DCA does not
assure you of a profit, nor does it protect against losses in a declining
market. Moreover, for transfers from a variable Fund, DCA has the effect of
reducing the average price of the shares being redeemed. DCA might also be used
to systematically transfer contract values from variable Funds to the Guaranteed
Account in anticipation of retirement, reducing the risk of making a single
transfer during a low market.
PORTFOLIO REBALANCING
You may have us automatically transfer amounts on a quarterly, semi-annual or
annual basis to maintain a specified percentage (whole percentages only) of
contract value in each of two or more designated Funds. The purpose of a
portfolio rebalancing strategy is to maintain, over time, your desired
allocation percentage in the designated Funds having differing investment
performance. Portfolio rebalancing will not necessarily enhance future
performance or protect against future losses.
To elect, change or discontinue this option, you must give us written
authorization. The transfer charge does not apply to portfolio rebalancing
transactions. These transactions do not count against the free transfer you are
allowed once each calendar month. You may not have portfolio rebalancing for any
Funds that are part of a DCA program.
DEATH BENEFIT
If the annuitant (and any contingent annuitant) dies before annuity payments
begin, the contract pays a death benefit to a designated beneficiary. (Death
benefits are not available on any contract purchased through a bank in Puerto
Rico.) The amount of the death benefit will be determined as of the date of the
annuitant's death. It will be paid to the beneficiary in a single sum unless you
elect settlement under one or more of the settlement options. If the death
benefit is not claimed within 90 days after the date of death, we will pay the
contract value next determined after we receive written notice of the claim
instead of any greater death benefit. In lieu of the death benefit, the
beneficiary may surrender the contract, without incurring a surrender charge,
anytime within 90 days after the annuitant's death. If the contract value as of
the date of death is less than the death benefit, we will add an amount equal to
that difference to your Money Market subaccount.
This death benefit will be the greatest of:
- the contract value; or
- net purchase payments; or
-the stepped-up death benefit amount if you chose that option; or
-the guaranteed minimum death benefit if you chose that option.
Net purchase payments means your total purchase payments minus any amounts you
have withdrawn from the contract.
In those states where permitted, you may choose an optional annual stepped-up
death benefit at the time the contract is issued. With that option, the death
benefit on the first contract anniversary will be the greater of (a) the
contract value then or (b) net purchase payments made on or before that date. On
each contract anniversary after that (until the annuitant attains age 80), the
death benefit will be reset to the greater of (a) the contract value on that
anniversary date or (b) the death benefit as of the last preceding anniversary.
The death benefit is increased by purchase payments and decreased by withdrawals
made during the year before each
Form 8523
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<PAGE> 21
anniversary. There is an additional charge (presently at an annual rate of 0.05%
of the optional death benefit amount, which rate may be increased to no more
than 0.25% on contracts issued in the future) for this optional benefit.
In those states where permitted, you may choose a guaranteed minimum death
benefit at the time the contract is issued. With this option, the death benefit
is the greater of (a) the contract value on the date of death or (b) the
guaranteed minimum death benefit amount. The guaranteed minimum death benefit
amount for contract values held in the Guaranteed Account and the Money Market
Fund is the contract value as of the date of death. For all other subaccounts,
the guaranteed minimum death benefit amount is (i) net purchase payments plus
(ii) a daily increase, until the annuitant attains age 80, at an effective
annual rate of 6%. There is an additional charge for this option of 0.25% of the
guaranteed minimum death benefit amount.
In those states where permitted, you may choose an optional enhanced death
benefit at the time the contract is issued. With that option, the following
amount will be added to any other amount payable upon the annuitant's death:
-40% of the lesser of (a) two and a half times net purchase payments, or (b) the
contract value on the date of death minus net purchase payments; or
-20% of the lesser of (a) or (b).
If you choose the 40% benefit level, there is an additional charge of 0.30% (or
0.85% if you are age 71 to 80 when the contract is issued). If you choose the
20% benefit level, the charge is 0.15% (or 0.45% for ages 71 to 80 when issued).
You may choose the enhanced death benefit in addition to one of the other death
benefit options.
The beneficiary for any death proceeds may choose to continue the contract for
up to 5 years (or longer if the beneficiary is the deceased annuitant's spouse).
The beneficiary will then be the owner and annuitant of the continued contract.
The value of the continued contract, as of the date the death benefit was
payable, will equal the amount of the death benefit.
GUARANTEED ACCOUNT
The Guaranteed Account guarantees a fixed return for a specified period of time
and guarantees the principal against loss. The Guaranteed Account is not
registered as an investment company. Interests in it are not subject to the
provisions or restrictions of federal securities laws. The staff of the
Securities and Exchange Commission has not reviewed disclosures regarding it.
The Guaranteed Account consists of all of our general assets other than those
allocated to a separate account. You may allocate purchase payments and contract
values between the Guaranteed Account and the Funds.
We invest our general assets in our discretion as allowed by Ohio law. We
allocate the investment income from our general assets to those contracts having
guaranteed values.
The amount of investment income allocated to the contracts varies from year to
year in our sole discretion. However, we guarantee that we will credit interest
at a rate of not less than 3% per year, compounded annually, to contract values
allocated to the Guaranteed Account. We may credit interest at a rate in excess
of 3%, but any such excess interest credit will be in our sole discretion.
We guarantee that, before annuity payments begin, the guaranteed value of a
contract will never be less than:
- the amount of purchase payments allocated to, and transfers into, the
Guaranteed Account, plus
- interest credited at the rate of 3% per year compounded annually, plus
- any additional excess interest we may credit to guaranteed values, minus
- any partial withdrawals, loans and transfers from the guaranteed values, minus
Form 8523
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<PAGE> 22
- any loan interest, state premium taxes, transfer fees, and the portion of the
$30 annual contract administration charge allocable to the Guaranteed Account.
No deductions are made from the Guaranteed Account for administrative expenses
or risk undertakings.
Other than pursuant to a DCA (scheduled transfer) or portfolio rebalancing
program, we may restrict transfers of your Guaranteed Account value during a
contract year to not more than 20% of that value as of the beginning of a
contract year (or $1,000, if greater). As provided by state law, we may defer
the payment of amounts to be withdrawn from the Guaranteed Account for up to six
months from the date we receive your written request for withdrawal.
OHIO NATIONAL LIFE EMPLOYEE DISCOUNT
We and our affiliated companies offer a credit on the purchase of contracts by
any of our employees, directors or retirees, or their spouse or the surviving
spouse of a deceased retiree, their minor children, or any of their children
ages 18 to 21 who is either (i) living in the purchaser's household or (ii) a
full-time college student being supported by the purchaser, or any of the
purchaser's minor grandchildren under the Uniform Gifts to Minors Act. This
credit counts as additional income under the contract. The amount of the credit
equals 3.2% of all purchase payments made in the first contract year and 5.5% of
purchase payments made in the second through sixth contract years. We credit the
Guaranteed Account in these amounts at the time the eligible person makes each
payment.
TEXAS STATE OPTIONAL RETIREMENT PROGRAM
Under the Texas State Optional Retirement Program (the "Program"), purchase
payments may be excluded from the gross income of state employees for federal
tax purposes to the extent that such purchase payments do not exceed the
exclusion allowance provided by the Code. The Attorney General of Texas has
interpreted the Program as prohibiting any participating state employee from
receiving the surrender value of a contract funding benefits under the Program
prior to termination of employment or the state employee's retirement, death or
total disability. Therefore, a participant in the Program may not make a
surrender or partial withdrawal until the first of these events occurs.
ANNUITY PERIOD
ANNUITY PAYOUT DATE
Annuity payments begin on the annuity payout date. You may select this date when
the contract is issued. It must be at least 30 days after the contract date. You
may change it from time to time so long as it is the first day of any month at
least 30 days after the date of such change. The contract restricts the annuity
payout date to not later than the first of the month following the annuitant's
90th birthday. This restriction may be modified by applicable state law or we
may agree to waive it.
The contracts include our guarantee (except for option 1(e) below) that we will
pay annuity payments for the lifetime of the annuitant (and any joint annuitant)
in accordance with the contract's annuity rates, no matter how long you live.
Other than in connection with annuity Option 1(e) described below, once annuity
payments begin, you may not surrender the contract for cash except that, upon
the death of the annuitant, the beneficiary may surrender the contract for the
commuted value of any remaining period-certain payments. You may make surrenders
and partial withdrawals from Option 1(e) at any time.
ANNUITY OPTIONS
You may elect one or more of the following annuity options. You may change the
election anytime before the annuity payout date.
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Option 1(a): Life Annuity with installment payments for the lifetime of the
annuitant. (The contract has no more value after the annuitant's
death).
Option 1(b): Life Annuity with installment payments guaranteed for five years
and then continuing during the remaining lifetime of the
annuitant.
Option 1(c): Life Annuity with installment payments guaranteed for ten years
and then continuing during the remaining lifetime of the
annuitant.
Option 1(d): Installment Refund Life Annuity with payments guaranteed for a
period certain and then continuing during the remaining lifetime
of the annuitant. The number of period-certain payments is equal
to the amount applied under this option divided by the amount of
the first payment.
Option 1(e): Installment Refund Annuity with payments guaranteed for a fixed
number (up to thirty) of years. This option is available for
variable annuity payments only. (Although the deduction for risk
undertakings is taken from annuity unit values, we have no
mortality risk during the annuity payout period under this
option.)
Option 2(a): Joint & Survivor Life Annuity with installment payments during
the lifetime of the annuitant and then continuing during the
lifetime of a contingent annuitant. (The contract has no more
value after the second annuitant's death.)
Option 2(b): Joint & Survivor Life Annuity with installment payments guaranteed
for ten years and then continuing during the remaining lifetime of
the annuitant or a contingent annuitant.
We may agree to other settlement options.
Unless you direct otherwise, we will apply the contract value as of the annuity
payout date to provide annuity payments pro-rata from each Fund in the same
proportion as the contract values immediately before the annuity payout date.
If no election is in effect on the annuity payout date, we will apply contract
value under Option 1(c) with the beneficiary as payee for any remaining
period-certain installments payable after the death of the annuitant. The
Pension Reform Act of 1974 might require certain contracts to provide a Joint
and Survivor Annuity. If the contingent annuitant is not related to the
annuitant, Options 2(a) and 2(b) are available only if we agree.
The Internal Revenue Service has not ruled on the tax treatment of a commutable
variable annuity. If you select Option 1(e), it is possible that the IRS could
determine that the entire value of the annuity is fully taxable at the time you
elect Option 1(e) or that variable annuity payments under this option should not
be taxed under the annuity rules (see Federal Tax Status). This could result in
your payments being fully taxable to you. Should the IRS so rule, we may have to
tax report up to the full value of the annuity as your taxable income.
DETERMINATION OF AMOUNT OF THE FIRST VARIABLE ANNUITY PAYMENT
To determine the first variable annuity payment we apply the contract value for
each Fund in accordance with the contract's settlement option tables. The rates
in those tables depend upon the annuitant's (and any contingent annuitant's) age
and sex and the option selected. The annuitant's sex is not a factor in
contracts issued to plans sponsored by employers subject to Title VII of the
Civil Rights Act of 1964 or similar state statutes. We determine the value to be
applied at the end of a valuation period (selected by us and uniformly applied)
not more than 10 valuation periods before the annuity payout date.
If the amount that would be applied under an option is less than $5,000, we will
pay the contract value to the annuitant in a single sum. If the first periodic
payment under any option would be less than $25, we may change the frequency of
payments so that the first payment is at least $25.
Form 8523
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ANNUITY UNITS AND VARIABLE PAYMENTS
After your first annuity payment, later variable annuity payments will vary to
reflect the investment performance of your Funds. The amount of each payment
depends on the number of your annuity units. To determine the number of annuity
units for each Fund, divide the dollar amount of the first annuity payment from
each Fund by the value that Fund's annuity unit. This number of annuity units
remains constant during the annuity payment period unless you transfer among
Funds.
The annuity unit value for each Fund was set at $10 for the valuation period
when the first variable annuity was calculated for these contracts. The annuity
unit value for each later valuation period equals the annuity unit value for the
immediately preceding valuation period multiplied by the net investment factor
(described on page 11) for such later valuation period and by a factor (0.999919
for a one-day valuation period) to neutralize the 3% assumed interest rate
discussed below.
The dollar amount of each later variable annuity payment equals your constant
number of annuity units for each Fund multiplied by the value of the annuity
unit for the valuation period.
The annuity rate tables contained in the contracts are based on the 1983(a)
Mortality Table Projected to 1996 under Scale G with compound interest at the
effective rate of 3% per year. A higher interest assumption would mean a higher
initial annuity payment but a more slowly rising series of subsequent annuity
payments if annuity unit values were increasing (or a more rapidly falling
series of subsequent annuity payments if annuity unit values were decreasing). A
lower interest assumption would have the opposite effect. If the actual net
investment rate were equal to the assumed interest rate, annuity payments would
stay level.
TRANSFERS DURING ANNUITY PAYOUT
After annuity payments have been made for at least 12 months, the annuitant can,
once each calendar quarter, change the Funds on which variable annuity payments
are based. On at least 30 days written notice our home office we will change
that portion of the periodic variable annuity payment as you direct to reflect
the investment results of different Funds. The annuity payment immediately after
a change will be the amount that would have been paid without the change. Later
payments will reflect the new mix of Funds.
OTHER CONTRACT PROVISIONS
ASSIGNMENT
Amounts payable in settlement of a contract may not be commuted, anticipated,
assigned or otherwise encumbered, or pledged as loan collateral to anyone other
than us. To the extent permitted by law, such amounts are not subject to any
legal process to pay any claims against an annuitant before annuity payments
begin. The owner of a tax-qualified contract may not, but the owner of a
non-tax-qualified contract may, collaterally assign the contract before the
annuity payout date. Ownership of a tax-qualified contract may not be
transferred except to:
- the annuitant,
- a trustee or successor trustee of a pension or profit-sharing trust which is
qualified under Section 401 of the Code,
- the employer of the annuitant provided that the contract after transfer is
maintained under the terms of a retirement plan qualified under Section 403(a)
of the Code for the benefit of the annuitant, or
- as otherwise permitted by laws and regulations governing plans for which the
contract may be issued.
REPORTS AND CONFIRMATIONS
Before the annuity payout date, we will send you quarterly statements showing
the number of units credited to the contract by Fund and the value of each unit
as of the end of the last quarter. In addition, as long as the contract remains
in effect, we will forward any periodic Fund reports.
Form 8523
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We will send you a written confirmation of your purchase payments, transfers and
withdrawals. For regularly recurring transactions, such as dollar cost averaging
and payroll deduction programs, we may confirm the transactions in a quarterly
report. Review your statements and confirmations to verify their accuracy. You
must report any error or inaccuracy to us within 30 days. Otherwise, we will
assume they are correct.
SUBSTITUTION FOR FUND SHARES
If investment in a Fund is no longer possible or we believe it is inappropriate
to the purposes of the contract, we may substitute one or more other funds.
Substitution may be made as to both existing investments and the investment of
future purchase payments. However, no substitution will be made until we receive
any necessary approval of the Securities and Exchange Commission. We may also
add other Funds as eligible investments of VAA.
CONTRACT OWNER INQUIRIES
Direct any questions to Ohio National Life, Variable Annuity Administration,
P.O. Box 2669, Cincinnati, Ohio 45201; telephone 1-800-366-6654 (8:30 a.m. to
4:30 p.m., Eastern time).
PERFORMANCE DATA
We may advertise performance data for the various Funds showing the percentage
change in unit values based on the performance of the applicable Fund over a
period of time (usually a calendar year). We determine the percentage change by
dividing the increase (or decrease) in value for the unit by the unit value at
the beginning of the period. This percent reflects the deduction of any
asset-based contract but does not reflect the deduction of any applicable
contract administration charge or surrender charge. The deduction of a contract
administration charge or surrender charge would reduce any percentage increase
or make greater any percentage decrease.
Advertising may also include average annual total return figures calculated as
shown in the Statement of Additional Information. The average annual total
return figures reflect the deduction of applicable contract administration
charges and surrender charges as well as applicable asset-based charges.
We may also distribute sales literature comparing separate account performance
to the Consumer Price Index or to such established market indexes as the Dow
Jones Industrial Average, the Standard & Poor's 500 Stock Index, IBC's Money
Fund Reports, Lehman Brothers Bond Indices, the Morgan Stanley Europe Australia
Far East Index, Morgan Stanley World Index, Russell 2000 Index, or other
variable annuity separate accounts or mutual funds with investment objectives
similar to those of the Funds.
FEDERAL TAX STATUS
The following discussion of federal income tax treatment of amounts received
under a variable annuity contract does not cover all situations or issues. It is
not intended as tax advice. Consult a qualified tax adviser to apply the law to
your circumstances. Tax laws can change, even for contracts that have already
been issued. Tax law revisions, with unfavorable consequences, could have
retroactive effect on previously issued contracts or on later voluntary
transactions in previously issued contracts.
We are taxed as a life insurance company under Subchapter L of the Internal
Revenue Code (the "Code"). Since the operations of VAA are a part of, and are
taxed with, our operations, VAA is not separately taxed as a "regulated
investment company" under Subchapter M of the Code.
As to tax-qualified contracts, the law does not now provide for payment of
federal income tax on dividend income or capital gains distributions from Fund
shares held in VAA or upon capital gains realized by VAA on redemption of Fund
shares. When a non-tax-qualified contract is issued in connection with a
deferred compensation plan or arrangement, all rights, discretions and powers
relative to the contract are vested in the employer and you must look only to
your employer for the payment of deferred compensation benefits. Generally,
Form 8523
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in that case, an annuitant will have no "investment in the contract" and amounts
received by you from your employer under a deferred compensation arrangement
will be taxable in full as ordinary income in the years you receive the
payments.
The income and gains within an annuity contract are generally tax deferred.
Within a tax-qualified plan, the plan itself provides tax deferral. Therefore,
the tax-deferred treatment otherwise available to an annuity contract is not a
factor to consider when purchasing an annuity within a tax-qualified plan or
arrangement.
The contracts are considered annuity contracts under Section 72 of the Code,
which generally provides for taxation of annuities. Under existing provisions of
the Code, any increase in the contract value is not taxable to you as the owner
or annuitant until you receive it, either in the form of annuity payments, as
contemplated by the contract, or in some other form of distribution. The owner
of a non-tax qualified contract must be a natural person for this purpose. With
certain exceptions, where the owner of a non-tax qualified contract is a
non-natural person (corporation, partnership or trust) any increase in the
accumulation value of the contract attributable to purchase payments made after
February 28, 1986 will be treated as ordinary income received or accrued by the
contract owner during the current tax year.
When annuity payments begin each payment is taxable under Section 72 of the Code
as ordinary income in the year of receipt if you have neither paid any portion
of the purchase payments nor previously been taxed on any portion of the
purchase payments. If any portion of the purchase payments has been paid from or
included in your taxable income, this aggregate amount will be considered your
"investment in the contract." You will be entitled to exclude from your taxable
income a portion of each annuity payment equal to your "investment in the
contract" divided by the period of expected annuity payments, determined by your
life expectancy and the form of annuity benefit. Once you recover your
"investment in the contract," all further annuity payments will be included in
your taxable income.
If you elect to receive the accumulated value in a single sum in lieu of annuity
payments, any amount you receive or withdraw in excess of the "investment in the
contract" will normally be taxed as ordinary income in the year received. A
partial withdrawal of contract values is taxable as income to the extent that
the accumulated value of the contract immediately before the payment exceeds the
"investment in the contract." Such a withdrawal is treated as a distribution of
earnings first and only second as a recovery of your "investment in the
contract." Any part of the value of the contract that you assign or pledge to
secure a loan will be taxed as if it had been a partial withdrawal and may be
subject to a penalty tax.
There is a penalty tax equal to 10% of any amount that must be included in gross
income for tax purposes. The penalty will not apply to a redemption that is:
- received on or after the taxpayer reaches age 59 1/2;
- made to a beneficiary on or after the death of the annuitant;
- attributable to the taxpayer's becoming disabled;
- made as a series of substantially equal periodic payments for the life of the
annuitant (or joint lives of the annuitant and beneficiary);
- from a contract that is a qualified funding asset for purposes of a structured
settlement;
- made under an annuity contract that is purchased with a single premium and
with an annuity payout date not later than a year from the purchase of the
annuity;
- incident to divorce, or
- taken from an IRA for a qualified first-time home purchase (up to $10,000) or
qualified education expenses.
If you elect not to have withholding apply to an early withdrawal or if an
insufficient amount is withheld, you may be responsible for payment of estimated
tax. You may also incur penalties under the estimated tax rules if the
Form 8523
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withholding and estimated tax payments are not sufficient. If you fail to
provide your taxpayer identification number, any payments under the contract
will automatically be subject to withholding.
TAX-DEFERRED ANNUITIES
Under the provisions of Section 403(b) of the Code, employees may exclude from
their gross income purchase payments made for annuity contracts purchased for
them by public educational institutions and certain tax-exempt organizations
which are described in Section 501(c)(3) of the Code. You may make this
exclusion to the extent that the aggregate purchase payments plus any other
amounts contributed to purchase the contract and toward benefits under qualified
retirement plans do not exceed your exclusion allowance as determined in
Sections 403(b) and 415 of the Code. Employee contributions are, however,
subject to social security (FICA) tax withholding. All amounts you receive under
a contract, either in the form of annuity payments or cash withdrawal, will be
taxed under Section 72 of the Code as ordinary income for the year received,
except for exclusion of any amounts representing "investment in the contract."
Under certain circumstances, amounts you receive may be used to make a "tax-free
rollover" into one of the types of individual retirement arrangements permitted
under the Code. Amounts you receive that are eligible for "tax-free rollover"
will be subject to an automatic 20% withholding unless you directly roll over
such amounts from the tax-deferred annuity to the individual retirement
arrangement.
With respect to earnings accrued and purchase payments made after December 31,
1988, for a salary reduction agreement under Section 403(b) of the Code,
distributions may be paid only when the employee:
- attains age 59 1/2,
- separates from the employer's service,
- dies,
- becomes disabled as defined in the Code, or
- incurs a financial hardship as defined in the Code.
In the case of hardship, cash distributions may not exceed the amount of your
purchase payments. These restrictions do not affect your right to transfer
investments among the Funds and do not limit the availability of transfers
between tax-deferred annuities.
QUALIFIED PENSION OR PROFIT-SHARING PLANS
Under present law, purchase payments made by an employer or trustee, for a plan
or trust qualified under Section 401(a) or 403(a) of the Code, are generally
excludable from the employees gross income. Any purchase payments made by the
employee, or which are considered taxable income to the employee in the year
such payments are made, constitute an "investment in the contract" under Section
72 of the Code for the employee's annuity benefits. Salary reduction payments to
a profit sharing plan qualifying under Section 401(k) of the Code are generally
excludable from the employee's gross income.
The Code requires plans to prohibit any distribution to a plan participant prior
to age 59 1/2, except in the event of death, total disability or separation from
service (special rules apply for plan terminations). Distributions must begin no
later than April 1 of the calendar year following the year in which the
participant reaches age 70 1/2. Premature distribution of benefits or
contributions in excess of those permitted by the Code may result in certain
penalties under the Code.
If an employee, or one or more of the beneficiaries, receives the total amounts
payable with respect to an employee within one taxable year after age 59 1/2 on
account of the employee's death or separation from service of the employer, any
amount received in excess of the employee's "investment in the contract" may be
taxed under special 5-year forward averaging rules. Five-year averaging will no
longer be available after 1999 except for certain grandfathered individuals. You
can elect to have that portion of a lump-sum distribution attributable to years
of
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participation prior to January 1, 1974 given capital gains treatment. The
percentage of pre-74 distribution subject to capital gains treatment decreases
as follows: 100%, 1987; 95%, 1988; 75%, 1989; 50%, 1990; and 25%, 1991. For tax
years 1992 and later no capital gains treatment is available (except that
taxpayers who were age 50 before 1986 may still elect capital gains treatment).
If you receive such a distribution you may be able to make a "tax-free rollover"
of the distribution less your "investment in the contract" into another
qualified plan in which you are a participant or into one of the types of
individual retirement arrangements permitted under the Code. Your surviving
spouse receiving such a distribution may be able to make a tax-free rollover to
one of the types of individual retirement arrangements permitted under the Code.
Amounts received that are eligible for "tax-free rollover" will be subject to an
automatic 20% withholding unless such amounts are directly rolled over to
another qualified plan or individual retirement arrangement.
INDIVIDUAL RETIREMENT ANNUITIES (IRA)
Section 408(b) of the Code provides that an individual may invest an amount up
to $2,000 per year of earned income in an IRA and claim it as a personal tax
deduction if such person is not an "active participant" in an employer
maintained qualified retirement plan or such person has adjusted gross income
which does not exceed the "applicable dollar limit." For a single taxpayer, the
applicable dollar limitation is $30,000, with the amount of IRA contribution
which may be deducted reduced proportionately for Adjusted Gross Income between
$30,000-$40,000. For married couples filing jointly, the applicable dollar
limitation is $50,000, with the amount of IRA contribution which may be deducted
reduced proportionately for Adjusted Gross Income between $50,000-$60,000. There
is no deduction allowed for IRA contributions when Adjusted Gross Income reaches
$40,000 for individuals and $60,000 for married couples filing jointly. In the
alternative, an individual otherwise qualified for an IRA may elect to
contribute to an IRA for the individual and for the individual's non-working
spouse, with the total deduction limited to $4,000.
You may make non-deductible IRA contributions to the extent they are ineligible
to make deductible IRA contributions. Any amount received from another qualified
plan (including another individual retirement arrangement) which is eligible as
a "tax-free rollover" may be invested in an IRA, and is not counted toward the
overall contribution limit. Earnings on nondeductible IRA contributions are not
subject to tax until they are withdrawn. The combined limit on designated
nondeductible and deductible contributions for a tax year is the lesser of 100%
of compensation or $2,000 ($4,000 in the case of an additional contribution to a
spousal IRA).
Generally, distributions (all or part) made prior to age 59 1/2 (except in the
case of death or disability) will result in a penalty tax of 10% plus ordinary
income tax treatment of the amount received. Additionally, there is an excise
tax of 6% of the amount contributed in excess of either the deductible limit or
nondeductible limit, as indicated above, if such amount is not withdrawn prior
to the filing of the income tax return for the year of contribution or applied
as an allowable contribution for a subsequent year. The excise tax will continue
to apply each year until the excess contribution is corrected. Distributions
after age 59 1/2 are treated as ordinary income at the time received.
Distributions must commence before April 1 following the year in which the
individual reaches age 70. A 50% nondeductible excise tax is imposed on the
excess in any tax year of the amount that should have been distributed over the
amount actually distributed.
Section 408A of the Code provides for a special type of IRA called a Roth IRA.
No tax deduction is allowed for contributions to a Roth IRA, but assets grow on
a tax-deferred basis. Under certain circumstances, withdrawals from a Roth IRA
can be excludable from income. Eligibility for a Roth IRA is based on adjusted
gross income and filing status. Special rules apply which allow traditional IRAs
to be rolled over or converted to a Roth IRA.
SIMPLIFIED EMPLOYEE PENSION PLANS (SEPPS)
Under Section 408 of the Code, employers may establish SEPPs for their
employees. Under these plans the employer may contribute on behalf of an
employee to an individual retirement account or annuity. The amount of the
contribution is excludable from the employee's income.
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Certain employees who participate in a SEPP will be entitled to elect to have
the employer make contributions to a SEPP on their behalf or to receive the
contributions in cash. If the employee elects to have contributions made on the
employee's behalf to a SEPP, it is not treated as current taxable income to the
employee. Elective deferrals under a SEPP are subject to an inflation-indexed
limit which is $10,000 for 1998. Salary-reduction SEPPs are available only if at
least 50% of the employees elect to have amounts contributed to the SEPP and if
the employer has 25 or fewer employees at all times during the preceding year.
New salary-reduction SEPPs may not be established after 1996.
An employee may also take a deduction for individual contributions to the IRA,
subject to the limits applicable to IRAs in general. Withdrawals from the IRAs
to which the employer contributes must be permitted. These withdrawals, however,
are subject to the general rules with respect to withdrawals from IRAs.
WITHHOLDING ON DISTRIBUTION
Distributions from tax-deferred annuities or qualified pension or profit sharing
plans that are eligible for "tax-free rollover" will be subject to an automatic
20% withholding unless such amounts are directly rolled over to an individual
retirement arrangement or another qualified plan. Federal income tax withholding
is required on annuity payments. However, recipients of annuity payments are
allowed to elect not to have the tax withheld. This election may be revoked at
any time and withholding would begin after that. If you do not give us your
taxpayer identification number any payments under the contract will
automatically be subject to withholding.
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APPENDIX A
IRA DISCLOSURE STATEMENT
This statement is designed to help you understand the requirements of federal
tax law which apply to your individual retirement annuity (IRA), your Roth IRA,
your simplified employee pension IRA (SEPP-IRA) for employer contributions, your
Savings Incentive Match Plan for Employees (SIMPLE) IRA, or to one you purchase
for your spouse. You can obtain more information regarding your IRA either from
your sales representative or from any district office of the Internal Revenue
Service.
FREE LOOK PERIOD
The annuity contract offered by this prospectus gives you the opportunity to
return the contract for a full refund within 10 days after it is delivered. This
is a more liberal provision than is required in connection with IRAs. To
exercise this "free-look" provision write or call the address shown below:
The Ohio National Life Insurance Company
Variable Annuity Administration
P. O. Box 2669
Cincinnati, Ohio 45201
Telephone: 1-800-366-6654 -- 8:30 a.m. - 4:30 p.m. (Eastern time zone)
ELIGIBILITY REQUIREMENTS
IRAs are intended for all persons with earned compensation whether or not they
are covered under other retirement programs. Additionally if you have a
non-working spouse (and you file a joint tax return), you may establish an IRA
on behalf of your non-working spouse. A working spouse may establish his or her
own IRA.
A divorced spouse receiving taxable alimony (and no other income) may also
establish an IRA.
CONTRIBUTIONS AND DEDUCTIONS
Contributions to your IRA will be deductible if you are not an "active
participant" in an employer maintained qualified retirement plan or you have
Adjusted Gross Income which does not exceed the "applicable dollar limit". IRA
(or SEPP-IRA) contributions must be made by no later than the time you file your
income tax return for that year. For a single taxpayer, the applicable dollar
limitation is $30,000, with the amount of IRA contribution which may be deducted
reduced proportionately for Adjusted Gross Income between $30,000-$40,000. For
married couples filing jointly, the applicable dollar limitation is $50,000,
with the amount of IRA contribution which may be deducted reduced
proportionately for Adjusted Gross Income between $50,000-$60,000. There is no
deduction allowed for IRA contributions when Adjusted Gross Income reaches
$40,000 for individuals and $60,000 for married couples filing jointly.
Contributions made by your employer to your SEPP-IRA are excludable from your
gross income for tax purposes in the calendar year for which the amount is
contributed. Certain employees who participate in a SEPP-IRA will be entitled to
elect to have their employer make contributions to their SEPP-IRA on their
behalf or to receive the contributions in cash. If the employee elects to have
contributions made on the employee's behalf to the SEPP, those funds are not
treated as current taxable income to the employee. Elective deferrals under a
SEPP-IRA are subject to an inflation-adjusted limit which is $10,000 for 1998.
Salary-reduction SEPP-IRAs (also called "SARSEPs") are available only if at
least 50% of the employees elect to have amounts contributed to the SEPP-IRA and
if the employer has 25 or fewer employees at all times during the preceding
year. New salary-reduction SEPPs may not be established after 1996.
The IRA maximum annual contribution and your tax deduction is limited to the
lesser of: (1) $2,000 or (2) 100% of your earned compensation. Contributions in
excess of the deduction limits may be subject to penalty. See below.
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Under a SEPP-IRA agreement, the maximum annual contribution which your employer
may make on your behalf to a SEPP-IRA contract which is excludable from your
income is the lesser of 15% of your salary or $24,000. An employee who is a
participant in a SEPP-IRA agreement may make after-tax contributions to the
SEPP-IRA contract, subject to the contribution limits applicable to IRAs in
general. Those employee contributions will be deductible subject to the
deductibility rules described above.
The maximum tax deductible annual contribution that a divorced spouse with no
other income may make to an IRA is the lesser of (1) $2,000 or (2) 100% of
taxable alimony.
If you or your employer should contribute more than the maximum contribution
amount to your IRA or SEPP-IRA, the excess amount will be considered an "excess
contribution". You are permitted to withdraw an excess contribution from your
IRA or SEPP-IRA before your tax filing date without adverse tax consequences.
If, however, you fail to withdraw any such excess contribution before your tax
filing date, a 6% excise tax will be imposed on the excess for the tax year of
contribution.
Once the 6% excise tax has been imposed, an additional 6% penalty for the
following tax year can be avoided if the excess is (1) withdrawn before the end
of the following year, or (2) treated as a current contribution for the
following year. (See Premature Distributions for penalties imposed on withdrawal
when the contribution exceeds $2,000).
IRA FOR NON-WORKING SPOUSE
If you establish an IRA for yourself, you may also be eligible to establish an
IRA for your "non-working" spouse. In order to be eligible to establish such a
spousal IRA, you must file a joint tax return with your spouse and if your
non-working spouse has compensation, his/her compensation must be less than your
compensation for the year. Contributions of up to $2,000 each may be made to
your IRA and the spousal IRA if the combined compensation of you and your spouse
is at least equal to the amount contributed. If requirements for deductibility
(including income levels) are met, you will be able to deduct an amount equal to
the least of (i) the amount contributed to the IRA's; (ii) $4,000; or (iii) 100%
of your combined gross income.
Contributions in excess of the contribution limits may be subject to penalty.
See above under "Contributions and Deductions". If you contribute more than the
allowable amount, the excess portion will be considered an excess contribution.
The rules for correcting it are the same as discussed above for regular IRAs.
Other than the items mentioned in this section, all of the requirements
generally applicable to IRAs are also applicable to IRAs established for
non-working spouses.
ROLLOVER CONTRIBUTION
Once every year, you are permitted to withdraw any portion of the value of your
IRA or SEPP-IRA and reinvest it in another IRA or bond. Withdrawals may also be
made from other IRAs and contributed to this contract. This transfer of funds
from one IRA to another is called a "rollover" IRA. To qualify as a rollover
contribution, the entire portion of the withdrawal must be reinvested in another
IRA within 60 days after the date it is received. You will not be allowed a
tax-deduction for the amount of any rollover contribution.
A similar type of rollover to an IRA can be made with the proceeds of a
qualified distribution from a qualified retirement plan or tax-sheltered
annuity. Properly made, such a distribution will not be taxable until you
receive payments from the IRA created with it. Unless you were a self-employed
participant in the distributing plan, you may later roll over such a
contribution to another qualified retirement plan as long as you have not mixed
it with IRA (or SEPP-IRA) contributions you have deducted from your income. (You
may roll less than all of a qualified distribution into an IRA, but any part of
it not rolled over will be currently includable in your income without any
capital gains treatment.)
Form 8523
27
<PAGE> 32
PREMATURE DISTRIBUTIONS
At no time can your interest in your IRA or SEPP-IRA be forfeited. To insure
that your contributions will be used for your retirement, the federal tax law
does not permit you to use your IRA or SEPP-IRA as security for a loan.
Furthermore, as a general rule, you may not sell or assign your interest in your
IRA or SEPP-IRA to anyone. Use of an IRA (or SEPP-IRA) as security or assignment
of it to another will invalidate the entire annuity. It then will be includable
in your income in the year it is invalidated and will be subject to a 10%
penalty tax if you are not at least age 59 1/2 or totally disabled. (You may,
however, assign your IRA or SEPP-IRA without penalty to your former spouse in
accordance with the terms of a divorce decree.)
You may surrender any portion of the value of your IRA (or SEPP-IRA). In the
case of a partial surrender which does not qualify as a rollover, the amount
withdrawn will be includable in your income and subject to the 10% penalty if
you are not at least age or 59 1/2 totally disabled unless you comply with
special rules requiring distributions to be made at least annually over your
life expectancy.
The 10% penalty tax does not apply to the withdrawal of an excess contribution
as long as the excess is withdrawn before the due date of your tax return.
Withdrawals of excess contributions after the due date of your tax return will
generally be subject to the 10% penalty unless the excess contribution results
from erroneous information from a plan trustee making an excess rollover
contribution or unless you are over age 59 1/2 or are disabled.
DISTRIBUTION AT RETIREMENT
Once you have attained age 59 1/2 (or have become totally disabled), you may
elect to receive a distribution of your IRA (or SEPP-IRA) regardless of when you
actually retire. You may elect to receive the distribution in either one sum or
under any one of the periodic payment options available under the contract. The
distributions from your IRA under any one of the periodic payment options or in
one sum will be treated as ordinary income as you receive them.
INADEQUATE DISTRIBUTIONS -- 50% TAX
Your IRA or SEPP-IRA is intended to provide retirement benefits over your
lifetime. Thus, federal law requires that you either (1) receive a lump-sum
distribution of your IRA by April 1 of the year following the year in which you
attain age 70 or (2) start to receive periodic payments by that date. If you
elect to receive periodic payments, those payments must be sufficient to pay out
the entire value of your IRA during your life expectancy (or over the joint life
expectancies of you and your spouse). If the payments are not sufficient to meet
these requirements, an excise tax of 50% will be imposed on the amount of any
underpayment.
DEATH BENEFITS
If you, (or your surviving spouse) die before receiving the entire value of your
IRA (or SEPP-IRA), the remaining interest must be distributed to your
beneficiary (or your surviving spouse's beneficiary) in one lump-sum within 5
years of death, or applied to purchase an immediate annuity for the beneficiary.
This annuity must be payable over the life expectancy of the beneficiary
beginning within one year after your or your spouse's death. If your spouse is
the designated beneficiary, he or she is treated as the owner of the IRA. If
minimum required distributions have begun, the entire amount must be distributed
at least as rapidly as if the owner had survived. A distribution of the balance
of your IRA upon your death will not be considered a gift for federal tax
purposes, but will be included in your gross estate for purposes of federal
estate taxes.
ROTH IRAS
Section 408A of the Code permits eligible individuals to contribute to a type of
IRA known as a "Roth IRA." Contributions may be made to a Roth IRA by taxpayers
with adjusted gross incomes of less than $160,000 for married individuals filing
jointly and less than $100,000 for single individuals. Married individuals
filing separately are not eligible to contribute to a Roth IRA. The maximum
amount of contributions allowable for any
Form 8523
28
<PAGE> 33
taxable year to all Roth IRAs maintained by an individual is generally the
lesser of $2,000 and 100% of compensation for that year (the $2,000 limit is
phased out for incomes between $150,000 and $160,000 for married and between
$95,000 and $110,000 for singles). The contribution limit is reduced by the
amount of any contributions made to a non-Roth IRA. Contributions to a Roth IRA
are not deductible.
For taxpayers with adjusted gross income of $100,000 or less, all or part of
amounts in a non-Roth IRA may be converted, transferred or rolled over to a Roth
IRA. Some or all of the IRA value will typically be includable in the taxpayer's
gross income. If such a rollover, transfer or conversion occurred before 1/1/99,
the portion of the amount includable in gross income must be included in income
ratably over the next four years beginning with the year in which the
transaction occurred. Provided a rollover contribution meets the requirements
for IRAs under Section 408(d)(3) of the Code, a rollover may be made from a Roth
IRA to another Roth IRA.
UNDER SOME CIRCUMSTANCES, IT MAY NOT BE ADVISABLE TO ROLL OVER, TRANSFER OR
CONVERT ALL OR PART OF A NON-ROTH IRA TO A ROTH IRA. PERSONS CONSIDERING A
ROLLOVER, TRANSFER OR CONVERSION SHOULD CONSULT THEIR OWN TAX ADVISOR.
"Qualified distributions" from a Roth IRA are excludable from gross income. A
"qualified distribution" is a distribution that satisfies two requirements: (1)
the distribution must be made (a) after the owner of the IRA attains age 59 1/2;
(b) after the owner's death; (c) due to the owner's disability; or (d) for a
qualified first time homebuyer distribution within the meaning of Section
72(t)(2)(F) of the Code; and (2) the distribution must be made in the year that
is at least five years after the first year for which a contribution was made to
any Roth IRA established for the owner or five years after a rollover, transfer
or conversion was made from a non-Roth IRA to a Roth IRA. Distributions from a
Roth IRA that are not qualified distributions will be treated as made first from
contributions and then from earnings, and taxed generally in the same manner as
distributions from a non-Roth IRA.
Distributions from a Roth IRA need not commence at age 70 1/2. However, if the
owner dies before the entire interest in a Roth IRA is distributed, any
remaining interest in the contract must be distributed by December 31 of the
calendar year containing the fifth anniversary of the owner's death subject to
certain exceptions.
PROTOTYPE STATUS
The Internal Revenue Service has been requested to review the format of your
SEPP, and to issue an opinion letter to Ohio National Life stating that your IRA
qualifies as a prototype SEPP.
REPORTING TO THE IRS
Whenever you are liable for one of the penalty taxes discussed above (6% for
excess contributions, 10% for premature distributions or 50% for underpayments),
you must file Form 5329 with the Internal Revenue Service. The form is to be
attached to your federal income tax return for the tax year in which the penalty
applies. Normal contributions and distributions must be shown on your income tax
return for the year to which they relate.
Form 8523
29
<PAGE> 34
ILLUSTRATION OF IRA FIXED ACCUMULATIONS
<TABLE>
<CAPTION>
AGE 60 AGE 65 AGE 70
GUARANTEED GUARANTEED GUARANTEED
SURRENDER VALUE SURRENDER VALUE SURRENDER VALUE
----------------------------- ----------------------------- -----------------------------
$2,000 $2,000 $2,000
$1,000 ONE TIME $1,000 ONE TIME $1,000 ONE TIME
CONTRACT ANNUAL LUMP SUM ANNUAL LUMP SUM ANNUAL LUMP SUM
ANNIVERSARY CONTRIBUTIONS CONTRIBUTION CONTRIBUTIONS CONTRIBUTION CONTRIBUTIONS CONTRIBUTION
----------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 925.35 $ 2,027.45 $ 925.35 $ 2,027.45 $ 925.35 $ 2,027.45
2 1,878.46 2,055.72 1,878.46 2,055.72 1,878.46 2,055.72
3 2,870.01 2,083.76 2,870.01 2,083.76 2,870.01 2,083.76
4 3,901.83 2,111.91 3,901.83 2,111.91 3,901.83 2,111.91
5 4,975.45 2,140.16 4,975.45 2,104.16 4,975.45 2,140.16
6 6,102.14 2,166.24 6,102.14 2,166.24 6,102.14 2,166.24
7 7,276.08 2,194.24 7,276.08 2,194.24 7,276.08 2,194.24
8 8,497.12 2,222.31 8,497.12 2,222.31 8,497.12 2,222.31
9 9,757.56 2,253.98 9,757.56 2,253.98 9,757.56 2,253.98
10 11,055.81 2,286.60 11,055.81 2,286.60 11,055.81 2,286.60
15 18,155.17 2,464.97 18,155.17 2,464.97 18,155.17 2,464.97
20 26,385.27 2,671.76 26,385.27 2,671.76 26,385.27 2,671.76
25 35,926.22 2,911.48 35,926.22 2,911.48 35,926.22 2,911.48
30 46,986.79 3,189.39 46,986.79 3,189.39 46,986.79 3,189.39
35 59,809.02 3,511.55 59,809.02 3,511.55 59,809.02 3,511.55
40 74,673.50 3,885.03 74,673.50 3,885.03 74,673.50 3,885.03
45 91,905.51 4,318.00 91,905.51 4,318.00 91,905.51 4,318.00
50 111,882.13 4,819.92 111,882.13 4,819.92 111,882.13 4,819.92
55 135,040.51 5,401.79 135,040.51 5,401.79 135,040.51 5,401.79
60 161,887.42 6,076.34 161,887.42 6,076.34 161,887.42 6,076.34
65 193,010.34 6,858.32 193,010.34 6,858.32
70 229,090.34 7,764.85
</TABLE>
- Guaranteed Interest Rate: 3.00% is applicable to each contract anniversary.
- The Surrender Value is the Accumulation Values less the Contingent Deferred
Sales Charge.
Form 8523
30
<PAGE> 35
STATEMENT OF ADDITIONAL INFORMATION CONTENTS
<TABLE>
<S> <C>
Custodian
Independent Certified Public Accountants
Underwriter
Calculation of Money Market Subaccount Yield
Total Return
Loans under Tax-Sheltered Annuities
Financial Statements for VAA and Ohio National Life
</TABLE>
Form 8523
31
<PAGE> 36
PROSPECTUS
FLEXIBLE PURCHASE PAYMENT
INDIVIDUAL VARIABLE ANNUITY CONTRACTS
OHIO NATIONAL VARIABLE ACCOUNT A
THE OHIO NATIONAL LIFE INSURANCE COMPANY
One Financial Way
Montgomery, Ohio 45242
Telephone (800) 667-3078
This prospectus offers a variable annuity contract allowing you to accumulate
values and paying you benefits on a variable and/or fixed basis.
Variable annuities provide contract values and lifetime annuity payments that
vary with the investment results of the Funds you choose. You cannot be sure
that the contract value or annuity payments will equal or exceed your purchase
payments.
The variable annuity contracts are designed for:
- annuity purchase plans adopted by public school systems and certain tax-exempt
organizations described in Section 501(c)(3) of the Internal Revenue Code (the
"Code"), qualifying for tax-deferred treatment pursuant to Section 403(b) of
the Code,
- other employee pension or profit-sharing trusts or plans qualifying for
tax-deferred treatment under Section 401(a), 401(k) or 403(a) of the Code,
- individual retirement annuities qualifying for tax-deferred treatment under
Section 408 or 408A of the Code,
- state and municipal deferred compensation plans and
- non-tax-qualified retirement plans.
The minimum initial purchase payment is $10,000. You may make additional
payments of at least $500 at any time ($300 for payroll deduction plans). We may
limit your total purchase payments to $1,500,000.
You may direct the allocation of your purchase payments to one or more (but not
more than 10) subaccounts of Ohio National Variable Account A ("VAA") and/or the
Guaranteed Account. VAA is a separate account of The Ohio National Life
Insurance Company. The assets of VAA are invested in shares of the Funds. The
Funds are portfolios of Ohio National Fund, Inc., the Dow Target Variable Fund
LLC, Goldman Sachs Variable Insurance Trust, Janus Aspen Series, J.P. Morgan
Series Trust II, Lazard Retirement Series, Inc., PBHG Insurance Series Fund,
Inc., The Prudential Series Fund, Inc., Salomon Brothers Variable Series Funds
Inc, Strong Variable Insurance Funds, Inc. and Variable Insurance Products Fund
(Fidelity). See page 2 for the list of available Funds. See also the
accompanying prospectuses of the Funds. The Fund prospectuses might also contain
information about funds that are not available for these contracts.
You may withdraw all or part of the contract's value before annuity payments
begin. You might incur federal income tax penalties for these early withdrawals.
Your exercise of contract rights may be subject to the terms of your qualified
employee trust or annuity plan. This prospectus contains no information
concerning your trust or plan.
You may revoke the contract, without penalty, within 10 days of receiving it (or
a longer period if required by state law).
KEEP THIS PROSPECTUS FOR FUTURE REFERENCE. IT SETS FORTH THE INFORMATION ABOUT
VAA AND THE VARIABLE ANNUITY CONTRACTS THAT YOU SHOULD KNOW BEFORE INVESTING.
ADDITIONAL INFORMATION ABOUT VAA HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION IN A STATEMENT OF ADDITIONAL INFORMATION DATED FEBRUARY , 2001.
WE HAVE INCORPORATED THE STATEMENT OF ADDITIONAL INFORMATION BY REFERENCE. IT IS
AVAILABLE UPON REQUEST AND WITHOUT CHARGE BY WRITING OR CALLING US AT THE ABOVE
ADDRESS. THE TABLE OF CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION IS ON
THE BACK PAGE OF THIS PROSPECTUS.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS PROSPECTUS SHOULD BE
ACCOMPANIED BY THE CURRENT FUND PROSPECTUSES.
FEBRUARY , 2001
Form 8902
<PAGE> 37
TABLE OF CONTENTS
<TABLE>
<S> <C>
Available Funds.......................... 2
Fee Table................................ 4
Financial Statements................... 8
Accumulation Unit Values................. 8
Ohio National Life..................... 10
Ohio National Variable Account A....... 10
The Funds.............................. 10
Mixed and Shared Funding............... 11
Voting Rights.......................... 11
Distribution of Variable Annuity
Contracts.............................. 12
Deductions and Expenses.................. 12
Sales Charge........................... 12
Contract Administration Charge......... 12
Deduction for Administrative
Expenses............................ 12
Deduction for Risk Undertakings........ 12
Transfer Fee........................... 13
Deduction for State Premium Tax........ 13
Fund Expenses.......................... 13
Description of Variable Annuity
Contracts.............................. 13
10-Day Free Look....................... 13
Accumulation Period...................... 13
Purchase Payments...................... 13
Accumulation Units..................... 13
Crediting Accumulation Units........... 13
Allocation of Purchase Payments........ 14
Accumulation Unit Value and
Accumulation Value.................. 14
Net Investment Factor.................. 14
Surrender and Partial Withdrawal....... 14
Transfers among Subaccounts............ 15
TeleAccess............................. 15
Scheduled Transfers (Dollar Cost
Averaging).......................... 15
Portfolio Rebalancing.................. 16
Death Benefit.......................... 16
Guaranteed Account..................... 17
Ohio National Life Employee Discount... 18
Texas State Optional Retirement
Program............................. 18
Annuity Period........................... 18
Annuity Payout Date.................... 18
Annuity Options........................ 18
Determination of Amount of the First
Variable Annuity Payment............ 19
Annuity Units and Variable Payments.... 19
Transfers During Annuity Payout........ 20
Other Contract Provisions................ 20
Assignment............................. 20
Reports and Confirmations.............. 20
Substitution for Fund Shares........... 21
Contract Owner Inquiries................. 21
Performance Data....................... 21
Federal Tax Status....................... 21
Tax-Deferred Annuities................. 22
Qualified Pension or Profit-Sharing
Plans............................... 23
Individual Retirement Annuities
(IRA)............................... 24
Simplified Employee Pension Plans
(SEPPs)............................. 24
Withholding on Distribution............ 25
IRA Disclosure Statement................. 26
Free Look Period....................... 26
Eligibility Requirements............... 26
Contributions and Deductions........... 26
IRA for Non-working Spouse............. 27
Rollover Contribution.................. 27
Premature Distributions................ 28
Distribution at Retirement............. 28
Inadequate Distributions -- 50% Tax.... 28
Death Benefits......................... 28
Roth IRAs.............................. 28
Prototype Status....................... 29
Reporting to the IRS................... 29
Illustration of IRA Fixed
Accumulations.......................... 30
Statement of Additional Information
Contents............................... 31
</TABLE>
AVAILABLE FUNDS
<TABLE>
<S> <C>
OHIO NATIONAL FUND, INC. INVESTMENT ADVISER (SUBADVISER)
Firstar Growth & Income Portfolio (Firstar Investment Research & Management
Co.)
Strategic Income Portfolio (Firstar Investment Research & Management
Co.)
Relative Value Portfolio (Firstar Investment Research & Management
Co.)
Money Market Portfolio Ohio National Investments, Inc.
Equity Portfolio (Legg Mason Funds Management, Inc.)
Bond Portfolio Ohio National Investments, Inc.
Omni Portfolio (a flexible portfolio fund) Ohio National Investments, Inc.
S&P 500 Index Portfolio Ohio National Investments, Inc.
International Portfolio (Federated Global Investment Management
Corp.)
International Small Company Portfolio (Federated Global Investment Management
Corp.)
Capital Appreciation Portfolio (Jennison Associates LLC)
Small Cap Portfolio (Founders Asset Management LLC)
Aggressive Growth Portfolio (Janus Capital Corporation)
Growth & Income Portfolio (RS Investment Management Co. LLC)
</TABLE>
Form 8902
2
<PAGE> 38
<TABLE>
<S> <C>
Capital Growth Portfolio (RS Investment Management Co. LLC)
High Income Bond Portfolio (Federated Investment Counseling)
Equity Income Portfolio (Federated Investment Counseling)
Blue Chip Portfolio (Federated Investment Counseling)
Core Growth Portfolio (Pilgrim Baxter & Associates, Ltd.)
Nasdaq-100 Index Portfolio Ohio National Investments, Inc.
THE DOW(SM) TARGET VARIABLE FUND LLC
The Dow(SM) Target 10 Portfolios (First Trust Advisors L.P.)
The Dow(SM) Target 5 Portfolios (First Trust Advisors L.P.)
GOLDMAN SACHS VARIABLE INSURANCE TRUST
Goldman Sachs Growth and Income Fund Goldman Sachs Asset Management
Goldman Sachs CORE U.S. Equity Fund Goldman Sachs Asset Management
Goldman Sachs Capital Growth Fund Goldman Sachs Asset Management
Goldman Sachs Global Income Fund Goldman Sachs Asset Management
International
JANUS ASPEN SERIES (SERVICE SHARES)
Growth Portfolio Janus Capital Corporation
International Growth Portfolio Janus Capital Corporation
Worldwide Growth Portfolio Janus Capital Corporation
Balanced Portfolio Janus Capital Corporation
J.P. MORGAN SERIES TRUST II
J.P. Morgan Small Company Portfolio J.P. Morgan Investment Management Inc.
LAZARD RETIREMENT SERIES, INC.
Small Cap Portfolio Lazard Asset Management
Emerging Markets Portfolio Lazard Asset Management
MITCHELL HUTCHINS SERIES TRUST
Growth & Income Portfolio Mitchell Hutchins Asset Management Inc.
Tactical Allocation Portfolio Mitchell Hutchins Asset Management Inc.
PBHG INSURANCE SERIES FUND, INC.
PBHG Technology & Communications Portfolio Pilgrim Baxter & Associates, Ltd.
THE PRUDENTIAL SERIES FUND, INC.
Prudential Jennison Portfolio (Jennison Associates LLC)
20/20 Focus Portfolio Prudential Investment Corporation
SALOMON BROTHERS VARIABLE SERIES FUNDS INC
Capital Fund Salomon Brothers Asset Management Inc
Total Return Fund Salomon Brothers Asset Management Inc
Investors Fund (a capital growth fund) Salomon Brothers Asset Management Inc
STRONG VARIABLE INSURANCE FUNDS, INC.
Strong Mid Cap Growth Fund II Strong Capital Management, Inc.
Strong Opportunity Fund II
(a mid cap/ small cap fund) Strong Capital Management, Inc.
Strong Schafer Value Fund II Strong Capital Management, Inc.
VARIABLE INSURANCE PRODUCTS FUND
SERVICE CLASS 2 (FIDELITY)
VIP Contrafund(R) Portfolio Fidelity Management & Research Company
VIP Mid Cap Portfolio Fidelity Management & Research Company
VIP Growth Portfolio Fidelity Management & Research Company
</TABLE>
Form 8902
3
<PAGE> 39
FEE TABLE
<TABLE>
<CAPTION>
CONTRACTOWNER TRANSACTION EXPENSES
----------------------------------
<S> <C>
Sales Load None
Exchange (transfer) Fee $10 (currently no charge for the first 12
transfers each contract year)
Annual Contract Fee $30 (no fee if contract value exceeds $50,000)
</TABLE>
<TABLE>
<S> <C>
VAA ANNUAL EXPENSES (as a percentage of average account
value)
Mortality and Expense Risk Fees*** 1.25%
Account Fees and Expenses 0.25%
-----
Total VAA Annual Expenses (without optional added death
benefits) 1.50%
Optional increasing death benefit 0.25%
Optional enhanced death benefit 0.30%
-----
Total VAA Annual Expenses with both added death benefits 2.05%
</TABLE>
***The Mortality and Expense Risk fees may be changed at any time, but may not
be increased to more than 1.25%.
Neither the table nor the examples reflect any premium taxes that may apply to a
contract. These currently range from 0% to 3.5%. For further details, see
Deduction for State Premium Tax.
If you choose an optional increasing death benefit, we may charge up to 0.25% of
the death benefit amount. If you choose the optional enhanced death benefit, we
may also charge up to 0.30% (or up to 0.85% if you are now age 71 to 80) of the
average account value. See Death Benefit for details.
FUND ANNUAL EXPENSES (as a percentage of the Fund average net assets)
<TABLE>
<CAPTION>
TOTAL FUND
EXPENSES TOTAL TOTAL FUND
WITHOUT WAIVERS EXPENSES
MANAGEMENT OTHER WAIVERS OR AND WITH WAIVERS
FEES EXPENSES REDUCTIONS REDUCTIONS* OR REDUCTIONS
---------- --------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
OHIO NATIONAL FUND, INC.:
Firstar Growth & Income 0.90% 0.49% 1.39% 0.00% 1.39%
Strategic Income 0.80% 0.47% 1.27% 0.00% 1.27%
Relative Value 0.90% 0.16% 1.06% 0.00% 1.06%
Money Market* 0.30% 0.11% 0.41% 0.05% 0.36%
Equity 0.80% 0.12% 0.92% 0.00% 0.92%
Bond 0.60% 0.17% 0.77% 0.00% 0.77%
Omni 0.54% 0.13% 0.67% 0.00% 0.67%
S&P 500 Index 0.38% 0.11% 0.49% 0.00% 0.49%
International* 0.90% 0.36% 1.26% 0.05% 1.21%
International Small Company 1.00% 1.06% 2.06% 0.00% 2.06%
Capital Appreciation 0.80% 0.15% 0.95% 0.00% 0.95%
Small Cap 0.80% 0.09% 0.89% 0.00% 0.89%
Aggressive Growth 0.80% 0.15% 0.95% 0.00% 0.95%
Growth & Income 0.85% 0.10% 0.95% 0.00% 0.95%
Capital Growth 0.90% 0.19% 1.09% 0.00% 1.09%
High Income Bond 0.75% 0.38% 1.13% 0.00% 1.13%
Equity Income 0.75% 0.53% 1.28% 0.00% 1.28%
Blue Chip 0.90% 0.45% 1.35% 0.00% 1.35%
Core Growth 0.95% 0.11% 1.06% 0.00% 1.06%
Nasdaq-100 Index** 0.75% 0.20% 0.95% 0.00% 0.95%
</TABLE>
Form 8902
4
<PAGE> 40
<TABLE>
<CAPTION>
TOTAL FUND
EXPENSES TOTAL TOTAL FUND
WITHOUT WAIVERS EXPENSES
MANAGEMENT OTHER WAIVERS OR AND WITH WAIVERS
FEES EXPENSES REDUCTIONS REDUCTIONS* OR REDUCTIONS
---------- --------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
DOW TARGET VARIABLE FUND LLC:
Dow Target 10* 0.60% 0.64% 1.24% 0.21% 1.03%
Dow Target 5* 0.60% 2.54% 3.14% 2.27% 0.87%
GOLDMAN SACHS VARIABLE INSURANCE TRUST:
Goldman Sachs Growth and Income* 0.75% 0.47% 1.22% 0.22% 1.00%
Goldman Sachs CORE U.S. Equity 0.70% 0.20% 0.90% 0.00% 0.90%
Goldman Sachs Capital Growth* 0.75% 0.94% 1.69% 0.69% 1.00%
Goldman Sachs Global Income* 0.90% 1.78% 2.68% 1.53% 1.15%
JANUS ASPEN SERIES (SERVICE SHARES):
Growth** 0.65% 0.27% 0.92% 0.00% 0.92%
International Growth** 0.65% 0.36% 1.01% 0.00% 1.01%
Worldwide Growth** 0.65% 0.30% 0.95% 0.00% 0.95%
Balanced** 0.65% 0.27% 0.92% 0.00% 0.92%
J.P. MORGAN SERIES TRUST II:
J.P. Morgan Small Company* 0.60% 1.97% 2.57% 1.42% 1.15%
LAZARD RETIREMENT SERIES, INC.:
Small Cap* 0.75% 6.56% 7.31% 6.06% 1.25%
Emerging Markets* 1.00% 8.59% 9.59% 7.99% 1.60%
MITCHELL HUTCHINS SERIES TRUST:
Growth & Income 0.70% 0.78% 1.48% 0.00% 1.48%
Tactical Allocation 0.50% 0.49% 0.99% 0.00% 0.99%
PBHG INSURANCE SERIES FUND, INC.:
PBHG Technology & Communications 0.85% 0.24% 1.09% 0.00% 1.09%
THE PRUDENTIAL SERIES FUND, INC.:
Prudential Jennison 0.60% 0.43% 1.03% 0.00% 1.03%
20/20 Focus 0.75% 0.74% 1.49% 0.00% 1.49%
SALOMON BROTHERS VARIABLE SERIES FUNDS INC:
Capital* 0.85% 1.14% 1.99% 0.99% 1.00%
Total Return* 0.80% 0.85% 1.65% 0.65% 1.00%
Investors* 0.70% 0.45% 1.15% 0.17% 0.98%
STRONG VARIABLE INSURANCE FUNDS, INC.:
Strong Mid Cap Growth II* 1.00% 0.17% 1.17% 0.02 1.15%
Strong Opportunity II 1.00% 0.14% 1.14% 0.00% 1.14%
Strong Schafer Value II 1.00% 0.57% 1.57% 0.37% 1.20%
VARIABLE INSURANCE PRODUCTS FUND (FIDELITY):
VIP Contrafund 0.58% 0.37% 0.95% 0.00% 0.95%
VIP Mid Cap 0.57% 0.68% 1.25% 0.00% 1.25%
VIP Growth 0.58% 0.35% 0.93% 0.00% 0.93%
</TABLE>
Form 8902
5
<PAGE> 41
EXAMPLE -- You would pay the following aggregate expenses on a $1,000 investment
in each Fund, assuming a 5% annual return:
<TABLE>
<CAPTION>
1 3 5 10
YEAR YEARS YEARS YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
OHIO NATIONAL FUND, INC.:
Firstar Growth & Income $35 $106 $179 $372
Strategic Income 33 102 173 361
Relative Value 31 96 163 342
Money Market* 24 75 129 275
Equity 30 92 156 329
Bond 29 87 149 315
Omni 28 84 144 305
S&P 500 Index 26 79 135 288
International * 33 100 170 356
International Small Company 41 125 210 430
Capital Appreciation 30 93 158 332
Small Cap 30 91 155 326
Aggressive Growth 30 93 158 332
Growth & Income 30 93 158 332
Capital Growth 32 97 164 345
High Income Bond 32 98 166 348
Equity Income 34 102 174 362
Blue Chip 34 104 177 368
Core Growth 31 96 163 342
Nasdaq-100 Index** 30 93 158 332
DOW TARGET VARIABLE FUND LLC:
Dow Target 10* 31 95 162 339
Dow Target 5* 30 90 154 324
GOLDMAN SACHS VARIABLE INSURANCE TRUST:
Goldman Sachs Growth and Income* 31 94 160 336
Goldman Sachs CORE U.S. Equity 30 91 155 327
Goldman Sachs Capital Growth* 31 94 160 336
Goldman Sachs Global Income* 32 99 167 350
JANUS ASPEN SERIES (SERVICE SHARES):
Growth** 30 92 156 329
International Growth** 31 95 161 337
Worldwide Growth** 30 93 158 332
Balanced** 30 92 156 329
J.P. MORGAN SERIES TRUST II:
J.P. Morgan Small Company* 32 99 167 350
LAZARD RETIREMENT SERIES, INC.:
Small Cap* 33 102 172 359
Emerging Markets* 37 112 189 391
MITCHELL HUTCHINS SERIES TRUST:
Growth & Income 36 108 183 380
Tactical Allocation 31 94 160 336
PBHG INSURANCE SERIES FUND, INC.:
PBHG Technology & Communications 32 97 164 345
THE PRUDENTIAL SERIES FUND, INC.:
Prudential Jennison 31 95 162 339
20/20 Focus 36 109 184 381
</TABLE>
Form 8902
6
<PAGE> 42
<TABLE>
<CAPTION>
1 3 5 10
YEAR YEARS YEARS YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
SALOMON BROTHERS VARIABLE SERIES FUNDS INC:
Capital* $39 $119 $200 $412
Total Return* 31 94 160 336
Investors* 31 94 159 335
STRONG VARIABLE INSURANCE FUNDS, INC.:
Strong Mid Cap Growth II 32 99 167 350
Strong Opportunity II 32 98 167 349
Strong Schafer Value II 33 100 170 355
VARIABLE INSURANCE PRODUCTS FUND (FIDELITY):
VIP Contrafund 30 93 158 332
VIP Mid Cap 33 102 172 359
VIP Growth 30 92 157 330
</TABLE>
*The investment advisers of certain Funds are voluntarily waiving part or all of
their management fees and/or reimbursing certain Funds in order to reduce total
Fund expenses.
EXAMPLE -- Without the voluntary fee waivers or reimbursements by investment
advisers, you would pay the following aggregate expenses on a $1,000 investment
in each of the following Funds, assuming 5% annual return:
<TABLE>
<CAPTION>
1 3 5 10
YEAR YEARS YEARS YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
OHIO NATIONAL FUND, INC.:
Money Market $25 $ 77 $131 $280
International 33 102 173 360
DOW TARGET VARIABLE FUND LLC:
Dow Target 10 33 101 172 359
Dow Target 5 52 155 258 514
GOLDMAN SACHS VARIABLE INSURANCE TRUST:
Goldman Sachs Growth and Income 33 101 171 357
Goldman Sachs Capital Growth 38 114 193 398
Goldman Sachs Global Income 47 142 238 479
J.P. MORGAN SERIES TRUST II:
J.P. Morgan Small Company 46 139 233 471
LAZARD RETIREMENT SERIES, INC.:
Small Cap 92 263 420 755
Emerging Markets 113 316 493 842
SALOMON BROTHERS VARIABLE SERIES FUNDS INC:
Capital 41 123 207 424
Total Return 37 113 191 395
Investors 32 99 167 350
STRONG VARIABLE INSURANCE FUNDS, INC.:
Strong Mid Cap Growth II 32 99 168 352
Strong Schafer Value II 36 111 187 388
</TABLE>
**The "Other Expenses" (and, accordingly, the Total Fund Expenses) for these
Funds are based on estimates.
The purpose of the above table is to help you to understand the costs and
expenses that you will bear directly or indirectly. THESE EXAMPLES SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSE. ACTUAL EXPENSES MAY BE
GREATER OR LESS THAN THOSE SHOWN. For some funds, the "Other Expenses" include a
12b-1 fee. These fees do not exceed 0.25%. Note that the expense amounts shown
in the examples are aggregate amounts for the total number of years indicated.
In the examples, the annual fee is treated as if it were deducted as a
percentage of assets, based upon the average account value for all contracts,
including ones from which a portion
Form 8902
7
<PAGE> 43
of the contract fee may be paid from amounts invested in the Guaranteed Account.
The above table and examples reflect only the charges for contracts currently
offered by this prospectus and not other contracts that we may offer. The
examples assume that you pay 0.25% for an optional increasing death benefit plus
0.30% for the optional enhanced death benefit.
FINANCIAL STATEMENTS
The complete financial statements of VAA and Ohio National Life, including the
Independent Auditors' Reports for them, are included in the Statement of
Additional Information.
ACCUMULATION UNIT VALUES
The series of variable annuity contracts began on May 1, 1998. The Dow Target
Variable Fund was first used in these contracts January 6, 1999. Ohio National
Fund International Small Company Portfolio and Lazard Retirement Series, Small
Cap and Emerging Markets Portfolios were first used in these contracts May 1,
1999. The Ohio National Fund Equity portfolio and the Mitchell Hutchins Series
Strategic Income, Growth & Income, Tactical Allocation and Small Cap portfolios
were first used in these contracts July 1, 1999. The Ohio National Fund Small
Cap and Aggressive Growth portfolios and the Prudential Series Prudential
Jennison and 20/20 Focus portfolios were first used in these contracts January
3, 2000. The Ohio National Core Growth and Nasdaq-100 Index portfolios, the
Janus Aspen Series Service Shares, the PBHG Technology & Communications
portfolio and the Variable Insurance Products (Fidelity) portfolios were first
used in these contracts May 1, 2000. The Janus Aspen Series Institutional Shares
and Morgan Stanley Universal Funds are not available in contracts issued on or
after May 1, 2000. The Mitchell Hutchins Series Strategic Income and Small Cap
portfolios are not available in contracts issued on or after September 15, 2000.
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C> <C>
OHIO NATIONAL FUND:
Firstar Growth & Income 1999 $10.000000 $ 9.964343 3,709
Strategic Income 1999 $10.000000 $ 9.306326 1,370
Relative Value 1999 $10.000000 $10.614952 10,857
Money Market 1998 $10.000000 $10.250770 354,726
1999 10.250770 10.606650 580,948
Equity 1999 $10.000000 $10.796756 5,183
Bond 1998 $10.000000 $10.211170 0
1999 0.211170 10.118406 3,335
Omni 1998 $10.000000 $ 9.373686 0
1999 .373686 10.283878 264
S&P 500 Index 1998 $10.000000 $11.131014 14,746
1999 11.131014 13.777077 168,968
International 1998 $10.000000 $ 9.345821 0
1999 .345821 15.413858 62,643
International Small Company 1999 $10.000000 $15.087923 108
Capital Appreciation 1998 $10.000000 9.830302 6,258
1999 9.830302 10.310477 18,630
Growth & Income 1998 $10.000000 $ 9.287411 3,517
1999 9.287411 14.846078 8,452
Capital Growth 1998 $10.000000 $10.359321 5,017
1999 10.359321 30.891708 33,970
High Income Bond 1998 $10.000000 $ 9.882097 0
1999 9.882097 9.935713 12,856
</TABLE>
Form 8902
8
<PAGE> 44
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C> <C>
Equity Income 1998 $10.000000 $10.488837 0
1999 10.488837 12.266014 6,924
Blue Chip 1998 $10.000000 $10.134253 2,508
1999 10.134253 10.580255 17,773
DOW TARGET VARIABLE FUND:
Dow Target 10, January 1999 $10.000000 $10.154375 128
Dow Target 10, February 1999 $10.000000 $10.538202 38,068
Dow Target 10, March 1999 $10.000000 $10.096966 12,836
Dow Target 10, April 1999 $10.000000 $10.162000 884
Dow Target 10, May 1999 $10.000000 $ 8.314354 1,438
Dow Target 10, June 1999 $10.000000 $ 8.965064 1,644
Dow Target 10, July 1999 $10.000000 $ 8.841905 229
Dow Target 10, August 1999 $10.000000 $ 8.907985 2,889
Dow Target 10, September 1999 $10.000000 $ 8.789882 10,541
Dow Target 10, October 1999 $10.000000 $ 9.232746 14,194
Dow Target 10, November 1999 $10.000000 $10.087394 4,234
Dow Target 10, December 1999 $10.000000 $10.004157 727
GOLDMAN SACHS VARIABLE INSURANCE TRUST:
Goldman Sachs Growth and Income 1998 $10.000000 $ 8.842262 10,579
1999 8.842262 9.183018 32,934
Goldman Sachs CORE U.S. Equity 1998 $10.000000 $10.178701 13,701
1999 10.178701 12.465356 31,465
Goldman Sachs Capital Growth 1998 $10.000000 $11.183295 0
1999 11.183295 14.007791 8,621
Goldman Sachs Global Income 1998 $10.000000 $10.562975 0
1999 10.562975 10.301425 13,311
JANUS ASPEN SERIES (INSTITUTIONAL
SHARES):
Growth 1998 $10.000000 $11.550278 7,103
1999 11.550278 16.385089 181,724
International Growth 1998 $10.000000 $ 9.866798 0
1999 9.866798 17.719378 228,884
Worldwide Growth 1998 $10.000000 $10.498008 2,063
1999 10.498008 17.009248 370,658
Balanced 1998 $10.000000 $11.619511 10,515
1999 11.619511 14.511033 123,188
J.P. MORGAN SERIES TRUST II:
J.P. Morgan Small Company 1998 $10.000000 $ 8.326677 3,544
1999 8.326677 11.845638 7,491
LAZARD RETIREMENT SERIES:
Small Cap 1999 $10.000000 $ 9.283667 0
Emerging Markets 1999 $10.000000 $11.476404 2,966
MITCHELL HUTCHINS SERIES TRUST:
Strategic Income 1999 $10.000000 $ 9.974528 782
Growth & Income 1999 $10.000000 $10.503936 7,311
Tactical Allocation 1999 $10.000000 $10.464132 4,698
Small Cap 1999 $10.000000 $10.784880 116
</TABLE>
Form 8902
9
<PAGE> 45
<TABLE>
<CAPTION>
YEAR ENDED UNIT VALUE AT UNIT VALUE AT NUMBER OF UNITS
DECEMBER 31 BEGINNING OF YEAR END OF YEAR AT END OF YEAR
----------- ----------------- ------------- ---------------
<S> <C> <C> <C> <C>
MORGAN STANLEY UNIVERSAL:
Fixed Income 1998 $10.000000 $10.442562 3,925
1999 10.442562 10.120748 30,259
Value 1998 $10.000000 $ 8.793779 0
1999 8.793779 8.506511 4,534
U.S. Real Estate 1998 $10.000000 $ 8.935176 0
1999 8.935176 8.673554 1,698
Emerging Markets Debt 1998 $10.000000 $ 6.715933 0
1999 6.715933 8.560480 0
SALOMON BROTHERS VARIABLE SERIES:
Capital 1998 $10.000000 $10.660198 3,518
1999 10.660198 12.822212 22,316
Total Return 1998 $10.000000 $ 9.998263 3,757
1999 9.998263 9.927581 4,263
Investors 1998 $10.000000 $10.125357 4,237
1999 10.125357 11.137851 7,637
STRONG VARIABLE INSURANCE FUNDS:
Strong Mid Cap Growth II 1998 $10.000000 $11.518881 0
1999 11.518881 21.549079 20,343
Strong Opportunity II 1998 $10.000000 $ 9.534784 42,277
1999 9.534784 12.673177 3,803
Strong Schafer Value II 1998 $10.000000 $ 9.386490 0
1999 9.386490 8.982623 3,497
</TABLE>
OHIO NATIONAL LIFE
Ohio National Life was organized under the laws of Ohio on September 9, 1909. We
write life, accident and health insurance and annuities in 47 states, the
District of Columbia and Puerto Rico. Currently we have assets in excess of $6.6
billion and equity in excess of $750 million. Our home office is located at One
Financial Way, Montgomery, Ohio 45242. We are a stock life insurance company
ultimately owned by a mutual insurance holding company (Ohio National Mutual
Holdings, Inc.). Our policyholders own the majority voting interest of the
holding company.
OHIO NATIONAL VARIABLE ACCOUNT A
We established VAA on August 1, 1969 as a separate account for funding variable
annuity contracts. Purchase payments for the variable annuity contracts are
allocated to one or more subaccounts of VAA. However, contract values may not be
allocated to more than 10 variable subaccounts at any one time. Income, gains
and losses, whether or not realized, from assets allocated to VAA are credited
to or charged against VAA without regard to our other income, gains or losses.
The assets maintained in VAA will not be charged with any liabilities arising
out of any of our other business. Nevertheless, all obligations arising under
the contracts, including the commitment to make annuity payments, are our
general corporate obligations. Accordingly, all our assets are available to meet
our obligations under the contracts. VAA is registered as a unit investment
trust under the Investment Company Act of 1940. The assets of the subaccounts of
VAA are invested at net asset value in Fund shares. Values of other contracts
not offered through this prospectus are also allocated to VAA, including some
subaccounts that are not available for these contracts.
THE FUNDS
The Funds are mutual funds registered under the Investment Company Act 1940.
Fund shares are sold only to insurance company separate accounts to fund
variable annuity contracts and variable life insurance policies and, in
Form 8902
10
<PAGE> 46
some cases, to qualified plans. The value of each Fund's investments fluctuates
daily and is subject to the risk that Fund management may not anticipate or make
changes necessary in the investments to meet changes in economic conditions.
The Funds receive investment advice from their investment advisers. The Funds
pay each of the investment advisers a fee as shown in the fee table beginning on
page 4. In some cases, the investment adviser pays part of its fee to a
subadviser.
Affiliates of certain Funds may compensate us based upon a percentage of the
Fund's average daily net assets that are allocated to VAA. These percentages
vary by Fund. This is intended to compensate us for administrative and other
services we provide to the Funds and their affiliates.
For additional information concerning the Funds, including their investment
objectives, see the Fund prospectuses. Read them carefully before investing.
They may contain information about other funds that are not available as
investment options for these contracts. You cannot be sure that any Fund will
achieve its stated objectives and policies.
The investment policies, objectives and/or names of some of the Funds may be
similar to those of other investment companies managed by the same investment
adviser or subadviser. However, similar funds often do not have comparable
investment performance. The investment results of the Funds may be higher or
lower than those of the other funds.
MIXED AND SHARED FUNDING
In addition to being offered to VAA, certain Fund shares are offered to our
other separate accounts for variable annuity contracts and a separate account of
Ohio National Life Assurance Corporation for variable life insurance contracts.
Fund shares may also be offered to other insurance company separate accounts and
qualified plans. It is conceivable that in the future it may become
disadvantageous for one or more of variable life and variable annuity separate
accounts, or separate accounts of other life insurance companies, and qualified
plans to invest in Fund shares. Although neither we nor any of the Funds
currently foresee any such disadvantage, the Board of Directors or Trustees of
each Fund will monitor events to identify any material conflict among different
types of owners and to determine if any action should be taken. That could
possibly include the withdrawal of VAA's participation in a Fund. Material
conflicts could result from such things as:
- changes in state insurance law;
- changes in federal income tax law;
- changes in the investment management of any Fund; or
- differences in voting instructions given by different types of owners.
VOTING RIGHTS
We will vote Fund shares held in VAA at Fund shareholders meetings in accordance
with voting instructions received from contract owners. We will determine the
number of Fund shares for which you are entitled to give instructions as
described below. This determination will be within 90 days before the
shareholders meeting. Proxy material and forms for giving voting instructions
will be distributed to each owner. We will vote Fund shares held in VAA, for
which no timely instructions are received, in proportion to the instructions
that we do receive.
Until annuity payments begin, the number of Fund shares for which you may
instruct us is determined by dividing your contract value in each Fund by the
net asset value of a share of that Fund as of the same date. After annuity
payments begin, the number of Fund shares for which you may instruct us is
determined by dividing the actuarial liability for your variable annuity by the
net asset value of a Fund share as of the same date. Generally, the number of
votes tends to decrease as annuity payments progress.
Form 8902
11
<PAGE> 47
DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS
The variable annuity contracts are sold by our insurance agents who are also
registered representatives of broker-dealers that have entered into distribution
agreements with Ohio National Equities, Inc. "ONEQ" is a wholly-owned subsidiary
of ours. ONEQ is the principal underwriter of the contracts. ONEQ and the
broker-dealers are registered under the Securities Exchange Act of 1934 and are
members of the National Association of Securities Dealers, Inc. We pay ONEQ
7.25% of each purchase payment and ONEQ then pays part of that to the broker-
dealers. The broker-dealers pay their registered representatives from their own
funds. Purchase payments on which nothing is paid to registered representatives
may not be included in amounts on which we pay the sales compensation to ONEQ.
If our surrender charge is not sufficient to recover the fee paid to ONEQ, any
deficiency will be made up from our general assets. These include, among other
things, any profit from the mortality and expense risk charges. ONEQ's address
is One Financial Way, Montgomery, Ohio 45242.
DEDUCTIONS AND EXPENSES
SALES CHARGE
No deduction is made for sales expense.
CONTRACT ADMINISTRATION CHARGE
Each year on the contract anniversary (or when you surrender of the contract),
we will deduct a contract administration charge of $30 from the contract value.
This helps to repay us for maintaining the contract. There is no contract
administration charge for contracts having a value of at least $50,000. There is
no charge after annuity payments begin. We guarantee not to increase the
contract administration charge.
DEDUCTION FOR ADMINISTRATIVE EXPENSES
At the end of each valuation period we deduct an amount equal to 0.25% on an
annual basis of the contract value. This deduction reimburses us for expenses
not covered by the contract administration charge. Examples of these expenses
are accounting, auditing, legal, contract owner services, reports to regulatory
authorities and contract owners, contract issue, etc.
DEDUCTION FOR RISK UNDERTAKINGS
We guarantee that, until annuity payments begin, the contract's value will not
be affected by any excess of sales and administrative expenses over the
deductions for them. We also guarantee to pay a death benefit if the annuitant
dies before annuity payments begin. After annuity payments begin, we guarantee
that variable annuity payments will not be affected by adverse mortality
experience or expenses.
For assuming these risks, when we determine the accumulation unit values and the
annuity unit values for each subaccount, we make a deduction from the applicable
investment results equal to 1.25% of the contract value on an annual basis. We
may decrease that deduction at any time and we may increase it not more often
than annually to not more than 1.25% on an annual basis. We agree that the
deduction for these risk undertakings shall not be increased to more than the
rate in effect at the time the contract is issued. We may discontinue this
limitation on our right to increase the deduction, but only as to contracts
purchased after notice of the discontinuance. The risk charge is an indivisible
whole of the amount currently being deducted. However, we believe that a
reasonable allocation would be 0.65% for mortality risk, and 0.60% for expense
risk. We hope to realize a profit from this charge. However there will be a loss
if the deduction fails to cover the actual risks involved.
Form 8902
12
<PAGE> 48
TRANSFER FEE
We may charge a transfer fee of $10 for each transfer from one or more
subaccounts to other subaccounts. The fee is charged pro rata against the
subaccounts from which the transfer is made. We do not charge for your first 12
transfers each contract year.
DEDUCTION FOR STATE PREMIUM TAX
Most states do not presently charge a premium tax for these contracts. Where a
tax applies, the rates for tax-qualified contracts are presently 0.5% in
California, 1.0% in Puerto Rico and West Virginia, 2.0% in Kentucky and 2.25% in
the District of Columbia. For non-tax-qualified contracts, the rates are
presently 1.0% in Puerto Rico, West Virginia and Wyoming, 1.25% in South Dakota,
2.0% in Kentucky and Maine, 2.25% in the District of Columbia, 2.35% in
California and 3.5% in Nevada. The deduction for premium taxes will be made when
incurred. Normally, that is not until annuity payments begin. However, in South
Dakota and Wyoming, they are presently being deducted from purchase payments.
FUND EXPENSES
There are deductions from, and expenses paid out of, the assets of the Funds.
These are described in the Fund prospectuses.
DESCRIPTION OF VARIABLE ANNUITY CONTRACTS
10-DAY FREE LOOK
You may revoke the contract at any time until the end of 10 days after you
receive it (or such longer period as may be required by your state law) and get
a refund of the contract value as of the date of cancellation. To revoke, you
must return the contract to us within the free look period. In Georgia, Idaho,
Indiana, Nebraska, Nevada, North Carolina, Oklahoma, South Carolina, Utah and
Washington, state law requires that the original purchase price be returned in
lieu of the current contract value if you exercise your free look. Any purchase
payments in these states to be allocated to variable Funds will first be
allocated to the Money Market Fund until the end of the free look period.
ACCUMULATION PERIOD
PURCHASE PAYMENTS
Your first purchase payment must be at least $10,000. You do not have to make
any more payments after that. But you may make additional purchase payments at
any time of at least $500 each ($300 for payroll deduction plans). We may limit
your total purchase payments to $1,500,000.
ACCUMULATION UNITS
Until the annuity payout date, the contract value is measured by accumulation
units. As you make each purchase payment, we credit units to the contract (see
Crediting Accumulation Units). The number of units remains constant between
purchase payments but their dollar value varies depending upon the investment
results of each Fund to which payments are allocated.
CREDITING ACCUMULATION UNITS
Your representative will send an order or application, together with the first
purchase payment, to our home office for acceptance. Upon acceptance, we issue a
contract and we credit the first purchase payment to the contract in the form of
accumulation units. If all information necessary for issuing a contract and
processing the purchase payment is complete, we will credit your first purchase
payment within two business days after receipt. If we do not receive everything
within five business days, we will return the purchase payment to you
immediately unless
Form 8902
13
<PAGE> 49
you specifically consent to having us retain the purchase payment until the
necessary information is completed. After that, we will credit the purchase
payment within two business days.
You must send any additional purchase payments directly to our home office. They
will then be applied to provide that number of accumulation units (for each
subaccount) determined by dividing the amount of the purchase payment by the
unit value next computed after we receive the payment at our home office.
ALLOCATION OF PURCHASE PAYMENTS
You may allocate your purchase payments among up to 10 variable subaccounts of
VAA and to the Guaranteed Account. The amount you allocate to any Fund or the
Guaranteed Account must equal a whole percent You may change your allocation of
future purchase payments at any time by sending written notice to our home
office.
ACCUMULATION UNIT VALUE AND ACCUMULATION VALUE
We set the accumulation unit value of each subaccount of VAA at $10 when we
credited the first payments for these contracts. We determine the unit value for
any later valuation period by multiplying the unit value for the immediately
preceding valuation period by the net investment factor (described below) for
such later valuation period. We determine a contract's value by multiplying the
total number of units (for each subaccount) credited to the contract by the unit
value (for such subaccount) for the current valuation period.
NET INVESTMENT FACTOR
The net investment factor measures the investment results of each subaccount.
The net investment factor for each subaccount for any valuation period is
determined by dividing (a) by (b), then subtracting (c) from the result, where:
(a) is
(1) the net asset value of the corresponding Fund share at the end of a
valuation period, plus
(2) the per share amount of any dividends or other distributions declared
for that Fund if the "ex-dividend" date occurs during the valuation
period, plus or minus
(3) a per share charge or credit for any taxes paid or reserved for the
maintenance or operation of that subaccount; (No federal income taxes
apply under present law.)
(b) is the net asset value of the corresponding Fund share at the end of the
preceding valuation period; and
(c) is the deduction for administrative and sales expenses and risk
undertakings.
SURRENDER AND PARTIAL WITHDRAWAL
Before annuity payments begin (and also after that in the case of annuity Option
1(e) described below) you may surrender (totally withdraw the value of) your
contract or elect a partial withdrawal (at least $300). In the case of a
complete surrender, we subtract any contract administration charge. We will pay
you within seven days after we receive your request. However, we may defer
payment described below. Surrenders and partial withdrawals are limited or not
permitted in connection with certain retirement plans. For tax consequences of a
surrender or withdrawal, see Federal Tax Status.
If you request a surrender or partial withdrawal which includes contract values
derived from purchase payments that have not yet cleared the banking system, we
may delay mailing the portion relating to such payments until your check has
cleared. We require the return of the contract in the case of a complete
surrender.
Your right to withdraw may be suspended or the date of payment postponed:
(1) for any period during which the New York Stock Exchange is closed (other
than customary weekend and holiday closings) or during which the Securities and
Exchange Commission has restricted trading on the Exchange;
Form 8902
14
<PAGE> 50
(2) for any period during which an emergency, as determined by the Commission,
exists as a result of which disposal of securities held in a Fund is not
reasonably practical, or it is not reasonably practical to determine the value
of a Fund's net assets; or
(3) such other periods as the Commission may order to protect security holders.
TRANSFERS AMONG SUBACCOUNTS
You may transfer contract values from one or more Funds to one or more other
Funds. You may make transfers at any time before annuity payments begin. The
amount of any transfer must be at least $300 (or the entire value of the
contract's interest in a Fund, if less).
We may limit the number, frequency, method or amount of transfers. We may limit
transfers from any Fund on any one day to 1% of the previous day's total net
assets of that Fund if we or the Fund in our discretion, believe that the Fund
might otherwise be damaged. In determining which requests to honor, scheduled
transfers (under a DCA program) will be made first, followed by mailed written
requests in the order postmarked and, lastly, telephone and facsimile requests
in the order received. We will notify you if your requested transfer is not
made. Current SEC rules preclude us from processing at a later date those
requests that were not made. Accordingly, you would need to submit a new
transfer request in order to make a transfer that was not made because of these
limitations.
Certain third parties may offer you asset allocation or timing services for your
contract. We may choose to honor transfer requests from these third parties if
you give us a written power of attorney to do so. Fees you pay for such asset
allocation or timing services are in addition to any contract charges. WE DO NOT
ENDORSE, APPROVE OR RECOMMEND THESE SERVICES.
After annuity payments begin, you may make transfers among Funds only once each
calendar quarter. The transfer fee no longer applies then. Not more than 20% of
a contract's Guaranteed Account value (or $1,000, if greater) as of the
beginning of a contract year may be transferred to variable Funds during that
contract year.
TELEACCESS
If you give us a pre-authorization form, your contract and unit values and
interest rates can be checked and transfers may be made by telephoning us
between 7:00 a.m. and 7:00 p.m. (Eastern time) on days that we are open for
business, at 1-800-366-6654, #8. You may only make one telephone transfer per
day. We will honor pre-authorized telephone transfer instructions from anyone
who provides the personal identifying information requested via TeleAccess. We
will not honor telephone transfer requests after we receive notice of your
death. For added security, we send the contract owner a written confirmation of
all telephone transfers on the next business day. However, if we cannot complete
a transfer as requested, our customer service representative will contact the
owner in writing sent within 48 hours of the TeleAccess request. YOU MAY THINK
THAT YOU HAVE LIMITED THIS ACCESS TO YOURSELF, OR TO YOURSELF AND YOUR
REPRESENTATIVE. HOWEVER, ANYONE GIVING US THE NECESSARY IDENTIFYING INFORMATION
CAN USE TELEACCESS ONCE YOU AUTHORIZE IT.
SCHEDULED TRANSFERS (DOLLAR COST AVERAGING)
We administer a scheduled transfer ("DCA") program enabling you to preauthorize
automatic monthly or quarterly transfers of a specified dollar amount of at
least $300 each time. At least 12 DCA transfers must be scheduled, but we may
permit fewer under some special DCA programs. The transfers may be from any
variable Funds to any other Funds or to the Guaranteed Account. Transfers may be
made from the Guaranteed Account to any other Funds if the DCA program is
established at the time the contract is issued, the DCA program is scheduled to
begin within 6 months of the time you make purchase payments from which DCA
transfers will be made. A DCA program from the Guaranteed Account may not exceed
2 years. For transfers from variable Funds, the DCA program may not exceed 5
years. There is no transfer fee for DCA transfers. DCA transfers do not count as
the free transfer you are allowed once each calendar month. We may discontinue
the DCA program at
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any time. You may also discontinue further DCA transfers by giving us written
notice at least 7 business days before the next scheduled transfer.
DCA generally has the effect of reducing the risk of purchasing at the top, and
selling at the bottom, of market cycles. DCA transfers from the Guaranteed
Account or from a Fund with a stabilized net asset value, such as the Money
Market Fund, will generally reduce the average total cost of indirectly
purchasing Fund shares because greater numbers of shares will be purchased when
the share prices are lower than when prices are higher. However, DCA does not
assure you of a profit, nor does it protect against losses in a declining
market. Moreover, for transfers from a variable Fund, DCA has the effect of
reducing the average price of the shares being redeemed. DCA might also be used
to systematically transfer contract values from variable Funds to the Guaranteed
Account in anticipation of retirement, reducing the risk of making a single
transfer during a low market.
PORTFOLIO REBALANCING
You may have us automatically transfer amounts on a quarterly, semi-annual or
annual basis to maintain a specified percentage (whole percentages only) of
contract value in each of two or more designated Funds. The purpose of a
portfolio rebalancing strategy is to maintain, over time, your desired
allocation percentage in the designated Funds having differing investment
performance. Portfolio rebalancing will not necessarily enhance future
performance or protect against future losses.
To elect, change or discontinue this option, you must give us written
authorization. The transfer charge does not apply to portfolio rebalancing
transactions. These transactions do not count against the free transfer you are
allowed once each calendar month. You may not have portfolio rebalancing for any
Funds that are part of a DCA program.
DEATH BENEFIT
If the annuitant (and any contingent annuitant) dies before annuity payments
begin, the contract pays a death benefit to a designated beneficiary. (Death
benefits are not available on any contract purchased through a bank in Puerto
Rico.) The amount of the death benefit will be determined as of the date of the
annuitant's death. It will be paid to the beneficiary in a single sum unless you
elect settlement under one or more of the settlement options. If the death
benefit is not claimed within 90 days after the date of death, we will pay the
contract value next determined after we receive written notice of the claim
instead of any greater death benefit. In lieu of the death benefit, the
beneficiary may surrender the contract, without incurring a surrender charge,
anytime within 90 days after the annuitant's death. If the contract value as of
the date of death is less than the death benefit, we will add an amount equal to
that difference to your Money Market subaccount.
This death benefit will be the greatest of:
- the contract value; or
- net purchase payments; or
-the stepped-up death benefit amount if you chose that option; or
-the guaranteed minimum death benefit if you chose that option.
Net purchase payments means your total purchase payments minus any amounts you
have withdrawn from the contract.
In those states where permitted, you may choose an optional annual stepped-up
death benefit at the time the contract is issued. With that option, the death
benefit on the first contract anniversary will be the greater of (a) the
contract value then or (b) net purchase payments made on or before that date. On
each contract anniversary after that (until the annuitant attains age 80), the
death benefit will be reset to the greater of (a) the contract value on that
anniversary date or (b) the death benefit as of the last preceding anniversary.
The death benefit is increased by purchase payments and decreased by withdrawals
made during the year before each anniversary.
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There is an additional charge (presently at an annual rate of 0.05% of the
optional death benefit amount, which rate may be increased to no more than 0.25%
on contracts issued in the future) for this optional benefit.
In those states where permitted, you may choose a guaranteed minimum death
benefit at the time the contract is issued. With this option, the death benefit
is the greater of (a) the contract value on the date of death or (b) the
guaranteed minimum death benefit amount. The guaranteed minimum death benefit
amount for contract values held in the Guaranteed Account and the Money Market
Fund is the contract value as of the date of death. For all other subaccounts,
the guaranteed minimum death benefit amount is (i) net purchase payments plus
(ii) a daily increase, until the annuitant attains age 80, at an effective
annual rate of 6%. There is an additional charge for this option of 0.25% of the
guaranteed minimum death benefit amount.
In those states where permitted, you may choose an optional enhanced death
benefit at the time the contract is issued. With that option, the following
amount will be added to any other amount payable upon the annuitant's death:
-40% of the lesser of (a) two and a half times net purchase payments, or (b) the
contract value on the date of death minus net purchase payments; or
-20% of the lesser of (a) or (b).
If you choose the 40% benefit level, there is an additional charge of 0.30% (or
0.85% if you are age 71 to 80 when the contract is issued). If you choose the
20% benefit level, the charge is 0.15% (or 0.45% for ages 71 to 80 when issued).
You may choose the enhanced death benefit in addition to one of the other death
benefit options.
The beneficiary for any death proceeds may choose to continue the contract for
up to 5 years (or longer if the beneficiary is the deceased annuitant's spouse).
The beneficiary will then be the owner and annuitant of the continued contract.
The value of the continued contract, as of the date the death benefit was
payable, will equal the amount of the death benefit.
GUARANTEED ACCOUNT
The Guaranteed Account guarantees a fixed return for a specified period of time
and guarantees the principal against loss. The Guaranteed Account is not
registered as an investment company. Interests in it are not subject to the
provisions or restrictions of federal securities laws. The staff of the
Securities and Exchange Commission has not reviewed disclosures regarding it.
The Guaranteed Account consists of all of our general assets other than those
allocated to a separate account. You may allocate purchase payments and contract
values between the Guaranteed Account and the Funds.
We invest our general assets in our discretion as allowed by Ohio law. We
allocate the investment income from our general assets to those contracts having
guaranteed values.
The amount of investment income allocated to the contracts varies from year to
year in our sole discretion. However, we guarantee that we will credit interest
at a rate of not less than 3% per year, compounded annually, to contract values
allocated to the Guaranteed Account. We may credit interest at a rate in excess
of 3%, but any such excess interest credit will be in our sole discretion.
We guarantee that, before annuity payments begin, the guaranteed value of a
contract will never be less than:
- the amount of purchase payments allocated to, and transfers into, the
Guaranteed Account, plus
- interest credited at the rate of 3% per year compounded annually, plus
- any additional excess interest we may credit to guaranteed values, minus
- any partial withdrawals, loans and transfers from the guaranteed values, minus
- any loan interest, state premium taxes, transfer fees, and the portion of the
$30 annual contract administration charge allocable to the Guaranteed Account.
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No deductions are made from the Guaranteed Account for administrative expenses
or risk undertakings.
Other than pursuant to a DCA (scheduled transfer) or portfolio rebalancing
program, we may restrict transfers of your Guaranteed Account value during a
contract year to not more than 20% of that value as of the beginning of a
contract year (or $1,000, if greater). As provided by state law, we may defer
the payment of amounts to be withdrawn from the Guaranteed Account for up to six
months from the date we receive your written request for withdrawal.
OHIO NATIONAL LIFE EMPLOYEE DISCOUNT
We and our affiliated companies offer a credit on the purchase of contracts by
any of our employees, directors or retirees, or their spouse or the surviving
spouse of a deceased retiree, their minor children, or any of their children
ages 18 to 21 who is either (i) living in the purchaser's household or (ii) a
full-time college student being supported by the purchaser, or any of the
purchaser's minor grandchildren under the Uniform Gifts to Minors Act. This
credit counts as additional income under the contract. The amount of the credit
equals 3.2% of all purchase payments made in the first contract year and 5.5% of
purchase payments made in the second through sixth contract years. We credit the
Guaranteed Account in these amounts at the time the eligible person makes each
payment.
TEXAS STATE OPTIONAL RETIREMENT PROGRAM
Under the Texas State Optional Retirement Program (the "Program"), purchase
payments may be excluded from the gross income of state employees for federal
tax purposes to the extent that such purchase payments do not exceed the
exclusion allowance provided by the Code. The Attorney General of Texas has
interpreted the Program as prohibiting any participating state employee from
receiving the surrender value of a contract funding benefits under the Program
prior to termination of employment or the state employee's retirement, death or
total disability. Therefore, a participant in the Program may not make a
surrender or partial withdrawal until the first of these events occurs.
ANNUITY PERIOD
ANNUITY PAYOUT DATE
Annuity payments begin on the annuity payout date. You may select this date when
the contract is issued. It must be at least 30 days after the contract date. You
may change it from time to time so long as it is the first day of any month at
least 30 days after the date of such change. The contract restricts the annuity
payout date to not later than the first of the month following the annuitant's
90th birthday. This restriction may be modified by applicable state law or we
may agree to waive it.
The contracts include our guarantee (except for option 1(e) below) that we will
pay annuity payments for the lifetime of the annuitant (and any joint annuitant)
in accordance with the contract's annuity rates, no matter how long you live.
Other than in connection with annuity Option 1(e) described below, once annuity
payments begin, you may not surrender the contract for cash except that, upon
the death of the annuitant, the beneficiary may surrender the contract for the
commuted value of any remaining period-certain payments. You may make surrenders
and partial withdrawals from Option 1(e) at any time.
ANNUITY OPTIONS
You may elect one or more of the following annuity options. You may change the
election anytime before the annuity payout date.
Option 1(a): Life Annuity with installment payments for the lifetime of the
annuitant. (The contract has no more value after the annuitant's
death).
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Option 1(b): Life Annuity with installment payments guaranteed for five years
and then continuing during the remaining lifetime of the
annuitant.
Option 1(c): Life Annuity with installment payments guaranteed for ten years
and then continuing during the remaining lifetime of the
annuitant.
Option 1(d): Installment Refund Life Annuity with payments guaranteed for a
period certain and then continuing during the remaining lifetime
of the annuitant. The number of period-certain payments is equal
to the amount applied under this option divided by the amount of
the first payment.
Option 1(e): Installment Refund Annuity with payments guaranteed for a fixed
number (up to thirty) of years. This option is available for
variable annuity payments only. (Although the deduction for risk
undertakings is taken from annuity unit values, we have no
mortality risk during the annuity payout period under this
option.)
Option 2(a): Joint & Survivor Life Annuity with installment payments during
the lifetime of the annuitant and then continuing during the
lifetime of a contingent annuitant. (The contract has no more
value after the second annuitant's death.)
Option 2(b): Joint & Survivor Life Annuity with installment payments guaranteed
for ten years and then continuing during the remaining lifetime of
the annuitant or a contingent annuitant.
We may agree to other settlement options.
Unless you direct otherwise, we will apply the contract value as of the annuity
payout date to provide annuity payments pro-rata from each Fund in the same
proportion as the contract values immediately before the annuity payout date.
If no election is in effect on the annuity payout date, we will apply contract
value under Option 1(c) with the beneficiary as payee for any remaining
period-certain installments payable after the death of the annuitant. The
Pension Reform Act of 1974 might require certain contracts to provide a Joint
and Survivor Annuity. If the contingent annuitant is not related to the
annuitant, Options 2(a) and 2(b) are available only if we agree.
The Internal Revenue Service has not ruled on the tax treatment of a commutable
variable annuity. If you select Option 1(e), it is possible that the IRS could
determine that the entire value of the annuity is fully taxable at the time you
elect Option 1(e) or that variable annuity payments under this option should not
be taxed under the annuity rules (see Federal Tax Status). This could result in
your payments being fully taxable to you. Should the IRS so rule, we may have to
tax report up to the full value of the annuity as your taxable income.
DETERMINATION OF AMOUNT OF THE FIRST VARIABLE ANNUITY PAYMENT
To determine the first variable annuity payment we apply the contract value for
each Fund in accordance with the contract's settlement option tables. The rates
in those tables depend upon the annuitant's (and any contingent annuitant's) age
and sex and the option selected. The annuitant's sex is not a factor in
contracts issued to plans sponsored by employers subject to Title VII of the
Civil Rights Act of 1964 or similar state statutes. We determine the value to be
applied at the end of a valuation period (selected by us and uniformly applied)
not more than 10 valuation periods before the annuity payout date.
If the amount that would be applied under an option is less than $5,000, we will
pay the contract value to the annuitant in a single sum. If the first periodic
payment under any option would be less than $25, we may change the frequency of
payments so that the first payment is at least $25.
ANNUITY UNITS AND VARIABLE PAYMENTS
After your first annuity payment, later variable annuity payments will vary to
reflect the investment performance of your Funds. The amount of each payment
depends on the number of your annuity units. To determine the
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number of annuity units for each Fund, divide the dollar amount of the first
annuity payment from each Fund by the value that Fund's annuity unit. This
number of annuity units remains constant during the annuity payment period
unless you transfer among Funds.
The annuity unit value for each Fund was set at $10 for the valuation period
when the first variable annuity was calculated for these contracts. The annuity
unit value for each later valuation period equals the annuity unit value for the
immediately preceding valuation period multiplied by the net investment factor
(described on page 12) for such later valuation period and by a factor (0.999919
for a one-day valuation period) to neutralize the 3% assumed interest rate
discussed below.
The dollar amount of each later variable annuity payment equals your constant
number of annuity units for each Fund multiplied by the value of the annuity
unit for the valuation period.
The annuity rate tables contained in the contracts are based on the 1983(a)
Mortality Table Projected to 1996 under Scale G with compound interest at the
effective rate of 3% per year. A higher interest assumption would mean a higher
initial annuity payment but a more slowly rising series of subsequent annuity
payments if annuity unit values were increasing (or a more rapidly falling
series of subsequent annuity payments if annuity unit values were decreasing). A
lower interest assumption would have the opposite effect. If the actual net
investment rate were equal to the assumed interest rate, annuity payments would
stay level.
TRANSFERS DURING ANNUITY PAYOUT
After annuity payments have been made for at least 12 months, the annuitant can,
once each calendar quarter, change the Funds on which variable annuity payments
are based. On at least 30 days written notice our home office we will change
that portion of the periodic variable annuity payment as you direct to reflect
the investment results of different Funds. The annuity payment immediately after
a change will be the amount that would have been paid without the change. Later
payments will reflect the new mix of Funds.
OTHER CONTRACT PROVISIONS
ASSIGNMENT
Amounts payable in settlement of a contract may not be commuted, anticipated,
assigned or otherwise encumbered, or pledged as loan collateral to anyone other
than us. To the extent permitted by law, such amounts are not subject to any
legal process to pay any claims against an annuitant before annuity payments
begin. The owner of a tax-qualified contract may not, but the owner of a
non-tax-qualified contract may, collaterally assign the contract before the
annuity payout date. Ownership of a tax-qualified contract may not be
transferred except to:
- the annuitant,
- a trustee or successor trustee of a pension or profit-sharing trust which is
qualified under Section 401 of the Code,
- the employer of the annuitant provided that the contract after transfer is
maintained under the terms of a retirement plan qualified under Section 403(a)
of the Code for the benefit of the annuitant, or
- as otherwise permitted by laws and regulations governing plans for which the
contract may be issued.
REPORTS AND CONFIRMATIONS
Before the annuity payout date, we will send you quarterly statements showing
the number of units credited to the contract by Fund and the value of each unit
as of the end of the last quarter. In addition, as long as the contract remains
in effect, we will forward any periodic Fund reports.
We will send you a written confirmation of your purchase payments, transfers and
withdrawals. For regularly recurring transactions, such as dollar cost averaging
and payroll deduction programs, we may confirm the transactions in a quarterly
report. Review your statements and confirmations to verify their accuracy. You
must report any error or inaccuracy to us within 30 days. Otherwise, we will
assume they are correct.
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SUBSTITUTION FOR FUND SHARES
If investment in a Fund is no longer possible or we believe it is inappropriate
to the purposes of the contract, we may substitute one or more other funds.
Substitution may be made as to both existing investments and the investment of
future purchase payments. However, no substitution will be made until we receive
any necessary approval of the Securities and Exchange Commission. We may also
add other Funds as eligible investments of VAA.
CONTRACT OWNER INQUIRIES
Direct any questions to Ohio National Life, Variable Annuity Administration,
P.O. Box 2669, Cincinnati, Ohio 45201; telephone 1-800-366-6654 (8:30 a.m. to
4:30 p.m., Eastern time).
PERFORMANCE DATA
We may advertise performance data for the various Funds showing the percentage
change in unit values based on the performance of the applicable Fund over a
period of time (usually a calendar year). We determine the percentage change by
dividing the increase (or decrease) in value for the unit by the unit value at
the beginning of the period. This percent reflects the deduction of any
asset-based contract but does not reflect the deduction of any applicable
contract administration charge or surrender charge. The deduction of a contract
administration charge or surrender charge would reduce any percentage increase
or make greater any percentage decrease.
Advertising may also include average annual total return figures calculated as
shown in the Statement of Additional Information. The average annual total
return figures reflect the deduction of applicable contract administration
charges and surrender charges as well as applicable asset-based charges.
We may also distribute sales literature comparing separate account performance
to the Consumer Price Index or to such established market indexes as the Dow
Jones Industrial Average, the Standard & Poor's 500 Stock Index, IBC's Money
Fund Reports, Lehman Brothers Bond Indices, the Morgan Stanley Europe Australia
Far East Index, Morgan Stanley World Index, Russell 2000 Index, or other
variable annuity separate accounts or mutual funds with investment objectives
similar to those of the Funds.
FEDERAL TAX STATUS
The following discussion of federal income tax treatment of amounts received
under a variable annuity contract does not cover all situations or issues. It is
not intended as tax advice. Consult a qualified tax adviser to apply the law to
your circumstances. Tax laws can change, even for contracts that have already
been issued. Tax law revisions, with unfavorable consequences, could have
retroactive effect on previously issued contracts or on later voluntary
transactions in previously issued contracts.
We are taxed as a life insurance company under Subchapter L of the Internal
Revenue Code (the "Code"). Since the operations of VAA are a part of, and are
taxed with, our operations, VAA is not separately taxed as a "regulated
investment company" under Subchapter M of the Code.
As to tax-qualified contracts, the law does not now provide for payment of
federal income tax on dividend income or capital gains distributions from Fund
shares held in VAA or upon capital gains realized by VAA on redemption of Fund
shares. When a non-tax-qualified contract is issued in connection with a
deferred compensation plan or arrangement, all rights, discretions and powers
relative to the contract are vested in the employer and you must look only to
your employer for the payment of deferred compensation benefits. Generally, in
that case, an annuitant will have no "investment in the contract" and amounts
received by you from your employer under a deferred compensation arrangement
will be taxable in full as ordinary income in the years you receive the
payments.
The income and gains within an annuity contract are generally tax deferred.
Within a tax-qualified plan, the plan itself provides tax deferral. Therefore,
the tax-deferred treatment otherwise available to an annuity contract is not a
factor to consider when purchasing an annuity within a tax-qualified plan or
arrangement.
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The contracts are considered annuity contracts under Section 72 of the Code,
which generally provides for taxation of annuities. Under existing provisions of
the Code, any increase in the contract value is not taxable to you as the owner
or annuitant until you receive it, either in the form of annuity payments, as
contemplated by the contract, or in some other form of distribution. The owner
of a non-tax qualified contract must be a natural person for this purpose. With
certain exceptions, where the owner of a non-tax qualified contract is a
non-natural person (corporation, partnership or trust) any increase in the
accumulation value of the contract attributable to purchase payments made after
February 28, 1986 will be treated as ordinary income received or accrued by the
contract owner during the current tax year.
When annuity payments begin each payment is taxable under Section 72 of the Code
as ordinary income in the year of receipt if you have neither paid any portion
of the purchase payments nor previously been taxed on any portion of the
purchase payments. If any portion of the purchase payments has been paid from or
included in your taxable income, this aggregate amount will be considered your
"investment in the contract." You will be entitled to exclude from your taxable
income a portion of each annuity payment equal to your "investment in the
contract" divided by the period of expected annuity payments, determined by your
life expectancy and the form of annuity benefit. Once you recover your
"investment in the contract," all further annuity payments will be included in
your taxable income.
If you elect to receive the accumulated value in a single sum in lieu of annuity
payments, any amount you receive or withdraw in excess of the "investment in the
contract" will normally be taxed as ordinary income in the year received. A
partial withdrawal of contract values is taxable as income to the extent that
the accumulated value of the contract immediately before the payment exceeds the
"investment in the contract." Such a withdrawal is treated as a distribution of
earnings first and only second as a recovery of your "investment in the
contract." Any part of the value of the contract that you assign or pledge to
secure a loan will be taxed as if it had been a partial withdrawal and may be
subject to a penalty tax.
There is a penalty tax equal to 10% of any amount that must be included in gross
income for tax purposes. The penalty will not apply to a redemption that is:
- received on or after the taxpayer reaches age 59 1/2;
- made to a beneficiary on or after the death of the annuitant;
- attributable to the taxpayer's becoming disabled;
- made as a series of substantially equal periodic payments for the life of the
annuitant (or joint lives of the annuitant and beneficiary);
- from a contract that is a qualified funding asset for purposes of a structured
settlement;
- made under an annuity contract that is purchased with a single premium and
with an annuity payout date not later than a year from the purchase of the
annuity;
- incident to divorce, or
- taken from an IRA for a qualified first-time home purchase (up to $10,000) or
qualified education expenses.
If you elect not to have withholding apply to an early withdrawal or if an
insufficient amount is withheld, you may be responsible for payment of estimated
tax. You may also incur penalties under the estimated tax rules if the
withholding and estimated tax payments are not sufficient. If you fail to
provide your taxpayer identification number, any payments under the contract
will automatically be subject to withholding.
TAX-DEFERRED ANNUITIES
Under the provisions of Section 403(b) of the Code, employees may exclude from
their gross income purchase payments made for annuity contracts purchased for
them by public educational institutions and certain tax-exempt organizations
which are described in Section 501(c)(3) of the Code. You may make this
exclusion to the extent that the aggregate purchase payments plus any other
amounts contributed to purchase the contract and
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toward benefits under qualified retirement plans do not exceed your exclusion
allowance as determined in Sections 403(b) and 415 of the Code. Employee
contributions are, however, subject to social security (FICA) tax withholding.
All amounts you receive under a contract, either in the form of annuity payments
or cash withdrawal, will be taxed under Section 72 of the Code as ordinary
income for the year received, except for exclusion of any amounts representing
"investment in the contract." Under certain circumstances, amounts you receive
may be used to make a "tax-free rollover" into one of the types of individual
retirement arrangements permitted under the Code. Amounts you receive that are
eligible for "tax-free rollover" will be subject to an automatic 20% withholding
unless you directly roll over such amounts from the tax-deferred annuity to the
individual retirement arrangement.
With respect to earnings accrued and purchase payments made after December 31,
1988, for a salary reduction agreement under Section 403(b) of the Code,
distributions may be paid only when the employee:
- attains age 59 1/2,
- separates from the employer's service,
- dies,
- becomes disabled as defined in the Code, or
- incurs a financial hardship as defined in the Code.
In the case of hardship, cash distributions may not exceed the amount of your
purchase payments. These restrictions do not affect your right to transfer
investments among the Funds and do not limit the availability of transfers
between tax-deferred annuities.
QUALIFIED PENSION OR PROFIT-SHARING PLANS
Under present law, purchase payments made by an employer or trustee, for a plan
or trust qualified under Section 401(a) or 403(a) of the Code, are generally
excludable from the employees gross income. Any purchase payments made by the
employee, or which are considered taxable income to the employee in the year
such payments are made, constitute an "investment in the contract" under Section
72 of the Code for the employee's annuity benefits. Salary reduction payments to
a profit sharing plan qualifying under Section 401(k) of the Code are generally
excludable from the employee's gross income.
The Code requires plans to prohibit any distribution to a plan participant prior
to age 59 1/2, except in the event of death, total disability or separation from
service (special rules apply for plan terminations). Distributions must begin no
later than April 1 of the calendar year following the year in which the
participant reaches age 70 1/2. Premature distribution of benefits or
contributions in excess of those permitted by the Code may result in certain
penalties under the Code.
If an employee, or one or more of the beneficiaries, receives the total amounts
payable with respect to an employee within one taxable year after age 59 1/2 on
account of the employee's death or separation from service of the employer, any
amount received in excess of the employee's "investment in the contract" may be
taxed under special 5-year forward averaging rules. Five-year averaging will no
longer be available after 1999 except for certain grandfathered individuals. You
can elect to have that portion of a lump-sum distribution attributable to years
of participation prior to January 1, 1974 given capital gains treatment. The
percentage of pre-74 distribution subject to capital gains treatment decreases
as follows: 100%, 1987; 95%, 1988; 75%, 1989; 50%, 1990; and 25%, 1991. For tax
years 1992 and later no capital gains treatment is available (except that
taxpayers who were age 50 before 1986 may still elect capital gains treatment).
If you receive such a distribution you may be able to make a "tax-free rollover"
of the distribution less your "investment in the contract" into another
qualified plan in which you are a participant or into one of the types of
individual retirement arrangements permitted under the Code. Your surviving
spouse receiving such a distribution may be able to make a tax-free rollover to
one of the types of individual retirement arrangements permitted under the Code.
Amounts received that are eligible for "tax-free
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rollover" will be subject to an automatic 20% withholding unless such amounts
are directly rolled over to another qualified plan or individual retirement
arrangement.
INDIVIDUAL RETIREMENT ANNUITIES (IRA)
Section 408(b) of the Code provides that an individual may invest an amount up
to $2,000 per year of earned income in an IRA and claim it as a personal tax
deduction if such person is not an "active participant" in an employer
maintained qualified retirement plan or such person has adjusted gross income
which does not exceed the "applicable dollar limit." For a single taxpayer, the
applicable dollar limitation is $30,000, with the amount of IRA contribution
which may be deducted reduced proportionately for Adjusted Gross Income between
$30,000-$40,000. For married couples filing jointly, the applicable dollar
limitation is $50,000, with the amount of IRA contribution which may be deducted
reduced proportionately for Adjusted Gross Income between $50,000-$60,000. There
is no deduction allowed for IRA contributions when Adjusted Gross Income reaches
$40,000 for individuals and $60,000 for married couples filing jointly. In the
alternative, an individual otherwise qualified for an IRA may elect to
contribute to an IRA for the individual and for the individual's non-working
spouse, with the total deduction limited to $4,000.
You may make non-deductible IRA contributions to the extent they are ineligible
to make deductible IRA contributions. Any amount received from another qualified
plan (including another individual retirement arrangement) which is eligible as
a "tax-free rollover" may be invested in an IRA, and is not counted toward the
overall contribution limit. Earnings on nondeductible IRA contributions are not
subject to tax until they are withdrawn. The combined limit on designated
nondeductible and deductible contributions for a tax year is the lesser of 100%
of compensation or $2,000 ($4,000 in the case of an additional contribution to a
spousal IRA).
Generally, distributions (all or part) made prior to age 59 1/2 (except in the
case of death or disability) will result in a penalty tax of 10% plus ordinary
income tax treatment of the amount received. Additionally, there is an excise
tax of 6% of the amount contributed in excess of either the deductible limit or
nondeductible limit, as indicated above, if such amount is not withdrawn prior
to the filing of the income tax return for the year of contribution or applied
as an allowable contribution for a subsequent year. The excise tax will continue
to apply each year until the excess contribution is corrected. Distributions
after age 59 1/2 are treated as ordinary income at the time received.
Distributions must commence before April 1 following the year in which the
individual reaches age 70 1/2. A 50% nondeductible excise tax is imposed on the
excess in any tax year of the amount that should have been distributed over the
amount actually distributed.
Section 408A of the Code provides for a special type of IRA called a Roth IRA.
No tax deduction is allowed for contributions to a Roth IRA, but assets grow on
a tax-deferred basis. Under certain circumstances, withdrawals from a Roth IRA
can be excludable from income. Eligibility for a Roth IRA is based on adjusted
gross income and filing status. Special rules apply which allow traditional IRAs
to be rolled over or converted to a Roth IRA.
SIMPLIFIED EMPLOYEE PENSION PLANS (SEPPS)
Under Section 408 of the Code, employers may establish SEPPs for their
employees. Under these plans the employer may contribute on behalf of an
employee to an individual retirement account or annuity. The amount of the
contribution is excludable from the employee's income.
Certain employees who participate in a SEPP will be entitled to elect to have
the employer make contributions to a SEPP on their behalf or to receive the
contributions in cash. If the employee elects to have contributions made on the
employee's behalf to a SEPP, it is not treated as current taxable income to the
employee. Elective deferrals under a SEPP are subject to an inflation-indexed
limit which is $10,000 for 1998. Salary-reduction SEPPs are available only if at
least 50% of the employees elect to have amounts contributed to the SEPP and if
the employer has 25 or fewer employees at all times during the preceding year.
New salary-reduction SEPPs may not be established after 1996.
Form 8902
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<PAGE> 60
An employee may also take a deduction for individual contributions to the IRA,
subject to the limits applicable to IRAs in general. Withdrawals from the IRAs
to which the employer contributes must be permitted. These withdrawals, however,
are subject to the general rules with respect to withdrawals from IRAs.
WITHHOLDING ON DISTRIBUTION
Distributions from tax-deferred annuities or qualified pension or profit sharing
plans that are eligible for "tax-free rollover" will be subject to an automatic
20% withholding unless such amounts are directly rolled over to an individual
retirement arrangement or another qualified plan. Federal income tax withholding
is required on annuity payments. However, recipients of annuity payments are
allowed to elect not to have the tax withheld. This election may be revoked at
any time and withholding would begin after that. If you do not give us your
taxpayer identification number any payments under the contract will
automatically be subject to withholding.
Form 8902
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<PAGE> 61
APPENDIX A
IRA DISCLOSURE STATEMENT
This statement is designed to help you understand the requirements of federal
tax law which apply to your individual retirement annuity (IRA), your Roth IRA,
your simplified employee pension IRA (SEPP-IRA) for employer contributions, your
Savings Incentive Match Plan for Employees (SIMPLE) IRA, or to one you purchase
for your spouse. You can obtain more information regarding your IRA either from
your sales representative or from any district office of the Internal Revenue
Service.
FREE LOOK PERIOD
The annuity contract offered by this prospectus gives you the opportunity to
return the contract for a full refund within 10 days after it is delivered. This
is a more liberal provision than is required in connection with IRAs. To
exercise this "free-look" provision write or call the address shown below:
The Ohio National Life Insurance Company
Variable Annuity Administration
P. O. Box 2669
Cincinnati, Ohio 45201
Telephone: 1-800-366-6654 -- 8:30 a.m. - 4:30 p.m. (Eastern time zone)
ELIGIBILITY REQUIREMENTS
IRAs are intended for all persons with earned compensation whether or not they
are covered under other retirement programs. Additionally if you have a
non-working spouse (and you file a joint tax return), you may establish an IRA
on behalf of your non-working spouse. A working spouse may establish his or her
own IRA. A divorced spouse receiving taxable alimony (and no other income) may
also establish an IRA.
CONTRIBUTIONS AND DEDUCTIONS
Contributions to your IRA will be deductible if you are not an "active
participant" in an employer maintained qualified retirement plan or you have
Adjusted Gross Income which does not exceed the "applicable dollar limit". IRA
(or SEPP-IRA) contributions must be made by no later than the time you file your
income tax return for that year. For a single taxpayer, the applicable dollar
limitation is $30,000, with the amount of IRA contribution which may be deducted
reduced proportionately for Adjusted Gross Income between $30,000-$40,000. For
married couples filing jointly, the applicable dollar limitation is $50,000,
with the amount of IRA contribution which may be deducted reduced
proportionately for Adjusted Gross Income between $50,000-$60,000. There is no
deduction allowed for IRA contributions when Adjusted Gross Income reaches
$40,000 for individuals and $60,000 for married couples filing jointly.
Contributions made by your employer to your SEPP-IRA are excludable from your
gross income for tax purposes in the calendar year for which the amount is
contributed. Certain employees who participate in a SEPP-IRA will be entitled to
elect to have their employer make contributions to their SEPP-IRA on their
behalf or to receive the contributions in cash. If the employee elects to have
contributions made on the employee's behalf to the SEPP, those funds are not
treated as current taxable income to the employee. Elective deferrals under a
SEPP-IRA are subject to an inflation-adjusted limit which is $10,000 for 1998.
Salary-reduction SEPP-IRAs (also called "SARSEPs") are available only if at
least 50% of the employees elect to have amounts contributed to the SEPP-IRA and
if the employer has 25 or fewer employees at all times during the preceding
year. New salary-reduction SEPPs may not be established after 1996.
The IRA maximum annual contribution and your tax deduction is limited to the
lesser of: (1) $2,000 or (2) 100% of your earned compensation. Contributions in
excess of the deduction limits may be subject to penalty. See below.
Form 8902
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<PAGE> 62
Under a SEPP-IRA agreement, the maximum annual contribution which your employer
may make on your behalf to a SEPP-IRA contract which is excludable from your
income is the lesser of 15% of your salary or $24,000. An employee who is a
participant in a SEPP-IRA agreement may make after-tax contributions to the
SEPP-IRA contract, subject to the contribution limits applicable to IRAs in
general. Those employee contributions will be deductible subject to the
deductibility rules described above.
The maximum tax deductible annual contribution that a divorced spouse with no
other income may make to an IRA is the lesser of (1) $2,000 or (2) 100% of
taxable alimony.
If you or your employer should contribute more than the maximum contribution
amount to your IRA or SEPP-IRA, the excess amount will be considered an "excess
contribution". You are permitted to withdraw an excess contribution from your
IRA or SEPP-IRA before your tax filing date without adverse tax consequences.
If, however, you fail to withdraw any such excess contribution before your tax
filing date, a 6% excise tax will be imposed on the excess for the tax year of
contribution.
Once the 6% excise tax has been imposed, an additional 6% penalty for the
following tax year can be avoided if the excess is (1) withdrawn before the end
of the following year, or (2) treated as a current contribution for the
following year. (See Premature Distributions for penalties imposed on withdrawal
when the contribution exceeds $2,000).
IRA FOR NON-WORKING SPOUSE
If you establish an IRA for yourself, you may also be eligible to establish an
IRA for your "non-working" spouse. In order to be eligible to establish such a
spousal IRA, you must file a joint tax return with your spouse and if your
non-working spouse has compensation, his/her compensation must be less than your
compensation for the year. Contributions of up to $2,000 each may be made to
your IRA and the spousal IRA if the combined compensation of you and your spouse
is at least equal to the amount contributed. If requirements for deductibility
(including income levels) are met, you will be able to deduct an amount equal to
the least of (i) the amount contributed to the IRA's; (ii) $4,000; or (iii) 100%
of your combined gross income.
Contributions in excess of the contribution limits may be subject to penalty.
See above under "Contributions and Deductions". If you contribute more than the
allowable amount, the excess portion will be considered an excess contribution.
The rules for correcting it are the same as discussed above for regular IRAs.
Other than the items mentioned in this section, all of the requirements
generally applicable to IRAs are also applicable to IRAs established for
non-working spouses.
ROLLOVER CONTRIBUTION
Once every year, you are permitted to withdraw any portion of the value of your
IRA or SEPP-IRA and reinvest it in another IRA or bond. Withdrawals may also be
made from other IRAs and contributed to this contract. This transfer of funds
from one IRA to another is called a "rollover" IRA. To qualify as a rollover
contribution, the entire portion of the withdrawal must be reinvested in another
IRA within 60 days after the date it is received. You will not be allowed a
tax-deduction for the amount of any rollover contribution.
A similar type of rollover to an IRA can be made with the proceeds of a
qualified distribution from a qualified retirement plan or tax-sheltered
annuity. Properly made, such a distribution will not be taxable until you
receive payments from the IRA created with it. Unless you were a self-employed
participant in the distributing plan, you may later roll over such a
contribution to another qualified retirement plan as long as you have not mixed
it with IRA (or SEPP-IRA) contributions you have deducted from your income. (You
may roll less than all of a qualified distribution into an IRA, but any part of
it not rolled over will be currently includable in your income without any
capital gains treatment.)
Form 8902
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<PAGE> 63
PREMATURE DISTRIBUTIONS
At no time can your interest in your IRA or SEPP-IRA be forfeited. To insure
that your contributions will be used for your retirement, the federal tax law
does not permit you to use your IRA or SEPP-IRA as security for a loan.
Furthermore, as a general rule, you may not sell or assign your interest in your
IRA or SEPP-IRA to anyone. Use of an IRA (or SEPP-IRA) as security or assignment
of it to another will invalidate the entire annuity. It then will be includable
in your income in the year it is invalidated and will be subject to a 10%
penalty tax if you are not at least age 59 1/2 or totally disabled. (You may,
however, assign your IRA or SEPP-IRA without penalty to your former spouse in
accordance with the terms of a divorce decree.)
You may surrender any portion of the value of your IRA (or SEPP-IRA). In the
case of a partial surrender which does not qualify as a rollover, the amount
withdrawn will be includable in your income and subject to the 10% penalty if
you are not at least age or 59 1/2 totally disabled unless you comply with
special rules requiring distributions to be made at least annually over your
life expectancy.
The 10% penalty tax does not apply to the withdrawal of an excess contribution
as long as the excess is withdrawn before the due date of your tax return.
Withdrawals of excess contributions after the due date of your tax return will
generally be subject to the 10% penalty unless the excess contribution results
from erroneous information from a plan trustee making an excess rollover
contribution or unless you are over age 59 1/2 or are disabled.
DISTRIBUTION AT RETIREMENT
Once you have attained age 59 1/2 (or have become totally disabled), you may
elect to receive a distribution of your IRA (or SEPP-IRA) regardless of when you
actually retire. You may elect to receive the distribution in either one sum or
under any one of the periodic payment options available under the contract. The
distributions from your IRA under any one of the periodic payment options or in
one sum will be treated as ordinary income as you receive them.
INADEQUATE DISTRIBUTIONS -- 50% TAX
Your IRA or SEPP-IRA is intended to provide retirement benefits over your
lifetime. Thus, federal law requires that you either (1) receive a lump-sum
distribution of your IRA by April 1 of the year following the year in which you
attain age 70 1/2 or (2) start to receive periodic payments by that date. If you
elect to receive periodic payments, those payments must be sufficient to pay out
the entire value of your IRA during your life expectancy (or over the joint life
expectancies of you and your spouse). If the payments are not sufficient to meet
these requirements, an excise tax of 50% will be imposed on the amount of any
underpayment.
DEATH BENEFITS
If you, (or your surviving spouse) die before receiving the entire value of your
IRA (or SEPP-IRA), the remaining interest must be distributed to your
beneficiary (or your surviving spouse's beneficiary) in one lump-sum within 5
years of death, or applied to purchase an immediate annuity for the beneficiary.
This annuity must be payable over the life expectancy of the beneficiary
beginning within one year after your or your spouse's death. If your spouse is
the designated beneficiary, he or she is treated as the owner of the IRA. If
minimum required distributions have begun, the entire amount must be distributed
at least as rapidly as if the owner had survived. A distribution of the balance
of your IRA upon your death will not be considered a gift for federal tax
purposes, but will be included in your gross estate for purposes of federal
estate taxes.
ROTH IRAS
Section 408A of the Code permits eligible individuals to contribute to a type of
IRA known as a "Roth IRA." Contributions may be made to a Roth IRA by taxpayers
with adjusted gross incomes of less than $160,000 for married individuals filing
jointly and less than $100,000 for single individuals. Married individuals
filing separately are not eligible to contribute to a Roth IRA. The maximum
amount of contributions allowable for any
Form 8902
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<PAGE> 64
taxable year to all Roth IRAs maintained by an individual is generally the
lesser of $2,000 and 100% of compensation for that year (the $2,000 limit is
phased out for incomes between $150,000 and $160,000 for married and between
$95,000 and $110,000 for singles). The contribution limit is reduced by the
amount of any contributions made to a non-Roth IRA. Contributions to a Roth IRA
are not deductible.
For taxpayers with adjusted gross income of $100,000 or less, all or part of
amounts in a non-Roth IRA may be converted, transferred or rolled over to a Roth
IRA. Some or all of the IRA value will typically be includable in the taxpayer's
gross income. If such a rollover, transfer or conversion occurred before 1/1/99,
the portion of the amount includable in gross income must be included in income
ratably over the next four years beginning with the year in which the
transaction occurred. Provided a rollover contribution meets the requirements
for IRAs under Section 408(d)(3) of the Code, a rollover may be made from a Roth
IRA to another Roth IRA.
UNDER SOME CIRCUMSTANCES, IT MAY NOT BE ADVISABLE TO ROLL OVER, TRANSFER OR
CONVERT ALL OR PART OF A NON-ROTH IRA TO A ROTH IRA. PERSONS CONSIDERING A
ROLLOVER, TRANSFER OR CONVERSION SHOULD CONSULT THEIR OWN TAX ADVISOR.
"Qualified distributions" from a Roth IRA are excludable from gross income. A
"qualified distribution" is a distribution that satisfies two requirements: (1)
the distribution must be made (a) after the owner of the IRA attains age 59 1/2;
(b) after the owner's death; (c) due to the owner's disability; or (d) for a
qualified first time homebuyer distribution within the meaning of Section
72(t)(2)(F) of the Code; and (2) the distribution must be made in the year that
is at least five years after the first year for which a contribution was made to
any Roth IRA established for the owner or five years after a rollover, transfer
or conversion was made from a non-Roth IRA to a Roth IRA. Distributions from a
Roth IRA that are not qualified distributions will be treated as made first from
contributions and then from earnings, and taxed generally in the same manner as
distributions from a non-Roth IRA.
Distributions from a Roth IRA need not commence at age 70 1/2. However, if the
owner dies before the entire interest in a Roth IRA is distributed, any
remaining interest in the contract must be distributed by December 31 of the
calendar year containing the fifth anniversary of the owner's death subject to
certain exceptions.
PROTOTYPE STATUS
The Internal Revenue Service has been requested to review the format of your
SEPP, and to issue an opinion letter to Ohio National Life stating that your IRA
qualifies as a prototype SEPP.
REPORTING TO THE IRS
Whenever you are liable for one of the penalty taxes discussed above (6% for
excess contributions, 10% for premature distributions or 50% for underpayments),
you must file Form 5329 with the Internal Revenue Service. The form is to be
attached to your federal income tax return for the tax year in which the penalty
applies. Normal contributions and distributions must be shown on your income tax
return for the year to which they relate.
Form 8902
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<PAGE> 65
ILLUSTRATION OF IRA FIXED ACCUMULATIONS
<TABLE>
<CAPTION>
AGE 60 AGE 65 AGE 70
GUARANTEED GUARANTEED GUARANTEED
SURRENDER VALUE SURRENDER VALUE SURRENDER VALUE
----------------------------- ----------------------------- -----------------------------
$2,000 $2,000 $2,000
$1,000 ONE TIME $1,000 ONE TIME $1,000 ONE TIME
CONTRACT ANNUAL LUMP SUM ANNUAL LUMP SUM ANNUAL LUMP SUM
ANNIVERSARY CONTRIBUTIONS CONTRIBUTION CONTRIBUTIONS CONTRIBUTION CONTRIBUTIONS CONTRIBUTION
----------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 925.35 $ 2,027.45 $ 925.35 $ 2,027.45 $ 925.35 $ 2,027.45
2 1,878.46 2,055.72 1,878.46 2,055.72 1,878.46 2,055.72
3 2,870.01 2,083.76 2,870.01 2,083.76 2,870.01 2,083.76
4 3,901.83 2,111.91 3,901.83 2,111.91 3,901.83 2,111.91
5 4,975.45 2,140.16 4,975.45 2,104.16 4,975.45 2,140.16
6 6,102.14 2,166.24 6,102.14 2,166.24 6,102.14 2,166.24
7 7,276.08 2,194.24 7,276.08 2,194.24 7,276.08 2,194.24
8 8,497.12 2,222.31 8,497.12 2,222.31 8,497.12 2,222.31
9 9,757.56 2,253.98 9,757.56 2,253.98 9,757.56 2,253.98
10 11,055.81 2,286.60 11,055.81 2,286.60 11,055.81 2,286.60
15 18,155.17 2,464.97 18,155.17 2,464.97 18,155.17 2,464.97
20 26,385.27 2,671.76 26,385.27 2,671.76 26,385.27 2,671.76
25 35,926.22 2,911.48 35,926.22 2,911.48 35,926.22 2,911.48
30 46,986.79 3,189.39 46,986.79 3,189.39 46,986.79 3,189.39
35 59,809.02 3,511.55 59,809.02 3,511.55 59,809.02 3,511.55
40 74,673.50 3,885.03 74,673.50 3,885.03 74,673.50 3,885.03
45 91,905.51 4,318.00 91,905.51 4,318.00 91,905.51 4,318.00
50 111,882.13 4,819.92 111,882.13 4,819.92 111,882.13 4,819.92
55 135,040.51 5,401.79 135,040.51 5,401.79 135,040.51 5,401.79
60 161,887.42 6,076.34 161,887.42 6,076.34 161,887.42 6,076.34
65 193,010.34 6,858.32 193,010.34 6,858.32
70 229,090.34 7,764.85
</TABLE>
- Guaranteed Interest Rate: 3.00% is applicable to each contract anniversary.
- The Surrender Value is the Accumulation Values less the Contingent Deferred
Sales Charge.
Form 8902
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<PAGE> 66
STATEMENT OF ADDITIONAL INFORMATION CONTENTS
<TABLE>
<S> <C>
Custodian
Independent Certified Public Accountants
Underwriter
Calculation of Money Market Subaccount Yield
Total Return
Loans under Tax-Sheltered Annuities
Financial Statements for VAA and Ohio National Life
</TABLE>
Form 8902
31
<PAGE> 67
PART B
STATEMENT OF ADDITIONAL INFORMATION
<PAGE> 68
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
February , 2001
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 February , 2001. 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
Loans Under Tax-sheltered Annuities..................5
Financial Statements.................................6
"FLEX VA"
<PAGE> 69
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, 1999 and for the periods
indicated and our consolidated financial statements as of December 31, 1999 and
1998 and for the periods indicated have been included in reliance upon the
reports 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>
1999 None $14,608,378 None $2,619,496
1998 None 6,658,441 None 827,720
1997 $ 903,146 2,997,646 $ 89,572 297,299
</TABLE>
2
<PAGE> 70
CALCULATION OF MONEY MARKET YIELD
The annualized current yield of the Money Market subaccount for the seven days
ended on December 31, 1999, was 4.22%. 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> 71
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, 1999
(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 3.47% 3.76% 3.43% 5.50% 5.50% 03-20-80
Equity 18.10% 15.91% 10.80% 9.53% 9.53% 01-14-71
Bond (0.91%) 7.77% 5.63% 6.54% 6.54% 11-02-82
Omni 9.71% 12.61% 9.56% 9.85% 9.85% 09-10-84
S & P 500 Index 23.77% N/A N/A 27.26% 27.26% 01-03-97
International 64.93% 16.17% N/A 16.64% 16.64% 04-30-93
International Small Company 105.43% N/A N/A 23.65% 23.65% 03-31-95
Capital Appreciation 4.88% 11.34% N/A 10.58% 10.58% 05-01-94
Small Cap 103.80% 29.30% N/A 29.51% 29.51% 05-01-94
Aggressive Growth 4.21% N/A N/A 9.37% 9.37% 03-31-95
Growth & Income 59.85% N/A N/A 31.49% 31.49% 01-03-97
Capital Growth 198.14% N/A N/A 103.86% 103.86% 05-01-98
High Income Bond 0.44% N/A N/A (0.48%) (0.48%) 05-01-98
Equity Income 16.94% N/A N/A 13.05% 13.05% 05-01-98
Blue Chip 4.30% N/A N/A 3.55% 3.55% 05-01-98
Strategic Income (6.23%) N/A N/A (0.65%) (0.65%) 01-03-97
Relative Value 5.85% N/A N/A 16.57% 16.57% 01-03-97
Firstar Growth & Income 0.26% N/A N/A 3.17% 3.17% 01-03-97
Goldman Sachs Variable:
G.S. Growth and Income 3.85% N/A N/A 3.97% (3.56%) 01-02-98
G.S. Core U.S. Equity 22.47% N/A NIA 19.03% 15.85% 01-02-98
G.S. Capital Growth 25.26% N/A N/A 22.67% 24.61% 01-02-98
G.S. Global Income (2.48%) N/A N/A 2.06% 3.33% 01-02-98
Janus Aspen Series:
Growth 41.86% 27.97% N/A 22.45% 36.51% 09-13-93
International Growth 79.60% 31.28 N/A 26.65% 43.07%) 05-02-94
Worldwide Growth 62.02% 31.63% N/A 27.80% 39.60% 09-13-93
Balanced 24.89% 22.84% N/A 18.85% 26.91% 09-13-93
J.P. Morgan Series Trust II:
Small Company 42.26% N/A N/A 19.87% 13.21% 01-03-95
Lazard Retirement Series:
Small Cap 3.29% N/A N/A (1.48%) 3.72% 11-04-97
Emerging Markets 47.03% N/A N/A 2.74% 41.46% 11-04-97
Mitchell Hutchins Series Trust:
Strategic Income 1.63% N/A N/A 2.27% 1.00% 09-28-98
Growth & Income 16.96% 20.53% N/A 10.88% 12.00% 01-02-92
Tactical Allocation 17.39% N/A N/A 34.75% 11.15% 09-28-98
Small Cap 9.75% N/A N/A 27.64% 18.07% 09-28-98
Prudential Series Fund:
Prudential Jennison 35.38% N/A N/A 25.43% N/A 04-30-95
20/20 Focus N/A N/A N/A N/A N/A 05-01-99
Salomon Brothers Variable:
Capital 20.28% N/A N/A 19.90% 17.83% 01-02-98
Total Return (0.71%) N/A N/A 1.99% 1.06% 01-02-98
Investors 10.00% N/A N/A 10.30% 8.28% 01-02-98
Strong Variable Insurance:
Mid Cap Growth II 87.08% N/A N/A 44.08% 60.89% 12-31-96
Opportunity II 32.91% 21.29% N/A 18.55% 17.01% 05-08-92
Schafer Value II (4.30%) N/A N/A (2.17%) (4.82%) 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, 1999. The Goldman Sachs Variable,
Janus Aspen Series, J.P. Morgan Series Trust II, 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 Prudential Series Fund was
added January 3, 2000. The PBHG and VIP funds were added to VAA May 1, 2000.
4
<PAGE> 72
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> 73
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND CONTRACT OWNERS' EQUITY
December 31, 1999
<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).......... $149,442,731 $33,652,464 $11,170,875 $79,740,845 $ 58,005,163
============ =========== =========== =========== ============
Contract owners' equity
Contracts in accumulation period (note 3)............. $148,477,649 $33,546,854 $10,831,854 $79,597,729 $ 58,001,922
Annuity reserves for contract in payment period....... 965,082 105,610 339,021 143,116 3,241
------------ ----------- ----------- ----------- ------------
Total contract owners' equity........................... $149,442,731 $33,652,464 $11,170,875 $79,740,845 $ 58,005,163
============ =========== =========== =========== ============
<CAPTION>
CAPITAL
APPRECIATION SMALL CAP
SUBACCOUNT SUBACCOUNT
------------ -------------
<S> <C> <C>
Assets -- Investments at market value (note 2).......... $26,353,886 $58,427,116
=========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $26,314,978 $58,427,116
Annuity reserves for contract in payment period....... 38,908 0
----------- -----------
Total contract owners' equity........................... $26,353,886 $58,427,116
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
SMALL AGGRESSIVE CORE GROWTH & S&P 500
COMPANY GROWTH GROWTH INCOME INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $ 12,018,104 $ 6,352,824 $ 9,625,081 $49,157,402 $101,435,703
============ =========== =========== =========== ============
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 12,018,104 $ 6,352,824 $ 9,625,081 $49,110,694 $101,427,640
Annuity reserves for contract in payment period....... 0 0 0 46,708 8,063
------------ ----------- ----------- ----------- ------------
Total contract owners' equity........................... $ 12,018,104 $ 6,352,824 $ 9,625,081 $49,157,402 $101,435,703
============ =========== =========== =========== ============
<CAPTION>
SOCIAL STRATEGIC
AWARENESS INCOME
SUBACCOUNT SUBACCOUNT
------------ -------------
<S> <C> <C>
Assets -- Investments at market value (note 2).......... $ 1,296,269 $ 1,247,783
=========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 1,296,269 $ 1,247,783
Annuity reserves for contract in payment period....... 0 0
----------- -----------
Total contract owners' equity........................... $ 1,296,269 $ 1,247,783
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIRSTAR
GROWTH & RELATIVE EQUITY HIGH INCOME
INCOME VALUE BLUE CHIP INCOME BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ----------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $ 1,211,235 $11,880,270 $ 2,817,745 $ 2,066,378 $ 2,552,152
============ =========== =========== ============ ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 1,211,235 $11,880,270 $ 2,817,745 $ 2,066,378 $ 2,552,152
============ =========== =========== ============ ===========
<CAPTION>
CAPITAL DOW TARGET 10
GROWTH JANUARY
SUBACCOUNT SUBACCOUNT
------------ -------------
<S> <C> <C>
Assets -- Investments at market value (note 2).......... $15,537,426 $ 351,081
=========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $15,537,426 $ 351,081
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
121
<PAGE> 74
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND CONTRACT OWNERS' EQUITY
December 31, 1999
<TABLE>
<CAPTION>
DOW TARGET 10 DOW TARGET 10 DOW TARGET 10 DOW TARGET 10
FEBRUARY MARCH APRIL MAY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $1,160,641 $1,015,921 $ 1,255,607 $ 716,463
========== ========== =========== ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $1,160,641 $1,015,921 $ 1,255,607 $ 716,463
========== ========== =========== ==========
<CAPTION>
DOW TARGET 10 DOW TARGET 10 DOW TARGET 10
JUNE JULY AUGUST
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- -------------
<S> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $1,156,960 $989,093 $ 804,346
========== ======== ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $1,156,960 $989,093 $ 804,346
========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
DOW TARGET 10 DOW TARGET 10 DOW TARGET 10 DOW TARGET 10
SEPTEMBER OCTOBER NOVEMBER DECEMBER
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $1,466,806 $1,395,173 $ 1,326,480 $1,260,635
========== ========== =========== ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $1,466,806 $1,395,173 $ 1,326,480 $1,260,635
========== ========== =========== ==========
<CAPTION>
DOW TARGET 5 DOW TARGET 5 DOW TARGET 5
SEPTEMBER OCTOBER NOVEMBER
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- -------------
<S> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $ 80,810 $185,160 $ 103,570
========== ======== ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 80,810 $185,160 $ 103,570
========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY INVESTMENTS
---------------------------------------------
DOW TARGET 5 VIP VIP EQUITY VIP HIGH
DECEMBER GROWTH INCOME INCOME BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $ 106,179 $11,693,784 $ 7,782,417 $2,659,367
========== =========== =========== ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 106,179 $11,693,874 $ 7,782,417 $2,659,367
========== =========== =========== ==========
<CAPTION>
JP MORGAN
TRUST II
-------------
SMALL CO.
SUBACCOUNT
-------------
<S> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $2,648,148
==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $2,648,148
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
122
<PAGE> 75
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF ASSETS AND CONTRACT OWNERS' EQUITY
December 31, 1999
<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).......... $45,864,481 $7,924,891 $33,556,812 $40,498,569
=========== ========== =========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $45,864,481 $7,924,891 $33,556,812 $40,498,569
=========== ========== =========== ===========
<CAPTION>
SALOMON BROTHERS VARIABLE SERIES
------------------------------------
TOTAL
CAPITAL RETURN INVESTORS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
<S> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $1,109,850 $1,423,486 $451,956
========== ========== ========
Contract owners' equity
Contracts in accumulation period (note 3)............. $1,109,850 $1,423,486 $451,956
========== ========== ========
</TABLE>
<TABLE>
<CAPTION>
STRONG VARIABLE FUNDS
--------------------------------------
OPPORTUNITY SCHAFER MID-CAP
II VALUE II GROWTH II
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- -----------
<S> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $ 2,919,327 $ 525,492 $15,331,648
=========== ========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 2,919,327 $ 525,492 $15,331,648
=========== ========== ===========
<CAPTION>
MORGAN STANLEY UNIVERSAL FUNDS
--------------------------------------------------
FIXED US REAL EMERGING
INCOME ESTATE VALUE MKT. DEBT
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $ 4,183,630 $ 442,809 $ 904,003 $180,025
=========== ========== ========== ========
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 4,183,630 $ 442,809 $ 904,003 $180,025
=========== ========== ========== ========
</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).......... $ 2,770,444 $4,821,135 $ 762,833 $ 4,464,479
=========== ========== =========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 2,770,444 $4,821,135 $ 762,833 $ 4,464,479
=========== ========== =========== ===========
<CAPTION>
LAZARD RETIREMENT
-----------------------
EMERGING SMALL
MARKET CAP
SUBACCOUNT SUBACCOUNT
---------- ----------
<S> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $1,790,855 $ 136,940
========== ==========
Contract owners' equity
Contracts in accumulation period (note 3)............. $1,790,855 $ 136,940
========== ==========
</TABLE>
<TABLE>
<CAPTION>
SERIES TRUST PAINEWEBBER MUTUAL FUNDS
----------------------------------------------------
STRATEGIC GROWTH & TACTICAL
INCOME INCOME ALLOCATION SMALL CAP
CLASS I CLASS I CLASS I CLASS I
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets -- Investments at market value (note 2).......... $ 125,906 $ 609,888 $ 2,169,417 $ 128,789
=========== ========== =========== ===========
Contract owners' equity
Contracts in accumulation period (note 3)............. $ 125,906 $ 609,888 $ 2,169,417 $ 128,789
=========== ========== =========== ===========
<CAPTION>
<S> <C> <C>
Assets -- Investments at market value (note 2)..........
Contract owners' equity
Contracts in accumulation period (note 3).............
</TABLE>
The accompanying notes are an integral part of these financial statements.
123
<PAGE> 76
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
EQUITY MONEY MARKET BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- -------------------------- -------------------------
1999 1998 1999 1998 1999 1998
------------ ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends.................. $ 367,500 $ 1,441,507 $ 1,207,425 $ 500,680 $ 724,583 $ 525,455
Risk & administrative expense (note
4)................................. (1,324,284) (1,251,708) (292,179) (110,522) (183,260) (87,915)
------------ ----------- ----------- ----------- ----------- ----------
Net investment activity.......... (956,784) 189,799 915,246 390,158 541,323 437,540
------------ ----------- ----------- ----------- ----------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains........... 57,345,763 2,181,204 0 0 0 0
Realized gain (loss)............... 5,346,789 2,970,607 (26,060) (14,941) (59,863) 17,380
Unrealized gain (loss)............. (40,259,498) (363,011) 0 0 (608,925) (152,308)
------------ ----------- ----------- ----------- ----------- ----------
Net gain (loss) on investments... 22,433,054 4,788,800 (26,060) (14,941) (668,788) (134,928)
------------ ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in
contract owners' equity from
operations.................. $ 21,476,270 $ 4,978,599 $ 889,186 $ 375,217 $ (127,465) $ 302,612
============ =========== =========== =========== =========== ==========
<CAPTION>
OMNI
SUBACCOUNT
------------------------
1999 1998
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends.................. $1,760,615 $2,270,073
Risk & administrative expense (note
4)................................. (909,948) (912,754)
---------- ----------
Net investment activity.......... 850,667 1,357,319
---------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains........... 2,739,976 13,227
Realized gain (loss)............... 3,764,411 1,000,905
Unrealized gain (loss)............. 348,570 (7,903)
---------- ----------
Net gain (loss) on investments... 6,852,957 1,006,229
---------- ----------
Net increase (decrease) in
contract owners' equity from
operations.................. $7,703,624 $2,363,548
========== ==========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL CAPITAL APPRECIATION SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------------- -------------------------- -------------------------
1999 1998 1999 1998 1999 1998
------------ ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends.................. $ 0 $ 2,090,475 $ 812,415 $ 579,186 $ 0 $ 0
Risk & administrative expense (note
4)................................. (452,341) (577,205) (303,792) (246,166) (389,759) (232,830)
------------ ----------- ----------- ----------- ----------- ----------
Net investment activity.......... (452,341) 1,513,270 508,623 333,020 (389,759) (232,830)
------------ ----------- ----------- ----------- ----------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains........... 0 2,018,195 2,454,070 1,968,462 14,914,361 339
Realized gain (loss)............... (385,838) (317,892) 87,464 115,918 1,152,116 78,725
Unrealized gain (loss)............. 23,896,749 (1,590,338) (1,676,010) (1,450,953) 13,526,439 2,368,444
------------ ----------- ----------- ----------- ----------- ----------
Net gain (loss) on investments... 23,510,911 109,965 865,524 633,427 29,592,916 2,447,508
------------ ----------- ----------- ----------- ----------- ----------
Net increase in contract
owners' equity from
operations.................. $ 23,058,570 $ 1,623,235 $ 1,374,147 $ 966,447 $29,203,157 $2,214,678
============ =========== =========== =========== =========== ==========
<CAPTION>
INTERNATIONAL
SMALL COMPANY
SUBACCOUNT
------------------------
1999 1998
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends.................. $ 0 $ 161,217
Risk & administrative expense (note
4)................................. (75,308) (61,043)
---------- ----------
Net investment activity.......... (75,308) 100,174
---------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains........... 1,140,089 475,985
Realized gain (loss)............... 73,689 3,742
Unrealized gain (loss)............. 4,691,729 (490,547)
---------- ----------
Net gain (loss) on investments... 5,905,507 (10,820)
---------- ----------
Net increase in contract
owners' equity from
operations.................. $5,830,199 $ 89,354
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
124
<PAGE> 77
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CORE GROWTH GROWTH & INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------- ---------------------- ------------------------
1999 1998 1999 1998 1999 1998
--------- --------- ---------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 0 $ 0 $ 0 $ 0 $ 64,837 $ 153,872
Risk & administrative expense (note 4)...... (70,010) (65,184) (57,096) (36,181) (340,466) (157,261)
--------- --------- ---------- -------- ----------- ---------
Net investment activity................ (70,010) (65,184) (57,096) (36,181) (275,629) (3,389)
--------- --------- ---------- -------- ----------- ---------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 457,472 2,012,148 0 7,053,581 0
Realized gain (loss)..................... (107,513) 9,963 199,621 50,716 214,196 20,399
Unrealized gain (loss)................... 384,427 (56,102) 2,402,419 286,587 10,001,873 628,348
--------- --------- ---------- -------- ----------- ---------
Net gain on investments................ 276,914 411,333 4,614,188 337,303 17,269,650 648,747
--------- --------- ---------- -------- ----------- ---------
Net increase in contract owners'
equity from operations............ $ 206,904 $ 346,149 $4,557,092 $301,122 $16,994,021 $ 645,358
========= ========= ========== ======== =========== =========
<CAPTION>
S&P 500 INDEX
SUBACCOUNT
-------------------------
1999 1998
----------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends........................ $ 1,876,213 $ 562,393
Risk & administrative expense (note 4)...... (836,727) (218,142)
----------- ----------
Net investment activity................ 1,039,486 344,251
----------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 7,391,106 1,546,971
Realized gain (loss)..................... 526,448 67,888
Unrealized gain (loss)................... 7,917,365 3,394,871
----------- ----------
Net gain on investments................ 15,834,919 5,009,730
----------- ----------
Net increase in contract owners'
equity from operations............ $16,874,405 $5,353,981
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
SOCIAL AWARENESS STRATEGIC INCOME FIRSTAR GROWTH & INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------- ---------------------- ------------------------
1999 1998 1999 1998 1999 1998
--------- --------- ---------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 6,362 $ 10,934 $ 101,675 $120,659 $ 14,876 $ 40,131
Risk & administrative expense (note 4)...... (16,419) (21,454) (21,226) (22,771) (16,856) (15,173)
--------- --------- ---------- -------- ----------- ---------
Net investment activity................ (10,057) (10,520) 80,449 97,888 (1,980) 24,958
--------- --------- ---------- -------- ----------- ---------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 0 0 479 0 5,463
Realized gain (loss)..................... (356,428) (123,673) (81,875) (10,862) (5,429) (4,370)
Unrealized gain (loss)................... 524,015 (592,163) (91,767) (138,208) 14,492 (23,571)
--------- --------- ---------- -------- ----------- ---------
Net gain (loss) on investments......... 167,587 (715,836) (173,642) (148,591) 9,063 (22,478)
--------- --------- ---------- -------- ----------- ---------
Net (decrease) increase in contract
owners' equity from operations.... $ 157,530 $(726,356) $ (93,193) $(50,703) $ 7,083 $ 2,480
========= ========= ========== ======== =========== =========
<CAPTION>
RELATIVE VALUE
SUBACCOUNT
-------------------------
1999 1998
----------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends........................ $ 92,781 $ 82,693
Risk & administrative expense (note 4)...... (153,761) (95,392)
----------- ----------
Net investment activity................ (60,980) (12,699)
----------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 91,524
Realized gain (loss)..................... 241,198 66,563
Unrealized gain (loss)................... 434,077 1,016,582
----------- ----------
Net gain (loss) on investments......... 675,275 1,174,669
----------- ----------
Net (decrease) increase in contract
owners' equity from operations.... $ 614,295 $1,161,970
=========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
125
<PAGE> 78
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
BLUE CHIP EQUITY INCOME HIGH INCOME BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ ------------------------
1999 1998(a) 1999 1998(a) 1999 1998(a)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 9,165 $ 1,184 $ 10,011 $ 614 $103,449 $ 8,343
Risk & administrative expense (note 4)...... (20,719) (2,525) (11,030) (220) (18,210) (838)
-------- -------- -------- ------ -------- -------
Net investment activity................ (11,554) (1,341) (1,019) 394 85,239 7,505
-------- -------- -------- ------ -------- -------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 31,583 0 0 0 0 775
Realized gain (loss)..................... 46,166 532 4,306 215 (21,329) 378
Unrealized gain (loss)................... (21,821) 48,463 158,259 6,457 (67,091) (3,712)
-------- -------- -------- ------ -------- -------
Net gain (loss) on investments......... 55,928 48,995 162,565 6,672 (88,420) (2,559)
-------- -------- -------- ------ -------- -------
Net (decrease) increase in contract
owners' equity from operations.... $ 44,374 $ 47,654 $161,546 $7,066 $ (3,181) $ 4,946
======== ======== ======== ====== ======== =======
<CAPTION>
CAPITAL GROWTH
SUBACCOUNT
------------------------
1999 1998(a)
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends........................ $ 0 $ 0
Risk & administrative expense (note 4)...... (48,317) (294)
---------- ---------
Net investment activity................ (48,317) (294)
---------- ---------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 1,716,266 0
Realized gain (loss)..................... 957,003 (1,432)
Unrealized gain (loss)................... 2,785,132 30,958
---------- ---------
Net gain (loss) on investments......... 5,458,401 29,526
---------- ---------
Net (decrease) increase in contract
owners' equity from operations.... $5,410,084 $ 29,232
========== =========
</TABLE>
<TABLE>
<CAPTION>
DOW TARGET 10
----------------------------------------------------------------------------------
JANUARY FEBRUARY MARCH APRIL MAY JUNE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ----------
1999(b) 1998(b) 1999(b) 1998(b) 1999(b) 1998(b)
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends...................... $ 6,866 $ 18,796 $ 12,528 $ 19,069 $ 8,029 $ 11,504
Risk & administrative expense (note 4).... (3,651) (14,891) (12,396) (15,328) (6,672) (8,946)
------------ -------- -------- --------- --------- ---------
Net investment activity.............. 3,215 3,905 132 3,741 1,357 2,558
------------ -------- -------- --------- --------- ---------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains............... 2,452 28,815 36,126 17,860 0 0
Realized gain (loss)................... 10,503 16,546 16,884 (43,006) (19,470) (7,729)
Unrealized gain (loss)................. (8,237) 10,023 (80,401) (132,892) (126,311) (151,575)
------------ -------- -------- --------- --------- ---------
Net gain (loss) on investments....... 4,718 55,384 (27,391) (158,038) (145,781) (159,304)
------------ -------- -------- --------- --------- ---------
Net (decrease) increase in
contract owners' equity from
operations...................... $ 7,933 $ 59,289 $(27,259) $(154,297) $(144,424) $(156,746)
============ ======== ======== ========= ========= =========
<CAPTION>
DOW TARGET 10
------------------------
JULY AUGUST
SUBACCOUNT SUBACCOUNT
---------- ----------
1999(b) 1998(b)
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends...................... $ 10,380 $ 8,259
Risk & administrative expense (note 4).... (6,227) (4,268)
---------- ---------
Net investment activity.............. 4,153 3,991
---------- ---------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains............... 0 0
Realized gain (loss)................... (12,827) (17,755)
Unrealized gain (loss)................. (123,094) (114,144)
---------- ---------
Net gain (loss) on investments....... (135,921) (131,899)
---------- ---------
Net (decrease) increase in
contract owners' equity from
operations...................... $ (131,768) $(127,908)
========== =========
</TABLE>
---------------
(a) Period from May 1, 1998 date of commencement of operations.
(b) See Note 7. (continued)
The accompanying notes are an integral part of these financial statements.
126
<PAGE> 79
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
DOW TARGET 10 (CONTINUED) DOW TARGET 5
---------------------------------------------------- ------------------------
SEPTEMBER OCTOBER NOVEMBER DECEMBER SEPTEMBER OCTOBER
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
1999(b) 1999(b) 1999(b) 1999(b) 1999(b) 1999(b)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 9,145 $ 9,194 $ 4,173 $ 832 $ 670 $ 1,297
Risk & administrative expense (note 4)...... (4,787) (3,484) (1,791) (589) (281) (580)
--------- --------- -------- ------- ---------- ----------
Net investment activity................ 4,358 5,710 2,382 243 389 717
--------- --------- -------- ------- ---------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 0 0 0 0 0
Realized gain (loss)..................... (8,391) 1,458 490 (1,437) (6,411) (1,590)
Unrealized gain (loss)................... (130,265) (78,580) (6,279) 9,617 (15,253) (30,000)
--------- --------- -------- ------- ---------- ----------
Net gain (loss) on investments......... (138,656) (77,122) (5,789) 8,180 (21,664) (31,590)
--------- --------- -------- ------- ---------- ----------
Net (decrease) increase in contract
owners' equity from operations.... $(134,298) $ (71,412) $ (3,407) $ 8,423 $ (21,275) $ (30,873)
========= ========= ======== ======= ========== ==========
<CAPTION>
DOW TARGET 5
------------------------
NOVEMBER DECEMBER
SUBACCOUNT SUBACCOUNT
---------- ----------
1999(b) 1999(b)
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends........................ $ 437 $ 202
Risk & administrative expense (note 4)...... (191) (49)
-------- --------
Net investment activity................ 246 153
-------- --------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 0
Realized gain (loss)..................... 326 (142)
Unrealized gain (loss)................... (1,347) 194
-------- --------
Net gain (loss) on investments......... (1,021) 52
-------- --------
Net (decrease) increase in contract
owners' equity from operations.... $ (775) $ 205
======== ========
</TABLE>
<TABLE>
<CAPTION>
MONTGOMERY ASSET FIDELITY INVESTMENTS
---------------------------------------------------- ------------------------
EMERGING MARKET SMALL CAP OPPORTUNITY VIP GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ ------------------------
1999 1998 1999 1998(a) 1999 1998
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 0 $ 1,515 $ 0 $ 0 $ 9,480 $ 6,464
Risk & administrative expense (note 4)...... (10,872) (10,644) (1,053) (204) (107,075) (36,874)
--------- --------- -------- ------- ---------- ----------
Net investment activity................ (10,872) (9,129) (1,053) (204) (97,595) (30,410)
--------- --------- -------- ------- ---------- ----------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 0 0 0 596,051 169,084
Realized gain (loss)..................... (172,773) (105,907) 5,705 2,069 216,905 32,996
Unrealized gain (loss)................... 359,922 (288,678) (10,248) 10,248 2,075,658 805,443
--------- --------- -------- ------- ---------- ----------
Net gain (loss) on investments......... 187,149 (394,585) (4,543) 12,317 2,888,614 1,007,523
--------- --------- -------- ------- ---------- ----------
Net (decrease) increase in contract
owners' equity from operations.... $ 176,277 $(403,714) $ (5,596) $12,113 $2,791,019 $ 977,113
========= ========= ======== ======= ========== ==========
<CAPTION>
FIDELITY INVESTMENTS
------------------------
VIP EQUITY INCOME
SUBACCOUNT
------------------------
1999 1998
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends........................ $ 87,245 $ 26,915
Risk & administrative expense (note 4)...... (95,378) (47,574)
-------- --------
Net investment activity................ (8,133) (20,659)
-------- --------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 192,859 95,785
Realized gain (loss)..................... 57,650 15,254
Unrealized gain (loss)................... (35,430) 217,112
-------- --------
Net gain (loss) on investments......... 215,079 328,151
-------- --------
Net (decrease) increase in contract
owners' equity from operations.... $206,946 $307,492
======== ========
</TABLE>
---------------
(a) Period from May 1, 1998 date of commencement of operations.
(b) See Note 7. (continued)
The accompanying notes are an integral part of these financial statements.
127
<PAGE> 80
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
FIDELITY INVESTMENTS (CONT.) JP MORGAN TRUST II
----------------------------- ----------------------
VIP HIGH INCOME BOND SMALL COMPANY
SUBACCOUNT SUBACCOUNT
----------------------------- ----------------------
1999 1998 1999 1998(a)
------------- ------------ ---------- --------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................... $ 282,297 $ 104,824 $ 1,039 $ 714
Risk & administrative expense (note 4)......... (43,888) (28,705) (18,307) (1,554)
---------- --------- ---------- --------
Net investment activity................... 238,409 76,119 (17,268) (840)
---------- --------- ---------- --------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains.................... 10,553 66,607 52,780 11,588
Realized gain (loss)........................ (143,416) (22,981) 44,699 (689)
Unrealized gain (loss)...................... 86,432 (301,337) 682,935 37,863
---------- --------- ---------- --------
Net gain (loss) on investments............ (46,431) (257,711) 780,414 48,762
---------- --------- ---------- --------
Net (decrease) increase in contract
owners' equity from operations....... $ 191,978 $(181,592) $ 763,146 $ 47,922
========== ========= ========== ========
<CAPTION>
JANUS ASPEN SERIES
-----------------------------------------------
GROWTH INTERNATIONAL GROWTH
SUBACCOUNT SUBACCOUNT
---------------------- ---------------------
1999 1998(a) 1999 1998(a)
---------- -------- ---------- -------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................... $ 54,963 $ 1,115 $ 2,289 $ 1,286
Risk & administrative expense (note 4)......... (210,236) (3,888) (29,968) (728)
---------- -------- ---------- -------
Net investment activity................... (155,273) (2,773) (27,679) 558
---------- -------- ---------- -------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains.................... 72,776 139 0 38
Realized gain (loss)........................ 909,173 46,760 2,562,214 14,859
Unrealized gain (loss)...................... 7,169,844 319,539 415,113 139
---------- -------- ---------- -------
Net gain (loss) on investments............ 8,151,793 366,438 2,977,327 15,036
---------- -------- ---------- -------
Net (decrease) increase in contract
owners' equity from operations....... $7,996,520 $363,665 $2,949,648 $15,594
========== ======== ========== =======
</TABLE>
<TABLE>
<CAPTION>
JANUS ASPEN SERIES (CONTINUED) SALOMON VARIABLE FUND SERIES
------------------------------------------------- -----------------------------------------------
WORLDWIDE GROWTH BALANCED CAPITAL TOTAL RETURN
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ---------------------- ---------------------- ---------------------
1999 1998(a) 1999 1998(a) 1999 1998(a) 1999 1998(a)
---------- --------- ---------- -------- ---------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends..... $ 20,230 $ 9,702 $ 620,194 $ 48,910 $ 5,231 $ 1,801 $ 36,491 $ 5,362
Risk & administrative
expense (note 4)...... (168,310) (7,118) (250,604) (10,847) (10,222) (402) (14,247) (825)
---------- --------- ---------- -------- ---------- -------- ---------- -------
Net investment
activity......... (148,080) 2,584 369,590 38,063 (4,991) 1,399 22,244 4,537
---------- --------- ---------- -------- ---------- -------- ---------- -------
Realized & Unrealized
gain (loss) on
investments:
Reinvested capital
gains............... 0 2,416 0 1,137 30,334 3,009 0 1,072
Realized gain
(loss).............. 3,244,178 36,214 80,815 8,538 22,197 762 (450) 829
Unrealized gain
(loss).............. 6,606,997 186,957 4,754,500 485,789 119,271 17,714 (44,241) 4,184
---------- --------- ---------- -------- ---------- -------- ---------- -------
Net gain (loss) on
investments...... 9,851,175 225,587 4,835,315 495,464 171,802 21,485 (44,691) 6,085
---------- --------- ---------- -------- ---------- -------- ---------- -------
Net (decrease)
increase in
contract
owners' equity
from
operations..... $9,703,095 $ 228,171 $5,204,905 $533,527 $ 166,811 $ 22,884 $ (22,447) $10,622
========== ========= ========== ======== ========== ======== ========== =======
</TABLE>
---------------
(a) Period from May 1, 1998 date of commencement of operations. (continued)
The accompanying notes are an integral part of these financial statements.
128
<PAGE> 81
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
SALOMON VARIABLE FUND
SERIES (CONTINUED) STRONG VARIABLE ANNUITY FUNDS
--------------------- --------------------------------------------------------------------
INVESTORS OPPORTUNITY SCHAFER VALUE MID-CAP GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------- ------------------- ------------------- ----------------------
1999 1998(a) 1999 1998(a) 1999 1998(a) 1999 1998(a)
--------- -------- -------- ------- -------- ------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends............ $ 2,294 $ 1,601 $ 0 $ 1,436 $ 3,663 $ 139 $ 2,045 $ 0
Risk & administrative expense
(note 4)..................... (6,571) (1,179) (20,474) (963) (3,312) (190) (56,288) (1,238)
--------- -------- -------- ------- -------- ------- ---------- --------
Net investment activity.... (4,277) 422 (20,474) 473 351 (51) (54,243) (1,238)
--------- -------- -------- ------- -------- ------- ---------- --------
Realized & Unrealized gain
(loss) on investments:
Reinvested capital gains..... 0 0 63,194 0 20,517 0 0 0
Realized gain (loss)......... 40,431 1,496 237,823 22,907 (18,877) 1,786 116,343 1,501
Unrealized gain (loss)....... 6,861 23,307 213,263 20,918 (21,364) 3,845 4,314,671 102,974
--------- -------- -------- ------- -------- ------- ---------- --------
Net gain (loss) on
investments............. 47,292 24,803 514,280 43,825 (19,724) 5,631 4,431,014 104,475
--------- -------- -------- ------- -------- ------- ---------- --------
Net (decrease) increase
in contract owners'
equity from
operations............ $ 43,015 $ 25,225 $493,806 $44,298 $(19,373) $ 5,580 $4,376,771 $103,237
========= ======== ======== ======= ======== ======= ========== ========
</TABLE>
<TABLE>
<CAPTION>
MORGAN STANLEY UNIVERSAL FUNDS
---------------------------------------------------------------------------------------------
FIXED INCOME US REAL ESTATE VALUE EMERGING MARKET DEBT
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------------- ------------------- ------------------- ----------------------
1999 1998(a) 1999 1998(a) 1999 1998(a) 1999 1998(a)
--------- -------- -------- ------- -------- ------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends............ $ 188,951 $ 14,820 $ 19,531 $ 1,946 $ 10,780 $ 5,516 $ 19,202 $ 841
Risk & administrative expense
(note 4)..................... (30,837) (836) (3,075) (256) (9,708) (1,037) (944) (14)
--------- -------- -------- ------- -------- ------- ---------- --------
Net investment activity.... 158,114 13,984 16,456 1,690 1,072 4,479 18,258 827
--------- -------- -------- ------- -------- ------- ---------- --------
Realized & Unrealized gain
(loss) on investments:
Reinvested capital gains..... 336 5,226 0 0 0 8,977 0 0
Realized gain (loss)......... (14,276) 13 1,866 (61) 705 1,409 3,051 42
Unrealized gain (loss)....... (190,943) (15,285) (27,171) (491) (52,452) (693) 3,666 (546)
--------- -------- -------- ------- -------- ------- ---------- --------
Net gain (loss) on
investments............. (204,883) (10,046) (25,305) (552) (51,747) 9,693 6,717 (504)
--------- -------- -------- ------- -------- ------- ---------- --------
Net (decrease) increase
in contract owners'
equity from
operations............ $ (46,769) $ 3,938 $ (8,849) $ 1,138 $(50,675) $14,172 $ 24,975 $ 323
========= ======== ======== ======= ======== ======= ========== ========
</TABLE>
---------------
(a) Period from May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
129
<PAGE> 82
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
GOLDMAN SACHS VIT FUNDS
--------------------------------------------------------------------------------
GROWTH & INCOME CORE US EQUITY GLOBAL INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ ------------------------
1999 1998(a) 1999 1998(a) 1999 1998(a)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 29,841 $ 6,481 $ 14,688 $ 3,505 $ 23,995 $ 2,398
Risk & administrative expense (note 4)...... (22,196) (2,219) (30,364) (2,745) (5,394) (239)
-------- ------- -------- ------- -------- -------
Net investment activity................ 7,645 4,262 (15,676) 760 18,601 2,159
-------- ------- -------- ------- -------- -------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 0 51,295 0 3,816 644
Realized gain (loss)..................... 3,654 (1,956) 33,847 1,045 (1,803) 57
Unrealized gain (loss)................... 31,312 14,203 479,377 79,395 (28,302) (2,172)
-------- ------- -------- ------- -------- -------
Net gain (loss) on investments......... 34,966 12,247 564,519 80,440 (26,289) (1,471)
-------- ------- -------- ------- -------- -------
Net (decrease) increase in contract
owners' equity from operations.... $ 42,611 $16,509 $548,843 $81,200 $ (7,688) $ 688
======== ======= ======== ======= ======== =======
<CAPTION>
GOLDMAN SACHS VIT FUNDS
------------------------
CAPITAL GROWTH
SUBACCOUNT
------------------------
1999 1998(a)
---------- ----------
<S> <C> <C>
Investment activity:
Reinvested dividends........................ $ 3,552 $ 2,050
Risk & administrative expense (note 4)...... (32,824) (3,490)
-------- --------
Net investment activity................ (29,272) (1,440)
-------- --------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 101,678 0
Realized gain (loss)..................... 50,556 7,124
Unrealized gain (loss)................... 557,373 110,809
-------- --------
Net gain (loss) on investments......... 709,607 117,933
-------- --------
Net (decrease) increase in contract
owners' equity from operations.... $680,335 $116,493
======== ========
</TABLE>
<TABLE>
<CAPTION>
LAZARD RETIREMENT FUNDS SERIES TRUST PAINEWEBBER MUTUAL FUNDS
------------------------ ----------------------------------------------------
EMERGING STRATEGIC GROWTH TACTICAL
MARKET SMALL CAP INCOME & INCOME ALLOCATION SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
1999(c) 1999(c) 1999(c) 1999(c) 1999(c) 1999(c)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends........................ $ 3,055 $ 164 $ 6,575 $ 2 $ 0 $ 4,148
Risk & administrative expense (note 4)...... (3,437) (237) (285) (1,688) (5,601) (199)
-------- ------- -------- ------- -------- -------
Net investment activity................ (382) (73) 6,290 (1,686) (5,601) 3,949
-------- ------- -------- ------- -------- -------
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains................. 0 1,772 0 0 139,770 0
Realized gain (loss)..................... 7,541 92 80 20 3,383 3,388
Unrealized gain (loss)................... 337,023 2,706 (6,631) 49,454 (8,939) 3,630
-------- ------- -------- ------- -------- -------
Net gain (loss) on investments......... 344,564 4,570 (6,551) 49,474 134,214 7,018
-------- ------- -------- ------- -------- -------
Net (decrease) increase in contract
owners' equity from operations.... $344,182 $ 4,497 $ (261) $47,788 $128,613 $10,967
======== ======= ======== ======= ======== =======
<CAPTION>
<S> <C> <C>
Investment activity:
Reinvested dividends........................
Risk & administrative expense (note 4)......
Net investment activity................
Realized & Unrealized gain (loss) on
investments:
Reinvested capital gains.................
Realized gain (loss).....................
Unrealized gain (loss)...................
Net gain (loss) on investments.........
Net (decrease) increase in contract
owners' equity from operations....
</TABLE>
---------------
(a) Period from May 1, 1998 date of commencement of operations.
(c) Period from July 1, 1999 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
130
<PAGE> 83
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
EQUITY MONEY MARKET BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- --------------------------
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity........ $ (956,784) $ 189,799 $ 915,246 $ 390,158 $ 541,323 $ 437,540
Reinvested capital gains....... 57,345,763 2,181,204 0 0 0 0
Realized gain (loss)........... 5,346,789 2,970,607 (26,060) (14,941) (59,863) 17,380
Unrealized gain (loss)......... (40,259,498) (363,011) 0 0 (608,925) (152,308)
------------ ------------ ------------ ------------ ----------- -----------
Net increase (decrease) in
contract owners' equity
from operations........... 21,476,270 4,978,599 889,186 375,217 (127,465) 302,612
------------ ------------ ------------ ------------ ----------- -----------
Equity transactions:
Sales:
Contract purchase
payments.................. 25,012,069 11,458,073 29,651,922 15,381,429 2,622,195 3,493,444
Transfers from fixed & other
subaccounts............... 16,149,737 4,018,120 229,183,384 19,865,502 1,928,222 2,139,647
------------ ------------ ------------ ------------ ----------- -----------
41,161,806 15,476,193 258,835,306 35,246,931 4,550,417 5,633,091
------------ ------------ ------------ ------------ ----------- -----------
Redemptions:
Withdrawals & surrenders
(note 5).................. 14,754,754 9,328,210 2,370,561 696,570 1,303,792 537,227
Annuity & death benefit
payments.................. 904,996 1,139,548 219,008 76,055 160,389 34,162
Transfers to fixed & other
subaccounts............... 14,120,013 5,629,381 242,655,888 22,718,469 1,948,322 1,120,365
------------ ------------ ------------ ------------ ----------- -----------
29,779,763 16,097,139 245,245,457 23,491,094 3,412,503 1,691,754
------------ ------------ ------------ ------------ ----------- -----------
Net equity transactions... 11,382,043 (620,946) 13,589,849 11,755,837 1,137,914 3,941,337
------------ ------------ ------------ ------------ ----------- -----------
Net change in contract
owners' equity....... 32,858,313 4,357,653 14,479,035 12,131,054 1,010,449 4,243,949
Contract owners' equity:
Beginning of period............ 116,584,418 112,226,765 19,173,429 7,042,375 10,160,426 5,916,477
------------ ------------ ------------ ------------ ----------- -----------
End of period.................. $149,442,731 $116,584,418 $ 33,652,464 $ 19,173,429 $11,170,875 $10,160,426
============ ============ ============ ============ =========== ===========
<CAPTION>
OMNI
SUBACCOUNT
---------------------------
1999 1998
------------ -----------
<S> <C> <C>
Investment activity:
Net investment activity........ $ 850,667 $ 1,357,319
Reinvested capital gains....... 2,739,976 13,227
Realized gain (loss)........... 3,764,411 1,000,905
Unrealized gain (loss)......... 348,570 (7,903)
------------ -----------
Net increase (decrease) in
contract owners' equity
from operations........... 7,703,624 2,363,548
------------ -----------
Equity transactions:
Sales:
Contract purchase
payments.................. 5,481,016 14,036,874
Transfers from fixed & other
subaccounts............... 3,819,869 4,779,261
------------ -----------
9,300,885 18,816,135
------------ -----------
Redemptions:
Withdrawals & surrenders
(note 5).................. 8,012,870 5,537,165
Annuity & death benefit
payments.................. 910,200 690,280
Transfers to fixed & other
subaccounts............... 15,329,002 4,994,854
------------ -----------
24,252,072 11,222,299
------------ -----------
Net equity transactions... (14,951,187) 7,593,836
------------ -----------
Net change in contract
owners' equity....... (7,247,563) 9,957,384
Contract owners' equity:
Beginning of period............ 86,988,408 77,031,024
------------ -----------
End of period.................. $ 79,740,845 $86,988,408
============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
131
<PAGE> 84
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
INTERNATIONAL CAPITAL APPRECIATION SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------- -------------------------- --------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity............. $ (452,341) $ 1,513,270 $ 508,623 $ 333,020 $ (389,759) $ (232,830)
Reinvested capital gains............ 0 2,018,195 2,454,070 1,968,462 14,914,361 339
Realized gain (loss)................ (385,838) (317,892) 87,464 115,918 1,152,116 78,725
Unrealized gain (loss).............. 23,896,749 (1,590,338) (1,676,010) (1,450,953) 13,526,439 2,368,444
----------- ----------- ----------- ----------- ----------- -----------
Net increase in contract owners'
equity from operations......... 23,058,570 1,623,235 1,374,147 966,447 29,203,157 2,214,678
----------- ----------- ----------- ----------- ----------- -----------
Equity transactions:
Sales:
Contract purchase payments....... 1,774,337 4,212,543 3,312,067 6,782,541 2,591,619 4,808,408
Transfers from fixed & other
subaccounts.................... 11,377,983 1,579,613 4,910,798 2,789,751 8,478,358 2,315,389
----------- ----------- ----------- ----------- ----------- -----------
13,152,320 5,792,156 8,222,865 9,572,292 11,069,977 7,123,797
----------- ----------- ----------- ----------- ----------- -----------
Redemptions:
Withdrawals & surrenders (note
5)............................. 4,665,586 3,698,490 2,329,006 892,779 3,012,698 1,199,702
Annuity & death benefit
payments....................... 350,040 330,156 320,878 135,114 273,715 126,555
Transfers to fixed & other
subaccounts.................... 22,069,694 11,527,756 6,411,425 2,345,418 4,396,009 2,503,007
----------- ----------- ----------- ----------- ----------- -----------
27,085,320 15,556,402 9,061,309 3,373,311 7,682,422 3,829,264
----------- ----------- ----------- ----------- ----------- -----------
Net equity transactions........ (13,933,000) (9,764,246) (838,444) 6,198,981 3,387,555 3,294,533
----------- ----------- ----------- ----------- ----------- -----------
Net change in contract
owners' equity............ 9,125,570 (8,141,011) 535,703 7,165,428 32,590,712 5,509,211
Contract owners' equity:
Beginning of period................. 48,879,593 57,020,604 25,818,183 18,652,755 25,836,404 20,327,193
----------- ----------- ----------- ----------- ----------- -----------
End of period....................... $58,005,163 $48,879,593 $26,353,886 $25,818,183 $58,427,116 $25,836,404
=========== =========== =========== =========== =========== ===========
<CAPTION>
INTERNATIONAL
SMALL COMPANY
SUBACCOUNT
-------------------------
1999 1998
----------- ----------
<S> <C> <C>
Investment activity:
Net investment activity............. $ (75,308) $ 100,174
Reinvested capital gains............ 1,140,089 475,985
Realized gain (loss)................ 73,689 3,742
Unrealized gain (loss).............. 4,691,729 (490,547)
----------- ----------
Net increase in contract owners'
equity from operations......... 5,830,199 89,354
----------- ----------
Equity transactions:
Sales:
Contract purchase payments....... 402,014 949,147
Transfers from fixed & other
subaccounts.................... 2,068,639 458,945
----------- ----------
2,470,653 1,408,092
----------- ----------
Redemptions:
Withdrawals & surrenders (note
5)............................. 366,129 220,074
Annuity & death benefit
payments....................... 51,364 47,792
Transfers to fixed & other
subaccounts.................... 1,247,550 1,098,960
----------- ----------
1,665,043 1,366,826
----------- ----------
Net equity transactions........ 805,610 41,266
----------- ----------
Net change in contract
owners' equity............ 6,635,809 130,620
Contract owners' equity:
Beginning of period................. 5,382,295 5,251,675
----------- ----------
End of period....................... $12,018,104 $5,382,295
=========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
132
<PAGE> 85
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CORE GROWTH GROWTH & INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ --------------------------
1999 1998 1999 1998 1999 1998
---------- ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity............... $ (70,010) $ (65,184) $ (57,096) $ (36,181) $ (275,629) $ (3,389)
Reinvested capital gains.............. 0 457,472 2,012,148 0 7,053,581 0
Realized gain (loss).................. (107,513) 9,963 199,621 50,716 214,196 20,399
Unrealized gain (loss)................ 384,427 (56,102) 2,402,419 286,587 10,001,873 628,348
---------- ---------- ---------- ---------- ----------- -----------
Net increase in contract owners'
equity from operations........... 206,904 346,149 4,557,092 301,122 16,994,021 645,358
---------- ---------- ---------- ---------- ----------- -----------
Equity transactions:
Sales:
Contract purchase payments......... 922,072 2,103,790 436,211 704,175 6,305,080 9,635,432
Transfers from fixed & other
subaccounts...................... 639,013 622,026 2,922,566 636,425 12,102,960 6,544,063
---------- ---------- ---------- ---------- ----------- -----------
1,561,085 2,725,816 3,358,777 1,340,600 18,408,040 16,179,495
---------- ---------- ---------- ---------- ----------- -----------
Redemptions:
Withdrawals & surrenders (note
5)............................... 521,985 302,085 486,302 406,459 1,721,642 488,326
Annuity & death benefit payments... 35,016 49,662 39,021 63,396 259,601 150,793
Transfers to fixed & other
subaccounts...................... 1,642,407 751,284 1,182,255 1,249,355 3,620,882 3,265,077
---------- ---------- ---------- ---------- ----------- -----------
2,199,408 1,103,031 1,707,578 1,719,210 5,602,125 3,904,196
---------- ---------- ---------- ---------- ----------- -----------
Net equity transactions.......... (638,323) 1,622,785 1,651,199 (378,610) 12,805,915 12,275,299
---------- ---------- ---------- ---------- ----------- -----------
Net change in contract owners'
equity...................... (431,419) 1,968,934 6,208,291 (77,488) 29,799,936 12,920,657
Contract owners' equity:
Beginning of period................... 6,784,243 4,815,309 3,416,790 3,494,278 19,357,466 6,436,809
---------- ---------- ---------- ---------- ----------- -----------
End of period......................... $6,352,824 $6,784,243 $9,625,081 $3,416,790 $49,157,402 $19,357,466
========== ========== ========== ========== =========== ===========
<CAPTION>
S&P 500 INDEX
SUBACCOUNT
---------------------------
1999 1998
------------ -----------
<S> <C> <C>
Investment activity:
Net investment activity............... $ 1,039,486 $ 344,251
Reinvested capital gains.............. 7,391,106 1,546,971
Realized gain (loss).................. 526,448 67,888
Unrealized gain (loss)................ 7,917,365 3,394,871
------------ -----------
Net increase in contract owners'
equity from operations........... 16,874,405 5,353,981
------------ -----------
Equity transactions:
Sales:
Contract purchase payments......... 23,816,081 13,945,843
Transfers from fixed & other
subaccounts...................... 43,061,688 14,612,814
------------ -----------
66,877,769 28,558,657
------------ -----------
Redemptions:
Withdrawals & surrenders (note
5)............................... 4,523,095 623,902
Annuity & death benefit payments... 483,763 129,913
Transfers to fixed & other
subaccounts...................... 13,424,078 3,168,210
------------ -----------
18,430,936 3,922,025
------------ -----------
Net equity transactions.......... 48,446,833 24,636,632
------------ -----------
Net change in contract owners'
equity...................... 65,321,238 29,990,613
Contract owners' equity:
Beginning of period................... 36,114,465 6,123,852
------------ -----------
End of period......................... $101,435,703 $36,114,465
============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
133
<PAGE> 86
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
SOCIAL AWARENESS STRATEGIC INCOME FIRSTAR GROWTH & INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ------------------------ ------------------------
1999 1998 1999 1998 1999 1998
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity................. $ (10,057) $ (10,520) $ 80,449 $ 97,888 $ (1,980) $ 24,958
Reinvested capital gains................ 0 0 0 479 0 5,463
Realized gain (loss).................... (356,428) (123,673) (81,875) (10,862) (5,429) (4,370)
Unrealized gain (loss).................. 524,015 (592,163) (91,767) (138,208) 14,492 (23,571)
---------- ---------- ---------- ---------- ---------- ----------
Net (decrease) increase in contract
owners' equity from operations..... 157,530 (726,356) (93,193) (50,703) 7,083 2,480
---------- ---------- ---------- ---------- ---------- ----------
Equity transactions:
Sales:
Contract purchase payments........... 126,549 1,707,317 28,821 1,124,332 235,791 898,498
Transfers from fixed & other
subaccounts..................... 302,402 727,506 382,507 74,905 260,694 181,594
---------- ---------- ---------- ---------- ---------- ----------
428,951 2,434,823 411,328 1,199,237 496,485 1,080,092
---------- ---------- ---------- ---------- ---------- ----------
Redemptions:
Withdrawals & surrenders (note 5).... 124,968 23,700 55,267 38,754 69,547 21,647
Annuity & death benefit payments..... 5,827 21,559 57,609 14,604 13,173 5,443
Transfers to fixed & other
subaccounts........................ 1,123,518 509,184 832,057 295,666 555,385 321,246
---------- ---------- ---------- ---------- ---------- ----------
1,254,313 554,443 944,933 349,024 638,105 348,336
---------- ---------- ---------- ---------- ---------- ----------
Net equity transactions............ (825,362) 1,880,380 (533,605) 850,213 (141,620) 731,756
---------- ---------- ---------- ---------- ---------- ----------
Net change in contract owners'
equity........................ (667,832) 1,154,024 (626,798) 799,510 (134,537) 734,236
Contract owners' equity:
Beginning of period..................... 1,964,101 810,077 1,874,581 1,075,071 1,345,772 611,536
---------- ---------- ---------- ---------- ---------- ----------
End of period........................... $1,296,269 $1,964,101 $1,247,783 $1,874,581 $1,211,235 $1,345,772
========== ========== ========== ========== ========== ==========
<CAPTION>
RELATIVE VALUE
SUBACCOUNT
-------------------------
1999 1998
----------- ----------
<S> <C> <C>
Investment activity:
Net investment activity................. $ (60,980) $ (12,699)
Reinvested capital gains................ 0 91,524
Realized gain (loss).................... 241,198 66,563
Unrealized gain (loss).................. 434,077 1,016,582
----------- ----------
Net (decrease) increase in contract
owners' equity from operations..... 614,295 1,161,970
----------- ----------
Equity transactions:
Sales:
Contract purchase payments........... 2,071,554 5,754,162
Transfers from fixed & other
subaccounts..................... 1,479,471 851,753
----------- ----------
3,551,025 6,605,915
----------- ----------
Redemptions:
Withdrawals & surrenders (note 5).... 576,228 373,306
Annuity & death benefit payments..... 211,985 73,267
Transfers to fixed & other
subaccounts........................ 1,492,473 492,230
----------- ----------
2,280,686 938,803
----------- ----------
Net equity transactions............ 1,270,339 5,667,112
----------- ----------
Net change in contract owners'
equity........................ 1,884,634 6,829,082
Contract owners' equity:
Beginning of period..................... 9,995,636 3,166,554
----------- ----------
End of period........................... $11,880,270 $9,995,636
=========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
134
<PAGE> 87
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
BLUE CHIP EQUITY INCOME HIGH INCOME BOND CAPITAL GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------- ---------------------- ---------------------- -----------------------
1999 1998(a) 1999 1998(a) 1999 1998(a) 1999 1998(a)
---------- -------- ---------- -------- ---------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment
activity............. $ (11,554) $ (1,341) $ (1,019) $ 394 $ 85,239 $ 7,505 $ (48,317) $ (294)
Reinvested capital
gains................ 31,583 0 0 0 0 775 1,716,266 0
Realized gain (loss).... 46,166 532 4,306 215 (21,329) 378 957,003 (1,432)
Unrealized gain
(loss)............... (21,821) 48,463 158,259 6,457 (67,091) (3,712) 2,785,132 30,958
---------- -------- ---------- -------- ---------- -------- ----------- --------
Net (decrease)
increase in
contract owners'
equity from
operations......... 44,374 47,654 161,546 7,066 (3,181) 4,946 5,410,084 29,232
---------- -------- ---------- -------- ---------- -------- ----------- --------
Equity transactions:
Sales:
Contract purchase
payments........... 1,044,152 628,613 1,192,132 28,016 1,574,944 386,877 5,496,463 75,300
Transfers from fixed
& other
subaccounts........ 2,159,098 194,014 1,155,324 80,100 1,812,439 58,490 15,764,744 72,481
---------- -------- ---------- -------- ---------- -------- ----------- --------
3,203,250 822,627 2,347,456 108,116 3,387,383 445,367 21,261,207 147,781
---------- -------- ---------- -------- ---------- -------- ----------- --------
Redemptions:
Withdrawals &
surrenders (note
5)................. 18,068 2,746 63,607 0 98,890 82 227,730 0
Annuity & death
benefit payments... 11,695 223 20,326 0 26,002 127 28,233 61
Transfers to fixed &
other
subaccounts........ 1,230,926 36,502 458,386 15,487 1,154,970 2,292 11,054,854 0
---------- -------- ---------- -------- ---------- -------- ----------- --------
1,260,689 39,471 542,319 15,487 1,279,862 2,501 11,310,817 61
---------- -------- ---------- -------- ---------- -------- ----------- --------
Net equity
transactions.... 1,942,561 783,156 1,805,137 92,629 2,107,521 442,866 9,950,390 147,720
---------- -------- ---------- -------- ---------- -------- ----------- --------
Net change in
contract
owners'
equity........ 1,986,935 830,810 1,966,683 99,695 2,104,340 447,812 15,360,474 176,952
Contract owners' equity:
Beginning of period..... 830,810 0 99,695 0 447,812 0 176,952 0
---------- -------- ---------- -------- ---------- -------- ----------- --------
End of period........... $2,817,745 $830,810 $2,066,378 $ 99,695 $2,552,152 $447,812 $15,537,426 $176,952
========== ======== ========== ======== ========== ======== =========== ========
</TABLE>
---------------
(a) Period From May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
135
<PAGE> 88
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
DOW TARGET 10
--------------------------------------------------------------------------------
JANUARY FEBRUARY MARCH APRIL MAY JUNE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
1999(b) 1999(b) 1999(b) 1999(b) 1999(b) 1999(b)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity.................... $ 3,215 $ 3,905 $ 132 $ 3,741 $ 1,357 $ 2,558
Reinvested capital gains................... 2,452 28,815 36,126 17,860 0 0
Realized gain (loss)....................... 10,503 16,546 16,884 (43,006) (19,470) (7,729)
Unrealized gain (loss)..................... (8,237) 10,023 (80,401) (132,892) (126,311) (151,575)
-------- ---------- ---------- ---------- -------- ----------
Net (decrease) increase in contract
owners' equity from operations........ 7,933 59,289 (27,259) (154,297) (144,424) (156,746)
-------- ---------- ---------- ---------- -------- ----------
Equity transactions:
Sales:
Contract purchase payments.............. 200,397 1,012,314 945,408 1,305,621 458,581 871,329
Transfers from fixed & other
subaccounts........................... 161,557 278,967 300,764 878,665 618,700 788,856
-------- ---------- ---------- ---------- -------- ----------
361,954 1,291,281 1,246,172 2,184,286 1,077,281 1,660,185
-------- ---------- ---------- ---------- -------- ----------
Redemptions:
Withdrawals & surrenders (note 5)....... 1,675 26,995 17,077 20,253 7,892 10,313
Annuity & death benefit payments........ 59 18,346 4,193 5,595 63 6,076
Transfers to fixed & other
subaccounts........................... 17,072 144,588 181,722 748,534 208,439 330,090
-------- ---------- ---------- ---------- -------- ----------
18,806 189,929 202,992 774,382 216,394 346,479
-------- ---------- ---------- ---------- -------- ----------
Net equity transactions............... 343,148 1,101,352 1,043,180 1,409,904 860,887 1,313,706
-------- ---------- ---------- ---------- -------- ----------
Net change in contract owners'
equity........................... 351,081 1,160,641 1,015,921 1,255,607 716,463 1,156,960
Contract owners' equity:
Beginning of period........................ 0 0 0 0 0 0
-------- ---------- ---------- ---------- -------- ----------
End of period.............................. $351,081 $1,160,641 $1,015,921 $1,255,607 $716,463 $1,156,960
======== ========== ========== ========== ======== ==========
<CAPTION>
DOW TARGET 10
------------------------
JULY AUGUST
SUBACCOUNT SUBACCOUNT
---------- ----------
1999(b) 1999(b)
---------- ----------
<S> <C> <C>
Investment activity:
Net investment activity.................... $ 4,153 $ 3,991
Reinvested capital gains................... 0 0
Realized gain (loss)....................... (12,827) (17,755)
Unrealized gain (loss)..................... (123,094) (114,144)
-------- --------
Net (decrease) increase in contract
owners' equity from operations........ (131,768) (127,908)
-------- --------
Equity transactions:
Sales:
Contract purchase payments.............. 501,575 367,266
Transfers from fixed & other
subaccounts........................... 1,014,887 731,632
-------- --------
1,516,462 1,098,898
-------- --------
Redemptions:
Withdrawals & surrenders (note 5)....... 7,691 9,986
Annuity & death benefit payments........ 3,453 5,854
Transfers to fixed & other
subaccounts........................... 384,457 150,804
-------- --------
395,601 166,644
-------- --------
Net equity transactions............... 1,120,861 932,254
-------- --------
Net change in contract owners'
equity........................... 989,093 804,346
Contract owners' equity:
Beginning of period........................ 0 0
-------- --------
End of period.............................. $989,093 $804,346
======== ========
</TABLE>
---------------
(b) See Note 7. (continued)
The accompanying notes are an integral part of these financial statements.
136
<PAGE> 89
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
DOW TARGET 10 (CONTINUED) DOW TARGET 5
---------------------------------------------------- ------------------------
SEPTEMBER OCTOBER NOVEMBER DECEMBER SEPTEMBER OCTOBER
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
1999(b) 1999(b) 1999(b) 1999(b) 1999(b) 1999(b)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity.................... $ 4,358 $ 5,710 $ 2,382 $ 243 $ 389 $ 717
Reinvested capital gains................... 0 0 0 0 0 0
Realized gain (loss)....................... (8,391) 1,458 490 (1,437) (6,411) (1,590)
Unrealized gain (loss)..................... (130,265) (78,580) (6,279) 9,617 (15,253) (30,000)
---------- ---------- ---------- ---------- -------- --------
Net (decrease) increase in contract
owners' equity from operations........ (134,298) (71,412) (3,407) 8,423 (21,275) (30,873)
---------- ---------- ---------- ---------- -------- --------
Equity transactions:
Sales:
Contract purchase payments.............. 379,565 282,149 209,621 198,309 87,966 176,832
Transfers from fixed & other
subaccounts........................... 1,323,662 1,229,320 1,154,415 1,081,715 14,629 39,265
---------- ---------- ---------- ---------- -------- --------
1,703,227 1,511,469 1,364,036 1,280,024 102,595 216,097
---------- ---------- ---------- ---------- -------- --------
Redemptions:
Withdrawals & surrenders (note 5)....... 1,883 632 115 102 0 58
Annuity & death benefit payments........ 465 28 22 434 0 6
Transfers to fixed & other
subaccounts........................... 99,775 44,224 34,012 27,276 510 0
---------- ---------- ---------- ---------- -------- --------
102,123 44,884 34,149 27,812 510 64
---------- ---------- ---------- ---------- -------- --------
Net equity transactions............... 1,601,104 1,466,585 1,329,887 1,252,212 102,085 216,033
---------- ---------- ---------- ---------- -------- --------
Net change in contract owners'
equity........................... 1,466,806 1,395,173 1,326,480 1,260,635 80,810 185,160
Contract owners' equity:
Beginning of period........................ 0 0 0 0 0 0
---------- ---------- ---------- ---------- -------- --------
End of period.............................. $1,466,806 $1,395,173 $1,326,480 $1,260,635 $ 80,810 $185,160
========== ========== ========== ========== ======== ========
<CAPTION>
DOW TARGET 5
------------------------
NOVEMBER DECEMBER
SUBACCOUNT SUBACCOUNT
---------- ----------
1999(b) 1999(b)
---------- ----------
<S> <C> <C>
Investment activity:
Net investment activity.................... $ 246 $ 153
Reinvested capital gains................... 0 0
Realized gain (loss)....................... 326 (142)
Unrealized gain (loss)..................... (1,347) 194
-------- --------
Net (decrease) increase in contract
owners' equity from operations........ (775) 205
-------- --------
Equity transactions:
Sales:
Contract purchase payments.............. 61,551 50,081
Transfers from fixed & other
subaccounts........................... 42,794 68,548
-------- --------
104,345 118,629
-------- --------
Redemptions:
Withdrawals & surrenders (note 5)....... 0 0
Annuity & death benefit payments........ 0 7
Transfers to fixed & other
subaccounts........................... 0 12,648
-------- --------
0 12,655
-------- --------
Net equity transactions............... 104,345 105,974
-------- --------
Net change in contract owners'
equity........................... 103,570 106,179
Contract owners' equity:
Beginning of period........................ 0 0
-------- --------
End of period.............................. $103,570 $106,179
======== ========
</TABLE>
---------------
(b) See Note 7.
The accompanying notes are an integral part of these financial statements.
137
<PAGE> 90
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
MONTGOMERY ASSET FIDELITY INVESTMENTS
------------------------------------------------- -------------------------
EMERGING MARKET SMALL CAP OPPORTUNITY VIP GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------- ---------------------- -------------------------
1999 1998 1999 1998(a) 1999 1998
---------- --------- --------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity..................... $ (10,872) $ (9,129) $ (1,053) $ (204) $ (97,595) $ (30,410)
Reinvested capital gains.................... 0 0 0 0 596,051 169,084
Realized gain (loss)........................ (172,773) (105,907) 5,705 2,069 216,905 32,996
Unrealized gain (loss)...................... 359,922 (288,678) (10,248) 10,248 2,075,658 805,443
---------- --------- -------- -------- ----------- ----------
Net (decrease) increase in contract
owners' equity from operations......... 176,277 (403,714) (5,596) 12,113 2,791,019 977,113
---------- --------- -------- -------- ----------- ----------
Equity transactions:
Sales:
Contract purchase payments............... 161,704 328,559 33,949 91,968 2,938,186 2,574,916
Transfers from fixed & other
subaccounts............................ 624,789 383,220 132,949 15,485 3,414,568 662,152
---------- --------- -------- -------- ----------- ----------
786,493 711,779 166,898 107,453 6,352,754 3,237,068
---------- --------- -------- -------- ----------- ----------
Redemptions:
Withdrawals & surrenders (note 5)........ 16,290 5,958 1,328 0 182,126 54,773
Annuity & death benefit payments......... 2,227 1,979 595 16,664 11,538 12,293
Transfers to fixed & other subaccounts... 1,669,125 407,864 249,840 12,441 1,779,405 638,827
---------- --------- -------- -------- ----------- ----------
1,687,642 415,801 251,763 29,105 1,973,069 705,893
---------- --------- -------- -------- ----------- ----------
Net equity transactions................ (901,149) 295,978 (84,865) 78,348 4,379,685 2,531,175
---------- --------- -------- -------- ----------- ----------
Net change in contract owners'
equity............................ (724,872) (107,736) (90,461) 90,461 7,170,704 3,508,288
Contract owners' equity:
Beginning of period......................... 724,872 832,608 90,461 0 4,523,170 1,014,882
---------- --------- -------- -------- ----------- ----------
End of period............................... $ 0 $ 724,872 $ 0 $ 90,461 $11,693,874 $4,523,170
========== ========= ======== ======== =========== ==========
<CAPTION>
FIDELITY INVESTMENTS
------------------------
VIP EQUITY INCOME
SUBACCOUNT
------------------------
1999 1998
---------- ----------
<S> <C> <C>
Investment activity:
Net investment activity..................... $ (8,133) $ (20,659)
Reinvested capital gains.................... 192,859 95,785
Realized gain (loss)........................ 57,650 15,254
Unrealized gain (loss)...................... (35,430) 217,112
---------- ----------
Net (decrease) increase in contract
owners' equity from operations......... 206,946 307,492
---------- ----------
Equity transactions:
Sales:
Contract purchase payments............... 2,272,614 3,306,327
Transfers from fixed & other
subaccounts............................ 1,607,105 668,846
---------- ----------
3,879,719 3,975,173
---------- ----------
Redemptions:
Withdrawals & surrenders (note 5)........ 304,666 71,218
Annuity & death benefit payments......... 48,489 3,399
Transfers to fixed & other subaccounts... 1,440,670 390,802
---------- ----------
1,793,825 465,419
---------- ----------
Net equity transactions................ 2,085,894 3,509,754
---------- ----------
Net change in contract owners'
equity............................ 2,292,840 3,817,246
Contract owners' equity:
Beginning of period......................... 5,489,577 1,672,331
---------- ----------
End of period............................... $7,782,417 $5,489,577
========== ==========
</TABLE>
---------------
(a) Period From May 1, 1998 date of commencement of operations. (continued)
The accompanying notes are an integral part of these financial statements.
138
<PAGE> 91
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
FIDELITY INVESTMENTS (CONT.) JP MORGAN TRUST II JANUS ASPEN SERIES
---------------------------- ---------------------- -------------------------
VIP HIGH INCOME BOND SMALL COMPANY GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------- -------------------------
1999 1998 1999 1998(a) 1999 1998(a)
------------ ------------ ---------- -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity.................. $ 238,409 $ 76,119 $ (17,268) $ (840) $ (155,273) $ (2,773)
Reinvested capital gains................. 10,553 66,607 52,780 11,588 72,776 139
Realized gain (loss)..................... (143,416) (22,981) 44,699 (689) 909,173 46,760
Unrealized gain (loss)................... 86,432 (301,337) 682,935 37,863 7,169,844 319,539
---------- ---------- ---------- -------- ----------- ----------
Net (decrease) increase in contract
owners' equity from operations...... 191,978 (181,592) 763,146 47,922 7,996,520 363,665
---------- ---------- ---------- -------- ----------- ----------
Equity transactions:
Sales:
Contract purchase payments............ 806,818 1,709,242 872,645 539,440 20,214,291 1,505,041
Transfers from fixed & other
subaccounts......................... 348,330 333,556 1,135,507 73,249 34,106,267 1,737,064
---------- ---------- ---------- -------- ----------- ----------
1,155,148 2,042,798 2,008,152 612,689 54,320,558 3,242,105
---------- ---------- ---------- -------- ----------- ----------
Redemptions:
Withdrawals & surrenders (note 5)... 59,847 26,465 21,266 609 377,238 61
Annuity & death benefit payments...... 7,397 791 39,267 116 163,408 185
Transfers to fixed & other
subaccounts......................... 1,717,401 125,389 719,119 3,384 18,329,315 1,188,160
---------- ---------- ---------- -------- ----------- ----------
1,784,645 152,645 779,652 4,109 18,869,961 1,188,406
---------- ---------- ---------- -------- ----------- ----------
Net equity transactions............. (629,497) 1,890,153 1,228,500 608,580 35,450,597 2,053,699
---------- ---------- ---------- -------- ----------- ----------
Net change in contract owners'
equity......................... (437,519) 1,708,561 1,991,646 656,502 43,447,117 2,417,364
Contract owners' equity:
Beginning of period...................... 3,096,886 1,388,325 656,502 0 2,417,364 0
---------- ---------- ---------- -------- ----------- ----------
End of period............................ $2,659,367 $3,096,886 $2,648,148 $656,502 $45,864,481 $2,417,364
========== ========== ========== ======== =========== ==========
<CAPTION>
JANUS ASPEN SERIES
--------------------------
INTERNATIONAL GROWTH
SUBACCOUNT
--------------------------
1999 1998(a)
------------ ----------
<S> <C> <C>
Investment activity:
Net investment activity.................. $ (27,679) $ 558
Reinvested capital gains................. 0 38
Realized gain (loss)..................... 2,562,214 14,859
Unrealized gain (loss)................... 415,113 139
------------ ----------
Net (decrease) increase in contract
owners' equity from operations...... 2,949,648 15,594
------------ ----------
Equity transactions:
Sales:
Contract purchase payments............ 1,992,870 119,362
Transfers from fixed & other
subaccounts......................... 126,717,473 4,506,289
------------ ----------
128,710,343 4,625,651
------------ ----------
Redemptions:
Withdrawals & surrenders (note 5)... 13,013 59
Annuity & death benefit payments...... 7,005 16,112
Transfers to fixed & other
subaccounts......................... 123,940,423 4,399,733
------------ ----------
123,960,441 4,415,904
------------ ----------
Net equity transactions............. 4,749,902 209,747
------------ ----------
Net change in contract owners'
equity......................... 7,699,550 225,341
Contract owners' equity:
Beginning of period...................... 225,341 0
------------ ----------
End of period............................ $ 7,924,891 $ 225,341
============ ==========
</TABLE>
---------------
(a) Period From May 1, 1998 date of commencement of operations. (continued)
The accompanying notes are an integral part of these financial statements.
139
<PAGE> 92
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
JANUS ASPEN SERIES (CONTINUED)
------------------------------------------------------
WORLDWIDE GROWTH BALANCED
SUBACCOUNT SUBACCOUNT
------------------------- -------------------------
1999 1998(a) 1999 1998(a)
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Investment activity:
Net investment activity.................... $ (148,080) $ 2,584 $ 369,590 $ 38,063
Reinvested capital gains................... 0 2,416 0 1,137
Realized gain (loss)....................... 3,244,178 36,214 80,815 8,538
Unrealized gain (loss)..................... 6,606,997 186,957 4,754,500 485,789
----------- ---------- ----------- ----------
Net (decrease) increase in contract
owners' equity from operations........ 9,703,095 228,171 5,204,905 533,527
----------- ---------- ----------- ----------
Equity transactions:
Sales:
Contract purchase payments.............. 11,893,823 1,786,575 17,278,295 2,648,081
Transfers from fixed & other
subaccounts........................... 67,372,289 3,425,697 18,879,362 1,383,055
----------- ---------- ----------- ----------
79,266,112 5,212,272 36,157,657 4,031,136
----------- ---------- ----------- ----------
Redemptions:
Withdrawals & surrenders (note 5)....... 241,675 30,747 465,955 18,758
Annuity & death benefit payments........ 101,164 252 411,693 6,210
Transfers to fixed & other
subaccounts........................... 57,781,886 2,697,114 4,231,505 294,535
----------- ---------- ----------- ----------
58,124,725 2,728,113 5,109,153 319,503
----------- ---------- ----------- ----------
Net equity transactions............... 21,141,387 2,484,159 31,048,504 3,711,633
----------- ---------- ----------- ----------
Net change in contract owners'
equity........................... 30,844,482 2,712,330 36,253,409 4,245,160
Contract owners' equity:
Beginning of period........................ 2,712,330 0 4,245,160 --
----------- ---------- ----------- ----------
End of period.............................. $33,556,812 $2,712,330 $40,498,569 $4,245,160
=========== ========== =========== ==========
<CAPTION>
SALOMON VARIABLE FUND SERIES
------------------------------------------------
CAPITAL TOTAL RETURN
SUBACCOUNT SUBACCOUNT
---------------------- ----------------------
1999 1998(a) 1999 1998(a)
---------- -------- ---------- --------
<S> <C> <C> <C> <C>
Investment activity:
Net investment activity.................... $ (4,991) $ 1,399 $ 22,244 $ 4,537
Reinvested capital gains................... 30,334 3,009 0 1,072
Realized gain (loss)....................... 22,197 762 (450) 829
Unrealized gain (loss)..................... 119,271 17,714 (44,241) 4,184
---------- -------- ---------- --------
Net (decrease) increase in contract
owners' equity from operations........ 166,811 22,884 (22,447) 10,622
---------- -------- ---------- --------
Equity transactions:
Sales:
Contract purchase payments.............. 361,765 233,419 694,967 232,678
Transfers from fixed & other
subaccounts........................... 443,408 42,434 819,204 151,291
---------- -------- ---------- --------
805,173 275,853 1,514,171 383,969
---------- -------- ---------- --------
Redemptions:
Withdrawals & surrenders (note 5)....... 15,782 0 28,332 0
Annuity & death benefit payments........ 6,995 107 10,605 0
Transfers to fixed & other
subaccounts........................... 137,987 0 403,922 19,970
---------- -------- ---------- --------
160,764 107 442,859 19,970
---------- -------- ---------- --------
Net equity transactions............... 644,409 275,746 1,071,312 363,999
---------- -------- ---------- --------
Net change in contract owners'
equity........................... 811,220 298,630 1,048,865 374,621
Contract owners' equity:
Beginning of period........................ 298,630 0 374,621 0
---------- -------- ---------- --------
End of period.............................. $1,109,850 $298,630 $1,423,486 $374,621
========== ======== ========== ========
</TABLE>
---------------
(a) Period From May 1, 1998 date of commencement of operations. (continued)
The accompanying notes are an integral part of these financial statements.
140
<PAGE> 93
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
SALOMON VARIABLE
FUND SERIES (CONTINUED) STRONG VARIABLE ANNUITY FUNDS
------------------------ ------------------------------------------------------------------------
INVESTORS OPPORTUNITY SCHAFER VALUE MID-CAP GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------ ---------------------- ------------------- -----------------------
1999 1998(a) 1999 1998(a) 1999 1998(a) 1999 1998(a)
---------- ---------- ---------- -------- -------- ------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment
activity.............. $ (4,277) $ 422 $ (20,474) $ 473 $ 351 $ (51) $ (54,243) $ (1,238)
Reinvested capital
gains................. 0 0 63,194 0 20,517 0 0 0
Realized gain (loss)..... 40,431 1,496 237,823 22,907 (18,877) 1,786 116,343 1,501
Unrealized gain (loss)... 6,861 23,307 213,263 20,918 (21,364) 3,845 4,314,671 102,974
-------- -------- ---------- --------- -------- ------- ----------- --------
Net (decrease)
increase in contract
owners' equity from
operations.......... 43,015 25,225 493,806 44,298 (19,373) 5,580 4,376,771 103,237
-------- -------- ---------- --------- -------- ------- ----------- --------
Equity transactions:
Sales:
Contract purchase
payments............ 129,273 333,783 999,849 234,597 348,609 35,791 5,761,739 360,069
Transfers from fixed &
other subaccounts... 498,295 36,621 21,109,585 1,443,032 217,227 24,309 6,524,833 158,068
-------- -------- ---------- --------- -------- ------- ----------- --------
627,568 370,404 22,109,434 1,677,629 565,836 60,100 12,286,572 518,137
-------- -------- ---------- --------- -------- ------- ----------- --------
Redemptions:
Withdrawals &
surrenders (note
5).................. 8,362 272 11,226 0 2,212 0 79,426 0
Annuity & death
benefit payments.... 76,442 186 2,830 15,648 3,462 0 42,880 0
Transfers to fixed &
other subaccounts... 526,995 1,999 20,445,637 930,499 65,566 15,411 1,821,107 9,656
-------- -------- ---------- --------- -------- ------- ----------- --------
611,799 2,457 20,459,693 946,147 71,240 15,411 1,943,413 9,656
-------- -------- ---------- --------- -------- ------- ----------- --------
Net equity
transactions..... 15,769 367,947 1,649,741 731,482 494,596 44,689 10,343,159 508,481
-------- -------- ---------- --------- -------- ------- ----------- --------
Net change in
contract
owners'
equity......... 58,784 393,172 2,143,547 775,780 475,223 50,269 14,719,930 611,718
Contract owners' equity:
Beginning of period...... 393,172 0 775,780 0 50,269 0 611,718 0
-------- -------- ---------- --------- -------- ------- ----------- --------
End of period............ $451,956 $393,172 $2,919,327 $775,780 $525,492 $50,269 $15,331,648 $611,718
======== ======== ========== ========= ======== ======= =========== ========
</TABLE>
---------------
(a) Period From May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
141
<PAGE> 94
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
MORGAN STANLEY UNIVERSAL FUNDS
---------------------------------------------------------------------------------------------
FIXED INCOME US REAL ESTATE VALUE EMERGING MARKET DEBT
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------- ------------------- -------------------- --------------------
1999 1998(a) 1999 1998(a) 1999 1998(a) 1999 1998(a)
---------- -------- -------- ------- -------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity......... $ 158,114 $ 13,984 $ 16,456 $ 1,690 $ 1,072 $ 4,479 $ 18,258 $ 827
Reinvested capital gains........ 336 5,226 0 0 0 8,977 0 0
Realized gain (loss)............ (14,276) 13 1,866 (61) 705 1,409 3,051 42
Unrealized gain (loss).......... (190,943) (15,285) (27,171) (491) (52,452) (693) 3,666 (546)
---------- -------- -------- ------- -------- -------- -------- ------
Net (decrease) increase in
contract owners' equity
from operations............ (46,769) 3,938 (8,849) 1,138 (50,675) 14,172 24,975 323
---------- -------- -------- ------- -------- -------- -------- ------
Equity transactions:
Sales:
Contract purchase payments... 1,146,361 315,893 35,746 58,605 322,933 264,759 45,177 6,757
Transfers from fixed & other
subaccounts................ 4,467,822 335,255 459,951 27,072 461,168 146,186 122,702 519
---------- -------- -------- ------- -------- -------- -------- ------
5,614,183 651,148 495,697 85,677 784,101 410,945 167,879 7,276
---------- -------- -------- ------- -------- -------- -------- ------
Redemptions:
Withdrawals & surrenders
(note 5)................... 98,815 253 2,487 0 51,732 0 0 0
Annuity & death benefit
payments................... 52,395 49 2,062 0 2,834 137 15 0
Transfers to fixed & other
subaccounts................ 1,775,199 112,159 126,136 169 196,885 2,952 20,413 0
---------- -------- -------- ------- -------- -------- -------- ------
1,926,409 112,461 130,685 169 251,451 3,089 20,428 0
---------- -------- -------- ------- -------- -------- -------- ------
Net equity transactions.... 3,687,774 538,687 365,012 85,508 532,650 407,856 147,451 7,276
---------- -------- -------- ------- -------- -------- -------- ------
Net change in contract
owners' equity........ 3,641,005 542,625 356,163 86,646 481,975 422,028 172,426 7,599
Contract owners' equity:
Beginning of period............. 542,625 0 86,646 0 422,028 0 7,599 0
---------- -------- -------- ------- -------- -------- -------- ------
End of period................... $4,183,630 $542,625 $442,809 $86,646 $904,003 $422,028 $180,025 $7,599
========== ======== ======== ======= ======== ======== ======== ======
</TABLE>
---------------
(a) Period From May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
142
<PAGE> 95
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
GOLDMAN SACHS VIT FUNDS
---------------------------------------------------------------------------------------------------
GROWTH & INCOME CORE US EQUITY GLOBAL INCOME CAPITAL GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------- ---------------------- ------------------- ------------------------
1999 1998(a) 1999 1998(a) 1999 1998(a) 1999 1998(a)
---------- -------- ---------- -------- -------- ------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity... $ 7,645 $ 4,262 $ (15,676) $ 760 $ 18,601 $ 2,159 $ (29,272) $ (1,440)
Reinvested capital
gains.................. 0 0 51,295 0 3,816 644 101,678 0
Realized gain (loss)...... 3,654 (1,956) 33,847 1,045 (1,803) 57 50,556 7,124
Unrealized gain (loss).... 31,312 14,203 479,377 79,395 (28,302) (2,172) 557,373 110,809
---------- -------- ---------- -------- -------- ------- ---------- ----------
Net increase (decrease)
in contract owners'
equity from
operations........... 42,611 16,509 548,843 81,200 (7,688) 688 680,335 116,493
---------- -------- ---------- -------- -------- ------- ---------- ----------
Equity transactions:
Sales:
Contract purchase
payments............. 963,704 668,643 1,977,906 760,740 334,572 75,695 1,266,179 781,171
Transfers from fixed &
other subaccounts.... 1,701,472 92,384 1,876,140 74,272 526,733 6,926 2,113,668 213,959
---------- -------- ---------- -------- -------- ------- ---------- ----------
2,665,176 761,027 3,854,046 835,012 861,305 82,621 3,379,847 995,130
---------- -------- ---------- -------- -------- ------- ---------- ----------
Redemptions:
Withdrawals &
surrenders (note
5)................... 30,748 150 90,270 249 16,154 0 31,676 9,036
Annuity & death benefit
payments............. 24,514 150 7,318 24,187 6,233 0 24,551 3,393
Transfers to fixed &
other subaccounts.... 629,714 29,603 333,627 42,315 150,940 766 598,356 40,314
---------- -------- ---------- -------- -------- ------- ---------- ----------
684,976 29,903 431,215 66,751 173,327 766 654,583 52,743
---------- -------- ---------- -------- -------- ------- ---------- ----------
Net equity
transactions...... 1,980,200 731,124 3,422,831 768,261 687,978 81,855 2,725,264 942,387
---------- -------- ---------- -------- -------- ------- ---------- ----------
Net change in
contract owners'
equity.......... 2,022,811 747,633 3,971,674 849,461 680,290 82,543 3,405,599 1,058,880
Contract owners' equity:
Beginning of period....... 747,633 0 849,461 0 82,543 0 1,058,880 0
---------- -------- ---------- -------- -------- ------- ---------- ----------
End of period............. $2,770,444 $747,633 $4,821,135 $849,461 $762,833 $82,543 $4,464,479 $1,058,880
========== ======== ========== ======== ======== ======= ========== ==========
</TABLE>
---------------
(a) Period From May 1, 1998 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
143
<PAGE> 96
OHIO NATIONAL VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Years Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
LAZARD RETIREMENT FUNDS SERIES TRUST PAINEWEBBER MUTUAL FUNDS
------------------------ ----------------------------------------------------
EMERGING STRATEGIC GROWTH TACTICAL
MARKET SMALL CAP INCOME & INCOME ALLOCATION SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
1999(c) 1999(c) 1999(c) 1999(c) 1999(c) 1999(c)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Net investment activity...................... $ (382) $ (73) $ 6,290 $ (1,686) $ (5,601) $ 3,949
Reinvested capital gains..................... 0 1,772 0 0 139,770 0
Realized gain (loss)......................... 7,541 92 80 20 3,383 3,388
Unrealized gain (loss)....................... 337,023 2,706 (6,631) 49,454 (8,939) 3,630
---------- -------- -------- ---------- ---------- --------
Net increase (decrease) in contract
owners' equity from operations........... 344,182 4,497 (261) 47,788 128,613 10,967
---------- -------- -------- ---------- ---------- --------
Equity transactions:
Sales:
Contract purchase payments................ 60,799 37,710 62,640 452,561 1,012,466 76,544
Transfers from fixed & other
subaccounts.............................. 1,583,671 94,733 67,127 110,944 1,067,505 41,922
---------- -------- -------- ---------- ---------- --------
1,644,470 132,443 129,767 563,505 2,079,971 118,466
---------- -------- -------- ---------- ---------- --------
Redemptions:
Withdrawals & surrenders (note 5)......... 4,104 0 3,600 0 15,983 0
Annuity & death benefit payments.......... 399 0 0 1,405 2,089 120
Transfers to fixed & other subaccounts.... 193,294 0 0 0 21,095 524
---------- -------- -------- ---------- ---------- --------
197,797 0 3,600 1,405 39,167 644
---------- -------- -------- ---------- ---------- --------
Net equity transactions................. 1,446,673 132,443 126,167 562,100 2,040,804 117,822
---------- -------- -------- ---------- ---------- --------
Net change in contract owners'
equity............................. 1,790,855 136,940 125,906 609,888 2,169,417 128,789
Contract owners' equity:
Beginning of period.......................... 0 0 0 0 0 0
---------- -------- -------- ---------- ---------- --------
End of period................................ $1,790,855 $136,940 $125,906 $ 609,888 $2,169,417 $128,789
========== ======== ======== ========== ========== ========
</TABLE>
---------------
(c) Period From July 1, 1999 date of commencement of operations.
The accompanying notes are an integral part of these financial statements.
144
<PAGE> 97
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., 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., Goldman
Sachs Variable Insurance Trust, Lazard Retirement Funds and Series Trust
PaineWebber Mutual Funds (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, 1999. 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, 1999 the aggregate cost and number of shares of the
underlying funds owned by the respective subaccounts were:
<TABLE>
<CAPTION>
MONEY
EQUITY MARKET BOND OMNI INTERNATIONAL
OHIO NATIONAL FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Aggregate Cost.......................... $154,799,612 $33,652,464 $11,799,222 $61,404,722 $ 38,371,658
Number of Shares........................ 5,644,247 3,365,246 1,124,170 3,536,807 2,695,783
<CAPTION>
CAPITAL
APPRECIATION SMALL CAP
OHIO NATIONAL FUNDS SUBACCOUNT SUBACCOUNT
------------------- ------------ -----------
<S> <C> <C>
Aggregate Cost.......................... $27,977,115 $40,286,206
Number of Shares........................ 2,176,748 1,848,024
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL AGGRESSIVE CORE GROWTH & S&P 500
SMALL CO. GROWTH GROWTH INCOME INDEX
OHIO NATIONAL FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Aggregate Cost.......................... $ 7,801,451 $ 5,828,880 $ 6,951,119 $38,362,750 $ 90,295,159
Number of Shares........................ 593,604 538,786 566,882 2,617,958 6,274,632
<CAPTION>
SOCIAL STRATEGIC
AWARENESS INCOME
OHIO NATIONAL FUNDS SUBACCOUNT SUBACCOUNT
------------------- ------------ -----------
<S> <C> <C>
Aggregate Cost.......................... $ 1,422,857 $ 1,478,903
Number of Shares........................ 125,754 150,571
</TABLE>
<TABLE>
<CAPTION>
FIRSTAR
GROWTH & RELATIVE EQUITY HIGH INCOME
INCOME VALUE BLUE CHIP INCOME BOND
OHIO NATIONAL FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Aggregate Cost.......................... $ 1,205,576 $10,213,912 $ 2,791,103 $ 1,901,662 $ 2,622,955
Number of Shares........................ 114,095 743,307 264,428 166,980 276,836
<CAPTION>
CAPITAL
GROWTH
OHIO NATIONAL FUNDS SUBACCOUNT
------------------- ------------
<S> <C> <C>
Aggregate Cost.......................... $12,721,337
Number of Shares........................ 554,651
</TABLE>
<TABLE>
<CAPTION>
DOW TARGET DOW TARGET DOW TARGET DOW TARGET DOW TARGET
10 JANUARY 10 FEBRUARY 10 MARCH 10 APRIL 10 MAY
DOW TARGET 10 FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Aggregate Cost.......................... $ 359,318 $ 1,150,617 $ 1,096,322 $ 1,388,499 $ 842,774
Number of Shares........................ 34,996 113,200 104,272 125,235 86,217
<CAPTION>
DOW TARGET
10 JUNE
DOW TARGET 10 FUNDS SUBACCOUNT
------------------- ------------
<S> <C> <C>
Aggregate Cost.......................... $ 1,308,535
Number of Shares........................ 129,168
</TABLE>
(continued)
145
<PAGE> 98
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
DOW TARGET DOW TARGET DOW TARGET DOW TARGET DOW TARGET DOW TARGET
10 JULY 10 AUGUST 10 SEPTEMBER 10 OCTOBER 10 NOVEMBER 10 DECEMBER
DOW TARGET 10 FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ----------- ----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost................. $1,112,187 $ 918,489 $1,597,070 $1,473,753 $1,332,759 $1,251,018
Number of Shares............... 112,129 90,620 167,081 151,583 131,595 125,938
</TABLE>
<TABLE>
<CAPTION>
DOW TARGET 5 DOW TARGET 5 DOW TARGET 5 DOW TARGET 5
SEPTEMBER OCTOBER NOVEMBER DECEMBER
DOW TARGET 5 FUNDS SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost.............. $ 96,064 $ 215,160 $ 104,917 $ 105,984
Number of Shares............ 10,835 21,863 10,424 10,621
</TABLE>
<TABLE>
<CAPTION>
JP MORGAN
FIDELITY VIP FIDELITY VIP FIDELITY VIP TRUST II SMALL JANUS ASPEN
GROWTH EQUITY INCOME HIGH INCOME COMPANY GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C>
Aggregate Cost........................... $ 8,774,982 $7,504,442 $2,844,696 $1,927,350 $38,375,097
Number of Shares......................... 212,887 302,700 235,134 158,287 1,362,986
<CAPTION>
JANUS ASPEN JANUS ASPEN
INTERNATIONAL WORLDWIDE
GROWTH GROWTH
SUBACCOUNT SUBACCOUNT
------------- -----------
<S> <C> <C>
Aggregate Cost........................... $7,509,639 $26,762,858
Number of Shares......................... 204,936 702,760
</TABLE>
<TABLE>
<CAPTION>
SALOMON BROS SALOMON BROS SALOMON BROS
JANUS ASPEN VARIABLE VARIABLE TOTAL VARIABLE STRONG
BALANCED CAPITAL RETURN INVESTORS OPPORTUNITY II
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------ -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Aggregate Cost........................... $35,258,280 $ 972,865 $1,463,542 $ 421,788 $ 2,685,146
Number of Shares......................... 1,450,522 81,189 139,148 36,955 112,325
<CAPTION>
STRONG STRONG MID-
SCHAFER VALUE CAP GROWTH II
II SUBACCOUNT SUBACCOUNT
------------- -------------
<S> <C> <C>
Aggregate Cost........................... $ 543,011 $10,914,003
Number of Shares......................... 57,620 504,828
</TABLE>
<TABLE>
<CAPTION>
MORGAN
MORGAN MORGAN MORGAN STANLEY GOLDMAN GOLDMAN GOLDMAN
STANLEY STANLEY STANLEY UNIVERSAL SACHS VIT SACHS VIT SACHS VIT
UNIVERSAL UNIVERSAL US UNIVERSAL EMERGING MKT GROWTH & CORE US GLOBAL
FIXED INCOME REAL ESTATE VALUE DEBT INCOME EQUITY INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ ----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost............... $ 4,389,858 $ 470,471 $ 957,148 $ 176,905 $2,724,929 $4,262,363 $ 793,307
Number of Shares............. 416,282 48,607 84,015 26,053 254,403 344,859 77,602
</TABLE>
<TABLE>
<CAPTION>
GOLDMAN LAZARD PAINEWEBBER
SACHS VIT RETIREMENT LAZARD PAINEWEBBER PAINEWEBBER TACTICAL PAINEWEBBER
CAPITAL EMERGING RETIREMENT STRATEGIC GROWTH & ALLOCATION SMALL CAP
GROWTH MKT. SMALL CAP INCOME CLASS INCOME CLASS CLASS I CLASS I
SUBACCOUNT SUBACCOUNT SUBACCOUNT I SUBACCOUNT I SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ----------- ----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost................ $3,796,297 $1,453,832 $ 134,234 $ 132,538 $ 560,434 $2,178,355 $ 125,159
Number of Shares.............. 318,664 162,657 13,945 10,734 37,302 131,639 8,445
</TABLE>
(continued)
146
<PAGE> 99
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(3) CONTRACTS IN ACCUMULATION PERIOD
At December 31, 1999 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............................................... 22,199.2511 165.193487 $ 3,667,172
Back Load................................................. 12,091.7675 92.649498 $ 1,120,296
Top I..................................................... 131,062.9630 74.150642 $ 9,718,403
Top Tradition............................................. 1,219,723.6309 63.810576 $77,831,267
Top Plus.................................................. 669,137.8655 21.928573 $14,673,239
Investar Vision........................................... 66,790.5089 14.295961 $ 954,835
Top Spectrum.............................................. 172,339.5334 14.295961 $ 2,463,759
Top Explorer.............................................. 434,985.3579 14.631033 $ 6,364,285
Oncore Flex............................................... 219,592.1347 10.796756 $ 2,370,883
Oncore Value.............................................. 743,492.8286 10.828904 $ 8,051,212
Oncore Premier............................................ 1,844,641.0473 10.802093 $19,925,984
Oncore Xtra............................................... 103,022.6272 10.802093 $ 1,112,860
Firstar Oncore Flex....................................... 5,591.0312 10.796756 $ 60,365
Firstar Oncore Value...................................... 3,452.8887 10.828904 $ 37,391
Firstar Oncore Premier.................................... 11,636.4486 10.802093 $ 125,698
MONEY MARKET SUBACCOUNT
VIA....................................................... 13,700.6031 29.394756 $ 402,726
Top I..................................................... 19,340.2021 22.273016 $ 430,765
Top Tradition............................................. 241,774.3690 19.846031 $ 4,798,261
Top Plus.................................................. 203,403.8299 12.825076 $ 2,608,669
Investar Vision........................................... 14,445.6480 11.182556 $ 161,539
Top Spectrum.............................................. 88,645.8194 11.182556 $ 991,287
Top Explorer.............................................. 405,403.8835 11.110127 $ 4,504,089
Oncore Flex............................................... 549,557.1660 10.606650 $ 5,828,961
Oncore Value.............................................. 482,255.4251 10.712095 $ 5,165,966
Oncore Premier............................................ 499,522.8606 10.624086 $ 5,306,974
Oncore Xtra............................................... 16,673.1519 10.624086 $ 177,137
Firstar Oncore Flex....................................... 31,390.5899 10.606650 $ 332,949
Firstar Oncore Value...................................... 5,626.0703 10.712095 $ 60,267
Firstar Oncore Premier.................................... 261,412.0405 10.624086 $ 2,777,264
BOND SUBACCOUNT
Top I..................................................... 18,331.0173 31.073387 $ 569,607
Top Tradition............................................. 115,711.6390 28.103600 $ 3,251,913
Top Plus.................................................. 152,433.1192 12.878760 $ 1,963,149
Investar Vision........................................... 54,573.4271 11.106666 $ 606,129
Top Spectrum.............................................. 31,151.3413 11.106666 $ 345,988
Top Explorer.............................................. 171,923.5035 11.176431 $ 1,921,491
Oncore Flex............................................... 2,370.7814 10.118406 $ 23,989
Oncore Value.............................................. 24,571.5807 10.219005 $ 251,097
Oncore Premier............................................ 84,867.0134 10.135054 $ 860,132
Firstar Oncore Flex....................................... 964.0847 10.118406 $ 9,755
Firstar Oncore Value...................................... 10,005.1815 10.219005 $ 102,243
Firstar Oncore Premier.................................... 91,401.6837 10.135054 $ 926,361
</TABLE>
(continued)
147
<PAGE> 100
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
OMNI SUBACCOUNT
Top I..................................................... 105,728,6917 44.721902 $ 4,728,388
Top Tradition............................................. 1,081,115.0680 44.619627 $48,238,951
Top Plus.................................................. 659,687.1543 18.649833 $12,303,055
Investar Vision........................................... 60,224.4934 13.141868 $ 791,462
Top Spectrum.............................................. 198,651.9109 13.141868 $ 2,610,657
Top Explorer.............................................. 615,889.6081 13.301816 $ 8,192,450
Oncore Flex............................................... 263.8439 10.283878 $ 2,713
Oncore Value.............................................. 69,067.7826 10.386121 $ 717,347
Oncore Premier............................................ 163,287.1967 10.300804 $ 1,681,990
Firstar Oncore Value...................................... 2,628.9892 10.386121 $ 27,305
Firstar Oncore Premier.................................... 29,455.0794 10.300804 $ 303,411
INTERNATIONAL SUBACCOUNT
Top I..................................................... 63,487.2893 28.609795 $ 1,816,358
Top Tradition............................................. 1,299,713.2342 28.609795 $37,184,529
Top Plus.................................................. 457,105.5723 25.287344 $11,558,985
Investar Vision........................................... 23,903.6867 17.107592 $ 408,935
Top Spectrum.............................................. 66,159.4896 17.107592 $ 1,131,829
Top Explorer.............................................. 255,314.7486 16.724379 $ 4,269,981
Oncore Flex............................................... 62,642.6234 15.413858 $ 965,565
Oncore Value.............................................. 5,655.0111 15.566909 $ 88,031
Oncore Premier............................................ 34,631.4387 15.439196 $ 534,682
Oncore Xtra............................................... 1,661.9389 15.439196 $ 25,659
Firstar Oncore Premier.................................... 1,124.9290 15.439196 $ 17,368
CAPITAL APPRECIATION SUBACCOUNT
Top I..................................................... 28,664.3419 16.361968 $ 469,005
Top Tradition............................................. 536,418.7191 16.361968 $ 8,776,866
Top Plus.................................................. 386,713.4574 18.313827 $ 7,082,203
Investar Vision........................................... 56,716.0246 12.464184 $ 706,919
Top Spectrum.............................................. 111,546.4445 12.464184 $ 1,390,336
Top Explorer.............................................. 318,046.5338 12.529034 $ 3,984,816
Oncore Flex............................................... 16,305.1798 10.310477 $ 168,114
Oncore Value.............................................. 86,824.8899 10.412976 $ 904,105
Oncore Premier............................................ 243,692.9690 10.327441 $ 2,516,725
Oncore Xtra............................................... 3,443.1569 10.327441 $ 35,559
Firstar Oncore Flex....................................... 2,324.3348 10.310477 $ 23,965
Firstar Oncore Value...................................... 1,865.3649 10.412976 $ 19,424
Firstar Oncore Premier.................................... 22,942.8568 10.327441 $ 236,941
SMALL CAP SUBACCOUNT
Top I..................................................... 47,967.0784 34.040041 $ 1,632,802
Top Tradition............................................. 776,054.7071 34.040041 $26,416,934
Top Plus.................................................. 343,324.8170 44.681338 $15,340,212
Investar Vision........................................... 72,280.4890 24.101318 $ 1,742,055
Top Spectrum.............................................. 76,021.6223 24.101318 $ 1,832,221
Top Explorer.............................................. 404,960.9957 28.306164 $11,462,892
</TABLE>
(continued)
148
<PAGE> 101
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
INTERNATIONAL SMALL COMPANY
Top I..................................................... 231.0028 26.188124 $ 6,049
Top Tradition............................................. 157,346.9200 26.188124 $ 4,120,621
Top Plus.................................................. 120,355.3194 28.196610 $ 3,393,612
Investar Vision........................................... 7,695.9074 23.172470 $ 178,333
Top Spectrum.............................................. 21,886.1016 23.172470 $ 507,155
Top Explorer.............................................. 164,036.4555 22.624490 $ 3,711,241
Oncore Flex............................................... 107.5086 15.087923 $ 1,622
Oncore Value.............................................. 5,266.9779 15.117443 $ 79,623
Oncore Premier............................................ 1,315.0321 15.092821 $ 19,848
AGGRESSIVE GROWTH SUBACCOUNT
Top Tradition............................................. 191,691.5942 12.995269 $ 2,491,084
Top Plus.................................................. 98,740.1647 15.731920 $ 1,553,372
Investar Vision........................................... 45,289.6168 12.368283 $ 560,155
Top Spectrum.............................................. 46,464.0777 12.368283 $ 574,681
Top Explorer.............................................. 85,202.1169 13.773504 $ 1,173,532
CORE GROWTH SUBACCOUNT
Top I..................................................... 782.9558 14.122842 $ 11,057
Top Tradition............................................. 202,849.2709 20.917283 $ 4,243,056
Top Plus.................................................. 110,748.2657 21.041443 $ 2,330,303
Top Spectrum.............................................. 1,003.2042 14.116011 $ 14,161
Top Explorer.............................................. 122,648.8349 24.676170 $ 3,026,504
GROWTH & INCOME SUBACCOUNT
Top I..................................................... 1,629.5810 13.191296 $ 21,497
Top Tradition............................................. 756,197.0985 22.964177 $17,365,444
Top Plus.................................................. 408,286.0826 23.100411 $ 9,431,576
Investar Vision........................................... 240.2768 14.870514 $ 3,573
Top Explorer.............................................. 617,635.0271 23.168879 $14,309,911
Oncore Flex............................................... 6,942.7025 14.846078 $ 103,072
Oncore Value.............................................. 125,615.4096 14.993591 $ 1,883,426
Oncore Premier............................................ 368,539.1782 14.870514 $ 5,480,367
Oncore Xtra............................................... 2,199.1170 14.870514 $ 32,702
Firstar Oncore Flex....................................... 1,509.3549 14.846078 $ 22,408
Firstar Oncore Value...................................... 4,277.2275 14.993591 $ 64,131
Firstar Oncore Premier.................................... 26,400.3652 14.870514 $ 392,587
</TABLE>
(continued)
149
<PAGE> 102
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
S&P 500 INDEX SUBACCOUNT
Top I..................................................... 4,722.4921 11.093933 $ 52,391
Top Tradition............................................. 1,516,466.2322 20.822980 $31,577,346
Top Plus.................................................. 682,512.8159 20.946479 $14,296,240
Investar Vision........................................... 120,329.4683 14.189120 $ 1,707,369
Top Spectrum.............................................. 204,487.9076 14.189120 $ 2,901,503
Top Explorer.............................................. 1,108,627.0983 20.224865 $22,421,833
Oncore Flex............................................... 152,919.5982 13.777077 $ 2,106,785
Oncore Value.............................................. 362,073.4946 13.913990 $ 5,037,887
Oncore Premier............................................ 1,239,736.3041 13.799740 $17,108,039
Oncore Xtra............................................... 19,198.0429 13.799740 $ 264,928
Firstar Oncore Flex....................................... 16,048.0340 13.777077 $ 221,095
Firstar Oncore Value...................................... 20,350.5968 13.913990 $ 283,158
Firstar Oncore Premier.................................... 249,937.0278 13.799740 $ 3,449,066
SOCIAL AWARENESS SUBACCOUNT
Top Tradition............................................. 25,583.6255 11.102565 $ 284,044
Top Plus.................................................. 26,823.5962 11.168486 $ 299,579
Top Explorer.............................................. 60,486.5340 11.781890 $ 712,646
STRATEGIC INCOME SUBACCOUNT
Investar Vision........................................... 76,570.0134 9.787698 $ 749,444
Top Spectrum.............................................. 33,039.0715 9.787698 $ 323,376
Firstar Oncore Flex....................................... 1,370.0386 9.306326 $ 12,750
Firstar Oncore Premier.................................... 17,414.7043 9.314702 $ 162,213
FIRSTAR GROWTH & INCOME SUBACCOUNT
Investar Vision........................................... 88,531.2834 11.020029 $ 975,617
Top Spectrum.............................................. 11,303.1927 11.020029 $ 124,562
Firstar Oncore Flex....................................... 3,708.7039 9.964343 $ 36,955
Firstar Oncore Value...................................... 1,820.4364 10.018395 $ 18,238
Firstar Oncore Premier.................................... 5,601.2747 9.973311 $ 55,863
RELATIVE VALUE SUBACCOUNT
Investar Vision........................................... 591,807.6008 15.956711 $ 9,443,303
Top Spectrum.............................................. 38,383.0847 15.956711 $ 612,468
Firstar Oncore Flex....................................... 10,856.7359 10.614952 $ 115,244
Firstar Oncore Value...................................... 39,249.6897 10.672522 $ 418,893
Firstar Oncore Premier.................................... 121,451.5170 10.624504 $ 1,290,362
BLUE CHIP SUBACCOUNT
Top I..................................................... 699.2021 10.358691 $ 7,243
Oncore Flex............................................... 17,594.8811 10.580255 $ 186,158
Oncore Value.............................................. 57,832.0614 10.685458 $ 617,962
Oncore Premier............................................ 182,178.0098 10.597676 $ 1,930,664
Firstar Oncore Flex....................................... 178.2566 10.580255 $ 1,886
Firstar Oncore Value...................................... 779.6577 10.685458 $ 8,331
Firstar Oncore Premier.................................... 6,180.6947 10.597676 $ 65,501
</TABLE>
(continued)
150
<PAGE> 103
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
EQUITY INCOME SUBACCOUNT
Top Tradition............................................. 1,549.5123 10.913281 $ 16,910
Top Plus.................................................. 179.1173 10.916683 $ 1,956
Top Explorer.............................................. 389.7263 10.909733 $ 4,252
Oncore Flex............................................... 6,537.5828 12.266014 $ 80,190
Oncore Value.............................................. 18,877.0369 12.387932 $ 233,847
Oncore Premier............................................ 116,891.7176 12.286197 $ 1,436,155
Firstar Oncore Flex....................................... 386.1890 12.266014 $ 4,737
Firstar Oncore Value...................................... 4,384.4283 12.387932 $ 54,314
Firstar Oncore Premier.................................... 19,047.1470 12.286197 $ 234,017
HIGH INCOME BOND SUBACCOUNT
Top Tradition............................................. 1,172.5307 10.285653 $ 12,060
Oncore Flex............................................... 12,614.0371 9.935713 $ 125,330
Oncore Value.............................................. 39,226.8291 10.034493 $ 393,621
Oncore Premier............................................ 184,858.1910 9.952059 $ 1,839,720
Oncore Xtra............................................... 3,057.6587 9.952059 $ 30,430
Firstar Oncore Flex....................................... 242.3580 9.935713 $ 2,408
Firstar Oncore Value...................................... 4,725.8990 10.034493 $ 47,422
Firstar Oncore Premier.................................... 10,164.8312 9.952059 $ 101,161
CAPITAL GROWTH SUBACCOUNT
Top I..................................................... 247.1413 14.195676 $ 3,508
Top Tradition............................................. 14,664.6816 14.195676 $ 208,175
Top Plus.................................................. 11,597.0845 14.200260 $ 164,682
Investar Vision........................................... 843.1787 30.942431 $ 26,090
Top Spectrum.............................................. 479.9235 30.942431 $ 14,850
Top Explorer.............................................. 9,169.6502 14.191098 $ 130,127
Oncore Flex............................................... 7,636.6292 30.891708 $ 235,909
Oncore Value.............................................. 93,895.6043 31.198097 $ 2,929,364
Oncore Premier............................................ 303,977.5456 30.942431 $ 9,405,804
Oncore Xtra............................................... 15,448.2368 30.942431 $ 478,006
Firstar Oncore Flex....................................... 26,333.5391 30.891708 $ 813,488
Firstar Oncore Value...................................... 3,335.4919 31.198097 $ 104,061
Firstar Oncore Premier.................................... 33,073.0963 30.942431 $ 1,023,362
DOW TARGET 10 JANUARY SUBACCOUNT
Oncore Flex............................................... 127.7672 10.154375 $ 1,297
Oncore Value.............................................. 21,069.8577 10.214066 $ 215,209
Oncore Premier............................................ 13,239.9717 10.164283 $ 134,575
DOW TARGET 10 FEBRUARY SUBACCOUNT
Oncore Flex............................................... 38,068.4590 10.538202 $ 401,174
Oncore Value.............................................. 14,604.7362 10.595352 $ 154,742
Oncore Premier............................................ 45,898.9474 10.547674 $ 484,127
Firstar Oncore Premier.................................... 11,433.6109 10.547674 $ 120,598
DOW TARGET 10 MARCH SUBACCOUNT
Oncore Flex............................................... 12,835.8989 10.096966 $ 129,603
Oncore Value.............................................. 10,785.0043 10.147105 $ 109,437
Oncore Premier............................................ 75,897.2123 10.105289 $ 766,963
Firstar Oncore Premier.................................... 981.4662 10.105289 $ 9,918
</TABLE>
(continued)
151
<PAGE> 104
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
DOW TARGET 10 APRIL SUBACCOUNT
Oncore Flex............................................... 884.2933 10.162000 $ 8,986
Oncore Value.............................................. 13,146.5142 10.207320 $ 134,191
Oncore Premier............................................ 103,816.9033 10.169517 $ 1,055,768
Firstar Oncore Value...................................... 3,373.5594 10.207320 $ 34,435
Firstar Oncore Premier.................................... 2,185.6495 10.169517 $ 22,227
DOW TARGET 10 MAY SUBACCOUNT
Oncore Flex............................................... 1,438.0558 8.314354 $ 11,957
Oncore Value.............................................. 5,995.1960 8.347547 $ 50,045
Oncore Premier............................................ 63,444.7734 8.319856 $ 527,851
Firstar Oncore Value...................................... 2,300.4363 8.347547 $ 19,203
Firstar Oncore Premier.................................... 12,909.7186 8.319856 $ 107,407
DOW TARGET 10 JUNE SUBACCOUNT
Oncore Flex............................................... 1,643.9210 8.965064 $ 14,737
Oncore Value.............................................. 13,889.1281 8.996165 $ 124,949
Oncore Premier............................................ 99,994.4823 8.970220 $ 896,973
Firstar Oncore Value...................................... 4,883.6365 8.996165 $ 43,934
Firstar Oncore Premier.................................... 8,513.3921 8.970220 $ 76,367
DOW TARGET 10 JULY SUBACCOUNT
Oncore Flex............................................... 228.7927 8.841905 $ 2,023
Oncore Value.............................................. 28,049.1275 8.868269 $ 248,747
Oncore Premier............................................ 69,698.4928 8.846278 $ 616,572
Firstar Oncore Value...................................... 2,237.5280 8.868269 $ 19,843
Firstar Oncore Premier.................................... 11,519.8731 8.846278 $ 101,908
DOW TARGET 10 AUGUST SUBACCOUNT
Oncore Flex............................................... 2,888.8557 8.907985 $ 25,734
Oncore Value.............................................. 9,506.7369 8.930326 $ 84,899
Oncore Premier............................................ 67,579.8599 8.911699 $ 602,251
Firstar Oncore Value...................................... 1,942.8182 8.930326 $ 17,350
Firstar Oncore Premier.................................... 8,316.2593 8.911699 $ 74,112
DOW TARGET 10 SEPTEMBER SUBACCOUNT
Oncore Flex............................................... 9,967.2466 8.789882 $ 87,611
Oncore Value.............................................. 77,832.1797 8.807215 $ 685,485
Oncore Premier............................................ 64,943.2943 8.792764 $ 571,031
Firstar Oncore Flex....................................... 573.2728 8.789882 $ 5,039
Firstar Oncore Value...................................... 1,750.8372 8.807215 $ 15,420
Firstar Oncore Premier.................................... 11,625.4684 8.792764 $ 102,220
DOW TARGET 10 OCTOBER SUBACCOUNT
Oncore Flex............................................... 13,448.1146 9.232746 $ 124,163
Oncore Value.............................................. 60,898.7628 9.246429 $ 563,096
Oncore Premier............................................ 60,045.8544 9.235010 $ 554,524
Firstar Oncore Flex....................................... 745.6070 9.232746 $ 6,884
Firstar Oncore Value...................................... 2,718.5630 9.246429 $ 25,137
Firstar Oncore Premier.................................... 13,142.2706 9.235010 $ 121,369
</TABLE>
(continued)
152
<PAGE> 105
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
DOW TARGET 10 NOVEMBER SUBACCOUNT
Top Tradition............................................. 2,102.4403 10.093952 $ 21,222
Top Plus.................................................. 660.3492 10.097329 $ 6,668
Top Explorer.............................................. 332.4929 10.090668 $ 3,355
Oncore Flex............................................... 4,234.1802 10.087394 $ 42,712
Oncore Value.............................................. 61,898.0895 10.097239 $ 625,000
Oncore Premier............................................ 54,376.6379 10.089029 $ 548,607
Firstar Oncore Value...................................... 1,305.5054 10.097239 $ 13,182
Firstar Oncore Premier.................................... 6,515.3941 10.089029 $ 65,734
DOW TARGET 10 DECEMBER SUBACCOUNT
Top Tradition............................................. 7.2611 10.007412 $ 73
Top Plus.................................................. 484.1448 10.009047 $ 4,846
Oncore Flex............................................... 726.5836 10.004157 $ 7,269
Oncore Value.............................................. 61,341.2462 10.009047 $ 613,967
Oncore Premier............................................ 55,848.8491 10.004968 $ 558,766
Oncore Xtra............................................... 1,047.1778 10.004968 $ 10,477
Firstar Oncore Value...................................... 1,653.1044 10.009047 $ 16,546
Firstar Oncore Premier.................................... 4,866.6822 10.004968 $ 48,691
DOW TARGET 5 SEPTEMBER SUBACCOUNT
Oncore Value.............................................. 1,002.8667 7.498869 $ 7,520
Oncore Premier............................................ 9,789.5370 7.486547 $ 73,290
DOW TARGET 5 OCTOBER SUBACCOUNT
Oncore Value.............................................. 945.5992 8.510857 $ 8,048
Oncore Premier............................................ 20,566.0291 8.500346 $ 174,818
Firstar Oncore Premier.................................... 269.8714 8.500346 $ 2,294
DOW TARGET 5 NOVEMBER SUBACCOUNT
Top Tradition............................................. 60.2390 9.960325 $ 600
Top Explorer.............................................. 1,151.1721 9.957083 $ 11,462
Oncore Value.............................................. 1,906.6407 9.963566 $ 18,997
Oncore Premier............................................ 6,840.9733 9.955465 $ 68,105
Firstar Oncore Premier.................................... 442.5710 9.955465 $ 4,406
DOW TARGET 5 DECEMBER SUBACCOUNT
Top Tradition............................................. 532.4209 10.006724 $ 5,328
Top Plus.................................................. 791.7667 10.008355 $ 7,924
Top Explorer.............................................. 124.0258 10.005092 $ 1,241
Oncore Value.............................................. 261.8501 10.008355 $ 2,621
Oncore Premier............................................ 4,715.5920 10.004277 $ 47,176
Oncore Xtra............................................... 2,906.1570 10.004277 $ 29,074
Firstar Oncore Premier.................................... 1,280.9521 10.004277 $ 12,815
FIDELITY VIP GROWTH SUBACCOUNT
Top Explorer.............................................. 501,352.0110 23.324677 $11,693,874
FIDELITY VIP EQUITY INCOME SUBACCOUNT
Top Explorer.............................................. 538,074.3966 14.463459 $ 7,782,417
FIDELITY VIP HIGH INCOME BOND SUBACCOUNT
Top Explorer.............................................. 225,514.1729 11.792460 $ 2,659,367
</TABLE>
(continued)
153
<PAGE> 106
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
JP MORGAN TRUST II SMALL COMPANY SUBACCOUNT
Oncore Flex............................................... 7,491.1401 11.845638 $ 88,738
Oncore Value.............................................. 49,349.7616 11.963367 $ 590,389
Oncore Premier............................................ 149,563.3049 11.865119 $ 1,774,586
Oncore Xtra............................................... 1,352.1145 11.865119 $ 16,043
Firstar Oncore Value...................................... 1,440.8987 11.963367 $ 17,238
Firstar Oncore Premier.................................... 13,582.1647 11.865119 $ 161,154
JANUS ASPEN GROWTH SUBACCOUNT
Top I..................................................... 7,706.6564 11.657335 $ 89,839
Top Tradition............................................. 140,899.1550 11.657335 $ 1,642,509
Top Plus.................................................. 44,857.9544 11.661117 $ 523,094
Investar Vision........................................... 4,815.7947 16.412037 $ 79,037
Top Spectrum.............................................. 9,514.7848 16.412037 $ 156,157
Top Explorer.............................................. 151,546.5339 11.653548 $ 1,766,055
Oncore Flex............................................... 163,861.6926 16.385089 $ 2,684,888
Oncore Value.............................................. 364,524.6723 16.547829 $ 6,032,092
Oncore Premier............................................ 1,570,318.5421 16.412037 $25,772,126
Oncore Xtra............................................... 37,224.0204 16.412037 $ 610,922
Firstar Oncore Flex....................................... 17,862.7653 16.385089 $ 292,683
Firstar Oncore Value...................................... 45,332.4119 16.547829 $ 750,153
Firstar Oncore Premier.................................... 332,982.7979 16.412037 $ 5,464,926
JANUS ASPEN INTERNATIONAL GROWTH SUBACCOUNT
Oncore Flex............................................... 228,781.0129 17.719378 $ 4,053,858
Oncore Value.............................................. 47,710.8170 17.895206 $ 853,795
Oncore Premier............................................ 134,070.6983 17.748475 $ 2,379,550
Oncore Xtra............................................... 16,246.1845 17.748475 $ 288,345
Firstar Oncore Flex....................................... 103.3332 17.719378 $ 1,831
Firstar Oncore Value...................................... 825.4725 17.895206 $ 14,772
Firstar Oncore Premier.................................... 18,747.5262 17.748475 $ 332,740
JANUS ASPEN WORLDWIDE GROWTH SUBACCOUNT
Top I..................................................... 3,184.5992 13.225533 $ 42,118
Top Tradition............................................. 84,103.9890 13.225533 $ 1,112,320
Top Plus.................................................. 19,885.7167 13.229802 $ 263,084
Investar Vision........................................... 97,360.0362 16.718939 $ 1,627,757
Top Spectrum.............................................. 44,451.8431 16.718939 $ 743,188
Top Explorer.............................................. 33,157.7854 13.221258 $ 438,387
Oncore Flex............................................... 363,327.4600 17.009248 $ 6,179,927
Oncore Value.............................................. 305,606.7470 17.178057 $ 5,249,730
Oncore Premier............................................ 912,558.4929 17.037179 $15,547,422
Oncore Xtra............................................... 6,228.0851 17.037179 $ 106,109
Firstar Oncore Flex....................................... 7,330.4240 17.009248 $ 124,685
Firstar Oncore Value...................................... 14,111.1411 17.178057 $ 242,402
Firstar Oncore Premier.................................... 110,328.3002 17.037179 $ 1,879,683
</TABLE>
(continued)
154
<PAGE> 107
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
JANUS ASPEN BALANCED SUBACCOUNT
Top I..................................................... 9,739.4961 11.025619 $ 107,384
Top Tradition............................................. 60,253.1661 11.025619 $ 664,329
Top Plus.................................................. 48,822.7898 11.029199 $ 538,476
Investar Vision........................................... 232,501.0013 14.945572 $ 3,474,860
Top Spectrum.............................................. 168,998.6313 14.945572 $ 2,525,781
Top Explorer.............................................. 31,406.7719 11.022042 $ 346,167
Oncore Flex............................................... 96,016.6259 14.511033 $ 1,393,300
Oncore Value.............................................. 291,076.5804 14.655190 $ 4,265,783
Oncore Premier............................................ 1,278,972.6940 14.534895 $18,589,734
Oncore Xtra............................................... 6,425.7086 14.534895 $ 93,397
Firstar Oncore Flex....................................... 27,171.4633 14.511033 $ 394,286
Firstar Oncore Value...................................... 68,197.9558 14.655190 $ 999,454
Firstar Oncore Premier.................................... 488,866.1390 14.534895 $ 7,105,618
SALOMON BROTHERS VARIABLE CAPITAL SUBACCOUNT
Oncore Flex............................................... 22,316.3893 12.822212 $ 286,146
Oncore Value.............................................. 15,061.3061 12.949634 $ 195,038
Oncore Premier............................................ 48,410.0533 12.843310 $ 621,745
Firstar Oncore Value...................................... 176.4529 12.949634 $ 2,285
Firstar Oncore Premier.................................... 360.9661 12.843310 $ 4,636
SALOMON BROTHERS VARIABLE TOTAL RETURN SUBACCOUNT
Oncore Flex............................................... 4,262.9418 9.927581 $ 42,321
Oncore Value.............................................. 29,172.3088 10.026301 $ 292,490
Oncore Premier............................................ 104,876.9471 9.943926 $ 1,042,889
Firstar Oncore Value...................................... 212.3415 10.026301 $ 2,129
Firstar Oncore Premier.................................... 4,390.3183 9.943926 $ 43,657
SALOMON BROTHERS VARIABLE INVESTORS SUBACCOUNT
Oncore Flex............................................... 7,637.0180 11.137851 $ 85,060
Oncore Value.............................................. 7,740.9521 11.248581 $ 87,075
Oncore Premier............................................ 20,591.3978 11.156179 $ 229,721
Oncore Xtra............................................... 595.7237 11.156179 $ 6,646
Firstar Oncore Premier.................................... 3,895.0612 11.156179 $ 43,454
STRONG OPPORTUNITY II SUBACCOUNT
Top Tradition............................................. 1,268.4347 11.158443 $ 14,154
Top Spectrum.............................................. 118.3234 12.694022 $ 1,502
Top Explorer.............................................. 374.7290 11.154825 $ 4,180
Oncore Flex............................................... 3,803.2515 12.673177 $ 48,199
Oncore Value.............................................. 42,101.5604 12.799099 $ 538,862
Oncore Premier............................................ 164,057.5372 12.694022 $ 2,082,550
Firstar Oncore Value...................................... 1,842.3172 12.799099 $ 23,580
Firstar Oncore Premier.................................... 16,251.7443 12.694022 $ 206,300
</TABLE>
(continued)
155
<PAGE> 108
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
STRONG SCHAFER VALUE II SUBACCOUNT
Top Tradition............................................. 371.6809 10.284400 $ 3,822
Top Plus.................................................. 1,392.3937 10.287746 $ 14,325
Oncore Flex............................................... 2,014.9968 8.982623 $ 18,100
Oncore Value.............................................. 15,955.9657 9.071960 $ 144,752
Oncore Premier............................................ 19,061.9690 8.997405 $ 171,508
Firstar Oncore Flex....................................... 1,481.5272 8.982623 $ 13,308
Firstar Oncore Value...................................... 737.3269 9.071960 $ 6,689
Firstar Oncore Premier.................................... 17,003.5694 8.997405 $ 152,988
STRONG MID-CAP GROWTH II SUBACCOUNT
Top I..................................................... 1,509.6402 12.916791 $ 19,500
Top Tradition............................................. 15,603.5461 12.916791 $ 201,548
Top Plus.................................................. 5,045.1508 12.920972 $ 65,188
Investar Vision........................................... 1,270.9128 21.584486 $ 27,432
Top Spectrum.............................................. 374.1113 21.584486 $ 8,075
Top Explorer.............................................. 14,858.2299 12.912611 $ 191,859
Oncore Flex............................................... 19,020.8819 21.549079 $ 409,882
Oncore Value.............................................. 141,224.8199 21.762989 $ 3,073,474
Oncore Premier............................................ 446,689.2989 21.584486 $ 9,641,559
Oncore Xtra............................................... 9,304.8313 21.584486 $ 200,840
Firstar Oncore Flex....................................... 1,322.0055 21.549079 $ 28,488
Firstar Oncore Value...................................... 9,237.7017 21.762989 $ 201,040
Firstar Oncore Premier.................................... 58,503.2694 21.584486 $ 1,262,763
MORGAN STANLEY UNIVERSAL FIXED INCOME SUBACCOUNT
Oncore Flex............................................... 30,259.2291 10.120748 $ 306,246
Oncore Value.............................................. 36,367.5348 10.221395 $ 371,727
Oncore Premier............................................ 194,186.8821 10.137397 $ 1,968,550
Oncore Xtra............................................... 975.7929 10.137397 $ 9,892
Firstar Oncore Value...................................... 14,676.5681 10.221395 $ 150,015
Firstar Oncore Premier.................................... 135,853.5135 10.137397 $ 1,377,201
MORGAN STANLEY UNIVERSAL US REAL ESTATE SUBACCOUNT
Top Tradition............................................. 2,245.1975 10.146637 $ 22,781
Top Plus.................................................. 1,072.0214 10.149941 $ 10,881
Top Spectrum.............................................. 3,269.8629 8.687826 $ 28,408
Top Explorer.............................................. 197.1736 10.143343 $ 2,000
Oncore Flex............................................... 523.0088 8.673554 $ 4,536
Oncore Value.............................................. 12,694.2055 8.759824 $ 111,199
Oncore Premier............................................ 25,702.5009 8.687826 $ 223,299
Firstar Oncore Flex....................................... 1,174.7203 8.673554 $ 10,189
Firstar Oncore Value...................................... 672.2738 8.759824 $ 5,889
Firstar Oncore Premier.................................... 2,719.5526 8.687826 $ 23,627
MORGAN STANLEY UNIVERSAL VALUE SUBACCOUNT
Oncore Flex............................................... 4,534.2658 8.506511 $ 38,570
Oncore Value.............................................. 11,661.5696 8.591085 $ 100,186
Oncore Premier............................................ 83,613.7461 8.520515 $ 712,432
Firstar Oncore Premier.................................... 6,198.5690 8.520515 $ 52,815
</TABLE>
(continued)
156
<PAGE> 109
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 Value.............................................. 5,639.6427 8.645671 $ 48,758
Oncore Premier............................................ 12,095.4295 8.574587 $ 103,713
Firstar Oncore Value...................................... 263.7158 8.645671 $ 2,280
Firstar Oncore Premier.................................... 2,947.4306 8.574587 $ 25,273
GOLDMAN SACHS VIT GROWTH & INCOME SUBACCOUNT
Top I..................................................... 80.6364 10.502077 $ 847
Top Tradition............................................. 2,420.2744 10.502077 $ 25,418
Top Explorer.............................................. 14.9702 10.498657 $ 157
Oncore Flex............................................... 32,934.3714 9.183018 $ 302,437
Oncore Value.............................................. 66,092.1691 9.274350 $ 612,962
Oncore Premier............................................ 173,292.3394 9.198141 $ 1,593,967
Firstar Oncore Value...................................... 4,501.4475 9.274350 $ 41,748
Firstar Oncore Premier.................................... 20,972.4987 9.198141 $ 192,908
GOLDMAN SACHS VIT CORE US EQUITY SUBACCOUNT
Top Tradition............................................. 6,750.6129 10.924941 $ 73,750
Top Plus.................................................. 1,588.9386 10.928488 $ 17,364
Top Spectrum.............................................. 9,482.1655 12.485861 $ 118,393
Top Explorer.............................................. 3,760.7009 10.921392 $ 41,072
Oncore Flex............................................... 31,465.4134 12.465356 $ 392,228
Oncore Value.............................................. 82,120.9562 12.589226 $ 1,033,839
Oncore Premier............................................ 235,168.5453 12.485861 $ 2,936,282
Oncore Xtra............................................... 7,269.5828 12.485861 $ 90,767
Firstar Oncore Value...................................... 1,078.5413 12.589226 $ 13,578
Firstar Oncore Premier.................................... 8,318.3691 12.485861 $ 103,862
GOLDMAN SACHS VIT GLOBAL INCOME SUBACCOUNT
Oncore Flex............................................... 13,311.3877 10.301425 $ 137,127
Oncore Value.............................................. 8,472.4519 10.403879 $ 88,146
Oncore Premier............................................ 38,850.6331 10.318388 $ 400,876
Firstar Oncore Premier.................................... 13,246.6428 10.318388 $ 136,684
GOLDMAN SACHS VIT CAPITAL GROWTH SUBACCOUNT
Top Tradition............................................. 7,406.8802 11.178377 $ 82,796
Investar Vision........................................... 24,840.9638 14.522089 $ 360,743
Top Spectrum.............................................. 31,012.5892 14.522089 $ 450,368
Top Explorer.............................................. 526.4069 11.174753 $ 5,882
Oncore Flex............................................... 6,937.6843 14.007791 $ 97,182
Oncore Value.............................................. 28,310.0209 14.146953 $ 400,501
Oncore Premier............................................ 212,314.1648 14.030812 $ 2,978,940
Oncore Xtra............................................... 37.0613 14.030812 $ 520
Firstar Oncore Flex....................................... 1,683.7059 14.007791 $ 23,585
Firstar Oncore Premier.................................... 4,558.6813 14.030812 $ 63,962
</TABLE>
(continued)
157
<PAGE> 110
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ACCUMULATION UNITS VALUE PER UNIT VALUE
------------------ -------------- -----------
<S> <C> <C> <C>
LAZARD RETIREMENT EMERGING MARKET SUBACCOUNT
Top Tradition............................................. 7,037.4599 12.512192 $ 88,054
Investar Vision........................................... 32,336.4784 11.482079 $ 371,290
Top Spectrum.............................................. 11,355.8703 11.482079 $ 130,389
Top Explorer.............................................. 67,419.5358 12.508143 $ 843,293
Oncore Flex............................................... 2,965.5590 11.476404 $ 34,034
Oncore Value.............................................. 6,708.5963 11.510559 $ 77,220
Oncore Premier............................................ 19,871.2906 11.482079 $ 228,164
Firstar Oncore Premier.................................... 1,603.4553 11.482079 $ 18,411
LAZARD RETIREMENT SMALL CAP SUBACCOUNT
Top Tradition............................................. 874.9037 10.538021 $ 9,219
Top Plus.................................................. 298.7037 10.541450 $ 3,149
Top Explorer.............................................. 712.4710 10.534599 $ 7,506
Oncore Value.............................................. 1,274.7400 9.311327 $ 11,870
Oncore Premier............................................ 11,325.7393 9.288255 $ 105,196
PAINEWEBBER STRATEGIC INCOME CL I SUBACCOUNT
Oncore Value.............................................. 1,755.8847 10.004230 $ 17,566
Oncore Premier............................................ 9,653.8847 9.979456 $ 96,341
Firstar Oncore Flex....................................... 782.4520 9.974528 $ 7,804
Firstar Oncore Premier.................................... 420.3636 9.979456 $ 4,195
PAINEWEBBER GROWTH & INCOME CL I SUBACCOUNT
Oncore Flex............................................... 1,344.9908 10.503936 $ 14,128
Oncore Value.............................................. 2,476.9725 10.535221 $ 26,095
Oncore Premier............................................ 47,669.3273 10.509120 $ 500,963
Firstar Oncore Flex....................................... 5,966.1445 10.503936 $ 62,668
Firstar Oncore Premier.................................... 574.1680 10.509120 $ 6,034
PAINEWEBBER TACTICAL ALLOCATION CL I SUBACCOUNT
Oncore Flex............................................... 84,698.0996 10.464132 $ 886,292
Oncore Value.............................................. 8,361.4022 10.495301 $ 87,756
Oncore Premier............................................ 111,032.1881 10.469307 $ 1,162,430
Oncore Xtra............................................... 2,260.5126 10.469307 $ 23,666
Firstar Oncore Premier.................................... 885.7320 10.469307 $ 9,273
PAINEWEBBER SMALL CAP CL I SUBACCOUNT
Oncore Flex............................................... 116.3357 10.784880 $ 1,255
Oncore Premier............................................ 11,819.4513 10.790213 $ 127,534
</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 items.
(continued)
158
<PAGE> 111
OHIO NATIONAL VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
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 $390,000 during 1999.
(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.
(7) DOW TARGET FUNDS
Dow Target 10 January Period from January 4, 1999 date of commencement of
operations
Dow Target 10 February Period from February 1, 1999 date of commencement of
operations
Dow Target 10 March Period from March 1, 1999 date of commencement of
operations
Dow Target 10 April Period from April 1, 1999 date of commencement of
operations
Dow Target 10 May Period from May 3, 1999 date of commencement of operations
Dow Target 10 June Period from June 1, 1999 date of commencement of operations
Dow Target 10 July Period from July 1, 1999 date of commencement of operations
Dow Target 10 August Period from August 2, 1999 date of commencement of
operations
Dow Target 10 September Period from September 1, 1999 date of commencement of
operations
Dow Target 10 October Period from October 1, 1999 date of commencement of
operations
Dow Target 10 November Period from November 1, 1999 date of commencement of
operations
Dow Target 10 December Period from December 1, 1999 date of commencement of
operations
Dow Target 5 September Period from September 1, 1999 date of commencement of
operations
Dow Target 5 October Period from October 1, 1999 date of commencement of
operations
Dow Target 5 November Period from November 1, 1999 date of commencement of
operations
Dow Target 5 December Period from December 1, 1999 date of commencement of
operations
159
<PAGE> 112
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 Equity, Money
Market, Bond, Omni, International, Capital Appreciation (formerly Small Cap
Growth), Small Cap, International Small Company (formerly Global Contrarian),
Aggressive Growth, Core Growth, Growth & Income, S&P 500 Index, Social
Awareness, Strategic Income, Firstar Growth & Income (formerly Stellar),
Relative Value, Blue Chip, Equity Income, High Income Bond, Capital Growth, Dow
Target 10 January, Dow Target 10 February, Dow Target 10 March, Dow Target 10
April, Dow Target 10 May, Dow Target 10 June, Dow Target 10 July, Dow Target 10
August, Dow Target 10 September, Dow Target 10 October, Dow Target 10 November,
Dow Target 10 December, Dow Target 5 September, Dow Target 5 October, Dow Target
5 November, Dow Target 5 December, Fidelity Investments -- VIP Growth, Fidelity
Investments -- VIP Equity Income, Fidelity Investments -- VIP High Income, J.P.
Morgan Trust II -- 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-Mid-Cap 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, Goldman Sachs VIT Capital Growth, Lazard Retirement Emerging Market,
Lazard Retirement Small Cap, Series Trust PaineWebber Mutual Funds-Strategic
Income Class I, Series Trust PaineWebber Mutual Funds-Growth & Income Class I,
Series Trust PaineWebber Mutual Funds-Tactical Allocation Class I and Series
Trust PaineWebber Mutual Funds-Small Cap Class I subaccounts) (collectively, the
Account) as of December 31, 1999 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 Account's management.
Our responsibility is to express an opinion on these financial 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, 1999, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Ohio National Variable Account
A as of December 31, 1999, and the results of its operations and its changes in
contract owners' equity for each of the periods indicated herein in conformity
with generally accepted accounting principles.
KPMG LLP
Cincinnati, Ohio
February 18, 2000
160
<PAGE> 113
OHIO NATIONAL VARIABLE ACCOUNT A
FORM N-4
PART C
OTHER INFORMATION
<PAGE> 114
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
The following financial statements of the Registrant are included in Part B of
this Registration Statement:
Independent Auditors' Report of KPMG LLP dated February 18, 2000
Statements of Assets and Contract Owners' Equity dated December 31, 1999
Statement of Operations and Changes in Contract Owners' Equity for the
Years Ended December 31, 1999 and 1998
Notes to Financial Statements dated December 31, 1999
Schedules of Changes in Unit Values for the Years Ended December 31, 1999
and 1998
The following consolidated financial statements of the Depositor and its
subsidiaries are also included in Part B of this Registration Statement:
Independent Auditors' Report of KPMG LLP dated January 29, 2000
Consolidated Balance Sheets dated December 31, 1999 and 1998
Consolidated Statements of Income for the Years Ended December 31, 1999,
1998 and 1997
Consolidated Statements of Equity for the Years Ended December 31, 1999,
1998 and 1997
Consolidated Statements of Cash Flows for the Years Ended December 31,
1999, 1998 and 1997
Notes to Consolidated Financial Statements dated December 31, 1999, 1998
and 1997
Consent of the following:
KPMG LLP
Exhibits:
All relevant exhibits, which have previously been filed with the Commission and
are incorporated herein by reference, are as follows:
(1) Resolution of Board of Directors of the Depositor authorizing
establishment of the Registrant was filed as Exhibit A(1) of the
Registrant's registration statement on Form S-6 on August 3, 1982
(File no. 2-78652).
-1-
<PAGE> 115
(3)(a) Principal Underwriting Agreement for Variable Annuities between
the Depositor and Ohio National Equities, Inc. was filed as
Exhibit (3)(a) of the Registrant's Form N-4 on December 30, 1997
(File no. 333-43511).
(3)(b) Registered Representative's Sales Contract with Variable Annuity
Supplement was filed as Exhibit (3)(b) of the Registrant's Form
N-4, Post-effective Amendment no. 9 on February 27, 1991 (File
no. 2-91213).
(3)(c) Variable Annuity Sales Commission Schedule was filed as Exhibit
A(3)(c) of the Registrant's registration statement on Form S-6 on
May 18, 1984 (File no. 2-91213).
(3)(d) Selling Agreement and commission schedule between Ohio National
Equities, Inc. and other broker-dealers for the distribution of
"ONcore" Variable Annuities was filed as Exhibit (3)(d) of the
Registrant's Form N-4, Pre-effective Amendment No. 2 on April 16,
1998.
(3)(e) Fund Participation Agreement between the Depositor and Janus Aspen
Series was filed as Exhibit (3)(e) of the Registrant's Form N-4,
Pre-effective Amendment no. 1 on April 10, 1998
(File no. 333-43511).
(3)(f) Participation Agreement between the Depositor and Strong Variable
Insurance Funds, Inc. was filed as Exhibit (3)(f) of the
Registrant's Form N-4, Pre-effective Amendment no. 1 on
April 10, 1998 (File no. 333-43511).
(4) Variable Deferred Annuity Contract, Form 98-VA-2, was filed as
Exhibit (4) of the Registrant's form N-4 on December 30, 1997
(File no. 333-43511).
(5)(a) Tax-Qualified Variable Annuity Application, Form V-4890-A, was
filed as Exhibit (5)(a) of the Registrant's registration statement
on Form N-4, Post-effective Amendment no. 18 on April 25, 1996
(File No. 2-91213).
(6)(a) Articles of Incorporation of the Depositor were filed as Exhibit
A(6)(a) of Ohio National Variable Interest Account registration
statement on Form N-8B-2 on July 11, 1980 (File no. 811-3060).
(6)(b) Code of Regulations (by-laws) of the Depositor were filed as
Exhibit A(6)(b) of Ohio National Variable Interest Account
registration statement on Form N-8B-2 on July 11, 1980 (File no.
811-3060).
(8) Powers of Attorney by certain Directors of the Depositor were filed
as Exhibit (8) of the Registrant's Form N-4, Post-effective
Amendment no. 22 on March 2, 1998 (File no. 2-91213) and Exhibit
(8)(a) of the Registrant's Form N-4, Post-effective Amendment No.
2 on March 2, 1999 (File No. 333-43511).
-2-
<PAGE> 116
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Depositor
---------------- --------------
<S> <C>
Trudy K. Backus* Vice President, Individual Insurance Services
Thomas A. Barefield* Senior Vice President, Institutional Sales
Lee E. Bartels* Vice President, Individual Underwriting
Operations
Howard C. Becker* Senior Vice President, Individual Insurance
& Corporate Services
Ronald L. Benedict* Corporate Vice President, Counsel and
Secretary
Michael A. Boedeker* Vice President, Senior Investment Officer
Robert A. Bowen* Senior Vice President, Information Systems
Roylene M. Broadwell* Vice President & Treasurer
Dale P. Brown Director
36 East Seventh Street
Cincinnati, Ohio 45202
Jack E. Brown Director
50 E. Rivercenter Blvd.
Covington, Kentucky 41011
William R. Burleigh Director
One West Fourth Street
Suite 1100
Cincinnati, Ohio 45202
Victoria B. Buyniski-Gluckman Director
2343 Auburn Avenue
Cincinnati, Ohio 45219
Christopher A. Carlson* Vice President, Senior Investment Officer
George E. Castrucci Director
8355 Old Stable Road
Cincinnati, Ohio 45243
Raymond R. Clark Director
201 East Fourth Street
Cincinnati, Ohio 45202
David W. Cook* Senior Vice President and Actuary
Ronald J. Dolan* Director and Executive Vice President and
Chief Financial Officer
Michael J. Ferry* Vice President, Information Systems
John W. Hayden Director
7000 Midland Boulevard
Batavia, Ohio 45103
Michael F. Haverkamp* Vice President and Counsel
John A. Houser III* Vice President, Claims
</TABLE>
-3-
<PAGE> 117
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Depositor
---------------- --------------
<S> <C>
Charles S. Mechem, Jr. Director
One East Fourth Street
Cincinnati, Ohio 45202
James I. Miller, II* Vice President and Actuary
Carolyn M. Nightingale* Vice President, Marketing Support
Thomas O. Olson* Vice President & Chief Underwriting Officer
David B. O'Maley* Director, Chairman, President and Chief
Executive Officer
James F. Orr Director
201 East Fourth Street
Cincinnati, Ohio 45202
John J. Palmer* Director and Executive Vice President,
Strategic Initiatives
George B. Pearson, Jr.* Vice President, PGA Marketing
J. Donald Richardson* Senior Regional Vice President
D. Gates Smith* Director and Executive Vice President,
Agency and Group Distribution
Michael D. Stohler* Vice President, Mortgages and Real Estate
Stuart G. Summers* Director and Executive Vice President and
General Counsel
Dennis C. Twarogowski* Vice President, Career Marketing
Oliver W. Waddell Director
425 Walnut Street
Cincinnati, Ohio 45202
Dr. David S. Williams* Vice President and Medical Director
</TABLE>
*The principal business address for these individuals is One Financial Way,
Montgomery, Ohio 45242.
-4-
<PAGE> 118
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
THE OHIO NATIONAL LIFE INSURANCE COMPANY/CINCINNATI
A MUTUAL LIFE INSURANCE COMPANY INCORPORATED UNDER THE LAWS OF OHIO
--------------------------------------------------------------------------------
<S> <C>
------------------------------- -----------------------------
ENTERPRISE PARK, INC. OHIO NATIONAL EQUITIES INC.
A GEORGIA CORPORATION A BROKER/DEALER
REAL ESTATE DEVELOPMENT COMPANY CAPITALIZED BY ONLI @ $30,000
CAPITALIZED BY ONLI $50,000
------------------------------- --------------------------------
Pres. & Dir. M. Stohler Chm. & Dir. D. O'Maley
V.P. & Dir. R. Dolan Pres. & Dir. J. Palmer
Secy. & Dir. J. Fischer VP & Dir. T. Backus
Treas. & Dir. J. Sander VP & Dir. J. Miller
Vice Pres. C. Carlson Sr. VP T. Barefield
Secretary & Dir. R. Benedict
Treasurer & B. Turner
Compliance Officer
Asst. Secy. M. Haverkamp
Asst. Treas. L. Weiler
------------------------------- --------------------------------
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
THE OHIO NATIONAL LIFE INSURANCE COMPANY/CINCINNATI
A MUTUAL LIFE INSURANCE COMPANY INCORPORATED UNDER THE LAWS OF OHIO
-------------------------------------------------------------------------------------------------------------------
S E P A R A T E A C C O U N T S
--------------------------------
A B C D E F
--------------------------------
<S> <C> <C>
------------------------------- ------------------------------ -------------------------------------
OHIO NATIONAL INVESTMENTS, INC. THE O.N. EQUITY SALES COMPANY OHIO NATIONAL LIFE
ASSURANCE CORPORATION
AN INVESTMENT ADVISER AN OHIO CORPORATION AN OHIO CORPORATION
CAPITALIZED BY ONLI @ $10,000 A BROKER/DEALER A STOCK LIFE INSURANCE COMPANY
CAPITALIZED BY ONLI @ $790,000 CAPITALIZED BY ONLI @ $32,000,000
INCORPORATED UNDER THE LAWS OF OHIO
------------------------------- ------------------------------ ------------------------------------
Chm. & Dir. D. O'Maley Chm./Pres/.CEO & Dir. D. O'Maley
Pres. & Dir. C. Carlson Sr. VP & Dir. R. Dolan
Pres. & Dir. J. Palmer Sr. VP & Dir. J. Palmer
VP & Dir. M. Boedeker Sr. VP & Dir. S. Summers
V.P. & Dir. D. Twarogowski
VP & Dir. M. Stohler Sr. VP T. Barefield
Secy. & Dir. M. Haverkamp Sr. Vice Pres. A. Bowen
Dir. D. O'Maley Sr. Vice Pres. D. Cook
Dir. J. Palmer Treasurer & B. Turner Sr. Vice Pres. G. Smith
Treasurer D. Taney Compliance Director Vice Pres. & Treas. R. Broadwell
Vice President M. Boedeker
Secretary R. Benedict Vice President T. Backus
Vice President G. Pearson
VP S. Komrska Vice President M. Stohler
Vice Pres. J. Houser
VP J. Martin Vice President D. Twarogowski
VP & Secy. R. Benedict
Asst. Secy. J. Fischer
Asst. Actuary K. Flischel
------------------------------- ------------------------------ -----------------------------------
SEPARATE ACCOUNT
-----------------------------------
R
---
<CAPTION>
<= Advisor to Advisor to =>
--------------------------------------------------------
<S> <C> <C>
------------------ -------------------------------- --------------------------------
ONE FUND, INC. O.N. INVESTMENT MANAGEMENT CO. OHIO NATIONAL FUND
A MARYLAND CORPORATION AN OHIO CORPORATION A MARYLAND CORPORATION
AN OPEN END DIVERSIFIED A FINANCIAL ADVISORY SERVICE AN OPEN END DIVERSIFIED
MANAGEMENT INVESTMENT COMPANY CAPITALIZED BY ONESCO @ $145,000 MANAGEMENT INVESTMENT COMPANY
----------------------------- -------------------------------- --------------------------------
Pres. & Dir. J. Palmer Pres. & Dir. J. Palmer Pres. & Dir. J. Palmer
Vice. Pres. M. Boedeker ----- Vice President M. Boedeker
VP & Dir. G. Smith Vice President T. Barefield
Vice Pres. T. Barefield VP & Dir. D. Twarogowski Treasurer D. Taney
Treasurer D. Taney Treasurer D. Taney ----- Secy. & Dir. R. Benedict
Secy. & Dir. R. Benedict Director R. Love
Director R. Love Secretary & Dir. M. Haverkamp Director J. Bushman
Director J. Bushman Director G. Vredeveld
Director G. Vredeveld Sr. VP T. Barefield
--------------------------------- -------------------------------- ---------------------------------
</TABLE>
<PAGE> 119
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
The Organization Chart showing the relationships among the Depositor, the
Registrant and their affiliated entities is on page 4A hereof.
ITEM 27. NUMBER OF CONTRACTOWNERS
As of December 5, 2000, the Registrant's contracts were owned by 33,340 owners.
ITEM 28. INDEMNIFICATION
The sixth article of the Depositor's Articles of Incorporation, as amended,
provides as follows:
Each former, present and future Director, Officer or Employee of the
Corporation (and his heirs, executors or administrators), or any such
person (and his heirs, executors or administrators) who serves at the
Corporation's request as a director, officer, partner, member or employee
of another corporation, partnership or business organization or
association of any type whatsoever shall be indemnified by the Corporation
against reasonable expenses, including attorneys' fees, judgments, fine
and amounts paid in settlement actually and reasonably incurred by him in
connection with the defense of any contemplated, pending or threatened
action, suit or proceeding, civil, criminal, administrative or
investigative, other than an action by or in the right of the corporation,
to which he is or may be made a party by reason of being or having been
such Director, Officer, or Employee of the Corporation or having served at
the Corporation's request as such director, officer, partner, member or
employee of any other business organization or association, or in
connection with any appeal therein, provided a determination is made by
majority vote of a disinterested quorum of the Board of Directors (a) that
such a person acted in good faith and in a manner he reasonably believed
to be in or not opposed to the best interests of the Corporation, and (b)
that, in any matter the subject of criminal action, suit or proceeding,
such person had no reasonable cause to believe his conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its
equivalent, shall not, of itself create a presumption that the person did
not act in good faith in any manner which he reasonably believed to be in
or not opposed to the best interests of the Corporation, and with respect
to any criminal action or proceeding, he had reasonable cause to believe
that his conduct was unlawful. Such right of indemnification shall not be
deemed exclusive of any other rights to which such person may be entitled.
The manner by which the right to indemnification shall be determined in
the absence of a disinterested quorum of the Board of Directors shall be
set forth in the Code of Regulations or in such other manner as permitted
by law. Each former, present, and future Director, Officer or Employee of
the Corporation (and his heirs, executors or administrators) who serves at
the Corporation's request as a director, officer, partner, member or
employee of another corporation, partnership or business organization or
association of any type whatsoever shall be indemnified by the Corporation
against reasonable expenses, including attorneys' fees, actually and
reasonably incurred by him in connection with the defense or settlement of
any contemplated, pending or threatened action, suit or proceeding, by or
in the right of the Corporation to procure a judgment in its favor, to
which he is or may be a party by reason of being or having been such
Director, Officer or Employee of the Corporation or having served at the
Corporation's request as such director, officer, partner, member or
employee of any other business organization or association, or in
connection with any appeal therein, provided a determination is made by
majority vote of a disinterested quorum of the Board of Directors (a) that
such person was not, and has not been adjudicated to have been negligent
or guilty of misconduct in the performance of his duty to the Corporation
or to such other business organization or association, and (b) that such
person acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Corporation.
-5-
<PAGE> 120
Such right of indemnification shall not be deemed exclusive of any other
rights to which such person may be entitled. The manner by which the right
of indemnification shall be determined in the absence of a disinterested
quorum of the Board of Directors shall be as set forth in the Code of
Regulations or in such other manner as permitted by law.
In addition, Article XII of the Depositor's Code of Regulations states as
follows:
If any director, officer or employee of the Corporation may be entitled to
indemnification by reason of Article Sixth of the Amended Articles of
Corporation, indemnification shall be made upon either (a) a determination
in writing of the majority of disinterested directors present, at a
meeting of the Board at which all disinterested directors present
constitute a quorum, that the director, officer or employee in question
was acting in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of this Corporation or of such other
business organization or association in which he served at the
Corporation's request, and that, in any matter which is the subject of a
criminal action, suit or proceeding, he had no reasonable cause to believe
that his conduct was unlawful and in an action by or in the right of the
Corporation to procure a judgment in its favor that such person was not
and has not been adjudicated to have been negligent or guilty of
misconduct in the performance of his duty to the Corporation or to such
other business organization or association; or (b) if the number of all
disinterested directors would not be sufficient at any time to constitute
a quorum, or if the number of disinterested directors present at two
consecutive meetings of the Board has not been sufficient to constitute a
quorum, a determination to the same effect as set forth in the foregoing
clause (a) shall be made in a written opinion by independent legal counsel
other than an attorney, or a firm having association with it an attorney,
who has been retained by or who has performed services for this
Corporation, or any person to be indemnified within the past five years,
or by the majority vote of the policyholders, or by the Court of Common
Pleas or the court in which such action, suit or proceeding was brought.
Prior to making any such determination, the Board of Directors shall first
have received the written opinion of General Counsel that a number of
directors sufficient to constitute a quorum, as named therein, are
disinterested directors. Any director who is a party to or threatened with
the action, suit or proceeding in question, or any related action, suit or
proceeding, or has had or has an interest therein adverse to that of the
Corporation, or who for any other reason has been or would be affected
thereby, shall not be deemed a disinterested director and shall not be
qualified to vote on the question of indemnification. Anything in this
Article to the contrary notwithstanding, if a judicial or administrative
body determines as part of the settlement of any action, suit or
proceeding that the Corporation should indemnify a director, officer or
employee for the amount of the settlement, the Corporation shall so
indemnify such person in accordance with such determination. Expenses
incurred with respect to any action, suit or proceeding which may qualify
for indemnification may be advanced by the Corporation prior to final
disposition thereof upon receipt of an undertaking by or on behalf of the
director, officer or employee to repay such amount if it is ultimately
determined hereunder that he is not entitled to indemnification or to the
extent that the amount so advanced exceeds the indemnification to which he
is ultimately determined to be entitled.
ITEM 29. PRINCIPAL UNDERWRITERS
The principal underwriter of the Registrant's securities is presently Ohio
National Equities, Inc. ("ONEQ"). ONEQ is a wholly-owned subsidiary of
the Depositor. ONEQ also serves as the principal underwriter of securities
issued by Ohio National Variable Accounts B and D, other separate accounts of
the Depositor which are registered as unit investment trusts; and Ohio National
Variable Account R, a separate account of the Depositor's subsidiary, Ohio
National Life Assurance Corporation, which separate account is also registered
as a unit investment trust; and ONE Fund, Inc., an open-end investment company
of the management type.
-6-
<PAGE> 121
The directors and officers of ONEQ are:
<TABLE>
<CAPTION>
Name Position with ONE, Inc.
---- -----------------------
<S> <C>
David B. O'Maley Chairman and Director
John J. Palmer President and Director
Thomas A. Barefield Senior Vice President
James I. Miller Vice President and Director
Trudy K. Backus Vice President and Director
Ronald L. Benedict Secretary and Director
Barbara A. Turner Operations Vice President, Treasurer & Compliance Officer
</TABLE>
The principal business address of each of the foregoing is One Financial Way,
Cincinnati, Ohio 45242.
During the last fiscal year, ONEQ received the following commissions and other
compensation, directly or indirectly, from the Registrant:
<TABLE>
<CAPTION>
Net Underwriting Compensation
Discounts and on Redemption Brokerage
Commissions or Annuitization Commissions Compensation
----------- ---------------- ----------- ------------
<S> <C> <C> <C>
$6,658,441 None None None
</TABLE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The books and records of the Registrant which are required under Section 31(a)
of the 1940 Act and Rules thereunder are maintained in the possession of the
following persons:
(1) Journals and other records of original entry:
The Ohio National Life Insurance Company ("Depositor")
One Financial Way
Montgomery, Ohio 45242
-7-
<PAGE> 122
Firstar Bank, N.A. ("Custodian")
425 Walnut Street
Cincinnati, Ohio 45202
(2) General and auxiliary ledgers:
Depositor and Custodian
(3) Securities records for portfolio securities:
Custodian
(4) Corporate charter, by-laws and minute books:
Registrant has no such documents.
(5) Records of brokerage orders:
Not applicable.
(6) Records of other portfolio transactions:
Custodian
(7) Records of options:
Not applicable
(8) Records of trial balances:
Custodian
(9) Quarterly records of allocation of brokerage orders and commissions:
Not applicable
(10) Records identifying persons or group authorizing portfolio transactions:
Depositor
(11) Files of advisory materials:
Not applicable
(12) Other records
Custodian and Depositor
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS AND REPRESENTATIONS
(a) Pursuant to Section 26(e)(2)(A) of the Investment Company Act of 1940, as
amended, The Ohio National Life
-8-
<PAGE> 123
Insurance Company represents that the fees and charges deducted under the
contract, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred and the risks assumed by
The Ohio National Life Insurance Company.
(b) The Registrant hereby undertakes to file a post-effective amendment to
this registration statement as frequently as is necessary to ensure audited
financial statements in this registration statement are never more than 16
months old for so long as payments under the variable annuity contracts may
be accepted.
(c) The Registrant hereby undertakes to include either (1) as part of any
application to purchase any contract offered by the prospectus, a space
that an applicant can check to request a Statement of Additional
Information, or (2) a post card or similar written communication affixed to
or included in the prospectus that the applicant can remove to send for a
Statement of Additional Information.
(d) The Registrant hereby undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available
under Form N-4 promptly upon written or oral request.
-9-
<PAGE> 124
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the registrant, Ohio National Variable Account A has caused this
post-effective amendment to the registration statement to be signed on its
behalf in the City of Montgomery and the State of Ohio on this 14th day of
December, 2000.
OHIO NATIONAL VARIABLE ACCOUNT A
(Registrant)
By THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Depositor)
By /s/Thomas A. Barefield
-----------------------------------------
Thomas A. Barefield, Senior Vice President,
Institutional Sales
Attest:
/s/Ronald L. Benedict
--------------------------------
Ronald L. Benedict
Corporate Vice President, Counsel
and Secretary
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the depositor, The Ohio National Life Insurance Company, has caused this
post-effective amendment to the registration statement to be signed on its
behalf in the City of Montgomery and the State of Ohio on the 14th day of
December, 2000.
THE OHIO NATIONAL LIFE INSURANCE COMPANY
(Depositor)
By /s/Thomas A. Barefield
------------------------------------------
Thomas A. Barefield, Senior Vice President,
Institutional Sales
Attest:
/s/Ronald L. Benedict
---------------------------------
Ronald L. Benedict
Corporate Vice President, Counsel
and Secretary
<PAGE> 125
As required by the Securities Act of 1933, this post-effective amendment to the
registration statement has been signed below by the following persons in the
capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signature Title Date
--------- ----- ----
<S> <C> <C>
s/David B. O'Maley Chairman, President, December 14, 2000
-------------------------------- Chief Executive Officer
David B. O'Maley and Director
*s/Dale P. Brown Director December 14, 2000
--------------------------------
Dale P. Brown
*s/Jack E. Brown Director December 14, 2000
--------------------------------
Jack E. Brown
*s/William R. Burleigh Director December 14, 2000
--------------------------------
William R. Burleigh
*s/Victoria B. Buyniski Gluckman Director December 14, 2000
--------------------------------
Victoria B. Buyniski Gluckman
Director
--------------------------------
George E. Castrucci
*s/Raymond R. Clark Director December 14, 2000
--------------------------------
Raymond R. Clark
s/Ronald J. Dolan Director December 14, 2000
--------------------------------
Ronald J. Dolan
Director
--------------------------------
John W. Hayden
*s/Charles S. Mechem, Jr. Director December 14, 2000
--------------------------------
Charles S. Mechem, Jr.
*s/James F. Orr Director December 14, 2000
--------------------------------
James F. Orr
s/John J. Palmer Director December 14, 2000
--------------------------------
John J. Palmer
</TABLE>
<PAGE> 126
<TABLE>
<S> <C> <C>
s/D. Gates Smith Director December 14, 2000
-------------------------
D. Gates Smith
s/Stuart G. Summers Director December 14, 2000
-------------------------
Stuart G. Summers
*s/Oliver W. Waddell Director December 14, 2000
-------------------------
Oliver W. Waddell
</TABLE>
*By s/ John J. Palmer
-------------------------
John J. Palmer, Attorney in Fact pursuant to Powers of Attorney, copies
of which have previously been filed as exhibits to the Registrant's
registration statement.
<PAGE> 127
INDEX OF CONSENTS AND EXHIBITS
<TABLE>
<CAPTION>
Page Number in
Exhibit Sequential
Number Description Numbering System
------ ----------- ----------------
<S> <C> <C>
</TABLE>
Consent of KPMG LLP
<PAGE> 128
INDEPENDENT AUDITORS' CONSENT
The Board of Directors of The Ohio National Life Insurance Company and
Contract Owners of Ohio National Variable Account A:
We consent to the use of our reports for the Ohio National Variable Account A
dated February 18, 2000 and for The Ohio National Life Insurance Company and
Subsidiaries dated January 28, 2000 and to the use of our name under the
heading "Independent Certified Public Accountants" in the Statement of
Additional Information in Post-Effective Amendment No. 8 to File No. 333-43511.
KPMG LLP
Columbus, Ohio
December 14, 2000
