<PAGE> 1
NATIONWIDE(R) VLI
SEPARATE ACCOUNT
ANNUAL REPORT
DECEMBER 31, 1996
INVESTMENT/LIFE(R)
VAN KAMPEN AMERICAN CAPITAL/
NATIONWIDE LIFE INSURANCE COMPANY
<PAGE> 2
NATIONWIDE LOGO
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
PHOTO
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to bring you the
1996 annual report of the Nationwide VLI Separate Account.
The U.S. economy is enjoying the rewards of a stable political system and a
globally competitive business sector. These good times will last, although not
all years will show the stellar performance of the last two years. 1997 may be
the year in which normalcy will return.
The economic expansion has lasted six years already, and all resources are more
or less fully employed. The job market in particular is showing some strains,
and wages are rising a bit faster than before. Also, the competitive pressures
from abroad are increasing due to a sharp rise in the exchange value of our
currency. Business will be hard pressed under those conditions to continue
showing above-average profit increases. For the economy as a whole, inflation
has hit the low point in this business cycle and will slowly but surely be a
more important variable for monetary policy.
In the last few years, and especially in 1996, our economy expanded faster than
the natural rate of growth. This cannot continue without creating bottlenecks
that in turn induce price increases. Either the economy will slow under its own
weight or the Federal Reserve will have to step in. Some indicators point to a
softening of business activity. But whether this is enough will be a close
call.
Again, the long-term trend is very positive for the U.S., its business
activity, and its financial markets. However, 1997 might turn out to have some
more surprises than anticipated right now.
JOSEPH J. GASPER
---------------------------
Joseph J. Gasper, President
3
<PAGE> 3
NATIONWIDE VLI SEPARATE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments in Van Kampen American Capital Life
Investment Trust, at market value:
Asset Allocation Fund
2,155,022 shares (cost $24,422,269) $ 24,459,498
Domestic Income Fund
333,174 shares (cost $2,688,144) 2,668,722
Emerging Growth Fund
119,694 shares (cost $1,613,469) 1,635,017
Enterprise Fund
1,816,594 shares (cost $25,629,353) 29,537,819
Global Equity Fund
86,385 shares (cost $962,884) 1,007,252
Government Fund
5,762,429 shares (cost $50,750,069) 49,902,635
Money Market Fund
9,135,631 shares (cost $9,135,631) 9,135,631
Real Estate Securities Fund
13,353 shares (cost $168,204) 197,360
-------------
Total assets 118,543,934
ACCOUNTS PAYABLE 43,083
-------------
CONTRACT OWNER'S EQUITY $ 118,500,851
=============
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
Contract owners' equity represented by: UNITS UNIT VALUE
----- ----------
<S> <C> <C> <C>
Single Premium contracts issued prior to April 16, 1990
(policy years 1 through 10):
Asset Allocation Fund (formerly Multiple Strategy) 744,990 $ 24.272482 $ 18,082,756
Domestic Income Fund 86,684 18.211426 1,578,639
Emerging Growth Fund 69,012 13.467256 929,402
Enterprise Fund (formerly Common Stock) 700,997 27.810473 19,495,058
Global Equity Fund 33,541 11.864328 397,941
Government Fund 1,655,527 19.185493 31,762,102
Money Market Fund 400,870 16.307639 6,537,243
Real Estate Securities Fund 10,042 15.011508 150,746
Single Premium contracts issued prior to April 16, 1990
(policy year 11 and thereafter):
Asset Allocation Fund (formerly Multiple Strategy) 251,360 24.345677 6,119,529
Domestic Income Fund 51,343 18.266338 937,849
Emerging Growth Fund 32,856 13.507925 443,816
Enterprise Fund (formerly Common Stock) 351,513 27.894373 9,805,235
Global Equity Fund 50,767 11.900110 604,133
Government Fund 939,781 19.243796 18,084,954
Money Market Fund 158,361 16.356824 2,590,283
Real Estate Securities Fund 3,093 15.056707 46,570
Single Premium contracts issued on or after April 16, 1990:
Asset Allocation Fund (formerly Multiple Strategy) 5,452 20.858239 113,719
Domestic Income Fund 8,374 18.004549 150,770
Emerging Growth Fund 19,492 13.396950 261,133
Enterprise Fund (formerly Common Stock) 2,431 26.183349 63,652
Global Equity Fund 342 11.802380 4,036
Government Fund 2,775 14.546815 40,367
Money Market Fund 122 12.061110 1,471
Multiple Premium Contracts and Flexible Premium Contracts:
Asset Allocation Fund (formerly Multiple Strategy) 7,384 18.790954 138,752
Enterprise Fund (formerly Common Stock) 7,157 22.452797 160,695
========= ========= -------------
$ 118,500,851
=============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 5
NATIONWIDE VLI SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
<TABLE>
<CAPTION>
1996 1995 1994
---- ---- ----
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested capital gains and dividends $ 11,026,808 11,096,149 9,791,294
Mortality and expense charges (note 3) (1,030,085) (1,124,778) (1,135,456)
------------ ----------- -----------
Net investment activity 9,996,723 9,971,371 8,655,838
------------ ----------- -----------
Proceeds from mutual fund shares sold 24,568,211 23,835,749 22,040,399
Cost of mutual fund shares sold (22,544,406) (21,777,460) (20,667,556)
------------ ----------- -----------
Realized gain (loss) on investments 2,023,805 2,058,289 1,372,843
Change in unrealized gain (loss) on investments (1,839,618) 11,069,519 (15,672,902)
------------ ----------- -----------
Net gain (loss) on investments 184,187 13,127,808 (14,300,059)
------------ ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations 10,180,910 23,099,179 (5,644,221)
------------ ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from contract owners 54,433 39,639 25,229
Surrenders (note 2d) (13,731,809) (11,745,567) (9,547,706)
Death Benefits (note 4) (1,201,226) (1,552,445) (1,196,526)
Policy loans (net of repayments) (note 5) 3,043,009 833,405 1,817,775
Deductions for surrender charges (note 2d) (16,455) (193,286) (377,936)
Redemptions to pay cost of insurance charges
and administrative charges (notes 2b and 2c) (1,530,522) (1,770,626) (2,043,874)
------------ ----------- -----------
Net equity transactions (13,382,570) (14,388,880) (11,323,038)
------------ ----------- -----------
Net change in contract owners' equity (3,201,660) 8,710,299 (16,967,259)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 121,702,511 112,992,212 129,959,471
------------ ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD $ 118,500,851 121,702,511 112,992,212
============ =========== ===========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996, 1995 AND 1994
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLI Separate Account (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on August 8, 1984. The Account has
been registered as a unit investment trust under the Investment
Company Act of 1940.
The Company offers modified single premium, multiple payment and
flexible premium variable life insurance contracts through the
Account. The primary distribution for the contracts is through the
brokerage community; however, other distributors may be utilized.
(b) The Contracts
Prior to December 31, 1990, only contracts without a front-end sales
charge, but with a contingent deferred sales charge and certain other
fees, were offered for purchase. Beginning December 31, 1990,
contracts with a front-end sales charge, a contingent deferred sales
charge and certain other fees, are offered for purchase. See note 2
for a discussion of policy charges and note 3 for asset charges.
Contract owners may invest in the following funds:
Funds of the Van Kampen American Capital Life Investment Trust (Van
Kampen American Capital LIT);
Van Kampen American Capital LIT-Asset Allocation Fund
(formerly Multiple Strategy)
Van Kampen American Capital LIT-Domestic Income Fund
(formerly Corporate Bond)
Van Kampen American Capital LIT-Emerging Growth Fund
Van Kampen American Capital LIT-Enterprise Fund
(formerly Common Stock Fund)
Van Kampen American Capital LIT-Global Equity Fund
Van Kampen American Capital LIT-Government Fund
Van Kampen American Capital LIT-Money Market Fund
Van Kampen American Capital LIT-Real Estate Securities Fund
At December 31, 1996, contract owners have invested in all of the
above funds.
The contract owners' equity is affected by the investment results of
each fund, equity transactions by contract owners and certain policy
charges (see notes 2 and 3). The accompanying financial statements
include only contract owners' purchase payments pertaining to the
variable portions of their contracts and exclude any purchase payments
for fixed dollar benefits, the latter being included in the accounts
of the Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the
closing net asset value per share at December 31, 1996. Fund purchases
and sales are accounted for on the trade date (date the order to buy
or sell is executed). The cost of investments sold is determined on a
specific identification basis, and dividends (which include capital
gain distributions) are accrued as of the ex-dividend date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company, which is taxed as a life insurance company
under the provisions of the Internal Revenue Code.
The Company does not provide for income taxes within the Account.
Taxes are the responsibility of the contract owner upon termination or
withdrawal.
7
<PAGE> 7
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities,
if any, at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
(f) Reclassifications
Certain 1995 and 1994 amounts have been reclassified to conform with
the current year presentation.
(2) POLICY CHARGES
(a) Deductions from Premiums
On multiple payment contracts and flexible premium contracts, the
Company deducts a charge for state premium taxes equal to 2.5% of all
premiums received to cover the payment of these premium taxes. The
Company also deducts a sales load from each premium payment received
not to exceed 3.5% of each premium payment. The Company may at its
sole discretion reduce this sales loading.
(b) Cost of Insurance
A cost of insurance charge is assessed monthly against each contract
by liquidating units. The amount of the charge is based upon age, sex,
rate class and net amount at risk (death benefit less total contract
value).
(c) Administrative Charges
For single premium contracts, the Company deducts an annual
administrative charge which is determined as follows:
Contracts issued prior to April 16, 1990:
Purchase payments totalling less than $25,000 - $10/month
Purchase payments totalling $25,000 or more - none
Contracts issued on or after April 16, 1990:
Purchase payments totalling less than $25,000 - $90/year ($65/year
in New York) Purchase payments totalling $25,000 or more - $50/year
For multiple payment contracts the Company currently deducts a monthly
administrative charge of $5 (may deduct up to $7.50, maximum) to
recover policy maintenance, accounting, record keeping and other
administrative expenses.
For flexible premium contracts, the Company currently deducts a
monthly administrative charge of $25 during the first policy year and
$5 per month thereafter (may deduct up to $7.50, maximum) to recover
policy maintenance, accounting, record keeping and other
administrative expenses. Additionally, the Company deducts an increase
charge of $2.04 per year per $1,000 applied to any increase in the
specified amount during the first 12 months after the increase becomes
effective.
The above charges are assessed against each contract by liquidating
units.
(d) Surrender Charges
Policy surrenders result in a redemption of the contract value from
the Account and payment of the surrender proceeds to the contract
owner or designee. The surrender proceeds consist of the contract
value, less any outstanding policy loans, and less a surrender charge,
if applicable. The charge is determined according to contract type.
For single premium contracts, the charge is determined based upon a
specified percentage of the original purchase payment. For single
premium contracts issued prior to April 16, 1990, the charge is 8% in
the first year and declines to 0% after the ninth year. For single
premium contracts issued on or after April 16, 1990, the charge is
8.5% in the first year and declines to 0% after the ninth year.
For multiple payment contracts and flexible premium contracts, the
amount charged is based upon a specified percentage of the initial
surrender charge, which varies by issue age, sex and rate class. The
charge is 100% of the initial surrender charge in the first year, with
certain exceptions, declining to 0% after the ninth year.
The Company may waive the surrender charge for certain contracts in
which the sales expenses normally associated with the distribution of
a contract are not incurred.
8
<PAGE> 8
(3) ASSET CHARGES
For single premium contracts, the Company deducts a charge from the
contract to cover mortality and expense risk charges related to
operations, and to recover policy maintenance and premium tax charges. For
contracts issued prior to April 16, 1990, the charge is equal to an annual
rate of .95% during the first ten policy years, and .50% thereafter. A
reduction of charges on these contracts is possible in policy years six
through ten for those contracts achieving certain investment performance
criteria; for contracts issued on or after April 16, 1990, the charge is
equal to an annual rate of 1.30% during the first ten policy years, and
1.00% thereafter.
For multiple payment contracts and flexible premium contracts, the Company
deducts a charge equal to an annual rate of .80%, with certain exceptions,
to cover mortality and expense risk charges related to operations.
The above charges are assessed through the daily unit value calculation.
(4) DEATH BENEFITS
Death benefits result in a redemption of the contract value from the
Account and payment of the death benefit proceeds, less any outstanding
policy loans and policy charges, to the legal beneficiary. The excess of
the death benefit proceeds over the contract value on the date of death is
paid by the Company's general account.
(5) POLICY LOANS (NET OF REPAYMENTS)
Contract provisions allow contract owners to borrow up to 90% (50% during
first year of single premium contracts) of a policy's cash surrender
value. For single premium contracts issued prior to April 16, 1990, 6.5%
interest is due and payable annually in advance. For single premium
contracts issued on or after April 16, 1990, multiple payment contracts
and flexible premium contracts, 6% interest is due and payable in advance
on the policy anniversary when there is a loan outstanding on the policy.
At the time the loan is granted, the amount of the loan is transferred
from the Account to the Company's general account as collateral for the
outstanding loan. Collateral amounts in the general account are credited
with the stated rate of interest in effect at the time the loan is made,
subject to a guaranteed minimum rate. Loan repayments result in a transfer
of collateral, including interest, back to the Account.
(6) SCHEDULE I
Schedule I presents the components of the change in the unit values, which
are the basis for determining contract owners' equity. This schedule is
presented in the following format:
o Beginning unit value - Jan. 1
o Reinvested dividends and capital gains
(This amount reflects the increase in the unit value due to
dividend and capital gain distributions from the underlying
mutual funds.)
o Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the
underlying mutual funds.)
o Asset charges
(This amount reflects the decrease in the unit value due to the
charges discussed in note 3.)
o Ending unit value - Dec. 31
o Percentage increase (decrease) in unit value.
9
<PAGE> 9
SCHEDULE I
NATIONWIDE VLI SEPARATE ACCOUNT
SINGLE PREMIUM CONTRACTS ISSUED PRIOR TO APRIL 16, 1990
(POLICY YEARS 1 THROUGH 10)
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(UNDERLYING MUTUAL FUNDS OF VAN KAMPEN AMERICAN CAPITAL LIT)
<TABLE>
<CAPTION>
ASSET DOMESTIC EMERGING
ALLOCATION INCOME GROWTH ENTERPRISE
FUND FUND FUND FUND
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
1996
Beginning unit value - Jan. 1 $21.519909 17.235188 11.655608 22.498859
- ----------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 3.456144 1.551321 .000000 3.050863
- ----------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.488445) (.410339) 1.935098 2.501932
- ----------------------------------------------------------------------------------------------------
Asset charges (.215126) (.164744) (.123450) (.241181)
- ----------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $24.272482 18.211426 13.467256 27.810473
- ----------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 13% 6% 16% 24%
====================================================================================================
1995
Beginning unit value - Jan. 1 $16.538427 14.336077 10.000000 16.580891
- ----------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 2.418600 1.359225 .000000 3.004553
- ----------------------------------------------------------------------------------------------------
Unrealized gain (loss) 2.744315 1.690878 1.707069 3.100329
- ----------------------------------------------------------------------------------------------------
Asset charges (.181433) (.150992) (.051461) (.186914)
- ----------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $21.519909 17.235188 11.655608 22.498859
- ----------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 30% 20% 17%(b) 36%
====================================================================================================
1994
Beginning unit value - Jan. 1 $17.329774 15.127964 ** 17.325425
- ----------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.995739 1.490981 1.976086
- ----------------------------------------------------------------------------------------------------
Unrealized gain (loss) (2.627910) (2.144766) (2.559308)
- ----------------------------------------------------------------------------------------------------
Asset charges (.159176) (.138102) (.161312)
- ----------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $16.538427 14.336077 16.580891
- ----------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) (5)% (5)% (4)%
====================================================================================================
</TABLE>
<TABLE>
<CAPTION>
GLOBAL MONEY REAL ESTATE
EQUITY GOVERNMENT MARKET SECURITIES
FUND FUND FUND FUND
------- ---------- ------- ---------
<S> <C> <C> <C> <C>
1996
Beginning unit value - Jan. 1 10.262083 18.968390 15.695093 10.784280
- --------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .358540 1.225305 .764922 .288822
- --------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.350014 (.828963) .000000 4.051625
- --------------------------------------------------------------------------------------------------------
Asset charges (.106309) (.179239) (.152376) (.113219)
- --------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 11.864328 19.185493 16.307639 15.011508
- --------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 16% 1% 4% 39%
========================================================================================================
1995
Beginning unit value - Jan. 1 10.000000 16.344365 15.022875 10.000000
- --------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 1.217414 .817690 .092106
- --------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .309271 1.576618 .000000 .740132
- --------------------------------------------------------------------------------------------------------
Asset charges (.047188) (.170007) (.145472) (.047958)
- --------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 10.262083 18.968390 15.695093 10.784280
- --------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 3%(b) 16% 4% 8%(b)
========================================================================================================
1994
Beginning unit value - Jan. 1 ** 17.301801 14.623465 **
- --------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.062855 .539516
- --------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (1.862740) .000000
- --------------------------------------------------------------------------------------------------------
Asset charges (.157551) (.140106)
- --------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 16.344365 15.022875
- --------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) (6)% 3%
========================================================================================================
</TABLE>
*An annualized rate of return cannot be determined as:
(a) Asset charges do not include the policy charges discussed in
note 2; and
(b) This investment option was not utilized for the entire year
indicated.
**This investment option was not being utilized or was not available.
10
<PAGE> 10
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT
SINGLE PREMIUM CONTRACTS ISSUED PRIOR TO APRIL 16, 1990
(POLICY YEARS 11 AND THEREAFTER)
SCHEDULES OF CHANGES IN UNIT VALUE
YEAR ENDED DECEMBER 31, 1996
(UNDERLYING MUTUAL FUNDS OF VAN KAMPEN AMERICAN CAPITAL LIT)
<TABLE>
<CAPTION>
ASSET DOMESTIC EMERGING
ALLOCATION INCOME GROWTH ENTERPRISE
FUND FUND FUND FUND
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
1996
Beginning unit value - Jan. 1 $21.519909 17.235188 11.655608 22.498859
- ----------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 3.464578 1.555582 .000000 3.057101
- ----------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.492537) (.411984) 1.935344 2.501147
- ----------------------------------------------------------------------------------------------------
Asset charges (.146273) (.112448) (.083027) (.162734)
- ----------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $24.345677 18.266338 13.507925 27.894373
- ----------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 13% 6% 16% 24%
====================================================================================================
</TABLE>
<TABLE>
<CAPTION>
GLOBAL MONEY REAL ESTATE
EQUITY GOVERNMENT MARKET SECURITIES
FUND FUND FUND FUND
------- ---------- ------- ---------
<S> <C> <C> <C> <C>
1996
Beginning unit value - Jan. 1 10.262083 18.968390 15.695093 10.784280
- --------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .359541 1.226436 .765692 .289605
- --------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.350463 (.828621) .000000 4.058907
- --------------------------------------------------------------------------------------------------
Asset charges (.071977) (.122409) (.103961) (.076085)
- --------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 11.900110 19.243796 16.356824 15.056707
- --------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 16% 1% 4% 40%
==================================================================================================
</TABLE>
*An annualized rate of return cannot be determined as asset charges do not
include the policy charges discussed in note 2.
11
<PAGE> 11
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT
SINGLE PREMIUM CONTRACTS ISSUED ON OR AFTER APRIL 16, 1990
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(UNDERLYING MUTUAL FUNDS OF VAN KAMPEN AMERICAN CAPITAL LIT)
<TABLE>
<CAPTION>
ASSET DOMESTIC EMERGING GLOBAL MONEY
ALLOCATION INCOME GROWTH ENTERPRISE EQUITY GOVERNMENT MARKET
FUND FUND FUND FUND FUND FUND FUND
--------- --------- --------- --------- -------- ---------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
1996***
Beginning unit value - Jan. 1 $18.558022 17.099466 11.635640 21.257132 10.244489 14.433482 11.648994
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 2.971435 1.534027 .000000 2.874772 .356729 .930855 .566598
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.417798) (.405672) 1.929643 2.362697 1.346140 (.630892) .000000
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges (.253420) (.223272) (.168333) (.311252) (.144978) (.186630) (.154482)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $20.858239 18.004549 13.396950 26.183349 11.802380 14.546815 12.061110
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 12% 5% 15% 23% 15% 1% 4%
===================================================================================================================================
1995***
Beginning unit value - Jan. 1 $14.311997 14.272889 ** 15.720497 ** 12.480782 11.189053
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 2.086061 1.348751 2.839638 .928076 .607952
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 2.374431 1.683177 2.939071 1.202259 .000000
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges (.214467) (.205351) (.242074) (.177635) (.148011)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $18.558022 17.099466 21.257132 14.433482 11.648994
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 30% 20% 35% 16% 4%
===================================================================================================================================
1994***
Beginning unit value - Jan. 1 $15.049256 15.113958 ** 16.483852 ** 13.258615 10.929642
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.727365 1.484668 1.874048 .813111 .402452
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (2.275800) (2.137258) (2.427739) (1.425714) .000000
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges (.188824) (.188479) (.209664) (.165230) (.143041)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $14.311997 14.272889 15.720497 12.480782 11.189053
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (5)% (6)% (5)% (6)% 2%
===================================================================================================================================
</TABLE>
* An annualized rate of return cannot be determined as asset charges do not
include the policy charges discussed in note 2.
** This investment option was not being utilized or was not available.
*** No other investment options were being utilized.
12
<PAGE> 12
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT
MULTIPLE PAYMENT CONTRACTS AND FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(UNDERLYING MUTUAL FUNDS OF VAN KAMPEN AMERICAN CAPITAL LIT)
<TABLE>
<CAPTION>
ASSET
ALLOCATION ENTERPRISE
FUND FUND
--------- ---------
<S> <C> <C>
1996**
Beginning unit value - Jan. 1 $16.634918 18.137100
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends 2.675077 2.462233
- ----------------------------------------------------------------------------
Unrealized gain (loss) (.378897) 2.017312
- ----------------------------------------------------------------------------
Asset charges (.140144) (.163848)
- ----------------------------------------------------------------------------
Ending unit value - Dec. 31 $18.790954 22.452797
- ----------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 13% 24%
============================================================================
1995**
Beginning unit value - Jan. 1 $12.765144 13.346462
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.869449 2.421740
- ----------------------------------------------------------------------------
Unrealized gain (loss) 2.118344 2.495698
- ----------------------------------------------------------------------------
Asset charges (.118019) (.126800)
- ----------------------------------------------------------------------------
Ending unit value - Dec. 31 $16.634918 18.137100
- ----------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 30% 36%
============================================================================
1994**
Beginning unit value - Jan. 1 $13.355954 13.924920
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.540293 1.590429
- ----------------------------------------------------------------------------
Unrealized gain (loss) (2.027726) (2.059623)
- ----------------------------------------------------------------------------
Asset charges (.103377) (.109264)
- ----------------------------------------------------------------------------
Ending unit value - Dec. 31 $12.765144 13.346462
- ----------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (4)% (4)%
============================================================================
</TABLE>
* An annualized rate of return cannot be determined as
asset charges do not include the policy charges
discussed in note 2.
** No other investment options were being utilized.
See note 6.
13
<PAGE> 13
INDEPENDENT AUDITORS' REPORT
The Board of Directors of Nationwide Life Insurance Company and
Contract Owners of Nationwide VLI Separate Account:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide VLI Separate Account as of December 31,
1996, and the related statements of operations and changes in contract owners'
equity and schedules of changes in unit value for each of the years in the
three year period then ended. These financial statements and schedules of
changes in unit value are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
schedules of changes in unit value based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and schedules of
changes in unit value are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1996, 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 and schedules of changes in unit
value referred to above present fairly, in all material respects, the financial
position of Nationwide VLI Separate Account as of December 31, 1996, and the
results of its operations and its changes in contract owners' equity and the
schedules of changes in unit value for each of the years in the three year
period then ended in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
February 7, 1997
14
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15
<PAGE> 15
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<S> <C>
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NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA o COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
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Nationwide(R) is a registered federal service mark of Nationwide Mutual Insurance Company
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