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Nationwide(R) VLI
Separate Account-2
June 30, 1997
The BEST of AMERICA(R)
LifePlanning Series(R)
'97
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
[Nationwide Logo]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
VLOB-12-T (6/97)
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[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We are pleased to present the 1997 semi-annual report of the Nationwide VLI
Separate Account-2.
Our Enterprise Vision statement states: "We exist to serve our customers."
Everything we do is focused on you, our customer, and on your needs.
We recognize that your expectations have changed and your standards for value
and service are higher than ever before. You are being asked to take more
responsibility for your own financial future, as employers and government
programs provide fewer guarantees.
We know that you expect service and products customized to fit your needs -
including financial advice - and you expect to receive service at any time,
anywhere and any way you choose.
We are responding to your changing needs and expectations with innovative
product offerings, continuing investment in the training and professional
development of our people, and our investment in technology to enable us to
serve you faster, better and more cost effectively.
Equity investments produced solid gains for the first half of 1997 with the Dow
Jones Industrial Average breaking the 8,000 mark on July 16. The U.S. economy,
in its seventh year of expansion, is growing vigorously and corporate profits
are better than anticipated.
Interest rates and inflation are still at very low levels. However, the risk of
a temporary spike remains as the Federal Reserve might be forced to raise
interest rates in order to keep our economy on an inflation-free growth path.
Even such policy actions are not expected to end the prosperous times which we
now enjoy. In the long run, equity valuations will reflect these excellent
economic conditions.
Thank you for giving Nationwide Life Insurance Company the opportunity to meet
your investment needs.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
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<TABLE>
<CAPTION>
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1997
(UNAUDITED)
ASSETS:
Investments at market value:
<S> <C>
American Century VP - American Century VP Balanced (ACVPBal)
416,574 shares (cost $3,000,448) ............................................. $ 3,228,447
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
1,147,307 shares (cost $11,078,082) .......................................... 11,082,989
American Century VP - American Century VP International (ACVPInt)
783,816 shares (cost $5,179,253) ............................................. 5,369,141
American Century VP - American Century VP Value (ACVPValue)
180,136 shares (cost $1,086,995) ............................................. 1,122,250
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
209,080 shares (cost $4,484,056) ............................................. 4,886,191
Dreyfus Stock Index Fund (DryStkIx)
1,232,087 shares (cost $25,806,938) .......................................... 29,853,460
Dreyfus VIF - Growth and Income Portfolio (DryGroInc)
21,454 shares (cost $445,347) ................................................ 449,464
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
2,639,154 shares (cost $49,439,821) .......................................... 58,219,745
Fidelity VIP - Growth Portfolio (FidVIPGr)
1,874,903 shares (cost $58,399,429) .......................................... 64,121,680
Fidelity VIP - High Income Portfolio (FidVIPHI)
1,658,252 shares (cost $20,030,510) .......................................... 20,612,076
Fidelity VIP - Overseas Portfolio (FidVIPOv)
1,120,306 shares (cost $19,872,704) .......................................... 22,450,923
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
1,539,202 shares (cost $22,664,351) .......................................... 25,550,751
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
1,243,523 shares (cost $19,547,074) .......................................... 22,296,366
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
719,771 shares (cost $12,643,380) ............................................ 14,078,725
Nationwide SAT - Government Bond Fund (NSATGvtBd)
689,806 shares (cost $7,611,202) ............................................. 7,587,870
Nationwide SAT - Money Market Fund (NSATMyMkt)
37,969,033 shares (cost $37,969,033) ......................................... 37,969,033
Nationwide SAT - Small Company Fund (NSATSmCo)
562,643 shares (cost $7,869,879) ............................................. 8,529,673
</TABLE>
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<TABLE>
<CAPTION>
<S> <C>
Nationwide SAT - Total Return Fund (NSATTotRe)
3,841,665 shares (cost $48,738,162) .......................................... 60,352,561
Neuberger & Berman - Growth Portfolio (NBAMTGro)
509,341 shares (cost $13,049,358) ............................................ 14,129,124
Neuberger & Berman - Limited Maturity Bond Portfolio (NBAMTLMat)
276,475 shares (cost $3,848,999) ............................................. 3,765,588
Neuberger & Berman - Partners Portfolio (NBAMTPart)
1,012,991 shares (cost $16,878,070) .......................................... 18,406,044
Oppenheimer - Bond Fund (OppBdFd)
602,089 shares (cost $6,978,576) ............................................. 6,954,125
Oppenheimer - Global Securities Fund (OppGlSec)
682,024 shares (cost $11,206,487) ............................................ 13,824,626
Oppenheimer - Multiple Strategies Fund (OppMult)
671,254 shares (cost $9,807,090) ............................................. 10,827,334
Strong Special Fund II, Inc. (StSpec2)
1,074,398 shares (cost $17,796,805) .......................................... 20,628,448
Strong VIF - Strong Discovery Fund II (StDisc2)
654,138 shares (cost $7,076,825) ............................................. 7,365,589
Strong VIF - Strong International Stock Fund II (StIntStk2)
191,960 shares (cost $2,163,520) ............................................. 2,247,853
Van Eck - Worldwide Bond Fund (VEWrldBd)
221,889 shares (cost $2,414,165) ............................................. 2,360,897
Van Eck - Worldwide Emerging Markets Fund (VEWrldEMkt)
218,988 shares (cost $3,204,827) ............................................. 3,348,324
Van Eck - Worldwide Hard Assets Fund (VEWrldHAs)
413,871 shares (cost $6,592,594) ............................................. 6,597,097
Van Kampen American Capital LIT - Real Estate Securities Fund (VKACRESec)
321,451 shares (cost $4,782,420) ............................................. 5,037,131
Warburg Pincus - International Equity Portfolio (WPIntEq)
818,271 shares (cost $9,611,733) ............................................. 10,801,174
Warburg Pincus - Post Venture Capital Portfolio (WPPVenCap)
28,729 shares (cost $281,127) ................................................ 289,871
Warburg Pincus - Small Company Growth Portfolio (WPSmCoGr)
700,527 shares (cost $9,738,355) ............................................. 10,241,705
-------------
Total investments ......................................................... 534,586,275
Accounts receivable ................................................................ 130,643
-------------
Total assets .............................................................. 534,716,918
ACCOUNTS PAYABLE ...................................................................... 691,631
-------------
CONTRACT OWNERS' EQUITY (NOTE 6) ...................................................... $ 534,025,287
=============
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1997, 1996 AND 1995
(UNAUDITED)
1997 1996 1995
------------- ------------ -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends $ 6,598,185 4,149,513 2,387,096
Mortality and expense charges (note 3) (2,031,589) (1,315,797) (744,414)
------------- ------------ -----------
Net investment activity 4,566,596 2,833,716 1,642,682
------------- ------------ -----------
Proceeds from mutual fund shares sold 178,546,434 116,343,494 71,285,062
Cost of mutual funds sold (169,848,226) (111,224,578) (69,606,555)
------------- ------------ -----------
Realized gain (loss) on investments 8,698,208 5,118,916 1,678,507
Change in unrealized gain (loss) on investments 25,785,917 (1,126,037) 11,371,311
------------- ------------ -----------
Net gain (loss) on investments 34,484,125 3,992,879 13,049,818
------------- ------------ -----------
Reinvested capital gains 13,736,609 8,292,180 1,253,425
------------- ------------ -----------
Net increase (decrease) in contract owners'
equity resulting from operations 52,787,330 15,118,775 15,945,925
------------- ------------ -----------
EQUITY TRANSACTIONS:
Purchase payments received from contract owners -
net of transfers between funds 98,868,061 73,416,698 48,661,101
Surrenders (4,997,122) (2,048,467) (3,300,539)
Death benefits (389,210) (161,114) (1,556)
Policy loans (net of repayments) (note 5) (4,913,143) (3,157,787) (1,329,311)
Deductions for surrender charges (note 2d) (565,766) (280,868) (149,264)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (15,856,317) (10,343,299) (6,204,277)
Deductions for asset charges (note 3) (77,720) -- --
------------- ------------ -----------
Net increase (decrease) in equity transactions 72,068,783 57,425,163 37,676,154
------------- ------------ -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY 124,856,113 72,543,938 53,622,079
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 409,169,174 237,069,643 120,977,621
------------- ------------ -----------
CONTRACT OWNERS' EQUITY END OF PERIOD $ 534,025,287 309,613,581 174,599,700
============= ============ ===========
</TABLE>
See accompanying notes to financial statements.
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NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997, 1996 AND 1995
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLISeparate Account-2 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on May 7, 1987. The Account has been
registered as a unit investment trust under the Investment Company Act
of 1940.
The Company offers Modified Single Premium and Flexible Premium
Variable Life Insurance Policies 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:
Portfolios of the American Century Variable Portfolios, Inc.
(American Century VP)(formerly TCI Portfolios, Inc.);
American Century VP - American Century VP Balanced (ACVPBal)
(formerly TCI Portfolios - TCI Balanced)
American Century VP - American Century VP Capital Appreciation
(ACVPCapAp) (formerly TCI Portfolios - TCI Growth)
American Century VP - American Century VP International
(ACVPInt) (formerly TCI Portfolios - TCI International)
American Century VP - American Century VP Value (ACVPValue)
(formerly TCI Portfolios - TCI Value)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolio of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Growth and Income Portfolios (DryGroInc)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Portfolios of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Total Return Fund (NSATTotRe)
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Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger &Berman); Neuberger & Berman - Growth Portfolio
(NBAMTGro) Neuberger & Berman - Limited Maturity Bond Portfolio
(NBAMTLMat) Neuberger & Berman - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer);
Oppenheimer - Bond Fund (OppBdFd)
Oppenheimer - Global Securities Fund (OppGlSec)
Oppenheimer - Multiple Strategies Fund (OppMult)
Strong Special Fund II, Inc. (StSpec2)
Funds of the Strong Variable Insurance Funds, Inc. (Strong VIF);
Strong VIF - Strong Discovery Fund II (StDisc2)
Strong VIF - Strong International Stock Fund II (StIntStk2)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck);
Van Eck - Worldwide Bond Fund (VEWrldBd)
Van Eck - Worldwide Emerging Markets Fund (VEWrldEMkt)
Van Eck - Worldwide Hard Assets Fund (VEWrldHAs)
(formerly Van Eck - Gold and Natural Resources Fund)
Fund of the Van Kampen American Capital Life Investment Trust
(Van Kampen American Capital LIT); Van Kampen American
Capital LIT - Real Estate Securities Fund (VKACRESec)
Portfolios of the Warburg Pincus Trust (Warburg Pincus);
Warburg Pincus - International Equity Portfolio (WPIntEq)
Warburg Pincus - Post Venture Capital Portfolio (WPPVenCap)
Warburg Pincus - Small Company Growth Portfolio (WPSmCoGr)
At June 30, 1997, 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 contract expenses (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 June 30, 1997. 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.
(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 1996 and 1995 amounts have been reclassified to conform with
the current year presentation.
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(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.
On last survivor flexible premium contracts, the Company deducts a
charge for state premium taxes equal to 3.5% 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 5% of each
premium payment during the first ten years and 1.5% of each premium
payment thereafter.
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).
For last survivor flexible premium contracts, the monthly cost of
insurance is determined in a manner that reflects the anticipated
mortality of the two insureds and the fact that the death benefit is
not payable until the death of the second insured to die.
(c) Administrative Charges
An administrative charge is assessed against each contract to recover
policy maintenance, accounting, record keeping and other administrative
expenses and is assessed against each contract by liquidating units.
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).
For flexible premium contracts, the Company currently deducts a monthly
administrative charge of $12.50 during the first policy year and $5 per
month thereafter (may deduct up to $7.50, maximum). 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.
For modified single premium contracts, the monthly charge is equal to
an annual rate of .30% multiplied by the policy's cash value. For
policy years 11 and later, this monthly charge is reduced to an annual
rate of 0.15% of the policy's cash value. The monthly charge is subject
to a $10 minimum.
For last survivor flexible premium contracts, the Company deducts a
monthly administrative charge equal to the sum of the policy charge and
the basic coverage charge. For policy years one through ten the policy
charge is $10. Additionally, there is a $0.04 per $1000 basic coverage
charge (not less than $20 or more than $80 per policy). For policy
years eleven and after, the policy charge is $5. Additionally, there is
a $0.02 per $1000 basic coverage charge (not less than $10 or more than
$40 per policy). Additionally, the Company deducts a monthly increase
charge of $2.40 per $1000 applied to any increase in the specified
amount during the first 12 months after the increase becomes effective.
The charge may be raised to $3.60 per $1000 of increase per year at the
Company's discretion.
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(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,
declining to 0% after the ninth year.
For modified single premium contracts, the amount charged is based on
the original purchase payment. The charge is 10% in the first year,
declining to 0% in the ninth year.
For last survivor flexible premium contracts, the charge is 100% of the
initial surrender charge, declining to 0% in the fourteenth year if the
average issue age is 74 or less. The charge is 100% of the initial
surrender charge, declining to 0% in the ninth year if the average
issue age is 75 or greater. For last survivor flexible payment
contracts, the initial surrender charge is comprised of two components,
an underwriting surrender charge and a sales surrender charge.
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.
(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
single premium 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.
For modified single premium contracts, the Company deducts an annual rate
of .90% charged against the cash value of the contracts. This charge is
assessed monthly against each contract by liquidating units.
For last survivor flexible premium contracts, the Company deducts an annual
rate of .80% in policy years one through ten. This charge is assessed
monthly by liquidating units. In policy years eleven and greater, the
Company deducts an annual rate of .80% if the cash value of the contract is
less than $100,000. If the cash value is greater than or equal to $100,000,
the Company reduces the annual asset fee rate to .30%.
(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. For last
survivor flexible premium contracts, the proceeds are payable on the death
of the last surviving insured. The excess of the death benefit proceeds
over the contract value on the date of death is paid by the Company's
general account.
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(5) POLICY LOANS (NET OF REPAYMENTS)
Contract provisions allow contract owners to borrow up to 90% (50% during
first year of single and modified 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,
flexible premium, modified single and last survivor 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.
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(6) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1997, for
each product in the accumulation phase.
<TABLE>
<CAPTION>
Contract owners' equity represented by:
UNITS UNIT VALUE
--------- ---------
<S> <C> <C> <C>
Single Premium contracts issued prior to April 16, 1990:
American Century VP - American Century VP
Capital Appreciation ................................. 8,367 $ 23.112698 $ 193,384
Dreyfus Stock Index Fund ................................ 9,502 19.975456 189,807
Fidelity VIP - Equity-Income Portfolio .................. 8,303 34.585886 287,167
Fidelity VIP - Growth Portfolio ......................... 3,983 38.949437 155,136
Fidelity VIP - High Income Portfolio .................... 3,513 26.255860 92,237
Fidelity VIP - Overseas Portfolio ....................... 5,137 22.776860 117,005
Fidelity VIP-II - Asset Manager Portfolio ............... 1,194 22.718366 27,126
Fidelity VIP-II - Contrafund Portfolio .................. 3,038 14.806046 44,981
Nationwide SAT - Capital Appreciation Fund .............. 2,168 21.981761 47,656
Nationwide SAT - Government Bond Fund ................... 2,722 20.309410 55,282
Nationwide SAT - Money Market Fund ...................... 12,035 15.181143 182,705
Nationwide SAT - Total Return Fund ...................... 2,764 31.754266 87,769
Neuberger & Berman - Growth Portfolio ................... 5,141 28.968183 148,925
Neuberger & Berman - Limited Maturity Bond Portfolio .... 5,620 16.841131 94,647
Oppenheimer - Global Securities Fund .................... 1,601 15.512966 24,836
Strong Special Fund II, Inc. ............................ 444 23.646945 10,499
Van Eck - Worldwide Bond Fund ........................... 22 14.486022 319
Van Eck - Worldwide Hard Assets Fund .................... 5,542 14.898837 82,569
Van Kampen American Capital LIT -
Real Estate Securities Fund .......................... 4,150 15.913476 66,041
Warburg Pincus - International Equity Portfolio ......... 1,797 13.314841 23,927
Single Premium contracts issued on or after April 16, 1990:
American Century VP -
American Century VP Balanced ......................... 36,462 15.479365 564,409
American Century VP -
American Century VP Capital Appreciation ............. 128,723 15.504349 1,995,766
American Century VP -
American Century VP International .................... 149,056 13.868030 2,067,113
American Century VP -
American Century VP Value ............................ 47,484 11.422425 542,382
The Dreyfus Socially Responsible Growth Fund, Inc. ...... 22,581 19.696874 444,775
Dreyfus Stock Index Fund ................................ 233,106 19.715494 4,595,800
Dreyfus VIF - Growth and Income Portfolio ............... 4,931 10.838282 53,444
Fidelity VIP - Equity-Income Portfolio .................. 528,521 28.240953 14,925,937
Fidelity VIP - Growth Portfolio ......................... 356,719 26.888859 9,591,767
Fidelity VIP - High Income Portfolio .................... 161,385 26.965036 4,351,752
Fidelity VIP - Overseas Portfolio ....................... 443,443 16.376391 7,261,996
Fidelity VIP-II - Asset Manager Portfolio ............... 304,691 22.149202 6,748,663
Fidelity VIP-II - Contrafund Portfolio .................. 292,512 14.703250 4,300,877
</TABLE>
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<TABLE>
<S> <C> <C> <C>
Nationwide SAT - Capital Appreciation Fund .............. 130,327 21.584816 2,813,084
Nationwide SAT - Government Bond Fund ................... 235,997 16.807879 3,966,609
Nationwide SAT - Money Market Fund ...................... 859,107 12.713449 10,922,213
Nationwide SAT - Small Company Fund ..................... 42,873 15.001059 643,140
Nationwide SAT - Total Return Fund ...................... 142,018 27.330741 3,881,457
Neuberger & Berman - Growth Portfolio.................... 130,600 20.398926 2,664,100
Neuberger & Berman -
Limited Maturity Bond Portfolio . .................... 85,451 14.412730 1,231,582
Neuberger & Berman - Partners Portfolio.................. 208,674 19.852876 4,142,779
Oppenheimer - Bond Fund ................................. 93,180 16.977931 1,582,004
Oppenheimer - Global Securities Fund .................... 129,081 15.310986 1,976,357
Oppenheimer - Multiple Strategies Fund .................. 154,143 20.281468 3,126,246
Strong Special Fund II, Inc. ............................ 131,495 23.221488 3,053,510
Strong VIF - Strong Discovery Fund II ................... 86,950 16.712568 1,453,158
Strong VIF - Strong International Stock Fund II ......... 39,112 12.028771 470,469
Van Eck - Worldwide Bond Fund ........................... 47,806 14.123038 675,166
Van Eck - Worldwide Emerging Markets Fund ............... 99,051 12.303191 1,218,643
Van Eck - Worldwide Hard Assets Fund .................... 176,800 16.426593 2,904,222
Van Kampen American Capital LIT -
Real Estate Securities Fund .......................... 82,719 15.803016 1,307,210
Warburg Pincus - International Equity Portfolio ......... 211,221 13.222367 2,792,842
Warburg Pincus - Post Venture Capital Portfolio ......... 10,834 10.439903 113,106
Warburg Pincus - Small Company Growth Portfolio ......... 125,906 14.246349 1,793,701
Multiple Payment contracts and Flexible Premium contracts:
American Century VP -
American Century VP Balanced ......................... 157,592 15.886009 2,503,508
American Century VP -
American Century VP Capital Appreciation ............. 592,596 14.738773 8,734,138
American Century VP -
American Century VP International .................... 227,674 14.071418 3,203,696
American Century VP -
American Century VP Value ............................ 41,050 11.452016 470,105
The Dreyfus Socially Responsible Growth Fund, Inc. ...... 209,938 20.067574 4,212,946
Dreyfus Stock Index Fund ................................ 1,184,718 20.087892 23,798,487
Dreyfus VIF - Growth and Income Portfolio ............... 30,393 10.866361 330,261
Fidelity VIP - Equity-Income Portfolio .................. 1,384,651 29.198573 40,429,833
Fidelity VIP - Growth Portfolio ......................... 1,936,495 27.422266 53,103,081
Fidelity VIP - High Income Portfolio .................... 601,116 25.305043 15,211,266
Fidelity VIP - Overseas Portfolio ....................... 826,441 17.772931 14,688,279
Fidelity VIP-II - Asset Manager Portfolio ............... 905,034 20.125955 18,214,674
Fidelity VIP-II - Contrafund Portfolio .................. 1,106,788 14.850339 16,436,177
Nationwide SAT - Capital Appreciation Fund .............. 488,900 22.151612 10,829,923
Nationwide SAT - Government Bond Fund ................... 214,611 15.757158 3,381,659
Nationwide SAT - Money Market Fund ...................... 1,774,279 12.475345 22,134,743
Nationwide SAT - Small Company Fund ..................... 491,455 15.127883 7,434,674
Nationwide SAT - Total Return Fund ...................... 2,062,489 26.153320 53,940,935
</TABLE>
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<TABLE>
<S> <C> <C> <C>
Neuberger & Berman - Growth Portfolio.................... 551,449 20.170565 11,123,038
Neuberger & Berman -
Limited Maturity Bond Portfolio ...................... 134,570 13.897471 1,870,183
Neuberger & Berman - Partners Portfolio ................. 659,281 20.143858 13,280,463
Oppenheimer - Bond Fund ................................. 312,610 16.155671 5,050,424
Oppenheimer - Global Securities Fund .................... 734,224 15.600333 11,454,139
Oppenheimer - Multiple Strategies Fund .................. 365,343 20.054867 7,326,905
Strong Special Fund II, Inc. ............................ 721,124 23.829097 17,183,734
Strong VIF - Strong Discovery Fund II. .................. 326,626 17.150062 5,601,656
Strong VIF - Strong International Stock Fund II ......... 125,326 12.130519 1,520,269
Van Eck - Worldwide Bond Fund ........................... 119,930 13.308541 1,596,093
Van Eck - Worldwide Emerging Markets Fund ............... 152,582 12.335038 1,882,105
Van Eck - Worldwide Hard Assets Fund .................... 193,027 18.157191 3,504,828
Van Kampen American Capital LIT -
Real Estate Securities Fund .......................... 208,149 15.961051 3,322,277
Warburg Pincus - International Equity Portfolio ......... 547,142 13.354669 7,306,900
Warburg Pincus - Post Venture Capital Portfolio ......... 16,849 10.466964 176,358
Warburg Pincus - Small Company Growth Portfolio ......... 550,104 14.388933 7,915,410
Modified Single Premium and Last Survivor Flexible Premium contracts:
American Century VP -
American Century VP Balanced ......................... 13,484 11.906256 160,544
American Century VP -
American Century VP Capital Appreciation ............. 18,487 8.803151 162,744
American Century VP -
American Century VP International .................... 8,016 12.799863 102,604
American Century VP -
American Century VP Value ............................ 9,545 11.499506 109,763
The Dreyfus Socially Responsible Growth Fund, Inc. ...... 17,567 13.005411 228,466
Dreyfus Stock Index Fund ................................ 92,862 13.802478 1,281,726
Dreyfus VIF - Growth and Income Portfolio ............... 6,027 10.911442 65,763
Fidelity VIP - Equity-Income Portfolio .................. 205,289 12.559099 2,578,245
Fidelity VIP - Growth Portfolio ......................... 107,134 11.890717 1,273,900
Fidelity VIP - High Income Portfolio .................... 82,892 11.664614 966,903
Fidelity VIP - Overseas Portfolio ....................... 30,894 12.421554 383,751
Fidelity VIP-II - Asset Manager Portfolio ............... 45,750 12.257138 560,764
Fidelity VIP-II - Contrafund Portfolio .................. 120,938 12.558120 1,518,754
Nationwide SAT - Capital Appreciation Fund .............. 27,697 14.024945 388,449
Nationwide SAT - Government Bond Fund ................... 16,794 10.982247 184,436
Nationwide SAT - Money Market Fund ...................... 385,648 10.601731 4,088,536
Nationwide SAT - Small Company Fund ..................... 40,942 11.486696 470,288
Nationwide SAT - Total Return Fund ...................... 178,985 13.666522 2,446,102
Neuberger & Berman - Growth Portfolio ................... 17,029 11.565261 196,945
Neuberger & Berman -
Limited Maturity Bond Portfolio ...................... 52,765 10.787570 569,206
Neuberger & Berman - Partners Portfolio ................. 74,059 13.285869 983,938
</TABLE>
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<PAGE> 14
<TABLE>
<S> <C> <C> <C>
Oppenheimer - Bond Fund ................................. 29,377 10.951888 321,734
Oppenheimer - Global Securities Fund .................... 29,100 12.580515 366,093
Oppenheimer - Multiple Strategies Fund .................. 31,350 11.938567 374,274
Strong Special Fund II, Inc. ............................ 31,887 11.938735 380,690
Strong VIF - Strong Discovery Fund II. .................. 30,139 10.305568 310,600
Strong VIF - Strong International Stock Fund II ......... 23,535 10.925010 257,120
Van Eck - Worldwide Bond Fund ........................... 8,577 10.424924 89,415
Van Eck - Worldwide Emerging Markets Fund ............... 20,010 12.386165 247,847
Van Eck - Worldwide Hard Assets Fund .................... 10,451 10.025655 104,778
Van Kampen American Capital LIT -
Real Estate Securities Fund .......................... 23,731 14.563855 345,615
Warburg Pincus - International Equity Portfolio ......... 59,663 11.423542 681,563
Warburg Pincus - Post Venture Capital Portfolio ......... 39 10.510414 410
Warburg Pincus - Small Company Growth Portfolio 53,741 10.082750 541,857
------ --------- -------------
$ 534,025,287
=============
</TABLE>
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<PAGE> 15
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA o COLUMBUS, OHIO 43215-2220
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
