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Nationwide(R) VLI
Separate Account-2
December 31, 1997
[THE BEST OF AMERICA(R) LOGO]
LifePlanning Series(R)
'97
ANNUAL REPORT
[NATIONWIDE LOGO]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
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[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215 - 2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the
1997 annual report of the Nationwide VLI Separate Account-2.
Equity markets ended a volatile season to record the third straight
year of gains topping the 20 percent mark. Additionally, returns on
fixed income investments were buoyed by declining inflation, steady
Federal Reserve policy and the positive outlook for lower budget
deficits.
The U.S. economy continues to be strong into 1998. However, there is
still much uncertainty about what effect the Southeast Asian crisis
will have on our economy during this year. The obvious result, we
believe, will be a slowing of economic growth due to reduced
exports, restrained pricing flexibility and lower corporate profits.
We expect the Federal Reserve will continue to stay on the sidelines
as the Southeast Asian economic turmoil plays out. At the same time,
low inflation and low interest rates should continue to provide a
healthy environment for financial assets.
We are committed to our customers as our most valuable asset. Our
commitment to you is to continue to add value to our products and
services to help you achieve your financial planning and retirement
goals. As always, we welcome and encourage your feedback.
/s/ Joseph J. Gasper, President
Joseph J. Gasper, President
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NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1997
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at market value:
American Century VP - American Century VP Balanced (ACVPBal)
450,365 shares (cost $3,528,940) ................................................... $ 3,711,009
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
1,251,568 shares (cost $13,536,259) ................................................ 12,115,182
American Century VP - American Century VP International (ACVPInt)
962,266 shares (cost $6,644,002) ................................................... 6,581,900
American Century VP - American Century VP Value (ACVPValue)
247,477 shares (cost $1,686,843) ................................................... 1,715,016
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
288,951 shares (cost $6,988,377) ................................................... 7,215,109
Dreyfus Stock Index Fund (DryStkIx)
1,707,776 shares (cost $40,352,694) ................................................ 43,975,229
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
15,469 shares (cost $435,161) ...................................................... 431,598
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
57,884 shares (cost $1,280,956) .................................................... 1,202,834
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
2,871,655 shares (cost $56,323,170) ................................................ 69,723,785
Fidelity VIP - Growth Portfolio (FidVIPGr)
2,020,415 shares (cost $67,005,105) ................................................ 74,957,386
Fidelity VIP - High Income Portfolio (FidVIPHI)
1,852,037 shares (cost $23,041,039) ................................................ 25,150,659
Fidelity VIP - Overseas Portfolio (FidVIPOv)
994,402 shares (cost $18,739,132) .................................................. 19,092,517
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
1,569,275 shares (cost $23,423,853) ................................................ 28,262,651
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
1,444,442 shares (cost $24,113,457) ................................................ 28,802,183
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
57,717 shares (cost $1,083,502) .................................................... 1,112,204
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
26,082 shares (cost $249,822) ...................................................... 252,215
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
1,025,559 shares (cost $21,432,535) ................................................ 21,752,099
Nationwide SAT - Government Bond Fund (NSATGvtBd)
792,837 shares (cost $9,071,723) ................................................... 9,022,484
Nationwide SAT - Money Market Fund (NSATMyMkt)
41,137,522 shares (cost $41,137,522) ............................................... 41,137,522
</TABLE>
(Continued)
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<TABLE>
<S> <C>
Nationwide SAT - Small Company Fund (NSATSmCo)
861,772 shares (cost $14,442,491) .......................................... 13,659,092
Nationwide SAT - Total Return Fund (NSATTotRe)
4,556,451 shares (cost $61,467,891) ........................................ 74,634,664
Neuberger &Berman AMT - Growth Portfolio (NBAMTGro)
574,343 shares (cost $16,246,741) .......................................... 17,540,438
Neuberger &Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
417,231 shares (cost $5,804,690) ........................................... 5,891,308
Neuberger &Berman AMT - Partners Portfolio (NBAMTPart)
1,394,479 shares (cost $26,115,621) ........................................ 28,726,274
Oppenheimer VAF - Bond Fund (OppBdFd)
740,592 shares (cost $8,732,177) ........................................... 8,820,455
Oppenheimer VAF - Global Securities Fund (OppGlSec)
774,702 shares (cost $13,493,381) .......................................... 16,555,373
Oppenheimer VAF - Growth Fund (OppGro)
19,076 shares (cost $615,472) .............................................. 618,841
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
726,507 shares (cost $10,917,824) .......................................... 12,357,889
Strong Opportunity Fund II, Inc. (StOpp2)
1,170,744 shares (cost $20,723,927) ........................................ 25,405,139
Strong VIF - Strong Discovery Fund II (StDisc2)
627,226 shares (cost $7,206,442) ........................................... 7,545,529
Strong VIF - Strong International Stock Fund II (StIntStk2)
213,104 shares (cost $2,308,084) ........................................... 1,986,133
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
230,121 shares (cost $2,486,613) ........................................... 2,529,034
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
218,008 shares (cost $3,213,391) ........................................... 2,398,087
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
401,815 shares (cost $7,002,936) ........................................... 6,316,535
Van Kampen American Capital LIT -
Morgan Stanley Real Estate Securities Portfolio (MSRESec)
480,988 shares (cost $7,935,817) ........................................... 7,623,661
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
950,953 shares (cost $11,329,279) .......................................... 9,975,497
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
69,318 shares (cost $768,255) .............................................. 766,662
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
947,893 shares (cost $15,514,842) .......................................... 15,621,270
-------------
Total investments ....................................................... 655,185,463
Accounts receivable .............................................................. 3,401,859
-------------
Total assets ............................................................ 658,587,322
ACCOUNTS PAYABLE .................................................................... -
-------------
CONTRACT OWNERS' EQUITY (NOTE 8) .................................................... $ 658,587,322
=============
</TABLE>
See accompanying notes to financial statements.
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NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
1997 1996 1995
------------- ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................ $ 9,547,366 6,387,808 4,182,333
Mortality and expense charges (note 3)
Single Premium contracts issued prior to
April 16, 1990 ............................. (17,545) (16,385) (15,723)
Single Premium contracts issued on or after
April 16, 1990 ............................. (1,003,388) (874,853) (670,173)
Multiple Payment and Flexible Premium contracts (3,622,060) (2,092,228) (1,061,446)
------------- ------------ ------------
Net investment activity .......................... 4,904,373 3,404,342 2,434,991
------------- ------------ ------------
Proceeds from mutual fund shares sold ............... 443,749,426 275,979,207 163,574,836
Cost of mutual funds sold ........................... (409,583,997) (266,008,543) (154,208,870)
------------- ------------ ------------
Realized gain on investments ..................... 34,165,429 9,970,664 9,365,966
Change in unrealized gain on investments ............ 31,280,650 12,175,328 17,134,325
------------- ------------ ------------
Net gain on investments .......................... 65,446,079 22,145,992 26,500,291
------------- ------------ ------------
Reinvested capital gains ............................ 19,594,720 10,584,883 2,581,875
------------- ------------ ------------
Net increase in contract owners'
equity resulting from operations ........... 89,945,172 36,135,217 31,517,157
------------- ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from contract owners ..... 218,381,791 174,104,282 106,694,208
Surrenders .......................................... (11,960,967) (6,124,049) (4,970,867)
Death benefits (note 4) ............................. (664,672) (730,700) (143,265)
Policy loans (net of repayments) (note 5) ........... (9,898,715) (6,468,023) (2,529,830)
Deductions for surrender charges (note 2d) .......... (1,603,674) (721,263) (364,725)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) ..... (34,553,252) (24,075,896) (14,110,656)
Deductions for asset charges (note 3) ............... (227,535) (20,037) --
------------- ------------ ------------
Net increase in equity transactions ........... 159,472,976 135,964,314 84,574,865
------------- ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY .................. 249,418,148 172,099,531 116,092,022
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ............ 409,169,174 237,069,643 120,977,621
------------- ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD .................. $ 658,587,322 409,169,174 237,069,643
============= ============ ============
</TABLE>
See accompanying notes to financial statements.
5
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NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997, 1996 AND 1995
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLI Separate 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)
Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
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)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
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Portfolio of the Morgan Stanley Universal Funds, Inc. (Morgan
Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
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)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger & Berman AMT);
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
Neuberger & Berman AMT - Limited Maturity Bond Portfolio
(NBAMTLMat)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer VAF);
Oppenheimer VAF - Bond Fund (OppBdFd)
Oppenheimer VAF - Global Securities Fund (OppGlSec)
Oppenheimer VAF - Growth Fund (OppGro)
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
Strong Opportunity Fund II, Inc. (StOpp2) (formerly Strong
Special Fund II)
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 WIT);
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs) (formerly
Van Eck WIT - Gold and Natural Resources Fund)
Portfolio of the Van Kampen American Capital Life Investment
Trust (Van Kampen American Capital LIT);
Van Kampen American Capital LIT - Morgan Stanley Real Estate
Securities Portfolio (MSRESec) (formerly Van Kampen American
Capital LIT - Real Estate Securities Fund)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Post Venture Capital Portfolio
(WPPVenCap)
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
At December 31, 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 December 31, 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.
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(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 period presentation.
(2) POLICY CHARGES
(a) Deductions from Premiums
For single premium contracts, no deduction is made from any premium at
the time of payment. 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 policyholder.
(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.
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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.
(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%.
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(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.
(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.
(6) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
(7) SCHEDULE I
Schedule I presents the components of the change in the unit values, which
are the basis for contract owners' equity. This schedule is presented for
each series, as applicable, in the following format:
- Beginning unit value - Jan. 1
- Reinvested capital gains and dividends (This amount reflects
the increase in the unit value due to capital gain and
dividend distributions from the underlying mutual funds.)
- Unrealized gain (loss) (This amount reflects the increase
(decrease) in the unit value resulting from the market
appreciation (depreciation) of the underlying mutual funds.)
- Asset charges (This amount reflects the decrease in the unit
value due to the charges discussed in note 3.)
- Ending unit value - Dec. 31
- Percentage increase (decrease) in unit value.
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(8) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1997,
for each product in the accumulation phase.
<TABLE>
<CAPTION>
Contract owners' equity represented by: ANNUAL
UNITS UNIT VALUE RETURN
--------- --------- --------
<S> <C> <C> <C> <C>
Single Premium contracts issued prior to April 16, 1990:
American Century VP - American Century
VP Capital Appreciation .......................... 8,329 $23.049846 $ 191,982 (4)%
Dreyfus Stock Index Fund ............................ 9,956 21.945853 218,493 32%
Fidelity VIP - Equity-Income Portfolio .............. 6,812 37.884780 258,071 27%
Fidelity VIP - Growth Portfolio ..................... 5,177 42.050483 217,695 22%
Fidelity VIP - High Income Portfolio ................ 3,493 28.548032 99,718 17%
Fidelity VIP - Overseas Portfolio ................... 5,108 21.717871 110,935 11%
Fidelity VIP-II - Asset Manager Portfolio ........... 1,203 24.530415 29,510 20%
Fidelity VIP-II - Contrafund Portfolio .............. 3,331 16.387248 54,586 23%
Nationwide SAT -
Capital Appreciation Fund ........................ 2,373 24.356996 57,799 33%
Nationwide SAT -
Government Bond Fund ............................. 2,159 21.554629 46,536 9%
Nationwide SAT - Money Market Fund .................. 9,301 15.508767 144,247 4%
Nationwide SAT - Small Company Fund ................. 124 16.146794 2,002 16%
Nationwide SAT - Total Return Fund .................. 2,904 34.253930 99,473 28%
Neuberger &Berman AMT -
Growth Portfolio ................................. 5,113 31.739871 162,286 28%
Neuberger &Berman AMT -
Limited Maturity Bond Portfolio .................. 5,557 17.375997 96,558 6%
Neuberger & Berman AMT -
Partners Portfolio ............................... 2,379 22.629887 53,837 30%
Strong Opportunity Fund II, Inc. .................... 456 26.626359 12,142 24%
Van Eck WIT - Worldwide Bond Fund ................... 22 14.891060 328 1%
Van Eck WIT -
Worldwide Hard Assets Fund ....................... 5,526 14.622970 80,807 (3)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio ............................. 4,138 18.062622 74,743 20%
Warburg Pincus Trust -
International Equity Portfolio ................... 1,792 11.264405 20,186 (3)%
Warburg Pincus Trust -
Small Company Growth Portfolio ................... 134 16.093971 2,157 15%
Single Premium contracts issued on or
after April 16, 1990:
American Century VP -
American Century VP Balanced ..................... 38,245 16.350628 625,330 14%
American Century VP - American Century
VP Capital Appreciation .......................... 129,674 15.434921 2,001,508 (5)%
</TABLE>
(Continued)
11
<PAGE> 12
<TABLE>
<S> <C> <C> <C> <C>
American Century VP -
American Century VP International .... 109,065 13.757328 1,500,443 17%
American Century VP -
American Century VP Value ............ 36,293 12.622928 458,124 24%
The Dreyfus Socially Responsible
Growth Fund, Inc. .................... 27,923 21.605205 603,282 27%
Dreyfus Stock Index Fund ................ 252,267 21.622115 5,454,546 31%
Dreyfus VIF -
Capital Appreciation Portfolio ....... 8,365 10.192453 85,260 2%(a)
Dreyfus VIF -
Growth and Income Portfolio .......... 11,510 11.456116 131,860 15%
Fidelity VIP - Equity-Income Portfolio .. 525,933 30.880183 16,240,907 26%
Fidelity VIP - Growth Portfolio ......... 325,852 28.978553 9,442,719 22%
Fidelity VIP - High Income Portfolio .... 160,493 29.267460 4,697,222 16%
Fidelity VIP - Overseas Portfolio ....... 310,985 15.587449 4,847,463 10%
Fidelity VIP-II - Asset Manager Portfolio 293,986 23.873730 7,018,542 19%
Fidelity VIP-II - Contrafund Portfolio .. 257,262 16.244815 4,179,174 23%
Fidelity VIP-III -
Growth Opportunities Portfolio ....... 31,619 10.932562 345,677 9%(a)
Morgan Stanley -
Emerging Markets Debt Portfolio ...... 5,443 9.810873 53,401 (2)%(a)
Nationwide SAT -
Capital Appreciation Fund ............ 71,279 23.875030 1,701,788 33%
Nationwide SAT -
Government Bond Fund ................. 255,535 17.806978 4,550,306 8%
Nationwide SAT - Money Market Fund ...... 1,051,590 12.964662 13,633,509 4%
Nationwide SAT - Small Company Fund ..... 79,580 16.023638 1,275,161 16%
Nationwide SAT - Total Return Fund ...... 149,445 29.430261 4,398,205 28%
Neuberger &Berman AMT -
Growth Portfolio ..................... 135,697 22.311330 3,027,581 27%
Neuberger &Berman AMT -
Limited Maturity Bond Portfolio ...... 169,876 14.844266 2,521,685 5%
Neuberger &Berman AMT -
Partners Portfolio ................... 233,445 22.361130 5,220,094 30%
Oppenheimer VAF - Bond Fund ............. 89,920 17.910876 1,610,546 8%
Oppenheimer VAF -
Global Securities Fund ............... 113,733 16.036486 1,823,878 21%
Oppenheimer VAF - Growth Fund ........... 10,788 10.428297 112,500 4%(a)
Oppenheimer VAF -
Multiple Strategies Fund ............. 152,543 21.638756 3,300,841 16%
Strong Opportunity Fund II, Inc. ........ 132,285 26.101254 3,452,804 24%
Strong VIF - Strong Discovery Fund II ... 68,152 17.738866 1,208,939 10%
Strong VIF -
Strong International Stock Fund II ... 40,251 9.511045 382,829 (15)%
Van Eck WIT - Worldwide Bond Fund ....... 45,566 14.492332 660,358 1%
Van Eck WIT -
Worldwide Emerging Markets Fund ...... 35,382 8.793232 311,122 (13)%
Van Eck WIT -
Worldwide Hard Assets Fund ........... 142,782 16.093994 2,297,933 (3)%
</TABLE>
12
<PAGE> 13
<TABLE>
<S> <C> <C> <C> <C>
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio ................. 98,406 17.905659 1,762,024 20%
Warburg Pincus Trust -
International Equity Portfolio ....... 134,117 11.166430 1,497,608 (4)%
Warburg Pincus Trust -
Post Venture Capital Portfolio ....... 20,440 11.370593 232,415 12%
Warburg Pincus Trust -
Small Company Growth Portfolio ....... 175,452 15.954033 2,799,167 14%
Multiple Payment contracts and
Flexible Premium contracts:
American Century VP -
American Century VP Balanced ......... 162,980 16.822481 2,741,728 15%
American Century VP - American Century
VP Capital Appreciation .............. 655,176 14.709822 9,637,522 (4)%
American Century VP -
American Century VP International .... 333,719 13.994328 4,670,173 18%
American Century VP -
American Century VP Value ............ 81,237 12.687534 1,030,697 25%
The Dreyfus Socially Responsible
Growth Fund, Inc. .................... 275,028 22.067304 6,069,126 27%
Dreyfus Stock Index Fund ................ 1,577,410 22.086039 34,838,739 32%
Dreyfus VIF -
Capital Appreciation Portfolio ....... 33,449 10.216196 341,722 2%(a)
Dreyfus VIF -
Growth and Income Portfolio .......... 74,022 11.514756 852,345 15%
Fidelity VIP - Equity-Income Portfolio .. 1,533,661 32.007773 49,089,073 27%
Fidelity VIP - Growth Portfolio ......... 2,133,432 29.627929 63,209,172 22%
Fidelity VIP - High Income Portfolio .... 660,090 27.535006 18,175,582 17%
Fidelity VIP - Overseas Portfolio ....... 801,447 16.959418 13,592,075 11%
Fidelity VIP-II - Asset Manager Portfolio 930,767 21.747656 20,242,001 20%
Fidelity VIP-II - Contrafund Portfolio .. 1,351,683 16.448700 22,233,428 23%
Fidelity VIP-III -
Growth Opportunities Portfolio ....... 55,769 10.958018 611,118 10%(a)
Morgan Stanley -
Emerging Markets Debt Portfolio ...... 16,674 9.833749 163,968 (2)%(a)
Nationwide SAT -
Capital Appreciation Fund ............ 755,171 24.563746 18,549,829 33%
Nationwide SAT -
Government Bond Fund ................. 237,476 16.735906 3,974,376 9%
Nationwide SAT - Money Market Fund ...... 1,823,184 12.754301 23,253,438 4%
Nationwide SAT - Small Company Fund ..... 690,077 16.199871 11,179,158 16%
Nationwide SAT - Total Return Fund ...... 2,342,232 28.233403 66,129,180 28%
Neuberger &Berman AMT -
Growth Portfolio ..................... 628,860 22.117203 13,908,624 28%
Neuberger &Berman AMT -
Limited Maturity Bond Portfolio ...... 178,356 14.349688 2,559,353 6%
</TABLE>
(Continued)
13
<PAGE> 14
<TABLE>
<S> <C> <C> <C> <C>
Neuberger &Berman AMT -
Partners Portfolio ................ 928,663 22.746051 21,123,416 30%
Oppenheimer VAF - Bond Fund .......... 381,236 17.086434 6,513,964 8%
Oppenheimer VAF -
Global Securities Fund ............ 855,620 16.380762 14,015,708 21%
Oppenheimer VAF - Growth Fund ........ 40,779 10.452595 426,246 5%(a)
Oppenheimer VAF -
Multiple Strategies Fund .......... 387,094 21.450954 8,303,536 16%
Strong Opportunity Fund II, Inc. ..... 791,884 26.851737 21,263,461 24%
Strong VIF - Strong Discovery Fund II 337,867 18.249145 6,165,784 11%
Strong VIF -
Strong International Stock Fund II 140,532 9.615755 1,351,321 (14)%
Van Eck WIT - Worldwide Bond Fund .... 121,423 13.690999 1,662,402 2%
Van Eck WIT -
Worldwide Emerging Markets Fund ... 222,956 8.838307 1,970,554 (12)%
Van Eck WIT -
Worldwide Hard Assets Fund ........ 212,577 17.834480 3,791,200 (2)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio .............. 275,704 18.130321 4,998,602 21%
Warburg Pincus Trust -
International Equity Portfolio .... 651,598 11.306660 7,367,397 (3)%
Warburg Pincus Trust -
Post Venture Capital Portfolio .... 44,199 11.428806 505,142 12%
Warburg Pincus Trust -
Small Company Growth Portfolio .... 712,489 16.154327 11,509,780 15%
Modified Single Premium contracts and
Last Survivor Flexible Premium contracts:
American Century VP -
American Century VP Balanced ...... 27,206 12.659036 344,402 16%
American Century VP - American Century
VP Capital Appreciation ........... 32,542 8.821378 287,065 (3)%
American Century VP -
American Century VP International . 32,515 12.781185 415,580 19%
American Century VP -
American Century VP Value ......... 17,691 12.791587 226,296 26%
The Dreyfus Socially Responsible
Growth Fund, Inc. ................. 37,804 14.359114 542,832 28%
Dreyfus Stock Index Fund ............. 228,273 15.236658 3,478,118 33%
Dreyfus VIF -
Capital Appreciation Portfolio .... 450 10.254291 4,614 3%(a)
Dreyfus VIF -
Growth and Income Portfolio ....... 18,834 11.609215 218,648 16%
Fidelity VIP - Equity-Income Portfolio 299,539 13.822981 4,140,522 28%
Fidelity VIP - Growth Portfolio ...... 162,254 12.898986 2,092,912 23%
Fidelity VIP - High Income Portfolio . 171,832 12.743794 2,189,792 18%
Fidelity VIP - Overseas Portfolio .... 45,600 11.900892 542,681 12%
</TABLE>
14
<PAGE> 15
<TABLE>
<S> <C> <C> <C> <C>
Fidelity VIP-II - Asset Manager Portfolio.. 73,280 13.298253 974,496 21%
Fidelity VIP-II - Contrafund Portfolio .... 167,595 13.965921 2,340,619 24%
Fidelity VIP-III -
Growth Opportunities Portfolio ......... 13,840 10.998857 152,224 10%(a)
Morgan Stanley -
Emerging Markets Debt Portfolio ........ 3,497 9.870449 34,517 (1)%(a)
Nationwide SAT -
Capital Appreciation Fund .............. 92,414 15.614947 1,443,040 34%
Nationwide SAT -
Government Bond Fund ................... 38,575 11.711522 451,772 10%
Nationwide SAT - Money Market Fund ........ 680,581 10.882768 7,406,605 5%
Nationwide SAT - Small Company Fund ....... 99,062 12.350345 1,223,450 17%
Nationwide SAT - Total Return Fund ........ 270,928 14.813042 4,013,268 29%
Neuberger & Berman AMT -
Growth Portfolio ....................... 35,081 12.732630 446,673 29%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio ........ 63,831 11.183579 713,859 7%
Neuberger & Berman AMT -
Partners Portfolio ..................... 154,752 15.062681 2,330,980 31%
Oppenheimer VAF - Bond Fund ............... 60,188 11.629634 699,964 9%
Oppenheimer VAF -
Global Securities Fund ................. 53,741 13.263226 712,779 22%
Oppenheimer VAF - Growth Fund ............. 7,635 10.491590 80,103 5%(a)
Oppenheimer VAF -
Multiple Strategies Fund ............... 58,544 12.821215 750,605 17%
Strong Opportunity Fund II, Inc. .......... 50,153 13.507426 677,438 25%
Strong VIF - Strong Discovery Fund II ..... 15,515 11.010302 170,825 11%
Strong VIF -
Strong International Stock Fund II ..... 28,984 8.695226 252,022 (14)%
Van Eck WIT - Worldwide Bond Fund ......... 19,142 10.767851 206,118 2%
Van Eck WIT -
Worldwide Emerging Markets Fund ........ 13,242 8.910909 117,998 (12)%
Van Eck WIT -
Worldwide Hard Assets Fund ............. 14,793 9.887286 146,263 (2)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio ................... 47,746 16.610019 793,062 21%
Warburg Pincus Trust -
International Equity Portfolio ......... 112,574 9.710827 1,093,187 (2)%
Warburg Pincus Trust -
Post Venture Capital Portfolio ......... 2,527 11.522579 29,118 13%
Warburg Pincus Trust -
Small Company Growth Portfolio ......... 116,237 11.365509 1,321,093 16%
======= ========= -------------
$ 658,587,322
=============
</TABLE>
(a) This investment option was not being utilized for the entire period.
15
<PAGE> 16
Schedule I
NATIONWIDE VLI SEPARATE ACCOUNT-2
Single Premium Contracts Issued Prior to April 16, 1990
SCHEDULES OF CHANGES IN UNIT VALUE
Years Ended December 31, 1997, 1996 and 1995
<TABLE>
<CAPTION>
ACVPCapAp DryStkIx FidVIPEI FidVIPGr FidVIPHI FidVIPOv
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
1997***
Beginning unit value - Jan. 1 $ 24.053649 16.663330 29.854628 34.379126 24.493313 19.654083
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends .485163 .958001 3.077613 1.268399 1.954453 1.709218
------------ ------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) (1.263148) 4.511423 5.277194 6.771006 2.351846 .559210
------------ ------------ ------------ ------------ ------------ ------------
Asset charges (.225818) (.186901) (.324655) (.368048) (.251580) (.204640)
------------ ------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 23.049846 21.945853 37.884780 42.050483 28.548032 21.717871
------------ ------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value* (4)% 32% 27% 22% 17% 11%
============ ============ ============ ============ ============ ============
1996
Beginning unit value - Jan. 1 $ 25.381408 ** 26.373971 30.259267 21.685282 17.526172
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends 2.847171 1.217030 2.174262 1.977825 .431349
------------ ------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) (3.934619) 2.528645 2.256603 1.050520 1.872575
------------ ------------ ------------ ------------ ------------ ------------
Asset charges (.240311) (.265018) (.311006) (.220314) (.176013)
------------ ------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 24.053649 29.854628 34.379126 24.493313 19.654083
------------ ------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value* (5)% 13% 14% 13% 12%
============ ============ ============ ============ ============ ============
1995
Beginning unit value - Jan. 1 $ 19.544976 ** 19.708533 22.566466 18.151674 16.131866
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends .022491 1.542607 .124738 1.314664 .123427
------------ ------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) 6.032555 5.341041 7.828480 2.410020 1.428229
------------ ------------ ------------ ------------ ------------ ------------
Asset charges (.218614) (.218210) (.260417) (.191076) (.157350)
------------ ------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 25.381408 26.373971 30.259267 21.685282 17.526172
------------ ------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value* 30% 34% 34% 19% 9%
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVIPAM FidVIPCon NSATCapAp NSATGvtBd
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
1997***
Beginning unit value - Jan. 1 20.525705 13.326381 18.283070 19.842234
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends 2.507226 .410019 .742935 1.267003
------------ ------------ ------------ ------------
Unrealized gain (loss) 1.712461 2.792665 5.535524 .639911
------------ ------------ ------------ ------------
Asset charges (.214977) (.141817) (.204533) (.194519)
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 24.530415 16.387248 24.356996 21.554629
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value* 20% 23% 33% 9%
============ ============ ============ ============
1996
Beginning unit value - Jan. 1 18.081878 ** ** 19.357639
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends 1.189904 1.200383
------------ ------------ ------------ ------------
Unrealized gain (loss) 1.435663 (.533024)
------------ ------------ ------------ ------------
Asset charges (.181740) (.182764)
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 20.525705 19.842234
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value* 14% 3%
============ ============ ============ ============
1995
Beginning unit value - Jan. 1 15.607540 ** ** 16.457035
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends .327932 1.167149
------------ ------------ ------------ ------------
Unrealized gain (loss) 2.304058 1.903991
------------ ------------ ------------ ------------
Asset charges (.157652) (.170536)
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 18.081878 19.357639
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value* 16% 18%
============ ============ ============ ============
</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.
16
<PAGE> 17
Schedule I, continued
NATIONWIDE VLI SEPARATE ACCOUNT-2
Single Premium Contracts Issued Prior to April 16, 1990
SCHEDULES OF CHANGES IN UNIT VALUE
Years Ended December 31, 1997, 1996 and 1995
<TABLE>
<CAPTION>
NSATMyMkt NSATSmCo NSATTotRe NBAMTGro NBAMTLMat NBAMTPart
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
1997***
Beginning unit value - Jan. 1 $ 14.875178 13.890860 26.717684 24.838185 16.433880 17.406201
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends .778864 .440845 1.558497 2.183777 .969363 .864780
------------ ------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) .000000 1.957974 6.272453 4.993139 .133106 4.551693
------------ ------------ ------------ ------------ ------------ ------------
Asset charges (.145275) (.142885) (.294704) (.275230) (.160352) (.192787)
------------ ------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 15.508767 16.146794 34.253930 31.739871 17.375997 22.629887
------------ ------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) 4% 16% 28% 28% 6% 30%
============ ============ ============ ============ ============ ============
Beginning unit value - Jan. 1 $ 14.287454 ** 22.138653 22.976381 15.906671 **
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends .727569 1.479674 2.084651 1.338753
------------ ------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) .000000 3.328301 .004126 (.659070)
------------ ------------ ------------ ------------ ------------ ------------
Asset charges (.139845) (.228944) (.226973) (.152474)
------------ ------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 14.875178 26.717684 24.838185 16.433880
------------ ------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) 4% 21% 8% 3%
============ ============ ============ ============ ============ ============
1995
Beginning unit value - Jan. 1 $ 13.652006 ** 17.312690 17.608267 14.475203 **
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends .768745 1.720678 .623265 .804090
------------ ------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) .000000 3.293404 4.945641 .771696
------------ ------------ ------------ ------------ ------------ ------------
Asset charges (.133297) (.188119) (.200792) (.144318)
------------ ------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 14.287454 22.138653 22.976381 15.906671
------------ ------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) 5% 28% 30% 10%
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
StOpp2 VEWrldBd VEWrldHAs MSRESec
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
1997***
Beginning unit value - Jan. 1 21.426416 14.682655 15.014547 15.011508
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends 2.183305 .475835 .655044 2.041009
------------ ------------ ------------ ------------
Unrealized gain (loss) 3.245388 (.129445) (.902356) 1.163065
------------ ------------ ------------ ------------
Asset charges (.228750) (.137985) (.144265) (.152960)
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 26.626359 14.891060 14.622970 18.062622
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) 24% 1% (3)% 20%
============ ============ ============ ============
1996
Beginning unit value - Jan. 1 18.309087 14.458585 12.839256 10.784280
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends .861320 .394300 .272272 .288822
------------ ------------ ------------ ------------
Unrealized gain (loss) 2.443023 (.034088) 2.040791 4.051625
------------ ------------ ------------ ------------
Asset charges (.187014) (.136142) (.137772) (.113219)
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 21.426416 14.682655 15.014547 15.011508
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) 17% 2% 17% 39%
============ ============ ============ ============
1995
Beginning unit value - Jan. 1 14.690448 12.443161 11.677805 10.000000
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends .761035 1.008475 .115292 .092106
------------ ------------ ------------ ------------
Unrealized gain (loss) 3.013032 1.138120 1.160549 .740132
------------ ------------ ------------ ------------
Asset charges (.155428) (.131171) (.114390) (.047958)
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 18.309087 14.458585 12.839256 10.784280
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) 25% 16% 10% 8%(b)
============ ============ ============ ============
</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.
*** No other investment options were being utilized.
17
<PAGE> 18
Schedule I, continued
NATIONWIDE VLI SEPARATE ACCOUNT-2
Single Premium Contracts Issued Prior to April 16, 1990
SCHEDULES OF CHANGES IN UNIT VALUE
Years Ended December 31, 1997, 1996 and 1995
<TABLE>
<CAPTION>
WPIntEq WPSmCoGr
------------ ------------
<S> <C> <C>
1997***
Beginning unit value - Jan. 1 $ 11.634515 14.048996
------------ ------------
Reinvested capital gains
and dividends .721426 .000000
------------ ------------
Unrealized gain (loss) (.974429) 2.183432
------------ ------------
Asset charges (.117107) (.138457)
------------ ------------
Ending unit value - Dec. 31 $ 11.264405 16.093971
------------ ------------
Percentage increase (decrease)
in unit value* (3)% 15%
============ ============
1996
Beginning unit value - Jan. 1 $ 10.679811 **
------------ ------------
Reinvested capital gains
and dividends .226874
------------ ------------
Unrealized gain (loss) .835595
------------ ------------
Asset charges (.107765)
------------ ------------
Ending unit value - Dec. 31 $ 11.634515
------------ ------------
Percentage increase (decrease)
in unit value* 9%
============ ============
1995
Beginning unit value - Jan. 1 ** **
------------ ------------
Reinvested capital gains
and dividends
------------ ------------
Unrealized gain (loss)
------------ ------------
Asset charges
------------ ------------
Ending unit value - Dec. 31
------------ ------------
Percentage increase (decrease)
in unit value*
============ ============
</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.
<PAGE> 19
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
SINGLE PREMIUM CONTRACTS ISSUED ON OR AFTER APRIL 16, 1990
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
ACVPBAL ACVPCAPAP ACVPINT ACVPVALUE DRYSRGRO
---------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $14.303509 16.163625 11.748051 10.142583 17.041821
---------- ---------- ---------- ---------- ----------
Reinvested capital gains
and dividends .804637 .325754 .402865 .154473 .696492
---------- ---------- ---------- ---------- ----------
Unrealized gain (loss) 1.443113 (.847176) 1.778602 2.474066 4.123199
---------- ---------- ---------- ---------- ----------
Asset charges (.200631) (.207282) (.172190) (.148194) (.256307)
---------- ---------- ---------- ---------- ----------
Ending unit value - Dec. 31 $16.350628 15.434921 13.757328 12.622928 21.605205
---------- ---------- ---------- ---------- ----------
Percentage increase (decrease)
in unit value*(a) 14% (5)% 17% 24% 27%
========== ========== ========== ========== ==========
1996
Beginning unit value - Jan. 1 $12.914886 17.116040 10.403803 ** 14.242220
---------- ---------- ---------- ---------- ----------
Reinvested capital gains
and dividends .609960 1.918348 .247063 -- .735836
---------- ---------- ---------- ---------- ----------
Unrealized gain (loss) .954721 (2.649394) 1.239275 -- 2.266937
---------- --------- ---------- ---------- ----------
Asset charges (.176058) (.221369) (.142090) -- (.203172)
---------- ---------- ---------- ---------- ----------
Ending unit value - Dec. 31 $14.303509 16.163625 11.748051 -- 17.041821
---------- ---------- ---------- ---------- ----------
Percentage increase (decrease)
in unit value*(a) 11% (6)% 13% -- 20%
========== ========== ========== ========== ==========
1995
Beginning unit value - Jan. 1 $10.801955 13.226279 9.392654 ** 10.722275
---------- ---------- ---------- ---------- ----------
Reinvested capital gains
and dividends .305779 .015219 .000000 -- .392053
---------- ---------- ---------- ---------- ----------
Unrealized gain (loss) 1.961461 4.076606 1.136602 -- 3.289798
---------- ---------- ---------- ---------- ----------
Asset charges (.154309) (.202064) (.125453) -- (.161906)
---------- ---------- ---------- ---------- ----------
Ending unit value - Dec. 31 $12.914886 17.116040 10.403803 -- 14.242220
---------- ---------- ---------- ---------- ----------
Percentage increase (decrease)
in unit value*(a) 20% 29% 11% -- 33%
========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
DRYSTKIX DRYCAPAP DRYGRINC FIDVIPEI FIDVIPGR
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 16.474993 10.000000 9.986945 24.419978 23.774932
---------- ---------- ---------- ---------- ----------
Reinvested capital gains
and dividends .944651 .084439 .949964 2.516481 .876852
---------- ---------- ---------- ---------- ----------
Unrealized gain (loss) 4.454866 .168744 .659324 4.306453 4.674425
---------- ---------- ---------- ---------- ----------
Asset charges (.252395) (.060730) (.140117) (.362729) (.347656)
---------- ---------- ---------- ---------- ----------
Ending unit value - Dec. 31 21.622115 10.192453 11.456116 30.880183 28.978553
---------- ---------- ---------- ---------- ----------
Percentage increase (decrease)
in unit value*(a) 31% 2%(b) 15% 26% 22%
========== ========== ========== ========== ==========
1996
Beginning unit value - Jan. 1 13.621789 ** ** 21.648958 20.999607
---------- ---------- ---------- ---------- ----------
Reinvested capital gains
and dividends .587431 -- -- .998669 1.508424
---------- ---------- ---------- ---------- ----------
Unrealized gain (loss) 2.459672 -- -- 2.069513 1.561724
---------- ---------- ---------- ---------- ----------
Asset charges (.193899) -- -- (.297162) (.294823)
---------- ---------- ---------- ---------- ----------
Ending unit value - Dec. 31 16.474993 -- -- 24.419978 23.774932
---------- ---------- ---------- ---------- ----------
Percentage increase (decrease)
in unit value*(a) 21% -- -- 13% 13%
========== ========== ========== ========== ==========
1995
Beginning unit value - Jan. 1 10.088849 ** ** 16.234159 15.715602
---------- ---------- ---------- ---------- ----------
Reinvested capital gains
and dividends .361339 -- -- 1.269479 .086841
---------- ---------- ---------- ---------- ----------
Unrealized gain (loss) 3.326196 -- -- 4.390826 5.444880
---------- ---------- ---------- ---------- ----------
Asset charges (.154595) -- -- (.245506) (.247716)
---------- ---------- ---------- ---------- ----------
Ending unit value - Dec. 31 13.621789 -- -- 21.648958 20.999607
---------- ---------- ---------- ---------- ----------
Percentage increase (decrease)
in unit value*(a) 35% -- -- 33% 34%
========== ========== ========== ========== ==========
</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.
19
<PAGE> 20
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
SINGLE PREMIUM CONTRACTS ISSUED ON OR AFTER APRIL 16, 1990
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
FIDVIPHI FIDVIPOV FIDVIPAM FIDVIPCON FIDVIPGROP
-------- -------- -------- --------- ----------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $25.198564 14.155666 20.046209 13.256842 10.000000
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 2.010016 1.230611 2.447787 .407735 .000000
---------- --------- --------- --------- ---------
Unrealized gain (loss) 2.412412 .402500 1.666528 2.772953 .995976
---------- --------- --------- --------- ---------
Asset charges (.353532) (.201328) (.286794) (.192715) (.063414)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $29.267460 15.587449 23.873730 16.244815 10.932562
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 16% 10% 19% 23% 9%(b)
========== ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 $22.388295 12.667544 17.721708 11.071965 **
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 2.041281 .311669 1.165823 .104326 --
---------- --------- --------- --------- ---------
Unrealized gain (loss) 1.079684 1.350232 1.401973 2.236026 --
---------- --------- --------- --------- ---------
Asset charges (.310696) (.173779) (.243295) (.155475) --
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $25.198564 14.155666 20.046209 13.256842 --
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 13% 12% 13% 20% --
========== ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 $18.805616 11.700527 15.350115 10.000000 **
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.361583 .089493 .322418 .142783 --
---------- --------- --------- --------- ---------
Unrealized gain (loss) 2.491513 1.033414 2.260958 .998389 --
---------- --------- --------- --------- ---------
Asset charges (.270417) (.155890) (.211783) (.069207) --
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $22.388295 12.667544 17.721708 11.071965 --
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 19% 8% 15% 11%(b) --
========== ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
MSEMMKT NSATCAPAP NSATGVTBD NSATMYMKT NSATSMCO
------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 10.000000 17.984058 16.449774 12.479104 13.833221
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .380433 .728536 1.048107 .652320 .437491
--------- --------- --------- --------- ---------
Unrealized gain (loss) (.509130) 5.437239 .529384 .000000 1.947285
--------- --------- --------- --------- ---------
Asset charges (.060430) (.274803) (.220287) (.166762) (.194359)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 9.810873 23.875030 17.806978 12.964662 16.023638
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) (2)%(b) 33% 8% 4% 16%
======== ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 ** 14.444672 16.104612 12.028786 11.410311
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends -- .749268 .996469 .611421 .133295
--------- --------- --------- --------- ---------
Unrealized gain (loss) -- 2.998693 (.443598) .000000 2.456523
--------- --------- --------- --------- ---------
Asset charges -- (.208575) (.207709) (.161103) (.166908)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 -- 17.984058 16.449774 12.479104 13.833221
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) -- 25% 2% 4% 21%
======== ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 ** 11.312336 13.739287 11.534440 10.000000
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends -- .642275 .972265 .648458 .017459
--------- --------- --------- --------- ---------
Unrealized gain (loss) -- 2.653961 1.587542 .000000 1.418328
--------- --------- --------- --------- ---------
Asset charges -- (.163900) (.194482) (.154112) (.025476)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 -- 14.444672 16.104612 12.028786 11.410311
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) -- 28% 17% 4% 14%(b)
======== ========= ========= ========= =========
</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.
20
<PAGE> 21
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
SINGLE PREMIUM CONTRACTS ISSUED ON OR AFTER APRIL 16, 1990
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
NSATTOTRE NBAMTGRO NBAMTLMAT NBAMTPART OPPBDFD
--------- -------- --------- --------- -------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $23.035683 17.521012 14.088625 17.259712 16.608318
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.339626 1.539595 .830565 .857026 1.104155
---------- --------- --------- --------- ---------
Unrealized gain (loss) 5.402014 3.515921 .112862 4.505516 .420527
---------- --------- --------- --------- ---------
Asset charges (.347062) (.265198) (.187786) (.261124) (.222124)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $29.430261 22.311330 14.844266 22.361130 17.910876
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 28% 27% 5% 30% 8%
========== ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 $19.154939 16.264834 13.684722 13.495873 16.056725
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.276326 1.474851 1.151075 .549661 1.030165
---------- --------- --------- --------- ---------
Unrealized gain (loss) 2.875006 .000818 (.567983) 3.411340 (.269155)
---------- --------- --------- --------- ---------
Asset charges (.270588) (.219491) (.179189) (.197162) (.209417)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $23.035683 17.521012 14.088625 17.259712 16.608318
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 20% 8% 3% 28% 3%
========== ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 $15.031721 12.508337 12.496729 10.018146 13.903136
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.489410 .442496 .693794 .081860 .956955
---------- --------- --------- --------- ---------
Unrealized gain (loss) 2.856936 3.508824 .664378 3.550382 1.391543
---------- --------- --------- --------- ---------
Asset charges (.223128) (.194823) (.170179) (.154515) (.194909)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $19.154939 16.264834 13.684722 13.495873 16.056725
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 27% 30% 10% 35% 15%
========== ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
OPPGISEC OPPGRO OPPMULT STOPP2 STDISC2
-------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 13.270426 10.000000 18.701076 21.077454 16.133543
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .168504 .000000 1.441360 2.145928 .000000
--------- --------- --------- --------- ---------
Unrealized gain (loss) 2.793865 .491636 1.760353 3.185243 1.826618
--------- --------- --------- --------- ---------
Asset charges (.196309) (.063339) (.264033) (.307371) (.221295)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 16.036486 10.428297 21.638756 26.101254 17.738866
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 21% 4%(b) 16% 24% 10%
========= ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 11.413379 ** 16.404926 18.074367 16.214896
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .000000 -- 1.247087 .849403 3.300617
--------- --------- --------- --------- ---------
Unrealized gain (loss) 2.016448 -- 1.276232 2.405871 (3.177170)
--------- --------- --------- --------- ---------
Asset charges (.159401) -- (.227169) (.252187) (.204800)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 13.270426 -- 18.701076 21.077454 16.133543
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 16% -- 14% 17% (1)%
========= ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 11.309050 ** 13.693997 14.552799 12.144445
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .297396 -- 1.103154 .753037 .211667
--------- --------- --------- --------- ---------
Unrealized gain (loss) (.045694) -- 1.805769 2.978850 4.042004
--------- --------- --------- --------- ---------
Asset charges (.147373) -- (.197994) (.210319) (.183220)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 11.413379 -- 16.404926 18.074367 16.214896
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 1% -- 20% 24% 34%
========= ========= ========= ========= =========
</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.
21
<PAGE> 22
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
SINGLE PREMIUM CONTRACTS ISSUED ON OR AFTER APRIL 16, 1990
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
STINTSTK2 VEWRLDBD VEWRLDEMKT VEWRLDHAS MSRESEC
--------- -------- ---------- --------- -------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $11.141803 14.339608 10.077849 16.582948 14.933196
---------- --------- --------- --------- ----------
Reinvested capital gains
and dividends .468352 .464588 .040302 .723268 2.023697
---------- --------- --------- --------- ----------
Unrealized gain (loss) (1.953789) (.127783) (1.180028) (.994564) 1.156620
---------- --------- --------- --------- ----------
Asset charges (.145321) (.184081) (.144891) (.217658) (.207854)
---------- --------- --------- --------- ----------
Ending unit value - Dec. 31 $ 9.511045 14.492332 8.793232 16.093994 17.905659
---------- --------- --------- --------- ----------
Percentage increase (decrease)
in unit value*(a) (15)% 1% (13)% (3)% 20%
========== ========= ========= ========= ==========
1996
Beginning unit value - Jan. 1 $10.226632 14.170551 ** 14.230388 10.765797
---------- --------- --------- --------- ----------
Reinvested capital gains
and dividends .050938 .385883 -- .301335 .287384
---------- --------- --------- --------- ----------
Unrealized gain (loss) 1.007488 (.034573) -- 2.259820 4.034391
---------- --------- --------- --------- ----------
Asset charges (.143255) (.182253) -- (.208595) (.154376)
---------- --------- --------- --------- ----------
Ending unit value - Dec. 31 $11.141803 14.339608 -- 16.582948 14.933196
---------- --------- --------- --------- ----------
Percentage increase (decrease)
in unit value*(a) 9% 1% -- 17% 39%
========== ========= ========= ========= ==========
1995
Beginning unit value - Jan. 1 $10.000000 12.237880 ** 12.988341 10.000000
---------- --------- --------- --------- ----------
Reinvested capital gains
and dividends .041085 .990055 -- .127947 .091962
---------- --------- --------- --------- ----------
Unrealized gain (loss) .209467 1.118852 -- 1.287916 .739397
---------- --------- --------- --------- ----------
Asset charges (.023920) (.176236) -- (.173816) (.065562)
---------- --------- --------- --------- ----------
Ending unit value - Dec. 31 $10.226632 14.170551 -- 14.230388 10.765797
---------- --------- --------- --------- ----------
Percentage increase (decrease)
in unit value*(a) 2%(b) 16% -- 10% 8%(b)
========== ========= ========= ========= ==========
</TABLE>
<TABLE>
<CAPTION>
WPINTEQ WPPVENCAP WPSMCOGR
------- --------- --------
<S> <C> <C> <C>
1997
Beginning unit value - Jan. 1 11.573771 10.163791 13.975650
--------- --------- ---------
Reinvested capital gains
and dividends .715241 .001645 .000000
--------- --------- ---------
Unrealized gain (loss) (.963430) 1.343613 2.166520
--------- --------- ---------
Asset charges (.159152) (.138456) (.188137)
--------- --------- ---------
Ending unit value - Dec. 31 11.166430 11.370593 15.954033
--------- --------- ---------
Percentage increase (decrease)
in unit value*(a) (4)% 12% 14%
========= ========= =========
1996
Beginning unit value - Jan. 1 10.661502 ** 12.430586
--------- --------- ---------
Reinvested capital gains
and dividends .225731 -- .000000
--------- --------- ---------
Unrealized gain (loss) .833478 -- 1.720228
--------- --------- ---------
Asset charges (.146940) -- (.175164)
--------- --------- ---------
Ending unit value - Dec. 31 11.573771 -- 13.975650
--------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 9% -- 12%
========= ========= =========
1995
Beginning unit value - Jan. 1 10.000000 ** 10.000000
--------- --------- ---------
Reinvested capital gains
and dividends .077347 -- .000000
--------- --------- ---------
Unrealized gain (loss) .650501 -- 2.501606
--------- --------- ---------
Asset charges (.066346) -- (.071020)
--------- --------- ---------
Ending unit value - Dec. 31 10.661502 -- 12.430586
--------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 7%(b) -- 24%(b)
========= ========= =========
</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.
22
<PAGE> 23
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
MULTIPLE PAYMENT CONTRACTS AND FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
ACVPBAL ACVPCAPAP ACVPINT ACVPVALUE DRYSRGRO
------- --------- ------- --------- --------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $14.642920 15.327392 11.890858 10.143687 17.319589
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .824605 .309262 .408237 .154643 .711304
---------- --------- --------- --------- ---------
Unrealized gain (loss) 1.481680 (.805571) 1.802759 2.480646 4.197125
---------- --------- --------- --------- ---------
Asset charges (.126724) (.121261) (.107526) (.091442) (.160714)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $16.822481 14.709822 13.994328 12.687534 22.067304
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 15% (4)% 18% 25% 27%
========== ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 $13.155049 16.149061 10.477472 10.000000 14.401809
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .622373 1.812196 .249286 .000000 .747630
---------- --------- --------- --------- ---------
Unrealized gain (loss) .976138 2.505020 1.252389 .145457 2.296912
---------- --------- --------- --------- ---------
Asset charges (.110640) (.128845) (.088289) (.001770) (.126762)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $14.642920 15.327392 11.890858 10.143687 17.319589
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 11% (5)% 13% 1%(b) 20%
========== ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 $10.948128 12.417011 9.412116 ** 10.788547
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .310910 .014289 .000000 -- .396430
---------- --------- --------- --------- ---------
Unrealized gain (loss) 1.992508 3.834812 1.142911 -- 3.317353
---------- --------- --------- --------- ---------
Asset charges (.096497) (.117051) (.077555) -- (.100521)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $13.155049 16.149061 10.477472 -- 14.401809
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 20% 30% 11% -- 33%
========== ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
DRYSTKIX DRYCAPAP DRYGRINC FIDVIPEI FIDVIPGR
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 16.744674 10.000000 9.988034 25.185570 24.186560
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .963779 .084621 .953991 2.596690 .892486
--------- --------- --------- --------- ---------
Unrealized gain (loss) 4.535869 .168989 .659188 4.456322 4.767095
--------- --------- --------- --------- ---------
Asset charges (.158283) (.037414) (.086457) (.230809) (.218212)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 22.086039 10.216196 11.514756 32.007773 29.627929
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 32% 2%(b) 15% 27% 22%
========= ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 13.775382 ** ** 22.215745 21.256059
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .596225 -- -- 1.025291 1.527554
--------- --------- --------- --------- ---------
Unrealized gain (loss) 2.494042 -- -- 2.132663 1.587071
--------- --------- --------- --------- ---------
Asset charges (.120975) -- -- (.188129) (.184124)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 16.744674 -- -- 25.185570 24.186560
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 22% -- -- 13% 14%
========= ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 10.151919 ** ** 16.576413 15.828463
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .364933 -- -- 1.297971 .087506
--------- --------- --------- --------- ---------
Unrealized gain (loss) 3.354508 -- -- 4.496038 5.494030
--------- --------- --------- --------- ---------
Asset charges (.095978) -- -- (.154677) (.153940)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 13.775382 -- -- 22.215745 21.256059
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 36% -- -- 34% 34%
========= ========= ========= ========= =========
</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.
23
<PAGE> 24
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
MULTIPLE PAYMENT CONTRACTS AND FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
FIDVIPHI FIDVIPOV FIDVIPAM FIDVIPCON FIDVIPGROP
-------- -------- -------- --------- ----------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $23.588786 15.324813 18.169993 13.356323 10.000000
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.882562 1.332926 2.219812 .411003 .000000
---------- --------- --------- --------- ---------
Unrealized gain (loss) 2.267847 .436152 1.518239 2.801162 .997084
---------- --------- --------- --------- ---------
Asset charges (.204189) (.134473) (.160388) (.119788) (.039066)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $27.535006 16.959418 21.747656 16.448700 10.958018
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 17% 11% 20% 23% 10%(b)
========== ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 $20.852993 13.645033 15.982529 11.099135 **
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.902180 .335875 1.051899 .104631 --
---------- --------- --------- --------- ---------
Unrealized gain (loss) 1.012148 1.459385 1.270941 2.248711 --
---------- --------- --------- --------- ---------
Asset charges (.178535) (.115480) (.135376) (.096154) --
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $23.588786 15.324813 18.169993 13.356323 --
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 13% 12% 14% 20% --
========== ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 $17.428943 12.540728 13.774855 10.000000 **
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.262495 .095965 .289466 .143118 --
---------- --------- --------- --------- ---------
Unrealized gain (loss) 2.316172 1.111417 2.035460 .998657 --
---------- --------- --------- --------- ---------
Asset charges (.154617) (.103077) (.117252) (.042640) --
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $20.852993 13.645033 15.982529 11.099135 --
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 20% 9% 16% 11%(b) --
========== ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
MSEMMKT NSATCAPAP NSATGVTBD NSATMYMKT NSATSMCO
------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 10.000000 18.410667 15.383251 12.214743 13.915643
-------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .381254 .749108 .983193 .640005 .442290
-------- --------- --------- --------- ---------
Unrealized gain (loss) (.510280) 5.577539 .496554 .000000 1.962570
-------- --------- --------- --------- ---------
Asset charges (.037225) (.173568) (.127092) (.100447) (.120632)
-------- --------- --------- --------- ---------
Ending unit value - Dec. 31 9.833749 24.563746 16.735906 12.754301 16.199871
-------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) (2)%(b) 33% 9% 4% 16%
======== ========= ========= ========== =========
1996
Beginning unit value - Jan. 1 ** 14.713230 14.984933 11.714295 11.420759
-------- --------- --------- --------- ---------
Reinvested capital gains
and dividends -- .766553 .930103 .596995 .133983
-------- --------- --------- --------- ---------
Unrealized gain (loss) -- 3.061949 (.412550) .000000 2.463983
-------- --------- --------- --------- ---------
Asset charges -- (.131065) (.119235) (.096547) (.103082)
-------- --------- --------- --------- ---------
Ending unit value - Dec. 31 -- 18.410667 15.383251 12.214743 13.915643
-------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) -- 25% 3% 4% 22%
======== ========= ========= ========== =========
1995
Beginning unit value - Jan. 1 ** 11.465403 12.720514 11.176411 10.000000
-------- --------- --------- --------- ---------
Reinvested capital gains
and dividends -- .653781 .903001 .629782 .017475
-------- --------- --------- --------- ---------
Unrealized gain (loss) -- 2.696528 1.472503 .000000 1.418968
-------- --------- --------- --------- ---------
Asset charges -- (.102482) (.111085) (.091898) (.015684)
-------- --------- --------- --------- ---------
Ending unit value - Dec. 31 -- 14.713230 14.984933 11.714295 11.420759
-------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) -- 28% 18% 5% 14%(b)
======== ========= ========= ========== =========
</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.
24
<PAGE> 25
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
MULTIPLE PAYMENT CONTRACTS AND FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
NSATTOTRE NBAMTGRO NBAMTLMAT NBAMTPART OPPBDFD
--------- -------- --------- --------- -------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $21.988773 17.282005 13.551318 17.469360 15.764821
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.284328 1.519798 .799524 .868124 1.051063
---------- --------- --------- --------- ---------
Unrealized gain (loss) 5.164704 3.476793 .110278 4.571636 .400626
---------- --------- --------- --------- ---------
Asset charges (.204402) (.161393) (.111432) (.163069) (.130076)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $28.233403 22.117203 14.349688 22.746051 17.086434
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 28% 28% 6% 30% 8%
========== ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 $18.192762 15.962482 13.096811 13.591346 15.164813
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.217547 1.448641 1.102543 .554011 .975830
---------- --------- --------- --------- ---------
Unrealized gain (loss) 2.737018 .003774 (.542247) 3.446498 (.253799)
---------- --------- --------- --------- ---------
Asset charges (.158554) (.132892) (.105789) (.122495) (.122023)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $21.988773 17.282005 13.551318 17.469360 15.764821
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 21% 8% 3% 29% 4%
========== ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 $14.205723 12.214794 11.900389 10.038887 13.065574
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends 1.413734 .432461 .661221 .082096 .902009
---------- --------- --------- --------- ---------
Unrealized gain (loss) 2.703396 3.432609 .635177 3.565899 1.310232
---------- --------- --------- --------- ---------
Asset charges (.130091) (.117382) (.099976) (.095536) (.113002)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $18.192762 15.962482 13.096811 13.591346 15.164813
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 28% 31% 10% 35% 16%
========== ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
OPPGISEC OPPGRO OPPMULT STOPP2 STDISC2
-------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 13.487753 10.000000 18.446363 21.575419 16.514861
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .171449 .000000 1.424675 2.199285 .000000
--------- --------- --------- --------- ---------
Unrealized gain (loss) 2.844659 .491618 1.740590 3.271150 1.874039
--------- --------- --------- --------- ---------
Asset charges (.123099) (.039023) (.160674) (.194117) (.139755)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 16.380762 10.452595 21.450954 26.851737 18.249145
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 21% 5%(b) 16% 24% 11%
========= ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 11.542134 ** 16.100377 18.408627 16.514850
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .000000 -- 1.226905 .866384 3.367146
--------- --------- --------- --------- ---------
Unrealized gain (loss) 2.045080 -- 1.256649 2.458870 (.3.238459)
--------- --------- --------- --------- ---------
Asset charges (.099461) -- (.137568) (.158462) (.128676)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 13.487753 -- 18.446363 21.575419 16.514861
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 17% -- 15% 17% 0%
========= ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 11.379737 ** 13.372968 14.748256 12.307607
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .299595 -- 1.079776 .764407 .215562
--------- --------- --------- --------- ---------
Unrealized gain (loss) (.045711) -- 1.766931 3.027469 4.106245
--------- --------- --------- --------- ---------
Asset charges (.091487) -- (.119298) (.131505) (.114564)
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 11.542134 -- 16.100377 18.408627 16.514850
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 1% -- 20% 25% 34%
========= ========= ========= ========= =========
</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.
25
<PAGE> 26
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
MULTIPLE PAYMENT CONTRACTS AND FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
STINTSTK2 VEWRLDBD VEWRLDEMKT VEWRLDHAS MSRESEC
--------- -------- ---------- --------- -------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $11.208230 13.479157 10.078948 18.284590 15.045195
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .471812 .436884 .040323 .797803 2.048475
---------- --------- --------- --------- ---------
Unrealized gain (loss) (1.974108) (.118284) (1.191572) (1.099846) 1.165854
---------- --------- --------- --------- ---------
Asset charges (.090179) (.106758) (.089392) (.148067) (.129203)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $ 9.615755 13.690999 8.838307 17.834480 18.130321
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) (14)% 2% (12)% (2)% 21%
========== ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 $10.236021 13.253457 10.000000 15.612002 10.792212
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .051144 .361660 .000000 .331277 .289441
---------- --------- --------- --------- ---------
Unrealized gain (loss) 1.009533 (.030793) .080699 2.482492 4.059026
---------- --------- --------- --------- ---------
Asset charges (.088468) (.105167) (.001751) (.141181) (.095484)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $11.208230 13.479157 10.078948 18.284590 15.045195
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 9% 2% 1%(b) 17% 39%
========== ========= ========= ========= =========
1995
Beginning unit value - Jan. 1 $10.000000 11.388987 ** 14.178501 10.000000
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .041121 .923751 -- .140115 .092168
---------- --------- --------- --------- ---------
Unrealized gain (loss) .209625 1.041904 -- 1.410450 .740443
---------- --------- --------- --------- ---------
Asset charges (.014725) (.101185) -- (.117064) (.040399)
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $10.236021 13.253457 -- 15.612002 10.792212
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 2%(b) 16% -- 10% 8%(b)
========== ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
WPINTEQ WPPVENCAP WPSMCOGR
------- --------- --------
<S> <C> <C> <C>
1997
Beginning unit value - Jan. 1 11.660648 10.164897 14.080553
--------- --------- ---------
Reinvested capital gains
and dividends .724094 .001654 .000000
--------- --------- ---------
Unrealized gain (loss) (.979169) 1.347681 2.190720
--------- --------- ---------
Asset charges (.098913) (.085426) (.116946)
--------- --------- ---------
Ending unit value - Dec. 31 11.306660 11.428806 16.154327
--------- --------- ---------
Percentage increase (decrease)
in unit value*(a) (3)% 12% 15%
========= ========= =========
1996
Beginning unit value - Jan. 1 10.687672 ** 12.461074
--------- --------- ---------
Reinvested capital gains
and dividends .227366 -- .000000
--------- --------- ---------
Unrealized gain (loss) .836487 -- 1.727810
--------- --------- ---------
Asset charges (.090877) -- (.108331)
--------- --------- ---------
Ending unit value - Dec. 31 11.660648 -- 14.080553
--------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 9% -- 13%
========= ========= =========
1995
Beginning unit value - Jan. 1 10.000000 ** 10.000000
--------- --------- ---------
Reinvested capital gains
and dividends .077521 == .000000
--------- --------- ---------
Unrealized gain (loss) .651025 -- 2.504833
--------- --------- ---------
Asset charges (.040874) -- (.043759)
--------- --------- ---------
Ending unit value - Dec. 31 10.687672 -- 12.461074
--------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 7%(b) -- 25%(b)
========= ========= =========
</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.
26
<PAGE> 27
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
MODIFIED SINGLE PREMIUM AND LAST SURVIVOR FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
ACVPBAL ACVPCAPAP ACVPINT ACVPVALUE DRYSRGRO
------- --------- ------- --------- --------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 $10.931147 9.118427 10.773558 10.145455 11.180091
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .616626 .184328 .370567 .154914 .462754
---------- --------- --------- --------- ---------
Unrealized gain (loss) 1.111263 (.481377) 1.637060 2.491218 2.716269
---------- --------- --------- --------- ---------
Asset charges .000000 .000000 .000000 .000000 .000000
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $12.659036 8.821378 12.781185 12.791587 14.359114
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 16% (3)% 19% 26% 28%
========== ========= ========= ========= =========
1996
Beginning unit value - Jan. 1 $10.000000 10.000000 10.000000 ** 10.000000
---------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .122861 .000000 .224735 -- .482403
---------- --------- --------- --------- ---------
Unrealized gain (loss) .808286 (.881573) .548823 -- .697688
---------- --------- --------- --------- ---------
Asset charges .000000 .000000 .000000 -- .000000
---------- --------- --------- --------- ---------
Ending unit value - Dec. 31 $10.931147 9.118427 10.773558 -- 11.180091
---------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 9%(b) (9)%(b) 8%(b) -- 12%(b)
========== ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
DRYSTKIX DRYCAPAP DRYGRINC FIDVIPEI FIDVIPGR
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
1997
Beginning unit value - Jan. 1 11.459856 10.000000 9.989781 10.790149 10.446167
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .663632 .084913 .960475 1.113391 .385777
--------- --------- --------- --------- ---------
Unrealized gain (loss) 3.113170 .169378 .658959 1.919441 2.067042
--------- --------- --------- --------- ---------
Asset charges .000000 .000000 .000000 .000000 .000000
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 15.236658 10.254291 11.609215 13.822981 12.898986
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 33% 3%(b) 16% 28% 23%
========= ========= --------- ========= =========
1996
Beginning unit value - Jan. 1 10.000000 ** ** 10.000000 10.000000
--------- --------- --------- --------- ---------
Reinvested capital gains
and dividends .358216 -- -- .000000 .000000
--------- --------- --------- --------- ---------
Unrealized gain (loss) 1.101640 -- -- .790149 .446167
--------- --------- --------- --------- ---------
Asset charges .000000 -- -- .000000 .000000
--------- --------- --------- --------- ---------
Ending unit value - Dec. 31 11.459856 -- -- 10.790149 10.446167
--------- --------- --------- --------- ---------
Percentage increase (decrease)
in unit value*(a) 15%(b) -- -- 8%(b) 4%(b)
========= ========= --------- ========= =========
</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.
27
<PAGE> 28
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
MODIFIED SINGLE PREMIUM AND LAST SURVIVOR FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
FIDVIPHI FIDVIPOV FIDVIPAM FIDVIPCON FIDVIPGROP
------------ ------------ ------------ ------------ ------------
1997
<S> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $ 10.830462 10.668178 11.022140 11.249999 10.000000
------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ........... .865053 .928652 1.347657 .346467 .000000
------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) ..... 1.048279 .304062 .928456 2.369455 .998857
------------ ------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 .000000 .000000 .000000
------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 12.743794 11.900892 13.298253 13.965921 10.998857
------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ....... 18% 12% 21% 24% 10%(b)
============ ============ ============ ============ ============
1996
Beginning unit value - Jan. 1 $ 10.000000 10.000000 10.000000 10.000000 **
------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ........... .000000 .000000 .000000 .000000 --
------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) ..... .830462 .668178 1.022140 1.249999 --
------------ ------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 .000000 .000000 --
------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 10.830462 10.668178 11.022140 11.249999 --
------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ....... 8%(b) 7%(b) 10%(b) 12%(b) --
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MSEMMKT NSATCAPAP NSATGVTBD NSATMYMKT NSATSMCO
------------ ------------ ------------ ------------ ------------
1997
<S> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 10.000000 11.610340 10.679205 10.339005 10.524418
------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ........... .382570 .475750 .685934 .543763 .337176
------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) ..... (.512121) 3.528857 .346383 .000000 1.488751
------------ ------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 .000000 .000000 .000000
------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 9.870449 15.614947 11.711522 10.882768 12.350345
------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ....... (1)%(b) 34% 10% 5% 17%
============ ============ ============ ============ ============
1996
Beginning unit value - Jan. 1 ** 10.000000 10.000000 10.000000 10.000000
------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ........... -- .445367 .489314 .339005 .095576
------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) ..... -- 1.164973 .189891 .000000 .428842
------------ ------------ ------------ ------------ ------------
Asset charges .............. -- .000000 .000000 .000000 .000000
------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 -- 11.610340 10.679205 10.339005 10.524418
------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ....... -- 16%(b) 7%(b) 3%(b) 5%(b)
============ ============ ============ ============ ============
</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.
28
<PAGE> 29
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
MODIFIED SINGLE PREMIUM AND LAST SURVIVOR FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
NSATTOTRE NBAMTGRO NBAMTLMAT NBAMTPART OPPBDFD
------------ ------------ ------------ ------------ ------------
1997
<S> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $ 11.444877 9.869834 10.477247 11.476324 10.644626
------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ............ .673155 .869066 .618940 .571031 .712931
------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) ..... 2.695010 1.993730 .087392 3.015326 .272077
------------ ------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 .000000 .000000 .000000
------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 14.813042 12.732630 11.183579 15.062681 11.629634
------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ........ 29% 29% 7% 31% 9%
============ ============ ============ ============ ============
1996
Beginning unit value - Jan. 1 $ 10.000000 10.000000 10.000000 10.000000 10.000000
------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ............ .580169 .000000 .000000 .000000 .479143
------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) ..... .864708 (.130166) .477247 1.476324 .165483
------------ ------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 .000000 .000000 .000000
------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 11.444877 9.869834 10.477247 11.476324 10.644626
------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ........ 14%(b) (1)%(b) 5%(b) 15%(b) 6%(b)
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
OPPGISEC OPPGRO OPPMULT STOPP2 STDISC2
------------ ------------ ------------ ------------ ------------
1997
<S> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 10.833847 10.000000 10.937578 10.766829 9.884557
------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ............ .137952 .000000 .847553 1.099641 .000000
------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) ..... 2.291427 .491590 1.036084 1.640956 1.125745
------------ ------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 .000000 .000000 .000000
------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 13.263226 10.491590 12.821215 13.507426 11.010302
------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ........ 22% 5%(b) 17% 25% 11%
============ ============ ============ ============ ============
1996
Beginning unit value - Jan. 1 10.000000 ** 10.000000 10.000000 10.000000
------------ ------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ............ .000000 -- .402281 .045100 .520758
------------ ------------ ------------ ------------ ------------
Unrealized gain (loss) ..... .833847 -- .535297 .721729 (.636201)
------------ ------------ ------------ ------------ ------------
Asset charges .............. .000000 -- .000000 .000000 .000000
------------ ------------ ------------ ------------ ------------
Ending unit value - Dec. 31 10.833847 -- 10.937578 10.766829 9.884557
------------ ------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ........ 8%(b) -- 9%(b) 8%(b) (1)%(b)
============ ============ ============ ============ ============
</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.
29
<PAGE> 30
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-2
MODIFIED SINGLE PREMIUM AND LAST SURVIVOR FLEXIBLE PREMIUM CONTRACTS
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
STINTSTK2 VEWRLDBD VEWRLDEMKT VEWRLDHAS
------------ ------------ ------------ ------------
1997
<S> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $ 10.054422 10.516764 10.080710 10.056004
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ............ .424202 .341084 .040355 .439048
------------ ------------ ------------ ------------
Unrealized gain (loss) ..... (1.783398) (.089997) (1.210156) (.607766)
------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 .000000 .000000
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 8.695226 10.767851 8.910909 9.887286
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ........ (14)% 2% (12)% (2)%
============ ============ ============ ============
1996
Beginning unit value - Jan. 1 $ 10.000000 10.000000 ** 10.000000
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ............ .045738 .280847 -- .181335
------------ ------------ ------------ ------------
Unrealized gain (loss) ..... .008684 .235917 -- (.125331)
------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 -- .000000
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 $ 10.054422 10.516764 -- 10.056004
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ........ 1%(b) 5%(b) -- 1%(b)
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MSRESEC WPINTEQ WPPVENCAP WPSMCOGR
------------ ------------ ------------ ------------
1997
<S> <C> <C> <C> <C>
Beginning unit value - Jan. 1 13.673840 9.935018 10.166668 9.827590
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ............ 1.875805 .621718 .001667 .000000
------------ ------------ ------------ ------------
Unrealized gain (loss) ..... 1.060374 (.845909) 1.354244 1.537919
------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 .000000 .000000
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 16.610019 9.710827 11.522579 11.365509
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ........ 21% (2)% 13% 16%
============ ============ ============ ============
1996
Beginning unit value - Jan. 1 10.000000 10.000000 ** 10.000000
------------ ------------ ------------ ------------
Reinvested capital gains
and dividends ............ .255666 .193639 -- .000000
------------ ------------ ------------ ------------
Unrealized gain (loss) ..... 3.418174 (.258621) -- (.172410)
------------ ------------ ------------ ------------
Asset charges .............. .000000 .000000 -- .000000
------------ ------------ ------------ ------------
Ending unit value - Dec. 31 13.673840 9.935018 -- 9.827590
------------ ------------ ------------ ------------
Percentage increase (decrease)
in unit value*(a) ........ 37%(b) (1)%(b) (2)%(b)
============ ============ ============ ============
</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.
See note 7.
30
<PAGE> 31
Independent Auditors' Report
TheBoard of Directors of Nationwide Life Insurance Company and Contract Owners
of Nationwide VLI Separate Account-2:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide VLI Separate Account-2 as of December 31,
1997, 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 include confirmation of securities
owned as of December 31, 1997, 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-2 as of December 31, 1997, and the
results of its operations and its changes in contract owners' equity and
schedules of changes in unit value for each of the years in the three year
period then ended in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
February 6, 1998
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NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
