<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VA SEPARATE ACCOUNT-A
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1999
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
FHL-108-W (6/99)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life and Annuity Insurance Company, we are
pleased to present the 1999 semi-annual report of the Nationwide VA
Separate Account-A.
Equity investments performed well during the first half of 1999 with
the major market indices showing double-digit gains. Fixed income
investments did not fare as well during this period in the face of
the Federal Reserve's inflation cautiousness. The Fed is mindful of
the resilient U.S. economy and the increasingly tight labor pool
that portends future wage inflation. Accordingly, we have seen a
ratcheting-up of short-term interest rates to dampen the momentum of
the current expansion. How aggressively the Fed may react to the
perceived inflation threat only adds uncertainty to the already
jittery equity markets. Over the long term, however, a slower but
sustainable rate of growth, with low inflation, provides a favorable
environment for further advances in financial assets.
At mid-year, we are pleased to report that all the mission-critical
systems used to service our variable annuity and variable life
business have been internally inventoried, assessed and tested as
being Year 2000 compliant. We are currently contacting our critical
business partners to determine if they will be Year 2000 compliant.
Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure
that Nationwide Financial will be able to continue to serve your
financial needs into the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve
your financial planning and retirement savings goals. You have our
commitment to provide the consistent, high quality service you
expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 19, 1999
2
<PAGE> 3
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Assets:
Investments at market value:
American Century VP - American Century VP Advantage (ACVPAdv)
<S> <C>
1,871,232 shares (cost $10,997,660) ...................... $ 12,181,718
Federated IS - Federated American Leaders Fund II (FedAmLead)
1,595 shares (cost $27,320) .............................. 34,998
Federated IS - Federated High Income Bond Fund II (FedHiInc)
14,619 shares (cost $151,176) ............................ 150,140
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
8,939 shares (cost $193,902) ............................. 243,599
Fidelity VIP - Growth Portfolio (FidVIPGr)
2,469,119 shares (cost $70,461,462) ...................... 112,912,800
Fidelity VIP - Overseas Portfolio (FidVIPOv)
1,417 shares (cost $28,336) .............................. 29,470
MFS(R) VIT - Emerging Growth Series (MFSEmGrSe)
7,600 shares (cost $111,959) ............................. 184,070
MFS(R) VIT - Total Return Series (MFSTotReSe)
1,582 shares (cost $23,522) .............................. 28,633
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
670,603 shares (cost $13,020,998) ........................ 19,903,498
Nationwide SAT - Government Bond Fund (NSATGvtBd)
2,397,759 shares (cost $26,816,866) ...................... 26,687,058
Nationwide SAT - Money Market Fund (NSATMyMkt)
4,095,867 shares (cost $4,095,867) ....................... 4,095,867
Nationwide SAT - Total Return Fund (NSATTotRe)
4,360,419 shares (cost $53,771,330) ...................... 88,472,910
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
1,596,147 shares (cost $24,544,196) ...................... 25,506,429
------------
Total investments ..................................... 290,431,190
Accounts receivable ............................................ 530,193
-----------
Total assets .......................................... 290,961,383
ACCOUNTS PAYABLE .................................................. 560
-----------
CONTRACT OWNERS' EQUITY ........................................... $290,960,823
===========
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
-------- --------- ---------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
VA contracts:
American Century VP - American Century
VP Advantage:
Tax qualified ............................... 386,269 $ 18.680423 $ 7,215,668 3%
Non-tax qualified............................ 261,152 18.680423 4,878,430 3%
Initial Funding by Depositor (note 1a)....... 25,000 19.938436 498,461
Fidelity VIP - Growth Portfolio:
Tax qualified................................ 1,780,884 37.272654 66,378,273 14%
Non-tax qualified............................ 1,244,719 37.272654 46,393,981 14%
Nationwide SAT - Capital Appreciation Fund:
Tax qualified................................ 330,375 34.047394 11,248,408 11%
Non-tax qualified............................ 254,211 34.047394 8,655,222 11%
Nationwide SAT - Government Bond Fund:
Tax qualified................................ 672,894 20.554497 13,830,998 (3)%
Non-tax qualified............................ 625,327 20.554497 12,853,282 (3)%
Nationwide SAT - Money Market Fund:
Tax qualified................................ 141,214 15.013733 2,120,149 2%
Non-tax qualified............................ 133,091 15.013733 1,998,193 2%
Nationwide SAT - Total Return Fund:
Tax qualified................................ 1,320,682 37.518448 49,549,939 10%
Non-tax qualified............................ 1,034,682 37.518448 38,819,663 10%
Neuberger & Berman AMT - Balanced Portfolio:
Tax qualified................................ 709,779 19.891474 14,118,551 2%
Non-tax qualified............................ 569,637 19.891474 11,330,920 2%
VA-II Eagle Choice contracts:
Federated IS - Federated American
Leaders Fund II:
Non-tax qualified............................ 1,743 20.078820 34,997 12%
Federated IS- Federated High Income
Bond Fund II:
Non-tax qualified............................ 11,514 13.040223 150,145 2%
Fidelity VIP - Equity-Income Portfolio:
Tax qualified................................ 870 23.602776 20,534 12%
Non-tax qualified............................ 9,450 23.602776 223,046 12%
Fidelity VIP - Overseas Portfolio:
Non-tax qualified............................ 2,025 14.554197 29,472 7%
MFS(R) VIT - Emerging Growth Series:
Non-tax qualified............................ 8,948 20.572331 184,081 12%
MFS(R) VIT - Total Return Series:
Non-tax qualified............................ 1,840 15.557421 28,626 4%
======== =========
Reserves for annuity contracts in payout phase:
Tax qualified................................ 308,244
Non-tax qualified............................ 91,540
-----------
$ 290,960,823
===========
</TABLE>
* The period return does not include contract charges satisfied by surrendering
units.
See accompanying notes to financial statements.
4
<PAGE> 5
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACVPADV
------------------------------- --------------------------------
1999 1998 1999 1998
------------ ------------- ------------- -------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .......................... $ 2,256,759 2,928,751 368,099 292,829
Mortality, expense and administration
charges (note 2):
VA ...................................... (1,876,177) (1,765,998) (82,747) (84,764)
VA II Convertible ....................... (4,469) (3,709) -- --
------------- ------------- ------------- -------------
Net investment activity ..................... 376,113 1,159,044 285,352 208,065
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ......... 37,526,427 18,001,906 2,126,728 968,980
Cost of mutual fund shares sold ............... (26,030,793) (13,450,703) (1,695,102) (785,956)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ......... 11,495,634 4,551,203 431,626 183,024
Change in unrealized gain (loss) on investments (784,127) 11,795,435 (1,191,345) (233,519)
------------- ------------- ------------- -------------
Net gain (loss) on investments .............. 10,711,507 16,346,638 (759,719) (50,495)
------------- ------------- ------------- -------------
Reinvested capital gains ...................... 13,388,266 16,806,720 873,779 1,101,845
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 24,475,886 34,312,402 399,412 1,259,415
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 3,408,106 6,428,181 160,498 158,043
Transfers between funds ....................... -- -- 39,039 --
Redemptions ................................... (28,239,166) (11,336,813) (1,431,017) (719,149)
Annuity benefits .............................. (16,006) (5,234) (2,709) --
Annual contract maintenance charge (note 2) ... (149,347) (149,969) (9,117) (9,653)
Contingent deferred sales charges (note 2) .... (256,428) (145,162) (13,888) (8,255)
Adjustments to maintain reserves .............. (2,734) 1,951 (9,415) (203,841)
------------- ------------- ------------- -------------
Net equity transactions ................... (25,255,575) (5,207,046) (1,266,608) (782,855)
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (779,689) 29,105,356 (867,196) 476,560
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 291,740,512 256,902,547 13,548,557 13,392,281
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 290,960,823 286,007,903 12,681,361 13,868,841
============= ============= ============= =============
</TABLE>
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FEDAMLEAD FEDHIINC
-------------------------------- --------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .......................... 292 134 11,613 2,448
Mortality, expense and administration
charges (note 2):
VA ...................................... -- -- -- --
VA II Convertible ....................... (230) (205) (1,054) (909)
------------- ------------- ------------- -------------
Net investment activity ..................... 62 (71) 10,559 1,539
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ......... 232 211 1,062 912
Cost of mutual fund shares sold ............... (164) (155) (993) (821)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ......... 68 56 69 91
Change in unrealized gain (loss) on investments 578 2,125 (8,837) 1,250
------------- ------------- ------------- -------------
Net gain (loss) on investments .............. 646 2,181 (8,768) 1,341
------------- ------------- ------------- -------------
Reinvested capital gains ...................... 2,940 1,720 996 664
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 3,648 3,830 2,787 3,544
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. -- -- -- 42,431
Transfers between funds ....................... -- -- -- --
Redemptions ................................... -- -- -- --
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... -- -- -- --
Adjustments to maintain reserves .............. (3) (2) (1) 4
------------- ------------- ------------- -------------
Net equity transactions ................... (3) (2) (1) 42,435
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 3,645 3,828 2,786 45,979
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 31,352 27,034 147,359 104,334
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 34,997 30,862 150,145 150,313
============= ============= ============= =============
(Continued)
</TABLE>
5
<PAGE> 6
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPEI FIDVIPGR
------------------------------ ------------------------------
1999 1998 1999 1998
------------- ------------ ------------ --------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .......................... $ 3,250 2,235 187,709 426,238
Mortality, expense and administration
charges (note 2):
VA ...................................... -- -- (719,580) (586,553)
VA II Convertible ....................... (1,590) (1,351) -- --
------------ ------------ ------------ ------------
Net investment activity ..................... 1,660 884 (531,871) (160,315)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 1,594 1,359 10,499,551 4,249,921
Cost of mutual fund shares sold ............... (1,219) (1,075) (5,463,993) (2,472,621)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 375 284 5,035,558 1,777,300
Change in unrealized gain (loss) on investments 16,716 5,689 (2,188,439) 2,376,895
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 17,091 5,973 2,847,119 4,154,195
------------ ------------ ------------ ------------
Reinvested capital gains ...................... 7,183 7,955 11,802,217 11,149,500
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 25,934 14,812 14,117,465 15,143,380
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. -- 42,431 1,120,167 1,800,857
Transfers between funds ....................... -- -- 630,986 --
Redemptions ................................... -- -- (9,499,161) (3,191,767)
Annuity benefits .............................. -- -- (6,040) (2,255)
Annual contract maintenance charge (note 2) ... -- -- (56,374) (53,487)
Contingent deferred sales charges (note 2) .... -- -- (99,232) (41,284)
Adjustments to maintain reserves .............. (2) (5) 4,178 (920,486)
------------ ------------ ------------ ------------
Net equity transactions ................... (2) 42,426 (7,905,476) (2,408,422)
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 25,932 57,238 6,211,989 12,734,958
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 217,648 159,806 106,705,766 83,670,246
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 243,580 217,044 112,917,755 96,405,204
============ ============ ============ ============
</TABLE>
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPOV MFSEMGRSE
------------------------------ -------------------------------
1999 1998 1999 1998
------------ ------------ ------------ -------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .......................... 424 488 -- --
Mortality, expense and administration
charges (note 2):
VA ...................................... -- -- -- --
VA II Convertible ....................... (197) (191) (1,204) (872)
------------ ------------ ------------ ------------
Net investment activity ..................... 227 297 (1,204) (872)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 201 198 1,207 890
Cost of mutual fund shares sold ............... (175) (171) (730) (666)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 26 27 477 224
Change in unrealized gain (loss) on investments 1,084 1,981 20,483 19,139
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 1,110 2,008 20,960 19,363
------------ ------------ ------------ ------------
Reinvested capital gains ...................... 684 1,439 -- 1,215
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 2,021 3,744 19,756 19,706
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. -- -- -- 36,369
Transfers between funds ....................... -- -- -- --
Redemptions ................................... -- -- -- --
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... -- -- -- --
Adjustments to maintain reserves .............. (1) (4) 2 3
------------ ------------ ------------ ------------
Net equity transactions ................... (1) (4) 2 36,372
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 2,020 3,740 19,758 56,078
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 27,452 24,693 164,323 93,845
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 29,472 28,433 184,081 149,923
============ ============ ============ ============
</TABLE>
6
<PAGE> 7
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
MFSTOTRESE NSATCAPAP
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .................. $ 500 360 51,916 72,116
Mortality, expense and administration
charges (note 2):
VA .............................. - - (120,598) (101,768)
VA II Convertible ............... (194) (181) - -
-------------- -------------- -------------- --------------
Net investment activity.............. 306 179 (68,682) (29,652)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 196 188 2,642,562 534,054
Cost of mutual fund shares sold........ (149) (150) (1,078,995) (239,801)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 47 38 1,563,567 294,253
Change in unrealized gain (loss) on investments (77) 1,322 489,216 2,315,792
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... (30) 1,360 2,052,783 2,610,045
-------------- -------------- -------------- --------------
Reinvested capital gains............... 928 423 - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 1,204 1,962 1,984,101 2,580,393
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... - - 468,917 828,344
Transfers between funds................ - - 107,694 -
Redemptions............................ - - (1,518,018) (634,992)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - (8,442) (7,102)
Contingent deferred sales charges (note 2) - - (13,032) (5,722)
Adjustments to maintain reserves....... (1) (2) 141 1,866,719
-------------- -------------- -------------- --------------
Net equity transactions............ (1) (2) (962,740) 2,047,247
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 1,203 1,960 1,021,361 4,627,640
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 27,423 24,759 18,882,269 13,192,584
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 28,626 26,719 19,903,630 17,820,224
============== ============== ============== ==============
</TABLE>
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATGVTBD NSATMYMKT
------------------------------ -----------------------------
1999 1998 1999 1998
------------- -------------- -------------- --------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .................. 748,218 906,817 104,216 97,654
Mortality, expense and administration
charges (note 2):
VA .............................. (188,289) (208,329) (29,785) (24,427)
VA II Convertible ............... - - - -
------------- -------------- -------------- --------------
Net investment activity.............. 559,929 698,488 74,431 73,227
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 4,927,546 2,814,657 4,815,284 3,302,676
Cost of mutual fund shares sold........ (4,960,488) (2,778,037) (4,815,284) (3,302,676)
------------- -------------- -------------- --------------
Realized gain (loss) on investments.. (32,942) 36,620 - -
Change in unrealized gain (loss) on investments (1,361,253) 320,845 - -
------------- -------------- -------------- --------------
Net gain (loss) on investments....... (1,394,195) 357,465 - -
------------- -------------- -------------- --------------
Reinvested capital gains............... - - - -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. (834,266) 1,055,953 74,431 73,227
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 339,190 953,007 90,404 171,230
Transfers between funds................ (418,518) - 178,597 -
Redemptions............................ (3,719,807) (1,857,894) (854,310) (376,663)
Annuity benefits....................... (2,125) (2,101) - -
Annual contract maintenance charge (note 2) (14,328) (15,367) (2,796) (1,809)
Contingent deferred sales charges (note 2) (22,089) (23,555) (10,521) (5,677)
Adjustments to maintain reserves....... (52) (298,083) (15) 159,248
------------- -------------- -------------- --------------
Net equity transactions............ (3,837,730) (1,243,993) (598,640) (53,671)
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (4,671,996) (188,040) (524,209) 19,556
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 31,359,014 32,302,892 4,642,551 3,651,028
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 26,687,018 32,114,852 4,118,342 3,670,584
============= ============== ============== ==============
(Continued)
</TABLE>
7
<PAGE> 8
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATTOTRE NBAMTBAL
------------------------------- -------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .......................... $ 334,832 480,780 445,690 646,652
Mortality, expense and administration
charges (note 2):
VA ...................................... (565,579) (575,782) (169,599) (184,375)
VA II Convertible ....................... -- -- -- --
------------ ------------ ------------ ------------
Net investment activity ..................... (230,747) (95,002) 276,091 462,277
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 9,374,382 4,556,151 3,135,882 1,571,709
Cost of mutual fund shares sold ............... (4,973,240) (2,441,074) (3,040,261) (1,427,500)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 4,401,142 2,115,077 95,621 144,209
Change in unrealized gain (loss) on investments 4,125,256 9,445,604 (687,509) (2,461,688)
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 8,526,398 11,560,681 (591,888) (2,317,479)
------------ ------------ ------------ ------------
Reinvested capital gains ...................... 39,257 -- 660,282 4,541,959
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 8,334,908 11,465,679 344,485 2,686,757
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,018,199 1,860,828 210,732 534,641
Transfers between funds ....................... (87,544) -- (450,254) --
Redemptions ................................... (8,707,022) (3,413,760) (2,509,832) (1,142,588)
Annuity benefits .............................. (3,398) (878) (1,733) --
Annual contract maintenance charge (note 2) ... (42,917) (45,663) (15,373) (16,888)
Contingent deferred sales charges (note 2) .... (70,390) (43,784) (27,276) (16,885)
Adjustments to maintain reserves .............. 1,652 (304,490) 783 (297,110)
------------ ------------ ------------ ------------
Net equity transactions ................... (7,891,421) (1,947,747) (2,792,954) (938,830)
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 443,487 9,517,932 (2,448,469) 1,747,927
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 88,031,080 82,653,997 27,955,718 27,605,048
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 88,474,567 92,171,929 25,507,249 29,352,975
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
NATIONWIDE VA SEPARATE ACCOUNT-A
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 AND 1998
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
Nationwide VA Separate Account-A (the Account) was established pursuant
to a resolution of the Board of Directors of Nationwide Life and
Annuity Insurance Company (the Company) on May 6, 1987. The Account has
been registered as a unit investment trust under the Investment Company
Act of 1940. On August 21, 1991, the Company transferred to the
Account, 50,000 shares of the American Century VP - American Century VP
Advantage fund for which the Account was credited with 25,000
accumulation units. The value of the accumulation units purchased by
the Company on August 21, 1991 was $250,000.
The Company offers tax qualified and non-tax qualified Individual
Deferred Variable Annuity Contracts through the Account. The primary
distribution for the contracts is through banks and other financial
institutions; however, other distributors may be utilized.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees are offered for purchase.
See note 2 for a discussion of contract expenses.
With certain exceptions, contract owners in either the accumulation or
the payout phase may invest in any of the following funds:
Portfolio of the American Century Variable Portfolios, Inc.
(American Century VP); American Century VP -
American Century VP Advantage (ACVPAdv)
Funds of the Federated Insurance Series (Federated IS) (available
for VA-II Eagle Choice contracts);
Federated IS - Federated American Leaders Fund II (FedAmLead)
Federated IS - Federated High Income Bond Fund II (FedHiInc)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio (FidVIPEI) (available for
VA-II Eagle Choice contracts)
Fidelity VIP - Growth Portfolio (FidVIPGr) (available for VA
contracts)
Fidelity VIP - Overseas Portfolio (FidVIPOv) (available for
VA-II Eagle Choice contracts)
Funds of the MFS(R) Variable Insurance Trust (MFS(R) VIT)
(available for VA-II Eagle Choice contracts);
MFS(R) VIT Emerging Growth Series (MFSEmGrSe)
MFS(R) VIT - Total Return Series (MFSTotReSe)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
(available for VA contracts)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
(available for all contracts) Nationwide SAT Money Market Fund
(NSATMyMkt) (available for all contracts)
Nationwide SAT - Small Company Fund (NSATSmCo) (available for
VA-II Eagle Choice contracts)
Nationwide SAT - Total Return Fund (NSATTotRe) (available for
VA contracts)
Portfolio of the Neuberger &Berman Advisers Management Trust
(Neuberger & Berman AMT) (available for VA contracts);
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
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At June 30, 1999, contract owners have invested in all of the above
funds except the Nationwide SAT - Small Company Fund. The contract
owners' equity is affected by the investment results of each fund,
equity transactions by contract owners and certain contract expenses
(see note 2). 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.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are available as investment options in variable life insurance policies
or variable annuity contracts issued by life insurance companies or, in
some cases, through participation in certain qualified pension or
retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on 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 Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of
such contracts is surrendered, the Company will, with certain exceptions,
deduct from a contract owners' contract value a contingent deferred sales
charge not to exceed 7% of the lesser of purchase payments or the amount
surrendered, such charge declining 1% per year, to 0%, after the purchase
payment has been held in the contract for 84 months. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company.
The following contract charges are deducted by the Company: (a) for the VA
contracts an annual contract maintenance charge of up to $30, dependent
upon contract type and issue date, which is satisfied by surrendering
units; for the VA II Convertible contracts a one-time contract maintenance
charge of up to $50, dependent upon the initial purchase payment and
contract type; and (b) for the VA contracts a mortality risk charge, an
expense risk charge and an administration charge assessed through the daily
unit value calculation equal to an annual rate of 0.80%, 0.45% and 0.05%,
respectively; for the VA II Convertible contracts a mortality risk charge,
an expense risk charge and an administration charge assessed through the
daily unit value calculation equal to an annual rate of 0.80%, 0.45% and
0.15%, respectively. No charges were deducted from the initial funding, or
from earnings thereon.
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(3) 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.
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NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
