<PAGE> 1
[Logo]
Nationwide(R)
NATIONWIDE(R)
VA SEPARATE ACCOUNT-A
ANNUAL REPORT
TO
CONTRACT OWNERS
DECEMBER 31, 1999
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
<PAGE> 2
[Logo]
Nationwide(R)
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[Photo of President Joseph J. Gasper]
PRESIDENT'S MESSAGE
We at Nationwide Life and Annuity Insurance Company are pleased
to bring you the 1999 annual report of the Nationwide VA
Separate Account-A.
During 1999 equity investments extended their spirited advance
to a fifth consecutive year. The S&P 500 was the laggard of the
major indices with a year-over-year change of a respectable
19.53%. The NASDAQ topped the list at over 85% with the other
indices falling into line nearer the lower end of the range.
Fixed earnings investments did not fare as well in the current
environment of rising interest rates.
The U.S. economy remains strong, inflation remains docile and
the available labor pool is incessantly tight. Against this
good-news-bad-news backdrop, the Federal Reserve is increasingly
concerned that recent productivity gains will subside and ignite
wage inflation. To date, the Fed has hiked short-term interest
rates a quarter percentage point on four occasions since last
June. Prospectively, they may well become more aggressive in
their preemptive efforts to dampen economic growth and avoid a
new round of inflation.
We believe some caution may be warranted at this juncture.
Certain market sectors are well extended and may inevitably
retreat to less lofty valuation levels. However, we remain
bullish for the long-term prospects of financial assets. Your
variable insurance contract provides an excellent resource to
help you achieve your long-term retirement savings and financial
planning objectives.
We appreciate your trust in our company and in our investment
products, and we welcome and encourage your feedback.
/s/ Joseph J. Gasper, President
Joseph J. Gasper, President
February 10, 2000
3
<PAGE> 3
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Advantage (ACVPAdv)
1,617,011 shares (cost $9,657,083) ............................... $ 11,642,476
American Century VP - American Century VP Balanced (ACVPBal)
11,080 shares (cost $84,996) ..................................... 86,311
Federated IS - Federated American Leaders Fund II (FedAmLead)
1,584 shares (cost $27,170) ...................................... 32,977
Federated IS - Federated High Income Bond Fund II (FedHiInc)
14,560 shares (cost $149,298) .................................... 149,096
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
8,824 shares (cost $223,312) ..................................... 226,871
Fidelity VIP - Growth Portfolio (FidVIPGr)
2,300,177 shares (cost $67,717,547) .............................. 126,348,709
Fidelity VIP - Overseas Portfolio (FidVIPOv)
1,407 shares (cost $28,162) ...................................... 38,603
MFS(R)VIT - Emerging Growth Series (MFSEmGrSe)
6,900 shares (cost $234,108) ..................................... 261,800
MFS(R)VIT - Total Return Series (MFSTotReSe)
1,571 shares (cost $23,368) ...................................... 27,881
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
625,882 shares (cost $13,443,531) ................................ 16,091,417
Nationwide SAT - Government Bond Fund (NSATGvtBd)
2,043,292 shares (cost $22,720,551) .............................. 22,047,125
Nationwide SAT - Money Market Fund (NSATMyMkt)
5,542,922 shares (cost $5,542,922) ............................... 5,542,922
Nationwide SAT - Total Return Fund (NSATTotRe)
4,013,147 shares (cost $51,895,668) .............................. 75,487,293
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
1,410,974 shares (cost $21,672,491) .............................. 29,475,244
-------------
Total investments ............................................. 287,458,725
Accounts receivable .................................................... 39,136
-------------
Total assets .................................................. 287,497,861
ACCOUNTS PAYABLE .......................................................... 5,832
-------------
CONTRACT OWNERS' EQUITY ................................................... $ 287,492,029
=============
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
---------- ------------ -----------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
VA contracts:
American Century VP - American Century
VP Advantage:
Tax qualified .................................. 332,045 $ 20.524598 $ 6,815,090 13%
Non-tax qualified .............................. 229,539 20.524598 4,711,196 13%
American Century VP - American Century
VP Balanced:
Tax qualified .................................. 4,511 10.579044 47,722 6%(a)
Non-tax qualified .............................. 3,648 10.579044 38,592 6%(a)
Fidelity VIP - Growth Portfolio:
Tax qualified .................................. 1,673,903 44.477104 74,450,358 36%
Non-tax qualified .............................. 1,162,117 44.477104 51,687,599 36%
Nationwide SAT - Capital Appreciation Fund:
Tax qualified .................................. 294,662 31.511115 9,285,128 3%
Non-tax qualified .............................. 215,996 31.511115 6,806,275 3%
Nationwide SAT - Government Bond Fund:
Tax qualified .................................. 566,135 20.383584 11,539,860 (4)%
Non-tax qualified .............................. 515,438 20.383584 10,506,474 (4)%
Nationwide SAT - Money Market Fund:
Tax qualified .................................. 153,537 15.286929 2,347,109 3%
Non-tax qualified .............................. 210,561 15.286929 3,218,831 3%
Nationwide SAT - Total Return Fund:
Tax qualified .................................. 1,184,267 35.991074 42,623,041 6%
Non-tax qualified .............................. 910,449 35.991074 32,768,037 6%
Neuberger & Berman AMT - Balanced Portfolio:
Tax qualified .................................. 635,349 25.832573 16,412,699 32%
Non-tax qualified .............................. 502,717 25.832573 12,986,474 32%
VA-II Eagle Choice contracts:
Federated IS - Federated American
Leaders Fund II:
Non-tax qualified .............................. 1,743 18.918772 32,975 5%
Federated IS- Federated High Income
Bond Fund II:
Non-tax qualified .............................. 11,549 12.910046 149,098 1%
Fidelity VIP - Equity-Income Portfolio:
Tax qualified .................................. 870 22.111001 19,237 5%
Non-tax qualified .............................. 9,391 22.111001 207,644 5%
Fidelity VIP - Overseas Portfolio:
Non-tax qualified .............................. 2,025 19.064716 38,606 41%
MFS(R)VIT - Emerging Growth Series:
Non-tax qualified .............................. 8,182 31.998468 261,811 74%
MFS(R)VIT - Total Return Series:
Non-tax qualified .............................. 1,840 15.148464 27,873 2%
======== ===========
Reserves for annuity contracts in payout phase:
Tax qualified .................................. 336,409
Non-tax qualified .............................. 173,891
-------------
$ 287,492,029
=============
</TABLE>
(a) Non-annualized. The return was computed for the period 5/03/99 (effective
date) through 12/31/99.
(b) The annual return does not include contract charges satisfied by
surrendering units.
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
5
<PAGE> 5
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
Total ACVPAdv ACVPBal
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ 3,255,026 4,323,281 368,099 292,829 -
Mortality, expense and administration
charges (note 2):
VA ......................................... (3,701,193) (3,566,159) (159,932) (169,541) (126)
VA II Convertible .......................... (9,035) (7,761) - - -
-------------- -------------- -------------- -------------- -------------
Net investment activity......................... (455,202) 749,361 208,167 123,288 (126)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold............. 76,066,491 47,150,221 3,996,392 2,219,938 103,952
Cost of mutual fund shares sold................... (52,019,348) (34,852,430) (3,196,791) (1,802,163) (102,763)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments............. 24,047,143 12,297,791 799,601 417,775 1,189
Change in unrealized gain (loss) on investments .. 7,067,797 20,267,908 (390,009) 311,134 1,314
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments.................. 31,114,940 32,565,699 409,592 728,909 2,503
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains.......................... 17,278,993 20,912,139 873,779 1,101,845 -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 47,938,731 54,227,199 1,491,538 1,954,042 2,377
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 5,998,345 10,088,676 307,721 354,994 29,911
Transfers between funds........................... - - 79,277 (481,562) 54,027
Redemptions....................................... (57,494,565) (28,935,591) (3,737,848) (1,643,694) -
Annuity benefits.................................. (47,771) (16,464) (10,076) (1,666) -
Annual contract maintenance charge (note 2) ...... (251,603) (257,516) (13,992) (15,108) (6)
Contingent deferred sales charges (note 2) ....... (401,734) (291,222) (22,851) (13,666) -
Adjustments to maintain reserves.................. 10,114 22,883 438 2,936 -
-------------- -------------- -------------- -------------- -------------
Net equity transactions....................... (52,187,214) (19,389,234) (3,397,331) (1,797,766) 83,932
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... (4,248,483) 34,837,965 (1,905,793) 156,276 86,309
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ 291,740,512 256,902,547 13,548,557 13,392,281 -
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... $ 287,492,029 291,740,512 11,642,764 13,548,557 86,309
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
ACVPBal FedAmLead
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. - 292 134
Mortality, expense and administration
charges (note 2):
VA .......................................... - - -
VA II Convertible ........................... - (462) (412)
-------------- -------------- --------------
Net investment activity.......................... - (170) (278)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.............. - 555 418
Cost of mutual fund shares sold.................... - (406) (311)
-------------- -------------- --------------
Realized gain (loss) on investments.............. - 149 107
Change in unrealized gain (loss) on investments ... - (1,292) 2,772
-------------- -------------- --------------
Net gain (loss) on investments................... - (1,143) 2,879
-------------- -------------- --------------
Reinvested capital gains........................... - 2,940 1,720
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations............. - 1,627 4,321
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.................................. - - -
Transfers between funds............................ - - -
Redemptions........................................ - - -
Annuity benefits................................... - - -
Annual contract maintenance charge (note 2) ....... - - -
Contingent deferred sales charges (note 2) ........ - - -
Adjustments to maintain reserves................... - (6) (3)
-------------- -------------- --------------
Net equity transactions........................ - (6) (3)
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................ - 1,621 4,318
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ......... - 31,352 27,034
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD................ - 32,973 31,352
============== ============== ==============
</TABLE>
6
<PAGE> 6
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FedHIInc FidVIPEI FidVIPGr
------------------------------ ------------------------------ --------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 11,613 2,448 3,250 2,235 187,709
Mortality, expense and administration
charges (note 2):
VA ...................................... - - - - (1,468,461)
VA II Convertible ....................... (2,052) (1,945) (3,163) (2,798) -
-------------- -------------- -------------- -------------- -------------
Net investment activity...................... 9,561 503 87 (563) (1,280,752)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.......... 139,557 1,948 166,346 2,806 20,724,381
Cost of mutual fund shares sold................ (140,369) (1,782) (134,989) (2,271) (10,399,339)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.......... (812) 166 31,357 535 10,325,042
Change in unrealized gain (loss) on investments (8,003) (737) (29,422) 7,490 13,991,386
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............... (8,815) (571) 1,935 8,025 24,316,428
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains....................... 996 664 7,183 7,955 11,802,217
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 1,742 596 9,205 15,417 34,837,893
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. - 42,431 - 42,431 1,980,238
Transfers between funds........................ - - - - 1,718,552
Redemptions.................................... - - - - (18,629,772)
Annuity benefits............................... - - - - (22,358)
Annual contract maintenance charge (note 2) ... - - - - (96,387)
Contingent deferred sales charges (note 2) .... - - - - (144,532)
Adjustments to maintain reserves............... (7) (2) 42 (6) 8,033
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................... (7) 42,429 42 42,425 (15,186,226)
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 1,735 43,025 9,247 57,842 19,651,667
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 147,359 104,334 217,648 159,806 106,705,766
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 149,094 147,359 226,895 217,648 126,357,433
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
FidVIPGr FidVIPOv
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. 426,238 424 488
Mortality, expense and administration
charges (note 2):
VA ......................................... (1,214,243) - -
VA II Convertible .......................... - (425) (376)
-------------- -------------- --------------
Net investment activity......................... (788,005) (1) 112
-------------- -------------- --------------
Proceeds from mutual fund shares sold............. 10,807,056 429 383
Cost of mutual fund shares sold................... (6,175,412) (349) (342)
-------------- -------------- --------------
Realized gain (loss) on investments............. 4,631,644 80 41
Change in unrealized gain (loss) on investments .. 15,101,345 10,392 1,171
-------------- -------------- --------------
Net gain (loss) on investments.................. 19,732,989 10,472 1,212
-------------- -------------- --------------
Reinvested capital gains.......................... 11,149,500 684 1,439
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 30,094,484 11,155 2,763
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 2,737,406 - -
Transfers between funds........................... (1,599,924) - -
Redemptions....................................... (8,019,362) - -
Annuity benefits.................................. (6,308) - -
Annual contract maintenance charge (note 2) ...... (92,392) - -
Contingent deferred sales charges (note 2) ....... (89,886) - -
Adjustments to maintain reserves.................. 11,502 (5) (4)
-------------- -------------- --------------
Net equity transactions....................... (7,058,964) (5) (4)
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 23,035,520 11,150 2,759
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ 83,670,246 27,452 24,693
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... 106,705,766 38,602 27,452
============== ============== ==============
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
MFSEmGrSe MFSTotReSe NSATCapAp
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - - 500 360 110,524
Mortality, expense and administration
charges (note 2):
VA ........................................ - - - - (236,118)
VA II Convertible ......................... (2,542) (1,863) (391) (367) -
-------------- -------------- -------------- -------------- -------------
Net investment activity........................ (2,542) (1,863) 109 (7) (125,594)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold............ 225,536 1,882 393 374 5,882,235
Cost of mutual fund shares sold.................. (101,572) (1,411) (304) (299) (2,533,288)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments............ 123,964 471 89 75 3,348,947
Change in unrealized gain (loss) on investments . (23,937) 34,283 (675) 2,175 (3,745,398)
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments................. 100,027 34,754 (586) 2,250 (396,451)
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains......................... - 1,215 928 423 1,054,838
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 97,485 34,106 451 2,666 532,793
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ - 36,369 - - 738,148
Transfers between funds.......................... - - - - (668,902)
Redemptions...................................... - - - - (3,358,892)
Annuity benefits................................. - - - - -
Annual contract maintenance charge (note 2) ..... - - - - (14,514)
Contingent deferred sales charges (note 2) ...... - - - - (19,493)
Adjustments to maintain reserves................. (1) 3 6 (2) (9)
-------------- -------------- -------------- -------------- -------------
Net equity transactions...................... (1) 36,372 6 (2) (3,323,662)
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 97,484 70,478 457 2,664 (2,790,869)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 164,323 93,845 27,423 24,759 18,882,269
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 261,807 164,323 27,880 27,423 16,091,400
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NSATCapAp NSATGvtBd
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. 132,292 1,378,330 1,706,933
Mortality, expense and administration
charges (note 2):
VA ......................................... (214,106) (348,994) (422,247)
VA II Convertible .......................... - - -
-------------- -------------- --------------
Net investment activity......................... (81,814) 1,029,336 1,284,686
-------------- -------------- --------------
Proceeds from mutual fund shares sold............. 2,729,182 10,134,030 7,141,556
Cost of mutual fund shares sold................... (1,227,260) (10,325,346) (6,953,482)
-------------- -------------- --------------
Realized gain (loss) on investments............. 1,501,922 (191,316) 188,074
Change in unrealized gain (loss) on investments .. 2,064,271 (1,904,871) 708,425
-------------- -------------- --------------
Net gain (loss) on investments.................. 3,566,193 (2,096,187) 896,499
-------------- -------------- --------------
Reinvested capital gains.......................... 523,967 42,637 151,117
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations............ 4,008,346 (1,024,214) 2,332,302
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................. 1,199,816 522,859 1,335,263
Transfers between funds........................... 2,037,217 (1,028,557) 412,520
Redemptions....................................... (1,527,306) (7,706,834) (4,948,454)
Annuity benefits.................................. - (4,178) (4,265)
Annual contract maintenance charge (note 2) ...... (13,152) (26,215) (29,309)
Contingent deferred sales charges (note 2) ....... (15,416) (44,735) (42,231)
Adjustments to maintain reserves.................. 180 (122) 296
-------------- -------------- --------------
Net equity transactions....................... 1,681,339 (8,287,782) (3,276,180)
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............... 5,689,685 (9,311,996) (943,878)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........ 13,192,584 31,359,014 32,302,892
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............... 18,882,269 22,047,018 31,359,014
============== ============== ==============
</TABLE>
8
<PAGE> 8
NATIONWIDE VA SEPARATE ACCOUNT-A
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NSATMyMkt NSATTotRe
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 213,347 221,645 535,248 891,027
Mortality, expense and administration
charges (note 2):
VA ........................................ (59,165) (56,566) (1,091,048) (1,131,746)
VA II Convertible ......................... - - - -
-------------- -------------- -------------- --------------
Net investment activity........................ 154,182 165,079 (555,800) (240,719)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 8,544,103 8,576,339 19,802,446 12,121,959
Cost of mutual fund shares sold.................. (8,544,103) (8,576,339) (10,564,283) (6,698,872)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............ - - 9,238,163 5,423,087
Change in unrealized gain (loss) on investments . - - (6,984,699) 4,268,306
-------------- -------------- -------------- --------------
Net gain (loss) on investments................. - - 2,253,464 9,691,393
-------------- -------------- -------------- --------------
Reinvested capital gains......................... - - 2,832,509 3,430,335
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 154,182 165,079 4,530,173 12,881,009
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 220,399 314,840 1,892,879 3,144,831
Transfers between funds.......................... 2,300,876 2,154,594 (1,620,396) (1,943,493)
Redemptions...................................... (1,735,290) (1,620,690) (17,153,725) (8,549,939)
Annuity benefits................................. - - (6,797) (3,182)
Annual contract maintenance charge (note 2) ..... (4,435) (3,873) (71,216) (76,335)
Contingent deferred sales charges (note 2) ...... (12,739) (18,281) (114,691) (80,993)
Adjustments to maintain reserves................. 396 (146) 713 5,185
-------------- -------------- -------------- --------------
Net equity transactions...................... 769,207 826,444 (17,073,233) (7,503,926)
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 923,389 991,523 (12,543,060) 5,377,083
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 4,642,551 3,651,028 88,031,080 82,653,997
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 5,565,940 4,642,551 75,488,020 88,031,080
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
NBAMTBal
------------------------------
1999 1998
------------- --------------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 445,690 646,652
Mortality, expense and administration
charges (note 2):
VA ........................................ (337,349) (357,710)
VA II Convertible ......................... - -
------------- --------------
Net investment activity........................ 108,341 288,942
------------- --------------
Proceeds from mutual fund shares sold............ 6,346,136 3,546,380
Cost of mutual fund shares sold.................. (5,975,446) (3,412,486)
------------- --------------
Realized gain (loss) on investments............ 370,690 133,894
Change in unrealized gain (loss) on investments . 6,153,011 (2,232,727)
------------- --------------
Net gain (loss) on investments................. 6,523,701 (2,098,833)
------------- --------------
Reinvested capital gains......................... 660,282 4,541,959
------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 7,292,324 2,732,068
------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 306,190 880,295
Transfers between funds.......................... (834,877) (579,352)
Redemptions...................................... (5,172,204) (2,626,146)
Annuity benefits................................. (4,362) (1,043)
Annual contract maintenance charge (note 2) ..... (24,838) (27,347)
Contingent deferred sales charges (note 2) ...... (42,693) (30,749)
Adjustments to maintain reserves................. 636 2,944
------------- --------------
Net equity transactions...................... (5,772,148) (2,381,398)
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NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,520,176 350,670
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 27,955,718 27,605,048
------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. 29,475,894 27,955,718
============= ==============
</TABLE>
See accompanying notes to financial statements.
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NATIONWIDE VA SEPARATE ACCOUNT-A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
(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.
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)
American Century VP - American Century VP Balanced (ACVPBal)
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)
At December 31, 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.
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<PAGE> 10
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 December 31, 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.
(f) Calculation of Annuity Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects otherwise,
in which case the rate may vary from 3.5 percent to 7 percent, as
regulated by the laws of the respective states. The mortality risk is
fully borne by the Company and may result in additional amounts being
transferred into the Account by the Company to cover greater longevity
of annuitants than expected. Conversely, if reserves exceed amounts
required, transfers may be made to the Company.
(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.
(Continued)
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NATIONWIDE VA SEPARATE ACCOUNT-A
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(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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<PAGE> 12
Independent Auditors' Report
----------------------------
TheBoard of Directors of Nationwide Life and Annuity Insurance Company and
Contract Owners of Nationwide VA Separate Account-A:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide VA Separate Account-A (comprised of the
sub-accounts listed in note 1(b)) (collectively, "the Account") as of December
31, 1999, and the related statements of operations and changes in contract
owners' equity for each of the years in the two year period then ended. These
financial statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures include
confirmation of securities owned as of December 31, 1999, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Account as of December
31, 1999, and the results of its operations and its changes in contract owners'
equity for each of the years in the two year period then ended in conformity
with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
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<TABLE>
<CAPTION>
<S> <C>
--------------
Bulk Rate
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY U.S. Postage
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 PAID
Columbus, Ohio
Permit No. 521
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual Insurance Company
</TABLE>
