<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VL SEPARATE ACCOUNT-A
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1998
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
FHL-150-N (6/98)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life and Annuity Insurance Company are pleased to
present the 1998 semi-annual report of the Nationwide VL Separate
Account-A.
The bull market continued its run in the first half of 1998. Most of
the gains came in the first quarter with more modest returns or small
losses for the second half of the period. At this writing, a market
correction that began in the second quarter continues to provide a good
deal of day-to-day volatility. Much of the capriciousness of the market
is due to uncertainty about the economic outcome in Asia. However, we
think the correction will be of limited magnitude and duration and will
provide a healthy respite before further market advances.
We believe that existing economic and market fundamentals provide an
ongoing favorable environment for financial assets. Interest rates
remain low; inflation is nearly nonexistent; corporate earnings, albeit
slowing, remain positive, and U.S. economic growth appears to be on a
modest but sustainable track.
Against this backdrop, we believe our variable insurance products
continue to provide the versatile investment vehicle you need to
respond to changing market conditions. We are committed to the
continual evaluation of our products and services to ensure that we
remain responsive to your long-term financial planning and
retirement-savings needs.
/s/ JOSEPH J. GASPER
--------------------
Joseph J. Gasper, President
August 17, 1998
3
<PAGE> 3
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Advantage (ACVPAdv)
73,157 shares (cost $387,433) ............................................ $ 478,447
American Century VP - American Century VP Balanced (ACVPBal)
32,086 shares (cost $247,704) ............................................ 264,389
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
1,208 shares (cost $11,517) .............................................. 11,236
American Century VP - American Century VP Value (ACVPValue)
6,575 shares (cost $46,251) .............................................. 44,710
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
408 shares (cost $11,473) ................................................ 12,052
Dreyfus Stock Index Fund (DryStkIx)
103,659 shares (cost $3,005,468) ......................................... 3,111,832
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
32,278 shares (cost $1,053,057) .......................................... 1,086,809
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
519 shares (cost $11,624) ................................................ 11,233
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
2,756 shares (cost $68,873) .............................................. 69,375
Fidelity VIP - Growth Portfolio (FidVIPGr)
2,021 shares (cost $66,803) .............................................. 77,443
Fidelity VIP - High Income Portfolio (FidVIPHI)
3,656 shares (cost $46,103) .............................................. 46,173
Fidelity VIP - Overseas Portfolio (FidVIPOv)
10,347 shares (cost $213,401) ............................................ 213,357
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
103,273 shares (cost $1,749,223) ......................................... 1,781,461
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
3,699 shares (cost $77,463) .............................................. 81,200
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
2,533 shares (cost $50,331) .............................................. 51,772
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
1,474 shares (cost $14,613) .............................................. 13,712
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
53,252 shares (cost $1,299,129) .......................................... 1,341,412
Nationwide SAT - Government Bond Fund (NSATGvtBd)
61,102 shares (cost $705,151) ............................................ 702,675
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Nationwide SAT - Money Market Fund (NSATMyMkt)
12,684,396 shares (cost $12,684,396) ..................................... 12,684,396
Nationwide SAT - Small Company Fund (NSATSmCo)
8,674 shares (cost $153,163) ............................................. 145,897
Nationwide SAT - Total Return Fund (NSATTotRe)
8,410 shares (cost $150,727) ............................................. 157,269
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
756 shares (cost $11,820) ................................................ 12,176
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
579 shares (cost $14,298) ................................................ 15,242
Neuberger & Berman AMT - Limited Maturity Bond (NBAMTLMat)
139,049 shares (cost $1,877,066) ......................................... 1,886,889
Neuberger & Berman AMT - Partner's Portfolio (NBAMTPart)
37,193 shares (cost $740,190) ............................................ 715,957
Oppenheimer VAF - Bond Fund (OppBdFd)
3,662 shares (cost $43,707) .............................................. 43,912
Oppenheimer VAF - Global Securities Fund (OppGlSec)
1,507 shares (cost $32,618) .............................................. 32,696
Oppenheimer VAF - Growth Fund (OppGro)
1,382 shares (cost $46,919) .............................................. 47,843
Oppenheimer VAF - Multiple Stategies Fund (OppMult)
3,903 shares (cost $65,887) .............................................. 66,824
Strong Opportunity Fund II, Inc. (StOpp2)
2,677 shares (cost $60,578) .............................................. 58,203
Strong VIF - Strong International Stock Fund II (StIntStk2)
1,453 shares (cost $14,610) .............................................. 14,315
Van Kampen American Capital LIT -
Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
3,840 shares (cost $58,229) .............................................. 56,875
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
2,883 shares (cost $34,457) .............................................. 34,252
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
933 shares (cost $11,451) ................................................ 11,686
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
20,353 shares (cost $352,989) ............................................ 351,493
-----------
Total investments ...................................................... 25,735,213
Accounts receivable .............................................................. --
-----------
Total assets ........................................................... 25,735,213
ACCOUNTS PAYABLE ................................................................... 3,461
-----------
CONTRACT OWNERS' EQUITY ............................................................ $25,731,752
===========
</TABLE>
5
<PAGE> 5
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN
----- ---------- ------
<S> <C> <C> <C> <C>
Multiple Payment Contracts and Flexible Premium Contracts:
American Century - Advantage ........................ 498 $ 17.496545 $ 8,713 10%
American Century - Advantage
Initial Funding by Depositor (note 1a) ........... 25,000 18.789246 469,731 10%
Fidelity VIP - Growth Portfolio ..................... 1,727 29.081986 50,225 19%
Nationwide SAT - Capital Appreciation Fund .......... 419 29.181890 12,227 19%
Nationwide SAT - Government Bond Fund ............... 821 17.335612 14,233 4%
Nationwide SAT - Money Market Fund .................. 83 13.036881 1,082 2%
Nationwide SAT - Total Return Fund .................. 742 32.274487 23,948 14%
Neuberger & Berman - Balanced Portfolio ............. 591 20.593752 12,171 10%
Corporate Variable Universal Life Contracts:
(policy years 1 through 4):
American Century Portfolios, Inc. - Balanced ........ 22,941 11.522285 264,333 14%
American Century Portfolios, Inc. -
Capital Appreciation ............................. 1,261 8.890680 11,211 1%
American Century Portfolios, Inc. - Value ........... 4,124 10.835557 44,686 6%
The Dreyfus Socially Responsible
Growth Fund, Inc. ................................ 1,001 12.033433 12,045 18%
Dreyfus - Stock Index Fund .......................... 253,756 12.262644 3,111,719 17%
Dreyfus - Capital Appreciation Portfolio ............ 87,670 12.396373 1,086,790 20%
Dreyfus - Growth and Income Portfolio ............... 1,055 10.639613 11,225 6%
Fidelity VIP - Equity-Income Portfolio .............. 6,042 11.476352 69,340 10%
Fidelity VIP - Growth Portfolio ..................... 2,267 12.009911 27,226 19%
Fidelity VIP - High Income Portfolio ................ 4,256 10.843929 46,152 4%
Fidelity VIP - Overseas Portfolio ................... 19,076 11.183624 213,339 16%
Fidelity VIP-II - Asset Manager Portfolio ........... 158,624 11.230599 1,781,443 9%
Fidelity VIP-II - Contrafund Portfolio .............. 6,832 11.878722 81,155 16%
Fidelity VIP-III -
Growth Opportunities Portfolio ................... 4,422 11.703701 51,754 11%
Morgan Stanley -
Emerging Markets Debt Portfolio .................. 1,487 9.218833 13,708 (4)%
</TABLE>
6
<PAGE> 6
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN
----- ---------- ------
<S> <C> <C> <C> <C>
Nationwide SAT - Capital Appreciation Fund ....... 106,447 12.486817 1,329,184 19%
Nationwide SAT - Government Bond Fund ............ 63,628 10.819503 688,423 4%
Nationwide SAT - Money Market Fund ............... 1,220,115 10.393043 12,680,708 2%
Nationwide SAT - Small Company Fund .............. 13,958 10.450999 145,875 6%
Nationwide SAT - Total Return Fund ............... 11,303 11.793248 133,299 14%
Neuberger & Berman - Growth Portfolio ............ 1,312 11.615770 15,240 15%
Neuberger & Berman -
Limited Maturity Bond Portfolio ................ 181,306 10.406504 1,886,762 2%
Neuberger & Berman - Partners Portfolio .......... 66,406 10.780773 715,908 6%
Oppenheimer - Bond Fund .......................... 4,065 10.796525 43,888 4%
Oppenheimer - Global Securities Fund ............. 2,883 11.339465 32,692 12%
Oppenheimer - Growth Fund ........................ 4,099 11.667784 47,826 17%
Oppenheimer - Multiple Strategies Fund ........... 6,140 10.878244 66,792 7%
Strong - Opportunity Fund II ..................... 5,078 11.456438 58,176 13%
Strong VIP - International Stock Fund II ......... 1,555 9.198854 14,304 7%
Van Kampen American Capital LIT
Real Estate Securities Fund ................... 5,507 10.321503 56,841 (5)%
Warburg Pincus Trust International
Equity Portfolio .............................. 3,435 9.965101 34,230 13%
Warburg Pincus Trust Post Venture
Capital Portfolio ............................. 1,061 11.007700 11,679 13%
Warburg Pincus Trust Small Company
Growth Portfolio .............................. 33,029 10.641235 351,469 4%
========= ========= -----------
$25,731,752
===========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
7
<PAGE> 7
================================================================================
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACVPADV
---------------------------------------- -----------------------------------
1998 1997 1996 1998 1997 1996
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 294,243 7,211 6,966 9,771 5,992 5,840
Mortality and expense charges
(note 3) ..................... (34,814) (374) (350) (12) (3) (5)
------------ ------- ------- ------- ------- -------
Net investment income ........ 259,429 6,837 6,616 9,759 5,989 5,835
------------ ------- ------- ------- ------- -------
Proceeds from mutual fund
shares sold .................. 16,936,575 15,931 13,149 977 -- --
Cost of mutual funds sold ...... (16,917,760) (13,009) (11,754) (838) -- --
------------ ------- ------- ------- ------- -------
Realized gain (loss)
on investments ............. 18,815 2,922 1,395 139 -- --
Change in unrealized gain (loss)
on investments ............... 203,669 2,368 (10,664) (1,454) (1,418) (9,291)
------------ ------- ------- ------- ------- -------
Net gain (loss) on investments 222,484 5,290 (9,269) (1,315) (1,418) (9,291)
------------ ------- ------- ------- ------- -------
Reinvested capital gains ....... 58,733 22,573 20,663 36,765 21,011 16,600
------------ ------- ------- ------- ------- -------
Net change in contract
owners' equity resulting
from operations .......... 540,646 34,700 18,010 45,209 25,582 13,144
------------ ------- ------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 25,218,368 8,400 13,570 (218) 946 668
Surrenders ..................... -- (22,690) (4,211) -- -- (3)
Death benefits (note 4) ........ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... 2,902 12,587 1,338 -- -- --
Deductions for surrender charges
(note 2d) .................... -- (2,718) (1,831) -- -- (3)
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (562,392) (5,249) (6,067) (54) -- (31)
------------ ------- ------- ------- ------- -------
Net equity transactions .... 24,658,878 (9,670) 2,799 (272) 946 631
------------ ------- ------- ------- ------- -------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ............... 25,199,524 25,030 20,809 44,937 26,528 13,775
CONTRACT OWNERS' EQUITY
BEGINING OF PERIOD ........... 532,228 475,335 424,773 433,507 382,816 348,977
------------ ------- ------- ------- ------- -------
CONTRACT OWNERS' EQUITY
END OF PERIOD ................ $ 25,731,752 500,365 445,582 478,444 409,344 362,752
============ ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
ACVPBAL
------------------------
1998 1997 1996
-------- ---- ----
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 266 -- --
Mortality and expense charges
(note 3) ..................... (269) -- --
-------- ---- ----
Net investment income ........ (3) -- --
-------- ---- ----
Proceeds from mutual fund
shares sold .................. 4,397 -- --
Cost of mutual funds sold ...... (4,326) -- --
-------- ---- ----
Realized gain (loss)
on investments ............. 71 -- --
Change in unrealized gain (loss)
on investments ............... 16,685 -- --
-------- ---- ----
Net gain (loss) on investments 16,756 -- --
-------- ---- ----
Reinvested capital gains ....... 1,868 -- --
-------- ---- ----
Net change in contract
owners' equity resulting
from operations .......... 18,621 -- --
-------- ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 251,073 -- --
Surrenders ..................... -- -- --
Death benefits (note 4) ........ -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- --
Deductions for surrender charges
(note 2d) .................... -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (5,361) -- --
-------- ---- ----
Net equity transactions .... 245,712 -- --
-- -- --
NET CHANGE IN CONTRACT
OWNERS' EQUITY ................. 264,333 -- --
CONTRACT OWNERS' EQUITY
BEGINING OF PERIOD ............. -- -- --
-------- ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $264,333 -- --
======== ==== ====
</TABLE>
8
<PAGE> 8
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPCAPAP ACVPVALUE DRYSRGRO
------------------------ --------------------- ---------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
--------- ---- ---- ------ ---- ---- ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ -- -- -- 15 -- -- -- -- --
Mortality and expense charges
(note 3) ..................... (10) -- -- (40) -- -- (10) -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
Net investment income ....... (10) -- -- (25) -- -- (10) -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
Proceeds from mutual fund
shares sold .................. 277,502 -- -- 1,319 -- -- 416 -- --
Cost of mutual funds sold ...... (273,355) -- -- (1,362) -- -- (393) -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
Realized gain (loss)
on investments ............. 4,147 -- -- (43) -- -- 23 -- --
Change in unrealized gain (loss)
on investments ............... (282) -- -- (1,540) -- -- 579 -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
Net gain (loss) on investments 3,865 -- -- (1,583) -- -- 602 -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
Reinvested capital gains ....... 130 -- -- 184 -- -- -- -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
Net change in contract
owners' equity resulting
from operations .......... 3,985 -- -- (1,424) -- -- 592 -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 10,608 -- -- 48,077 -- -- 11,951 -- --
Surrenders ..................... -- -- -- -- -- -- -- -- --
Death benefits (note 4) ........ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- -- -- -- -- -- -- --
Deductions for surrender charges
(note 2d) .................... -- -- -- -- -- -- -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (3,382) -- -- (1,967) -- -- (498) -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
Net equity transactions .... 7,226 -- -- 46,110 -- -- 11,453 -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ................. 11,211 -- -- 44,686 -- -- 12,045 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............ -- -- -- -- -- -- -- -- --
--------- ---- ---- ------ ---- ---- ------ ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $ 11,211 -- -- 44,686 -- -- 12,045 -- --
========= ==== ==== ====== ==== ==== ====== ==== ====
</TABLE>
9
<PAGE> 9
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
DRYSTKIX DRYCAPAP DRYGRINC
------------------------- ------------------------ ---------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
---------- ---- ---- --------- ---- ---- ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 11,983 -- -- 1 -- -- 36 -- --
Mortality and expense charges
(note 3) ..................... (1,462) -- -- (1,102) -- -- (10) -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
Net investment income ........ 10,521 -- -- (1,101) -- -- 26 -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
Proceeds from mutual fund
shares sold .................. 28,088 -- -- 6,959 -- -- 331 -- --
Cost of mutual funds sold ...... (26,036) -- -- (6,727) -- -- (325) -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
Realized gain (loss)
on investments ............. 2,052 -- -- 232 -- -- 6 -- --
Change in unrealized gain (loss)
on investments ............... 106,364 -- -- 33,752 -- -- (391) -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
Net gain (loss) on investments 108,416 -- -- 33,984 -- -- (385) -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
Reinvested capital gains ....... 4,632 -- -- 2 -- -- 96 -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
Net change in contract
owners' equity resulting
from operations .......... 123,569 -- -- 32,885 -- -- (263) -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 3,021,574 -- -- 1,059,915 -- -- 11,982 -- --
Surrenders ..................... -- -- -- -- -- -- -- -- --
Death benefits (note 4) ........ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- -- -- -- -- -- -- --
Deductions for surrender charges
(note 2d) .................... -- -- -- -- -- -- -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (33,424) -- -- (6,010) -- -- (494) -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
Net equity transactions .... 2,988,150 -- -- 1,053,905 -- -- 11,488 -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ................. 3,111,719 -- -- 1,086,790 -- -- 11,225 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............ -- -- -- -- -- -- -- -- --
---------- ---- ---- --------- ---- ---- ------ ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $3,111,719 -- -- 1,086,790 -- -- 11,225 -- --
========== ==== ==== ========= ==== ==== ====== ==== ====
</TABLE>
10
<PAGE> 10
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPEI FIDVIPGR FIDVIPHI
---------------------- -------------------------------- ---------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
------- ---- ---- ------ ------ ------ ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ -- -- -- 217 249 97 -- -- --
Mortality and expense charges
(note 3) ..................... (61) -- -- (23) (204) (191) (41) -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
Net investment income ........ (61) -- -- 194 45 (94) (41) -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
Proceeds from mutual fund
shares sold .................. 2,202 -- -- 15,999 6,559 3,804 1,311 -- --
Cost of mutual funds sold ...... (2,105) -- -- (9,731) (4,524) (2,922) (1,275) -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
Realized gain (loss)
on investments ............. 97 -- -- 6,268 2,035 882 36 -- --
Change in unrealized gain (loss)
on investments ............... 502 -- -- (2,518) 1,716 413 70 -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
Net gain (loss) on investments 599 -- -- 3,750 3,751 1,295 106 -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
Reinvested capital gains ....... -- -- -- 5,679 1,112 2,450 -- -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
Net change in contract
owners' equity resulting
from operations .......... 538 -- -- 9,623 4,908 3,651 65 -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 71,776 -- -- 27,290 2,154 5,030 48,066 -- --
Surrenders ..................... -- -- -- -- (9,009) (2,063) -- -- --
Death benefits (note 4) ........ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- -- 555 3,812 (653) -- -- --
Deductions for surrender charges
(note 2d) .................... -- -- -- -- (1,079) (897) -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (2,974) -- -- (2,501) (689) (2,960) (1,979) -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
Net equity transactions .... 68,802 -- -- 25,344 (4,811) (1,543) 46,087 -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ................. 69,340 -- -- 34,967 97 2,108 46,152 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............ -- -- -- 42,484 40,328 35,127 -- -- --
------- ---- ---- ------ ------ ------ ------ ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $69,340 -- -- 77,451 40,425 37,235 46,152 -- --
======= ==== ==== ====== ====== ====== ====== ==== ====
</TABLE>
11
<PAGE> 11
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPOV FIDVIPAM FIDVIPCON
----------------------- ------------------------ ---------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
-------- ---- ---- --------- ---- ---- ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ -- -- -- -- -- -- -- -- --
Mortality and expense charges
(note 3) ..................... (218) -- -- (1,744) -- -- (70) -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
Net investment income ........ (218) -- -- (1,744) -- -- (70) -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
Proceeds from mutual fund
shares sold .................. 1,100 -- -- 6,580 -- -- 2,324 -- --
Cost of mutual funds sold ...... (1,024) -- -- (6,304) -- -- (2,195) -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
Realized gain (loss)
on investments ............. 76 -- -- 276 -- -- 129 -- --
Change in unrealized gain (loss)
on investments ............... (45) -- -- 32,238 -- -- 3,737 -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
Net gain (loss) on investments 31 -- -- 32,514 -- -- 3,866 -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
Reinvested capital gains ....... -- -- -- -- -- -- -- -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
Net change in contract
owners' equity resulting
from operations .......... (187) -- -- 30,770 -- -- 3,796 -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 216,018 -- -- 1,760,914 -- -- 80,792 -- --
Surrenders ..................... -- -- -- -- -- -- -- -- --
Death benefits (note 4) ........ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- -- -- -- -- -- -- --
Deductions for surrender charges
(note 2d) .................... -- -- -- -- -- -- -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (2,492) -- -- (10,241) -- -- (3,433) -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
Net equity transactions .... 213,526 -- -- 1,750,673 -- -- 77,359 -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ................. 213,339 -- -- 1,781,443 -- -- 81,155 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............ -- -- -- -- -- -- -- -- --
-------- ---- ---- --------- ---- ---- ------ ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $213,339 -- -- 1,781,443 -- -- 81,155 -- --
======== ==== ==== ========= ==== ==== ====== ==== ====
</TABLE>
12
<PAGE> 12
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPGROP MSEMMKT NSATCAPAP
---------------------- --------------------- ---------------------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
------- ---- ---- ------ ---- ---- --------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ -- -- -- -- -- -- 2,696 11 12
Mortality and expense charges
(note 3) ..................... (42) -- -- (12) -- -- (1,249) (1) --
------- ---- ---- ------ ---- ---- --------- ----- -----
Net investment income ........ (42) -- -- (12) -- -- 1,447 10 12
------- ---- ---- ------ ---- ---- --------- ----- -----
Proceeds from mutual fund
shares sold .................. 1,048 -- -- 5,200 -- -- 8,908 62 162
Cost of mutual funds sold ...... (999) -- -- (5,044) -- -- (6,868) (36) (116)
------- ---- ---- ------ ---- ---- --------- ----- -----
Realized gain (loss)
on investments ............. 49 -- -- 156 -- -- 2,040 26 46
Change in unrealized gain (loss)
on investments ............... 1,441 -- -- (901) -- -- 41,391 336 72
------- ---- ---- ------ ---- ---- --------- ----- -----
Net gain (loss) on investments 1,490 -- -- (745) -- -- 43,431 362 118
------- ---- ---- ------ ---- ---- --------- ----- -----
Reinvested capital gains ....... -- -- -- -- -- -- -- -- --
------- ---- ---- ------ ---- ---- --------- ----- -----
Net change in contract
owners' equity resulting
from operations .......... 1,448 -- -- (757) -- -- 44,878 372 130
------- ---- ---- ------ ---- ---- --------- ----- -----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 51,712 -- -- 14,995 -- -- 1,294,708 200 267
Surrenders ..................... -- -- -- -- -- -- -- -- (5)
Death benefits (note 4) ........ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- -- -- -- -- 1,173 (6) (155)
Deductions for surrender charges
(note 2d) .................... -- -- -- -- -- -- (2)
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (1,406) -- -- (530) -- -- (8,406) -- (7)
------- ---- ---- ------ ---- ---- --------- ----- -----
Net equity transactions .... 50,306 -- -- 14,465 -- -- 1,287,475 194 98
------- ---- ---- ------ ---- ---- --------- ----- -----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ................. 51,754 -- -- 13,708 -- -- 1,332,353 566 228
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............ -- -- -- -- -- -- 9,058 1,561 1,145
------- ---- ---- ------ ---- ---- --------- ----- -----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $51,754 -- -- 13,708 -- -- 1,341,411 2,127 1,373
======= ==== ==== ====== ==== ==== ========= ===== =====
</TABLE>
13
<PAGE> 13
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NSATGVTBD NSATMYMKT
---------------------------------- ------------------------------------
1998 1997 1996 1998 1997 1996
-------- ------ ------ ----------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............. $ 10,791 406 471 257,067 272 145
Mortality and expense charges
(note 3) ........................ (639) (72) (67) (25,120) (10) (8)
-------- ------ ------ ----------- ------ ------
Net investment income ........... 10,152 334 404 231,947 262 137
-------- ------ ------ ----------- ------ ------
Proceeds from mutual fund
shares sold ..................... 7,480 5,924 609 16,216,858 125 4,129
Cost of mutual funds sold ......... (7,073) (5,538) (594) (16,216,858) (125) (1,867)
-------- ------ ------ ----------- ------ ------
Realized gain (loss)
on investments ................ 407 386 15 -- -- --
Change in unrealized gain (loss)
on investments .................. (2,966) (396) (726) -- -- --
-------- ------ ------ ----------- ------ ------
Net gain (loss) on investments .. (2,559) (10) (711) -- -- --
-------- ------ ------ ----------- ------ ------
Reinvested capital gains .......... -- -- -- -- -- --
-------- ------ ------ ----------- ------ ------
Net change in contract
owners' equity resulting
from operations ............. 7,593 324 (307) 231,947 262 137
-------- ------ ------ ----------- ------ ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................. 690,080 2,675 1,142 12,859,321 683 3,232
Surrenders ........................ -- (8,212) (22) -- -- --
Death benefits (note 4) ........... -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ........................ -- 3,693 (35) -- 1,406 2,500
Deductions for surrender charges
(note 2d) ....................... -- (984) (9) -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............... (9,108) (1,701) (31) (410,603) (848) --
-------- ------ ------ ----------- ------ ------
Net equity transactions ....... 680,972 (4,529) 1,045 12,448,718 1,241 5,732
-------- ------ ------ ----------- ------ ------
NET CHANGE IN CONTRACT
OWNERS' EQUITY .................... 688,565 (4,205) 738 12,680,665 1,503 5,869
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............... 14,091 17,425 14,562 1,125 10,224 1,941
-------- ------ ------ ----------- ------ ------
CONTRACT OWNERS' EQUITY
END OF PERIOD ..................... $702,656 13,220 15,300 12,681,790 11,727 7,810
======== ====== ====== =========== ====== ======
</TABLE>
<TABLE>
<CAPTION>
NSATSMCO
---------------------
1998 1997 1996
-------- ---- ----
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- --
Mortality and expense charges
(note 3) ......................... (150) -- --
-------- ---- ----
Net investment income ............ (150) -- --
-------- ---- ----
Proceeds from mutual fund
shares sold ...................... 1,922 -- --
Cost of mutual funds sold .......... -- --
-------- ---- ----
Realized gain (loss)
on investments ................. 55 -- --
Change in unrealized gain (loss)
on investments ................... (7,266) -- --
-------- ---- ----
Net gain (loss) on investments ... (7,211) -- --
-------- ---- ----
Reinvested capital gains ........... -- -- --
-------- ---- ----
Net change in contract
owners' equity resulting
from operations .............. (7,361) -- --
-------- ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 155,193 -- --
Surrenders ......................... -- -- --
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- --
Deductions for surrender charges
(note 2d) ........................ -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ................ (1,957) -- --
-------- ---- ----
Net equity transactions ........ 153,236 -- --
-------- ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 145,875 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ -- -- --
-------- ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $145,875 -- --
======== ==== ====
</TABLE>
14
<PAGE> 14
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NSATTOTRE NBAMTBAL NBAMTGRO
------------------------------- -------------------------------- --------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
-------- ------ ------ -------- ------- ------ ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............. $ 443 106 111 -- 175 290 -- -- --
Mortality and expense charges
(note 3) ........................ (159) (40) (38) (17) (44) (41) (12) -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
Net investment income ........... 284 66 73 (17) 131 249 (12) -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
Proceeds from mutual fund
shares sold ..................... 6,174 468 2,173 313,569 2,793 2,272 1,125 -- --
Cost of mutual funds sold ......... (3,417) (333) (1,790) (312,999) (2,453) (2,203) (1,137) -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
Realized gain (loss)
on investments ................ 2,757 135 383 570 340 69 (12) -- --
Change in unrealized gain (loss)
on investments .................. 2,066 1,952 440 9,823 178 (1,572) 944 -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
Net gain (loss) on investments .. 4,823 2,087 823 10,393 518 (1,503) 932 -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
Reinvested capital gains .......... -- -- -- -- 450 1,613 -- -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
Net change in contract
owners' equity resulting
from operations ............. 5,107 2,153 896 10,376 1,099 359 920 -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................. 133,803 1,757 1,588 (10,008) (15) 1,643 15,427 -- --
Surrenders ........................ -- -- (1,128) -- (5,469) (990) -- -- --
Death benefits (note 4) ........... -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ........................ 1,174 (21) (59) -- 3,703 (260) -- -- --
Deductions for surrender charges
(note 2d) ....................... -- -- (490) -- (655) (430) -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............... (2,997) (1,930) (1,618) -- (81) (1,420) (1,107) -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
Net equity transactions ....... 131,980 (194) (1,707) (10,008) (2,517) (1,457) 14,320 -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY .................... 137,087 1,959 (811) 368 (1,418) (1,098) 15,240 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............... 20,160 11,458 11,079 11,803 11,523 11,942 -- -- --
-------- ------ ------ -------- ------- ------ ------ ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD ..................... $157,247 13,417 10,268 12,171 10,105 10,844 15,240 -- --
======== ====== ====== ======== ======= ====== ====== ==== ====
</TABLE>
15
<PAGE> 15
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTLMAT NBAMTPART OPPBDFD
------------------------- ---------------------- ---------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
---------- ---- ---- ------- ---- ---- ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ -- -- -- 96 -- -- 322 -- --
Mortality and expense charges
(note 3) .......................... (983) -- -- (685) -- -- (39) -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
Net investment income ............. (983) -- -- (589) -- -- 283 -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
Proceeds from mutual fund
shares sold ....................... 379 -- -- 8,067 -- -- 1,301 -- --
Cost of mutual funds sold ........... (344) -- -- (8,767) -- -- (1,340) -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
Realized gain (loss)
on investments .................. 35 -- -- (700) -- -- (39) -- --
Change in unrealized gain (loss)
on investments .................... (979) -- -- (24,234) -- -- 205 -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
Net gain (loss) on investments .... (944) -- -- (24,934) -- -- 166 -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
Reinvested capital gains ............ -- -- -- 3,026 -- -- 291 -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
Net change in contract
owners' equity resulting
from operations ............... (1,927) -- -- (22,497) -- -- 740 -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................... 1,914,042 -- -- 747,906 -- -- 45,076 -- --
Surrenders .......................... -- -- -- -- -- -- -- -- --
Death benefits (note 4) ............. -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) .......................... -- -- -- -- -- -- -- -- --
Deductions for surrender charges
(note 2d) ......................... -- -- -- -- -- -- -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ................. (25,353) -- -- (9,501) -- -- (1,928) -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
Net equity transactions ......... 1,888,689 -- -- 738,405 -- -- 43,148 -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ...................... 1,886,762 -- -- 715,908 -- -- 43,888 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. -- -- -- -- -- -- -- -- --
---------- ---- ---- ------- ---- ---- ------ ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD ....................... $1,886,762 -- -- 715,908 -- -- 43,888 -- --
========== ==== ==== ======= ==== ==== ====== ==== ====
</TABLE>
16
<PAGE> 16
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
OPPGLSEC OPPGRO OPPMULT
---------------------- ----------------------- ---------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
------- ---- ---- ------ ---- ---- ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 307 -- -- 100 -- -- -- -- --
Mortality and expense charges
(note 3) ..................... (25) -- -- (41) -- -- (63) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Net investment income ........ 282 -- -- 59 -- -- (63) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Proceeds from mutual fund
shares sold .................. 530 -- -- 7,064 -- -- 356 -- --
Cost of mutual funds sold ...... (534) -- -- (7,055) -- -- (356) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Realized gain (loss)
on investments ............. (4) -- -- 9 -- -- -- -- --
Change in unrealized gain (loss)
on investments ............... 78 -- -- 923 -- -- 937 -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Net gain (loss) on investments 74 -- -- 932 -- -- 937 -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Reinvested capital gains ....... 1,156 -- -- 1,201 -- -- -- -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Net change in contract
owners' equity resulting
from operations .......... 1,512 -- -- 2,192 -- -- 874 -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 31,731 -- -- 48,196 -- -- 66,272 -- --
Surrenders ..................... -- -- -- -- -- -- -- -- --
Death benefits (note 4) ........ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- -- -- -- -- -- -- --
Deductions for surrender charges
(note 2d) .................... -- -- -- -- -- -- -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (551) -- -- (2,562) -- -- (354) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Net equity transactions .... 31,180 -- -- 45,634 -- -- 65,918 -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY
CONTRACT OWNERS' EQUITY .......... 32,692 -- -- 47,826 -- -- 66,792 -- --
BEGINNING OF PERIOD ............ -- -- -- -- -- -- -- -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $32,692 -- -- 47,826 -- -- 66,792 -- --
======= ==== ==== ====== ==== ==== ====== ==== ====
</TABLE>
17
<PAGE> 17
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
STOPP2 STINTSTK2 VKMSRESEC
---------------------- --------------------- ---------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
------- ---- ---- ------ ---- ---- ------ ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 9 -- -- 92 -- -- 31 -- --
Mortality and expense charges
(note 3) ..................... (51) -- -- (12) -- -- (50) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Net investment income ........ (42) -- -- 80 -- -- (19) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Proceeds from mutual fund
shares sold .................. 1,741 -- -- 330 -- -- 1,661 -- --
Cost of mutual funds sold ...... (1,823) -- -- (316) -- -- (1,667) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Realized gain (loss)
on investments ............. (82) -- -- 14 -- -- (6) -- --
Change in unrealized gain (loss)
on investments ............... (2,375) -- -- (294) -- -- (1,354) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Net gain (loss) on investments (2,457) -- -- (280) -- -- (1,360) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Reinvested capital gains ....... 3,397 -- -- -- -- -- 306 -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Net change in contract
owners' equity resulting
from operations .......... 898 -- -- (200) -- -- (1,073) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 59,799 -- -- 15,039 -- -- 60,405 -- --
Surrenders ..................... -- -- -- -- -- -- -- -- --
Death benefits (note 4) ........ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- -- -- -- -- -- -- --
Deductions for surrender charges
(note 2d) .................... -- -- -- -- -- -- -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (2,521) -- -- (535) -- -- (2,491) -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
Net equity transactions .... 57,278 -- -- 14,504 -- -- 57,914 -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ................. 58,176 -- -- 14,304 -- -- 56,841 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............ -- -- -- -- -- -- -- -- --
------- ---- ---- ------ ---- ---- ------ ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $58,176 -- -- 14,304 -- -- 56,841 -- --
======= ==== ==== ====== ==== ==== ====== ==== ====
</TABLE>
18
<PAGE> 18
NATIONWIDE VL SEPARATE ACCOUNT-A
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
WPINTEQ WPPVENCAP WPSMCOGR
---------------------- --------------------- ----------------------
1998 1997 1996 1998 1997 1996 1998 1997 1996
------- ---- ---- ------ ---- ---- ------- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ -- -- -- -- -- -- -- -- --
Mortality and expense charges
(note 3) ..................... (31) -- -- (10) -- -- (352) -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
Net investment income ........ (31) -- -- (10) -- -- (352) -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
Proceeds from mutual fund
shares sold .................. 1,011 -- -- 391 -- -- 1,955 -- --
Cost of mutual funds sold ...... (932) -- -- (368) -- -- (2,000) -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
Realized gain (loss)
on investments ............. 79 -- -- 23 -- -- (45) -- --
Change in unrealized gain (loss)
on investments ............... (206) -- -- 235 -- -- (1,496) -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
Net gain (loss) on investments (127) -- -- 258 -- -- (1,541) -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
Reinvested capital gains ....... -- -- -- -- -- -- -- -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
Net change in contract
owners' equity resulting
from operations .......... (158) -- -- 248 -- -- (1,893) -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............. 35,905 -- -- 11,925 -- -- 357,023 -- --
Surrenders ..................... -- -- -- -- -- -- -- -- --
Death benefits (note 4) ........ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ..................... -- -- -- -- -- -- -- -- --
Deductions for surrender charges
(note 2d) .................... -- -- -- -- -- -- -- -- --
Redemptions to pay cost of
insurance charges and
administrative charges
(notes 2b and 2c) ............ (1,517) -- -- (494) -- -- (3,661) -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
Net equity transactions .... 34,388 -- -- 11,431 -- -- 353,362 -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
NET CHANGE IN CONTRACT
OWNERS' EQUITY ................. 34,230 -- -- 11,679 -- -- 351,469 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............ -- -- -- -- -- -- -- -- --
------- ---- ---- ------ ---- ---- ------- ---- ----
CONTRACT OWNERS' EQUITY
END OF PERIOD .................. $34,230 -- -- 11,679 -- -- 351,469 -- --
======= ==== ==== ====== ==== ==== ======= ==== ====
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 19
NATIONWIDE VL SEPARATE ACCOUNT-A
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
Nationwide VL 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 August 8, 1984. The Account
has been registered as a unit investment trust under the Investment
Company Act of 1940. On August 21, 1991, the Company (Depositor)
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. 1
The Company offers Modified Single Premium, Multiple Payment and
Flexible Premium Variable Life Insurance Policies 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 with a front-end sales charge, a contingent deferred
sales charge and certain other fees, have been offered for purchase.
Additionally, contracts without a front-end sales charge, but with a
contingent deferred sales charge and certain other fees, have been
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);
American Century VP - American Century VP Advantage
(ACVPAdv)
American Century VP - American Century VP Balanced (ACVPBal)
American Century VP - American Century VP Capital
Appreciation (ACVPCapAp)
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International
(ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
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)
Portfolios of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio
(FidVIPGrOp)
20
<PAGE> 20
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 Cap Value Fund (NSATSmCapV)
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 - Balanced Portfolio (NBAMTBal)
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
Neuberger & Berman AMT - Limited Maturity Bond (NBAMTLMat)
Neuberger & Berman AMT - Partner's 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)
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 Hard Assets Fund (VWHA)
Van Eck WIT - Worldwide Bond Fund (VWBF)
Van Eck WIT - Worldwide Emerging Markets Fund (VWEM)
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 (VKMSRESec)
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 June 30, 1998, policy owners have invested in all of the above
funds except for American Century VP - American Century VP Income &
Growth, American Century VP - American Century VP International,
Nationwide SAT - Small Cap Value Fund, Neuberger & Berman AMT -
Guardian Portfolio, Strong VIF - Strong Discovery Fund II, Van Eck WIT
- Worldwide Hard Assets Fund, Van Eck WIT - Worldwide Bond Fund, and
Van Eck WIT - Worldwide Emerging Markets Fund. The contract owners'
equity is affected by the investment results of each fund, equity
transactions by contract owners and certain policy charges (see notes
2 and 3). The accompanying financial statements include only contract
owners' purchase payments pertaining to the variable portions of their
contracts and exclude any purchase payments for fixed dollar
investment options, the latter being included in the accounts of the
Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the
closing net asset value per share at June 30, 1998. 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.
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(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) Reclassifications
Certain 1997 and 1996 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 sales charge not to exceed 3.5% of each premium
payment. The Company also deducts a state premium tax charge of 2.5%
of all premiums received.
For corporate flexible premium contracts, the Company deducts a sales
charge never to exceed 5.5% during the first seven policy years and 2%
thereafter. The Company also deducts a tax expense charge not to
exceed 3.5% and a state premium tax charge of 2.25% of all premiums
received.
(b) Cost of Insurance
A cost of insurance charge is assessed monthly against each contract
by liquidating units. The amount of the charge is based upon age, sex,
rate class and net amount at risk (death benefit less total contract
value).
(c) Administrative Charges
For multiple payment contracts, the Company currently deducts a
monthly administrative charge of $5 (may deduct up to $7.50, maximum)
to recover policy maintenance, accounting, record keeping and other
administrative expenses.
For flexible premium contracts, the Company currently deducts a
monthly administrative charge of $12.50 during the first policy year
and $5 per month thereafter (may deduct up to $7.50, maximum) to
recover policy maintenance, accounting, record keeping and other
administrative expenses. Additionally, the Company deducts an increase
charge of $2.04 per year per $1,000 applied to any increase in the
specified amount during the first 12 months after the increase becomes
effective.
For single premium contracts, the Company deducts an annual
administrative charge which is determined as follows:
Purchase payments totaling less than $25,000 - $90/year
Purchase payments totaling $25,000 or more - $50/year
The above charges are assessed against each contract by
liquidating units.
No charges were deducted from the initial funding, or from the
earnings thereon.
For corporate flexible premium contracts, the Company deducts a
monthly administrative charge of $5 on a current basis and $10 on a
guaranteed basis in all policy years.
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(d) Surrender Charges
Policy surrenders result in a redemption of the contract value from
the Account and payment of the surrender proceeds to the contract
owner or designee. The surrender proceeds consist of the contract
value, less any outstanding policy loans, and less a surrender charge,
if applicable. The charge is determined according to contract type.
For multiple payment contracts and flexible premium contracts, the
amount charged is determined 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 single premium contracts, the charge is determined based upon a
specified percentage of the original purchase payment. The charge is
8.5% in the first year, and declines to 0% after the ninth year.
For corporate flexible premium contracts, there are no surrender
charges.
(3) ASSET CHARGES
For multiple payment contracts and flexible premium contracts, the Company
deducts charges from the contract to cover mortality and expense risk
charges related to operations, and to recover policy maintenance charges.
The charge is equal to an annual rate of .80%, with certain exceptions.
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. The charge is
equal to an annual rate of 1.30% during the first ten policy years, and
1.00% thereafter. At this time no single premium contracts are in force.
For corporate flexible 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 charges. This charge is
guaranteed not to exceed an annual effective rate of .75%. On a current
basis, the annual rate will be .60% during the first through fourth policy
years, .40% during the fifth through twentieth policy years, and .25%
thereafter.
The above charges are assessed through the daily unit value calculation. No
charges are deducted from the initial funding, or from earnings thereon.
(4) POLICY LOANS (NET OF REPAYMENTS)
Contract provisions allow contract owners to borrow up to 90% of a policy's
cash surrender value. On each policy anniversary following the initial
loan, interest is due and payable to the Company.
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.
(5) 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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<TABLE>
<CAPTION>
<S> <C>
Bulk Rate
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY U.S. Postage
HOME OFFICE: ONE NATIONWIDE PLAZA o COLUMBUS, OHIO 43215-2220 P A I D
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual Insurance Company
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