<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VLI SEPARATE
ACCOUNT-3
Annual Report
to
Contract Owners
December 31, 1999
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-2413-Q(12/99)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PRESIDENT'S PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you
the 1999 annual report of the Nationwide VLI Separate Account-3.
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
Joseph J. Gasper, President
February 10, 2000
3
<PAGE> 3
- --------------------------------------------------------------------------------
NATIONWIDE VLI SEPARATE ACCOUNT-3
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)
66,243 shares (cost $412,841) .................................................................... $ 476,949
American Century VP - American Century VP Balanced (ACVPBal)
2,638 shares (cost $19,361) ...................................................................... 20,552
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
5,524 shares (cost $53,862) ...................................................................... 81,972
American Century VP - American Century VP Income & Growth (ACVPIncGr)
2,983 shares (cost $20,946) ...................................................................... 23,860
American Century VP - American Century VP International (ACVPInt)
2,229 shares (cost $19,640) ...................................................................... 27,858
American Century VP - American Century VP Value (ACVPValue)
1,287 shares (cost $8,857) ....................................................................... 7,658
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
4,602 shares (cost $135,573) ..................................................................... 179,792
Dreyfus Stock Index Fund (DryStkIx)
17,788 shares (cost $500,407) .................................................................... 683,966
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
6,244 shares (cost $208,372) ..................................................................... 248,957
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
443 shares (cost $10,053) ........................................................................ 11,292
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
15,380 shares (cost $358,192) .................................................................... 395,412
Fidelity VIP - Growth Portfolio (FidVIPGr)
20,934 shares (cost $779,631) .................................................................... 1,149,931
Fidelity VIP - High Income Portfolio (FidVIPHI)
9,794 shares (cost $113,096) ..................................................................... 110,768
Fidelity VIP - Overseas Portfolio (FidVIPOv)
1,575 shares (cost $31,790) ...................................................................... 43,226
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
5,052 shares (cost $81,921) ...................................................................... 94,323
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
23,195 shares (cost $479,385) .................................................................... 676,149
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
557 shares (cost $12,365) ........................................................................ 12,892
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
103 shares (cost $704) ........................................................................... 713
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
302,263 shares (cost $4,917,307) ................................................................. 7,771,188
Nationwide SAT - Government Bond Fund (NSATGvtBd)
157,599 shares (cost $1,775,851) ................................................................. 1,700,488
Nationwide SAT - Money Market Fund (NSATMyMkt)
538,155 shares (cost $538,155) ................................................................... 538,155
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C>
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
3,493 shares (cost $34,392,300) .................................................................. 33,952
Nationwide SAT - Small Company Fund (NSATSmCo)
3,200 shares (cost $55,496) ...................................................................... 70,793
Nationwide SAT - Total Return Fund (NSATTotRe)
995,037 shares (cost $12,764,139) ................................................................ 18,716,653
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
82,419 shares (cost $1,289,366) .................................................................. 1,721,734
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
2,825 shares (cost $74,367) ...................................................................... 105,300
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
82 shares (cost $1,209) .......................................................................... 1,304
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
303 shares (cost $4,087) ......................................................................... 4,011
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
6,550 shares (cost $126,832) ..................................................................... 128,648
Oppenheimer VAF - Bond Fund (OppBdFd)
405 shares (cost $4,801) ......................................................................... 4,661
Oppenheimer VAF - Global Securities Fund (OppGISec)
5,685 shares (cost $132,266) ..................................................................... 189,921
Oppenheimer VAF - Growth Fund (OppGro)
1,724 shares (cost $73,455) ...................................................................... 85,948
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
625 shares (cost $9,781) ......................................................................... 10,909
Strong Opportunity Fund II, Inc. (StOpp2)
6,316 shares (cost $135,929) ..................................................................... 164,143
Strong VIF - Strong Discovery Fund II (StDisc2)
2,324 shares (cost $26,307) ...................................................................... 26,447
Strong VIF - Strong International Stock Fund II (StIntStk2)
6,269 shares (cost $68,242) ...................................................................... 102,616
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
158 shares (cost $1,690) ......................................................................... 1,689
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
1,813 shares (cost $19,621) ...................................................................... 25,853
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
518 shares (cost $6,355) ......................................................................... 5,678
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
1,055 shares (cost $14,710) ...................................................................... 13,046
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
2,373 shares (cost $28,913) ...................................................................... 39,629
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
88 shares (cost $954) ............................................................................ 1,702
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
1,998 shares (cost $33,853) ...................................................................... 52,354
------------
Total assets .................................................................................. 35,763,092
ACCOUNTS PAYABLE .......................................................................................... 3,488
------------
CONTRACT OWNERS' EQUITY (NOTE 7) .......................................................................... $ 35,759,604
============
</TABLE>
See accompanying notes to financial statements
- --------------------------------------------------------------------------------
5
<PAGE> 5
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
- ------------------------------
STATEMENTS OF OPERATIONS
- ------------------------------
YEARS ENDED DECEMBER 31,1999,1998 AND 1997
<TABLE>
<CAPTION>
Total ACVPAdv
-----------------------------------------------------------------------------------------
.................................... 1999 1998 1997 1999 1998 1997
------------ ---------- ----------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............. $ 348,554 441,432 452,251 13,250 19,123 12,739
Mortality and expense charges
(note 3) ...................... (276,154) (251,361) (208,160) (3,661) (3,703) (3,496)
------------ ---------- ----------- ---------- -------- ---------
Net investment activity........ 72,400 190,071 244,091 9,589 15,420 9,243
------------ ---------- ----------- ---------- -------- ---------
Proceeds from mutual fund
shares sold ................... 6,253,394 2,923,380 2,224,444 590,051 78,478 106,359
Cost of mutual funds sold ........ (4,008,289) (2,044,536) (1,729,172) (447,042) (66,483) (94,785)
------------ ---------- ----------- ---------- -------- ---------
Realized gain (loss) on
investments ................. 2,245,105 878,844 495,272 143,009 11,995 11,574
Change in unrealized gain (loss)
on investments ................ (974,176) 3,011,918 4,439,699 (113,316) 40,889 32,047
------------ ---------- ----------- ---------- -------- ---------
Net gain (loss) on investments 1,270,929 3,890,762 4,934,971 29,693 52,884 43,621
------------ ---------- ----------- ---------- -------- ---------
Reinvested capital gains ......... 1,433,671 1,454,945 845,589 31,451 71,955 44,789
------------ ---------- ----------- ---------- -------- ---------
Net change in contract
owners'equity resulting
from operations .......... 2,777,000 5,535,778 6,024,651 70,733 140,259 97,653
------------ ---------- ----------- ---------- -------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............... 3,913,784 4,210,270 4,453,849 54,404 68,519 62,979
Transfers between funds .......... - - - (25,227) (21,014) (35,911)
Surrenders ....................... (2,800,317) (1,087,106) (747,816) (521,315) (29,005) (40,827)
Death benefits (note 4) .......... (164,396) (124,773) (28,333) (1,312) (10,265) -
Policy loans (net of repayments)
(note 5) ...................... (613,794) (859,588) (891,821) (23,507) (18,396) (18,857)
Deductions for surrender charges
(note 2d) ..................... (128,799) (128,012) (166,341) (1,312) (3,416) (9,081)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ..... (2,063,709) (2,017,340) (2,036,264) (34,552) (23,887) (10,757)
------------ ---------- ----------- ---------- -------- ---------
Net equity transactions ..... (1,857,231) (6,549) 583,274 (552,821) (37,464) (52,454)
------------ ---------- ----------- ---------- -------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY . 919,769 5,529,229 6,607,925 (482,088) 102,795 45,199
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD .............. 34,839,835 29,310,606 22,702,681 958,986 856,191 810,992
------------ ---------- ----------- ---------- -------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD $ 35,759,604 34,839,835 29,310,606 476,898 958,986 856,191
============ ========== =========== ========== ======== =========
</TABLE>
<TABLE>
<CAPTION>
ACVPBal
---------------------------------------
1999 1998 1997
------ -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............. 356 373 171
Mortality and expense charges
(note 3) ...................... (151) (147) (23)
------ -------- --------
Net investment activity ....... 205 226 148
------ -------- --------
Proceeds from mutual fund
shares sold ................... 693 5,521 560
Cost of mutual funds sold ........ (663) (4,833) (500)
------ -------- --------
Realized gain (loss) on
investments ................. 30 688 60
Change in unrealized gain (loss)
on investments ................ (969) (436) 1,633
------ -------- --------
Net gain (loss) on investments (939) 252 1,693
------ -------- --------
Reinvested capital gains ......... 2,455 2,314 746
------ -------- --------
Net change in contract
owners'equity resulting
from operations .......... 1,721 2,792 2,587
------ -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............... 1,106 648 1,313
Transfers between funds .......... - - 3,416
Surrenders ....................... - (3,950) (113)
Death benefits (note 4) .......... - - -
Policy loans (net of repayments)
(note 5) ...................... - - -
Deductions for surrender charges
(note 2d) ..................... - (465) (25)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ..... (732) (626) 3
------ -------- --------
Net equity transactions ..... 374 (4,393) 4,594
------ -------- --------
NET CHANGE IN CONTRACT OWNERS'EQUITY . 2,095 (1,601) 7,181
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD .............. 18,451 20,052 12,871
------ -------- --------
CONTRACT OWNERS'EQUITY END OF PERIOD 20,546 18,451 20,052
====== ======== ========
</TABLE>
6
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- --------------------------------------
STATEMENTS OF OPERATIONS, Continued
- --------------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
ACVPCapAp ACVPIncGr
-------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
-------- ---------- ---------- -------- --------- ------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............. $ - - - 3 19 -
Mortality and expense charges
(note 3) ...................... (466) (377) (264) (116) (12) -
-------- --------- --------- ------- ------- ----
Net investment activity ....... (466) (377) (264) (113) 7 -
-------- --------- --------- ------- ------- ----
Proceeds from mutual fund
shares sold ................... 13,758 19,751 16,373 4,066 216 -
Cost of mutual funds sold ........ (15,014) (23,525) (19,447) (3,983) (222) -
-------- --------- --------- ------- ------- ----
Realized gain (loss) on
investments ................. (1,256) (3,774) (3,074) 83 (6) -
Change in unrealized gain (loss)
on investments ................ 33,920 (284) 367 2,755 159 -
-------- --------- --------- ------- ------- ----
Net gain (loss) on investments 32,664 (4,058) (2,707) 2,838 153 -
-------- --------- --------- ------- ------- ----
Reinvested capital gains ......... - 3,128 1,358 - - -
-------- --------- --------- ------- ------- ----
Net change in contract
owners'equity resulting
from operations .......... 32,198 (1,307) (1,613) 2,725 160 -
-------- --------- --------- ------- ------- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............... 4,479 8,237 15,247 2,249 402 -
Transfers between funds .......... (8,485) (10,313) 12,404 20,111 3,509 -
Surrenders ....................... (878) (9,003) (1,216) (4,066) - -
Death benefits (note 4) .......... - - - - - -
Policy loans (net of repayments)
(note 5) ...................... 1,012 4,905 (6,640) 439 (4) -
Deductions for surrender charges
(note 2d) ..................... (50) (1,060) (271) (233) - -
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ..... (3,092) (3,356) (2,969) (1,231) (189) -
-------- --------- --------- ------- ------- ----
Net equity transactions ..... (7,014) (10,590) 16,555 17,269 3,718 -
-------- --------- --------- ------- ------- ----
NET CHANGE IN CONTRACT OWNERS'EQUITY 25,184 (11,897) 14,942 19,994 3,878 -
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD .............. 56,798 68,695 53,753 3,878 - -
-------- --------- --------- ------- ------- ----
CONTRACT OWNERS'EQUITY END OF PERIOD $ 81,982 56,798 68,695 23,872 3,878 -
======== ========= ========= ======= ======= ====
</TABLE>
<TABLE>
<CAPTION>
ACVPInt
---------------------------------
1999 1998 1997
------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............. - 162 234
Mortality and expense charges
(note 3) ...................... (212) (193) (54)
------ ------- --------
Net investment activity ....... (212) (31) 180
------ ------- --------
Proceeds from mutual fund
shares sold ................... 37,510 3,758 6,666
Cost of mutual funds sold ........ (24,655) (2,904) (5,748)
------ ------- --------
Realized gain (loss) on
investments ................. 12,855 854 918
Change in unrealized gain (loss)
on investments ................ 2,032 1,807 2,645
------ ------- --------
Net gain (loss) on investments 14,887 2,661 3,563
------ ------- --------
Reinvested capital gains ......... - 1,666 451
------ ------- --------
Net change in contract
owners'equity resulting
from operations .......... 14,675 4,296 4,194
------ ------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............... 2,872 2,509 4,901
Transfers between funds .......... (9,012) 3,810 (5,070)
Surrenders ....................... (3,025) (1,804) -
Death benefits (note 4) .......... - - -
Policy loans (net of repayments)
(note 5) ...................... (9,396) 175 (2)
Deductions for surrender charges
(note 2d) ..................... (174) (212) -
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ..... (2,663) (1,951) (1,124)
------ ------- --------
Net equity transactions ..... (21,398) 2,527 (1,295)
------ ------- --------
NET CHANGE IN CONTRACT OWNERS'EQUITY (6,723) 6,823 2,899
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD .............. 34,574 27,751 24,852
------ ------- --------
CONTRACT OWNERS'EQUITY END OF PERIOD 27,851 34,574 27,751
====== ======= ========
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- -----------------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
ACVPValue DrySRGro
----------------------------------------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- ------ ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 68 - - 22 109 161
Mortality and expense charges
(note 3) ......................... (58) (32) - (864) (522) (88)
-------- -------- ------ ------- ------- ------
Net investment activity .......... 10 (32) - (842) (413) 73
-------- -------- ------ ------- ------- ------
Proceeds from mutual fund
shares sold ...................... 167 30 - 5,558 9,155 8,378
Cost of mutual funds sold ........... (190) (31) - (2,701) (5,890) (5,531)
-------- -------- ------ ------- ------- ------
Realized gain (loss) on
investments .................... (23) (1) - 2,857 3,265 2,847
Change in unrealized gain (loss)
on investments ................... (788) (410) - 26,276 8,420 5,747
-------- -------- ------ ------- ------- ------
Net gain (loss) on investments ... (811) (411) - 29,133 11,685 8,594
-------- -------- ------ ------- ------- ------
Reinvested capital gains ............ 642 5 - 5,987 2,538 1,233
-------- -------- ------ ------- ------- ------
Net change in contract
owners'equity resulting
from operations ............. (159) (438) - 34,278 13,810 9,900
-------- -------- ------ ------- ------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,576 7,146 - 13,239 2,861 4,271
Transfers between funds ............. - - - 70,107 17,202 7,312
Surrenders .......................... - - - (1,755) (10,639) (819)
Death benefits (note 4) ............. - - - - - -
Policy loans (net of repayments)
(note 5) ......................... - - (1,280) 6,949 (8,265)
Deductions for surrender charges
(note 2d) ........................ - - - (101) (1,253) (182)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (304) (165) - (4,695) (1,826) -
-------- -------- ------ ------- ------- ------
Net equity transactions ......... 1,272 6,981 - 75,515 13,294 2,317
-------- -------- ------ ------- ------- ------
NET CHANGE IN CONTRACT OWNERS'EQUITY ... 1,113 6,543 - 109,793 27,104 12,217
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 6,543 - - 69,959 42,855 30,638
-------- -------- ------ ------- ------- ------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 7,656 6,543 - 179,752 69,959 42,855
======== ======== ====== ======= ======= ======
</TABLE>
<TABLE>
<CAPTION>
DryStkIx
---------------------------------
1999 1998 1997
------- ------- -------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 6,042 5,032 4,753
Mortality and expense charges
(note 3) ......................... (4,374) (2,715) (1,726)
------- ------- -------
Net investment activity .......... 1,668 2,317 3,027
------- ------- -------
Proceeds from mutual fund
shares sold ...................... 85,000 71,990 57,672
Cost of mutual funds sold ........... (41,286) (40,908) (35,667)
------- ------- -------
Realized gain (loss) on
investments .................... 43,714 31,082 22,005
Change in unrealized gain (loss)
on investments ................... 53,685 58,442 44,911
------- ------- -------
Net gain (loss) on investments ... 97,399 89,524 66,916
------- ------- -------
Reinvested capital gains ............ 5,305 909 10,149
------- ------- -------
Net change in contract
owners'equity resulting
from operations ............. 104,372 92,750 80,092
------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 58,338 44,706 34,802
Transfers between funds ............. 180,391 55,914 61,294
Surrenders .......................... (171,591) (1,238) (432)
Death benefits (note 4) ............. - - -
Policy loans (net of repayments)
(note 5) ......................... 112,849 (70,038) (41,395)
Deductions for surrender charges
(note 2d) ........................ (9,854) (146) (96)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (27,882) (15,056) (1,428)
------- ------- -------
Net equity transactions ......... 142,251 14,142 52,745
------- ------- -------
NET CHANGE IN CONTRACT OWNERS'EQUITY ... 246,623 106,892 132,837
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 437,299 330,407 197,570
------- ------- -------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 683,922 437,299 330,407
======= ======= =======
</TABLE>
8
<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
DryCapAp DryGrInc
-------------------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- -------- --------- --------- ---------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C> <C> <C>
Reinvested dividends ................ $ 1,379 1,104 80 56 55 17
Mortality and expense charges
(note 3) ......................... (1,823) (508) (3) (72) (35) --
--------- --------- -------- --------- --------- ---------
Net investment activity .......... (444) 596 77 (16) 20 17
--------- --------- -------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 16,697 11,604 339 368 580 2,217
Cost of mutual funds sold ........... (14,449) (10,443) (343) (347) (597) (2,101)
--------- --------- -------- --------- --------- ---------
Realized gain (loss) on
investments .................... 2,248 1,161 (4) 21 (17) 116
Change in unrealized gain (loss)
on investments ................... 19,555 21,032 (2) 1,050 236 (48)
--------- --------- -------- --------- --------- ---------
Net gain (loss) on investments ... 21,803 22,193 (6) 1,071 219 68
--------- --------- -------- --------- --------- ---------
Reinvested capital gains ............ 922 3 7 342 67 66
--------- --------- -------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. 22,281 22,792 78 1,397 306 151
--------- --------- -------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 16,973 1,324 -- 1,932 6,636 143
Transfers between funds ............. 9,636 168,936 10,711 1,587 -- 1,402
Surrenders .......................... (275) -- -- -- (491) --
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... 870 -- -- (4) 522 (855)
Deductions for surrender charges
(note 2d) ........................ (16) -- -- -- (58) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (3,174) (839) (358) (969) (399) --
--------- --------- -------- --------- --------- ---------
Net equity transactions ........ 24,014 169,421 10,353 2,546 6,210 690
--------- --------- -------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 46,295 192,213 10,431 3,943 6,516 841
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 202,644 10,431 -- 7,357 841 --
--------- --------- -------- --------- --------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 248,939 202,644 10,431 11,300 7,357 841
========= ========= ======== ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
FidVIPEI
------------------------------------
1999 1998 1997
-------- --------- --------
INVESTMENT ACTIVITY:
<S> <C> <C> <C>
Reinvested dividends ................ 6,187 6,967 6,340
Mortality and expense charges
(note 3) ......................... (3,266) (3,240) (2,750)
-------- --------- --------
Net investment activity .......... 2,921 3,727 3,590
-------- --------- --------
Proceeds from mutual fund
shares sold ...................... 150,584 178,067 38,671
Cost of mutual funds sold ........... (121,880) (146,020) (30,850)
-------- --------- --------
Realized gain (loss) on
investments .................... 28,704 32,047 7,821
Change in unrealized gain (loss)
on investments ................... (24,252) (19,152) 59,409
-------- --------- --------
Net gain (loss) on investments ... 4,452 12,895 67,230
-------- --------- --------
Reinvested capital gains ............ 13,676 24,794 31,876
-------- --------- --------
Net change in contract
owners'equity resulting
from operations ............. 21,049 41,416 102,696
-------- --------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 38,359 35,661 47,085
Transfers between funds ............. 21,716 (133,030) 129,355
Surrenders .......................... (80,650) (836) (837)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... 4,749 (2,005) (1,733)
Deductions for surrender charges
(note 2d) ........................ (4,632) (98) (186)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (22,823) (20,482) (18,859)
-------- --------- --------
Net equity transactions ........ (43,281) (120,790) 154,825
-------- --------- --------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. (22,232) (79,374) 257,521
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 417,611 496,985 239,464
-------- --------- --------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 395,379 417,611 496,985
======== ========= ========
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
FidVIPGr FidVIPHI
------------------------------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
----------- --------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 1,154 2,130 2,197 4,513 4,477 2,716
Mortality and expense charges
(note 3) ......................... (6,665) (3,719) (2,912) (504) (355) (139)
----------- --------- --------- --------- ---------- ---------
Net investment activity .......... (5,511) (1,589) (715) 4,009 4,122 2,577
----------- --------- --------- --------- ---------- ---------
Proceeds from mutual fund
shares sold ...................... 79,468 29,372 48,582 13,267 11,788 4,631
Cost of mutual funds sold ........... (49,199) (23,004) (42,413) (13,631) (10,748) (4,489)
----------- --------- --------- --------- ---------- ---------
Realized gain (loss) on
investments .................... 30,269 6,368 6,169 (364) 1,040 142
Change in unrealized gain (loss)
on investments ................... 185,017 107,317 60,938 2,002 (10,637) 4,024
----------- --------- --------- --------- ---------- ---------
Net gain (loss) on investments ... 215,286 113,685 67,107 1,638 (9,597) 4,166
----------- --------- --------- --------- ---------- ---------
Reinvested capital gains ............ 72,571 55,712 9,833 169 2,845 336
----------- --------- --------- --------- ---------- ---------
Net change in contract
owners'equity resulting
from operations ............. 282,346 167,808 76,225 5,816 (2,630) 7,079
----------- --------- --------- --------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 88,550 60,527 63,266 5,143 11,217 8,521
Transfers between funds ............. 284,745 17,221 (3,635) 48,257 (6,831) 11,758
Surrenders .......................... (68,185) (10,674) (2,747) - (397) 333
Death benefits (note 4) ............. - - - - - -
Policy loans (net of repayments)
(note 5) ......................... (15,221) (194) (18,648) (824) (540) (3,725)
Deductions for surrender charges
(note 2d) ........................ (3,916) (1,257) (611) - (47) 74
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (44,939) (23,389) (9,218) (3,482) (3,438) (3,408)
----------- --------- --------- --------- ---------- ---------
Net equity transactions ........ 241,034 42,234 28,407 49,094 (36) 13,553
----------- --------- --------- --------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 523,380 210,042 104,632 54,910 (2,666) 20,632
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 626,463 416,421 311,789 55,873 58,539 37,907
----------- --------- --------- --------- ---------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 1,149,843 626,463 416,421 110,783 55,873 58,539
=========== ========= ========= ========= ========== =========
</TABLE>
<TABLE>
<CAPTION>
FidVIPOv
------------------------------------------
1999 1998 1997
--------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 343 335 360
Mortality and expense charges
(note 3) ......................... (198) (153) (61)
--------- -------- --------
Net investment activity .......... 145 182 299
--------- -------- --------
Proceeds from mutual fund
shares sold ...................... 2,802 1,816 8,615
Cost of mutual funds sold ........... (2,437) (1,637) (7,746)
--------- -------- --------
Realized gain (loss) on
investments .................... 365 179 869
Change in unrealized gain (loss)
on investments ................... 9,665 503 (618)
--------- -------- --------
Net gain (loss) on investments ... 10,030 682 251
--------- -------- --------
Reinvested capital gains ............ 554 987 1,428
--------- -------- --------
Net change in contract
owners'equity resulting
from operations ............. 10,729 1,851 1,978
--------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 8,077 3,023 3,857
Transfers between funds ............. 6,491 2,264 (5,213)
Surrenders .......................... (3,970) - (81)
Death benefits (note 4) ............. - - -
Policy loans (net of repayments)
(note 5) ......................... 1,577 (1,604) (2,330)
Deductions for surrender charges
(note 2d) ........................ (228) - (18)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,270) (1,083) (748)
--------- -------- --------
Net equity transactions ........ 10,677 2,600 (4,533)
--------- -------- --------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 21,406 4,451 (2,555)
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 21,834 17,383 19,938
--------- -------- --------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 43,240 21,834 17,383
========= ======== ========
</TABLE>
10
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- -----------------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
FidVIPAM FidVIPCon
-----------------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
--------- -------- --------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 3,167 4,043 3,614 2,438 2,496 2,011
Mortality and expense charges
(note 3) ......................... (810) (823) (414) (4,614) (2,561) (1,607)
--------- -------- --------- ---------- ---------- ---------
Net investment activity .......... 2,357 3,220 3,200 (2,176) (65) 404
--------- -------- --------- ---------- ---------- ---------
Proceeds from mutual fund
shares sold ...................... 20,048 52,116 42,295 143,774 48,520 7,477
Cost of mutual funds sold ........... (17,591) (46,800) (36,365) (85,691) (31,647) (5,308)
--------- -------- --------- ---------- ---------- ---------
Realized gain (loss) on
investments .................... 2,457 5,316 5,930 58,083 16,873 2,169
Change in unrealized gain (loss)
on investments ................... 1,040 (5,723) 6,372 52,374 77,750 51,877
--------- -------- --------- ---------- ---------- ---------
Net gain (loss) on investments ... 3,497 (407) 12,302 110,457 94,623 54,046
--------- -------- --------- ---------- ---------- ---------
Reinvested capital gains ............ 4,012 12,128 9,065 17,876 18,366 5,315
--------- -------- --------- ---------- ---------- ---------
Net change in contract
owners'equity resulting
from operations ............. 9,866 14,941 24,567 126,157 112,924 59,765
--------- -------- --------- ---------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,307 9,641 8,749 35,053 21,970 18,570
Transfers between funds ............. 6,926 1,888 20,102 131,699 22,252 164,277
Surrenders .......................... (114,038) -- -- (74,832) (3,320) 360
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... 104,742 (48,271) (31,692) (11,129) (9,514) (5,718)
Deductions for surrender charges
(note 2d) ........................ (6,549) -- -- (4,298) (391) 80
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (4,274) (3,950) (3,114) (15,216) (7,785) (2,157)
--------- -------- --------- ---------- ---------- ---------
Net equity transactions ........ (10,886) (40,692) (5,955) 61,277 23,212 175,412
--------- -------- --------- ---------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. (1,020) (25,751) 18,612 187,434 136,136 235,177
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 95,340 121,091 102,479 488,648 352,512 117,335
--------- -------- --------- ---------- ---------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 94,320 95,340 121,091 676,082 488,648 352,512
========= ======== ========= ========== ========== =========
</TABLE>
<TABLE>
<CAPTION>
FidVIPGrOp
-----------------------------------
1999 1998 1997
--------- ---------- --------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 85 9 -
Mortality and expense charges
(note 3) ......................... (84) (32) -
--------- ---------- --------
Net investment activity .......... 1 (23) -
--------- ---------- --------
Proceeds from mutual fund
shares sold ...................... 6,658 918 -
Cost of mutual funds sold ........... (6,020) (910) -
--------- ---------- --------
Realized gain (loss) on
investments .................... 638 8 -
Change in unrealized gain (loss)
on investments ................... (381) 909 -
--------- ---------- --------
Net gain (loss) on investments ... 257 917 -
--------- ---------- --------
Reinvested capital gains ............ 160 33 -
--------- ---------- --------
Net change in contract
owners'equity resulting
from operations ............. 418 927 -
--------- ---------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 3,097 3,849 -
Transfers between funds ............. 4,979 4,426 -
Surrenders .......................... (3,154) -- -
Death benefits (note 4) ............. -- -- -
Policy loans (net of repayments)
(note 5) ......................... 662 (832) -
Deductions for surrender charges
(note 2d) ........................ (181) -- -
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,003) (296) -
--------- ---------- --------
Net equity transactions ........ 4,400 7,147 -
--------- ---------- --------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 4,818 8,074 -
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 8,074 -- -
--------- ---------- --------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 12,892 8,074 -
========= ========== ========
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
MSEmMkt NSATCapAp
---------------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
---------- ------ ------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 87 - - 50,432 56,511 57,171
Mortality and expense charges
(note 3) ......................... (3) - - (63,989) (54,976) (44,903)
---------- ------ ------ ---------- ---------- ----------
Net investment activity .......... 84 - - (13,557) 1,535 12,268
---------- ------ ------ ---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 5 - - 1,262,611 466,891 227,802
Cost of mutual funds sold ........... (5) - - (496,290) (201,555) (125,614)
---------- ------ ------ ---------- ---------- ----------
Realized gain (loss) on
investments .................... - - - 766,321 265,336 102,188
Change in unrealized gain (loss)
on investments ................... 9 - - (967,555) 1,310,092 1,282,125
---------- ------ ------ ---------- ---------- ----------
Net gain (loss) on investments ... 9 - - (201,234) 1,575,428 1,384,313
---------- ------ ------ ---------- ---------- ----------
Reinvested capital gains ............ - - - 507,155 221,169 131,565
---------- ------ ------ ---------- ---------- ----------
Net change in contract
owners'equity resulting
from operations ............. 93 - - 292,364 1,798,132 1,528,146
---------- ------ ------ ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 75 - - 916,931 706,503 576,936
Transfers between funds ............. 576 - - (311,161) 82,239 35,346
Surrenders .......................... - - - (369,726) (232,748) (128,728)
Death benefits (note 4) ............. - - - (10,428) (52,012) (324)
Policy loans (net of repayments)
(note 5) ......................... - - - (270,092) (192,222) (158,076)
Deductions for surrender charges
(note 2d) ........................ - - - (21,233) (27,407) (28,634)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (27) - - (445,597) (304,373) (117,273)
---------- ------ ------ ---------- ---------- ----------
Net equity transactions ........ 624 - - (511,306) (20,020) 179,247
---------- ------ ------ ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 717 - - (218,942) 1,778,112 1,707,393
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. - - - 7,989,325 6,211,213 4,503,820
---------- ------ ------ ---------- ---------- ----------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 717 - - 7,770,383 7,989,325 6,211,213
========== ====== ====== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
NSATGvtBd
----------------------------------------
1999 1998 1997
---------- ----------- ----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 97,692 99,695 93,642
Mortality and expense charges
(note 3) ......................... (14,494) (15,337) (12,402)
---------- ----------- ----------
Net investment activity .......... 83,198 84,358 81,240
---------- ----------- ----------
Proceeds from mutual fund
shares sold ...................... 520,204 208,750 196,884
Cost of mutual funds sold ........... (491,856) (194,080) (200,136)
---------- ----------- ----------
Realized gain (loss) on
investments .................... 28,348 14,670 (3,252)
Change in unrealized gain (loss)
on investments ................... (174,887) 29,475 48,181
---------- ----------- ----------
Net gain (loss) on investments ... (146,539) 44,145 44,929
---------- ----------- ----------
Reinvested capital gains ............ 3,291 9,470 -
---------- ----------- ----------
Net change in contract
owners'equity resulting
from operations ............. (60,050) 137,973 126,169
---------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 268,752 575,305 668,858
Transfers between funds ............. (127,763) (30,016) (92,915)
Surrenders .......................... (185,683) (61,261) (50,560)
Death benefits (note 4) ............. (2,429) - (360)
Policy loans (net of repayments)
(note 5) ......................... (11,574) (17,667) (41,260)
Deductions for surrender charges
(note 2d) ........................ (10,664) (7,214) (11,246)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (148,284) (255,843) (449,664)
---------- ----------- ----------
Net equity transactions ........ (217,645) 203,304 22,853
---------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. (277,695) 341,277 149,022
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 1,977,998 1,636,721 1,487,699
---------- ----------- ----------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 1,700,303 1,977,998 1,636,721
========== =========== ==========
</TABLE>
12
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
NSATMyMkt NSATSmCapV
---------------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- --------- --------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 8,900 17,712 18,569 - - -
Mortality and expense charges
(note 3) ......................... (1,417) (2,877) (2,145) (61) - -
--------- --------- --------- --------- -------- ------
Net investment activity .......... 7,483 14,835 16,424 (61) - -
--------- --------- --------- --------- -------- ------
Proceeds from mutual fund
shares sold ...................... 358,489 213,696 143,558 48,396 - -
Cost of mutual funds sold ........... (358,489) (213,696) (143,558) (48,769) - -
--------- --------- --------- --------- -------- ------
Realized gain (loss) on
investments .................... - - - (373) - -
Change in unrealized gain (loss)
on investments ................... - - - (441) - -
--------- --------- --------- --------- -------- ------
Net gain (loss) on investments ... - - - (814) - -
--------- --------- --------- --------- -------- ------
Reinvested capital gains ............ - - - 4,831 - -
--------- --------- --------- --------- -------- ------
Net change in contract
owners'equity resulting
from operations ............. 7,483 14,835 16,424 3,956 - -
--------- --------- --------- --------- -------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 76,835 17,951 134,226 5,032 - -
Transfers between funds ............. 208,709 7,464 (45,033) 25,094 - -
Surrenders .......................... (59,742) (21,098) (4,916) - - -
Death benefits (note 4) ............. - 1 - - - -
Policy loans (net of repayments)
(note 5) ......................... (9,203) 4,580 (5,585) - - -
Deductions for surrender charges
(note 2d) ........................ (35) (2,484) (1,093) - - -
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (11,028) (48,312) (139,235) (134) - -
--------- --------- --------- --------- -------- ------
Net equity transactions ........ 205,536 (41,898) (61,636) 29,992 - -
--------- --------- --------- --------- -------- ------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 213,019 (27,063) (45,212) 33,948 - -
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 325,058 352,121 397,333 - - -
--------- --------- --------- --------- -------- ------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 538,077 325,058 352,121 33,948 - -
========= ========= ========= ========= ======== ======
</TABLE>
<TABLE>
<CAPTION>
NSATSmCo
-----------------------------------
1999 1998 1997
-------- -------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ - - -
Mortality and expense charges
(note 3) ......................... (296) (390) (209)
-------- -------- ---------
Net investment activity .......... (296) (390) (209)
-------- -------- ---------
Proceeds from mutual fund
shares sold ...................... 16,973 28,399 9,361
Cost of mutual funds sold ........... (14,638) (26,375) (8,181
-------- -------- ---------
Realized gain (loss) on
investments .................... 2,335 2,024 1,180
Change in unrealized gain (loss)
on investments ................... 12,177 (4,434) 5,948
-------- -------- ---------
Net gain (loss) on investments ... 14,512 (2,410) 7,128
-------- -------- ---------
Reinvested capital gains ............ 2,834 - 1,655
-------- -------- ---------
Net change in contract
owners'equity resulting
from operations ............. 17,050 (2,800) 8,574
-------- -------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 7,905 7,939 11,847
Transfers between funds ............. 7,081 (17,351) 2,997
Surrenders .......................... - (1,102) (27)
Death benefits (note 4) ............. - - -
Policy loans (net of repayments)
(note 5) ......................... (929) (2,666) (2,640)
Deductions for surrender charges
(note 2d) ........................ - (130) (6)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (2,659) (2,320) -
-------- -------- ---------
Net equity transactions ........ 11,398 (15,630) 12,171
-------- -------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 28,448 (18,430) 20,745
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 42,336 60,766 40,021
-------- -------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 70,784 42,336 60,766
======== ======== =========
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ---------------------------------------
STATEMENTS OF OPERATIONS, Continued
- ---------------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
NSATTotRe NBAMTBal
-----------------------------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
------------ ---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 123,483 184,659 221,608 23,703 33,067 22,402
Mortality and expense charges
(note 3) ......................... (151,759) (141,818) (122,321) (11,255) (11,829) (10,350)
------------ ---------- ---------- ---------- ----------- ----------
Net investment activity .......... (28,276) 42,841 99,287 12,448 21,238 12,052
------------ ---------- ---------- ---------- ----------- ----------
Proceeds from mutual fund
shares sold ...................... 2,355,848 1,085,788 1,020,699 219,706 210,279 155,218
Cost of mutual funds sold ........... (1,267,480) (618,881) (706,961) (197,111) (210,334) (142,708)
------------ ---------- ---------- ---------- ----------- ----------
Realized gain (loss) on
investments .................... 1,088,368 466,907 313,738 22,595 (55) 12,510
Change in unrealized gain (loss)
on investments ................... (633,345) 1,557,136 2,648,777 356,062 (110,079) 139,695
------------ ---------- ---------- ---------- ----------- ----------
Net gain (loss) on investments ... 455,023 2,024,043 2,962,515 378,657 (110,134) 152,205
------------ ---------- ---------- ---------- ----------- ----------
Reinvested capital gains ............ 694,887 738,779 518,789 35,116 232,254 57,499
------------ ---------- ---------- ---------- ----------- ----------
Net change in contract
owners'equity resulting
from operations ............. 1,121,634 2,805,663 3,580,591 426,221 143,358 221,756
------------ ---------- ---------- ---------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,049,001 2,325,426 2,521,846 168,578 200,479 176,325
Transfers between funds ............. (681,338) (61,885) (308,827) (108,656) (92,088) (62,137)
Surrenders .......................... (983,114) (585,152) (451,045) (69,176) (78,898) (42,668)
Death benefits (note 4) ............. (125,106) (62,497) (27,649) (25,121) -- --
Policy loans (net of repayments)
(note 5) ......................... (441,403) (458,542) (473,902) (16,492) (35,809) (49,326)
Deductions for surrender charges
(note 2d) ........................ (56,460) (68,905) (100,329) (3,973) (9,291) (9,491)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,153,250) (1,193,693) (1,217,219) (91,724) (75,520) (49,735)
------------ ---------- ---------- ---------- ----------- ----------
Net equity transactions ........ (1,391,670) (105,248) (57,125) (146,564) (91,127) (37,032)
------------ ---------- ---------- ---------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. (270,036) 2,700,415 3,523,466 279,657 52,231 184,724
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 18,984,736 16,284,321 12,760,855 1,441,951 1,389,720 1,204,996
------------ ---------- ---------- ---------- ----------- ----------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 18,714,700 18,984,736 16,284,321 1,721,608 1,441,951 1,389,720
============ ========== ========== ========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
NBAMTGro
-----------------------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ -- -- --
Mortality and expense charges
(note 3) ......................... (512) (359) (295)
--------- --------- ---------
Net investment activity .......... (512) (359) (295)
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 10,917 15,315 36,777
Cost of mutual funds sold ........... (10,815) (14,646) (33,554)
--------- --------- ---------
Realized gain (loss) on
investments .................... 102 669 3,223
Change in unrealized gain (loss)
on investments ................... 30,035 (6,710) 7,904
--------- --------- ---------
Net gain (loss) on investments ... 30,137 (6,041) 11,127
--------- --------- ---------
Reinvested capital gains ............ 3,161 15,182 4,858
--------- --------- ---------
Net change in contract
owners'equity resulting
from operations ............. 32,786 8,782 15,690
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 9,886 10,274 11,927
Transfers between funds ............. 8,223 (5,544) (9,110)
Surrenders .......................... (3,023) (9,851) (2,224)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (296) 6,335 (15,013)
Deductions for surrender charges
(note 2d) ........................ (174) (1,160) (495)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (4,673) (4,235) (3,519)
--------- --------- ---------
Net equity transactions ........ 9,943 (4,181) (18,434)
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 42,729 4,601 (2,744)
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 62,482 57,881 60,625
--------- --------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 105,211 62,482 57,881
========= ========= =========
</TABLE>
14
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ------------------------------------------
STATEMENTS OF OPERATIONS, Continued
- ------------------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
NBAMTGuard NBAMTLMat
-------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ -- -- - 225 645 516
Mortality and expense charges
(note 3) ......................... (8) (1) - (31) (106) (552)
------ ------ ------ ------ ------ ------
Net investment activity .......... (8) (1) - 194 539 (36)
------ ------ ------ ------ ------ ------
Proceeds from mutual fund
shares sold ...................... 564 440 - 8,653 915 3,804
Cost of mutual funds sold ........... (534) (435) - (8,734) (957) (3,809)
------ ------ ------ ------ ------ ------
Realized gain (loss) on
investments .................... 30 5 - (81) (42) (5)
Change in unrealized gain (loss)
on investments ................... 66 29 - (110) (148) 143
------ ------ ------ ------ ------ ------
Net gain (loss) on investments ... 96 34 - (191) (190) 138
------ ------ ------ ------ ------ ------
Reinvested capital gains ............ -- -- - -- -- --
------ ------ ------ ------ ------ ------
Net change in contract
owners'equity resulting
from operations ............. 88 33 - 3 349 102
------ ------ ------ ------ ------ ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 213 56 - 1,410 1,277 2,269
Transfers between funds ............. 533 432 - -- -- (2,841)
Surrenders .......................... -- -- - -- -- --
Death benefits (note 4) ............. -- -- - -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- - (7,950) 3 (613)
Deductions for surrender charges
(note 2d) ........................ -- -- - -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (40) (9) - (629) (425) --
------ ------ ------ ------ ------ ------
Net equity transactions ........ 706 479 - (7,169) 855 (1,185)
------ ------ ------ ------ ------ ------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 794 512 - (7,166) 1,204 (1,083)
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 512 -- - 11,220 10,016 11,099
------ ------ ------ ------ ------ ------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $1,306 512 - 4,054 11,220 10,016
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
NBAMTPart
----------------------------------
1999 1998 1997
-------- ------- ------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 1,540 542 209
Mortality and expense charges
(note 3) ......................... (1,105) (807) (364)
-------- ------- ------
Net investment activity .......... 435 (265) (155)
-------- ------- ------
Proceeds from mutual fund
shares sold ...................... 125,097 69,018 4,174
Cost of mutual funds sold ........... (122,708) (55,703) (2,766)
-------- ------- ------
Realized gain (loss) on
investments .................... 2,389 13,315 1,408
Change in unrealized gain (loss)
on investments ................... 1,608 (27,406) 20,920
-------- ------- ------
Net gain (loss) on investments ... 3,997 (14,091) 22,328
-------- ------- ------
Reinvested capital gains ............ 2,679 17,062 3,214
-------- ------- ------
Net change in contract
owners'equity resulting
from operations ............. 7,111 2,706 25,387
-------- ------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 20,665 19,544 13,757
Transfers between funds ............. 54,078 3,492 40,368
Surrenders .......................... (75,056) (11,127) (29)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... 5,523 (12,996) 1,787
Deductions for surrender charges
(note 2d) ........................ (4,310) (1,310) (6)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (8,442) (5,165) (1,852)
-------- ------- ------
Net equity transactions ........ (7,542) (7,562) 54,025
-------- ------- ------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. (431) (4,856) 79,412
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 129,095 133,951 54,539
-------- ------- ------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 128,664 129,095 133,951
======== ======= =======
</TABLE>
(Continued)
15
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY, CONTINUED
- ------------------------------------------
STATEMENTS OF OPERATIONS, Continued
- ------------------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
OppBdFd OppGISec
----------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
-------- ------- ------- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 538 70 301 715 1,229 476
Mortality and expense charges
(note 3) ......................... (80) (102) (7) (674) (386) (139)
-------- ------- ------- -------- ---------- ---------
Net investment activity .......... 458 (32) 294 41 843 337
-------- ------- ------- -------- ---------- ---------
Proceeds from mutual fund
shares sold ...................... 8,599 805 5,913 13,022 10,115 1,007
Cost of mutual funds sold ........... (8,981) (774) (5,797) (9,369) (7,187) (783)
-------- ------- ------- -------- ---------- ---------
Realized gain (loss) on
investments .................... (382) 31 116 3,653 2,928 224
Change in unrealized gain (loss)
on investments ................... (454) 242 (18) 48,273 (402) 7,389
-------- ------- ------- -------- ---------- ---------
Net gain (loss) on investments ... (836) 273 98 51,926 2,526 7,613
-------- ------- ------- -------- ---------- ---------
Reinvested capital gains ............ 52 63 17 2,005 4,626 --
-------- ------- ------- -------- ---------- ---------
Net change in contract
owners'equity resulting
from operations ............. (326) 304 409 53,972 7,995 7,950
-------- ------- ------- -------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,690 13 762 6,214 9,045 11,574
Transfers between funds ............. (7,281) 7,798 (6,410) 75,115 2,264 15,543
Surrenders .......................... -- -- (75) (3,066) (3,712) (39)
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (122) (277) 1,767 (7,839) (727) (172)
Deductions for surrender charges
(note 2d) ........................ -- -- (17) (176) (437) (9)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,551) (680) (313) (3,174) (2,073) (1,248)
-------- ------- ------- -------- ---------- ---------
Net equity transactions ........ (6,264) 6,854 (4,286) 67,074 4,360 25,649
-------- ------- ------- -------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. (6,590) 7,158 (3,877) 121,046 12,355 33,599
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 11,242 4,084 7,961 68,885 56,530 22,931
-------- ------- ------- -------- ---------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 4,652 11,242 4,084 189,931 68,885 56,530
======== ======= ======= ======== ========== =========
</TABLE>
<TABLE>
<CAPTION>
OppGro
-----------------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 45 23 --
Mortality and expense charges
(note 3) ......................... (193) (36) --
--------- --------- --------
Net investment activity .......... (148) (13) --
--------- --------- --------
Proceeds from mutual fund
shares sold ...................... 3,428 1,325 --
Cost of mutual funds sold ........... (2,902) (1,165) --
--------- --------- --------
Realized gain (loss) on
investments .................... 526 160 --
Change in unrealized gain (loss)
on investments ................... 11,947 546 --
--------- --------- --------
Net gain (loss) on investments ... 12,473 706 --
--------- --------- --------
Reinvested capital gains ............ 490 280 --
--------- --------- --------
Net change in contract
owners'equity resulting
from operations ............. 12,815 973 --
--------- --------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,995 4,311 75
Transfers between funds ............. 62,023 4,149 427
Surrenders .......................... -- -- --
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (68) -- --
Deductions for surrender charges
(note 2d) ........................ -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,376) (369) --
--------- --------- --------
Net equity transactions ........ 63,574 8,091 502
--------- --------- --------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 76,389 9,064 502
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 9,566 502 --
--------- --------- --------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 85,955 9,566 502
========= ========= ========
</TABLE>
16
<PAGE> 16
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
OppMult StOpp2
-----------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- ------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 317 74 226 -- 314 342
Mortality and expense charges
(note 3) ......................... (78) (47) (5) (1,191) (870) (480)
-------- -------- -------- --------- ---------- ---------
Net investment activity .......... 239 27 221 (1,191) (556) (138)
-------- -------- -------- --------- ---------- ---------
Proceeds from mutual fund
shares sold ...................... 177 -- 32 72,761 18,389 6,165
Cost of mutual funds sold ........... (151) -- (30) (58,513) (13,936) (4,969)
-------- -------- -------- --------- ---------- ---------
Realized gain (loss) on
investments .................... 26 -- 2 14,248 4,453 1,196
Change in unrealized gain (loss)
on investments ................... 307 36 484 14,865 (4,471) 11,339
-------- -------- -------- --------- ---------- ---------
Net gain (loss) on investments ... 333 36 486 29,113 (18) 12,535
-------- -------- -------- --------- ---------- ---------
Reinvested capital gains ............ 458 431 159 15,628 16,130 7,197
-------- -------- -------- --------- ---------- ---------
Net change in contract
owners'equity resulting
from operations ............. 1,030 494 866 43,550 15,556 19,594
-------- -------- -------- --------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,546 1,130 670 16,088 14,991 20,886
Transfers between funds ............. -- -- 1,962 (17,922) 7,055 20,468
Surrenders .......................... -- -- -- (3,157) (5,800) (1,798)
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (867) (4,632) (2,348)
Deductions for surrender charges
(note 2d) ........................ -- -- -- (181) (683) (400)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (619) (404) -- (9,022) (5,924) (475)
-------- -------- -------- --------- ---------- ---------
Net equity transactions ........ 927 726 2,632 (15,061) 5,007 36,333
-------- -------- -------- --------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 1,957 1,220 3,498 28,489 20,563 55,927
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 8,942 7,722 4,224 135,650 115,087 59,160
-------- -------- -------- --------- ---------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 10,899 8,942 7,722 164,139 135,650 115,087
======== ======== ======== ========= ========== =========
</TABLE>
<TABLE>
<CAPTION>
StDisc2
-----------------------------------
1999 1998 1997
--------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ -- -- --
Mortality and expense charges
(note 3) ......................... (174) (190) (67)
--------- --------- --------
Net investment activity .......... (174) (190) (67)
--------- --------- --------
Proceeds from mutual fund
shares sold ...................... 5,036 20,350 5,639
Cost of mutual funds sold ........... (5,748) (19,537) (6,370)
--------- --------- --------
Realized gain (loss) on
investments .................... (712) 813 (731)
Change in unrealized gain (loss)
on investments ................... (845) (1,342) 3,473
--------- --------- --------
Net gain (loss) on investments ... (1,557) (529) 2,742
--------- --------- --------
Reinvested capital gains ............ 3,517 367 --
--------- --------- --------
Net change in contract
owners'equity resulting
from operations ............. 1,786 (352) 2,675
--------- --------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,606 6,563 4,874
Transfers between funds ............. 3,108 (16,445) 9,677
Surrenders .......................... -- (1,636) (98)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... 1,246 (245) (290)
Deductions for surrender charges
(note 2d) ........................ -- (193) (22)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,182) (918) (438)
--------- --------- --------
Net equity transactions ........ 5,778 (12,874) 13,703
--------- --------- --------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 7,564 (13,226) 16,378
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 18,874 32,100 15,722
--------- --------- --------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 26,438 18,874 32,100
========= ========= ========
</TABLE>
(Continued)
17
<PAGE> 17
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY, CONTINUED
- -----------------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
StIntStk2 VEWrldBd
------------------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
--------- -------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 29 149 238 68 15 55
Mortality and expense charges
(note 3) ......................... (205) (1,320) (24) (14) (31) (1)
--------- -------- -------- --------- -------- ---------
Net investment activity .......... (176) (1,171) 214 54 (16) 54
--------- -------- -------- --------- -------- ---------
Proceeds from mutual fund
shares sold ...................... 7,009 1,066 2,020 66 129 197
Cost of mutual funds sold ........... (8,522) (1,378) (2,347) (67) (128) (205)
--------- -------- -------- --------- -------- ---------
Realized gain (loss) on
investments .................... (1,513) (312) (327) (1) 1 (8)
Change in unrealized gain (loss)
on investments ................... 37,384 (546) (2,400) (236) 184 (12)
--------- -------- -------- --------- -------- ---------
Net gain (loss) on investments ... 35,871 (858) (2,727) (237) 185 (20)
--------- -------- -------- --------- -------- ---------
Reinvested capital gains ............ -- -- 356 30 -- --
--------- -------- -------- --------- -------- ---------
Net change in contract
owners'equity resulting
from operations ............. 35,695 (2,029) (2,157) (153) 169 34
--------- -------- -------- --------- -------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,572 3,584 2,885 371 204 170
Transfers between funds ............. 59,883 -- (1,813) -- -- --
Surrenders .......................... -- (344) -- -- -- --
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (6,007) -- -- -- -- --
Deductions for surrender charges
(note 2d) ........................ -- (40) -- -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (955) (601) (341) (314) (199) (300)
--------- -------- -------- --------- -------- ---------
Net equity transactions ........ 54,493 2,599 731 57 5 (130)
--------- -------- -------- --------- -------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 90,188 570 (1,426) (96) 174 (96)
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 12,426 11,856 13,282 1,776 1,602 1,698
--------- -------- -------- --------- -------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 102,614 12,426 11,856 1,680 1,776 1,602
========= ======== ======== ========= ======== =========
</TABLE>
<TABLE>
<CAPTION>
VEWrldEMkt
-------------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ -- 48 1
Mortality and expense charges
(note 3) ......................... (68) (23) (1)
--------- --------- ---------
Net investment activity .......... (68) 25 --
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 1,781 2,898 1,348
Cost of mutual funds sold ........... (2,591) (4,179) (1,356)
--------- --------- ---------
Realized gain (loss) on
investments .................... (810) (1,281) (8)
Change in unrealized gain (loss)
on investments ................... 9,694 (1,171) (2,290)
--------- --------- ---------
Net gain (loss) on investments ... 8,884 (2,452) (2,298)
--------- --------- ---------
Reinvested capital gains ............ -- 43 --
--------- --------- ---------
Net change in contract
owners'equity resulting
from operations ............. 8,816 (2,384) (2,298)
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 863 218 35
Transfers between funds ............. 12,547 (1) 11,824
Surrenders .......................... -- (248) --
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (188) 537 (793)
Deductions for surrender charges
(note 2d) ........................ -- (29) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (349) (2,697) --
--------- --------- ---------
Net equity transactions ........ 12,873 (2,220) 11,066
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 21,689 (4,604) 8,768
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 4,164 8,768 --
--------- --------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 25,853 4,164 8,768
========= ========= =========
</TABLE>
18
<PAGE> 18
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY, CONTINUED
- ----------------------------------------
STATEMENTS OF OPERATIONS, Continued
- ----------------------------------------
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
VEWrldHAs VKMSRESec
---------------------------------------------------------------
1999 1998 1997 1999 1998 1997
------- ------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 83 51 360 1,317 38 550
Mortality and expense charges
(note 3) ......................... (44) (140) (33) (136) (166) (43)
------- ------- -------- --------- --------- ---------
Net investment activity .......... 39 (89) 327 1,181 (128) 507
------- ------- -------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 3,182 8,612 17,573 12,172 11,641 9,603
Cost of mutual funds sold ........... (5,395) (9,488) (18,952) (15,219) (12,855) (7,795)
------- ------- -------- --------- --------- ---------
Realized gain (loss) on
investments .................... (2,213) (876) (1,379) (3,047) (1,214) 1,808
Change in unrealized gain (loss)
on investments ................... 3,275 (3,152) (566) 1,207 (3,184) (426)
------- ------- -------- --------- --------- ---------
Net gain (loss) on investments ... 1,062 (4,028) (1,945) (1,840) (4,398) 1,382
------- ------- -------- --------- --------- ---------
Reinvested capital gains ............ -- 1,261 487 -- 378 1,812
------- ------- -------- --------- --------- ---------
Net change in contract
owners'equity resulting
from operations ............. 1,101 (2,856) (1,131) (659) (4,148) 3,701
------- ------- -------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,211 1,314 151 3,249 3,108 4,935
Transfers between funds ............. (696) (6,736) 12,753 (8,997) 8,994 9,274
Surrenders .......................... -- (232) (12,552) (45) (2,261) (27)
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (612) (1,534) 796 (283) (4,523) (1,533)
Deductions for surrender charges
(note 2d) ........................ -- (27) (2,792) (3) (266) (6)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (788) (579) (521) (1,059) (1,008) 11
------- ------- -------- --------- --------- ---------
Net equity transactions ........ (885) (7,794) (2,165) (7,138) 4,044 12,654
------- ------- -------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 216 (10,650) (3,296) (7,797) (104) 16,355
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 5,472 16,122 19,418 20,855 20,959 4,604
------- ------- -------- --------- --------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 5,688 5,472 16,122 13,058 20,855 20,959
======= ======= ======== ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
WPIntEq
--------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 317 156 192
Mortality and expense charges
(note 3) ......................... (193) (169) (70)
--------- --------- ---------
Net investment activity .......... 124 (13) 122
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 10,078 5,243 7,011
Cost of mutual funds sold ........... (10,221) (5,782) (6,378)
--------- --------- ---------
Realized gain (loss) on
investments .................... (143) (539) 633
Change in unrealized gain (loss)
on investments ................... 12,211 1,522 (3,096)
--------- --------- ---------
Net gain (loss) on investments ... 12,068 983 (2,463)
--------- --------- ---------
Reinvested capital gains ............ -- -- 1,329
--------- --------- ---------
Net change in contract
owners'equity resulting
from operations ............. 12,192 970 (1,012)
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 7,449 7,022 6,856
Transfers between funds ............. 4,634 (4,285) 3,823
Surrenders .......................... -- -- (1,349)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (9,355) (94) (3,408)
Deductions for surrender charges
(note 2d) ........................ -- -- (300)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,884) (1,109) --
--------- --------- ---------
Net equity transactions ........ 844 1,534 5,622
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 13,036 2,504 4,610
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 26,587 24,083 19,473
--------- --------- ---------
CONTRACT OWNERS'EQUITY END OF PERIOD .. 39,623 26,587 24,083
========= ========= =========
</TABLE>
(Continued)
19
<PAGE> 19
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------
STATEMENTS OF OPERATIONS, Continued
- -----------------------------------
YEARS ENDED DECEMBER 31,1999,1998 AND 1997
<TABLE>
<CAPTION>
WPPVenCap WPSmCoGr
--------------------------------------------------------------------
1999 1998 1997 1999 1998 1997
----- ---- ---- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ -- -- - -- -- --
Mortality and expense charges
(note 3) ......................... (9) (5) - (227) (249) (212)
----- ---- ---- ------- ------- -------
Net investment activity .......... (9) (5) - (227) (249) (212)
----- ---- ---- ------- ------- -------
Proceeds from mutual fund
shares sold ...................... 26 -- - 18,125 19,636 20,824
Cost of mutual funds sold ........... (19) -- - (16,383) (14,863) (15,610)
----- ---- ---- ------- ------- -------
Realized gain (loss) on
investments .................... 7 -- - 1,742 4,773 5,214
Change in unrealized gain (loss)
on investments ................... 652 96 - 14,260 (5,217) 2,827
----- ---- ---- ------- ------- -------
Net gain (loss) on investments ... 659 96 - 16,002 (444) 8,041
----- ---- ---- ------- ------- -------
Reinvested capital gains ............ -- -- - 1,415 -- --
----- ---- ---- ------- ------- -------
Net change in contract
owners'equity resulting
from operations ............. 650 91 - 17,190 (693) 7,829
----- ---- ---- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 114 908 - 3,779 4,229 8,281
Transfers between funds ............. -- -- - (1,711) (15,770) (7,578)
Surrenders .......................... -- -- - (795) (279) (5,302)
Death benefits (note 4) ............. -- -- - -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- - (2,822) (262) (1,352)
Deductions for surrender charges
(note 2d) ........................ -- -- - (46) (33) (1,179)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (38) (21) - (2,610) (2,146) (5)
----- ---- ---- ------- ------- -------
Net equity transactions ........ 76 887 - (4,205) (14,261) (7,135)
----- ---- ---- ------- ------- -------
NET CHANGE IN CONTRACT OWNERS'EQUITY .. 726 978 - 12,985 (14,954) 694
CONTRACT OWNERS'EQUITY
BEGINNING OF PERIOD ................. 978 -- - 39,373 54,327 53,633
----- ---- ---- ------- ------- -------
CONTRACT OWNERS'EQUITY END OF PERIOD .. $ 1,704 978 - 52,358 39,373 54,327
===== ==== ==== ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 20
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999, 1998 AND 1997
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLISeparate Account-3 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
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.
The Company offers Flexible Premium Variable Life Insurance Policies
through the Account. The primary distribution for the contracts is
through Company Agents; however, other distributors may be utilized.
(b) The Contracts
Only contracts with a front-end sales load, a surrender 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 funds:
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)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
Portfolio of the Morgan Stanley Universal Funds, Inc. (Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
(Continued)
21
<PAGE> 21
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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 Portfolio (NBAMTLMat) Neuberger & Berman AMT
- Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer VAF);
Oppenheimer VAF - Bond Fund (OppBdFd) Oppenheimer VAF - Global
Securities Fund (OppGlSec) Oppenheimer VAF - Growth Fund (OppGro)
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
Strong Opportunity Fund II, Inc. (StOpp2)
Funds of the Strong Variable Insurance Funds, Inc. (Strong VIF);
Strong VIF - Strong Discovery Fund II (StDisc2)
Strong VIF - Strong International Stock Fund II (StIntStk2)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT); Van Eck
WIT - Worldwide Bond Fund (VEWrldBd) Van Eck WIT - Worldwide
Emerging Markets Fund (VEWrldEMkt) Van Eck WIT - Worldwide Hard
Assets Fund (VEWrldHAs)
Portfolio of the Van Kampen Life Investment Trust (Van Kampen LIT);
Van Kampen 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 December 31, 1999, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain 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 benefits, the latter being included in the
accounts of the Company.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are available as investment options in variable life insurance policies
or variable annuity contracts issued by life insurance companies or, in
some cases, through participation in certain qualified pension or
retirement plans.
22
<PAGE> 22
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 provisions of the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(2) POLICY CHARGES
(a) Deductions from Premium
On flexible premium life insurance contracts, the Company deducts a
charge for state premium taxes equal to 2.5% of all premiums received
to cover the payment of these premium taxes. Additionally, the Company
deducts a front-end sales load of up to 3.5% from each premium payment
received. The Company may at its sole discretion reduce this sales
loading.
(b) Cost of Insurance
A cost of insurance charge is assessed monthly against each contract by
liquidating units. The amount of the charge is based upon age, sex,
rate class and net amount at risk (death benefit less total contract
value).
(c) Administrative Charges
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. These
charges are assessed against each contract by liquidating units.
(Continued)
23
<PAGE> 23
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS,CONTINUED
(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 amount of the charge is based upon a specified
percentage of the initial surrender charge which varies by issue age,
sex and rate class. For flexible premium contracts, the charge is 100%
of the initial surrender charge in the first year, declining to 30% of
the initial surrender charge in the ninth year.
No surrender charge is assessed on any contract surrendered after the
ninth year.
The Company may waive the surrender charge for certain contracts in
which the sales expenses normally associated with the distribution of a
contract are not incurred. No charges were deducted from the initial
funding, or from earnings thereon.
(3) ASSET CHARGES
The Company deducts a charge equal to an annual rate of .80%, with certain
exceptions, to cover mortality and expense risk charges related to
operations. On each policy anniversary beginning with the 10th, this charge
is reduced to 0.50% on an annual basis provided that the cash surrender
value of the contract is $25,000 or more on such anniversary. This charge
is assessed through the daily unit value calculation.
(4) DEATH BENEFITS
Death benefit proceeds result in a redemption of the contract value from
the Account and payment of those proceeds, less any outstanding policy
loans (and policy charges), to the legal beneficiary. For last survivor
flexible premium contracts, the proceeds are payable on the death of the
last surviving insured. In the event that the guaranteed death benefit
exceeds the contract value on the date of death, the excess is paid by the
Company's general account.
(5) POLICY LOANS (NET OF REPAYMENTS)
Contract provisions allow contract owners to borrow 90% of a policy's cash
surrender value. The contract is charged 6% on the outstanding loan and is
due and payable in advance on the policy anniversary.
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. Interest credited is paid by the
Company's general account to the Account. Loan repayments result in a
transfer of collateral including interest back to the Account.
(6) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
24
<PAGE> 24
(7) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1999.
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
-------- ---------- --------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP Advantage....................... 22,653 $ 21.052310 $ 476,898 14%
American Century VP -
American Century VP Balanced........................ 974 21.094348 20,546 9%
American Century VP -
American Century VP Capital Appreciation............ 3,518 23.303640 81,982 63%
American Century VP -
American Century VP Income Growth................... 1,877 12.717991 23,872 17%
American Century VP -
American Century VP International................... 1,038 26.831062 27,851 63%
American Century VP -
American Century VP Value........................... 590 12.975752 7,656 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.................................... 4,918 36.549891 179,752 29%
Dreyfus Stock Index Fund............................. 20,349 33.609618 683,922 20%
Dreyfus VIF - Capital Appreciation Portfolio......... 17,060 14.591996 248,939 11%
Dreyfus VIF - Growth and Income Portfolio............ 763 14.810164 11,300 16%
Fidelity VIP - Equity-Income Portfolio............... 10,575 37.388084 395,379 5%
Fidelity VIP - Growth Portfolio...................... 20,570 55.899014 1,149,843 36%
Fidelity VIP - High Income Portfolio................. 3,951 28.039263 110,783 7%
Fidelity VIP - Overseas Portfolio.................... 1,611 26.840170 43,240 41%
Fidelity VIP-II - Asset Manager Portfolio............ 3,448 27.355020 94,320 10%
Fidelity VIP-II - Contrafund Portfolio............... 25,860 26.143948 676,082 23%
Fidelity VIP-III - Growth Opportunities Portfolio.... 920 14.012663 12,892 3%
Morgan Stanley -
Emerging Markets Debt Portfolio..................... 80 8.967304 717 28%
Nationwide SAT - Capital Appreciation Fund........... 237,180 32.761545 7,770,383 3%
Nationwide SAT - Government Bond Fund................ 97,069 17.516435 1,700,303 (3)%
Nationwide SAT - Money Market Fund................... 38,841 13.853330 538,077 4%
Nationwide SAT - Small Cap Value Fund................ 3,128 10.852975 33,948 27%
Nationwide SAT - Small Company Fund.................. 3,052 23.192622 70,784 43%
Nationwide SAT - Total Return Fund................... 533,407 35.085217 18,714,700 6%
</TABLE>
(Continued)
25
<PAGE> 25
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN*
-------- ---------- --------
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Balanced Portfolio.............................. 65,636 26.229633 1,721,608 33%
Neuberger & Berman AMT -
Growth Portfolio................................ 2,782 37.818375 105,211 49%
Neuberger & Berman AMT -
Guardian Portfolio.............................. 123 10.619652 1,306 14%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio................. 271 14.959827 4,054 1%
Neuberger & Berman AMT -
Partners Portfolio.............................. 5,137 25.046437 128,664 7%
Oppenheimer VAF - Bond Fund...................... 263 17.686402 4,652 (2)%
Oppenheimer VAF - Global Securities Fund......... 6,515 29.152831 189,931 57%
Oppenheimer VAF - Growth Fund.................... 4,757 18.069110 85,955 41%
Oppenheimer VAF - Multiple Strategies Fund....... 433 25.171538 10,899 11%
Strong Opportunity Fund II, Inc.................. 4,055 40.478200 164,139 34%
Strong VIF - Strong Discovery Fund II............ 1,306 20.243703 26,438 4%
Strong VIF - Strong International Stock Fund II.. 6,083 16.868902 102,614 86%
Van Eck WIT - Worldwide Bond Fund................ 120 14.003753 1,680 (9)%
Van Eck WIT -
Worldwide Emerging Markets Fund................. 2,253 11.474995 25,853 99%
Van Eck WIT - Worldwide Hard Assets Fund......... 388 14.660557 5,688 20%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio................ 857 15.237208 13,058 (4)%
Warburg Pincus Trust -
International Equity Portfolio.................. 2,203 17.985801 39,623 52%
Warburg Pincus Trust -
Post Venture Capital Portfolio.................. 87 19.586645 1,704 62%
Warburg Pincus Trust -
Small Company Growth Portfolio.................. 2,005 26.113570 52,358 68%
======= ========= ----------
$ 35,759,604
============
</TABLE>
*The annual return does not include contract charges satisfied by surrendering
units.
- --------------------------------------------------------------------------------
26
<PAGE> 26
- --------------------------------------------------------------------------------
Independent Auditors' Report
----------------------------
TheBoard of Directors of Nationwide Life Insurance Company and Contract Owners
of Nationwide VLI Separate Account-3:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide VLI Separate Account-3 (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 three 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 included
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 three year period then ended in conformity
with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
- --------------------------------------------------------------------------------
27
<PAGE> 27
---------------
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
