<PAGE> 1
'96
- --------------------------------------------------------------------------------
Nationwide(R) VA Separate Account - B
June 30, 1996
SEMI-ANNUAL REPORT
AMERICA'S
Exclusive
ANNUITY(SM)
- --------------------------------------------------------------------------------
[LOGO]
Nationwide Life And Annuity Insurance Company
Home Office: Columbus, Ohio
APO-3233 (6/96)
<PAGE> 2
[LOGO]
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215
PRESIDENT'S MESSAGE
We are pleased to present the 1996 semi-annual report of the Nationwide VA
Separate Account-B.
Equity investments provided a respectable return for the first half of 1996 with
the major market indices holding comfortably in double digits. Fixed-income
investments, however, did not perform as well with the average bond fund showing
slightly negative performance for the period. This was due to rising interest
rates and lingering inflation fears.
The U.S. economy showed signs of increasing strength during the first half of
the year. The question remains: will growth fall back to the perceived
inflation-free path by itself or will the Federal Reserve have to step in and
enforce moderation? Recent economic statistics, such as the July unemployment
report, point in the direction of some moderation. Also, fierce competition in
all consumer-goods markets make inflationary price increases very difficult. One
way or the other, we expect slower economic growth in the near future.
Financial assets will remain the preferred individual investment option because
they will continue providing security, liquidity, and income and growth.
We appreciate your confidence in the Nationwide Insurance Enterprise and in our
life and annuity products. You have our assurance that your personal
satisfaction with our products and service is our highest priority.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
3
<PAGE> 3
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
823 shares (cost $15,355) ........................................................................ $ 15,517
Dreyfus Stock Index Fund (DryStkIx)
17,499 shares (cost $329,210) .................................................................... 327,589
Fidelity VIP -- Equity-Income Portfolio (FidVIPEI)
229,699 shares (cost $4,461,294) ................................................................. 4,474,540
Fidelity VIP -- Growth Portfolio (FidVIPGr)
166,712 shares (cost $4,949,133) ................................................................. 5,011,367
Fidelity VIP -- High Income Portfolio (FidVIPHI)
73,392 shares (cost $851,391) .................................................................... 864,557
Fidelity VIP -- Overseas Portfolio (FidVIPOv)
32,012 shares (cost $564,748) .................................................................... 572,374
Fidelity VIP-II -- Asset Manager Portfolio (FidVIPAM)
30,443 shares (cost $469,892) .................................................................... 475,817
Fidelity VIP-II -- Contrafund Portfolio (FidVIPCon)
103,963 shares (cost $1,525,234) ................................................................. 1,536,568
Nationwide SAT -- Capital Appreciation Fund (NSATCapAp)
4,494 shares (cost $65,500) ...................................................................... 66,245
Nationwide SAT -- Government Bond Fund (NSATGvtBd)
61,586 shares (cost $669,082) .................................................................... 666,976
Nationwide SAT -- Money Market Fund (NSATMyMkt)
3,473,088 shares (cost $3,473,088) ............................................................... 3,473,088
Nationwide SAT -- Small Company Fund (NSATSmCo)
43,609 shares (cost $579,399) .................................................................... 584,366
Nationwide SAT -- Total Return Fund (NSATTotRe)
17,222 shares (cost $215,062) .................................................................... 213,554
Neuberger & Berman -- Growth Portfolio (NBAMTGro)
5,251 shares (cost $136,042) ..................................................................... 131,158
Neuberger &Berman -- Limited Maturity Bond Portfolio (NBAMTLMat)
105,378 shares (cost $1,427,185) ................................................................. 1,423,654
Neuberger &Berman -- Partners Portfolio (NBAMTPart)
58,897 shares (cost $841,079) .................................................................... 841,640
Oppenheimer -- Bond Fund (OppBdFd)
78,844 shares (cost $906,038) .................................................................... 900,398
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Oppenheimer -- Global Securities Fund (OppGlSec)
16,333 shares (cost $265,145) ................................................................... 265,253
Oppenheimer -- Multiple Strategies Fund (OppMult)
2,497 shares (cost $37,114) ..................................................................... 36,678
Strong VIF -- Strong Discovery Fund II (StDisc2)
62,291 shares (cost $723,739) ................................................................... 661,531
Strong VIF -- Strong International Stock Fund II (StIntStk2)
46,108 shares (cost $522,298) ................................................................... 533,471
Strong VIF -- Strong Special Fund II (StSpec2)
70,255 shares (cost $1,244,682) ................................................................. 1,230,876
TCI Portfolios -- TCI Balanced (TCIBal)
27,276 shares (cost $191,365) ................................................................... 193,929
TCI Portfolios -- TCI Growth (TCIGro)
30,977 shares (cost $346,669) ................................................................... 336,102
TCI Portfolios -- TCI International (TCIInt)
77,050 shares (cost $427,912) ................................................................... 430,710
Van Eck -- Gold and Natural Resources Fund (VEGoldNR)
12,786 shares (cost $207,837) ................................................................... 200,100
Van Eck -- Worldwide Bond Fund (VEWrldBd)
19,713 shares (cost $211,004) ................................................................... 208,954
Van Kampen American Capital -- Real Estate Securities Fund (VKACRESec)
12,598 shares (cost $143,985) ................................................................... 146,646
Warburg Pincus -- International Equity Portfolio (WPIntEq)
153,548 shares (cost $1,771,516) ................................................................ 1,798,042
Warburg Pincus -- Small Company Growth Portfolio (WPSmCoGr)
120,160 shares (cost $1,737,718) ................................................................ 1,715,882
------------
Total investments ............................................................................... 29,337,582
Accounts receivable ................................................................................... 1,117
------------
Total assets .................................................................................... 29,338,699
ACCOUNTS PAYABLE ......................................................................................... 108,911
------------
CONTRACT OWNERS' EQUITY (NOTE 4) ......................................................................... $ 29,229,788
============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 5
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
FOR THE PERIOD FEBRUARY 1, 1996 (COMMENCEMENT OF OPERATIONS)
THROUGH JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
1996
------------
<S> <C>
INVESTMENT ACTIVITY:
Reinvested capital gains and dividends ............................................................. $ 154,869
------------
Gain (loss) on investments:
Proceeds from redemptions of mutual fund shares ................................................. 8,561,853
Cost of mutual fund shares sold ................................................................. (8,529,573)
------------
Realized gain (loss) on investments ............................................................. 32,280
Change in unrealized gain (loss) on investments ................................................. 27,867
------------
Net gain (loss) on investments ............................................................... 60,147
------------
Net investment activity ................................................................... 215,016
------------
EQUITY TRANSACTIONS:
Purchase payments received from contract owners .................................................... 29,215,948
Redemptions ........................................................................................ (138,364)
Adjustments to maintain reserves ................................................................... 2,713
------------
Net equity transactions ................................................................... 29,080,297
------------
EXPENSES:
Contract charges ................................................................................... (65,525)
Contingent deferred sales charges .................................................................. --
------------
Total expenses ............................................................................ (65,525)
------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ................................................................. 29,229,788
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........................................................... --
------------
CONTRACT OWNERS' EQUITY END OF PERIOD ................................................................. $ 29,229,788
============
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 6
NATIONWIDE VA SEPARATE ACCOUNT-B
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VA Separate Account-B (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life and
Annuity Insurance Company (the Company) on March 6, 1991. The Account has been
registered as a unit investment trust under the Investment Company Act of 1940.
The Company offers tax qualified and non-tax qualified Individual
Deferred Variable Annuity Contracts, and Individual Modified Single Premium
Deferred Variable Annuity Contracts through the Account. The primary
distribution for the contracts is through the brokerage community; however,
other distributors are utilized.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees are offered for purchase. See note
2 for a discussion of contract expenses.
Contract owners in either the accumulation or payout phase may invest
in the following:
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
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)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT -- Capital Appreciation Fund (NSATCapAp)
Nationwide SAT -- Government Bond Fund (NSATGvtBd)
Nationwide SAT -- Money Market Fund (NSATMyMkt)
Nationwide SAT -- Small Company Fund (NSATSmCo)
Nationwide SAT -- Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger & Berman);
Neuberger & Berman -- Growth Portfolio (NBAMTGro)
Neuberger & Berman -- Limited Maturity Bond Portfolio (NBAMTLMat)
Neuberger & Berman -- Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer);
Oppenheimer -- Bond Fund (OppBdFd)
Oppenheimer -- Global Securities Fund (OppGlSec)
Oppenheimer -- Multiple Strategies Fund (OppMult)
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)
Strong VIF -- Strong Special Fund II (StSpec2)
7
<PAGE> 7
Portfolios of the TCIPortfolios, Inc. (TCI Portfolios);
TCI Portfolios -- TCI Balanced (TCIBal)
TCI Portfolios -- TCI Growth (TCIGro)
TCI Portfolios -- TCI International (TCIInt)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck);
Van Eck -- Gold and Natural Resources Fund (VEGoldNR)
Van Eck -- Worldwide Bond Fund (VEWrldBd)
Fund of the Van Kampen American Capital Life Investment Trust (Van
Kampen American Capital);
Van Kampen American Capital -- Real Estate Securities Fund
(VKACRESec)
Portfolios of the Warburg Pincus Trust (Warbug Pincus);
Warburg Pincus -- International Equity Portfolio (WPIntEq)
Warburg Pincus -- Small Company Growth Portfolio (WPSmCoGr)
At June 30, 1996, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment results of each
fund, equity transactions by contract owners and certain contract expenses (see
note 2).
The accompanying financial statements include only contract owners'
purchase payments pertaining to the variable portions of their contracts and
exclude any purchase payments for fixed dollar benefits, the latter being
included in the accounts of the Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1996. The cost of investments sold is
determined on the specific identification basis. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed) and
dividend income is recorded on the ex-dividend date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company under the
Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities, if any, at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments
received from the contract owners. However, if any part of the contract value of
such contracts is surrendered the Company will, with certain exceptions, deduct
from a contract owner's contract value a contingent deferred sales charge not to
exceed 7% of the lesser of purchase payments or the amount surrendered, such
charge declining 1% per year, to 0%, after the purchase payment has been held in
the contract for 84 months. No sales charges are deducted on redemptions used to
purchase units in the fixed investment options of the Company.
The following administrative charges are deducted by the Company: a
mortality risk charge, an expense risk charge and an administration charge
assessed through the daily unit value calculation equal to an annual rate of
0.80%, 0.45% and 0.20%, respectively.
8
<PAGE> 8
(3) SCHEDULE I
Schedule I presents the components of the change in the unit values,
which are the basis for contract owners' equity. This schedule is presented for
each series, as applicable, in the following format:
- Beginning unit value -- Feb. 1
- Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to capital
gains and dividend distributions from the underlying mutual funds.)
- Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the
underlying mutual funds.)
- Contract charges
(This amount reflects the decrease in the unit value due to the
mortality risk charge, an expense risk charge and an administration
charge discussed in note 2.)
- Ending unit value -- June 30
- Percentage increase (decrease) in unit value.
For contracts in the payout phase, an assumed investment return of
3.5%, used in the calculation of the annuity benefit payment amount, results in
a corresponding reduction in the components of the unit values as shown in
Schedule I.
9
<PAGE> 9
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1996.
<TABLE>
<CAPTION>
Contract owners' equity represented by: UNITS UNIT VALUE
------- ----------
<S> <C> <C> <C>
The Dreyfus Socially Responsible Growth Fund, Inc.:
Non-tax qualified ................................................ 1,503 $10.318865 $ 15,509
Dreyfus Stock Index Fund:
Tax qualified .................................................... 11,177 10.527790 117,669
Non-tax qualified ................................................ 19,940 10.527790 209,924
Fidelity VIP -- Equity-Income Portfolio:
Tax qualified .................................................... 185,021 10.226504 1,892,118
Non-tax qualified ................................................ 252,525 10.226504 2,582,448
Fidelity VIP -- Growth Portfolio:
Tax qualified .................................................... 277,452 10.753480 2,983,575
Non-tax qualified ................................................ 188,574 10.753480 2,027,827
Fidelity VIP -- High Income Portfolio:
Tax qualified .................................................... 39,463 10.398588 410,359
Non-tax qualified ................................................ 43,679 10.398588 454,200
Fidelity VIP -- Overseas Portfolio:
Tax qualified .................................................... 9,865 10.436713 102,958
Non-tax qualified ................................................ 44,977 10.436713 469,412
Fidelity VIP-II -- Asset Manager Portfolio:
Tax qualified .................................................... 21,191 10.258273 217,383
Non-tax qualified ................................................ 25,193 10.258273 258,437
Fidelity VIP-II -- Contrafund Portfolio:
Tax qualified .................................................... 45,435 10.624381 482,719
Non-tax qualified ................................................ 99,193 10.624381 1,053,864
Nationwide SAT -- Capital Appreciation Fund:
Non-tax qualified ................................................ 6,322 10.477733 66,240
Nationwide SAT -- Government Bond Fund:
Tax qualified .................................................... 7,435 9.720189 72,270
Non-tax qualified ................................................ 61,183 9.720189 594,710
Nationwide SAT -- Money Market Fund:
Tax qualified .................................................... 88,836 10.145132 901,253
Non-tax qualified ................................................ 242,866 10.145132 2,463,908
Nationwide SAT -- Small Company Fund:
Tax qualified .................................................... 19,314 11.715734 226,278
Non-tax qualified ................................................ 30,565 11.715734 358,091
Nationwide SAT -- Total Return Fund:
Tax qualified .................................................... 10,065 10.447085 105,150
Non-tax qualified ................................................ 10,377 10.447085 108,409
Neuberger &Berman -- Growth Portfolio:
Tax qualified .................................................... 1,182 10.220676 12,081
Non-tax qualified ................................................ 11,651 10.220676 119,081
Neuberger &Berman -- Limited Maturity Bond Portfolio:
Tax qualified .................................................... 34,978 9.889945 345,930
Non-tax qualified ................................................ 108,973 9.889945 1,077,737
</TABLE>
10
<PAGE> 10
<TABLE>
<S> <C> <C> <C>
Neuberger &Berman -- Partners Portfolio:
Tax qualified ..................................................... 19,565 10.699978 209,345
Non-tax qualified ................................................. 59,093 10.699978 632,294
Oppenheimer -- Bond Fund:
Tax qualified ..................................................... 37,445 9.858376 369,147
Non-tax qualified ................................................. 53,889 9.858376 531,258
Oppenheimer -- Global Securities Fund:
Tax qualified ..................................................... 10,567 10.395610 109,850
Non-tax qualified ................................................. 14,949 10.395610 155,404
Oppenheimer -- Multiple Strategies Fund:
Tax qualified ..................................................... 281 10.307180 2,896
Non-tax qualified ................................................. 3,277 10.307180 33,777
Strong VIF -- Strong Discovery Fund II:
Tax qualified ..................................................... 27,920 9.668597 269,947
Non-tax qualified ................................................. 40,501 9.668597 391,588
Strong VIF -- Strong International Stock Fund II:
Tax qualified ..................................................... 3,594 10.833527 38,936
Non-tax qualified ................................................. 45,647 10.833527 494,518
Strong VIF -- Strong Special Fund II:
Tax qualified ..................................................... 52,397 10.353177 542,475
Non-tax qualified ................................................. 66,492 10.353177 688,403
TCI Portfolios -- TCIBalanced:
Tax qualified ..................................................... 7,886 10.267812 80,972
Non-tax qualified ................................................. 11,001 10.267812 112,956
TCI Portfolios -- TCIGrowth:
Tax qualified ..................................................... 12,743 10.003537 127,475
Non-tax qualified ................................................. 20,855 10.003537 208,624
TCI Portfolios -- TCIInternational:
Tax qualified ..................................................... 11,636 10.528907 122,514
Non-tax qualified ................................................. 29,272 10.528907 308,202
Van Eck -- Gold and Natural Resources Fund:
Tax qualified ..................................................... 6,176 9.554528 59,009
Non-tax qualified ................................................. 14,769 9.554528 141,111
Van Eck -- Worldwide Bond Fund:
Tax qualified ..................................................... 7,705 9.803349 75,535
Non-tax qualified ................................................. 13,610 9.803349 133,424
Van Kampen American Capital-Real Estate Securities Fund:
Tax qualified ..................................................... 5,217 10.594585 55,272
Non-tax qualified ................................................. 8,625 10.594585 91,378
Warburg Pincus -- International Equity Portfolio:
Tax qualified ..................................................... 74,044 10.525360 779,340
Non-tax qualified ................................................. 96,786 10.525360 1,018,707
Warburg Pincus -- Small Company Growth Portfolio:
Tax qualified ..................................................... 44,422 11.338659 503,686
Non-tax qualified ................................................. 106,909 11.338659 1,212,205
======= ========= -----------
$29,229,788
===========
</TABLE>
11
<PAGE> 11
SCHEDULE I
NATIONWIDE VA SEPARATE ACCOUNT-B
TAX QUALIFIED AND NON-TAX QUALIFIED
SCHEDULE OF CHANGES IN UNIT VALUE
FOR THE PERIOD FEBRUARY 1, 1996 (COMMENCEMENT OF OPERATIONS)
THROUGH JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
DrySRGro DryStkix FidVIPEI FidVIPGr FidVIPHI
---------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C>
1996
Beginning unit value - Feb. 1 $10.000000 10.000000 10.000000 10.000000 10.000000
- ---------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .106222 .448815 .702576 .889968
- ---------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .378969 .481764 (.162517) .112560 (.431617)
- ---------------------------------------------------------------------------------------------------------------
Contract charges (.060104) (.060196) (.059794) (.061656) (.059763)
- ---------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $10.318865 10.527790 10.226504 10.753480 10.398588
- ---------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 3% 5% 2% 8% 4%
===============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
FidVIPOv FidVIPAM FidVIPCon NSATCapAp NSATGvtBd
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
1996
Beginning unit value - Feb. 1 10.000000 10.000000 10.000000 10.000000 10.000000
- ---------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .240688 .642372 .093123 .084923 .302974
- ---------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .255795 (.325080) .592155 .453592 (.525967)
- ---------------------------------------------------------------------------------------------------------------
Contract charges (.059770) (.059019) (.060897) (.060782) (.056818)
- ---------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 10.436713 10.258273 10.624381 10.477733 9.720189
- ---------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 4% 3% 6% 5% (3)%
===============================================================================================================
<FN>
* This is not an annualized rate of return as it is the change for the period
indicated and contract charges do not include the annual contract maintenance
charge discussed in note 2.
</TABLE>
12
<PAGE> 12
SCHEDULE I, CONTINUED
NATIONWIDE VA SEPARATE ACCOUNT-B
TAX QUALIFIED AND NON-TAX QUALIFIED
SCHEDULE OF CHANGES IN UNIT VALUE
FOR THE PERIOD FEBRUARY 1, 1996 (COMMENCEMENT OF OPERATIONS)
THROUGH JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NSATMYMKT NSATSMCO NSATTOTRE NBAMTGRO NBAMTLMAT
---------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
1996
Beginning unit value - Feb. 1 $10.000000 10.000000 10.000000 10.000000 10.000000
- -----------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .205220 .019670 .104718 .882507 .835242
- -----------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.001064) 1.761340 .402635 (.600822) (.887364)
- -----------------------------------------------------------------------------------------------------------------
Contract charges (.059024) (.065276) (.060268) (.061009) (.057933)
- -----------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $10.145132 11.715734 10.447085 10.220676 9.889945
- -----------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 1% 17% 4% 2% (1)%
=================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NBAMTPART OPPBDFD OPPGLSEC OPPMULT STDISC2
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
1996
Beginning unit value - Feb. 1 10.000000 10.000000 10.000000 10.000000 10.000000
- -----------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .390600 .318233 .000000 .504077 1.890455
- -----------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .371102 (.402296) .455346 (.137221) (2.163708)
- -----------------------------------------------------------------------------------------------------------------
Contract charges (.061724) (.057561) (.059736) (.059676) (.058150)
- -----------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 10.699978 9.858376 10.395610 10.307180 9.668597
- -----------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 7% (1)% 4% 3% (3)%
=================================================================================================================
<FN>
* This is not an annualized rate of return as it is the change for the period
indicated and contract charges do not include the annual contract maintenance
charge discussed in note 2.
</TABLE>
13
<PAGE> 13
SCHEDULE I, CONTINUED
NATIONWIDE VA SEPARATE ACCOUNT-B
TAX QUALIFIED AND NON-TAX QUALIFIED
SCHEDULE OF CHANGES IN UNIT VALUE
FOR THE PERIOD FEBRUARY 1, 1996 (COMMENCEMENT OF OPERATIONS)
THROUGH JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
STINTSTK2 STSPEC2 TCIBAL TCIGRO TCIINT
---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
1996
Beginning unit value - Feb. 1 $10.000000 10.000000 10.000000 10.000000 10.000000
- ----------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .023336 .424062 .402801 1.113558 .234571
- ----------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .870889 (.010060) (.075943) (1.050399) .354147
- ----------------------------------------------------------------------------------------------------------
Contract charges (.060698) (.060825) (.059046) (.059622) (.059811)
- ----------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $10.833527 10.353177 10.267812 10.003537 10.528907
- ----------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 8% 4% 3% 0% 5%
==========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
VEGOLDNR VEWRLDBD VKACRESEC WPLNTEQ WPSMCOGR
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
1996
Beginning unit value - Feb. 1 10.000000 10.000000 10.000000 10.000000 10.000000
- ----------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .184293 .274473 .007303 .000000 .000000
- ----------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.571189) (.413523) .646897 .585497 1.403040
- ----------------------------------------------------------------------------------------------------------
Contract charges (.058576) (.057601) (.059615) (.060137) (.064381)
- ----------------------------------------------------------------------------------------------------------
Ending unit value - June 30 9.554528 9.803349 10.594585 10.525360 11.338659
- ----------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (4)% (2)% 6% 5% 13%
==========================================================================================================
<FN>
* This is not an annualized rate of return as it is the change for the period
indicated and contract charges do not include the annual contract maintenance
charge discussed in note 2.
</TABLE>
14
<PAGE> 14
[THIS PAGE LEFT BLANK INTENTIONALLY]
15
<PAGE> 15
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
--------------
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
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Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
