<PAGE> 1
'99
Nationwide (R) VA Separate Account - B
June 30,1999
[THE BEST OF AMERICA LOGO]
SEMI-ANNUAL REPORT
AMERICA's
Exclusive
ANNUITY(SM)
[NATIONWIDE LOGO]
Nationwide Life and Annuity Insurance Company
Home Office: Columbus,Ohio
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[GASPER PHOTO]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life and Annuity Insurance Company, we are pleased to
present the 1999 semi-annual report of the Nationwide VASeparate Account-B.
Equity investments performed well during the first half of 1999 with the major
market indices showing double-digit gains. Fixed income investments did not fare
as well during this period in the face of the Federal Reserve's inflation
cautiousness. The Fed is mindful of the resilient U.S. economy and the
increasingly tight labor pool that portends future wage inflation. Accordingly,
we have seen a ratcheting-up of short-term interest rates to dampen the momentum
of the current expansion. How aggressively the Fed may react to the perceived
inflation threat only adds uncertainty to the already jittery equity markets.
Over the long term, however, a slower but sustainable rate of growth, with low
inflation, provides a favorable environment for further advances in financial
assets.
At mid-year, we are pleased to report that all the mission-critical systems used
to service our variable annuity and variable life business have been internally
inventoried, assessed and tested as being Year 2000 compliant. We are currently
contacting our critical business partners to determine if they will be Year 2000
compliant. Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure that
Nationwide Financial will be able to continue to serve your financial needs into
the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve your financial
planning and retirement savings goals. You have our commitment to provide the
consistent, high quality service you expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 19, 1999
2
<PAGE> 3
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
Assets:
Investments at market value:
American Century VP - American Century VP Balanced (ACVPBal)
581,315 shares (cost $4,508,687) .................................................... $ 4,284,289
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
231,075 shares (cost $2,267,909) .................................................... 2,419,360
American Century VP - American Century VP Income & Growth (ACVPIncGr)
427,938 shares (cost $2,982,457) .................................................... 3,183,859
American Century VP - American Century VP International (ACVPInt)
2,136,452 shares (cost $17,026,237) ................................................. 17,476,178
American Century VP - American Century VP Value (ACVPValue)
443,102 shares (cost $2,901,714) .................................................... 3,008,660
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
245,465 shares (cost $7,524,178 ..................................................... 8,603,542
Dreyfus Stock Index Fund (DryStkIx)
1,603,824 shares (cost $49,805,085) ................................................. 57,914,101
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
176,286 shares (cost $6,618,935) .................................................... 6,843,418
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
144,748 shares (cost $3,069,062) .................................................... 3,623,053
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
1,659,466 shares (cost $40,681,972) ................................................. 45,220,448
Fidelity VIP - Growth Portfolio (FidVIPGr)
861,208 shares (cost $37,555,162) ................................................... 39,383,061
Fidelity VIP - High Income Portfolio (FidVIPHI)
2,792,370 shares (cost $31,244,184) ................................................. 31,525,858
Fidelity VIP - Overseas Portfolio (FidVIPOv)
390,779 shares (cost $7,938,910) .................................................... 8,128,197
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
714,088 shares (cost $12,236,730) ................................................... 12,632,217
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
1,344,760 shares (cost $30,579,622) ................................................. 35,098,233
</TABLE>
(Continued)
3
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C>
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
918,559 shares (cost $20,045,234) ................................................................... 21,714,736
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
26,480 shares (cost $184,121) ....................................................................... 182,444
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
929,687 shares (cost $24,556,023) ................................................................... 27,593,105
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,468,123 shares (cost $17,143,572) ................................................................. 16,340,212
Nationwide SAT - Money Market Fund (NSATMyMkt)
87,520,668 shares (cost $87,520,668) ................................................................ 87,520,668
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
280,431 shares (cost $2,927,531) .................................................................... 3,109,985
Nationwide SAT - Small Company Fund (NSATSmCo)
571,108 shares (cost $9,115,931) .................................................................... 9,840,185
Nationwide SAT - Total Return Fund (NSATTotRe)
686,315 shares (cost $12,865,282) ................................................................... 13,925,325
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
72,701 shares (cost $1,794,579) ..................................................................... 1,856,068
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
106,026 shares (cost $1,621,887) .................................................................... 1,714,446
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
523,164 shares (cost $7,107,933) .................................................................... 6,848,216
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
868,519 shares (cost $15,616,864) ................................................................... 17,995,722
Oppenheimer VAF - Bond Fund (OppBdFd)
808,340 shares (cost $9,689,346) .................................................................... 9,295,913
Oppenheimer VAF - Global Securities Fund (OppGlSec)
447,558 shares (cost $9,393,234) .................................................................... 10,736,905
Oppenheimer VAF - Growth Fund (OppGro)
119,158 shares (cost $4,404,899) .................................................................... 4,855,709
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
296,510 shares (cost $4,983,526) .................................................................... 5,022,886
Strong Opportunity Fund II, Inc. (StOpp2)
390,919 shares (cost $8,126,420) .................................................................... 9,014,599
Strong VIF - Strong Discovery Fund II (StDisc2)
98,997 shares (cost $1,107,081) ..................................................................... 1,013,727
</TABLE>
4
<PAGE> 5
<TABLE>
<CAPTION>
<S> <C>
Strong VIF - Strong International Stock Fund II (StIntStk2)
80,513 shares (cost $755,255) ........................................................ 783,394
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
153,494 shares (cost $1,818,051) ..................................................... 1,654,666
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
405,984 shares (cost $4,090,490) ..................................................... 4,218,176
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
85,541 shares (cost $900,817) ........................................................ 916,143
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (MSRESec)
360,163 shares (cost $4,999,566) ..................................................... 5,002,667
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
666,611 shares (cost $7,623,379) ..................................................... 7,832,679
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
56,491 shares (cost $638,204) ........................................................ 750,206
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
470,359 shares (cost $7,223,550) ..................................................... 8,038,440
-------------
Total investments ................................................................. 557,121,696
Accounts receivable ....................................................................... 22,539
-------------
Total assets ...................................................................... 557,144,235
Accounts payable ............................................................................. 4,857,100
-------------
Contract owners' equity (note 4) ............................................................. $ 552,287,135
=============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS'EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Total ACVPBal
------------------------------ ------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ $ 9,238,628 5,143,059 84,936 33,348
Mortality, expense and administration
charges (note 2) ............................. (3,842,081) (2,453,249) (31,070) (15,028)
------------- ------------- ------------- -------------
Net investment activity ...................... 5,396,547 2,689,810 53,866 18,320
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ........... 778,825,069 287,759,397 785,180 138,679
Cost of mutual fund shares sold ................. (760,072,287) (275,065,214) (861,096) (130,662)
------------- ------------- ------------- -------------
Realized gain (loss) on investments .......... 18,752,782 12,694,183 (75,916) 8,017
Change in unrealized gain (loss) on investments . 4,938,357 (1,278,191) (432,003) 47,266
------------- ------------- ------------- -------------
Net gain (loss) on investments ............... 23,691,139 11,415,992 (507,919) 55,283
------------- ------------- ------------- -------------
Reinvested capital gains ........................ 11,514,871 12,023,517 586,056 206,788
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 40,602,557 26,129,319 132,003 280,391
------------- ------------- ------------- -------------
Equity transactions:
Purchase payments received from
contract owners .............................. 61,905,844 124,383,786 309,591 798,880
Transfers between funds ......................... -- -- 234,793 451,187
Redemptions ..................................... (54,623,228) (20,059,987) (374,800) (182,779)
Annuity benefits ................................ (7,786) -- -- --
Adjustments to maintain reserves ................ 22,661 (6,204) (47) 160
------------- ------------- ------------- -------------
Net equity transactions .................... 7,297,491 104,317,609 169,537 1,067,448
------------- ------------- ------------- -------------
Net change in contract owners'equity .............. 47,900,048 130,446,928 301,540 1,347,839
Contract owners'equity beginning of period ........ 504,387,087 271,561,976 3,982,699 1,566,336
------------- ------------- ------------- -------------
Contract owners'equity end of period .............. $ 552,287,135 402,008,904 4,284,239 2,914,175
============= ============= ============= =============
ACVPCapAp ACVPIncGr
------------------------------ ------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ -- -- 600 --
Mortality, expense and administration
charges (note 2) ............................. (16,702) (12,121) (18,248) (688)
------------- ------------- ------------- -------------
Net investment activity ...................... (16,702) (12,121) (17,648) (688)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ........... 3,279,520 823,291 2,392,098 1,592,643
Cost of mutual fund shares sold ................. (3,074,329) (810,822) (2,173,822) (1,588,773)
------------- ------------- ------------- -------------
Realized gain (loss) on investments .......... 205,191 12,469 218,276 3,870
Change in unrealized gain (loss) on investments . 70,146 (54,095) 26,077 782
------------- ------------- ------------- -------------
Net gain (loss) on investments ............... 275,337 (41,626) 244,353 4,652
------------- ------------- ------------- -------------
Reinvested capital gains ........................ -- 77,047 -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 258,635 23,300 226,705 3,964
------------- ------------- ------------- -------------
Equity transactions:
Purchase payments received from
contract owners .............................. 80,331 291,991 375,930 61,737
Transfers between funds ......................... 709,432 216,050 608,944 99,368
Redemptions ..................................... (180,488) (109,736) (505,961) (600)
Annuity benefits ................................ -- -- -- --
Adjustments to maintain reserves ................ 24 9 2,206 (4)
------------- ------------- ------------- -------------
Net equity transactions .................... 609,299 398,314 481,119 160,501
------------- ------------- ------------- -------------
Net change in contract owners'equity .............. 867,934 421,614 707,824 164,465
Contract owners'equity beginning of period ........ 1,551,448 1,334,061 2,478,206 --
------------- ------------- ------------- -------------
Contract owners'equity end of period .............. 2,419,382 1,755,675 3,186,030 164,465
============= ============= ============= =============
</TABLE>
6
<PAGE> 7
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS'EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPInt ACVPValue
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ $ - 39,772 22,101 12,481
Mortality, expense and administration
charges (note 2) ............................. (109,830) (59,752) (19,125) (17,158)
------------ ------------ ------------ ------------
Net investment activity ...................... (109,830) (19,980) 2,976 (4,677)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 55,459,335 4,141,150 3,410,156 1,228,775
Cost of mutual fund shares sold ................. (53,730,004) (3,564,383) (3,482,510) (1,213,160)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 1,729,331 576,767 (72,354) 15,615
Change in unrealized gain (loss) on investments . (406,181) 632,338 65,481 (76,258)
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... 1,323,150 1,209,105 (6,873) (60,643)
------------ ------------ ------------ ------------
Reinvested capital gains ........................ -- 408,286 209,382 149,013
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,213,320 1,597,411 205,485 83,693
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners .............................. 902,934 2,421,401 269,885 644,307
Transfers between funds ......................... 2,659,014 6,554,583 (587,973) 254,034
Redemptions ..................................... (959,339) (300,315) (156,832) (52,170)
Annuity benefits ................................ (1,154) -- (702) --
Adjustments to maintain reserves ................ 153 (11) 55 (24)
------------ ------------ ------------ ------------
Net equity transactions .................... 2,601,609 8,675,659 (475,567) 846,147
------------ ------------ ------------ ------------
Net change in contract owners'equity .............. 3,814,929 10,273,070 (270,082) 929,840
Contract owners'equity beginning of period ........ 13,661,390 4,929,570 3,278,763 1,692,181
------------ ------------ ------------ ------------
Contract owners'equity end of period .............. $ 17,476,319 15,202,640 3,008,681 2,622,021
============ ============ ============ ============
DrySRGro DryStkIx
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ -- -- 294,197 219,888
Mortality, expense and administration
charges (note 2) ............................. (52,362) (28,423) (393,199) (189,044)
------------ ------------ ------------ ------------
Net investment activity ...................... (52,362) (28,423) (99,002) 30,844
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 1,720,685 2,171,050 23,219,799 12,816,180
Cost of mutual fund shares sold ................. (1,565,692) (2,040,529) (20,449,023) (10,956,729)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 154,993 130,521 2,770,776 1,859,451
Change in unrealized gain (loss) on investments . 667,057 460,529 2,516,697 1,703,693
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... 822,050 591,050 5,287,473 3,563,144
------------ ------------ ------------ ------------
Reinvested capital gains ........................ -- -- 226,425 55,413
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 769,688 562,627 5,414,896 3,649,401
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners .............................. 547,064 826,633 5,315,897 8,150,530
Transfers between funds ......................... 2,550,141 902,640 (2,983,961) 11,309,698
Redemptions ..................................... (714,019) (136,668) (3,927,569) (1,442,559)
Annuity benefits ................................ -- -- -- --
Adjustments to maintain reserves ................ 79 (5) 633 (921)
------------ ------------ ------------ ------------
Net equity transactions .................... 2,383,265 1,592,599 (1,595,000) 18,016,747
------------ ------------ ------------ ------------
Net change in contract owners'equity .............. 3,152,953 2,155,226 3,819,896 21,666,148
Contract owners'equity beginning of period ........ 5,450,670 3,353,933 54,094,842 16,172,340
------------ ------------ ------------ ------------
Contract owners'equity end of period .............. 8,603,623 5,509,159 57,914,738 37,838,488
============ ============ ============ ============
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS'EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
DryCapAp DryGrInc
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ $ 286 172 14,704 10,308
Mortality, expense and administration
charges (note 2) ............................. (58,235) (10,283) (24,526) (13,966)
------------ ------------ ------------ ------------
Net investment activity ...................... (57,949) (10,111) (9,822) (3,658)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 10,656,133 590,646 696,865 1,421,841
Cost of mutual fund shares sold ................. (9,884,455) (512,971) (669,967) (1,382,995)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 771,678 77,675 26,898 38,846
Change in unrealized gain (loss) on investments . (290,587) 131,324 311,627 1,929
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... 481,091 208,999 338,525 40,775
------------ ------------ ------------ ------------
Reinvested capital gains ........................ -- 574 -- 33,601
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 423,142 199,462 328,703 70,718
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners .............................. 719,481 448,362 183,516 954,248
Transfers between funds ......................... 2,404,106 2,413,692 (108,972) 227,941
Redemptions ..................................... (1,583,202) (86,150) (234,252) (112,311)
Annuity benefits ................................ -- -- -- --
Adjustments to maintain reserves ................ 12 (780) 30 (478)
------------ ------------ ------------ ------------
Net equity transactions .................... 1,540,396 2,775,124 (159,679) 1,069,400
------------ ------------ ------------ ------------
Net change in contract owners'equity .............. 1,963,538 2,974,586 169,024 1,140,118
Contract owners'equity beginning of period ........ 4,879,906 378,082 3,454,067 1,235,782
------------ ------------ ------------ ------------
Contract owners'equity end of period .............. $ 6,843,444 3,352,668 3,623,091 2,375,900
============ ============ ============ ============
FidVIPEI FidVIPGr
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ 718,655 438,197 62,752 96,650
Mortality, expense and administration
charges (note 2) ............................. (348,799) (258,651) (254,785) (139,053)
------------ ------------ ------------ ------------
Net investment activity ...................... 369,856 179,546 (192,033) (42,403)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 26,076,211 15,605,730 27,338,277 27,271,006
Cost of mutual fund shares sold ................. (25,097,610) (12,552,206) (24,546,188) (25,397,518)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 978,601 3,053,524 2,792,089 1,873,488
Change in unrealized gain (loss) on investments . 1,978,323 (1,701,515) (2,445,544) (1,269,630)
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... 2,956,924 1,352,009 346,545 603,858
------------ ------------ ------------ ------------
Reinvested capital gains ........................ 1,588,606 1,559,466 3,945,522 2,528,165
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,915,386 3,091,021 4,100,034 3,089,620
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners .............................. 2,245,324 7,918,443 2,930,869 3,278,880
Transfers between funds ......................... (8,293,751) 1,957,710 4,003,999 (6,839,826)
Redemptions ..................................... (2,684,313) (1,773,441) (2,703,742) (1,361,920)
Annuity benefits ................................ (1,489) -- (1,725) --
Adjustments to maintain reserves ................ 470 1,351 422 177
------------ ------------ ------------ ------------
Net equity transactions .................... (8,733,759) 8,104,065 4,229,822 (4,922,686)
------------ ------------ ------------ ------------
Net change in contract owners'equity .............. (3,818,373) 11,195,086 8,329,856 (1,833,066)
Contract owners'equity beginning of period ........ 49,039,213 29,458,165 31,053,591 24,529,865
------------ ------------ ------------ ------------
Contract owners'equity end of period .............. 45,220,840 40,653,251 39,383,447 22,696,799
============ ============ ============ ============
</TABLE>
8
<PAGE> 9
NATIONWIDE VASEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS'EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVIPHI FidVIPOv
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ $ 3,049,368 1,651,369 82,634 82,111
Mortality, expense and administration
charges (note 2) ............................. (226,953) (197,999) (50,407) (35,969)
------------ ------------ ------------ ------------
Net investment activity ...................... 2,822,415 1,453,370 32,227 46,142
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 28,163,035 15,164,580 75,980,761 8,839,238
Cost of mutual fund shares sold ................. (30,075,512) (15,371,681) (75,103,454) (8,546,843)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... (1,912,477) (207,101) 877,307 292,395
Change in unrealized gain (loss) on investments . 1,272,527 (1,478,993) 17,403 91,664
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... (639,950) (1,686,094) 894,710 384,059
------------ ------------ ------------ ------------
Reinvested capital gains ........................ 113,995 1,049,307 133,280 242,012
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 2,296,460 816,583 1,060,217 672,213
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners .............................. 1,583,663 11,205,519 333,138 1,169,203
Transfers between funds ......................... (2,559,839) 3,230,676 1,339,615 230,831
Redemptions ..................................... (1,752,475) (892,443) (290,763) (218,750)
Annuity benefits ................................ -- -- -- --
Adjustments to maintain reserves ................ 132 58 79 11
------------ ------------ ------------ ------------
Net equity transactions .................... (2,728,519) 13,543,809 1,382,070 1,181,296
------------ ------------ ------------ ------------
Net change in contract owners'equity .............. (432,059) 14,360,392 2,442,287 1,853,509
Contract owners'equity beginning of period ........ 31,958,042 20,215,332 5,686,000 3,619,156
------------ ------------ ------------ ------------
Contract owners'equity end of period .............. $ 31,525,983 34,575,724 8,128,287 5,472,665
============ ============ ============ ============
FidVIPAM FidVIPCon
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ 365,259 169,515 193,521 111,354
Mortality, expense and administration
charges (note 2) ............................. (84,042) (46,774) (274,748) (155,898)
------------ ------------ ------------ ------------
Net investment activity ...................... 281,217 122,741 (81,227) (44,544)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 2,169,940 259,770 21,766,452 14,439,689
Cost of mutual fund shares sold ................. (2,160,665) (236,848) (18,613,138) (12,320,915)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 9,275 22,922 3,153,314 2,118,774
Change in unrealized gain (loss) on investments . (244,869) (153,237) (790,330) 22,350
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... (235,594) (130,315) 2,362,984 2,141,124
------------ ------------ ------------ ------------
Reinvested capital gains ........................ 462,661 508,545 1,419,156 819,250
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 508,284 500,971 3,700,913 2,915,830
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners .............................. 1,382,618 1,982,164 2,037,947 4,448,280
Transfers between funds ......................... 2,083,474 1,042,334 (5,967,067) 1,498,469
Redemptions ..................................... (964,854) (120,671) (2,799,711) (1,166,895)
Annuity benefits ................................ -- -- -- --
Adjustments to maintain reserves ................ 80 24 391 97
------------ ------------ ------------ ------------
Net equity transactions .................... 2,501,318 2,903,850 (6,728,440) 4,779,950
------------ ------------ ------------ ------------
Net change in contract owners'equity .............. 3,009,602 3,404,821 (3,027,527) 7,695,780
Contract owners'equity beginning of period ........ 9,622,689 4,846,817 38,126,162 21,505,171
------------ ------------ ------------ ------------
Contract owners'equity end of period .............. 12,632,291 8,251,638 35,098,635 29,200,951
============ ============ ============ ============
</TABLE>
(Continued)
9
<PAGE> 10
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS'EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVIPGrOp MSEmMkt
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ $ 219,859 44,124 -- --
Mortality, expense and administration
charges (note 2) ............................. (175,380) (84,514) (2,664) (1,418)
------------ ------------ ------------ ------------
Net investment activity ...................... 44,479 (40,390) (2,664) (1,418)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 16,463,266 2,852,737 1,498,934 299,156
Cost of mutual fund shares sold ................. (14,251,955) (2,601,606) (1,489,391) (301,860)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 2,211,311 251,131 9,543 (2,704)
Change in unrealized gain (loss) on investments . (1,161,221) 540,335 17,248 (16,473)
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... 1,050,090 791,466 26,791 (19,177)
------------ ------------ ------------ ------------
Reinvested capital gains ........................ 411,041 153,385 -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,505,610 904,461 24,127 (20,595)
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners .............................. 736,560 4,216,192 37,705 130,190
Transfers between funds ......................... (703,038) 8,981,339 (167,405) 83,238
Redemptions ..................................... (1,335,448) (1,202,574) (50,111) (3,232)
Annuity benefits ................................ -- -- -- --
Adjustments to maintain reserves ................ 188 (229) 5 (15)
------------ ------------ ------------ ------------
Net equity transactions .................... (1,301,737) 11,994,728 (179,807) 210,181
------------ ------------ ------------ ------------
Net change in contract owners'equity .............. 203,873 12,899,189 (155,680) 189,586
Contract owners'equity beginning of period ........ 21,511,059 2,957,868 338,131 106,790
------------ ------------ ------------ ------------
Contract owners'equity end of period .............. $ 21,714,932 15,857,057 182,451 296,376
============ ============ ============ ============
NSATCapAp NSATGvtBd
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ 75,512 46,272 427,607 168,250
Mortality, expense and administration
charges (note 2) ............................. (216,960) (63,544) (113,831) (36,583)
------------ ------------ ------------ ------------
Net investment activity ...................... (141,448) (17,272) 313,776 131,667
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 18,276,339 2,279,536 7,083,397 2,504,087
Cost of mutual fund shares sold ................. (16,029,925) (1,795,569) (7,308,997) (2,465,358)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 2,246,414 483,967 (225,600) 38,729
Change in unrealized gain (loss) on investments . 1,176,291 868,118 (512,376) (5,148)
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... 3,422,705 1,352,085 (737,976) 33,581
------------ ------------ ------------ ------------
Reinvested capital gains ........................ -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,281,257 1,334,813 (424,200) 165,248
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners .............................. 2,215,491 2,699,310 1,521,766 2,254,240
Transfers between funds ......................... (4,785,700) 5,602,604 1,319,667 851,490
Redemptions ..................................... (2,746,087) (356,161) (1,151,013) (300,637)
Annuity benefits ................................ -- -- -- --
Adjustments to maintain reserves ................ 205 (275) (33) (5)
------------ ------------ ------------ ------------
Net equity transactions .................... (5,316,090) 7,945,478 1,690,387 2,805,095
------------ ------------ ------------ ------------
Net change in contract owners'equity .............. (2,034,833) 9,280,291 1,266,187 2,970,343
Contract owners'equity beginning of period ........ 29,628,162 4,591,009 15,073,995 3,920,140
------------ ------------ ------------ ------------
Contract owners'equity end of period .............. 27,593,329 13,871,300 16,340,182 6,890,483
============ ============ ============ ============
</TABLE>
10
<PAGE> 11
NATIONWIDE VASEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATMyMkt NSATSmCapV
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ $ 1,550,479 1,201,000 -- --
Mortality, expense and administration
charges (note 2) ............................. (502,637) (335,629) (8,447) (486)
------------- ------------- ------------- -------------
Net investment activity ...................... 1,047,842 865,371 (8,447) (486)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ........... 310,430,223 120,430,198 10,922,184 595,092
Cost of mutual fund shares sold ................. (310,430,223) (120,430,198) (10,661,838) (599,399)
------------- ------------- ------------- -------------
Realized gain (loss) on investments .......... -- -- 260,346 (4,307)
Change in unrealized gain (loss) on investments . -- -- 165,584 (1,818)
------------- ------------- ------------- -------------
Net gain (loss) on investments ............... -- -- 425,930 (6,125)
------------- ------------- ------------- -------------
Reinvested capital gains ........................ -- -- 21,718 --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,047,842 865,371 439,201 (6,611)
------------- ------------- ------------- -------------
Equity transactions:
Purchase payments received from
contract owners .............................. 31,822,044 43,301,508 58,299 14,374
Transfers between funds ......................... 18,751,847 (34,951,488) 2,159,966 500,143
Redemptions ..................................... (20,106,106) (4,800,912) (44,063) (4,355)
Annuity benefits ................................ -- -- -- --
Adjustments to maintain reserves ................ 16,623 (2,709) 28 2
------------- ------------- ------------- -------------
Net equity transactions .................... 30,484,408 3,546,398 2,174,229 510,164
------------- ------------- ------------- -------------
Net change in contract owners'equity .............. 31,532,250 4,411,769 2,613,430 503,553
Contract owners' equity beginning of period ....... 51,148,025 29,048,680 496,578 --
------------- ------------- ------------- -------------
Contract owners' equity end of period ............. $ 82,680,275 33,460,449 3,110,008 503,553
============= ============= ============= =============
NSATSmCo NSATTotRe
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ -- -- 55,279 49,044
Mortality, expense and administration
charges (note 2) ............................. (64,031) (55,221) (98,881) (58,100)
------------- ------------- ------------- -------------
Net investment activity ...................... (64,031) (55,221) (43,602) (9,056)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ........... 13,492,734 4,330,486 9,105,845 581,216
Cost of mutual fund shares sold ................. (12,547,974) (4,025,304) (8,250,525) (419,523)
------------- ------------- ------------- -------------
Realized gain (loss) on investments .......... 944,760 305,182 855,320 161,693
Change in unrealized gain (loss) on investments . (263,334) 85,650 445,164 837,494
------------- ------------- ------------- -------------
Net gain (loss) on investments ............... 681,426 390,832 1,300,484 999,187
------------- ------------- ------------- -------------
Reinvested capital gains ........................ -- -- 6,561 --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 617,395 335,611 1,263,443 990,131
------------- ------------- ------------- -------------
Equity transactions:
Purchase payments received from
contract owners .............................. 359,438 2,000,113 1,235,850 3,338,553
Transfers between funds ......................... 670,022 675,565 (714,034) 1,034,796
Redemptions ..................................... (577,814) (290,559) (1,054,346) (579,021)
Annuity benefits ................................ (756) -- -- --
Adjustments to maintain reserves ................ 75 (28) 116 (5)
------------- ------------- ------------- -------------
Net equity transactions .................... 450,965 2,385,091 (532,414) 3,794,323
------------- ------------- ------------- -------------
Net change in contract owners'equity .............. 1,068,360 2,720,702 731,029 4,784,454
Contract owners' equity beginning of period ....... 8,771,862 5,965,693 13,194,413 5,737,078
------------- ------------- ------------- -------------
Contract owners' equity end of period ............. 9,840,222 8,686,395 13,925,442 10,521,532
============= ============= ============= =============
</TABLE>
(Continued)
11
<PAGE> 12
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTGro NBAMTGuard
----------------------------- ---------------------------
1999 1998 1999 1998
----------- --------- --------- ------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .............................. $ -- -- 2,390 --
Mortality, expense and administration
charges (note 2) ................................ (15,483) (10,295) (6,066 (102)
----------- --------- --------- ------
Net investment activity ......................... (15,483) (10,295) (3,676) (102)
----------- --------- --------- ------
Proceeds from mutual fund shares sold ............. 2,624,715 1,273,472 961,804 81
Cost of mutual fund shares sold ................... (2,471,064) (1,364,523) (860,129) (84)
----------- --------- --------- ------
Realized gain (loss) on investments ............. 153,651 (91,051) 101,675 (3)
Change in unrealized gain (loss) on investments ... (275,288) (52,249) 20,293 554
----------- --------- --------- ------
Net gain (loss) on investments .................. (121,637) (143,300) 121,968 551
----------- --------- --------- ------
Reinvested capital gains .......................... 102,839 353,652 -- --
----------- --------- --------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ............ (34,281) 200,057 118,292 449
----------- --------- --------- ------
Equity transactions:
Purchase payments received from
contract owners ................................. 99,708 628,093 53,569 53,862
Transfers between funds ........................... (1,263,813) (284,546) 1,080,573 34,307
Redemptions ....................................... (206,068) (115,662) (229,566) --
Annuity benefits .................................. -- -- -- --
Adjustments to maintain reserves .................. 5 (3) -- --
----------- --------- --------- ------
Net equity transactions ....................... (1,370,168) 227,882 904,577 88,169
----------- --------- --------- ------
Net change in contract owners'equity ................ (1,404,449) 427,939 1,022,869 88,618
Contract owners' equity beginning of period ......... 3,260,519 1,422,982 691,579 --
----------- --------- --------- ------
Contract owners' equity end of period ............... $ 1,856,070 1,850,921 1,714,448 88,618
=========== ========= ========= ======
</TABLE>
<TABLE>
<CAPTION>
NBAMTLMat NBAMTPart
----------------------------- ---------------------------
1999 1998 1999 1998
----------- --------- --------- ------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .............................. 473,933 383,662 291,657 51,137
Mortality, expense and administration
charges (note 2) ................................ (59,433) (45,292) (144,182) (138,064)
----------- --------- ---------- ----------
Net investment activity ......................... 414,500 338,370 147,475 (86,927)
----------- --------- ---------- ----------
Proceeds from mutual fund shares sold ............. 2,940,067 2,487,670 11,901,192 14,098,408
Cost of mutual fund shares sold ................... (3,098,462) (2,447,356) (11,678,285) (13,113,121)
----------- --------- ---------- ----------
Realized gain (loss) on investments ............. (158,395) 40,314 222,907 985,287
Change in unrealized gain (loss) on investments ... (287,879) (269,947) 1,058,621 (1,831,512)
----------- --------- ---------- ----------
Net gain (loss) on investments .................. (446,274) (229,633) 1,281,528 (846,225)
----------- --------- ---------- ----------
Reinvested capital gains .......................... -- -- 507,229 1,610,813
----------- --------- ---------- ----------
Net increase (decrease) in contract owners' ...
equity resulting from operations (31,774) 108,737 1,936,232 677,661
----------- --------- ---------- ----------
Equity transactions:
Purchase payments received from
contract owners ................................. 696,882 2,316,836 934,857 6,133,318
Transfers between funds ........................... (1,791,154) (2,363,941) (8,327,643) 2,365,132
Redemptions ....................................... (934,285) (316,260) (1,156,760) (1,088,142)
Annuity benefits .................................. -- -- (769) --
Adjustments to maintain reserves .................. (3) 12 226 (1,766)
----------- --------- ---------- ----------
Net equity transactions ....................... (2,028,560) (363,353) (8,550,089) 7,408,543
----------- --------- ---------- ----------
Net change in contract owners' equity ............... (2,060,334) (254,616) (6,613,857) 8,086,204
Contract owners' equity beginning of period ......... 8,908,547 6,461,890 24,609,788 18,361,316
----------- --------- ---------- ----------
Contract owners' equity end of period ............... 6,848,213 6,207,274 17,995,931 26,447,520
=========== ========= ========== ==========
</TABLE>
12
<PAGE> 13
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
OppBdFd OppGlSec
--------------------------- -------------------------
1999 1998 1999 1998
------------ --------- ---------- ---------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ........................... $ 521,048 95,707 113,678 117,153
Mortality, expense and administration
charges (note 2) ............................. (76,940) (44,193) (73,762) (43,589)
------------ --------- ---------- ---------
Net investment activity ...................... 444,108 51,514 39,916 73,564
------------ --------- ---------- ---------
Proceeds from mutual fund shares sold .......... 2,992,177 1,302,882 2,970,797 666,482
Cost of mutual fund shares sold ................ (3,048,525) (1,258,314) (2,828,513) (530,175)
------------ --------- ---------- ---------
Realized gain (loss) on investments .......... (56,348) 44,568 142,284 136,307
Change in unrealized gain (loss) on investments. (675,002) 15,047 729,268 (64,155)
------------ --------- ---------- ---------
Net gain (loss) on investments ............... (731,350) 59,615 871,552 72,152
------------ --------- ---------- ---------
Reinvested capital gains ....................... 50,039 86,615 318,556 440,985
------------ --------- ---------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... (237,203) 197,744 1,230,024 586,701
------------ --------- ---------- ---------
Equity transactions:
Purchase payments received from
contract owners .............................. 664,733 2,053,048 522,256 1,617,483
Transfers between funds ........................ (977,695) 1,832,707 (340,800) 1,434,556
Redemptions .................................... (878,526) (382,338) (619,891) (280,943)
Annuity benefits ............................... -- -- (1,192) --
Adjustments to maintain reserves ............... (24) 6 117 33
------------ --------- ---------- ---------
Net equity transactions .................... (1,191,513) 3,503,422 (439,509) 2,771,129
------------ --------- ---------- ---------
Net change in contract owners' equity ............ (1,428,716) 3,701,166 790,515 3,357,830
Contract owners' equity beginning of period ...... 10,724,612 4,255,487 9,946,491 4,374,815
------------ --------- ---------- ---------
Contract owners' equity end of period ............ $ 9,295,896 7,956,653 10,737,006 7,732,645
============ ========= ========== =========
</TABLE>
<TABLE>
<CAPTION>
OppGro OppMult
--------------------------- ------------------------
1999 1998 1999 1998
------------ --------- ---------- ---------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ........................... 13,874 1,770 165,810 32,207
Mortality, expense and administration
charges (note 2) ............................. (24,655) (2,357) (35,884) (27,732)
------------ --------- ---------- ----------
Net investment activity ...................... (10,781) (587) 129,926 4,475
------------ --------- ---------- ----------
Proceeds from mutual fund shares sold .......... 497,846 63,523 863,451 237,408
Cost of mutual fund shares sold ................ (434,599) (61,635) (873,005) (206,558)
------------ --------- ---------- ----------
Realized gain (loss) on investments .......... 63,247 1,888 (9,554) 30,850
Change in unrealized gain (loss) on investments 279,855 27,369 1,319 (7,591)
------------ --------- ---------- ----------
Net gain (loss) on investments ............... 343,102 29,257 (8,235) 23,259
------------ --------- ---------- ----------
Reinvested capital gains ....................... 152,407 21,359 239,845 186,801
------------ --------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 484,728 50,029 361,536 214,535
------------ --------- ---------- ----------
Equity transactions:
Purchase payments received from
contract owners .............................. 174,904 257,307 210,159 1,036,792
Transfers between funds ........................ 3,155,009 263,224 (356,011) 426,761
Redemptions .................................... (364,884) (7,829) (143,204) (181,632)
Annuity benefits ............................... -- -- -- --
Adjustments to maintain reserves ............... 36 (7) 24 (2)
------------ --------- ---------- ----------
Net equity transactions .................... 2,965,066 512,695 1,281,919
------------ --------- ---------- ----------
Net change in contract owners' equity ............ 3,449,794 562,724 72,504 1,496,454
Contract owners' equity beginning of period ...... 1,405,954 142,386 4,950,413 3,224,563
------------ --------- ---------- ----------
Contract owners' equity end of period ............ 4,855,748 705,110 5,022,917 4,721,017
============ ========= ========== ==========
</TABLE>
(Continued)
13
<PAGE> 14
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
StOpp2 StDisc2
------------------------- -----------------------
1999 1998 1999 1998
----------- --------- --------- ---------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ........................... $ -- 2,899 -- --
Mortality, expense and administration
charges (note 2) ............................. (60,424) (68,583) (8,198) (8,857)
----------- ---------- --------- ---------
Net investment activity ...................... (60,424) (65,684) (8,198) (8,857)
----------- ---------- --------- ---------
Proceeds from mutual fund shares sold .......... 3,809,954 9,839,033 844,049 898,449
Cost of mutual fund shares sold ................ (3,778,753) (8,722,382) (973,570) (891,955)
----------- ---------- --------- ---------
Realized gain (loss) on investments .......... 31,201 1,116,651 (129,521) 6,494
Change in unrealized gain (loss) on investments 591,917 (985,262) (100,076) 68,908
----------- ---------- --------- ---------
Net gain (loss) on investments ............... 623,118 131,389 (229,597) 75,402
----------- ---------- --------- ---------
Reinvested capital gains ....................... 835,183 1,068,077 148,014 17,503
----------- ---------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 1,397,877 1,133,782 (89,781) 84,048
----------- ---------- --------- ---------
Equity transactions:
Purchase payments received from
contract owners .............................. 327,444 1,999,020 50,166 286,952
Transfers between funds ........................ (2,019,444) (7,507,658) (12,389) 77,037
Redemptions .................................... (406,313) (672,668) (72,924) (55,130)
Annuity benefits ............................... -- -- -- --
Adjustments to maintain reserves ............... 142 22 6 10
----------- ---------- --------- ---------
Net equity transactions .................... (2,098,171) (6,181,281) (35,142) 308,869
----------- ---------- --------- ---------
Net change in contract owners' equity ............ (700,294) (5,047,499) (124,923) 392,917
Contract owners'equity beginning of period ....... 9,715,041 13,294,201 1,138,651 1,101,162
----------- ---------- --------- ---------
Contract owners'equity end of period ............. $ 9,014,747 8,246,702 1,013,728 1,494,079
=========== ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
StIntStk2 VEWrldBd
------------------------- -----------------------
1999 1998 1999 1998
----------- ---------- --------- ---------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ........................... 5,672 29,980 81,369 17,723
Mortality, expense and administration
charges (note 2) ............................. (8,845) (21,960) (13,941) (15,478)
----------- ---------- --------- ---------
Net investment activity ...................... (3,173) 8,020 67,428 2,245
----------- ---------- --------- ---------
Proceeds from mutual fund shares sold .......... 1,988,976 3,178,538 720,415 436,949
Cost of mutual fund shares sold ................ (2,032,955) (3,462,775) (740,645) (430,290)
----------- ---------- --------- ---------
Realized gain (loss) on investments .......... (43,979) (284,237) (20,230) 6,659
Change in unrealized gain (loss) on investments 153,272 535,006 (240,408) 45,009
----------- ---------- --------- ---------
Net gain (loss) on investments ............... 109,293 250,769 (260,638) 51,668
----------- ---------- --------- ---------
Reinvested capital gains ....................... -- -- 36,356 --
----------- ---------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 106,120 258,789 (156,854) 53,913
----------- ---------- --------- ---------
Equity transactions:
Purchase payments received from
contract owners .............................. 30,942 373,495 42,772 326,515
Transfers between funds ........................ (667,485) (1,710,458) (226,751) 42,920
Redemptions .................................... (61,467) (248,179) (202,012) (98,858)
Annuity benefits ............................... -- -- -- --
Adjustments to maintain reserves ............... 19 15 (18) 23
----------- ---------- --------- ---------
Net equity transactions .................... (697,991) (1,585,127) (386,008) 270,600
----------- ---------- --------- ---------
Net change in contract owners' equity ............ (591,871) (1,326,338) (542,862) 324,513
Contract owners'equity beginning of period ....... 1,375,282 2,891,518 2,197,517 1,931,919
----------- ---------- --------- ---------
Contract owners'equity end of period ............. 783,411 1,565,180 1,654,655 2,256,432
=========== ========== ========= =========
</TABLE>
14
<PAGE> 15
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
VEWrldEMkt VEWrldHAs
--------------------------- --------------------------
1999 1998 1999 1998
------------ --------- --------- ---------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ........................... $ -- 11,626 11,193 12,719
Mortality, expense and administration
charges (note 2) ............................. (11,017) (10,722) (6,509) (10,147)
------------ --------- --------- ---------
Net investment activity ...................... (11,017) 904 4,684 2,572
------------ --------- --------- ---------
Proceeds from mutual fund shares sold .......... 10,441,127 1,098,712 8,803,055 1,850,669
Cost of mutual fund shares sold ................ (9,855,502) (1,551,908) (8,686,114) (2,313,504)
------------ --------- --------- ---------
Realized gain (loss) on investments .......... 585,625 (453,196) 116,941 (719,906)
Change in unrealized gain (loss) on investments 79,570 68,674 37,619 (36,049)
------------ --------- --------- ---------
Net gain (loss) on investments ............... 665,195 (384,522) 154,560 (498,884)
------------ --------- --------- ---------
Reinvested capital gains ....................... -- 10,334 -- 312,331
------------ --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 654,178 (373,284) 159,244 (183,981)
------------ --------- --------- ---------
Equity transactions:
Purchase payments received from
contract owners .............................. 40,809 357,557 6,631 71,225
Transfers between funds ........................ 2,591,443 (275,053) 42,855 (27,362)
Redemptions .................................... (139,385) (63,613) (173,095) (11,730)
Annuity benefits ............................... -- -- -- --
Adjustments to maintain reserves ............... 50 248 44 (1,156)
------------ --------- --------- ---------
Net equity transactions .................... 2,492,917 19,139 (123,565) 30,977
------------ --------- --------- ---------
Net change in contract owners'equity ............. 3,147,095 (354,145) 35,679 (153,004)
Contract owners' equity beginning of period ...... 1,071,134 1,542,884 880,479 1,447,250
------------ --------- --------- ---------
Contract owners' equity end of period ............ $ 4,218,229 1,188,739 916,158 1,294,246
============ ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
MSRESec WPIntEq
--------------------------- -----------------------
1999 1998 1999 1998
------------ --------- --------- ---------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ........................... 340,255 12,621 -- --
Mortality, expense and administration
charges (note 2) ............................. (39,835) (57,135) (44,591) (56,710)
------------ --------- --------- ----------
Net investment activity ...................... 300,420 (44,514) (44,591) (56,710)
------------ --------- --------- ----------
Proceeds from mutual fund shares sold .......... 3,329,977 1,435,058 47,053,407 6,286,843
Cost of mutual fund shares sold ................ (4,049,883) (1,370,710) (46,343,489) (6,249,441)
------------ --------- --------- ----------
Realized gain (loss) on investments .......... 64,348 709,918 37,402
Change in unrealized gain (loss) on investments 775,695 (589,986) 5,542 922,748
------------ --------- --------- ----------
Net gain (loss) on investments ............... 55,789 (525,638) 715,460 960,150
------------ --------- --------- ----------
Reinvested capital gains ....................... -- 124,195 -- --
------------ --------- --------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 356,209 (445,957) 670,869 903,440
------------ --------- --------- ----------
Equity transactions:
Purchase payments received from
contract owners .............................. 343,916 1,646,083 175,199 917,022
Transfers between funds ........................ (1,731,893) (533,281) 841,395 (900,258)
Redemptions .................................... (525,762) (228,949) (465,049) (373,417)
Annuity benefits ............................... -- -- -- --
Adjustments to maintain reserves ............... 33 (41) 66 47
------------ --------- --------- ----------
Net equity transactions .................... (1,913,707) 883,811 551,611 (356,602)
------------ --------- --------- ----------
Net change in contract owners' equity ............ (1,557,498) 437,854 1,222,480 546,838
Contract owners' equity beginning of period ...... 6,560,195 7,434,472 6,610,263 7,309,529
------------ --------- --------- ----------
Contract owners' equity end of period ............ 5,002,697 7,872,326 7,832,743 7,856,367
============ ========= ========= ==========
</TABLE>
(Continued)
15
<PAGE> 16
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
WPPVenCap WPSmCoGr
------------------------- -----------------------
1999 1998 1999 1998
----------- --------- --------- ----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ -- -- -- --
Mortality, expense and administration
charges (note 2) ............................ (5,331) (5,096) (61,123) (70,635)
----------- --------- --------- ----------
Net investment activity ..................... (5,331) (5,096) (61,123) (70,635)
----------- --------- --------- ----------
Proceeds from mutual fund shares sold ......... 534,755 717,973 5,159,936 1,510,471
Cost of mutual fund shares sold ............... (471,722) (679,034) (5,388,779) (1,145,597)
----------- --------- --------- ----------
Realized gain (loss) on investments ......... 63,033 38,939 (228,843) 364,874
Change in unrealized gain (loss) on investments 19,672 62,068 581,187 146,872
----------- --------- --------- ----------
Net gain (loss) on investments .............. 82,705 101,007 352,344 511,746
----------- --------- --------- ----------
Reinvested capital gains ...................... -- -- -- --
----------- --------- --------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 77,374 95,911 291,221 441,111
----------- --------- --------- ----------
Equity transactions:
Purchase payments received from
contract owners ............................. 45,376 98,515 280,180 1,655,605
Transfers between funds ....................... (201,431) 679,096 (2,418,046) 119,743
Redemptions ................................... (57,924) (13,194) (1,088,805) (426,584)
Annuity benefits .............................. -- -- -- --
Adjustments to maintain reserves .............. 3 5 10 (50)
----------- --------- --------- ----------
Net equity transactions ................... (213,976) 764,422 (3,226,661) 1,348,714
----------- --------- --------- ----------
Net change in contract owners' equity ........... (136,602) 860,333 (2,935,440) 1,789,825
Contract owners' equity beginning of period ..... 886,812 515,118 10,973,897 8,686,435
----------- --------- --------- ----------
Contract owners' equity end of period ........... $ 750,210 1,375,451 8,038,457 10,476,260
=========== ========= ========= ==========
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 17
- --------------------------------------------------------------------------------
NATIONWIDE VA SEPARATE ACCOUNT-B
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 AND 1998
(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 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 sales charge, but with 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:
Portfolios of the American Century Variable Portfolios, Inc.
(American Century VP)
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)
17
<PAGE> 18
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 - 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
(MSRESec)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
At June 30, 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 contract expenses (see note 2).
The accompanying financial statements include only contract owners'
purchase payments pertaining to the variable portions of their
contracts and exclude any purchase payments for fixed dollar benefits,
the latter being included in the accounts of the Company.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are available as investment options in variable life insurance policies
or variable annuity contracts issued by life insurance companies or, in
some cases, through participation in certain qualified pension or
retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
18
<PAGE> 19
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments made for
these contracts, nor is any sales charge deducted upon the surrender of the
contract.
The following contract 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.
(3) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
19
<PAGE> 20
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1999.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
-------- ---------- ---------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP Balanced:
Tax qualified................................. 98,401 $ 14.633812 $ 1,439,982 3%
Non-tax qualified............................. 194,362 14.633812 2,844,257 3%
American Century VP -
American Century VP Capital Appreciation:
Tax qualified................................. 70,809 9.927663 702,968 15%
Non-tax qualified............................. 172,892 9.927663 1,716,414 15%
American Century VP -
American Century VP Income & Growth:
Tax qualified................................. 72,702 11.784618 856,765 9%
Non-tax qualified............................. 197,653 11.784618 2,329,265 9%
American Century VP -
American Century VP International:
Tax qualified................................. 286,848 16.250014 4,661,284 7%
Non-tax qualified............................. 788,024 16.250014 12,805,401 7%
American Century VP -
American Century VP Value:
Tax qualified................................. 63,437 14.622483 927,606 12%
Non-tax qualified............................. 141,903 14.622483 2,074,974 12%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified................................. 181,600 20.604026 3,741,691 12%
Non-tax qualified............................. 235,970 20.604026 4,861,932 12%
Dreyfus Stock Index Fund:
Tax qualified................................. 900,386 21.463966 19,325,854 11%
Non-tax qualified............................. 1,797,845 21.463966 38,588,884 11%
Dreyfus VIF - Capital Appreciation Portfolio:....
Tax qualified................................. 134,809 13.950638 1,880,672 7%
Non-tax qualified............................. 355,738 13.950638 4,962,772 7%
Dreyfus VIF - Growth and Income Portfolio:
Tax qualified................................. 111,913 13.899308 1,555,513 10%
Non-tax qualified............................. 148,754 13.899308 2,067,578 10%
Fidelity VIP - Equity-Income Portfolio:
Tax qualified................................. 926,510 17.029402 15,777,911 12%
Non-tax qualified............................. 1,728,201 17.029402 29,430,230 12%
Fidelity VIP - Growth Portfolio:
Tax qualified................................. 568,498 21.012246 11,945,420 14%
Non-tax qualified............................. 1,305,111 21.012246 27,423,313 14%
Fidelity VIP - High Income Portfolio:
Tax qualified................................. 925,735 12.855690 11,900,962 7%
Non-tax qualified............................. 1,526,563 12.855690 19,625,021 7%
Fidelity VIP - Overseas Portfolio:
Tax qualified................................. 177,834 14.312456 2,545,241 7%
Non-tax qualified............................. 390,083 14.312456 5,583,046 7%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified................................. 224,775 15.538618 3,492,693 5%
Non-tax qualified............................. 588,186 15.538618 9,139,598 5%
</TABLE>
20
<PAGE> 21
<TABLE>
<S> <C> <C> <C> <C>
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified................................. 493,421 20.452737 10,091,810 10%
Non-tax qualified............................. 1,222,664 20.452737 25,006,825 10%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified................................. 272,249 14.182328 3,861,125 6%
Non-tax qualified............................. 1,258,877 14.182328 17,853,807 6%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified................................. 6,871 7.759218 53,314 12%
Non-tax qualified............................. 16,643 7.759218 129,137 12%
Nationwide SAT - Capital Appreciation Fund:
Tax qualified................................. 502,091 22.448420 11,271,150 11%
Non-tax qualified............................. 727,097 22.448420 16,322,179 11%
Nationwide SAT - Government Bond Fund:
Tax qualified................................. 489,253 11.433545 5,593,896 (3)%
Non-tax qualified............................. 939,891 11.433545 10,746,286 (3)%
Nationwide SAT - Money Market Fund:
Tax qualified................................. 3,089,420 11.286220 34,867,874 2%
Non-tax qualified............................. 4,236,352 11.286220 47,812,401 2%
Nationwide SAT - Small Cap Value Fund:
Tax qualified................................. 47,054 10.460560 492,211 23%
Non-tax qualified............................. 250,254 10.460560 2,617,797 23%
Nationwide SAT - Small Company Fund:
Tax qualified................................. 214,679 14.947388 3,208,890 7%
Non-tax qualified............................. 443,203 14.947388 6,624,727 7%
Nationwide SAT - Total Return Fund:
Tax qualified................................. 286,154 18.995128 5,435,532 10%
Non-tax qualified............................. 446,952 18.995128 8,489,910 10%
Neuberger & Berman AMT - Growth Portfolio:
Tax qualified................................. 25,295 15.500190 392,077 2%
Non-tax qualified............................. 94,450 15.500190 1,463,993 2%
Neuberger & Berman AMT - Guardian Portfolio:
Tax qualified................................. 47,209 10.794572 509,601 16%
Non-tax qualified............................. 111,616 10.794572 1,204,847 16%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio:
Tax qualified................................. 187,674 11.004770 2,065,309 0%
Non-tax qualified............................. 434,621 11.004770 4,782,904 0%
Neuberger & Berman AMT - Partners Portfolio:
Tax qualified................................. 310,524 18.297939 5,681,949 12%
Non-tax qualified............................. 672,614 18.297939 12,307,450 12%
Oppenheimer VAF - Bond Fund:
Tax qualified................................. 217,819 11.380189 2,478,821 (2)%
Non-tax qualified............................. 599,030 11.380189 6,817,075 (2)%
Oppenheimer VAF - Global Securities Fund:
Tax qualified................................. 251,568 17.209394 4,329,333 13%
Non-tax qualified............................. 371,731 17.209394 6,397,265 13%
</TABLE>
(Continued)
21
<PAGE> 22
<TABLE>
<S> <C> <C> <C> <C>
Oppenheimer VAF - Growth Fund:
Tax qualified................................. 148,147 14.642463 2,169,237 15%
Non-tax qualified............................. 183,474 14.642463 2,686,511 15%
Oppenheimer VAF - Multiple Strategies Fund:
Tax qualified................................. 84,147 14.551926 1,224,501 8%
Non-tax qualified............................. 261,025 14.551926 3,798,416 8%
Strong Opportunity Fund II, Inc.:
Tax qualified................................. 133,117 18.609978 2,477,304 19%
Non-tax qualified............................. 351,287 18.609978 6,537,443 19%
Strong VIF - Strong Discovery Fund II:
Tax qualified................................. 22,989 10.787785 248,000 (6)%
Non-tax qualified............................. 70,981 10.787785 765,728 (6)%
Strong VIF -
Strong International Stock Fund II:
Tax qualified................................. 21,274 9.243025 196,636 10%
Non-tax qualified............................. 63,483 9.243025 586,775 10%
Van Eck WIT - Worldwide Bond Fund:
Tax qualified................................. 51,447 10.543436 542,428 (8)%
Non-tax qualified............................. 105,490 10.543436 1,112,227 (8)%
Van Eck WIT - Worldwide Emerging Markets Fund:
Tax qualified................................. 102,614 8.256014 847,183 45%
Non-tax qualified............................. 408,314 8.256014 3,371,046 45%
Van Eck WIT - Worldwide Hard Assets Fund:
Tax qualified................................. 35,055 7.840396 274,845 17%
Non-tax qualified............................. 81,796 7.840396 641,313 17%
Van Kampen LIT-
Morgan Stanley Real Estate Securities Portfolio:
Tax qualified................................. 95,004 15.304291 1,453,969 8%
Non-tax qualified............................. 231,878 15.304291 3,548,728 8%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified................................. 161,661 11.093279 1,793,351 6%
Non-tax qualified............................. 544,419 11.093279 6,039,392 6%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax qualified................................. 19,957 13.336128 266,149 12%
Non-tax qualified............................. 36,297 13.336128 484,061 12%
Warburg Pincus Trust -
Small Company Growth Portfolio:
Tax qualified................................. 158,365 12.987268 2,056,729 6%
Non-tax qualified............................. 460,584 12.987268 5,981,728 6%
======== =========
Reserve for annuity contracts in payout phase:
Tax qualified................................. 66,693
----------
$ 552,287,135
==========
</TABLE>
* The period return does not include contract charges satisfied by surrendering
units.
- --------------------------------------------------------------------------------
22
<PAGE> 23
[THIS PAGE LEFT BLANK INTENTIONALLY]
23
<PAGE> 24
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA o COLUMBUS, OHIO 43215-2220
--------------
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
