<PAGE> 1
'99
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Nationwide(R) VA Separate Account - B
December 31, 1999
[THE BEST OF AMERICA(R) LOGO]
ANNUAL REPORT
AMERICA'S
Exclusive
ANNUITY(SM)
- --------------------------------------------------------------------------------
[Nationwide Logo]
Nationwide Life and Annuity Insurance Company
Home Office: Columbus, Ohio
APO-03233-H(12/99)
<PAGE> 2
[Nationwide Logo]
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[Joseph J. Gasper's Photo]
PRESIDENT'S MESSAGE
We at Nationwide Life and Annuity Insurance Company are pleased to bring you the
1999 annual report of the Nationwide VA Separate Account-B.
During 1999 equity investments extended their spirited advance to a fifth
consecutive year. The S&P 500 was the laggard of the major indices with a
year-over-year change of a respectable 19.53%. The NASDAQ topped the list at
over 85% with the other indices falling into line nearer the lower end of the
range. Fixed earnings investments did not fare as well in the current
environment of rising interest rates.
The U.S. economy remains strong, inflation remains docile and the available
labor pool is incessantly tight. Against this good-news-bad-news backdrop, the
Federal Reserve is increasingly concerned that recent productivity gains will
subside and ignite wage inflation. To date, the Fed has hiked short-term
interest rates a quarter percentage point on four occasions since last June.
Prospectively, they may well become more aggressive in their preemptive efforts
to dampen economic growth and avoid a new round of inflation.
We believe some caution may be warranted at this juncture. Certain market
sectors are well extended and may inevitably retreat to less lofty valuation
levels. However, we remain bullish for the long-term prospects of financial
assets. Your variable insurance contract provides an excellent resource to help
you achieve your long-term retirement savings and financial planning objectives.
We appreciate your trust in our company and in our investment products, and we
welcome and encourage your feedback.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
February 10, 2000
2
<PAGE> 3
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NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at market value:
American Century VP - American Century VP Balanced (ACVPBal)
535,753 shares (cost $4,113,475) ........................................... $ 4,173,515
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
246,170 shares (cost $2,912,899) ........................................... 3,653,168
American Century VP - American Century VP Income & Growth (ACVPIncGr)
404,868 shares (cost $2,899,307) ........................................... 3,238,941
American Century VP - American Century VP International (ACVPInt)
1,931,291 shares (cost $20,196,461) ........................................ 24,141,133
American Century VP - American Century VP Value (ACVPValue)
358,786 shares (cost $2,373,024) ........................................... 2,134,776
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
193,187 shares (cost $6,583,627) ........................................... 7,547,809
Dreyfus Stock Index Fund (DryStkIx)
1,583,950 shares (cost $55,887,642) ........................................ 60,902,889
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
129,936 shares (cost $5,190,443) ........................................... 5,180,563
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
152,247 shares (cost $3,286,969) ........................................... 3,879,246
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
1,299,973 shares (cost $34,329,471) ........................................ 33,422,296
Fidelity VIP - Growth Portfolio (FidVIPGr)
822,614 shares (cost $39,017,250) .......................................... 45,186,208
Fidelity VIP - High Income Portfolio (FidVIPHI)
2,567,324 shares (cost $28,467,184) ........................................ 29,036,435
Fidelity VIP - Overseas Portfolio (FidVIPOv)
296,912 shares (cost $7,569,856) ........................................... 8,147,255
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
645,435 shares (cost $11,102,030) .......................................... 12,050,267
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
1,169,537 shares (cost $29,452,994) ........................................ 34,092,009
</TABLE>
(Continued)
3
<PAGE> 4
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, Continued
<TABLE>
<S> <C>
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
884,356 shares (cost $19,905,045) .......................................... 20,472,834
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
27,893 shares (cost $196,174) .............................................. 192,744
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
565,679 shares (cost $15,719,221) .......................................... 14,543,616
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,442,691 shares (cost $16,393,706) ........................................ 15,566,639
Nationwide SAT - Money Market Fund (NSATMyMkt)
96,590,473 shares (cost $96,590,473) ....................................... 96,590,473
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
156,796 shares (cost $1,598,946) ........................................... 1,524,059
Nationwide SAT - Small Company Fund (NSATSmCo)
522,926 shares (cost $9,823,119) ........................................... 11,567,127
Nationwide SAT - Total Return Fund (NSATTotRe)
750,993 shares (cost $14,512,135) .......................................... 14,126,183
Neuberger &Berman AMT - Growth Portfolio (NBAMTGro)
183,977 shares (cost $5,702,226) ........................................... 6,856,826
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
109,525 shares (cost $1,666,576) ........................................... 1,735,974
Neuberger &Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
418,480 shares (cost $5,675,288) ........................................... 5,540,672
Neuberger &Berman AMT - Partners Portfolio (NBAMTPart)
663,549 shares (cost $12,396,891) .......................................... 13,032,110
Oppenheimer VAF - Bond Fund (OppBdFd)
737,300 shares (cost $8,805,253) ........................................... 8,493,691
Oppenheimer VAF - Global Securities Fund (OppGlSec)
324,883 shares (cost $9,331,250) ........................................... 10,854,325
Oppenheimer VAF - Growth Fund (OppGro)
202,880 shares (cost $8,925,555) ........................................... 10,111,551
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
301,845 shares (cost $5,069,103) ........................................... 5,270,205
Strong Opportunity Fund II, Inc. (StOpp2)
420,147 shares (cost $9,432,616) ........................................... 10,919,612
Strong VIF - Strong Discovery Fund II (StDisc2)
102,081 shares (cost $1,021,440) ........................................... 1,161,683
Strong VIF - Strong International Stock Fund II (StIntStk2)
136,347 shares (cost $1,658,335) ........................................... 2,231,999
</TABLE>
4
<PAGE> 5
<TABLE>
<S> <C>
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
142,640 shares (cost $1,588,333) ........................................... 1,524,825
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
179,980 shares (cost $2,187,350) ........................................... 2,566,510
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
86,979 shares (cost $919,484) .............................................. 953,288
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (MSRESec)
312,189 shares (cost $4,055,382) ........................................... 3,861,780
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
324,950 shares (cost $5,014,062) ........................................... 5,426,664
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
78,125 shares (cost $1,097,391) ............................................ 1,504,695
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
571,807 shares (cost $10,022,936) .......................................... 14,981,353
-----------
Total investments ....................................................... 558,397,948
Accounts receivable .............................................................. 294,217
-----------
Total assets ............................................................ 558,692,165
ACCOUNTS PAYABLE .................................................................... 19,666
-----------
CONTRACT OWNERS' EQUITY (NOTE 4) .................................................... $ 558,672,499
===========
</TABLE>
See accompanying notes to financial statements.
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5
<PAGE> 6
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NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
STATEMENT OF OPERATIONS
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
TOTAL ACVPBal
-------------------------------- ---------------------------
1999 1998 1999 1998
--------------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 12,209,397 7,818,099 84,936 33,348
Mortality, expense and
administration charges (note 2)...... (7,811,199) (5,643,109) (62,221) (39,181)
-------------- -------------- ---------- ----------
Net investment activity.............. 4,398,198 2,174,990 22,715 (5,833)
-------------- -------------- ---------- ----------
Proceeds from mutual fund
shares sold.......................... 1,813,953,387 724,145,392 1,532,098 1,370,465
Cost of mutual fund shares sold......... (1,757,424,692) (716,278,224) (1,666,613) (1,340,497)
-------------- -------------- ---------- ----------
Realized gain (loss) on investments.. 56,528,695 7,867,168 (134,515) 29,968
Change in unrealized gain (loss)
on investments....................... 6,717,970 16,445,711 (147,565) 124,972
-------------- -------------- ---------- ----------
Net gain (loss) on investments....... 63,246,665 24,312,879 (282,080) 154,940
-------------- -------------- ---------- ----------
Reinvested capital gains............... 14,782,161 13,663,741 586,056 206,788
-------------- -------------- ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations...... 82,427,024 40,151,610 326,691 355,895
-------------- -------------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 78,276,261 241,794,992 374,539 1,611,751
Transfers between funds................ - - (9,888) 866,011
Redemptions............................ (106,692,804) (49,104,065) (500,529) (417,463)
Annuity benefits ...................... (19,404) (3,683) - -
Adjustments to maintain reserves....... 294,335 (13,743) (64) 169
-------------- -------------- ---------- ----------
Net equity transactions............ (28,141,612) 192,673,501 (135,942) 2,060,468
-------------- -------------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 54,285,412 232,825,111 190,749 2,416,363
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 504,387,087 271,561,976 3,982,699 1,566,336
-------------- -------------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 558,672,499 504,387,087 4,173,448 3,982,699
============== ============== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
ACVPCapAp ACVPIncGr
--------------------------- ---------------------------
1999 1998 1999 1998
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - - 600 13,971
Mortality, expense and
administration charges (note 2)...... (36,197) (23,230) (40,673) (9,285)
--------- ---------- ---------- ----------
Net investment activity.............. (36,197) (23,230) (40,073) 4,686
--------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold.......................... 6,617,383 1,861,327 3,541,056 3,462,801
Cost of mutual fund shares sold......... (5,926,294) (2,002,979) (3,237,874) (3,421,020)
--------- ---------- ---------- ----------
Realized gain (loss) on investments.. 691,089 (141,652) 303,182 41,781
Change in unrealized gain (loss)
on investments....................... 658,964 125,669 164,310 175,325
--------- ---------- ---------- ----------
Net gain (loss) on investments....... 1,350,053 (15,983) 467,492 217,106
--------- ---------- ---------- ----------
Reinvested capital gains............... - 77,047 - -
--------- ---------- ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations...... 1,313,856 37,834 427,419 221,792
--------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 104,184 538,949 429,821 586,130
Transfers between funds................ 1,069,815 (186,436) 867,863 1,836,457
Redemptions............................ (386,137) (172,970) (964,403) (164,220)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... 67 10 2,354 (1,953)
--------- ---------- ---------- ----------
Net equity transactions............ 787,929 179,553 335,635 2,256,414
--------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 2,101,785 217,387 763,054 2,478,206
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 1,551,448 1,334,061 2,478,206 -
--------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 3,653,233 1,551,448 3,241,260 2,478,206
========= ========== ============== ==========
</TABLE>
6
<PAGE> 7
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (244,975) (159,363) (40,228) (39,441)
-------------- ------------ ---------- ----------
Net investment activity.............. (244,975) (119,591) (18,127) (26,960)
-------------- ------------ ---------- ----------
Proceeds from mutual fund shares sold.. 127,078,667 31,356,628 5,753,466 3,069,812
Cost of mutual fund shares sold........ (119,686,321) (31,185,304) (5,935,589) (3,124,822)
-------------- ------------ ---------- ----------
Realized gain (loss) on investments.. 7,392,346 171,324 (182,123) (55,010)
Change in unrealized gain (loss)
on investments....................... 3,088,550 719,921 (279,714) 27,951
-------------- ------------ ---------- ----------
Net gain (loss) on investments....... 10,480,896 891,245 (461,837) (27,059)
-------------- ------------ ---------- ----------
Reinvested capital gains............... - 408,286 209,382 149,013
-------------- ------------ ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations........ 10,235,921 1,179,940 (270,582) 94,994
-------------- ------------ ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 1,230,040 4,813,488 338,659 1,438,016
Transfers between funds................ 1,077,633 3,543,125 (886,385) 333,167
Redemptions............................ (2,067,608) (803,970) (324,178) (278,803)
Annuity benefits ...................... (3,019) (542) (1,537) (354)
Adjustments to maintain reserves....... (2,209) (221) (58) (438)
-------------- ------------ ---------- ----------
Net equity transactions............ 234,837 7,551,880 (873,499) 1,491,588
-------------- ------------ ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 10,470,758 8,731,820 (1,144,081) 1,586,582
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 13,661,390 4,929,570 3,278,763 1,692,181
-------------- ------------ ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 24,132,148 13,661,390 2,134,682 3,278,763
============== ============ ========== ==========
</TABLE>
<TABLE>
<CAPTION>
DrySRGro DryStkIx
--------------------------- ---------------------------
1999 1998 1999 1998
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 925 8,472 595,958 522,901
Mortality, expense and administration
charges (note 2)..................... (102,904) (63,111) (817,328) (485,796)
---------- ------------ ---------- ------------
Net investment activity.............. (101,979) (54,639) (221,370) 37,105
---------- ------------ ---------- ------------
Proceeds from mutual fund shares sold.. 5,480,508 6,586,671 61,300,160 39,332,503
Cost of mutual fund shares sold........ (4,578,885) (6,462,288) (51,324,024) (36,715,362)
---------- ------------ ---------- ------------
Realized gain (loss) on investments.. 901,623 124,383 9,976,136 2,617,141
Change in unrealized gain (loss)
on investments....................... 551,875 442,083 (577,072) 5,058,856
---------- ------------ ---------- ------------
Net gain (loss) on investments....... 1,453,498 566,466 9,399,064 7,675,997
---------- ------------ ---------- ------------
Reinvested capital gains............... 249,138 196,095 514,716 95,170
---------- ------------ ---------- ------------
Net increase (decrease) in
contract owners' equity
resulting from operations........ 1,600,657 707,922 9,692,410 7,808,272
---------- ------------ ---------- ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 703,482 1,619,005 7,548,957 17,316,091
Transfers between funds................ 794,953 95,845 (3,376,077) 15,572,652
Redemptions............................ (1,001,950) (326,063) (7,057,239) (2,773,953)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... 102 28 609 (560)
---------- ------------ ---------- ------------
Net equity transactions............ 496,587 1,388,815 (2,883,750) 30,114,230
---------- ------------ ---------- ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 2,097,244 2,096,737 6,808,660 37,922,502
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 5,450,670 3,353,933 54,094,842 16,172,340
---------- ------------ ---------- ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 7,547,914 5,450,670 60,903,502 54,094,842
========== ============ ============== ==========
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
DryCapAp DryGrInc
----------------------------- ----------------------------
1999 1998 1999 1998
------------- ------------ ------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 82,047 22,474 21,630 24,522
Mortality, expense and administration
charges (note 2)..................... (128,571) (34,717) (50,582) (33,541)
-------------- ------------- ------------- -----------
Net investment activity.............. (46,524) (12,243) (28,952) (9,019)
-------------- ------------- ------------- -----------
Proceeds from mutual fund shares sold.. 46,132,612 5,604,652 987,750 2,360,951
Cost of mutual fund shares sold........ (44,911,896) (5,779,706) (924,568) (2,425,101)
-------------- ------------- ------------- -----------
Realized gain (loss) on investments.. 1,220,716 (175,054) 63,182 (64,150)
Change in unrealized gain (loss)
on investments....................... (524,951) 516,519 349,913 289,005
-------------- ------------- -------------- -----------
Net gain (loss) on investments....... 695,765 341,465 413,095 224,855
-------------- ------------- ------------- -----------
Reinvested capital gains............... 55,124 574 117,578 33,632
-------------- ------------- ------------- -----------
Net increase (decrease) in contract
owners' equity resulting from
operations.......................... 704,365 329,796 501,721 249,468
-------------- ------------- ------------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 839,452 1,296,381 272,978 1,731,959
Transfers between funds................ 938,506 3,114,305 31,306 456,443
Redemptions............................ (2,181,652) (237,901) (380,817) (219,063)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... (15) (757) 16 (522)
-------------- ------------- ------------- -----------
Net equity transactions............ (403,709) 4,172,028 (76,517) 1,968,817
-------------- ------------- ------------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 300,656 4,501,824 425,204 2,218,285
CONTRACT OWNERS' EQUITY BEGINNING OF
PERIOD................................. 4,879,906 378,082 3,454,067 1,235,782
-------------- ------------- ------------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 5,180,562 4,879,906 3,879,271 3,454,067
============== ============= ============= ===========
</TABLE>
<TABLE>
<CAPTION>
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)..................... (660,180) (540,327) (567,708) (299,659)
----------- ------------ ---------- ---------
Net investment activity.............. 58,475 (102,130) (504,956) (203,009)
----------- ------------ ---------- ---------
Proceeds from mutual fund shares sold.. 55,517,129 34,659,555 79,869,201 49,056,647
Cost of mutual fund shares sold........ (52,009,973) (31,406,671) (72,708,952) (46,848,717)
----------- ------------ ---------- ---------
Realized gain (loss) on investments.. 3,507,156 3,252,884 7,160,249 2,207,930
Change in unrealized gain (loss)
on investments....................... (3,467,328) (1,043,501) 1,895,516 2,012,302
------------ -------------- -------------- --------------
Net gain (loss) on investments....... 39,828 2,209,383 9,055,765 4,220,232
----------- ------------ ---------- ---------
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.......................... 1,686,909 3,666,719 12,496,331 6,545,388
----------- ------------ ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,909,702 17,187,231 3,494,471 6,866,625
Transfers between funds................ (13,728,204) 2,340,278 5,545,659 (4,825,633)
Redemptions............................ (6,482,410) (3,613,020) (7,399,782) (2,061,683)
Annuity benefits ...................... (2,988) (711) (4,108) (783)
Adjustments to maintain reserves....... 55,498 551 31,244 (188)
----------- ------------ ---------- ---------
Net equity transactions............ (17,248,402) 15,914,329 1,667,484 (21,662)
----------- ------------ ---------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (15,561,493) 19,581,048 14,163,815 6,523,726
CONTRACT OWNERS' EQUITY BEGINNING OF
PERIOD................................. 49,039,213 29,458,165 31,053,591 24,529,865
----------- ------------ ---------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 33,477,720 49,039,213 45,217,406 31,053,591
=========== ============ ============== ==========
</TABLE>
8
<PAGE> 9
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (429,544) (411,908) (109,701) (77,315)
-------------- ----------- ---------- -----------
Net investment activity.............. 2,619,824 1,239,461 (27,067) 4,796
-------------- ----------- ---------- -----------
Proceeds from mutual fund shares sold.. 49,445,073 34,216,558 133,300,844 29,186,608
Cost of mutual fund shares sold........ (51,382,276) (36,081,568) (130,144,938) (28,928,508)
-------------- ----------- ---------- -----------
Realized gain (loss) on investments.. (1,937,203) (1,865,010) 3,155,906 258,100
Change in unrealized gain (loss)
on investments....................... 1,560,104 (2,094,999) 405,515 253,115
-------------- ----------- ---------- -----------
Net gain (loss) on investments....... (377,099) (3,960,009) 3,561,421 511,215
-------------- ----------- ---------- -----------
Reinvested capital gains............... 113,995 1,049,307 133,280 242,012
-------------- ----------- ---------- -----------
Net increase (decrease) in
contract owners' equity
resulting from operations......... 2,356,720 (1,671,241) 3,667,634 758,023
-------------- ----------- ---------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners......................
Transfers between funds................ 1,998,374 17,519,558 600,133 2,071,208
Redemptions............................ (3,776,540) (1,398,748) (957,966) (270,743)
Annuity benefits ...................... (3,500,166) (2,706,795) (848,535) (491,688)
Adjustments to maintain reserves....... - - - -
Net equity transactions............ 710 (64) (1,343) 44
-------------- ----------- ---------- -----------
(5,277,622) 13,413,951 (1,207,711) 1,308,821
-------------- ----------- ---------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (2,920,902) 11,742,710 2,459,923 2,066,844
CONTRACT OWNERS' EQUITY BEGINNING OF
PERIOD................................. 31,958,042 20,215,332 5,686,000 3,619,156
-------------- ---------- ---------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 29,037,140 31,958,042 8,145,923 5,686,000
============== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
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)..................... (171,911) (111,292) (533,225) (355,761)
---------- ----------- --------- ---------
Net investment activity.............. 193,348 58,223 (339,704) (244,407)
---------- ----------- --------- ---------
Proceeds from mutual fund shares sold.. 4,177,593 2,252,969 42,424,562 29,737,118
Cost of mutual fund shares sold........ (4,082,871) (2,135,006) (36,005,223) (27,128,669)
---------- ----------- --------- ---------
Realized gain (loss) on investments.. 94,722 117,963 6,419,339 2,608,449
Change in unrealized gain (loss)
on investments....................... 307,881 249,950 (669,926) 3,503,323
---------- ----------- --------- ---------
Net gain (loss) on investments....... 402,603 367,913 5,749,413 6,111,772
---------- ----------- --------- ---------
Reinvested capital gains............... 462,661 508,545 1,419,156 819,250
---------- ----------- --------- ---------
Net increase (decrease) in
contract owners' equity
resulting from operations......... 1,058,612 934,681 6,828,865 6,686,615
---------- ----------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners......................
Transfers between funds................ 1,986,331 3,941,991 2,446,510 8,215,815
Redemptions............................ 706,046 359,310 (7,950,349) 3,891,022
Annuity benefits ...................... (1,323,417) (460,173) (5,358,878) (2,172,888)
Adjustments to maintain reserves....... - - (291) -
Net equity transactions............ 134 63 104,739 427
---------- ---------- --------- ---------
1,369,094 3,841,191 (10,758,269) 9,934,376
---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 2,427,706 4,775,872 (3,929,404) 16,620,991
CONTRACT OWNERS' EQUITY BEGINNING OF
PERIOD................................. 9,622,689 4,846,817 38,126,162 21,505,171
---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 12,050,395 9,622,689 34,196,758 38,126,162
========== ========== ========== ==========
</TABLE>
(Continued)
9
<PAGE> 10
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FidVIPGROp MSEmMkt
-------------------------------- ---------------------------
1999 1998 1999 1998
--------------- -------------- ------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 219,859 44,124 23,840 24,096
Mortality, expense and administration
charges (note 2)..................... (350,970) (213,834) (5,157) (3,100)
------------- ------------ ---------- ----------
Net investment activity.............. (131,111) (169,710) 18,683 20,996
------------- ------------ ---------- ----------
Proceeds from mutual fund shares sold.. 60,735,974 5,537,239 3,802,365 975,706
Cost of mutual fund shares sold........ (58,040,123) (5,154,732) (3,748,962) (1,073,479)
------------- ------------ ---------- ----------
Realized gain (loss) on investments.. 2,695,851 382,507 53,403 (97,773)
Change in unrealized gain (loss) on
investments ......................... (2,262,934) 2,707,877 15,494 (10,716)
------------- ------------ ---------- ----------
Net gain (loss) on investments....... 432,917 3,090,384 68,897 (108,489)
------------- ------------ ---------- ----------
Reinvested capital gains............... 411,041 153,385 - -
------------- ------------ ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations......... 712,847 3,074,059 87,580 (87,493)
------------- ------------ ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 961,172 5,943,854 68,452 140,519
Transfers between funds................ (767,741) 10,961,989 (225,156) 220,119
Redemptions............................ (1,944,495) (1,426,662) (76,261) (41,788)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... 70,237 (49) 5 (16)
------------- ------------ ---------- ----------
Net equity transactions............ (1,680,827) 15,479,132 (232,960) 318,834
------------- ------------ ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (967,980) 18,553,191 (145,380) 231,341
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD............................. 21,511,059 2,957,868 338,131 106,790
------------- ------------ ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 20,543,079 21,511,059 192,751 338,131
============= ============ ========== ==========
</TABLE>
<TABLE>
<CAPTION>
NSATCapAp NSATGvtBd
--------------------------- ---------------------------
1999 1998 1999 1998
------------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 143,254 121,205 857,631 530,836
Mortality, expense and administration
charges (note 2)..................... (403,135) (194,651) (229,882) (129,786)
---------- ----------- ---------- ----------
Net investment activity.............. (259,881) (73,446) 627,749 401,050
---------- ----------- ---------- ----------
Proceeds from mutual fund shares sold.. 46,186,547 8,182,493 13,275,910 14,587,330
Cost of mutual fund shares sold........ (43,049,778) (7,321,337) (13,973,544) (14,190,888)
---------- ----------- ---------- ----------
Realized gain (loss) on investments.. 3,136,769 861,156 (697,634) 396,442
Change in unrealized gain (loss) on
investments ......................... (3,036,396) 1,616,515 (536,083) (294,787)
---------- ----------- ---------- ----------
Net gain (loss) on investments....... 100,373 2,477,671 (1,233,717) 101,655
---------- ----------- ---------- ----------
Reinvested capital gains............... 998,848 824,866 29,496 72,331
---------- ----------- ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations......... 839,340 3,229,091 (576,472) 575,036
---------- ----------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,742,904 10,137,216 1,871,746 6,945,212
Transfers between funds................ (12,557,885) 12,658,826 1,366,887 4,673,391
Redemptions............................ (6,108,886) (987,832) (2,169,513) (1,039,812)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... (51) (148) (84) 28
---------- ----------- ---------- ----------
Net equity transactions............ (15,923,918) 21,808,062 1,069,036 10,578,819
---------- ----------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (15,084,578) 25,037,153 492,564 11,153,855
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD............................. 29,628,162 4,591,009 15,073,995 3,920,140
---------- ----------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 14,543,584 29,628,162 15,566,559 15,073,995
========== ========== ========== ==========
</TABLE>
10
<PAGE> 11
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NSATMyMkt NSATSmCapV
------------------------------ ------------------------------
1999 1998 1999 1998
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 3,524,835 2,938,981 - -
Mortality, expense and administration
charges (note 2)..................... (1,094,707) (833,529) (30,069) (3,866)
-------------- -------------- ----------- -----------
Net investment activity.............. 2,430,128 2,105,452 (30,069) (3,866)
-------------- -------------- ----------- -----------
Proceeds from mutual fund shares sold.. 745,935,436 295,687,265 18,339,627 3,943,236
Cost of mutual fund shares sold........ (745,935,436) (295,687,265) (18,072,852) (3,883,376)
-------------- -------------- ----------- -----------
Realized gain (loss) on investments.. - - 266,775 59,860
Change in unrealized gain (loss)
on investments...................... - - (91,757) 16,870
-------------- -------------- ----------- -----------
Net gain (loss) on investments....... - - 175,018 76,730
-------------- -------------- ----------- -----------
Reinvested capital gains............... - - 230,135 -
-------------- -------------- ----------- -----------
Net increase (decrease) in
contract owners' equity
resulting from operations......... 2,430,128 2,105,452 375,084 72,864
-------------- -------------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 38,509,617 82,240,994 181,544 38,202
Transfers between funds................ 41,288,252 (44,327,285) 1,849,447 418,553
Redemptions............................ (36,785,520) (17,913,246) (1,378,599) (33,044)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... 37,103 (6,570) 16 3
-------------- -------------- ----------- -----------
Net equity transactions............ 43,049,452 19,993,893 652,408 423,714
-------------- -------------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 45,479,580 22,099,345 1,027,492 496,578
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD............................. 51,148,025 29,048,680 496,578 -
-------------- -------------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 96,627,605 51,148,025 1,524,070 496,578
============== ============== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
NSATSmCo NSATTotRe
--------------------------- ---------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - - 90,376 106,763
Mortality, expense and administration
charges (note 2)..................... (139,907) (113,941) (198,076) (140,429)
---------- ----------- ----------- ----------
Net investment activity.............. (139,907) (113,941) (107,700) (33,666)
---------- ----------- ----------- ----------
Proceeds from mutual fund shares sold.. 32,926,301 12,581,286 14,771,750 3,147,742
Cost of mutual fund shares sold........ (30,327,923) (13,368,773) (13,536,263) (2,495,533)
---------- ----------- ----------- ----------
Realized gain (loss) on investments.. 2,598,378 (787,487) 1,235,487 652,209
Change in unrealized gain (loss)
on investments...................... 756,420 965,697 (1,000,830) 250,851
---------- ----------- ----------- ----------
Net gain (loss) on investments....... 3,354,798 178,210 234,657 903,060
---------- ----------- ----------- ----------
Reinvested capital gains............... 478,555 - 500,011 507,144
---------- ----------- ----------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations......... 3,693,446 64,269 626,968 1,376,538
---------- ----------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 574,894 3,669,854 1,669,251 5,926,331
Transfers between funds................ 745,285 (266,510) 217,154 1,236,248
Redemptions............................ (2,216,287) (660,591) (1,581,603) (1,081,832)
Annuity benefits ...................... (2,123) (369) - -
Adjustments to maintain reserves....... 162 (484) 3 50
---------- ----------- ----------- ----------
Net equity transactions............ (898,069) 2,741,900 304,805 6,080,797
---------- ----------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 2,795,377 2,806,169 931,773 7,457,335
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD............................. 8,771,862 5,965,693 13,194,413 5,737,078
---------- ----------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 11,567,239 8,771,862 14,126,186 13,194,413
========== =========== =========== ==========
</TABLE>
(Continued)
11
<PAGE> 12
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (33,251) (24,594) (16,802) (4,269)
-------------- ------------- ----------- -----------
Net investment activity.............. (33,251) (24,594) (14,412) (4,269)
-------------- ------------- ----------- -----------
Proceeds from mutual fund shares sold.. 4,382,982 2,684,965 3,617,122 1,888,089
Cost of mutual fund shares sold........ (4,081,950) (2,990,491) (3,544,186) (2,041,785)
-------------- ------------- ----------- -----------
Realized gain (loss) on investments.. 301,032 (305,526) 72,936 (153,696)
Change in unrealized gain (loss)
on investments....................... 817,823 218,132 (2,868) 72,266
-------------- ------------- ----------- -----------
Net gain (loss) on investments....... 1,118,855 (87,394) 70,068 (81,430)
-------------- ------------- ----------- -----------
Reinvested capital gains............... 102,839 353,652 - -
-------------- ------------- ----------- -----------
Net increase (decrease) in
contract owners' equity
resulting from operations...... 1,188,443 241,664 55,656 (85,699)
-------------- ------------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 98,067 955,194 61,911 357,425
Transfers between funds................ 2,645,469 862,118 1,389,926 438,620
Redemptions............................ (335,675) (221,438) (463,097) (18,761)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... 54 (1) (8) (6)
-------------- ------------- ----------- -----------
Net equity transactions............ 2,407,915 1,595,873 988,732 777,278
-------------- ------------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 3,596,358 1,837,537 1,044,388 691,579
CONTRACT OWNERS' EQUITY BEGINNING OF
PERIOD................................. 3,260,519 1,422,982 691,579 -
-------------- ------------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 6,856,877 3,260,519 1,735,967 691,579
============== ============= =========== ===========
</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)..................... (105,699) (100,735) (260,080) (292,955)
--------- ----------- ---------- ----------
Net investment activity.............. 368,234 282,927 31,577 (241,818)
--------- ----------- ---------- ----------
Proceeds from mutual fund shares sold.. 4,896,009 4,392,774 18,568,349 31,975,759
Cost of mutual fund shares sold........ (5,107,339) (4,372,745) (17,653,457) (33,531,240)
--------- ----------- ---------- ----------
Realized gain (loss) on investments.. (211,330) 20,029 914,892 (1,555,481)
Change in unrealized gain (loss)
on investments....................... (162,778) (115,698) (685,018) 125,336
--------- ----------- ---------- ----------
Net gain (loss) on investments....... (374,108) (95,669) 229,874 (1,430,145)
--------- ----------- ---------- ----------
Reinvested capital gains............... - - 507,229 1,610,813
--------- ----------- ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations...... (5,874) 187,258 768,680 (61,150)
--------- ----------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 817,903 5,590,575 1,170,383 8,523,714
Transfers between funds................ (2,291,304) (2,604,986) (11,477,114) (492,756)
Redemptions............................ (1,888,599) (726,206) (2,037,854) (1,718,726)
Annuity benefits ...................... - - (1,792) (369)
Adjustments to maintain reserves....... (12) 16 (92) (2,241)
--------- ----------- ---------- ----------
Net equity transactions............ (3,362,012) 2,259,399 (12,346,469) 6,309,622
--------- ----------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (3,367,886) 2,446,657 (11,577,789) 6,248,472
CONTRACT OWNERS' EQUITY BEGINNING OF
PERIOD................................. 8,908,547 6,461,890 24,609,788 18,361,316
--------- ----------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 5,540,661 8,908,547 13,031,999 24,609,788
========= =========== ========== ===========
</TABLE>
12
<PAGE> 13
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (142,663) (113,685) (147,760) (101,065)
------------- ------------- ----------- -----------
Net investment activity.............. 378,385 (17,978) (34,082) 16,088
------------- ------------- ----------- -----------
Proceeds from mutual fund shares sold.. 4,950,607 2,568,684 25,522,876 3,307,812
------------- ------------- ----------- -----------
Cost of mutual fund shares sold........ (5,075,215) (2,486,541) (22,308,190) (2,953,078)
Realized gain (loss) on investments.. (124,608) 82,143 3,214,686 354,734
Change in unrealized gain (loss)
on investments....................... (593,132) 229,678 908,671 225,573
------------- ------------- ----------- -----------
Net gain (loss) on investments....... (717,740) 311,821 4,123,357 580,307
------------- ------------- ----------- -----------
Reinvested capital gains............... 50,039 86,615 318,556 440,985
------------- ------------- ----------- -----------
Net increase (decrease) in
contract owners' equity
resulting from operations...... (289,316) 380,458 4,407,831 1,037,380
------------- ------------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 1,008,386 4,816,861 664,356 4,409,750
Transfers between funds................ (1,563,027) 2,107,953 (2,467,451) 722,373
Redemptions............................ (1,386,958) (836,169) (1,700,498) (597,013)
Annuity benefits ...................... - - (3,102) (555)
Adjustments to maintain reserves....... (41) 22 (2,033) (259)
------------- ------------- ----------- -----------
Net equity transactions............ (1,941,640) 6,088,667 (3,508,728) 4,534,296
------------- ------------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (2,230,956) 6,469,125 899,103 5,571,676
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 10,724,612 4,255,487 9,946,491 4,374,815
------------- ------------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 8,493,656 10,724,612 10,845,594 9,946,491
============= ============= =========== ===========
</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)..................... (60,967) (9,900) (72,453) (63,381)
----------- ------------ ----------- ----------
Net investment activity.............. (47,093) (8,130) 93,357 (31,174)
----------- ------------ ----------- ----------
Proceeds from mutual fund shares sold.. 7,813,912 327,310 1,160,615 1,047,503
Cost of mutual fund shares sold........ (7,382,900) (334,321) (1,178,405) (1,009,629)
----------- ------------ ----------- ----------
Realized gain (loss) on investments.. 431,012 (7,011) (17,790) 37,874
Change in unrealized gain (loss)
on investments....................... 1,015,040 172,182 163,061 (44,041)
----------- ------------ ----------- ----------
Net gain (loss) on investments....... 1,446,052 165,171 145,271 (6,167)
----------- ------------ ----------- ----------
Reinvested capital gains............... 152,407 21,359 239,845 186,801
----------- ------------ ----------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations...... 1,551,366 178,400 478,473 149,460
----------- ------------ ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 286,263 677,648 320,580 1,721,887
Transfers between funds................ 7,500,359 449,508 (172,557) 355,122
Redemptions............................ (632,389) (41,990) (306,699) (500,624)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... 64 2 15 5
----------- ------------ ----------- ----------
Net equity transactions............ 7,154,297 1,085,168 (158,661) 1,576,390
----------- ------------ ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 8,705,663 1,263,568 319,812 1,725,850
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 1,405,954 142,386 4,950,413 3,224,563
----------- ------------ ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 10,111,617 1,405,954 5,270,225 4,950,413
=========== ============ =========== ==========
</TABLE>
(Continued)
13
<PAGE> 14
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
StOpp2 StDisc2
------------------------------- ----------------------------
1999 1998 1999 1998
-------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - 22,334 - -
Mortality, expense and administration
charges (note 2)..................... (124,119) (131,492) (15,568) (17,066)
-------------- ------------- ----------- -----------
Net investment activity.............. (124,119) (109,158) (15,568) (17,066)
-------------- ------------- ----------- -----------
Proceeds from mutual fund shares sold.. 8,946,725 11,862,831 1,476,638 1,375,858
Cost of mutual fund shares sold........ (8,374,877) (10,831,437) (1,758,063) (1,352,631)
-------------- ------------- ----------- -----------
Realized gain (loss) on investments.. 571,848 1,031,394 (281,425) 23,227
Change in unrealized gain (loss)
on investments....................... 1,190,733 (689,209) 133,521 43,397
-------------- ------------- ----------- -----------
Net gain (loss) on investments....... 1,762,581 342,185 (147,904) 66,624
-------------- ------------- ----------- -----------
Reinvested capital gains............... 835,183 1,068,077 148,014 17,503
-------------- ------------- ----------- -----------
Net increase (decrease) in
contract owners' equity
resulting from operations......... 2,473,645 1,301,104 (15,458) 67,061
-------------- ------------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 444,100 4,070,443 117,799 408,343
Transfers between funds................ (679,844) (7,922,848) 19,118 (332,842)
Redemptions............................ (1,033,325) (1,027,921) (98,431) (105,073)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... (120) 62 (5) -
-------------- ------------- ----------- -----------
Net equity transactions............ (1,269,189) (4,880,264) 38,481 (29,572)
-------------- ------------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 1,204,456 (3,579,160) 23,023 37,489
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD............................... 9,715,041 13,294,201 1,138,651 1,101,162
-------------- ------------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 10,919,497 9,715,041 1,161,674 1,138,651
============== ============= =========== ===========
</TABLE>
<TABLE>
<CAPTION>
StIntStk2 VEWrldBd
--------------------------- ---------------------------
1999 1998 1999 1998
------------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 5,672 30,032 81,369 17,723
Mortality, expense and administration
charges (note 2)..................... (16,846) (32,452) (25,927) (34,838)
---------- ----------- ---------- ----------
Net investment activity.............. (11,174) (2,420) 55,442 (17,115)
---------- ----------- ---------- ----------
Proceeds from mutual fund shares sold.. 2,852,318 3,587,363 1,765,448 3,158,808
Cost of mutual fund shares sold........ (2,754,634) (3,904,675) (1,901,067) (2,907,439)
---------- ----------- ---------- ----------
Realized gain (loss) on investments.. 97,684 (317,312) (135,619) 251,369
Change in unrealized gain (loss)
on investments....................... 698,798 414,317 (140,532) 32,925
---------- ----------- ---------- ----------
Net gain (loss) on investments....... 796,482 97,005 (276,151) 284,294
---------- ----------- ---------- ----------
Reinvested capital gains............... - - 36,356 -
---------- ----------- ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations......... 785,308 94,585 (184,353) 267,179
---------- ----------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 38,563 728,870 136,369 514,516
Transfers between funds................ 213,338 (2,029,890) (293,384) (16,366)
Redemptions............................ (180,494) (309,814) (331,319) (499,763)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... 91 13 (14) 32
---------- ----------- ---------- ----------
Net equity transactions............ 71,498 (1,610,821) (488,348) (1,581)
---------- ----------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 856,806 (1,516,236) (672,701) 265,598
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD............................... 1,375,282 2,891,518 2,197,517 1,931,919
---------- ----------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 2,232,088 1,375,282 1,524,816 2,197,517
========== =========== ========== ==========
</TABLE>
14
<PAGE> 15
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
VEWrtdEMkt VEWrldHAs
------------------------------ ---------------------------
1999 1998 1999 1998
------------- ------------- ------------- -----------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .................. $ - 11,626 11,193 12,719
Mortality, expense and administration
charges (note 2)..................... (27,585) (17,849) (12,533) (17,337)
------------- ------------ ---------- ----------
Net investment activity.............. (27,585) (6,223) (1,340) (4,618)
------------- ------------ ---------- ----------
Proceeds from mutual fund shares sold.. 23,213,607 2,802,893 10,966,956 4,026,414
Cost of mutual fund shares sold........ (21,979,207) (3,745,736) (10,867,727) (4,792,158)
------------- ------------ ---------- ----------
Realized gain (loss) on investments.. 1,234,400 (942,843) 99,229 (765,744)
Change in unrealized gain (loss)
on investments....................... 331,043 435,520 56,098 52,953
------------- ------------ ---------- ----------
Net gain (loss) on investments....... 1,565,443 (507,323) 155,327 (712,791)
------------- ------------ ---------- ----------
Reinvested capital gains............... - 10,334 - 312,331
------------- ------------ ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations........ 1,537,858 (503,212) 153,987 (405,078)
------------- ------------ ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 69,563 424,278 6,977 107,275
Transfers between funds................ 307,194 (249,999) 259,623 (196,342)
Redemptions............................ (424,926) (143,026) (347,806) (71,688)
Annuity benefits ...................... (444) - - -
Adjustments to maintain reserves....... (3,448) 209 40 (938)
------------ ----------- ---------- ----------
Net equity transactions............ (52,061) 31,462 (81,166) (161,693)
------------ ----------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 1,485,797 (471,750) 72,821 (566,771)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 1,071,134 1,542,884 880,479 1,447,250
------------ ----------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 2,556,931 1,071,134 953,300 880,479
============ =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MSRESec WPIntEq
--------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------ ------------- ----------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .................. 340,255 12,621 48,337 36,266
Mortality, expense and administration
charges (note 2)..................... (71,206) (107,856) (92,799) (109,346)
---------- ------------ ---------- ----------
Net investment activity.............. 269,049 (95,235) (44,462) (73,080)
---------- ------------ ---------- ----------
Proceeds from mutual fund shares sold.. 5,267,954 4,004,520 121,571,814 19,997,179
Cost of mutual fund shares sold........ (6,311,116) (4,232,713) (118,098,969) (20,633,499)
---------- ------------ ---------- ----------
Realized gain (loss) on investments.. (1,043,162) (228,193) 3,472,845 (636,320)
Change in unrealized gain (loss)
on investments....................... 578,992 (858,233) 208,844 1,103,564
---------- ------------ ---------- ----------
Net gain (loss) on investments....... (464,170) (1,086,426) 3,681,689 467,244
---------- ------------ ---------- ----------
Reinvested capital gains............... - 124,195 - -
---------- ------------ ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations........ (195,121) (1,057,466) 3,637,227 394,164
---------- ------------ ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 464,089 2,531,387 255,046 1,577,242
Transfers between funds................ (1,991,821) (1,647,687) (4,300,319) (2,035,796)
Redemptions............................ (975,564) (700,428) (775,556) (634,936)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... (13) (83) 350 60
---------- ------------ ---------- ----------
Net equity transactions............ (2,503,309) 183,189 (4,820,479) (1,093,430)
---------- ------------ ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (2,698,430) (874,277) (1,183,252) (699,266)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 6,560,195 7,434,472 6,610,263 7,309,529
---------- ------------ ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 3,861,765 6,560,195 5,427,011 6,610,263
========== ============ ============== ==========
</TABLE>
(Continued)
15
<PAGE> 16
NATIONWIDE VA SEPARATE ACCOUNT-B
STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
WPPVenCap WPSmCoGr
------------------------------- ----------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .................. $ - - - -
Mortality, expense and administration
charges (note 2)..................... (11,527) (10,924) (125,563) (136,302)
------------ ---------- ---------- ----------
Net investment activity.............. (11,527) (10,924) (125,563) (136,302)
------------ ---------- ---------- ----------
Proceeds from mutual fund shares sold.. 1,006,340 2,171,632 6,841,103 4,207,436
Cost of mutual fund shares sold........ (858,818) (2,299,785) (6,977,394) (3,696,720)
------------ ---------- ---------- ----------
Realized gain (loss) on investments.. 147,522 (128,153) (136,291) 510,716
Change in unrealized gain (loss)
on investments....................... 314,974 98,230 4,724,714 (683,979)
------------ ---------- ---------- ----------
Net gain (loss) on investments....... 462,496 (29,923) 4,588,423 (173,263)
------------ ---------- ---------- ----------
Reinvested capital gains............... - - 348,393 -
------------ ---------- ---------- ----------
Net increase (decrease) in
contract owners' equity
resulting from operations........ 450,969 (40,847) 4,811,253 (309,565)
------------ ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 55,830 201,805 402,863 2,381,399
Transfers between funds................ 246,879 275,542 392,300 1,015,890
Redemptions............................ (135,795) (64,812) (1,598,954) (800,217)
Annuity benefits ...................... - - - -
Adjustments to maintain reserves....... 35 6 297 (45)
------------ ---------- ---------- ----------
Net equity transactions............ 166,949 412,541 (803,494) 2,597,027
------------ ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 617,918 371,694 4,007,759 2,287,462
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD............................... 886,812 515,118 10,973,897 8,686,435
------------ ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 1,504,730 886,812 14,981,656 10,973,897
============ ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 17
- --------------------------------------------------------------------------------
NATIONWIDE VA SEPARATE ACCOUNT-B
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
(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)
(Continued)
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 December 31, 1999, contract owners have invested in all of the
above funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain 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.
18
<PAGE> 19
Some of the underlying mutual funds have been established by
investment advisers which manage publicly traded mutual funds having
similar names and investment objectives. While some of the underlying
mutual funds may be similar to, and may in fact be modeled after,
publicly traded mutual funds, the underlying mutual funds are not
otherwise directly related to any publicly traded mutual fund.
Consequently, the investment performance of publicly traded mutual
funds and any corresponding underlying mutual funds may differ
substantially.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the
closing net asset value per share at December 31, 1999. The cost of
investments sold is determined on the specific identification basis.
Investment transactions are accounted for on the trade date (date the
order to buy or sell is executed) and dividend income is recorded on
the ex-dividend date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account.
Taxes are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities,
if any, at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
(f) Calculation of Annuity Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects
otherwise, in which case the rate may vary from 3.5 percent to 7
percent, as regulated by the laws of the respective states. The
mortality risk is fully borne by the Company and may result in
additional amounts being transferred into the Account by the Company
to cover greater longevity of annuitants than expected. Conversely, if
reserves exceed amounts required, transfers may be made to the
Company.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments 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.
(Continued)
19
<PAGE> 20
NATIONWIDE VA SEPARATE ACCOUNT-B
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31,
1999:
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
-------- ---------- -------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP Balanced:
Tax qualified................................. 82,782 $ 15.354284 $ 1,271,058 8%
Non-tax qualified............................. 189,028 15.354284 2,902,390 8%
American Century VP -
American Century VP Capital Appreciation:
Tax qualified................................. 81,461 13.968271 1,137,869 62%
Non-tax qualified............................. 180,077 13.968271 2,515,364 62%
American Century VP -
American Century VP Income & Growth:
Tax qualified................................. 81,894 12.578672 1,030,118 16%
Non-tax qualified............................. 175,785 12.578672 2,211,142 16%
American Century VP -
American Century VP International:
Tax qualified................................. 308,447 24.650510 7,603,376 62%
Non-tax qualified............................. 669,655 24.650510 16,507,337 62%
American Century VP -
American Century VP Value:
Tax qualified................................. 45,365 12.719374 577,014 (2)%
Non-tax qualified............................. 121,969 12.719374 1,551,369 (2)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified................................. 132,996 23.591580 3,137,586 28%
Non-tax qualified............................. 186,945 23.591580 4,410,328 28%
Dreyfus Stock Index Fund:
Tax qualified................................. 961,845 22.914747 22,040,435 19%
Non-tax qualified............................. 1,695,985 22.914747 38,863,067 19%
Dreyfus VIF - Capital Appreciation Portfolio:
Tax qualified................................. 110,872 14.356471 1,591,731 10%
Non-tax qualified............................. 249,980 14.356471 3,588,831 10%
Dreyfus VIF - Growth and Income Portfolio:
Tax qualified................................. 107,460 14.517630 1,560,065 15%
Non-tax qualified............................. 159,751 14.517630 2,319,206 15%
Fidelity VIP - Equity-Income Portfolio:
Tax qualified................................. 635,675 15.949005 10,138,384 5%
Non-tax qualified............................. 1,462,720 15.949005 23,328,929 5%
Fidelity VIP - Growth Portfolio:
Tax qualified................................. 597,032 25.054513 14,958,346 35%
Non-tax qualified............................. 1,206,843 25.054513 30,236,864 35%
Fidelity VIP - High Income Portfolio:
Tax qualified................................. 817,781 12.783993 10,454,507 7%
Non-tax qualified............................. 1,453,586 12.783993 18,582,633 7%
Fidelity VIP - Overseas Portfolio:
Tax qualified................................. 159,451 18.743279 2,988,635 41%
Non-tax qualified............................. 275,154 18.743279 5,157,288 41%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified................................. 212,828 16.279126 3,464,654 9%
Non-tax qualified............................. 527,408 16.279126 8,585,741 9%
</TABLE>
20
<PAGE> 21
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN*
-------- ---------- -------
<S> <C> <C> <C> <C>
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified................................ 451,477 22.675266 10,237,361 22%
Non-tax qualified............................ 1,056,444 22.675266 23,955,149 22%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified................................ 267,657 13.786395 3,690,025 3%
Non-tax qualified............................ 1,222,441 13.786395 16,853,054 3%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified................................ 4,911 8.822360 43,327 28%
Non-tax qualified............................ 16,937 8.822360 149,424 28%
Nationwide SAT - Capital Appreciation Fund:
Tax qualified................................ 252,002 20.760238 5,231,621 3%
Non-tax qualified............................ 448,548 20.760238 9,311,963 3%
Nationwide SAT - Government Bond Fund:
Tax qualified................................ 440,246 11.329778 4,987,889 (4)%
Non-tax qualified............................ 933,705 11.329778 10,578,670 (4)%
Nationwide SAT - Money Market Fund:
Tax qualified................................ 3,422,604 11.482780 39,301,009 3%
Non-tax qualified............................ 4,992,397 11.482780 57,326,596 3%
Nationwide SAT - Small Cap Value Fund:
Tax qualified................................ 38,232 10.734023 410,383 26%
Non-tax qualified............................ 103,753 10.734023 1,113,687 26%
Nationwide SAT - Small Company Fund:
Tax qualified................................ 186,506 19.856438 3,703,345 42%
Non-tax qualified............................ 395,269 19.856438 7,848,634 42%
Nationwide SAT - Total Return Fund:
Tax qualified................................ 298,326 18.207860 5,431,878 5%
Non-tax qualified............................ 477,503 18.207860 8,694,308 5%
Neuberger & Berman AMT - Growth Portfolio:
Tax qualified................................ 88,327 22.462268 1,984,025 48%
Non-tax qualified............................ 216,935 22.462268 4,872,852 48%
Neuberger & Berman AMT - Guardian Portfolio:
Tax qualified................................ 56,195 10.503255 590,230 13%
Non-tax qualified............................ 109,084 10.503255 1,145,737 13%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio:
Tax qualified................................ 163,757 11.049212 1,809,386 0%
Non-tax qualified............................ 337,696 11.049212 3,731,275 0%
Neuberger & Berman AMT - Partners Portfolio:
Tax qualified................................ 232,129 17.216794 3,996,517 6%
Non-tax qualified............................ 524,280 17.216794 9,026,421 6%
Oppenheimer VAF - Bond Fund:
Tax qualified................................ 186,021 11.316334 2,105,076 (3)%
Non-tax qualified............................ 564,545 11.316334 6,388,580 (3)%
Oppenheimer VAF - Global Securities Fund:
Tax qualified................................ 159,473 23.791512 3,794,104 56%
Non-tax qualified............................ 295,526 23.791512 7,031,010 56%
</TABLE>
(Continued)
21
<PAGE> 22
NATIONWIDE VA SEPARATE ACCOUNT-B
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN*
-------- ---------- -------
<S> <C> <C> <C> <C>
Oppenheimer VAF - Growth Fund:
Tax qualified................................ 234,519 17.777418 4,169,142 40%
Non-tax qualified............................ 334,271 17.777418 5,942,475 40%
Oppenheimer VAF - Multiple Strategies Fund:
Tax qualified................................ 79,147 14.888567 1,178,385 10%
Non-tax qualified............................ 274,831 14.888567 4,091,840 10%
Strong Opportunity Fund II, Inc.:
Tax qualified................................ 134,958 20.820776 2,809,930 33%
Non-tax qualified............................ 389,494 20.820776 8,109,567 33%
Strong VIF - Strong Discovery Fund II:
Tax qualified................................ 29,325 11.900815 348,991 4%
Non-tax qualified............................ 68,288 11.900815 812,683 4%
Strong VIF -
Strong International Stock Fund II:
Tax qualified................................ 39,778 15.437256 614,063 84%
Non-tax qualified............................ 104,813 15.437256 1,618,025 84%
Van Eck WIT - Worldwide Bond Fund:
Tax qualified................................ 50,966 10.378690 528,960 (9)%
Non-tax qualified............................ 95,952 10.378690 995,856 (9)%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified................................ 62,813 11.248273 706,538 97%
Non-tax qualified............................ 163,791 11.248273 1,842,366 97%
Van Eck WIT - Worldwide Hard Assets Fund:
Tax qualified................................ 36,070 7.964538 287,281 19%
Non-tax qualified............................ 83,623 7.964538 666,019 19%
Van Kampen LIT-
Morgan Stanley Real Estate Securities Portfolio:
Tax qualified................................ 77,061 13.529402 1,042,589 (5)%
Non-tax qualified............................ 208,374 13.529402 2,819,176 (5)%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified................................ 105,810 15.803207 1,672,137 51%
Non-tax qualified............................ 237,602 15.803207 3,754,874 51%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax qualified................................ 20,260 19.199834 388,989 61%
Non-tax qualified............................ 58,112 19.199834 1,115,741 61%
Warburg Pincus Trust -
Small Company Growth Portfolio:
Tax qualified................................ 179,183 20.420490 3,659,005 67%
Non-tax qualified............................ 554,475 20.420490 11,322,651 67%
======== =========
Reserve for annuity contracts in payout phase:
Tax qualified ............................... 68,791
Non-tax qualified ........................... 48,622
-----------
$ 558,672,499
===========
</TABLE>
* The annual return does not include contract charges satisfied by
surrendering units.
- --------------------------------------------------------------------------------
22
<PAGE> 23
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
----------------------------
The Board of Directors of Nationwide Life and Annuity Insurance Company and
Contract Owners of Nationwide VA Separate Account-B:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide VA Separate Account-B (comprised of the
sub-accounts listed in note 1(b)) (collectively, "the Account") as of December
31, 1999, and the related statements of operations and changes in contract
owners' equity for each of the years in the two year period then ended. These
financial statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Account as of December
31, 1999, and the results of its operations and its changes in contract owners'
equity for each of the years in the two year period then ended in conformity
with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
- --------------------------------------------------------------------------------
23
<PAGE> 24
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
-----------------
Bulk Rate
U.S. Postage
P A I D
Columbus, Ohio
Permit No. 521
-----------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
