<PAGE> 1
[NATIONWIDE LOGO]
Nationwide(R)
VA Separate Account-C
ANNUAL REPORT
TO
CONTRACT OWNERS
DECEMBER 31, 1999
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
<PAGE> 2
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PRESIDENT'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-C.
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
- --------------------------------------------------------------------------------
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
5,152,374 shares (cost $113,466,068) .......................................................... $ 132,467,528
Fidelity VIP - Overseas Portfolio (FidVIPOv)
1,029,183 shares (cost $19,655,355) ........................................................... 28,240,776
Nationwide SAT - Money Market Fund (NSATMyMkt)
19,480,767 shares (cost $19,480,767) .......................................................... 19,480,767
Nationwide SAT - Total Return Fund (NSATTotRe)
4,919,238 shares (cost $77,754,208) ........................................................... 92,530,876
One Group - Balanced Portfolio (OGBal)
11,694,160 shares (cost $168,266,068) ......................................................... 183,364,423
One Group - Bond Portfolio (OGBond)
523,399 shares (cost $5,326,512) .............................................................. 5,223,524
One Group - Diversified Equity Portfolio (OGDivEq)
381,899 shares (cost $6,919,995) .............................................................. 6,709,966
One Group - Diversified Mid Cap Portfolio (OGDivMidCap)
172,120 shares (cost $2,581,569) .............................................................. 2,612,786
One Group - Equity Index Portfolio (OGEqIx)
4,177,620 shares (cost $47,981,692) ........................................................... 54,058,407
One Group - Government Bond Portfolio (OGGvtBd)
6,343,001 shares (cost $66,112,826) ........................................................... 63,176,294
One Group - Large Cap Growth Portfolio (OGLgCapGr)
12,407,714 shares (cost $240,567,341) ......................................................... 329,548,871
One Group - Mid Cap Growth Portfolio (OGMidCapGr)
6,799,591 shares (cost $106,869,791) .......................................................... 139,731,600
One Group - Mid Cap Value Portfolio (OGMidCapV)
387,900 shares (cost $3,854,489) .............................................................. 4,030,277
---------------
Total investments .......................................................................... 1,061,176,095
Accounts receivable ................................................................................. 261,947
---------------
Total assets ............................................................................... 1,061,438,042
ACCOUNTS PAYABLE ....................................................................................... 24,234
---------------
CONTRACT OWNERS' EQUITY ................................................................................ $ 1,061,413,808
===============
</TABLE>
(Continued)
3
<PAGE> 4
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
-------- --------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Equity-Income Portfolio:
Tax qualified 1,964,127 $ 22.280043 $ 43,760,834 5%
Non-tax qualified 3,981,435 22.280043 88,706,543 5%
Fidelity VIP - Overseas Portfolio:
Tax qualified 379,475 19.911517 7,555,923 41%
Non-tax qualified 1,038,871 19.911517 20,685,498 41%
Nationwide SAT - Money Market Fund:
Tax qualified 632,925 12.249399 7,752,951 3%
Non-tax qualified 957,505 12.249399 11,728,861 3%
Nationwide SAT - Total Return Fund:
Tax qualified 1,294,160 23.518255 30,436,385 6%
Non-tax qualified 2,639,891 23.518255 62,085,630 6%
One Group - Balanced Fund:
Tax qualified 2,679,742 19.675211 52,724,489 7%
Non-tax qualified 6,639,433 19.675211 130,632,245 7%
One Group - Bond Portfolio:
Tax qualified 154,762 10.028902 1,552,093 0%(a)
Non-tax qualified 372,959 10.028902 3,740,369 0%(a)
One Group - Diversified Equity Portfolio:
Tax qualified 170,001 10.572360 1,797,312 6%(a)
Non-tax qualified 464,908 10.572360 4,915,175 6%(a)
One Group - Diversified Mid Cap Portfolio:
Tax qualified 66,580 10.890908 725,117 9%(a)
Non-tax qualified 190,256 10.890908 2,072,061 9%(a)
One Group - Equity Index Fund:
Tax qualified 1,079,436 13.095858 14,136,141 20%
Non-tax qualified 3,048,481 13.095858 39,922,474 20%
One Group - Government Bond Fund:
Tax qualified 1,479,536 12.856498 19,021,652 (3)%
Non-tax qualified 3,433,968 12.856498 44,148,803 (3)%
One Group - Large Cap Growth Fund:
Tax qualified 3,016,430 32.691561 98,611,805 28%
Non-tax qualified 7,063,890 32.691561 230,929,591 28%
One Group - Mid Cap Growth Fund:
Tax qualified 1,409,374 29.321738 41,325,295 24%
Non-tax qualified 3,356,134 29.321738 98,407,682 24%
One Group - Mid Cap Value Portfolio:
Tax qualified 104,139 10.156152 1,057,652 2%(a)
Non-tax qualified 293,539 10.156152 2,981,227 2%(a)
========== ============ --------------
$1,061,413,808
==============
</TABLE>
(a) Non-annualized. The return was computed for the period 9/1/99 (effective
date) through 12/31/99.
(b) The annual return does not include contract charges satisfied by
surrendering units.
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
4
<PAGE> 5
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
- -----------------------------
STATEMENTS OF OPERATIONS
- -----------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
TOTAL FidVIPEI
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 10,994,488 6,907,178 1,797,880 1,240,121
Mortality, expense and administration
charges (note 2)..................... (10,968,129) (6,556,701) (1,723,396) (1,374,929)
-------------- -------------- -------------- --------------
Net investment activity.............. 26,359 350,477 74,484 (134,808)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 43,884,438 19,122,996 5,669,408 1,736,107
Cost of mutual fund shares sold........ (31,670,495) (16,568,897) (3,858,747) (1,159,168)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 12,213,943 2,554,099 1,810,661 576,939
Change in unrealized gain (loss) on investments 57,565,857 77,317,019 (81,380) 4,686,743
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 69,779,800 79,871,118 1,729,281 5,263,682
-------------- -------------- -------------- --------------
Reinvested capital gains............... 58,350,947 28,599,549 3,974,261 4,413,373
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 128,157,016 108,821,144 5,778,026 9,542,247
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 325,941,152 222,935,462 21,301,189 30,085,527
Transfers between funds................ - - (5,090,540) (996,269)
Redemptions............................ (73,109,289) (25,865,354) (8,727,106) (5,624,154)
Annuity benefits....................... (412) - (77) -
Contingent deferred sales charges (note 2) (1,499,781) (753,231) (222,077) (149,745)
Adjustments to maintain reserves....... (76,910) 1,451 (7,606) (7,404)
-------------- -------------- -------------- --------------
Net equity transactions............ 251,254,760 196,318,328 7,253,783 23,307,955
-------------- -------------- -------------- --------------
Net change in contract owners' equity.... 379,411,866 305,139,472 13,031,809 32,850,202
Contract owners' equity beginning of period 682,001,942 376,862,470 119,435,568 86,585,366
-------------- -------------- -------------- --------------
Contract owners' equity end of period.... $1,061,413,808 682,001,942 132,467,377 119,435,568
============== ============== ============== ==============
</TABLE>
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
- -----------------------------
STATEMENTS OF OPERATIONS
- -----------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FidVIPOv NSATMyMkt
------------------------------- ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 293,246 294,761 592,839 480,416
Mortality, expense and administration
charges (note 2)..................... (283,910) (228,517) (162,870) (122,603)
------------- -------------- -------------- --------------
Net investment activity.............. 9,336 66,244 429,969 357,813
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 2,063,573 1,146,502 5,737,805 8,738,658
Cost of mutual fund shares sold........ (1,555,752) (950,918) (5,737,805) (8,738,658)
------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 507,821 195,584 - -
Change in unrealized gain (loss) on investments 7,135,457 503,877 - -
------------- -------------- -------------- --------------
Net gain (loss) on investments....... 7,643,278 699,461 - -
------------- -------------- -------------- --------------
Reinvested capital gains............... 472,977 868,768 - -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 8,125,591 1,634,473 429,969 357,813
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 3,115,936 3,919,692 4,405,895 6,090,757
Transfers between funds................ (526,998) (647,967) 6,813,845 (5,087,475)
Redemptions............................ (1,441,989) (950,606) (1,853,162) (416,008)
Annuity benefits....................... - - - -
Contingent deferred sales charges (note 2) (45,800) (34,219) (46,359) (14,645)
Adjustments to maintain reserves....... 643 71 1,045 294
------------- -------------- -------------- --------------
Net equity transactions............ 1,101,792 2,286,971 9,321,264 572,923
------------- -------------- -------------- --------------
Net change in contract owners' equity.... 9,227,383 3,921,444 9,751,233 930,736
Contract owners' equity beginning of period 19,014,038 15,092,594 9,730,579 8,799,843
------------- -------------- -------------- --------------
Contract owners' equity end of period.... 28,241,421 19,014,038 19,481,812 9,730,579
============= ============== ============== ==============
</TABLE>
(Continued)
5
<PAGE> 6
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- -----------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- -----------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NSATTotRe OGBaL
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .................. $ 573,632 714,940 3,735,676 1,900,182
Mortality, expense and administration
charges (note 2)..................... (1,159,865) (878,488) (1,884,516) (900,997)
-------------- -------------- -------------- --------------
Net investment activity.............. (586,233) (163,548) 1,851,160 999,185
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 2,583,392 1,676,825 2,790,872 267,312
Cost of mutual fund shares sold........ (1,568,334) (1,050,209) (1,890,324) (195,743)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 1,015,058 626,616 900,548 71,569
Change in unrealized gain (loss) on investments 724,945 6,183,757 3,744,156 9,178,113
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 1,740,003 6,810,373 4,644,704 9,249,682
-------------- -------------- -------------- --------------
Reinvested capital gains............... 3,434,465 3,111,349 3,323,855 1,265,780
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 4,588,235 9,758,174 9,819,719 11,514,647
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 15,713,024 20,869,076 80,424,824 52,234,693
Transfers between funds................ (2,485,105) 86,250 134,373 1,921,949
Redemptions............................ (5,125,298) (3,156,765) (9,809,835) (3,341,994)
Annuity benefits....................... (87) - (80) -
Contingent deferred sales charges (note 2) (130,968) (89,208) (240,180) (92,789)
Adjustments to maintain reserves....... (8,858) (98) (24,183) (900)
-------------- -------------- -------------- --------------
Net equity transactions............ 7,962,708 17,709,255 70,484,919 50,720,959
-------------- -------------- -------------- --------------
Net change in contract owners' equity.... 12,550,943 27,467,429 80,304,638 62,235,606
Contract owners' equity beginning of period 79,971,072 52,503,643 103,052,096 40,816,490
-------------- -------------- -------------- --------------
Contract owners' equity end of period.... $ 92,522,015 79,971,072 183,356,734 103,052,096
============== ============== ============== ==============
</TABLE>
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- -----------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- -----------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
OGBond OGDivEq
----------------------------- -------------------------------
1999 1998 1999 1998
-------------- ------------- --------------- --------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends .................. 78,134 - 7,058 -
Mortality, expense and administration
charges (note 2)..................... (10,324) - (12,728) -
------------- -------------- -------------- --------------
Net investment activity.............. 67,810 - (5,670) -
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. - - - -
Cost of mutual fund shares sold........ - - - -
------------- -------------- -------------- --------------
Realized gain (loss) on investments.. - - - -
Change in unrealized gain (loss) on investments (102,988) - (210,028) -
------------- -------------- -------------- --------------
Net gain (loss) on investments....... (102,988) - (210,028) -
------------- -------------- -------------- --------------
Reinvested capital gains............... - - 549,596 -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. (35,178) - 333,898 -
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 5,339,445 - 6,387,974 -
Transfers between funds................ 533 - 1,494 -
Redemptions............................ (14,819) - (13,200) -
Annuity benefits....................... - - - -
Contingent deferred sales charges (note 2) (47) - (198) -
Adjustments to maintain reserves....... 2,528 - 2,519 -
------------- -------------- -------------- --------------
Net equity transactions............ 5,327,640 - 6,378,589 -
------------- -------------- -------------- --------------
Net change in contract owners' equity.... 5,292,462 - 6,712,487 -
Contract owners' equity beginning of period - - - -
------------- -------------- -------------- --------------
Contract owners' equity end of period.... 5,292,462 - 6,712,487 -
============= ============== ============== ==============
</TABLE>
6
<PAGE> 7
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ----------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
OGDivMidCap OGEqIx
----------------------------- -----------------------------
1999 1998 1999 1998
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 3,773 - 527,516 69,595
Mortality, expense and administration
charges (note 2)..................... (5,145) - (384,999) (39,561)
-------------- -------------- -------------- --------------
Net investment activity.............. (1,372) - 142,517 30,034
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 20,942 - 3,116,712 534,659
Cost of mutual fund shares sold........ (21,188) - (2,606,913) (564,922)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. (246) - 509,799 (30,263)
Change in unrealized gain (loss) on investments 31,217 - 4,820,047 1,256,668
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 30,971 - 5,329,846 1,226,405
-------------- -------------- -------------- --------------
Reinvested capital gains............... 174,370 - 647,824 -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 203,969 - 6,120,187 1,256,439
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,588,143 - 36,015,097 12,077,730
Transfers between funds................ 1,194 - 2,402,047 398,461
Redemptions............................ (6,028) - (4,086,915) (28,766)
Annuity benefits....................... - - - -
Contingent deferred sales charges (note 2) (122) - (54,097) (1,300)
Adjustments to maintain reserves....... 10,022 - (40,333) 65
-------------- -------------- -------------- --------------
Net equity transactions............ 2,593,209 - 34,235,799 12,446,190
-------------- -------------- -------------- --------------
Net change in contract owners' equity.... 2,797,178 - 40,355,986 13,702,629
Contract owners' equity beginning of period - - 13,702,629 -
-------------- -------------- -------------- --------------
Contract owners' equity end of period.... $ 2,797,178 - 54,058,615 13,702,629
============== ============== ============== ==============
</TABLE>
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ----------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
OGGvtBd OGLgCapGr
----------------------------- -----------------------------
1999 1998 1999 1998
-------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 2,974,373 1,741,737 400,827 465,426
Mortality, expense and administration
charges (note 2)..................... (655,256) (314,513) (3,311,041) (1,826,256)
------------- -------------- -------------- --------------
Net investment activity.............. 2,319,117 1,427,224 (2,910,214) (1,360,830)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 8,667,456 2,245,378 11,675,973 1,085,409
Cost of mutual fund shares sold........ (8,636,682) (2,196,128) (4,939,283) (593,257)
------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 30,774 49,250 6,736,690 492,152
Change in unrealized gain (loss) on investments (3,690,058) 201,662 33,665,907 37,313,992
------------- -------------- -------------- --------------
Net gain (loss) on investments....... (3,659,284) 250,912 40,402,597 37,806,144
------------- -------------- -------------- --------------
Reinvested capital gains............... 2,360 105,068 29,768,620 13,400,166
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. (1,337,807) 1,783,204 67,261,003 49,845,480
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 35,090,477 17,834,339 84,344,126 57,599,562
Transfers between funds................ (2,340,963) 1,944,922 1,401,455 2,551,650
Redemptions............................ (10,387,808) (1,686,406) (25,175,190) (7,429,886)
Annuity benefits....................... (61) - (107) -
Contingent deferred sales charges (note 2) (87,123) (31,392) (474,350) (234,135)
Adjustments to maintain reserves....... (5,840) 8,956 (7,374) (949)
------------- -------------- -------------- --------------
Net equity transactions............ 22,268,682 18,070,419 60,088,560 52,486,242
------------- -------------- -------------- --------------
Net change in contract owners' equity.... 20,930,875 19,853,623 127,349,563 102,331,722
Contract owners' equity beginning of period 42,239,580 22,385,957 202,191,833 99,860,111
------------- -------------- -------------- --------------
Contract owners' equity end of period.... 63,170,455 42,239,580 329,541,396 202,191,833
============= ============== ============== ==============
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VA SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ----------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
OGMidCapGr OGMidCapV
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 9,534 -
Mortality, expense and administration
charges (note 2)..................... (1,366,426) (870,837) (7,653) -
-------------- -------------- -------------- --------------
Net investment activity.............. (1,366,426) (870,837) 1,881 -
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 1,545,306 1,692,146 12,999 -
Cost of mutual fund shares sold........ (842,130) (1,119,894) (13,337) -
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 703,176 572,252 (338) -
Change in unrealized gain (loss) on investments 11,352,793 17,992,207 175,789 -
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 12,055,969 18,564,459 175,451 -
-------------- -------------- -------------- --------------
Reinvested capital gains............... 16,002,619 5,435,045 - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 26,692,162 23,128,667 177,332 -
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 27,336,129 22,224,086 3,878,893 -
Transfers between funds................ (313,270) (171,521) 1,935 -
Redemptions............................ (6,448,351) (3,230,769) (19,588) -
Annuity benefits....................... - - - -
Contingent deferred sales charges (note 2) (198,328) (105,798) (132) -
Adjustments to maintain reserves....... 88 1,416 439 -
-------------- -------------- -------------- --------------
Net equity transactions............ 20,376,268 18,717,414 3,861,547 -
-------------- -------------- -------------- --------------
Net change in contract owners' equity.... 47,068,430 41,846,081 4,038,879 -
Contract owners' equity beginning of period 92,664,547 50,818,466 - -
-------------- -------------- -------------- --------------
Contract owners' equity end of period.... $ 139,732,977 92,664,547 4,038,879 -
============== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
NATIONWIDE VA SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
Nationwide VA Separate Account-C (the Account) was established pursuant
to a resolution of the Board of Directors of Nationwide Life and
Annuity Insurance Company (the Company) on July 24, 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 banks and other financial
institutions.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees, are offered for purchase.
See note 2 for a discussion of contract expenses.
With certain exceptions, contract owners in either the accumulation or
the payout phase may invest in any of the following funds:
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated
investment advisor);
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Total Return Fund (NSATTotRe)
Funds of The One Group(R)Investment Trust (One Group);
One Group - Balanced Portfolio (OGBal) (formerly One Group -
Asset Allocation Fund)
One Group - Bond Portfolio (OGBond)
One Group - Diversified Equity Portfolio (OGDivEq)
One Group - Diversified Mid Cap Portfolio (OGDivMidCap)
One Group - Equity Index Portfolio (OGEqIx)
(formerly One Group - Equity Index Fund)
One Group - Government Bond Portfolio (OGGvtBd)
(formerly One Group - Government Bond Fund)
One Group - Large Cap Growth Portfolio (OGLgCapGr)
(formerly One Group - Large Company Growth Fund))
One Group - Mid Cap Growth Portfolio (OGMidCapGr)
(formerly One Group - Growth Opportunities Fund)
One Group - Mid Cap Value Portfolio (OGMidCapV)
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.
(Continued)
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NATIONWIDE VA SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS, Continued
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 a specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company, which is taxed as a life insurance company
under the provisions of the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(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 received
from the contract owners. However, if any part of the contract value of
such contracts is surrendered, the Company will, with certain exceptions,
deduct from a contract owner's contract value a contingent deferred sales
charge not to exceed 7% of the lesser of purchase payments or the amount
surrendered, such charge declining 1% per year, to 0%, after the purchase
payment has been held in the contract for 84 months. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company.
The Company deducts 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 0.05%, respectively. No charges
are deducted from the initial funding by the Depositor, or from earnings
thereon.
(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.
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Independent Auditors' Report
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The Board of Directors of Nationwide Life and Annuity Insurance Company and
Contract Owners of Nationwide VA Separate Account-C:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide VA Separate Account-C (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
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NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
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Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
