<PAGE> 1
[LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT-6
ANNUAL REPORT
TO
CONTRACT OWNERS
DECEMBER 31, 1997
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-3232-C (12/97)
<PAGE> 2
[LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the
1997 annual report of the Nationwide Variable Account-6.
Equity markets ended a volatile season to record the third straight
year of gains topping the 20 percent mark. Additionally, returns on
fixed income investments were buoyed by declining inflation, steady
Federal Reserve policy and the positive outlook for lower budget
deficits.
The U.S. economy continues to be strong into 1998. However, there is
still much uncertainty about what effect the Southeast Asian crisis
will have on our economy during this year. The obvious result, we
believe, will be a slowing of economic growth due to reduced
exports, restrained pricing flexibility and lower corporate profits.
We expect the Federal Reserve will continue to stay on the sidelines
as the Southeast Asian economic turmoil plays out. At the same time,
low inflation and low interest rates should continue to provide a
healthy environment for financial assets.
We are committed to our customers as our most valuable asset. Our
commitment to you is to continue to add value to our products and
services to help you achieve your financial planning and retirement
goals. As always, we welcome and encourage your feedback.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
2
<PAGE> 3
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1997
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at market value:
Evergreen - VA Aggressive Growth Fund (EvAggrGro)
168,405 shares (cost $1,773,493) ....................................... $ 1,869,292
Evergreen - VA Foundation Fund (EvFound)
2,099,936 shares (cost $23,743,431) .................................... 28,433,133
Evergreen - VA Fund (EvFund)
1,163,773 shares (cost $13,931,246) .................................... 17,328,583
Evergreen - VA Global Leaders Fund (EvGloLead)
268,669 shares (cost $2,850,721) ....................................... 2,898,942
Evergreen - VA Growth and Income Fund (EvGrInc)
1,752,595 shares (cost $21,455,578) .................................... 26,797,181
Evergreen - VA Strategic Income Fund (EvStratInc)
216,179 shares (cost $2,195,389) ....................................... 2,205,031
Fidelity VIP - High Income Portfolio (FidVIPHI)
151,877 shares (cost $1,836,692) ....................................... 2,062,492
Fidelity VIP - Overseas Portfolio (FidVIPOv)
138,718 shares (cost $2,556,492) ....................................... 2,663,389
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
104,866 shares (cost $1,658,109) ....................................... 1,888,644
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
59,861 shares (cost $1,086,795) ........................................ 1,193,636
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
78,394 shares (cost $1,309,941) ........................................ 1,510,646
Nationwide SAT - Government Bond Fund (NSATGvtBd)
25,536 shares (cost $284,920) .......................................... 290,598
Nationwide SAT - Money Market Fund (NSATMyMkt)
1,713,302 shares (cost $1,713,302) ..................................... 1,713,302
------------
Total investments ................................................... 90,854,869
Accounts receivable .......................................................... -
------------
Total assets ........................................................ 90,854,869
ACCOUNTS PAYABLE ................................................................ 59,147
------------
CONTRACT OWNERS' EQUITY ......................................................... $ 90,795,722
============
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN
--------- ------------ ------
Contracts in accumulation phase:
<S> <C> <C> <C> <C>
Evergreen - VA Aggressive Growth Fund:
Tax qualified .................................. 32,233 $ 10.970866 $ 353,624 10%(a)
Non-tax qualified .............................. 36,965 10.970866 405,538 10%(a)
Initial Funding by Depositor (note 1a) ......... 100,000 11.100000 1,110,000 11%(a)
Evergreen - VA Foundation Fund:
Tax qualified .................................. 513,556 14.357474 7,373,367 26%
Non-tax qualified .............................. 1,362,798 14.357474 19,566,337 26%
Initial Funding by Depositor (note 1a) ......... 100,000 14.733127 1,473,313 28%
Evergreen - VA Fund:
Tax qualified .................................. 253,280 15.352653 3,888,520 35%
Non-tax qualified .............................. 772,073 15.352653 11,853,369 35%
Initial Funding by Depositor (note 1a) ......... 100,000 15.754272 1,575,427 37%
Evergreen - VA Global Leaders Fund:
Tax qualified .................................. 61,612 10.753040 662,516 8%(a)
Non-tax qualified .............................. 106,774 10.753040 1,148,145 8%(a)
Initial Funding by Depositor (note 1a) ......... 100,000 10.879585 1,087,959 9%(a)
Evergreen - VA Growth and Income Fund:
Tax qualified .................................. 406,022 15.614450 6,339,810 33%
Non-tax qualified .............................. 1,206,385 15.614450 18,837,038 33%
Initial Funding by Depositor (note 1a) ......... 100,000 16.022979 1,602,298 35%
Evergreen - VA Strategic Income Fund:
Tax qualified .................................. 30,744 10.405791 319,916 4%(a)
Non-tax qualified .............................. 79,968 10.405791 832,130 4%(a)
Initial Funding by Depositor (note 1a) ......... 100,000 10.528287 1,052,829 5%(a)
Fidelity VIP - High Income Portfolio:
Tax qualified .................................. 31,204 12.549013 391,579 16%
Non-tax qualified .............................. 133,009 12.549013 1,669,132 16%
Fidelity VIP - Overseas Portfolio:
Tax qualified .................................. 32,632 11.984120 391,066 10%
Non-tax qualified .............................. 189,428 11.984120 2,270,128 10%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified .................................. 35,177 13.208527 464,636 19%
Non-tax qualified .............................. 107,673 13.208527 1,422,202 19%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified .................................. 10,250 11.841787 121,378 18%(a)
Non-tax qualified .............................. 90,497 11.841787 1,071,646 18%(a)
Fidelity VIP-III - Growth Opportunities Portfolio:
Tax qualified .................................. 14,976 12.196412 182,653 22%(a)
Non-tax qualified .............................. 108,817 12.196412 1,327,177 22%(a)
Nationwide SAT - Government Bond Fund:
Tax qualified .................................. 7,513 11.157782 83,828 8%
Non-tax qualified .............................. 18,506 11.157782 206,486 8%
Nationwide SAT - Money Market Fund:
Tax qualified .................................. 64,006 10.691554 684,324 4%
Non-tax qualified .............................. 96,090 10.691554 1,027,351 4%
======= ========= -----------
$90,795,722
===========
</TABLE>
(a) This investment option was not being utilized for the entire period.
See accompanying notes to financial statements.
4
<PAGE> 5
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEAR ENDED DECEMBER 31, 1997 AND FOR THE PERIOD FEBRUARY 28, 1996
(COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 1996
<TABLE>
<CAPTION>
TOTAL EVAGGRGRO
------------------------------ ------------------------------
1997 1996 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................ $ 921,552 314,578 - -
Mortality, expense and administration
charges (note 2) .................................. (718,940) (230,324) (2,625) -
-------------- -------------- -------------- --------------
Net investment activity ........................... 202,612 84,254 (2,625) -
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ............... 5,439,115 3,463,306 146,318 -
Cost of mutual fund shares sold ..................... (5,092,331) (3,318,706) (130,185) -
-------------- -------------- -------------- --------------
Realized gain (loss) on investments ............... 346,784 144,600 16,133 -
Change in unrealized gain (loss) on investments ..... 10,826,924 3,631,834 95,799 -
-------------- -------------- -------------- --------------
Net gain (loss) on investments .................... 11,173,708 3,776,434 111,932 -
-------------- -------------- -------------- --------------
Reinvested capital gains ............................ 2,934,325 99,762 - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations .............. 14,310,645 3,960,450 109,307 -
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................... 40,652,403 34,210,736 1,713,176 -
Transfers between funds ............................. - - 49,795 -
Redemptions ......................................... (1,288,100) (939,197) (2,987) -
Annuity benefits .................................... - - - -
Annual contract maintenance charge (note 2) ......... - - - -
Contingent deferred sales charges (note 2) .......... (22,638) (10,938) - -
Adjustments to maintain reserves .................... (59,518) (18,121) (129) -
-------------- -------------- -------------- --------------
Net equity transactions ......................... 39,282,147 33,242,480 1,759,855 -
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............... 53,592,792 37,202,930 1,869,162 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ......... 37,202,930 - - -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............... $ 90,795,722 37,202,930 1,869,162 -
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
EVFOUND EVFUND
------------------------------ ------------------------------
1997 1996 1997 1996
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................ 432,577 198,005 52,250 30,422
Mortality, expense and administration
charges (note 2) .................................. (240,775) (91,479) (134,972) (44,791)
------------- -------------- -------------- --------------
Net investment activity ........................... 191,802 106,526 (82,722) (14,369)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ............... 454,441 628,605 386,577 777,720
Cost of mutual fund shares sold ..................... (345,923) (579,851) (280,189) (728,366)
------------- -------------- -------------- --------------
Realized gain (loss) on investments ............... 108,518 48,754 106,388 49,354
Change in unrealized gain (loss) on investments ..... 3,160,540 1,529,162 2,689,609 707,727
------------- -------------- -------------- --------------
Net gain (loss) on investments .................... 3,269,058 1,577,916 2,795,997 757,081
------------- -------------- -------------- --------------
Reinvested capital gains ............................ 1,140,621 69,241 707,913 17,746
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations .............. 4,601,481 1,753,683 3,421,188 760,458
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................... 9,758,419 13,006,150 6,120,181 6,422,691
Transfers between funds ............................. 435,226 (351,281) 677,468 190,759
Redemptions ......................................... (349,437) (405,849) (170,640) (85,839)
Annuity benefits .................................... - - - -
Annual contract maintenance charge (note 2) ......... - - - -
Contingent deferred sales charges (note 2) .......... (5,566) (2,207) (3,401) (592)
Adjustments to maintain reserves .................... (20,320) (7,282) (11,406) (3,551)
------------- -------------- -------------- --------------
Net equity transactions ......................... 9,818,322 12,239,531 6,612,202 6,523,468
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............... 14,419,803 13,993,214 10,033,390 7,283,926
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ......... 13,993,214 - 7,283,926 -
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............... 28,413,017 13,993,214 17,317,316 7,283,926
============= ============== ============== ==============
</TABLE>
(Continued)
5
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEAR ENDED DECEMBER 31, 1997 AND FOR THE PERIOD FEBRUARY 28, 1996
(COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 1996
<TABLE>
<CAPTION>
EVGLOLEAD EVGRINC
------------------------------ ------------------------------
1997 1996 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ 13,693 - 107,784 50,189
Mortality, expense and administration
charges (note 2) ................................... (6,316) - (215,211) (63,514)
-------------- -------------- -------------- --------------
Net investment activity ............................ 7,377 - (107,427) (13,325)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ................ 94,457 - 260,180 474,448
Cost of mutual fund shares sold ...................... (83,425) - (200,097) (438,017)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments ................ 11,032 - 60,083 36,431
Change in unrealized gain (loss) on investments ...... 48,221 - 4,175,082 1,166,522
-------------- -------------- -------------- --------------
Net gain (loss) on investments ..................... 59,253 - 4,235,165 1,202,953
-------------- -------------- -------------- --------------
Reinvested capital gains ............................. 6,846 - 851,646 12,775
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 73,476 - 4,979,384 1,202,403
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 2,688,641 - 10,489,601 9,962,121
Transfers between funds .............................. 142,364 - 774,340 (54,657)
Redemptions .......................................... (5,540) - (301,923) (239,597)
Annuity benefits ..................................... - - - -
Annual contract maintenance charge (note 2) .......... - - - -
Contingent deferred sales charges (note 2) ........... - - (6,093) (3,203)
Adjustments to maintain reserves ..................... (321) - (18,127) (5,103)
-------------- -------------- -------------- --------------
Net equity transactions .......................... 2,825,144 - 10,937,798 9,659,561
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ................ 2,898,620 - 15,917,182 10,861,964
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .......... - - 10,861,964 -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD ................ $ 2,898,620 - 26,779,146 10,861,964
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
EVSTRATINC FIDVIPHI
----------------------------- ------------------------------
1997 1996 1997 1996
------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. 58,403 - 81,089 -
Mortality, expense and administration
charges (note 2) ................................... (3,818) - (21,420) (6,030)
------------- -------------- -------------- --------------
Net investment activity ............................ 54,585 - 59,669 (6,030)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ................ 27,364 - 135,073 61,931
Cost of mutual fund shares sold ...................... (26,954) - (123,630) (57,308)
------------- -------------- -------------- --------------
Realized gain (loss) on investments ................ 410 - 11,443 4,623
Change in unrealized gain (loss) on investments ...... 9,641 - 169,861 55,938
------------- -------------- -------------- --------------
Net gain (loss) on investments ..................... 10,051 - 181,304 60,561
------------- -------------- -------------- --------------
Reinvested capital gains ............................. 3,203 - 10,022 -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 67,839 - 250,995 54,531
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 2,031,686 - 793,624 939,039
Transfers between funds .............................. 110,007 - (67,359) 197,028
Redemptions .......................................... (4,481) - (37,261) (65,842)
Annuity benefits ..................................... - - - -
Annual contract maintenance charge (note 2) .......... - - - -
Contingent deferred sales charges (note 2) ........... - - (1,077) (712)
Adjustments to maintain reserves ..................... (176) - (1,783) (472)
------------- -------------- -------------- --------------
Net equity transactions .......................... 2,137,036 - 686,144 1,069,041
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ................ 2,204,875 - 937,139 1,123,572
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .......... - - 1,123,572 -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD ................ 2,204,875 - 2,060,711 1,123,572
=============== ============== =============== ==============
</TABLE>
6
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEAR ENDED DECEMBER 31, 1997 AND FOR THE PERIOD FEBRUARY 28, 1996
(COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 1996
<TABLE>
<CAPTION>
FIDVIPOV FIDVIPAM
------------------------------ ------------------------------
1997 1996 1997 1996
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................ $ 25,789 - 44,528 -
Mortality, expense and administration
charges (note 2) .................................. (28,305) (8,447) (21,642) (7,687)
-------------- -------------- -------------- --------------
Net investment activity ........................... (2,516) (8,447) 22,886 (7,687)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ............... 134,986 98,476 183,404 12,235
Cost of mutual fund shares sold ..................... (125,100) (93,486) (168,748) (11,509)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments ............... 9,886 4,990 14,656 726
Change in unrealized gain (loss) on investments ..... 32,191 74,706 135,695 94,841
-------------- -------------- -------------- --------------
Net gain (loss) on investments .................... 42,077 79,696 150,351 95,567
-------------- -------------- -------------- --------------
Reinvested capital gains ............................ 102,376 - 111,698 -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations .............. 141,937 71,249 284,935 87,880
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................... 1,095,522 1,073,351 457,162 1,146,468
Transfers between funds ............................. 154,310 195,914 (24,319) (63)
Redemptions ......................................... (55,512) (10,858) (47,012) (13,696)
Annuity benefits .................................... - - - -
Annual contract maintenance charge (note 2) ......... - - - -
Contingent deferred sales charges (note 2) .......... (1,667) (223) (1,956) (209)
Adjustments to maintain reserves .................... (2,173) (656) (1,822) (530)
-------------- -------------- -------------- --------------
Net equity transactions ......................... 1,190,480 1,257,528 382,053 1,131,970
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............... 1,332,417 1,328,777 666,988 1,219,850
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ......... 1,328,777 - 1,219,850 -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............... $ 2,661,194 1,328,777 1,886,838 1,219,850
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
FIDVIPCON FIDVIPGROP
------------------------------ ------------------------------
1997 1996 1997 1996
------------- -------------- -------------- --------------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................ - - - -
Mortality, expense and administration
charges (note 2) .................................. (7,563) - (9,859) -
------------- -------------- -------------- --------------
Net investment activity ........................... (7,563) - (9,859) -
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ............... 43,360 - 8,378 -
Cost of mutual fund shares sold ..................... (41,279) - (7,246) -
------------- -------------- -------------- --------------
Realized gain (loss) on investments ............... 2,081 - 1,132 -
Change in unrealized gain (loss) on investments ..... 106,841 - 200,704 -
------------- -------------- -------------- --------------
Net gain (loss) on investments .................... 108,922 - 201,836 -
------------- -------------- -------------- --------------
Reinvested capital gains ............................ - - - -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations .............. 101,359 - 191,977 -
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................... 833,310 - 1,126,943 -
Transfers between funds ............................. 278,193 - 202,051 -
Redemptions ......................................... (19,227) - (10,326) -
Annuity benefits .................................... - - - -
Annual contract maintenance charge (note 2) ......... - - - -
Contingent deferred sales charges (note 2) .......... - - - -
Adjustments to maintain reserves .................... (611) - (815) -
------------- -------------- -------------- --------------
Net equity transactions ......................... 1,091,665 - 1,317,853 -
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............... 1,193,024 - 1,509,830 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ......... - - - -
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............... 1,193,024 - 1,509,830 -
============= ============== ============== ==============
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEAR ENDED DECEMBER 31, 1997 AND FOR THE PERIOD FEBRUARY 28, 1996
(COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 1996
<TABLE>
<CAPTION>
NSATGVTBD NSATMYMKT
------------------------------ ------------------------------
1997 1996 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ 14,524 11,321 90,915 24,641
Mortality, expense and administration
charges (note 2) ................................... (3,173) (1,860) (23,261) (6,516)
-------------- -------------- -------------- --------------
Net investment activity ............................ 11,351 9,461 67,654 18,125
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ................ 167,781 51,891 3,396,796 1,358,000
Cost of mutual fund shares sold ...................... (162,759) (52,169) (3,396,796) (1,358,000)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments ................ 5,022 (278) - -
Change in unrealized gain (loss) on investments ...... 2,740 2,938 - -
-------------- -------------- -------------- --------------
Net gain (loss) on investments ..................... 7,762 2,660 - -
-------------- -------------- -------------- --------------
Reinvested capital gains ............................. - - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 19,113 12,121 67,654 18,125
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 151,591 254,941 3,392,547 1,405,975
Transfers between funds .............................. (1,011) - (2,731,065) (177,700)
Redemptions .......................................... (95,353) (50,556) (188,401) (66,960)
Annuity benefits ..................................... - - - -
Annual contract maintenance charge (note 2) .......... - - - -
Contingent deferred sales charges (note 2) ........... (176) - (2,702) (3,792)
Adjustments to maintain reserves ..................... (264) (92) (1,571) (435)
-------------- ------------- ------------- -------------
Net equity transactions .......................... 54,787 204,293 468,808 1,157,088
-------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ................ 73,900 216,414 536,462 1,175,213
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .......... 216,414 - 1,175,213 -
-------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ................ $ 290,314 216,414 1,711,675 1,175,213
============== ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT-6
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
Nationwide Variable Account-6 (the Account) was established pursuant to
a resolution of the Board of Directors of Nationwide Life Insurance
Company (the Company) on February 2, 1994. The Account has been
registered as a unit investment trust under the Investment Company Act
of 1940.
On February 28, 1996, the Company (Depositor) transferred to the
Account, 100,000 shares of the Evergreen - VA Foundation Fund, 100,000
shares of the Evergreen - VA Fund and 100,000 shares of the Evergreen -
VA Growth and Income Fund, for which the Account was credited with
100,000 units of each of the foregoing Evergreen Funds. These amounts
represent the initial funding of the Account. The value of the units
purchased by the Company on February 28, 1996 was $3,000,000.
On March 3, 1997, the Company (Depositor) transferred to the Account,
100,000 shares of the Evergreen - VA Aggressive Growth Fund, 100,000
shares of the Evergreen - VA Global Leaders Fund and 100,000 shares of
the Evergreen - VA Strategic Income Fund, for which the Account was
credited with 100,000 units of each of the foregoing Evergreen Funds.
The value of the units purchased by the Company on March 3, 1997 was
$3,000,000.
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:
Funds of the Evergreen Variable Trust (Evergreen);
Evergreen - VA Aggressive Growth Fund (EvAggrGro)
Evergreen - VA Foundation Fund (EvFound)
Evergreen - VA Fund (EvFund)
Evergreen - VA Global Leaders Fund (EvGloLead)
Evergreen - VA Growth and Income Fund (EvGrInc)
Evergreen - VA Strategic Income Fund (EvStratInc)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
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)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
At December 31, 1997, 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.
9
<PAGE> 10
(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, 1997. 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) Reclassifications
Certain 1996 amounts have been reclassified to conform with the current
period presentation.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of
such contracts is surrendered, the Company will, with certain exceptions,
deduct from a contract owner's contract value a contingent deferred sales
charge not to exceed 7% of the lesser of purchase payments or the amount
surrendered, such charge declining 1% per year, to 0%, after the purchase
payment has been held in the contract for 84 months. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company.
The following 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 0.15%, 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.
10
<PAGE> 11
Independent Auditors' Report
TheBoard of Directors of Nationwide Life Insurance Company and Contract Owners
of Nationwide Variable Account-6:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide Variable Account-6 as of December 31,
1997, and the related statements of operations and changes in contract owners'
equity for the year then ended and the period February 28, 1996 (commencement of
operations) through December 31, 1996. These financial statements are the
responsibility of the Company'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, 1997, 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 Nationwide Variable
Account-6 as of December 31, 1997, and the results of its operations and its
changes in contract owners' equity for the year then ended and the period
February 28, 1996 (commencement of operations) through December 31, 1996, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
February 6, 1998
11
<PAGE> 12
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
