<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT-6
ANNUAL REPORT
TO
CONTRACT OWNERS
DECEMBER 31, 1998
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO - 3232 - E (12/98)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215 - 2220
[PRESIDENTS PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the
1998 annual report of the Nationwide Variable Account-6.
Equity markets again defied the odds in 1998 to tally a fourth straight
year of double-digit gains, as measured by the major indices. This
surprise came following the breathtaking correction during the third
quarter that gave us a broad double-digit retreat. Fixed income
investments also provided respectable returns in 1998, supported by the
continued low inflationary environment and favorable Federal Reserve
actions.
The performance of the American economy continues strong into 1999.
However, we believe the persisting slump in Asia and recent
difficulties in Latin America will inevitably take their toll and
dampen growth in the United States. This moderation, we think, will be
healthy for our economy and get us back to a more sustainable growth
level. We look for interest rates to continue within the range of the
recent past, and we expect inflation to remain subdued. Moreover, we
remain optimistic about long-term prospects for U.S. business activity;
holders of financial assets should continue to profit from the
anticipated favorable investment climate.
We are pleased you have chosen our Company to provide the investment
products and services to help you meet your retirement savings and
financial planning goals.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
February 16, 1999
3
<PAGE> 3
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1998
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at market value:
Evergreen - VA Aggressive Growth Fund (EvAggrGro)
297,616 shares (cost $3,279,057) ...................................... $ 4,038,647
Evergreen - VA Foundation Fund (EvFound)
4,779,242 shares (cost $62,546,690) ................................... 69,203,424
Evergreen - VA Fund (EvFund)
2,477,831 shares (cost $35,531,944) ................................... 37,935,587
Evergreen - VA Global Leaders Fund (EvGloLead)
750,959 shares (cost $8,596,500) ...................................... 9,582,231
Evergreen - VA Growth and Income Fund (EvGrInc)
3,573,059 shares (cost $51,423,943) ................................... 55,668,265
Evergreen - VA International Growth Fund (EvIntGr)
151,668 shares (cost $1,454,675) ...................................... 1,424,161
Evergreen - VA Small Cap Equity Income Fund (EvSmCapEI)
238,173 shares (cost $2,280,644) ...................................... 2,281,693
Evergreen - VA Strategic Income Fund (EvStratInc)
1,076,294 shares (cost $11,303,862) ................................... 11,182,696
Fidelity VIP - High Income Portfolio (FidVIPHI)
181,197 shares (cost $2,260,830) ...................................... 2,089,197
Fidelity VIP - Overseas Portfolio (FidVIPOv)
145,241 shares (cost $2,704,463) ...................................... 2,912,087
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
118,800 shares (cost $1,902,227) ...................................... 2,157,416
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
85,968 shares (cost $1,725,140) ....................................... 2,101,061
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
139,913 shares (cost $2,566,577) ...................................... 3,201,213
Nationwide SAT - Government Bond Fund (NSATGvtBd)
117,370 shares (cost $1,364,533) ...................................... 1,372,054
Nationwide SAT - Money Market Fund (NSATMyMkt)
5,321,979 shares (cost $5,321,979) .................................... 5,321,979
------------
Total assets ....................................................... 210,471,711
ACCOUNTS PAYABLE ............................................................... 2,822
------------
CONTRACT OWNERS' EQUITY ........................................................ $210,468,889
============
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
-------- ---------- ---------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
Evergreen - VA Aggressive Growth Fund:
Tax qualified ................................. 68,030 $ 13.224364 $ 899,653 21 %
Non-tax qualified ............................. 134,748 13.224364 1,781,957 21 %
Initial Funding by Depositor (note 1a) ........ 100,000 13.570000 1,357,000 22 %
Evergreen - VA Foundation Fund:
Tax qualified ................................. 1,231,590 15.661734 19,288,835 9 %
Non-tax qualified ............................. 3,082,969 15.661734 48,284,640 9 %
Initial Funding by Depositor (note 1a) ........ 100,000 16.299610 1,629,961 11 %
Evergreen - VA Fund:
Tax qualified ................................. 611,181 16.112386 9,847,584 5 %
Non-tax qualified ............................. 1,639,136 16.112386 26,410,392 5 %
Initial Funding by Depositor (note 1a) ........ 100,000 16.768642 1,676,864 6 %
Evergreen - VA Global Leaders Fund:
Tax qualified ................................. 187,738 12.608870 2,367,164 17 %
Non-tax qualified ............................. 469,605 12.608870 5,921,188 17 %
Initial Funding by Depositor (note 1a) ........ 100,000 12.938210 1,293,821 19 %
Evergreen - VA Growth and Income Fund:
Tax qualified ................................. 893,262 16.130864 14,409,088 3 %
Non-tax qualified ............................. 2,453,682 16.130864 39,580,011 3 %
Initial Funding by Depositor (note 1a) ........ 100,000 16.787932 1,678,793 5 %
Evergreen - VA International Growth Fund:
Tax qualified ................................. 15,381 9.340809 143,671 (7)%(a)
Non-tax qualified ............................. 36,559 9.340809 341,491 (7)%(a)
Initial Funding by Depositor (note 1a) ........ 100,000 9.390000 939,000 (6)%(a)
Evergreen - VA Small Cap Equity Income:
Tax qualified ................................. 30,706 9.623143 295,488 (4)%(a)
Non-tax qualified ............................. 105,451 9.623143 1,014,770 (4)%(a)
Initial Funding by Depositor (note 1a) ........ 100,000 9.714315 971,432 (3)%(a)
Evergreen - VA Strategic Income Fund:
Tax qualified ................................. 294,309 10.866478 3,198,102 4 %
Non-tax qualified ............................. 632,171 10.866478 6,869,472 4 %
Initial Funding by Depositor (note 1a) ........ 100,000 11.150478 1,115,048 6 %
Fidelity VIP - High Income Portfolio:
Tax qualified ................................. 36,899 11.837723 436,800 (6)%
Non-tax qualified ............................. 139,559 11.837723 1,652,061 (6)%
Fidelity VIP - Overseas Portfolio:
Tax qualified ................................. 34,092 13.323057 454,210 11 %
Non-tax qualified ............................. 184,444 13.323057 2,457,358 11 %
</TABLE>
(Continued)
5
<PAGE> 5
<TABLE>
ANNUAL
UNITS UNIT VALUE RETURN(b)
-------- ---------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified ................................. 35,587 14.983855 533,230 13 %
Non-tax qualified ............................. 108,376 14.983855 1,623,890 13 %
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified ................................. 17,867 15.176535 271,159 28 %
Non-tax qualified ............................. 120,560 15.176535 1,829,683 28 %
Fidelity VIP-III - Growth Opportunities Portfolio:
Tax qualified ................................. 38,197 14.985852 572,415 23 %
Non-tax qualified ............................. 175,401 14.985852 2,628,533 23 %
Nationwide SAT - Government Bond Fund:
Tax qualified ................................. 9,045 11.981662 108,374 7 %
Non-tax qualified ............................. 105,464 11.981662 1,263,634 7 %
Nationwide SAT - Money Market Fund:
Tax qualified ................................. 189,512 11.097664 2,103,140 4 %
Non-tax qualified ............................. 290,059 11.097664 3,218,977 4 %
========= ======== --------------
$ 210,468,889
=============
</TABLE>
(a) This investment option was not being utilized for the entire period.
Accordingly, the annual return was computed for such period as the
investment option was utilized.
(b) The annual return does not include contract charges satisfied by
surrendering units.
See accompanying notes to financial statements.
6
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
TOTAL EvAggrGro
------------------------------- ------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 2,674,845 921,552 -- --
Mortality, expense and administration
charges (note 2) ............................ (2,047,220) (718,940) (23,680) (2,625)
------------- ------------- ------------- -------------
Net investment activity ..................... 627,625 202,612 (23,680) (2,625)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ......... 18,362,960 5,439,115 661,548 146,318
Cost of mutual fund shares sold ............... (15,304,263) (5,092,331) (637,865) (130,185)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ......... 3,058,697 346,784 23,683 16,133
Change in unrealized gain (loss) on investments 1,749,886 10,826,924 663,791 95,799
------------- ------------- ------------- -------------
Net gain (loss) on investments .............. 4,808,583 11,173,708 687,474 111,932
------------- ------------- ------------- -------------
Reinvested capital gains ...................... 3,792,356 2,934,325 -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 9,228,564 14,310,645 663,794 109,307
------------- ------------- ------------- -------------
Equity transactions:
Purchase payments received from
contract owners ............................. 120,644,969 40,652,403 1,604,948 1,713,176
Transfers between funds ....................... -- -- (22,143) 49,795
Redemptions ................................... (9,976,873) (1,288,100) (76,952) (2,987)
Contingent deferred sales charges (note 2) .... (221,448) (22,638) (169) --
Adjustments to maintain reserves .............. (2,045) (59,518) (30) (129)
------------- ------------- ------------- -------------
Net equity transactions ................... 110,444,603 39,282,147 1,505,654 1,759,855
------------- ------------- ------------- -------------
Net change in contract owners' equity ......... 119,673,167 53,592,792 2,169,448 1,869,162
Contract owners' equity beginning of period ... 90,795,722 37,202,930 1,869,162 --
------------- ------------- ------------- -------------
Contract owners' equity end of period ......... $ 210,468,889 90,795,722 4,038,610 1,869,162
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
EvFound EvFund
-------------------------------- -------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 1,205,584 432,577 -- 52,250
Mortality, expense and administration
charges (note 2) ............................ (683,822) (240,775) (374,658) (134,972)
------------- ------------- ------------- -------------
Net investment activity ..................... 521,762 191,802 (374,658) (82,722)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ......... 2,201,565 454,441 3,741,560 386,577
Cost of mutual fund shares sold ............... (1,554,017) (345,923) (2,464,952) (280,189)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ......... 647,548 108,518 1,276,608 106,388
Change in unrealized gain (loss) on investments 1,967,032 3,160,540 (993,694) 2,689,609
------------- ------------- ------------- -------------
Net gain (loss) on investments .............. 2,614,580 3,269,058 282,914 2,795,997
------------- ------------- ------------- -------------
Reinvested capital gains ...................... 1,011,705 1,140,621 1,170,913 707,913
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,148,047 4,601,481 1,079,169 3,421,188
------------- ------------- ------------- -------------
Equity transactions:
Purchase payments received from
contract owners ............................. 40,873,811 9,758,419 21,624,968 6,120,181
Transfers between funds ....................... (345,390) 435,226 (264,570) 677,468
Redemptions ................................... (3,807,693) (349,437) (1,784,878) (170,640)
Contingent deferred sales charges (note 2) .... (78,359) (5,566) (36,780) (3,401)
Adjustments to maintain reserves .............. 3 (20,320) (385) (11,406)
------------- ------------- ------------- -------------
Net equity transactions ................... 36,642,372 9,818,322 19,538,355 6,612,202
------------- ------------- ------------- -------------
Net change in contract owners' equity ......... 40,790,419 14,419,803 20,617,524 10,033,390
Contract owners' equity beginning of period ... 28,413,017 13,993,214 17,317,316 7,283,926
------------- ------------- ------------- -------------
Contract owners' equity end of period ......... 69,203,436 28,413,017 37,934,840 17,317,316
============= ============= ============= =============
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
EvGloLead EvGrinc
--------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 53,046 13,693 445,613 107,784
Mortality, expense and administration
charges (note 2) ............................ (70,467) (6,316) (589,626) (215,211)
----------- ----------- ----------- -----------
Net investment activity ..................... (17,421) 7,377 (144,013) (107,427)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 333,363 94,457 2,532,809 260,180
Cost of mutual fund shares sold ............... (320,068) (83,425) (1,711,193) (200,097)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 13,295 11,032 821,616 60,083
Change in unrealized gain (loss) on investments 937,511 48,221 (1,097,281) 4,175,082
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 950,806 59,253 (275,665) 4,235,165
----------- ----------- ----------- -----------
Reinvested capital gains ...................... -- 6,846 1,025,093 851,646
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 933,385 73,476 605,415 4,979,384
----------- ----------- ----------- -----------
Equity transactions:
Purchase payments received from
contract owners ............................. 5,846,998 2,688,641 31,886,459 10,489,601
Transfers between funds ....................... 106,880 142,364 (880,523) 774,340
Redemptions ................................... (202,140) (5,540) (2,663,166) (301,923)
Contingent deferred sales charges (note 2) .... (1,289) -- (59,682) (6,093)
Adjustments to maintain reserves .............. (281) (321) 243 (18,127)
----------- ----------- ----------- -----------
Net equity transactions ................... 5,750,168 2,825,144 28,283,331 10,937,798
----------- ----------- ----------- -----------
Net change in contract owners' equity ......... 6,683,553 2,898,620 28,888,746 15,917,182
Contract owners' equity beginning of period ... 2,898,620 -- 26,779,146 10,861,964
----------- ----------- ----------- -----------
Contract owners' equity end of period ......... $ 9,582,173 2,898,620 55,667,892 26,779,146
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
EvIntGr EvSmCapEI
-------------------------- ----------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... -- -- 26,284 --
Mortality, expense and administration
charges (note 2) ............................ (1,172) -- (6,043) --
----------- ----------- ----------- -----------
Net investment activity ..................... (1,172) -- 20,241 --
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 25,398 -- 61,160 --
Cost of mutual fund shares sold ............... (28,372) -- (66,317) --
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... (2,974) -- (5,157) --
Change in unrealized gain (loss) on investments (30,514) -- 1,048 --
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. (33,488) -- (4,109) --
----------- ----------- ----------- -----------
Reinvested capital gains ...................... -- -- 2,958 --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (34,660) -- 19,090 --
----------- ----------- ----------- -----------
Equity transactions:
Purchase payments received from
contract owners ............................. 1,349,323 -- 2,256,250 --
Transfers between funds ....................... 109,498 -- 9,853 --
Redemptions ................................... -- -- (3,501) --
Contingent deferred sales charges (note 2) .... -- -- -- --
Adjustments to maintain reserves .............. 1 -- (2) --
----------- ----------- ----------- -----------
Net equity transactions ................... 1,458,822 -- 2,262,600 --
----------- ----------- ----------- -----------
Net change in contract owners' equity ......... 1,424,162 -- 2,281,690 --
Contract owners' equity beginning of period ... -- -- -- --
----------- ----------- ----------- -----------
Contract owners' equity end of period ......... 1,424,162 -- 2,281,690 --
=========== =========== =========== ===========
</TABLE>
8
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
EvStratInc FidVIPHI
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 421,087 58,403 166,235 81,089
Mortality, expense and administration
charges (note 2) ............................ (81,408) (3,818) (31,839) (21,420)
------------ ------------ ------------ ------------
Net investment activity ..................... 339,679 54,585 134,396 59,669
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 1,064,321 27,364 637,651 135,073
Cost of mutual fund shares sold ............... (1,035,887) (26,954) (608,365) (123,630)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 28,434 410 29,286 11,443
Change in unrealized gain (loss) on investments (130,808) 9,641 (397,432) 169,861
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. (102,374) 10,051 (368,146) 181,304
------------ ------------ ------------ ------------
Reinvested capital gains ...................... -- 3,203 105,628 10,022
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 237,305 67,839 (128,122) 250,995
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 8,368,709 2,031,686 560,932 793,624
Transfers between funds ....................... 625,598 110,007 (309,711) (67,359)
Redemptions ................................... (250,007) (4,481) (93,106) (37,261)
Contingent deferred sales charges (note 2) .... (3,783) -- (1,478) (1,077)
Adjustments to maintain reserves .............. (75) (176) (365) (1,783)
------------ ------------ ------------ ------------
Net equity transactions ................... 8,740,442 2,137,036 156,272 686,144
------------ ------------ ------------ ------------
Net change in contract owners' equity ......... 8,977,747 2,204,875 28,150 937,139
Contract owners' equity beginning of period ... 2,204,875 -- 2,060,711 1,123,572
------------ ------------ ------------ ------------
Contract owners' equity end of period ......... 11,182,622 2,204,875 2,088,861 2,060,711
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVIPOv FidVIPAM
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 51,626 25,789 60,892 44,528
Mortality, expense and administration
charges (note 2) ............................ (40,291) (28,305) (28,570) (21,642)
------------ ------------ ------------ ------------
Net investment activity ..................... 11,335 (2,516) 32,322 22,886
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 298,379 134,986 180,711 183,404
Cost of mutual fund shares sold ............... (271,550) (125,100) (165,427) (168,748)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 26,829 9,886 15,284 14,656
Change in unrealized gain (loss) on investments 100,727 32,191 24,653 135,695
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 127,556 42,077 39,937 150,351
------------ ------------ ------------ ------------
Reinvested capital gains ...................... 152,162 102,376 182,677 111,698
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 291,053 141,937 254,936 284,935
------------ ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 146,809 1,095,522 157,578 457,162
Transfers between funds ....................... (96,968) 154,310 (49,668) (24,319)
Redemptions ................................... (88,116) (55,512) (91,144) (47,012)
Contingent deferred sales charges (note 2) .... (1,809) (1,667) (1,133) (1,956)
Adjustments to maintain reserves .............. (595) (2,173) (287) (1,822)
------------ ------------ ------------ ------------
Net equity transactions ................... (40,679) 1,190,480 15,346 382,053
------------ ------------ ------------ ------------
Net change in contract owners' equity ......... 250,374 1,332,417 270,282 666,988
Contract owners' equity beginning of period ... 2,661,194 1,328,777 1,886,838 1,219,850
------------ ------------ ------------ ------------
Contract owners' equity end of period ......... 2,911,568 2,661,194 2,157,120 1,886,838
============ ============ ============ ============
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
Fid VIPCon FidVIPGrOp
---------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 9,259 -- 19,139 --
Mortality, expense and administration
charges (note 2) ............................ (23,433) (7,563) (33,857) (9,859)
----------- ----------- ----------- -----------
Net investment activity ..................... (14,174) (7,563) (14,718) (9,859)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 486,379 43,360 264,446 8,378
Cost of mutual fund shares sold ............... (386,936) (41,279) (195,987) (7,246)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 99,443 2,081 68,459 1,132
Change in unrealized gain (loss) on investments 269,080 106,841 433,931 200,704
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 368,523 108,922 502,390 201,836
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 68,120 -- 66,530 --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 422,469 101,359 554,202 191,977
----------- ----------- ----------- -----------
Equity transactions:
Purchase payments received from
contract owners ............................. 337,230 833,310 861,311 1,126,943
Transfers between funds ....................... 179,052 278,193 389,976 202,051
Redemptions ................................... (30,229) (19,227) (109,496) (10,326)
Contingent deferred sales charges (note 2) .... (490) -- (4,526) --
Adjustments to maintain reserves .............. (214) (611) (349) (815)
----------- ----------- ----------- -----------
Net equity transactions ................... 485,349 1,091,665 1,136,916 1,317,853
----------- ----------- ----------- -----------
Net change in contract owners' equity ......... 907,818 1,193,024 1,691,118 1,509,830
Contract owners' equity beginning of period ... 1,193,024 -- 1,509,830 --
----------- ----------- ----------- -----------
Contract owners' equity end of period ......... $ 2,100,842 1,193,024 3,200,948 1,509,830
=========== =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
NSATGvtBd NSATMyMkt
---------------------------- ----------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 43,647 14,524 172,433 90,915
Mortality, expense and administration
charges (note 2) ............................ (10,720) (3,173) (47,634) (23,261)
----------- ----------- ----------- -----------
Net investment activity ..................... 32,927 11,351 124,799 67,654
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 315,041 167,781 5,558,629 3,396,796
Cost of mutual fund shares sold ............... (298,698) (162,759) (5,558,629) (3,396,796)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 16,343 5,022 -- --
Change in unrealized gain (loss) on investments 1,842 2,740 -- --
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 18,185 7,762 -- --
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 6,570 -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 57,682 19,113 124,799 67,654
----------- ----------- ----------- -----------
Equity transactions:
Purchase payments received from
contract owners ............................. 67,906 151,591 4,701,737 3,392,547
Transfers between funds ....................... 995,059 (1,011) (446,943) (2,731,065)
Redemptions ................................... (37,892) (95,353) (738,553) (188,401)
Contingent deferred sales charges (note 2) .... (1,011) (176) (30,939) (2,702)
Adjustments to maintain reserves .............. (50) (264) 341 (1,571)
----------- ----------- ----------- -----------
Net equity transactions ................... 1,024,012 54,787 3,485,643 468,808
----------- ----------- ----------- -----------
Net change in contract owners' equity ......... 1,081,694 73,900 3,610,442 536,462
Contract owners' equity beginning of period ... 290,314 216,414 1,711,675 1,175,213
----------- ----------- ----------- -----------
Contract owners' equity end of period ......... 1,372,008 290,314 5,322,117 1,711,675
=========== =========== =========== ============
</TABLE>
See accompanying notes to financial statements
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NATIONWIDE VARIABLE ACCOUNT-6
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
(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.
On May 1, 1998, the Company (Depositor) transferred to the Account,
100,000 shares of the Evergreen - VA Small Cap Equity Income Fund, for
which the Account was credited with 100,000 units of the foregoing
Evergreen Fund. The value of the units purchased by the Company on May
1, 1998 was $1,000,000.
On August 17, 1998, the Company (Depositor) transferred to the Account,
100,000 shares of the Evergreen - International Growth Fund, for which
the Account was credited with 100,000 units of the foregoing Evergreen
Fund. The value of the units purchased by the Company on August 17,
1998 was $1,000,000.
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 International Growth Fund (EvIntGr)
Evergreen - VA Small Cap Equity Income Fund (EvSmCapEI)
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)
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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, 1998, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain contract expenses (see note 2). The accompanying financial
statements include only contract owners' purchase payments pertaining
to the variable portions of their contracts and exclude any purchase
payments for fixed dollar benefits, the latter being included in the
accounts of the Company.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are available as investment options in variable life insurance policies
or variable annuity contracts issued by life insurance companies or, in
some cases, through participation in certain qualified pension or
retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(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, 1998. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of
such contracts is surrendered, the Company will, with certain exceptions,
deduct from a contract owner's contract value a contingent deferred sales
charge not to exceed 7% of the lesser of purchase payments or the amount
surrendered, such charge declining 1% per year, to 0%, after the purchase
payment has been held in the contract for 84 months. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company.
The following 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.
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(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
The Board 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,
1998, 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 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, 1998, 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, 1998, 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 5, 1999
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NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
