<PAGE> 1
'99
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Nationwide(R) Variable Account - 8
December 31, 1999
[The BEST of AMERICA(R) LOGO]
ANNUAL REPORT
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[NATIONWIDE(R) LOGO]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
APO-4739 (12/99)
<PAGE> 2
[NATIONWIDE LIFE INSURANCE COMPANY LOGO]
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PICTURE]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the 1999 annual
report of the Nationwide Variable Account-8.
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
<PAGE> 3
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NATIONWIDE VARIABLE ACCOUNT-8
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Income & Growth (ACVPIncGr)
22,653 shares (cost $177,212) ..................................................................... $ 181,226
American Century VP - American Century VP International (ACVPInt)
22,667 shares (cost $256,031) ..................................................................... 283,342
American Century VP - American Century VP Value (ACVPValue)
5,591 shares (cost $32,911) ....................................................................... 33,269
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
19,182 shares (cost $746,125) ..................................................................... 749,451
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
9,264 shares (cost $367,896) ...................................................................... 369,345
Federated Insurance Series - Quality Bond Fund II (FedQualBd)
4,097 shares (cost $40,260) ....................................................................... 40,146
Fidelity VIP - Equity-Income Portfolio: Service Class (FidVIPEIS)
16,462 shares (cost $415,887) ..................................................................... 422,403
Fidelity VIP - Growth Portfolio: Service Class (FidVIPGrS)
38,335 shares (cost $1,993,910) ................................................................... 2,100,783
Fidelity VIP - High Income Portfolio: Service Class (FidVIPHIS)
8,549 shares (cost $95,594) ....................................................................... 96,430
Fidelity VIP - Overseas Portfolio: Service Class (FidVIPOvS)
8,693 shares (cost $219,777) ...................................................................... 238,016
Fidelity VIP-II - Contrafund Portfolio: Service Class (FidVIPConS)
40,876 shares (cost $1,139,462) ................................................................... 1,189,479
Fidelity VIP-III - Growth Opportunities Portfolio: Service Class (FidVIPGrOpS)
11,316 shares (cost $256,430) ..................................................................... 261,620
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
15,051 shares (cost $398,668) ..................................................................... 386,969
Nationwide SAT - Equity Income Fund (NSATEqInc)
666 shares (cost $8,787) .......................................................................... 9,005
Nationwide SAT - Global Equity Fund (NSATGlobEq)
1,425 shares (cost $19,636) ....................................................................... 19,799
Nationwide SAT - Government Bond Fund (NSATGvtBd)
8,104 shares (cost $88,721) ....................................................................... 87,441
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
54 shares (cost $518) ............................................................................. 518
Nationwide SAT - Mid Cap Index Fund (NSATMidCap)
19,399 shares (cost $236,191) ..................................................................... 238,997
Nationwide SAT - Money Market Fund (NSATMyMkt)
509,629 shares (cost $509,629) .................................................................... 509,629
Nationwide SAT - Select Advisers Small Cap Fund (NSATSmCapG)
176 shares (cost $3,183) .......................................................................... 3,458
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
7,438 shares (cost $75,634) ....................................................................... 72,294
Nationwide SAT - Small Company Fund (NSATSmCo)
4,015 shares (cost $84,405) ....................................................................... 88,806
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
8,595 shares (cost $166,034) ...................................................................... 175,679
Nationwide SAT - Strategic Value Fund (NSATStrVal)
358 shares (cost $3,279) .......................................................................... 3,365
Nationwide SAT - Total Return Fund (NSATTotRe)
27,595 shares (cost $525,205) ..................................................................... 519,070
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
3,226 shares (cost $50,254) ....................................................................... 51,135
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
2,116 shares (cost $47,900) ....................................................................... 51,415
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
72 shares (cost $1,399) ........................................................................... 1,420
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
3,066 shares (cost $225,657) ...................................................................... 252,339
Oppenheimer VAF - Capital Appreciation Fund (OppCapApp)
12,998 shares (cost $603,330) ..................................................................... 647,830
Oppenheimer VAF - Main Street Growth & Income Fund (OppMSGrInc)
24,583 shares (cost $583,871) ..................................................................... 605,490
Salomon Brothers VSF - Capital Fund (SBVSFCap)
35,152 shares (cost $479,338) ..................................................................... 480,532
Salomon Brothers VSF - High Yield Bond Fund (SBVSFHYBd)
3,641 shares (cost $36,078) ....................................................................... 33,573
Salomon Brothers VSF - Investors Fund (SBVSFInv)
13,400 shares (cost $161,369) ..................................................................... 163,887
Salomon Brothers VSF - Total Return Fund (SBVSFTotRet)
8,892 shares (cost $93,395) ....................................................................... 90,960
(Continued)
</TABLE>
5
<PAGE> 5
NATIONWIDE VARIABLE ACCOUNT-8
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<S> <C>
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
5,584 shares (cost $75,951) ....................................................................... 79,628
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
952 shares (cost $9,997) .......................................................................... 10,435
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
7,790 shares (cost $91,532) ....................................................................... 92,622
----------
Total investments .............................................................................. 10,641,806
Accounts receivable ..................................................................................... 1,517
----------
Total assets ................................................................................... 10,643,323
ACCOUNTS PAYABLE ........................................................................................... -
----------
CONTRACT OWNERS' EQUITY (NOTE 4) ........................................................................... $ 10,643,323
==========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT-8
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
FOR THE PERIOD OCTOBER 1, 1999 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31,
1999
<TABLE>
<CAPTION>
Total ACVPIncGr ACVPInt ACVPValue DrySRGro
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ 11,685 -- -- -- 94
Mortality and expense risk charges (note 2) .... (6,443) (65) (172) (29) (434)
------------ ------------ ------------ ------------ ------------
Net investment activity ...................... 5,242 (65) (172) (29) (340)
------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold .......... 494,875 25 65 28 32,312
Cost of mutual fund shares sold ................ (483,191) (24) (55) (28) (31,417)
------------ ------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 11,684 1 10 -- 895
Change in unrealized gain (loss) on investments 320,351 4,014 27,311 358 3,326
------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ............... 332,035 4,015 27,321 358 4,221
------------ ------------ ------------ ------------ ------------
Reinvested capital gains ....................... 91,914 -- -- -- 25,383
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 429,191 3,950 27,149 329 29,264
------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 10,193,975 146,993 256,193 32,941 782,879
Transfers between funds ........................ -- 30,284 -- -- (62,692)
Redemptions .................................... (6,332) -- -- -- --
Adjustments to maintain reserves ............... 26,489 (4) 9 -- (1)
------------ ------------ ------------ ------------ ------------
Net equity transactions .................... 10,214,132 177,273 256,202 32,941 720,186
------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............ 10,643,323 181,223 283,351 33,270 749,450
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ...... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............ $ 10,643,323 181,223 283,351 33,270 749,450
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
DryCapAp FedQualBd FidVIPEIS
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... 1,215 -- --
Mortality and expense risk charges (note 2) .... (243) (20) (232)
------------ ------------ ------------
Net investment activity 972 (20) (232)
------------ ------------ ------------
Proceeds from mutual fund shares sold .......... 20 11 3,803
Cost of mutual fund shares sold ................ (20) (11) (3,841)
------------ ------------ ------------
Realized gain (loss) on investments .......... -- -- (38)
Change in unrealized gain (loss) on investments 1,450 (113) 6,516
------------ ------------ ------------
Net gain (loss) on investments ............... 1,450 (113) 6,478
------------ ------------ ------------
Reinvested capital gains ....................... 819 -- --
------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 3,241 (133) 6,246
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 367,487 40,279 416,196
Transfers between funds ........................ -- -- --
Redemptions .................................... (1,384) -- (40)
Adjustments to maintain reserves ............... 8 (8) 3
------------ ------------ ------------
Net equity transactions .................... 366,111 40,271 416,159
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............ 369,352 40,138 422,405
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ...... -- -- --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............ 369,352 40,138 422,405
============ ============ ============
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT-8
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
FOR THE PERIOD OCTOBER 1, 1999 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31,
1999
<TABLE>
<CAPTION>
FidVIPGrS FidVIPHIS FidVIPOvS FidVIPConS FidVIPGrOpS
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ -- -- -- -- --
Mortality and expense risk charges (note 2) ... (1,431) (69) (166) (637) (164)
------------ ------------ ------------ ------------ ------------
Net investment activity ..................... (1,431) (69) (166) (637) (164)
------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 149,340 25 3,733 16,856 7
Cost of mutual fund shares sold ............... (152,448) (25) (3,634) (16,520) (7)
------------ ------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... (3,108) -- 99 336 --
Change in unrealized gain (loss) on investments 106,873 836 18,239 50,017 5,189
------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 103,765 836 18,338 50,353 5,189
------------ ------------ ------------ ------------ ------------
Reinvested capital gains ...................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 102,334 767 18,172 49,716 5,025
------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,002,153 95,650 220,014 1,104,388 256,645
Transfers between funds ....................... (8,508) -- -- 36,340 --
Redemptions ................................... (193) (16) -- (1,460) --
Adjustments to maintain reserves .............. 5,005 24 (173) 501 (57)
------------ ------------ ------------ ------------ ------------
Net equity transactions ................... 1,998,457 95,658 219,841 1,139,769 256,588
------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 2,100,791 96,425 238,013 1,189,485 261,613
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 2,100,791 96,425 238,013 1,189,485 261,613
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATCapAp NSATEqInc NSATGlobEq
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 436 5 --
Mortality and expense risk charges (note 2) ... (220) (7) (8)
------------ ------------ ------------
Net investment activity ..................... 216 (2) (8)
------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 14 7 5
Cost of mutual fund shares sold ............... (15) (7) (5)
------------ ------------ ------------
Realized gain (loss) on investments ......... (1) -- --
Change in unrealized gain (loss) on investments (11,699) 219 164
------------ ------------ ------------
Net gain (loss) on investments .............. (11,700) 219 164
------------ ------------ ------------
Reinvested capital gains ...................... 15,135 -- 307
------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,651 217 463
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 384,959 8,788 19,337
Transfers between funds ....................... -- -- --
Redemptions ................................... (1,503) -- --
Adjustments to maintain reserves .............. (128) 9 (2)
------------ ------------ ------------
Net equity transactions ................... 383,328 8,797 19,335
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 386,979 9,014 19,798
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- -- --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 386,979 9,014 19,798
============ ============ ============
</TABLE>
8
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-8
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
FOR THE PERIOD OCTOBER 1, 1999 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31,
1999
<TABLE>
<CAPTION>
NSATGvtBd NSATHIncBd NSATMidCap NSATMyMkt NSATSmCapG
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 796 -- 72 625 --
Mortality and expense risk charges (note 2) ... (46) -- (131) (179) (2)
----------- ----------- ----------- ----------- -----------
Net investment activity ..................... 750 -- (59) 446 (2)
----------- ----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 11 -- 30,460 40,021 2
Cost of mutual fund shares sold ............... (11) -- (31,287) (40,021) (2)
----------- ----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... -- -- (827) -- --
Change in unrealized gain (loss) on investments (1,280) (1) 2,806 -- 274
----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments .............. (1,280) (1) 1,979 -- 274
----------- ----------- ----------- ----------- -----------
Reinvested capital gains ...................... 109 -- 8,256 -- 131
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (421) (1) 10,176 446 403
----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 87,753 518 259,785 307,175 3,055
Transfers between funds ....................... -- -- (30,788) 200,271 --
Redemptions ................................... (42) -- (16) -- --
Adjustments to maintain reserves .............. 147 (4) (177) 1,737 5
----------- ----------- ----------- ----------- -----------
Net equity transactions ................... 87,858 514 228,804 509,183 3,060
----------- ----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 87,437 513 238,980 509,629 3,463
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- -- -- -- --
----------- ----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 87,437 513 238,980 509,629 3,463
=========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
NSATSmCapV NSATSmCo NSATStrGro
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- -- --
Mortality and expense risk charges (note 2) ... (36) (51) (109)
----------- ----------- -----------
Net investment activity ..................... (36) (51) (109)
----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 4 335 74
Cost of mutual fund shares sold ............... (4) (337) (72)
----------- ----------- -----------
Realized gain (loss) on investments ......... -- (2) 2
Change in unrealized gain (loss) on investments (3,340) 4,402 9,645
----------- ----------- -----------
Net gain (loss) on investments .............. (3,340) 4,400 9,647
----------- ----------- -----------
Reinvested capital gains ...................... 8,628 2,417 6,271
----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 5,252 6,766 15,809
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 67,043 63,570 159,870
Transfers between funds ....................... -- -- --
Redemptions ................................... -- -- --
Adjustments to maintain reserves .............. (7) 18,472 3
----------- ----------- -----------
Net equity transactions ................... 67,036 82,042 159,873
----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 72,288 88,808 175,682
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- -- --
----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 72,288 88,808 175,682
=========== =========== ===========
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT-8
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
FOR THE PERIOD OCTOBER 1, 1999 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31,
1999
<TABLE>
<CAPTION>
NSATStrVal NSATTotRe NBAMTGuard NBAMTMCGr NBAMTPart
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ -- 249 -- -- --
Mortality and expense risk charges (note 2) ... -- (295) (38) (19) (1)
------------ ------------ ------------ ------------ ------------
Net investment activity ..................... -- (46) (38) (19) (1)
------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... -- 37,400 25 14 1
Cost of mutual fund shares sold ............... -- (38,884) (25) (13) (1)
------------ ------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... -- (1,484) -- 1 --
Change in unrealized gain (loss) on investments 86 (6,136) 881 3,515 21
------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 86 (7,620) 881 3,516 21
------------ ------------ ------------ ------------ ------------
Reinvested capital gains ...................... -- 11,697 -- -- --
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 86 4,031 843 3,497 20
------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 3,280 515,092 50,316 47,918 1,400
Transfers between funds ....................... -- -- -- -- --
Redemptions ................................... -- (14) (23) -- --
Adjustments to maintain reserves .............. 4 (39) (1) (2) (3)
------------ ------------ ------------ ------------ ------------
Net equity transactions ................... 3,284 515,039 50,292 47,916 1,397
------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 3,370 519,070 51,135 51,413 1,417
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 3,370 519,070 51,135 51,413 1,417
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
OppAggGro OppCapApp OppMSGrInc
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- -- --
Mortality and expense risk charges (note 2) ... (266) (464) (332)
------------ ------------ ------------
Net investment activity ..................... (266) (464) (332)
------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 150,239 6,144 10,051
Cost of mutual fund shares sold ............... (135,055) (5,914) (9,639)
------------ ------------ ------------
Realized gain (loss) on investments ......... 15,184 230 412
Change in unrealized gain (loss) on investments 26,682 44,500 21,619
------------ ------------ ------------
Net gain (loss) on investments .............. 41,866 44,730 22,031
------------ ------------ ------------
Reinvested capital gains ...................... -- -- --
------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 41,600 44,266 21,699
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 375,646 605,022 583,878
Transfers between funds ....................... (164,907) -- --
Redemptions ................................... -- (1,462) (90)
Adjustments to maintain reserves .............. 2 3,779 (2,247)
------------ ------------ ------------
Net equity transactions ................... 210,741 607,339 581,541
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 252,341 651,605 603,240
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- -- --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 252,341 651,605 603,240
============ ============ ============
</TABLE>
10
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-8
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
FOR THE PERIOD OCTOBER 1, 1999 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31,
1999
<TABLE>
<CAPTION>
SBVSFCap SBVSFHYBd SBVSFInv SBVSFTotRet VEWrldEMkt
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 2,159 2,942 815 2,143 --
Mortality and expense risk charges (note 2) ... (324) (23) (117) (54) (21)
------------ ------------ ------------ ------------ ------------
Net investment activity ..................... 1,835 2,919 698 2,089 (21)
------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 3,314 18 10,205 70 204
Cost of mutual fund shares sold ............... (3,252) (18) (10,310) (71) (187)
------------ ------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 62 -- (105) (1) 17
Change in unrealized gain (loss) on investments 1,194 (2,505) 2,518 (2,434) 3,676
------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 1,256 (2,505) 2,413 (2,435) 3,693
------------ ------------ ------------ ------------ ------------
Reinvested capital gains ...................... 12,520 -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 15,611 414 3,111 (346) 3,672
------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 465,275 33,159 160,831 91,323 75,972
Transfers between funds ....................... -- -- -- -- --
Redemptions ................................... (23) -- (34) (16) (16)
Adjustments to maintain reserves .............. (331) -- (28) (5) (4)
------------ ------------ ------------ ------------ ------------
Net equity transactions ................... 464,921 33,159 160,769 91,302 75,952
------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 480,532 33,573 163,880 90,956 79,624
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 480,532 33,573 163,880 90,956 79,624
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
VEWrldHAs WPGrInc
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- 134
Mortality and expense risk charges (note 2) ... (4) (34)
------------ ------------
Net investment activity ..................... (4) 100
------------ ------------
Proceeds from mutual fund shares sold ......... 4 28
Cost of mutual fund shares sold ............... (3) (28)
------------ ------------
Realized gain (loss) on investments ......... 1 --
Change in unrealized gain (loss) on investments 438 1,090
------------ ------------
Net gain (loss) on investments .............. 439 1,090
------------ ------------
Reinvested capital gains ...................... -- 241
------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 435 1,431
------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 10,000 91,192
Transfers between funds ....................... -- --
Redemptions ................................... -- --
Adjustments to maintain reserves .............. 2 --
------------ ------------
Net equity transactions ................... 10,002 91,192
------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 10,437 92,623
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- --
------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 10,437 92,623
============ ============
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 11
================================================================================
NATIONWIDE VARIABLE ACCOUNT-8
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide Variable Account-8 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on August 3, 1995. The Account has been
registered as a unit investment trust under the Investment Company Act
of 1940.
The Company offers tax qualified and non-tax qualified Individual
Deferred Variable Annuity Contracts through the Account. The primary
distribution for the contracts is through the brokerage community;
however, other distributors are utilized.
(b) The Contracts
Only contracts without a sales charge, but with certain other fees are
offered for purchase. See note 2 for a discussion of contract expenses.
Contract owners in either the accumulation or payout phase may invest
in the following:
Portfolios of the American Century Variable Portfolios, Inc.
(American Century VP);
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International
(ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
Federated Insurance Series - Quality Bond Fund II (FedQualBd)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio: Service Class
(FidVIPEIS)
Fidelity VIP - Growth Portfolio: Service Class (FidVIPGrS)
Fidelity VIP - High Income Portfolio: Service Class (FidVIPHIS)
Fidelity VIP - Overseas Portfolio: Service Class (FidVIPOvS)
Portfolios of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Contrafund Portfolio: Service Class
(FidVIPConS)
Portfolios of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio: Service Class
(FidVIPGrOpS)
Portfolios of the Morgan Stanley Dean Witter Universal Funds, Inc.
(Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
12
<PAGE> 12
Portfolios of the Nationwide Separate Account Trust (Nationwide
SAT) (managed for a fee by an affiliated investment advisor);
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Equity Income Fund (NSATEqInc)
Nationwide SAT - Global Equity Fund (NSATGlobEq)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
Nationwide SAT - Mid Cap Index Fund (NSATMidCap)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Select Advisers Small Cap Growth Fund
(NSATSmCapG)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
Nationwide SAT - Strategic Value Fund (NSATStrVal)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger &Berman AMT);
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
Portfolios of the Oppenheimer Variable Account Funds (Oppenheimer
VAF);
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
Oppenheimer VAF - Capital Appreciation Fund (OppCapApp)
Oppenheimer VAF - Main Street Growth & Income Fund (OppMSGrInc)
Portfolios of the Salomon Brothers Variable Series Funds Inc.
(Salomon Brothers VSF);
Salomon Brothers VSF - Capital Fund (SBVSFCap)
Salomon Brothers VSF - High Yield Bond Fund (SBVSFHYBd)
Salomon Brothers VSF - Investors Fund (SBVSFInv)
Salomon Brothers VSF - Total Return Fund (SBVSFTotRet)
Portfolios of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt) Van
Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
Portfolio of the Van Kampen Life Investment Trust (Van Kampen
LIT);
Van Kampen LIT - Morgan Stanley Real Estate Securities
Portfolio (VKMSRESec)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
At December 31, 1999, contract owners have invested in all of the above
funds except for Morgan Stanley - Emerging Markets Debt Portfolio and
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio. 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.
(Continued)
13
<PAGE> 13
NATIONWIDE VARIABLE ACCOUNT-8
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at December 31, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(f) Calculation of Annuity Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects otherwise,
in which case the rate may vary from 3.5 percent to 7 percent, as
regulated by the laws of the respective states. The mortality risk is
fully borne by the Company and may result in additional amounts being
transferred into the Account by the Company to cover greater longevity
of annuitants than expected. Conversely, if reserves exceed amounts
required, transfers may be made to the Company.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments 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 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) an annual
contract maintenance charge of up to $30, dependent upon contract type and
issue date, which is satisfied by surrendering units; and (b) a mortality
risk charge and an expense risk charge assessed through the daily unit
value calculation equal to an annual rate of 0.80% and 0.60%, respectively.
(3) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
14
<PAGE> 14
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
The following is a summary of contract owners' equity at December 31, 1999.
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
-------- ---------- ---------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP Income & Growth:
Tax qualified 4,221 $ 11.339911 $ 47,866 13%(a)
Non-tax qualified 11,760 11.339911 133,357 13%(a)
American Century VP -
American Century VP International:
Tax qualified 4,762 14.637401 69,703 46%(a)
Non-tax qualified 14,596 14.637401 213,648 46%(a)
American Century VP -
American Century VP Value:
Non-tax qualified 3,378 9.849004 33,270 (2)%(a)
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified 18,073 11.997336 216,828 20%(a)
Non-tax qualified 44,395 11.997336 532,622 20%(a)
Dreyfus VIF - Capital Appreciation Portfolio:
Tax qualified 14,243 10.993278 156,577 10%(a)
Non-tax qualified 19,355 10.993278 212,775 10%(a)
Federated Insurance Series -
Federated Quality Bond Fund II:
Tax qualified 1,815 9.964904 18,086 (0)%(a)
Non-tax qualified 2,213 9.964904 22,052 (0)%(a)
Fidelity VIP - Equity-Income Portfolio:
Service Class:
Tax qualified 9,763 10.356381 101,109 4%(a)
Non-tax qualified 31,024 10.356381 321,296 4%(a)
Fidelity VIP - Growth Portfolio:
Service Class:
Tax qualified 39,716 12.257729 486,828 23%(a)
Non-tax qualified 131,669 12.257729 1,613,963 23%(a)
Fidelity VIP - High Income Portfolio:
Service Class:
Tax qualified 390 10.369409 4,044 4%(a)
Non-tax qualified 8,909 10.369409 92,381 4%(a)
Fidelity VIP - Overseas Portfolio:
Service Class:
Tax qualified 5,579 12.390673 69,128 24%(a)
Non-tax qualified 13,630 12.390673 168,885 24%(a)
Fidelity VIP-II - Contrafund Portfolio:
Service Class:
Tax qualified 14,970 11.768698 176,177 18%(a)
Non-tax qualified 86,102 11.768698 1,013,308 18%(a)
Fidelity VIP-III - Growth Opportunities Portfolio:
Service Class:
Tax qualified 3,692 10.616993 39,198 6%(a)
Non-tax qualified 20,949 10.616993 222,415 6%(a)
(Continued)
</TABLE>
15
<PAGE> 15
NATIONWIDE VARIABLE ACCOUNT-8
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
-------- ---------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Capital Appreciation Fund:
Tax qualified ................................. 15,435 10.450957 161,311 5%(a)
Non-tax qualified ............................. 21,593 10.450957 225,668 5%(a)
Nationwide SAT - Equity Income Fund:
Tax qualified ................................. 202 11.395844 2,302 14%(a)
Non-tax qualified ............................. 589 11.395844 6,712 14%(a)
Nationwide SAT - Global Equity Fund:
Tax qualified ................................. 200 11.391398 2,278 14%(a)
Non-tax qualified ............................. 1,538 11.391398 17,520 14%(a)
Nationwide SAT - Government Bond Fund:
Tax qualified ................................. 4,691 9.933775 46,599 (1)%(a)
Non-tax qualified ............................. 4,111 9.933775 40,838 (1)%(a)
Nationwide SAT - High Income Bond Fund:
Non-tax qualified ............................. 50 10.253125 513 3%(a)
Nationwide SAT - Mid Cap Index Fund:
Tax qualified ................................. 6,370 11.693496 74,488 17%(a)
Non-tax qualified ............................. 14,067 11.693496 164,492 17%(a)
Nationwide SAT - Money Market Fund:
Tax qualified ................................. 32,871 10.090878 331,697 1%(a)
Non-tax qualified ............................. 17,633 10.090878 177,932 1%(a)
Nationwide SAT -
Select Advisers Small Cap Growth Fund:
Tax qualified ................................. 210 16.489018 3,463 65%(a)
Nationwide SAT - Small Cap Value Fund:
Tax qualified ................................. 2,394 11.112696 26,604 11%(a)
Non-tax qualified ............................. 4,111 11.112696 45,684 11%(a)
Nationwide SAT - Small Company Fund:
Tax qualified ................................. 1,173 13.189965 15,472 32%(a)
Non-tax qualified ............................. 5,560 13.189965 73,336 32%(a)
Nationwide SAT - Strategic Growth Fund:
Tax qualified ................................. 4,565 14.227539 64,949 42%(a)
Non-tax qualified ............................. 7,783 14.227539 110,733 42%(a)
Nationwide SAT - Strategic Value Fund:
Non-tax qualified ............................. 312 10.802650 3,370 8%(a)
Nationwide SAT - Total Return Fund:
Tax qualified ................................. 7,251 10.808344 78,371 8%(a)
Non-tax qualified ............................. 40,774 10.808344 440,699 8%(a)
Neuberger & Berman - Guardian Portfolio:
Tax qualified ................................. 2,128 11.613561 24,714 16%(a)
Non-tax qualified ............................. 2,275 11.613561 26,421 16%(a)
Neuberger & Berman -
Mid-Cap Growth Portfolio:
Tax qualified ................................. 1,504 14.837719 22,316 48%(a)
Non-tax qualified ............................. 1,961 14.837719 29,097 48%(a)
Neuberger & Berman - Partners Portfolio:
Non-tax qualified ............................. 130 10.903103 1,417 9%(a)
</TABLE>
16
<PAGE> 16
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
-------- ---------- ---------
<S> <C> <C> <C> <C>
Oppenheimer - Aggressive Growth Fund:
Tax qualified ................................. 9,373 14.519858 136,095 45%(a)
Non-tax qualified ............................. 8,006 14.519858 116,246 45%(a)
Oppenheimer - Capital Appreciation Fund:
Tax qualified ................................. 17,311 12.856734 222,563 29%(a)
Non-tax qualified ............................. 33,371 12.856734 429,042 29%(a)
Oppenheimer -
Main Street Growth & Income Fund:
Tax qualified ................................. 18,288 11.130917 203,562 11%(a)
Non-tax qualified ............................. 35,907 11.130917 399,678 11%(a)
Salomon Brothers VSF - Capital Fund:
Tax qualified ................................. 15,561 11.096446 172,672 11%(a)
Non-tax qualified ............................. 27,744 11.096446 307,860 11%(a)
Salomon Brothers VSF -
High Yield Bond Fund:
Tax qualified ................................. 202 10.333319 2,087 3%(a)
Non-tax qualified ............................. 3,047 10.333319 31,486 3%(a)
Salomon Brothers VSF - Investors Fund:
Tax qualified ................................. 3,672 10.536203 38,689 5%(a)
Non-tax qualified ............................. 11,882 10.536203 125,191 5%(a)
Salomon Brothers VSF - Total Return Fund:
Tax qualified ................................. 5,331 9.930789 52,941 (1)%(a)
Non-tax qualified ............................. 3,828 9.930789 38,015 (1)%(a)
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified ................................. 413 15.615759 6,449 56%(a)
Non-tax qualified ............................. 4,686 15.615759 73,175 56%(a)
Van Eck WIT - Worldwide Hard Assets Fund:
Non-tax qualified ............................. 1,012 10.313058 10,437 3%(a)
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax qualified ................................. 1,718 9.994949 17,171 (0)%(a)
Non-tax qualified ............................. 7,549 9.994949 75,452 (0)%(a)
======== ========
$ 10,643,323
=========
</TABLE>
(a) Non-annualized. The return was computed for the period 10/01/99 (effective
date) through 12/31/99.
(b) The period return does not include contract charges satisfied by
surrendering units.
17
<PAGE> 17
INDEPENDENT AUDITORS' REPORT
----------------------------
The Board of Directors of Nationwide Life Insurance Company and
Contract Owners of Nationwide Variable Account-8
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide Variable Account-8 (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 the period October 1, 1999 (commencement of operations)
through December 31, 1999. 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 audit 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 audit provides 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 the period October 1, 1999 (commencement of operations) through
December 31, 1999 in conformity with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
18
<PAGE> 18
[THIS PAGE LEFT BLANK INTENTIONALLY]
19
<PAGE> 19
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
