-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BlZ7WlI3eL7wwSVo6u+FlI8tT4ZLn7ZkLAv+CTAQJwajsodPDbARGRI2JjEBixiB aGBf+e3HvJyArmPYPslI5g== 0000950152-00-003153.txt : 20000427 0000950152-00-003153.hdr.sgml : 20000427 ACCESSION NUMBER: 0000950152-00-003153 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20000426 EFFECTIVENESS DATE: 20000426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE VARIABLE ACCOUNT 9 CENTRAL INDEX KEY: 0001040376 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: SEC FILE NUMBER: 333-28995 FILM NUMBER: 609552 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: SEC FILE NUMBER: 811-08241 FILM NUMBER: 609553 BUSINESS ADDRESS: STREET 1: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 8008603946 MAIL ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 485BPOS 1 NATIONWIDE VARIABLE ACCOUNT 9 1 As filed with the Securities and Exchange Commission. '33 Act File No. 333-28995 '40 Act File No. 811-08241 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 POST-EFFECTIVE AMENDMENT NO. 8 [X] and REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 AMENDMENT NO. 9 [X] NATIONWIDE VARIABLE ACCOUNT-9 (EXACT NAME OF REGISTRANT) NATIONWIDE LIFE INSURANCE COMPANY (NAME OF DEPOSITOR) ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code: (614) 249-7111 DENNIS W. CLICK, SECRETARY, ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215 (Name and Address of Agent for Service) This Post-Effective Amendment amends the Registration Statement in respect of the Prospectus, Statement of Additional Information, and the Financial Statements. [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on May 1, 2000 pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a) of Rule 485 [ ] on (date) pursuant to paragraph (a) of Rule 485 [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. ================================================================================ 2 NATIONWIDE VARIABLE ACCOUNT-9 REFERENCE TO ITEMS REQUIRED BY FORM N-4 Caption in Prospectus and Statement of Additional Information and Other Information
N-4 ITEM CAPTION PART A INFORMATION REQUIRED IN A PROSPECTUS Item 1. Cover Page..................................................Cover Page Item 2. Definitions.................................................Glossary of Special Terms Item 3. Synopsis or Highlights......................................Synopsis of the Contracts Item 4. Condensed Financial Information.............................Condensed Financial Information Item 5. General Description of Registrant, Depositor, and Portfolio Companies ........................................Nationwide Life Insurance Company; Investing in the Contract Item 6. Deductions and Expenses.....................................Standard Charges & Deductions Item 7. General Description of Variable Annuity Contracts....................................... Contract Ownership; Operation of the Contract Item 8. Annuity Period..............................................Annuitizing the Contract Item 9. Death Benefit...............................................Death Benefits Item 10. Purchases and Contract Value................................Operation of the Contract Item 11. Redemptions.................................................Surrender (Redemption) Item 12. Taxes .....................................................Federal Tax Considerations Item 13. Legal Proceedings...........................................Legal Proceedings Item 14. Table of Contents of the Statement of Additional Information ................................................Table of Contents of the Statement of Additional Information PART B INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION Item 15. Cover Page..................................................Cover Page Item 16. Table of Contents...........................................Table of Contents Item 17. General Information and History.............................General Information and History Item 18. Services....................................................Services Item 19. Purchase of Securities Being Offered........................Purchase of Securities Being Offered Item 20. Underwriters................................................Underwriters Item 21. Calculation of Performance Information......................Calculation of Performance Information Item 22. Annuity Payments............................................Annuity Payments Item 23. Financial Statements........................................Financial Statements PART C OTHER INFORMATION Item 24. Financial Statements and Exhibits...........................Item 24 Item 25. Directors and Officers of the Depositor.....................Item 25 Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant............................Item 26 Item 27. Number of Contract Owners...................................Item 27 Item 28. Indemnification.............................................Item 28 Item 29. Principal Underwriter.......................................Item 29 Item 30. Location of Accounts and Records............................Item 30 Item 31. Management Services.........................................Item 31 Item 32. Undertakings................................................Item 32
3 NATIONWIDE LIFE INSURANCE COMPANY Modified Single Premium Deferred Variable Annuity Contracts Issued by Nationwide Life Insurance Company through its Nationwide Variable Account-9 The date of this prospectus is May 1, 2000. Variable annuities are complex investment products with unique benefits and advantages that may be particularly useful to many investors in meeting long-term savings and retirement needs. There are, however, costs and charges associated with some of these unique benefits - costs and charges that do not exist or are not present with other investment products. With help from financial consultants or advisers, investors are encouraged to compare and contrast the costs and benefits of the variable annuity described in this prospectus with those of other investment products, including other variable annuity or variable life insurance products offered by Nationwide Life Insurance Company and its affiliates. This process will aid in determining whether the purchase of the contract described in this prospectus is consistent with an individual's goals, risk tolerance, time horizon, marital status, tax situation, and other personal characteristics and needs. THIS PROSPECTUS CONTAINS BASIC INFORMATION YOU SHOULD KNOW ABOUT THE CONTRACTS BEFORE INVESTING. PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE REFERENCE. The following underlying mutual funds are available under the contracts: AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN CENTURY(SM) FAMILY OF INVESTMENTS - - American Century VP Income & Growth - - American Century VP International - - American Century VP Value DREYFUS - - Dreyfus Investment Portfolios - European Equity Portfolio - - The Dreyfus Socially Responsible Growth Fund, Inc. - - Dreyfus Stock Index Fund, Inc. - - Dreyfus Variable Investment Fund - Appreciation Portfolio (formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio) EVERGREEN VARIABLE TRUST - - Evergreen VA Blue Chip Fund - - Evergreen VA Capital Growth Fund - - Evergreen VA Equity Index Fund - - Evergreen VA Foundation Fund - - Evergreen VA Fund - - Evergreen VA Global Leaders Fund - - Evergreen VA Growth and Income Fund - - Evergreen VA International Growth Fund - - Evergreen VA Masters Fund - - Evergreen VA Omega Fund - - Evergreen VA Small Cap Value Fund - - Evergreen VA Special Equity Fund - - Evergreen VA Strategic Income Fund FEDERATED INSURANCE SERIES - - Federated Quality Bond Fund II FIDELITY VARIABLE INSURANCE PRODUCTS FUND - - VIP Equity-Income Portfolio: Service Class - - VIP Growth Portfolio: Service Class - - VIP High Income Portfolio: Service Class* - - VIP Overseas Portfolio: Service Class FIDELITY VARIABLE INSURANCE PRODUCTS FUND II - - VIP II Contrafund(R) Portfolio: Service Class FIDELITY VARIABLE INSURANCE PRODUCT FUND III - - VIP III Growth Opportunities Portfolio: Service Class JANUS ASPEN SERIES - - Capital Appreciation Portfolio: Service Shares - - Global Technology Portfolio: Service Shares - - International Growth Portfolio: Service Shares 1 4 MORGAN STANLEY THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (FORMERLY, MORGAN STANLEY DEAN WITTER UNIVERSAL FUNDS, INC.) - - Emerging Markets Debt Portfolio - - Mid Cap Growth Portfolio VAN KAMPEN LIFE INVESTMENT TRUST - - Morgan Stanley Real Estate Securities Portfolio NATIONWIDE SEPARATE ACCOUNT TRUST - - Capital Appreciation Fund - - Government Bond Fund - - Money Market Fund - - Total Return Fund - - Nationwide Balanced Fund* (subadviser: J.P. Morgan Investment Management, Inc.) - - Nationwide Equity Income Fund (subadviser: Federated Investment Counseling) - - Nationwide Global 50 Fund (formerly, Nationwide Global Equity Fund) (subadviser: J.P. Morgan Investment Management, Inc.) - - Nationwide High Income Bond Fund* (subadviser: Federated Investment Counseling) - - Nationwide Mid Cap Index Fund (formerly, Nationwide Select Advisers Mid Cap Fund)(subadviser: The Dreyfus Corporation) - - Nationwide Multi Sector Bond Fund* (subadviser: Miller, Anderson & Sherrerd, LLP) - - Nationwide Small Cap Growth Fund (formerly, Nationwide Select Advisers Small Cap Growth Fund)(subadvisers: Franklin Advisers, Inc., Miller, Anderson & Sherrerd, LLP, Neuberger Berman, LLC.) - - Nationwide Small Cap Value Fund (subadviser: The Dreyfus Corporation) - - Nationwide Small Company Fund (subadvisers: The Dreyfus Corporation, Neuberger Berman, LLC., Lazard Asset Management and Strong Capital Management, Inc.) - - Nationwide Strategic Growth Fund (subadviser: Strong Capital Management, Inc.) NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST - - AMT Guardian Portfolio - - AMT Mid-Cap Growth Portfolio* - - AMT Partners Portfolio OPPENHEIMER VARIABLE ACCOUNT FUNDS - - Oppenheimer Aggressive Growth Fund/VA (formerly, Oppenheimer Capital Appreciation Fund) - - Oppenheimer Capital Appreciation Fund/VA (formerly, Oppenheimer Growth Fund) - - Oppenheimer Global Securities Fund/VA - - Oppenheimer Main Street Growth & Income Fund/VA (formerly, Oppenheimer Growth & Income Fund) STRONG OPPORTUNITY FUND II, INC. VAN ECK WORLDWIDE INSURANCE TRUST - - Worldwide Emerging Markets Fund - - Worldwide Hard Assets Fund VICTORY VARIABLE INSURANCE FUNDS - - Diversified Stock Fund: Class A - - Small Company Opportunity Fund: Class A * These underlying mutual funds may invest in lower quality debt securities commonly referred to as junk bonds. THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE IN CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER SEPTEMBER 27, 1999: WARBURG PINCUS TRUST - - International Equity Portfolio - - Global Post-Venture Capital Portfolio (formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio) 2 5 THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE IN CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER MAY 1, 2000: NATIONWIDE SEPARATE ACCOUNT TRUST - - Nationwide Strategic Value Fund (subadviser: Strong Capital Management, Inc./Schafer Capital Management, Inc.) WARBURG PINCUS TRUST - - Value Portfolio (formerly, Growth & Income Portfolio) Purchase payments not invested in the underlying mutual fund options of the Nationwide Variable Account-9 ("variable account") may be allocated to the fixed account or the Guaranteed Term Options (Guaranteed Term Options may not be available in every jurisdiction - refer to your contract for specific information). The Statement of Additional Information (dated May 1, 2000) which contains additional information about the contracts and the variable account has been filed with the Securities and Exchange Commission ("SEC") and is incorporated herein by reference. The table of contents for the Statement of Additional Information is on page 63. For general information or to obtain FREE copies of the: - - Statement of Additional Information; - - prospectus, annual report or semi-annual report for any underlying mutual fund; - - prospectus for the Guaranteed Term Options; or - - required Nationwide forms, call: 1-800-848-6331 TDD 1-800-238-3035 or write: NATIONWIDE LIFE INSURANCE COMPANY ONE NATIONWIDE PLAZA, 01-05-P1 COLUMBUS, OHIO 43215 The Statement of Additional Information and other material incorporated by reference can be found on the SEC website at: www.sec.gov Information about this and other Best of America products can be found at: www.bestofamerica.com THIS ANNUITY IS NOT: - - A BANK DEPOSIT - FEDERALLY INSURED - - ENDORSED BY A BANK - AVAILABLE IN EVERY STATE OR GOVERNMENT AGENCY Investors assume certain risks when investing in the contracts, including the possibility of losing money. These contracts are offered to customers of various financial institutions and brokerage firms. No financial institution or brokerage firm is responsible for the guarantees under the contracts. Guarantees under the contracts are the sole responsibility of Nationwide. In the future, additional underlying mutual funds managed by certain financial institutions, brokerage firms or their affiliates may be added to the variable account. These additional underlying mutual funds may be offered exclusively to purchasing customers of the particular financial institution or brokerage firm. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, NOR HAS THE SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. 3 6 GLOSSARY OF SPECIAL TERMS ACCUMULATION UNIT- An accounting unit of measure used to calculate the contract value allocated to the variable account before the annuitization date. ANNUITIZATION DATE- The date on which annuity payments begin. ANNUITY COMMENCEMENT DATE- The date on which annuity payments are scheduled to begin. This date may be changed by the contract owner with Nationwide's consent. ANNUITY UNIT- An accounting unit of measure used to calculate the variable annuity payments. CONTRACT VALUE- The total value of all accumulation units in a contract plus any amount held in the fixed account and any amount held under Guaranteed Term Options. CONTRACT YEAR- Each year the contract is in force beginning with the date the contract is issued. ERISA- The Employee Retirement Income Security Act of 1974, as amended. FIXED ACCOUNT- An investment option that is funded by the general account of Nationwide. GENERAL ACCOUNT- All assets of Nationwide other than those of the variable account or in other separate accounts that have been or may be established by Nationwide. INDIVIDUAL RETIREMENT ACCOUNT- An account that qualifies for favorable tax treatment under Section 408(a) of the Internal Revenue Code, but does not include Roth IRAs. INDIVIDUAL RETIREMENT ANNUITY- An annuity contract that qualifies for favorable tax treatment under Section 408(b) of the Internal Revenue Code, but does not include Roth IRAs. INVESTMENT-ONLY CONTRACT- A contract purchased by a Qualified Pension, Profit-Sharing or Stock Bonus Plan as defined by Section 401(a) of the Internal Revenue Code. NATIONWIDE- Nationwide Life Insurance Company. NON-QUALIFIED CONTRACT- A contract which does not qualify for favorable tax treatment as a Qualified Plan, Individual Retirement Annuity, Roth IRA, SEP IRA, Simple IRA, or Tax Sheltered Annuity. QUALIFIED PLANS- Retirement plans which receive favorable tax treatment under Section 401 or 403(a) of the Internal Revenue Code. ROTH IRA- An annuity contract which qualifies for favorable tax treatment under Section 408A of the Internal Revenue Code. SEP IRA- An annuity contract which qualifies for favorable tax treatment under Section 408(k) of the Internal Revenue Code. SIMPLE IRA- An annuity contract which qualifies for favorable tax treatment under Section 408(p) of the Internal Revenue Code. SUB-ACCOUNTS- Divisions of the variable account for which accumulation units and annuity units are separately maintained - each sub-account corresponds to a single underlying mutual fund. TAX SHELTERED ANNUITY- An annuity that qualifies for favorable tax treatment under Section 403(b) of the Internal Revenue Code. VALUATION PERIOD- Each day the New York Stock Exchange is open for business. VARIABLE ACCOUNT- Nationwide Variable Account-9, a separate account of Nationwide that contains variable account allocations. The variable account is divided into sub-accounts, each of which invests in shares of a separate underlying mutual fund. 4 7 TABLE OF CONTENTS GLOSSARY OF SPECIAL TERMS SUMMARY OF STANDARD CONTRACT EXPENSES ADDITIONAL CONTRACT OPTIONS UNDERLYING MUTUAL FUND ANNUAL EXPENSES EXAMPLE SYNOPSIS OF THE CONTRACTS FINANCIAL STATEMENTS CONDENSED FINANCIAL INFORMATION NATIONWIDE LIFE INSURANCE COMPANY NATIONWIDE INVESTMENT SERVICES CORPORATION TYPES OF CONTRACTS Non-Qualified Annuity Contracts Individual Retirement Annuities (IRAs) Simplified Employee Pension IRAs (SEP IRAs) Simple IRAs Roth IRAs Tax Sheltered Annuities Qualified Plans INVESTING IN THE CONTRACT The Variable Account and Underlying Mutual Funds Guaranteed Term Options The Fixed Account STANDARD CHARGES AND DEDUCTIONS Mortality and Expense Risk Charge Contingent Deferred Sales Charge Premium Taxes OPTIONAL CONTRACT BENEFITS, CHARGES AND DEDUCTIONS Reduced Purchase Payment Option CDSC Options and Charges Death Benefit Options Guaranteed Minimum Income Benefit Option Extra Value Option CONTRACT OWNERSHIP Joint Ownership Contingent Ownership Annuitant Beneficiary and Contingent Beneficiary OPERATION OF THE CONTRACT Minimum Initial and Subsequent Purchase Payments Pricing Allocation of Purchase Payments Determining the Contract Value Transfers Prior to Annuitization Transfers After Annuitization Transfer Requests RIGHT TO REVOKE SURRENDER (REDEMPTION) Partial Surrenders (Partial Redemptions) Full Surrenders (Full Redemptions) Surrenders Under a Texas Optional Retirement Program or a Louisiana Optional Retirement Plan Surrenders Under a Tax Sheltered Annuity LOAN PRIVILEGE Minimum & Maximum Loan Amounts Loan Processing Fee How Loan Requests are Processed Loan Interest Loan Repayment Distributions & Annuity Payments Transferring the Contract Grace Period & Loan Default ASSIGNMENT CONTRACT OWNER SERVICES Asset Rebalancing Dollar Cost Averaging Systematic Withdrawals ANNUITY COMMENCEMENT DATE ANNUITIZING THE CONTRACT Annuitization Date Annuitization Fixed Payment Annuity Variable Payment Annuity 5 8 Frequency and Amount of Annuity Payments Guaranteed Minimum Income Benefit Option ("GMIB") Annuity Payment Options DEATH BENEFITS Death of Contract Owner - Non-Qualified Contracts Death of Annuitant - Non-Qualified Contracts Death of Contract Owner/Annuitant Death Benefit Payment REQUIRED DISTRIBUTIONS Required Distributions for Non-Qualified Contracts Required Distributions for Tax Sheltered Annuities Required Distributions for Individual Retirement Annuities, SEP IRAs and Simple IRAs Required Distributions for Roth IRAs FEDERAL TAX CONSIDERATIONS Federal Income Taxes Withholding Non-Resident Aliens Federal Estate, Gift, and Generation Skipping Transfer Taxes Charge for Tax Diversification Tax Changes STATEMENTS AND REPORTS LEGAL PROCEEDINGS ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS APPENDIX B: CONDENSED FINANCIAL INFORMATION 6 9 SUMMARY OF STANDARD CONTRACT EXPENSES The expenses listed below are charged to all contracts unless: - - the contract owner meets an available exception under the contract; or - - a contract owner has replaced a standard benefit with an available option for an additional charge. CONTRACT OWNER TRANSACTION EXPENSES Maximum Contingent Deferred Sales Charge ("CDSC") (as a percentage of purchase payments surrendered) 7%(1) Range of CDSC over time:
Number of Completed Years from CDSC Date of Purchase Payment Percentage 0 7% 1 7% 2 6% 3 5% 4 4% 5 3% 6 2% 7 0%
(1) Each contract year, the contract owner may withdraw without a CDSC the greater of: (1) 10% of all purchase payments made to the contract; or (2) any amount withdrawn to meet minimum distribution requirements under the Internal Revenue Code This free withdrawal privilege is non-cumulative. Free amounts not taken during any given contract year cannot be taken as free amounts in a subsequent contract year (see "Contingent Deferred Sales Charge"). Withdrawals may be restricted for contracts issued as Tax Sheltered Annuities due to Internal Revenue Code restrictions. VARIABLE ACCOUNT CHARGES(2) (as a percentage of the daily net assets of the variable account) Mortality and Expense Risk Charges 0.95% Total Variable Account Charges 0.95%(3) (2) These charges apply only to sub-account allocations. They do not apply to allocations made to the fixed account or to the Guaranteed Term Options. They are charged on a daily basis at the annual rate noted above. (3) Charges shown include the Five-Year Reset Death Benefit that is standard to every contract (see "Death Benefit Payment"). Nationwide may assess a loan processing fee at the time each new loan is processed. Loans are only available for contracts issued as Tax Sheltered Annuities. Loans are not available in all states. In addition, some states may not permit Nationwide to assess a loan processing fee (see "Loan Privilege"). 7 10 ADDITIONAL CONTRACT OPTIONS For an additional charge, the following options are available to contract owners (upon approval by state insurance authorities). These options must be elected at the time of application and will replace the corresponding standard contract benefits. If the contract owner chooses one or more of the following optional benefits, a corresponding charge will be deducted. Charges for the optional benefits are IN ADDITION TO the standard variable account charges. Except as otherwise noted, optional benefit charges will only apply to allocations made to the variable account and are charged as a percentage of the average variable account value. REDUCED PURCHASE PAYMENT OPTION For an additional charge at an annualized rate of 0.25% of the daily net assets of the variable account, Nationwide will lower an applicant's minimum initial purchase payment to $1,000 and subsequent purchase payments to $25. This option in not available to contracts issued as Investment-only Contracts. Reduced Purchase Payment Option 0.25% Total Variable Account Charges (including Reduced Purchase Payment Option) 1.20%
FIVE YEAR CDSC OPTION For an additional charge at an annualized rate of 0.15% of the daily net assets of the variable account, an applicant can receive a five year CDSC schedule, instead of the standard seven year CDSC schedule. Five Year CDSC Option 0.15% Total Variable Account Charges (including Five Year CDSC Option) 1.10%
Range of Five-Year CDSC over time:
Number of Completed Years from CDSC Date of Purchase Payment Percentage 0 7% 1 7% 2 6% 3 4% 4 2% 5 0%
For contracts issued in the State of New York, this option is available only for contracts issued as Roth IRAs and is not available when the Extra Value Option is elected. CDSC WAIVER OPTIONS ADDITIONAL WITHDRAWAL WITHOUT CHARGE AND DISABILITY WAIVER For an additional charge at an annualized rate of 0.10% of the daily net assets of the variable account, an applicant can receive an additional 5% CDSC-free withdrawal privilege, which also includes a disability waiver. This 5% is in addition to the standard 10% CDSC-free withdrawal privilege that applies to every contract (see "CDSC Options and Charges"). Additional Withdrawal Without Charge and Disability Waiver 0.10% Total Variable Account Charges (including Additional Withdrawal Without Charge and Disability Waiver) 1.05%
ADDITIONAL CDSC WAIVER OPTIONS FOR TAX SHELTERED ANNUITIES Tax Sheltered Annuity applicants may also elect two additional CDSC waiver options (see "CDSC Options and Charges"). 10 Year and Disability Waiver 0.05% Total Variable Account Charges (including 10 Year and Disability Waiver) 1.00% Hardship Waiver 0.15% Total Variable Account Charges (including Hardship Waiver) 1.10%
8 11 DEATH BENEFIT OPTIONS An applicant may choose among the following death benefits as a replacement for the Five-Year Reset Death Benefit that is standard to every contract. The optional death benefits are: Optional One-Year Step Up Death Benefit 0.05% Total Variable Account Charges (including One Year Step Up Death Benefit) 1.00% Optional 5% Enhanced Death Benefit 0.10% Total Variable Account Charges (including 5% Enhanced Death Benefit) 1.05%
GUARANTEED MINIMUM INCOME BENEFIT OPTION For an additional charge at an annualized rate of 0.45% of the daily net assets of the variable account, an applicant may elect the Guaranteed Minimum Income Benefit option (see "Guaranteed Minimum Income Benefit Option"). Guaranteed Minimum Income Benefit Option 0.45% Total Variable Account Charges (including a Guaranteed Minimum Income Benefit option) 1.40%
EXTRA VALUE OPTION For an additional charge at an annualized rate of 0.45% of the daily net assets of the variable account, Nationwide will credit 3% of the purchase payment(s) made to the contract during the first 12 months the contract is in force. Nationwide will discontinue deducting this charge seven years from the date the contract was issued (see "Extra Value Option"). Extra Value Option 0.45% Total Variable Account Charges (including Extra Value Option) 1.40%
The charge for the Extra Value Option will be assessed against the fixed account and the Guaranteed Term Option allocations during the first seven contract years in the form of crediting rates that may be up to 0.45% less than the crediting rates available when the Extra Value Option is not elected (see "Fixed Account" and "Guaranteed Term Options"). 9 12 UNDERLYING MUTUAL FUND ANNUAL EXPENSES (AS A PERCENTAGE OF UNDERLYING MUTUAL FUND NET ASSETS, AFTER EXPENSE REIMBURSEMENT)
Management Other 12b-1 Total Underlying Fees Expenses Fees Mutual Fund Expenses ------------------------------------------------------------------------------------------------------------------------ American Century Variable Portfolios, Inc. - American 0.70% 0.00% 0.00% 0.70% Century VP Income & Growth American Century Variable Portfolios, Inc. - American 1.34% 0.00% 0.00% 1.34% Century VP International American Century Variable Portfolios, Inc. - American 1.00% 0.00% 0.00% 1.00% Century VP Value Dreyfus Investment Portfolios - European Equity Portfolio 1.00% 0.25% 0.00% 1.25% The Dreyfus Socially Responsible Growth Fund, Inc. 0.75% 0.04% 0.00% 0.79% Dreyfus Stock Index Fund, Inc. 0.25% 0.01% 0.00% 0.26% Dreyfus Variable Investment Fund - Appreciation Portfolio 0.43% 0.35% 0.00% 0.78% (formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio) Evergreen Variable Trust - Evergreen VA Blue Chip Fund 0.35% 0.65% 0.00% 1.00%(1) Evergreen Variable Trust - Evergreen VA Capital Growth Fund 0.80% 0.38% 0.00% 1.18% Evergreen Variable Trust - Evergreen VA Equity Index Fund 0.00% 0.31% 0.00% 0.31% Evergreen Variable Trust - Evergreen VA Foundation Fund 0.84% 0.11% 0.00% 0.95% Evergreen Variable Trust - Evergreen VA Fund 0.89% 0.13% 0.00% 1.02% Evergreen Variable Trust - Evergreen VA Global Leaders Fund 0.77% 0.24% 0.00% 1.01% Evergreen Variable Trust - Evergreen VA Growth and Income 0.89% 0.12% 0.00% 1.01% Fund Evergreen Variable Trust - Evergreen VA International Growth 0.00% 1.03% 0.00% 1.03% Fund Evergreen Variable Trust - Evergreen VA Masters Fund 0.45% 0.55% 0.00% 1.00% Evergreen Variable Trust - Evergreen VA Omega Fund 0.60% 0.36% 0.00% 0.96% Evergreen Variable Trust - Evergreen VA Small Cap Value Fund 0.59% 0.42% 0.00% 1.01% Evergreen Variable Trust - Evergreen VA Special Equity Fund 0.00% 1.03% 0.00% 1.03% Evergreen Variable Trust - Evergreen VA Strategic Income Fund 0.61% 0.23% 0.00% 0.84% Federated Insurance Series - Federated Quality Bond Fund II 0.00% 0.68% 0.00% 0.68% Fidelity VIP Equity-Income Portfolio: Service Class 0.48% 0.08% 0.10% 0.66% Fidelity VIP Growth Portfolio: Service Class 0.58% 0.07% 0.10% 0.75% Fidelity VIP High Income Portfolio: Service Class 0.58% 0.11% 0.10% 0.79% Fidelity VIP Overseas Portfolio: Service Class 0.73% 0.15% 0.10% 0.98% Fidelity VIP II Contrafund(R) Portfolio: Service Class 0.58% 0.07% 0.10% 0.75% Fidelity VIP III Growth Opportunities Portfolio: Service 0.58% 0.10% 0.10% 0.78% Class Janus Aspen Series - Capital Appreciation Portfolio: 0.65% 0.04% 0.25% 0.94% Service Shares(2) Janus Aspen Series - Global Technology Portfolio: Service 0.65% 0.13% 0.25% 1.03% Shares(2) Janus Aspen Series - International Growth Portfolio: 0.65% 0.11% 0.25% 1.01% Service Shares(2) NSAT Capital Appreciation Fund 0.60% 0.14% 0.00% 0.74% NSAT Government Bond Fund 0.50% 0.15% 0.00% 0.65% NSAT Money Market Fund 0.39% 0.15% 0.00% 0.54%
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Management Other 12b-1 Total Underlying Fees Expenses Fees Mutual Fund Expenses - --------------------------------------------------------------------------------------------------------------------------- NSAT Total Return Fund 0.58% 0.14% 0.00% 0.72% NSAT Nationwide Balanced Fund 0.75% 0.15% 0.00% 0.90% NSAT Nationwide Equity Income Fund 0.80% 0.15% 0.00% 0.95% NSAT Nationwide Global 50 Fund (formerly, NSAT Nationwide 1.00% 0.20% 0.00% 1.20% Global Equity Fund) NSAT Nationwide High Income Bond Fund 0.80% 0.15% 0.00% 0.95% NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 0.88% 0.15% 0.00% 1.03% Nationwide Select Advisers Mid Cap Fund) NSAT Nationwide Multi-Sector Bond Fund 0.75% 0.15% 0.00% 0.90% NSAT Nationwide Small Cap Growth Fund (formerly, NSAT 1.10% 0.20% 0.00% 1.30% Nationwide Select Advisers Small Cap Growth Fund) NSAT Nationwide Small Cap Value Fund 0.90% 0.15% 0.00% 1.05% NSAT Nationwide Small Company Fund 0.98% 0.17% 0.00% 1.15% NSAT Nationwide Strategic Growth Fund 0.90% 0.10% 0.00% 1.00% NSAT Nationwide Strategic Value Fund 0.90% 0.10% 0.00% 1.00% Neuberger Berman AMT Guardian Portfolio 0.85% 0.15% 0.00% 1.00% Neuberger Berman AMT Mid-Cap Growth Portfolio 0.85% 0.15% 0.00% 1.00% Neuberger Berman AMT Partners Portfolio 0.80% 0.07% 0.00% 0.87% Oppenheimer Variable Account Funds - Oppenheimer Aggressive 0.66% 0.01% 0.00% 0.67% Growth Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund) Oppenheimer Variable Account Funds - Oppenheimer Capital 0.68% 0.02% 0.00% 0.70% Appreciation Fund/VA (formerly, Oppenheimer Variable Accounts Funds - Oppenheimer Growth Fund) Oppenheimer Variable Account Funds - Oppenheimer Global 0.67% 0.02% 0.00% 0.69% Securities Fund/VA Oppenheimer Variable Account Funds - Oppenheimer Main Street 0.73% 0.05% 0.00% 0.78% Growth & Income Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund) Strong Opportunity Fund II, Inc. 1.00% 0.14% 0.00% 1.14% The Universal Institutional Funds, Inc. - Emerging Markets 0.45% 0.98% 0.00% 1.43% Debt Portfolio (formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio) The Universal Institutional Funds, Inc. - Mid Cap Growth 0.00% 1.05% 0.00% 1.05% Portfolio Van Eck Worldwide Insurance Trust - Worldwide Emerging 1.00% 0.34% 0.00% 1.34% Markets Fund Van Eck Worldwide Insurance Trust - Worldwide Hard Assets 1.00% 0.26% 0.00% 1.26% Fund Van Kampen Life Investment Trust - Morgan Stanley Real 0.97% 0.13% 0.00% 1.10% Estate Securities Portfolio Victory Variable Insurance Funds - Diversified Stock Fund: 0.00% 0.78% 0.00% 0.78% Class A Victory Variable Insurance Funds - Small Company Opportunity 0.00% 0.75% 0.00% 0.75% Fund: Class A
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Management Other 12b-1 Total Underlying Fees Expenses Fees Mutual Fund Expenses Warburg Pincus Trust - Global Post-Venture Capital Portfolio 1.07% 0.33% 0.00% 1.40% (formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio) Warburg Pincus Trust - International Equity Portfolio 1.00% 0.32% 0.00% 1.32% Warburg Pincus Trust - Value Portfolio (formerly, Warburg 0.56% 0.44% 0.00% 1.00% Pincus Trust - Growth & Income Portfolio)
(1) The expenses shown are estimated expenses. (2) Expenses are based on the estimated expenses that the new Service Shares class of each Portfolio expects to incur in its initial fiscal year. The expenses shown above are deducted by the underlying mutual fund before it provides Nationwide with the daily net asset value. Nationwide then deducts applicable variable account charges from the net asset value in calculating the unit value of the corresponding sub-account. The management fees and other expenses are more fully described in the prospectus for each underlying mutual fund. Information relating to the underlying mutual funds was provided by the underlying mutual funds and not independently verified by Nationwide. Some underlying mutual funds are subject to fee waivers and expense reimbursements. The following chart shows what the expenses would have been for such funds without fee waivers and expense reimbursements:
Management Other 12b-1 Total Underlying Fees Expenses Fees Mutual Fund Expenses ------------------------------------------------------------------------------------------------------------------------ Evergreen Variable Trust - Evergreen VA Blue Chip Fund 0.61% 0.65% 0.00% 1.26% Evergreen Variable Trust - Evergreen VA Equity Index Fund 0.40% 0.42% 0.00% 0.82% Evergreen Variable Trust - Evergreen VA Fund 0.95% 0.13% 0.00% 1.08% Evergreen Variable Trust - Evergreen VA Global Leaders 0.95% 0.24% 0.00% 1.19% Fund Evergreen Variable Trust - Evergreen VA Growth and 0.95% 0.12% 0.00% 1.07% Income Fund Evergreen Variable Trust - Evergreen VA International 0.75% 1.69% 0.00% 2.44% Growth Fund Evergreen Variable Trust - Evergreen VA Masters Fund 0.95% 0.55% 0.00% 1.50% Evergreen Variable Trust - Evergreen VA Omega Fund 0.60% 0.36% 0.00% 0.96% Evergreen Variable Trust - Evergreen VA Small Cap Value 0.95% 0.42% 0.00% 1.37% Fund Evergreen Variable Trust - Evergreen VA Special Equity 1.36% 2.32% 0.00% 3.68% Fund Federated Insurance Series - Federated Quality Bond Fund 0.60% 0.89% 0.25% 1.74% II Fidelity VIP Equity-Income Portfolio: Service Class 0.48% 0.09% 0.10% 0.67% Fidelity VIP Growth Portfolio: Service Class 0.58% 0.09% 0.10% 0.77% Fidelity VIP Overseas Portfolio: Service Class 0.73% 0.18% 0.10% 1.01% Fidelity VIP II Contrafund(R) Portfolio: Service Class 0.58% 0.10% 0.10% 0.78% Fidelity VIP III Growth Opportunities Portfolio: Service 0.58% 0.11% 0.10% 0.79% Class NSAT Nationwide Balanced Fund 0.75% 0.25% 0.00% 1.00% NSAT Nationwide Equity Income Fund 0.80% 0.29% 0.00% 1.09%
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Management Other 12b-1 Total Underlying Fees Expenses Fees Mutual Fund Expenses ------------------------------------------------------------------------------------------------------------------------ NSAT Nationwide Global 50 Fund (formerly, NSAT 1.00% 0.54% 0.00% 1.54% Nationwide Global Equity Fund) NSAT Nationwide High Income Bond Fund 0.80% 0.50% 0.00% 1.30% NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 0.88% 0.86% 0.00% 1.74% Nationwide Select Advisers Mid Cap Fund) NSAT Nationwide Multi Sector Bond Fund 0.75% 0.27% 0.00% 1.02% NSAT Nationwide Small Cap Growth Fund (formerly, NSAT 1.10% 1.30% 0.00% 2.40% Nationwide Select Advisers Small Cap Growth Fund) NSAT Nationwide Small Cap Value Fund 0.90% 0.37% 0.00% 1.27% NSAT Nationwide Strategic Growth Fund 0.90% 0.33% 0.00% 1.23% NSAT Nationwide Strategic Value Fund 0.90% 0.32% 0.00% 1.22% Neuberger Berman AMT Mid-Cap Growth Portfolio 0.93% 0.15% 0.00% 1.08% The Universal Institutional Funds, Inc. - Emerging 0.80% 0.98% 0.00% 1.78% Markets Debt Portfolio (formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio) The Universal Institutional Funds, Inc. - Mid Cap Growth 0.75% 7.31% 0.00% 8.06% Portfolio Van Eck Worldwide Insurance Trust - Worldwide Emerging 1.00% 0.54% 0.00% 1.54% Markets Fund Van Kampen Life Investment Trust - Morgan Stanley Real 1.00% 0.13% 0.00% 1.13% Estate Securities Portfolio Victory Variable Insurance Funds - Diversified Stock 0.30% 6.68% 0.00% 6.98% Fund: Class A Victory Variable Insurance Funds - Small Company 0.30% 9.33% 0.00% 9.63% Opportunity Fund: Class A Warburg Pincus Trust - Global Post-Venture Capital 1.25% 0.33% 0.00% 1.58% Portfolio (formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio) Warburg Pincus Trust- Value Portfolio (formerly, Warburg 0.75% 0.59% 0.00% 1.34% Pincus Trust - Growth & Income Portfolio)
13 16 EXAMPLE The following chart shows the expenses (in dollars) that would be incurred under this contract assuming a $1,000 investment, 5% annual return, and no change in underlying mutual fund expenses. These dollar figures are illustrative only and should not be considered a representation of past or future expenses. Actual expenses may be greater or less than those shown below. The example reflects expenses of both the variable account and the underlying mutual funds. The example reflects the 7 year CDSC schedule and an assumed variable account charge of 2.70% which is the maximum charge for the maximum number of rider options. For those contracts that do not elect the maximum number of rider options, the expenses are reduced. Deductions for premium taxes are not reflected but may apply.
If you surrender your If you do not surrender If you annuitize your contract at the end of the your contract at the end of contract at the applicable time period the applicable time period end of the applicable time period - -------------------------------------------------------------------------------------------------------------------------- 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. - -------------------------------------------------------------------------------------------------------------------------- American Century Variable 99 163 220 381 36 109 184 381 * 109 184 381 Portfolios, Inc. - American Century VP Income & Growth American Century Variable 105 182 251 439 42 128 215 439 * 128 215 439 Portfolios, Inc. - American Century VP International American Century Variable 102 172 235 409 39 118 199 409 * 118 199 409 Portfolios, Inc. - American Century VP Value Dreyfus Investment Portfolios 104 179 247 431 41 125 211 431 * 125 211 431 - - European Equity Portfolio The Dreyfus Socially 100 165 224 389 37 111 188 389 * 111 188 389 Responsible Growth Fund, Inc. Dreyfus Stock Index Fund, Inc. 94 149 197 339 31 95 161 339 * 95 161 339 Dreyfus Variable Investment 100 165 224 388 37 111 188 388 * 111 188 388 Fund - Appreciation Portfolio (formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio) Evergreen Variable Trust - 102 172 235 409 39 118 199 409 * 118 199 409 Evergreen VA Blue Chip Fund Evergreen Variable Trust - 104 177 244 425 41 123 208 425 * 123 208 425 Evergreen VA Capital Growth Fund Evergreen Variable Trust - 95 151 200 344 32 97 164 344 * 97 164 344 Evergreen VA Equity Index Fund Evergreen Variable Trust - 101 170 232 404 38 116 196 404 * 116 196 404 Evergreen VA Foundation Fund Evergreen Variable Trust - 102 172 236 410 39 118 200 410 * 118 200 410 Evergreen VA Fund
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If you surrender your If you do not surrender If you annuitize your contract at the end of the your contract at the end of contract at the applicable time period the applicable time period end of the applicable time period - -------------------------------------------------------------------------------------------------------------------------- 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. ----- ------ ------ ------- ----- ----- ------ ------- ----- ------ ------ ------- Evergreen Variable Trust - 102 172 235 409 39 118 199 409 * 118 199 409 Evergreen VA Global Leaders Fund Evergreen Variable Trust - 102 172 235 409 39 118 199 409 * 118 199 409 Evergreen VA Growth and Income Fund Evergreen Variable Trust - 102 173 236 411 39 119 200 411 * 119 200 411 Evergreen VA International Growth Fund Evergreen Variable Trust - 102 172 235 409 39 118 199 409 * 118 199 409 Evergreen VA Masters Fund Evergreen Variable Trust - 101 171 233 405 38 117 197 405 * 117 197 405 Evergreen VA Omega Fund Evergreen Variable Trust - 102 172 235 409 39 118 199 409 * 118 199 409 Evergreen VA Small Cap Value Fund Evergreen Variable Trust - 102 173 236 411 39 119 200 411 * 119 200 411 Evergreen VA Special Equity Fund Evergreen Variable Trust - 100 167 227 394 37 113 191 394 * 113 191 394 Evergreen VA Strategic Income Fund Federated Insurance Series - 98 162 219 379 35 108 183 379 * 108 183 379 Federated Quality Bond Fund II Fidelity VIP Equity-Income 98 161 218 377 35 107 182 377 * 107 182 377 Portfolio: Service Class Fidelity VIP Growth 99 164 222 386 36 110 186 386 * 110 186 386 Portfolio: Service Class Fidelity VIP High Income 100 165 224 389 37 111 188 389 * 111 188 389 Portfolio: Service Class Fidelity VIP Overseas 102 171 234 407 39 117 198 407 * 117 198 407 Portfolio: Service Class Fidelity VIP II Contrafund(R) 99 164 222 386 36 110 186 386 * 110 186 386 Portfolio: Service Class Fidelity VIP III Growth 100 165 224 388 37 111 188 388 * 111 188 388 Opportunities Portfolio: Service Class Janus Aspen Series - Capital 101 170 232 403 38 116 196 403 * 116 196 403 Appreciation Portfolio: Service Shares Janus Aspen Series - Global 102 173 236 411 39 119 200 411 * 119 200 411 Technology Portfolio: Service Shares Janus Aspen Series - 102 172 235 409 39 118 199 409 * 118 199 409 International Growth Portfolio: Service Shares NSAT Capital Appreciation Fund 99 164 222 385 36 110 186 385 * 110 186 385 NSAT Government Bond Fund 98 161 217 376 35 107 181 376 * 107 181 376
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If you surrender your If you do not surrender If you annuitize your contract at the end of the your contract at the end of contract at the applicable time period the applicable time period end of the applicable time period - -------------------------------------------------------------------------------------------------------------------------- 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. - -------------------------------------------------------------------------------------------------------------------------- NSAT Money Market Fund 97 158 212 366 34 104 176 366 * 104 176 366 NSAT Total Return Fund 99 163 221 383 36 109 185 383 * 109 185 383 NSAT Nationwide Balanced Fund 101 169 230 399 38 115 194 399 * 115 194 399 NSAT Nationwide Equity Income 101 170 232 404 38 116 196 404 * 116 196 404 Fund NSAT Nationwide Global 50 104 178 244 427 41 124 208 427 * 124 208 427 Fund (formerly, NSAT Nationwide Global Equity Fund) NSAT Nationwide High Income 101 170 232 404 38 116 196 404 * 116 196 404 Bond Fund NSAT Nationwide Mid Cap Index 102 173 236 411 39 119 200 411 * 119 200 411 Fund (formerly, NSAT Nationwide Select Advisers Mid Cap Fund) NSAT Nationwide Multi Sector 101 169 230 399 38 115 194 399 * 115 194 399 Bond Fund NSAT Nationwide Small Cap 105 181 249 435 42 127 213 435 * 127 213 435 Growth Fund (formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund) NSAT Nationwide Small Cap 102 173 237 413 39 119 201 413 * 119 201 413 Value Fund NSAT Nationwide Small Company 103 176 242 422 40 122 206 422 * 122 206 422 Fund NSAT Nationwide Strategic 102 172 235 409 39 118 199 409 * 118 199 409 Growth Fund NSAT Nationwide Strategic 102 172 235 409 39 118 199 409 * 118 199 409 Value Fund Neuberger Berman AMT Guardian 102 172 235 409 39 118 199 409 * 118 199 409 Portfolio Neuberger Berman AMT Mid-Cap 102 172 235 409 39 118 199 409 * 118 199 409 Growth Portfolio Neuberger Berman AMT Partners 100 168 228 397 37 114 192 397 * 114 192 397 Portfolio Oppenheimer Variable Account 98 162 218 378 35 108 182 378 * 108 182 378 Funds - Oppenheimer Aggressive Growth Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund) Oppenheimer Variable Account 99 163 220 381 36 109 184 381 * 109 184 381 Funds - Oppenheimer Capital Appreciation Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund)
16 19
If you surrender your If you do not surrender If you annuitize your contract at the end of the your contract at the end of contract at the applicable time period the applicable time period end of the applicable time period - -------------------------------------------------------------------------------------------------------------------------- 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. - -------------------------------------------------------------------------------------------------------------------------- Oppenheimer Variable Account 99 162 219 380 36 108 183 380 * 108 183 380 Funds - Oppenheimer Global Securities Fund/VA Oppenheimer Variable Account 100 165 224 388 37 111 188 388 * 111 188 388 Funds - Oppenheimer Main Street Growth & Income Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund) Strong Opportunity Fund II, 103 176 242 421 40 122 206 421 * 122 206 421 Inc. The Universal Institutional 106 185 256 447 43 131 220 447 * 131 220 447 Funds, Inc. - Emerging Markets Debt Portfolio (formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio) The Universal Institutional 102 173 237 413 39 119 201 413 * 119 201 413 Funds, Inc. - Mid Cap Growth Portfolio Van Eck Worldwide Insurance 105 182 251 439 42 128 215 439 * 128 215 439 Trust - Worldwide Emerging Markets Fund Van Eck Worldwide Insurance 105 180 247 432 42 126 211 432 * 126 211 432 Trust - Worldwide Hard Assets Fund Van Kampen Life Investment 103 175 240 418 40 121 204 418 * 121 204 418 Trust - Morgan Stanley Real Estate Securities Portfolio Victory Variable Insurance 100 165 224 388 37 111 188 388 * 111 188 388 Funds - Diversified Stock Fund: Class A Victory Variable Insurance 99 164 222 386 36 110 186 386 * 110 186 386 Funds - Small Company Opportunity Fund: Class A Warburg Pincus Trust - Global 106 184 254 444 43 130 218 444 * 130 218 444 Post-Venture Capital Portfolio (formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio) Warburg Pincus Trust - 105 182 250 437 42 128 214 437 * 128 214 437 International Equity Portfolio Warburg Pincus Trust - Value 102 172 235 409 39 118 199 409 * 118 199 409 Portfolio (formerly, Warburg Pincus Trust - Growth & Income Portfolio)
* The contracts sold under this prospectus do not permit annuitization during the first two contract years. 17 20 SYNOPSIS OF THE CONTRACTS The contracts described in this prospectus are modified single purchase payment contracts. The contracts may be issued as either individual or group contracts. In those states where contracts are issued as group contracts, references throughout this prospectus to "contract(s)" will also mean "certificate(s)." The contracts can be categorized as: - - Investment-only; - - Non-Qualified; - - Individual Retirement Annuities with contributions rolled over or transferred from certain tax-qualified plans*; - - Roth IRAs; - - Tax Sheltered Annuities with contributions rolled over or transferred from other Tax Sheltered Annuity plans*; - - Charitable Remainder Trusts; - - SEP IRAs; and - - Simple IRAs. * Contributions are not required to be rolled over or transferred if the contract owner elects the Reduced Purchase Payment Option. For more detailed information with regard to the differences in contract types, please see "Types of Contracts" later in this prospectus. MINIMUM INITIAL AND SUBSEQUENT PURCHASE PAYMENTS
MINIMUM INITIAL MINIMUM CONTRACT PURCHASE PAYMENT SUBSEQUENT TYPE PAYMENTS - -------------------- ----------------- ------------------ Investment-only $15,000 $1,000 Non-Qualified $15,000 $1,000 IRA $15,000 $1,000 Roth IRA $15,000 $1,000 Tax Sheltered $15,000 $1,000 Annuity Charitable $15,000 $1,000 Remainder Trust SEP IRA $15,000 $1,000 Simple IRA $15,000 $1,000
If the contract owner elects the Reduced Purchase Payment Option, minimum initial and subsequent purchase payments will be reduced accordingly. If the contract owner elects the Extra Value Option, amounts credited to the contract in excess of total purchase payments may not be used to meet the minimum initial and subsequent purchase payment requirements. Guaranteed Term Options Guaranteed Term Options are separate investment options under the contract. The minimum amount that may be allocated to a Guaranteed Term Option is $1,000. CHARGES AND EXPENSES Nationwide deducts a Mortality and Expense Risk Charge equal to an annual rate of 0.95% of the daily net assets of the variable account. Nationwide assesses this charge in return for bearing certain mortality and expense risks, and for administrative expenses. Nationwide does not deduct a sales charge from purchase payments upon deposit into the contract. However, Nationwide may deduct a CDSC if any amount is withdrawn from the contract. This CDSC reimburses Nationwide for sales expenses. The amount of the CDSC will not exceed 7% of purchase payments surrendered. There are several CDSC options that are available to contract owners, each with different characteristics and costs. The charge associated with each option is charged as a percentage of the daily net assets of the variable account. They are as follows:
OPTION CONTRACT CHARGE TYPE - ---------------------------- ------------- ------------ Five Year CDSC Option All* 0.15% Additional Withdrawal All 0.10% Without Charge and Disability Waiver 10 Year and Disability Tax 0.05% Waiver Sheltered Annuities Hardship Waiver Tax 0.15% Sheltered Annuities
*In the State of New York, this option is available only for contracts issued as Roth IRAs and is not available when the Extra Value Option is elected. 18 21 If the contract owner elects the Reduced Purchase Payment Option, Nationwide will reduce the minimum initial purchase payment to $1,000 and subsequent purchase payments to $25. In return for the reduction, Nationwide will deduct an additional charge of 0.25% of the daily net assets of the variable account. This option is not available for contracts issued as Investment-only contracts. Two optional death benefits are available under the contract. Nationwide will deduct 0.05% if the One-Year Step Up Death Benefit is elected, or 0.10% if the 5% Enhanced Death Benefit is elected. A Guaranteed Minimum Income Benefit option is available under the contract. If the contract owner elects the Guaranteed Minimum Income Benefit option, Nationwide will deduct an additional charge of an annualized rate of 0.45% of the daily net assets of the variable account (see "Guaranteed Minimum Income Benefit"). An Extra Value Option is available under the contract. The Extra Value Option is only available at the time of application. If the contract owner elects the Extra Value Option on the application, Nationwide will apply a credit of 3% of the purchase payment(s) made during the first 12 months the contract is in force. In exchange, Nationwide will deduct an additional charge at an annualized rate of 0.45% of the daily net assets of the variable account. Nationwide will discontinue deducting this charge seven years from the date the contract was issued. Once the Extra Value Option is elected, it may not be revoked (see "Extra Value Option"). Upon annuitization of the contract, any amounts assessed for any rider options elected will be waived and only those charges applicable to the base contract will be assessed. ANNUITY PAYMENTS Annuity payments begin on the annuitization date. The payments will be based on the annuity payment option chosen at the time of application (see "Annuity Payment Options"). TAXATION How a contract is taxed depends on the type of contract issued and the purpose for which the contract is purchased. Nationwide will charge against the contract any premium taxes levied by any governmental authority (see "Federal Tax Considerations" and "Premium Taxes"). TEN DAY FREE LOOK Contract owners may return the contract for any reason within ten days of receipt and Nationwide will refund the contract value or other amounts required by law (see "Right to Revoke"). FINANCIAL STATEMENTS Financial statements for the variable account and Nationwide are located in the Statement of Additional Information. A current Statement of Additional Information may be obtained, without charge, by contacting Nationwide's home office at the telephone number listed on page 3 of this prospectus. CONDENSED FINANCIAL INFORMATION The value of an accumulation unit is determined on the basis of changes in the per share value of the underlying mutual funds and the assessment of a variable account charge which may vary from contract to contract (for more information on the calculation of accumulation unit values, see "Determining Variable Account Value - Valuing an Accumulation Unit"). Please refer to Appendix B for information regarding each class of accumulation units. NATIONWIDE LIFE INSURANCE COMPANY Nationwide is a stock life insurance company organized under Ohio law in March, 1929 with its home office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide is a provider of life insurance, annuities and retirement products. It is admitted to do business in all states, the District of Columbia and Puerto Rico. 19 22 NATIONWIDE INVESTMENT SERVICES CORPORATION The contracts are distributed by the general distributor, Nationwide Investment Services Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio 43215. (For contracts issued in the State of Michigan, all references to NISC shall mean Nationwide Investment Svcs. Corporation.) NISC is a wholly owned subsidiary of Nationwide. TYPES OF CONTRACTS The contracts described in this prospectus are classified according to the tax treatment they are subject to under the Internal Revenue Code. The following is a general description of the various types of contracts. Eligibility requirements, tax benefits (if any), limitations, and other features of the contracts will differ depending on the type of contract. NON-QUALIFIED ANNUITY CONTRACTS A Non-Qualified Annuity Contract is a contract that does not qualify for certain tax benefits under the Internal Revenue Code, and which is not an IRA, a Roth IRA, a SEP IRA, a Simple IRA, or a Tax Sheltered Annuity. Upon the death of the owner of a Non-Qualified Annuity Contract, mandatory distribution requirements are imposed to ensure distribution of the entire balance in the contract within a required statutory period. Non-Qualified Annuity contracts that are owned by natural persons allow for the deferral of taxation on the income earned in the contract until it is distributed or deemed to be distributed. INDIVIDUAL RETIREMENT ANNUITIES (IRAS) Individual Retirement Annuities are contracts that are issued by insurance companies and satisfy the following requirements: - - the contract is not transferable by the owner; - - the premiums are not fixed; - - the annual premium cannot exceed $2,000 (although rollovers of greater amounts from qualified plans, tax-sheltered annuities and other IRAs can be received); - - certain minimum distribution requirements must be satisfied after the owner attains the age of 70-1/2; - - the entire interest of the owner in the contract is nonforfeitable; and - - after the death of the owner, additional distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the statutory period of time. Depending on the circumstance of the owner, all or a portion of the contributions made to the account may be deducted for federal income tax purposes. Failure to make the mandatory distributions can result in an additional penalty tax of 50% of the excess of the amount required to be distributed over the amount that was actually distributed. IRAs may receive rollover contributions from other Individual Retirement Accounts and Individual Retirement Annuities, from Tax Sheltered Annuities, and from qualified retirement plans, including 401(k) plans. For further details regarding IRAs, please refer to the disclosure statement provided when the IRA was established. SIMPLIFIED EMPLOYEE PENSION IRAS (SEP IRAS) A SEP IRA is a written plan established by an employer for the benefit of employees which permits the employer to make contributions to an IRA established for the benefit of each employee. An employee may make deductible contributions to a SEP IRA in the same way, and with the same restrictions and limitations, as for an IRA. In addition, the employer may make contributions to the SEP IRA, subject to dollar and percentage limitations imposed by 20 23 both the Internal Revenue Code and the written plan. A SEP IRA plan established by an employer must satisfy certain requirements: - - minimum participation rules; - - top-heavy contribution rules; - - nondiscriminatory allocation rules; and - - requirements regarding a written allocation formula. In addition, the plan cannot restrict withdrawals of non-elective contributions, and must restrict withdrawals of elective contributions before March 15th of the following year. SIMPLE IRAS A Simple IRA is an individual retirement annuity which is funded exclusively by a qualified salary reduction arrangement and satisfies the following: - - vesting requirements, - - participation requirements; and - - administrative requirements. The funds contributed to a Simple IRA cannot be commingled with funds in IRAs or SEP IRAs. A Simple IRA cannot receive rollover distributions except from another Simple IRA. ROTH IRAS Roth IRA contracts are contracts that are issued by insurance companies and satisfy the following requirements: - - the contract is not transferable by the owner; - - the premiums are not fixed; - - the annual premium cannot exceed $2,000 (although rollovers of greater amounts from other Roth IRAs and IRAs can be received); - - the entire interest of the owner in the contract is nonforfeitable; and - - after the death of the owner, certain distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the statutory period of time. A Roth IRA can receive a rollover from an IRA; however, the amount rolled over from the IRA to the Roth IRA is required to be included in the owner's federal gross income at the time of the rollover, and will be subject to federal income tax. There are income limitations on eligibility to participate in a Roth IRA and additional income limitations for eligibility to roll over amounts from an IRA to a Roth IRA. For further details regarding Roth IRAs, please refer to the disclosure statement provided when the Roth IRA was established. TAX SHELTERED ANNUITIES Certain tax-exempt organizations (described in section 501(c)(3) of the Internal Revenue Code) and public school systems may establish a plan under which annuity contracts can be purchased for their employees. These annuity contracts are often referred to as Tax Sheltered Annuities. Purchase payments made to Tax Sheltered Annuities are excludible from the income of the employee, up to statutory maximum amounts. These amounts should be set forth in the plan adopted by the employer. The owner's interest in the contract is nonforfeitable (except for failure to pay premiums) and cannot be transferred. Certain minimum distribution requirements must be satisfied after the owner attains the age of 70-1/2, and after the death of the owner. Additional distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the required period of time. QUALIFIED PLANS Contracts that are owned by Qualified Plans are not intended to confer tax benefits on the beneficiaries of the plan; they are used as investment vehicles for the plan. The income tax consequences to the beneficiary of a Qualified Plan are controlled by the operation of the plan, not by operation of the assets in which the plan invests. 21 24 Beneficiaries of Qualified Plans should contact their employer and/or trustee of the plan to obtain and review the plan, trust, summary plan description and other documents for the tax and other consequences of being a participant in a qualified plan. INVESTING IN THE CONTRACT THE VARIABLE ACCOUNT AND UNDERLYING MUTUAL FUNDS Nationwide Variable Account-9 is a variable account that invests in the underlying mutual funds listed in Appendix A. Nationwide established the variable account on May 22, 1997, pursuant to Ohio law. Although the variable account is registered with the SEC as a unit investment trust pursuant to the Investment Company Act of 1940 ("1940 Act"), the SEC does not supervise the management of Nationwide or the variable account. Income, gains, and losses credited to, or charged against, the variable account reflect the variable account's own investment experience and not the investment experience of Nationwide's other assets. The variable account's assets are held separately from Nationwide's assets and are not chargeable with liabilities incurred in any other business of Nationwide. Nationwide is obligated to pay all amounts promised to contract owners under the contracts. The variable account is divided into sub-accounts, each corresponding to a single underlying mutual fund. Nationwide uses the assets of each sub-account to buy shares of the underlying mutual funds based on contract owner instructions. There are two sub-accounts for each underlying mutual fund. One sub-account contains shares attributable to accumulation units under Non-Qualified Contracts. The other contains shares attributable to accumulation units under Investment-only Contracts, Individual Retirement Annuities, Simple IRAs, SEP IRAs, Roth IRAs, and Tax Sheltered Annuities. Each underlying mutual fund's prospectus contains more detailed information about that fund. Prospectuses for the underlying mutual funds should be read in conjunction with this prospectus. Underlying mutual funds in the variable account are NOT publicly traded mutual funds. They are only 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. The investment advisers of the underlying mutual funds may manage publicly traded mutual funds with similar names and investment objectives. However, the underlying mutual funds are NOT directly related to any publicly traded mutual fund. Contract owners should not compare the performance of a publicly traded fund with the performance of underlying mutual funds participating in the variable account. The performance of the underlying mutual funds could differ substantially from that of any publicly traded funds. Voting Rights Contract owners who have allocated assets to the underlying mutual funds are entitled to certain voting rights. Nationwide will vote contract owner shares at special shareholder meetings based on contract owner instructions. However, if the law changes and Nationwide is allowed to vote in its own right, it may elect to do so. Contract owners with voting interests in an underlying mutual fund will be notified of issues requiring the shareholders' vote as soon as possible before the shareholder meeting. Notification will contain proxy materials and a form with which to give Nationwide voting instructions. Nationwide will vote shares for which no instructions are received in the same proportion as those that are received. The number of shares which a contract owner may vote is determined by dividing the cash value of the amount they have allocated to an underlying mutual fund by the net asset value of that underlying mutual fund. Nationwide will 22 25 designate a date for this determination not more than 90 days before the shareholder meeting. Material Conflicts The underlying mutual funds may be offered through separate accounts of other insurance companies, as well as through other separate accounts of Nationwide. Nationwide does not anticipate any disadvantages to this. However, it is possible that a conflict may arise between the interests of the variable account and one or more of the other separate accounts in which these underlying mutual funds participate. Material conflicts may occur due to a change in law affecting the operations of variable life insurance policies and variable annuity contracts, or differences in the voting instructions of the contract owners and those of other companies. If a material conflict occurs, Nationwide will take whatever steps are necessary to protect contract owners and variable annuity payees, including withdrawal of the variable account from participation in the underlying mutual fund(s) involved in the conflict. Substitution of Securities Nationwide may substitute, eliminate, or combine shares of another underlying mutual fund for shares already purchased or to be purchased in the future if either of the following occurs: 1) shares of a current underlying mutual fund are no longer available for investment; or 2) further investment in an underlying mutual fund is inappropriate. No substitution, elimination, or combination of shares may take place without the prior approval of the SEC. GUARANTEED TERM OPTIONS Guaranteed Term Options are separate investment options under the contract. A Guaranteed Term Option prospectus should be read along with this prospectus. The minimum amount that may be allocated to a Guaranteed Term Option is $1,000. Allocations to the Guaranteed Term Options are not subject to variable account charges. Guaranteed Term Options provide a guaranteed rate of interest over four different maturity durations: three (3), five (5), seven (7) or ten (10) years. Note: The guaranteed term may last for up to 3 months beyond the 3, 5, 7, or 10 year period since every guaranteed term will end on the final day of a calendar quarter. For the duration selected, Nationwide will declare a guaranteed interest rate. For contract owners that elect the Extra Value Option, allocations made to the Guaranteed Term Options for the first seven contract years will be credited a guaranteed interest rate of 0.45% less than the guaranteed interest rate that applies to the Guaranteed Term Options if the Extra Value Option is not elected. That rate will be credited to amounts allocated to the Guaranteed Term Option UNLESS a distribution is taken before the maturity date. If a distribution occurs before the maturity date, the amount distributed will be subject to a market value adjustment. A market value adjustment can increase or decrease the amount distributed depending on current interest rate fluctuations. No market value adjustment will be applied if Guaranteed Term Option allocations are held to maturity. Because a market value adjustment can affect the value of a distribution, its effects should be carefully considered before surrendering or transferring from Guaranteed Term Options. When actual interest rates are higher than the guaranteed rate, a market value adjustment would reduce the value of the amount distributed. When actual interest rates are lower than the guaranteed rate, the value of the amount distributed would increase. Guaranteed Term Options are available only during the accumulation phase of a contract. They are not available after the annuitization date. In addition, Guaranteed Term Options are not available for use with asset rebalancing, Dollar Cost Averaging, or systematic withdrawals. 23 26 Guaranteed Term Options may not be available in every state. THE FIXED ACCOUNT The fixed account is an investment option that is funded by assets of Nationwide's general account. The general account contains all of Nationwide's assets other than those in other Nationwide separate accounts. It is used to support Nationwide's annuity and insurance obligations and may contain compensation for mortality and expense risks. The general account is not subject to the same laws as the variable account and the SEC has not reviewed material in this prospectus relating to the fixed account. However, information relating to the fixed account is subject to federal securities laws relating to accuracy and completeness of prospectus disclosure. Purchase payments will be allocated to the fixed account by election of the contract owner. The investment income earned by the fixed account will be allocated to the contracts at varying guaranteed interest rate(s) depending on the following categories of fixed account allocations: - - New Money Rate - The rate credited on the fixed account allocation when the contract is purchased or when subsequent purchase payments are made. Subsequent purchase payments may receive different New Money Rates than the rate when the contract was issued, since the New Money Rate is subject to change based on market conditions. - - Variable Account to Fixed Rate - Allocations transferred from any of the underlying investment options in the variable account to the fixed account may receive a different rate. The rate may be lower than the New Money Rate. There may be limits on the amount and frequency of movements from the variable account to the fixed account. - - Renewal Rate - The rate available for maturing fixed account allocations which are entering a new guarantee period. The contract owner will be notified of this rate in a letter issued with the quarterly statements when any of the money in the contract owner's fixed account matures. At that time, the contract owner will have an opportunity to leave the money in the fixed account and receive the Renewal Rate or the contract owner can move the money to any of the other underlying mutual fund options. - - Dollar Cost Averaging Rate - From time to time, Nationwide may offer a more favorable rate for an initial purchase payment into a new contract when used in conjunction with a Dollar Cost Averaging program. For contract owners that elect the Extra Value Option, payments or transfers made to the fixed account will, for the first seven contract years, be credited a guaranteed interest rate of 0.45% less than the crediting rate that applies to the fixed account if the Extra Value Option is not elected. Nationwide guarantees, however, that the rate will not be less than 3.0% for any given year. All of these rates are subject to change on a daily basis; however, once applied to the fixed account, the interest rates are guaranteed until the end of the calendar quarter during which the 12 month anniversary of the fixed account allocation occurs. Credited interest rates are annualized rates - the effective yield of interest over a one year period. Interest is credited to each contract on a daily basis. As a result, the credited interest rate is compounded daily to achieve the stated effective yield. The guaranteed rate for any purchase payment will be effective for not less than twelve months. Nationwide guarantees that the rate will not be less than 3.0% per year. Any interest in excess of 3.0% will be credited to fixed account allocations at Nationwide's sole discretion. The contract owner assumes the risk that interest credited to fixed account allocations may not exceed the minimum guarantee of 3.0% for any given year. 24 27 Nationwide guarantees that the fixed account contract value will not be less than the amount of the purchase payments allocated to the fixed account, plus interest credited as described above, less any surrenders and any applicable charges including CDSC. STANDARD CHARGES AND DEDUCTIONS MORTALITY AND EXPENSE RISK CHARGE Nationwide deducts a Mortality and Expense Risk Charge from the variable account. This amount is computed on a daily basis and is equal to an annual rate of 0.95% of the daily net assets of the variable account. The Mortality Risk Charge compensates Nationwide for guaranteeing the annuity purchase rates of the contracts. This guarantee ensures that the annuity purchase rates will not change regardless of the death rates of annuity payees or the general population. The Mortality Risk Charge also compensates Nationwide for risks assumed in connection with the standard death benefit, but only partially compensates Nationwide in connection with the two optional death benefits, for which there are separate charges. The Expense Risk Charge compensates Nationwide for guaranteeing that charges will not increase regardless of actual expenses. If the Mortality and Expense Risk Charge is insufficient to cover actual expenses, the loss is borne by Nationwide. CONTINGENT DEFERRED SALES CHARGE No sales charge deduction is made from the purchase payments when amounts are deposited into the contracts. However, if any part of the contract is surrendered, Nationwide will deduct a CDSC. The CDSC will not exceed 7% of purchase payments surrendered. The CDSC is calculated by multiplying the applicable CDSC percentage (noted below) by the amount of purchase payments surrendered. For purposes of calculating the CDSC, surrenders are considered to come first from the oldest purchase payment made to the contract, then the next oldest purchase payment, and so forth. Earnings are not subject to the CDSC, but may not be distributed prior to the distribution of all purchase payments. (For tax purposes, a surrender is usually treated as a withdrawal of earnings first.) The CDSC applies as follows:
Number of Years from Date CDSC of Purchase Payment Percentage ----------------------------------------------- 0 7% 1 7% 2 6% 3 5% 4 4% 5 3% 6 2% 7 0%
The CDSC is used to cover sales expenses, including commissions (maximum of 6% of purchase payments), production of sales material, and other promotional expenses. If expenses are greater than the CDSC, the shortfall will be made up from Nationwide's general assets, which may indirectly include portions of the variable account charges, since Nationwide may generate a profit from these charges. All or a portion of any withdrawal may be subject to federal income taxes. Contract owners taking withdrawals before age 59-1/2 may be subject to a 10% penalty tax. Waiver of Contingent Deferred Sales Charge Each contract year, the contract owner may withdraw without a CDSC the greater of: (a) 10% of all purchase payments; or (b) any amount withdrawn to meet minimum distribution requirements under the Internal Revenue Code. This CDSC-free privilege is non-cumulative. Free amounts not taken during any given contract year cannot be taken as free amounts in a subsequent contract year. In addition, no CDSC will be deducted: (1) upon the annuitization of contracts which have been in force for at least two years; 25 28 (2) upon payment of a death benefit; or (3) from any values which have been held under a contract for at least 7 years. No CDSC applies to transfers among sub-accounts or between or among the Guaranteed Term Options, the fixed account, or the variable account. Nationwide may waive the CDSC if a contract described in this prospectus is exchanged for another Nationwide contract (or a contract of any of its affiliated insurance companies). A CDSC may apply to the contract received in the exchange. A contract held by a Charitable Remainder Trust may withdraw CDSC-free the greater of (a) or (b), where: (a) is the amount which would otherwise be available for withdrawal without a CDSC; and (b) is the difference between the total purchase payments made to the contract as of the date of the withdrawal (reduced by previous withdrawals) and the contract value at the close of the day prior to the date of the withdrawal. The CDSC will not be eliminated if to do so would be unfairly discriminatory or prohibited by state law. PREMIUM TAXES Nationwide will charge against the contract value any premium taxes levied by a state or other government entity. Premium tax rates currently range from 0% to 5.0%. This range is subject to change. The method used to assess premium tax will be determined by Nationwide at its sole discretion in compliance with state law. If applicable, Nationwide will deduct premium taxes from the contract either at: (1) the time the contract is surrendered; (2) annuitization; or (3) such earlier date as Nationwide becomes subject to premium taxes. Premium taxes may be deducted from death benefit proceeds. OPTIONAL CONTRACT BENEFITS, CHARGES AND DEDUCTIONS REDUCED PURCHASE PAYMENT OPTION If the contract owner chooses the Reduced Purchase Payment Option, Nationwide will deduct an additional charge equal to an annualized rate of 0.25% of the daily net assets of the variable account. In return, the minimum initial purchase payment for that contract will be $1,000 and minimum subsequent purchase payment will be $25. This option is not available for Investment-only Contracts. The contract owner may elect to terminate this option if, throughout a period of at least two years and continuing until such election, the total of all purchase payments, less surrenders and withdrawals, is maintained at $25,000 or more. This election must be submitted in writing on a form provided by Nationwide. Termination of the rider will occur as of the date on the election form, and the charge for this rider will no longer be assessed. Subsequent purchase payments, if any, will be subject to the terms of the contract and must be at least $1,000. CDSC OPTIONS AND CHARGES Five Year CDSC Option For an additional charge at an annualized rate of 0.15% of the daily net assets of the variable account, the contract owner may choose the Five Year CDSC Option. Under this option, CDSC will not exceed 7% of purchase payments surrendered. The Five Year CDSC Option applies as follows:
Number of Years from Date of CDSC Purchase Payment Percentage --------------------------------------------- 0 7% 1 7% 2 6% 3 4% 4 2% 5 0%
For contracts issued in the State of New York, this option is available only for contracts issued 26 29 as Roth IRAs and is not available when the Extra Value Option is elected. Additional Withdrawal without Charge and Disability Waiver Each contract has a standard 10% CDSC-free withdrawal privilege each year. For an additional charge at an annualized rate of 0.10% of the daily net assets of the variable account, the contract owner can withdraw an additional 5% of total purchase payments each year without incurring a CDSC. This would allow the contract owner to withdraw a total of 15% of the total of all purchase payments each year free of CDSC. Like the standard 10% CDSC-free privilege, this additional withdrawal benefit is non-cumulative. This option also contains a disability waiver. Nationwide will waive CDSC if a contract owner (or annuitant if the contract is owned by a non-natural owner) is disabled after the contract is issued but before reaching age 65. If this waiver becomes effective due to disability, no additional purchase payments may be made to the contract. Additional CDSC Waiver Options for Tax Sheltered Annuities 10 Year and Disability Waiver For an additional charge at an annualized rate of 0.05% of the daily net assets of the variable account, the contract owner of a Tax Sheltered Annuity can purchase the 10 Year and Disability Waiver. Under this option, Nationwide will waive CDSC if two conditions are met: (1) the contract owner has been the owner of the contract for 10 years; and (2) the contract owner has made regular payroll deferrals during the entire contract year for at least 5 of those 10 years. This option also contains a disability waiver. Nationwide will waive CDSC if the contract owner is disabled after the contract is issued but before reaching age 65. If this waiver becomes effective due to disability, no additional purchase payments may be made to the contract. Hardship Waiver For an additional charge at an annualized rate of 0.15% of the daily net assets of the variable account, the contract owner of a Tax Sheltered Annuity can purchase the Hardship Waiver. Under this option, Nationwide will waive CDSC if the contract owner experiences a hardship (as defined for purposes of Internal Revenue Code Section (401(k)). The contract owner may be required to provide proof of hardship. If this waiver becomes effective, no additional purchase payments may be made to the contract. DEATH BENEFIT OPTIONS If the contract owner chooses an optional death benefit, Nationwide will deduct a charge equal to an annualized rate of either 0.05% (for the One-Year Step Up Death Benefit) or 0.10% (for the 5% Enhanced Death Benefit) of the daily net assets of the variable account, depending upon which option was chosen. Nationwide may lower either of these charges at any time without notifying contract owners. Further information about these benefits can be found in the "Death Benefit Payment" provision. All of the following death benefit options may not be available in every state. One-Year Step Up Death Benefit If the annuitant dies before the annuitization date, the death benefit will be the greatest of: (1) the contract value; (2) the total of all purchase payments, less an adjustment for amounts surrendered; or (3) the highest contract value on any contract anniversary before the annuitant's 86th birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that contract anniversary. The adjustment for amounts surrendered will reduce items (2) and (3) above in the same 27 30 proportion that the contract value was reduced on the date(s) of the partial surrender(s). 5% Enhanced Death Benefit If the annuitant dies before the annuitization date, the death benefit will be the greater of: (1) the contract value; or (2) the total of all purchase payments, less any amounts surrendered, accumulated at 5% simple interest from the date of each purchase payment or surrender to the most recent contract anniversary prior to the annuitant's 86th birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received since that contract anniversary. Long Term Care Facility Provisions If the contract owner chooses an optional death benefit, no CDSC will be charged if: - - The third contract anniversary has passed; and - - The contract owner has been confined to a long-term care facility or hospital for a continuous 90-day period that began after the contract issue date. Additionally, if the contract owner chooses an optional death benefit, no CDSC will be charged if: - - The contract owner has been diagnosed by a physician to have a terminal illness; and - - Nationwide receives and records a letter from that physician indicating such diagnosis. Written notice and proof of terminal illness or confinement for 90 days in a hospital or long term care facility must be received in a form satisfactory to Nationwide and recorded at Nationwide's home offer prior to waiver of the CDSC. For those contracts that have a non-natural person as contract owner as an agent for a natural person, the annuitant may exercise the rights of the contract owner for the purposes described in this provision. If the non-natural contract owner does NOT own the contract as an agent for a natural person (e.g., the contract owner is a corporation or a trust for the benefit of an entity), the annuitant may NOT exercise the rights described in this provision. GUARANTEED MINIMUM INCOME BENEFIT OPTION For an additional charge at an annualized rate of 0.45% of the daily net assets of the variable account, the contract owner can purchase a Guaranteed Minimum Income Benefit option at the time of application. The Guaranteed Minimum Income Benefit option provides for a minimum guaranteed value that may replace the contract value as the amount to be annuitized under certain circumstances. A Guaranteed Minimum Income Benefit may afford protection against unfavorable investment performance. EXTRA VALUE OPTION THE EXTRA VALUE OPTION MAY NOT BE AVAILABLE IN ALL STATES. APPLICANTS SHOULD BE AWARE OF THE FOLLOWING PRIOR TO ELECTING THE EXTRA VALUE OPTION: 1. ELECTING THE EXTRA VALUE OPTION WILL BE BENEFICIAL FOR CONTRACT OWNERS ONLY IF THE INVESTMENT PERFORMANCE OF THE UNDERLYING MUTUAL FUNDS, AND RATE OF RETURN IN THE FIXED ACCOUNT AND GUARANTEED TERM OPTIONS, IS GREAT ENOUGH TO COMPENSATE FOR THE REDUCTION IN CONTRACT VALUE DUE TO THE 0.45% CHARGE; 2. NATIONWIDE MAY MAKE A PROFIT FROM THE CHARGE ASSESSED BY THE EXTRA VALUE OPTION; 3. BECAUSE THE 0.45% CHARGE ASSOCIATED WITH THE EXTRA VALUE OPTION WILL BE ASSESSED AGAINST THE ENTIRE VARIABLE ACCOUNT VALUE FOR THE FIRST SEVEN (7) CONTRACT YEARS, CONTRACT OWNERS WHO ANTICIPATE MAKING ADDITIONAL PURCHASE PAYMENTS AFTER THE FIRST CONTACT YEAR SHOULD CAREFULLY EXAMINE THE EXTRA VALUE OPTION AND CONSULT THEIR FINANCIAL ADVISER REGARDING ITS DESIRABILITY; 4. ONCE THE EXTRA VALUE OPTION IS ELECTED, IT MAY NOT BE REVOKED; AND 5. NATIONWIDE MAY RECAPTURE ALL OR PART OF THE AMOUNT CREDITED IN THE EVENT OF EARLY SURRENDERS, INCLUDING REVOCATION OF THE CONTRACT DURING THE CONTRACTUAL FREE-LOOK PERIOD. 28 31 For an additional charge at an annualized rate of 0.45% of the daily net assets of the variable account, the contract owner can purchase an Extra Value Option at the time of application. Nationwide may reduce this charge. In exchange, Nationwide will apply a credit of 3% of the purchase payment(s) made during the first 12 months the contract is in force. This credit is funded from Nationwide's general account. The amount credited will be allocated among the sub-accounts, the fixed account, and/or the Guaranteed Term Options in the same proportion that the purchase payment is allocated to the contract. The option of electing the Extra Value Option allows prospective contract owners to choose between two different variable account charge structures for the first seven years of the contract. If the credit is elected and no additional contract options are elected, the total variable account charges under the contract will be an annualized rate of 1.40% of the daily net assets of the variable account for the first seven years of the contract. If the Extra Value Option is not elected, total variable account charges will be an annualized rate of 0.95% (assuming no other contract options are elected) of the daily net assets of the variable account for the first seven years of the contract and thereafter. Under these circumstances, the decision to elect or decline the Extra Value Option will depend primarily on whether the prospective contract owner believes it is more advantageous to have: (a) a 1.40% variable account charge for the first seven years of the contract, plus the Extra Value Option credit; or (b) a 0.95% variable account charge for the first seven years of the contract, without the Extra Value Option credit. The following table demonstrates hypothetical rates of return for contracts with the Extra Value Option and no other optional benefits (total variable account asset charges of 1.40%) and contracts with no additional contract options whatsoever (total variable account asset charges of 0.95%). The figures are based upon: (a) a $100,000 initial purchase payment with no additional purchase payments; (b) the deduction of variable account charges of an annualized rate of 0.95% (base contract) and 1.40% (contract with only the Extra Value Option) of the daily net asset value; and (c) an assumed annual rate of return before charges of 7.75% for all years for a period of 10 years. 7.75% RATE OF RETURN
Contract Year Base Contract Contract With Extra (0.95% total asset Value Option (1.40% charges) total asset charges) - ------------------------------------------------------------ 1 $106,800 $109,541 2 $114,062 $116,496 3 $121,819 $123,894 4 $130,102 $131,761 5 $138,949 $140,128 6 $148,398 $149,026 7 $158,489 $158,489 8 $169,266 $169,266 9 $180,776 $180,776 10 $193,069 $193,069
Generally, the higher the rate of return, the more advantageous the Extra Value Option becomes and vice versa. The table above assumes no additional purchase payments are made to the contract after the first contract anniversary. If subsequent purchase payments are made to the contract after the first contract anniversary (assuming a rate of return of 7.75%) the number of contract years needed to "break-even" increases in direct correlation with the amount of subsequent purchase payments made to the contract after the first contract anniversary. 29 32 Amounts credited to the contract in connection with the Extra Value Option may be recaptured if: (a) the contract owner elects to surrender the contract pursuant to the contractual free-look provisions; or (b) withdrawals that are subject to a CDSC are taken before the end of the seventh contract year. If the contract is surrendered pursuant to the contractual free-look, Nationwide may recapture the full credited amount if the contract value, at the time of the request to surrender, is equal to or greater than the purchase payments made to the contract. In such a situation, the contract owner is entitled to keep any earnings. If, however, the contract value is less than the purchase payments made to the contract, Nationwide will bear the loss. After the free look period and before the seventh contract anniversary, any amounts withdrawn from the contract that are subject to a CDSC subjects a part of the amount credited to recapture. For example, if a contract owner withdraws 13% of purchase payments made within the first contract year, 3% of the amount credited will be recaptured by Nationwide, since the contract owner may withdraw only 10% of purchase payments without a CDSC. This means that the percentage of the amount credited to be recaptured will be the determined by the percentage of total purchase payments reflected in the amount surrendered that is subject to CDSC. The amount recaptured will be taken from the sub-accounts, the fixed account and/or the Guaranteed Term Options in the same proportion as allocated by the contract owner at the time of the withdrawal. For contracts issued in the State of New York, after the free look period and before the seventh contract anniversary, amounts credited under the contract may be recaptured whenever withdrawals are made that are subject to a CDSC in accordance with the following:
(Extra Value Amount) Percentage Contract Years of First Year Purchase Payments - ----------------------- ------------------------------- 1 and 2 3% 3,4 and 5 2% 6 and 7 1% After year 7 0%
The percentage of the amount credited to be recaptured will be determined by the percentage of total purchase payments reflected in the amount surrendered that is subject to CDSC. The amount recaptured will be taken from the sub-accounts and the fixed account in the same proportion as allocated by the contract owner at the same time of the withdrawal. NO AMOUNT CREDITED WILL BE SUBJECT TO RECAPTURE IF THE WITHDRAWAL IS NOT SUBJECT TO A CDSC OR IF A DISTRIBUTION IS TAKEN AS A RESULT OF DEATH, ANNUITIZATION, OR TO MEET MINIMUM DISTRIBUTION REQUIREMENTS UNDER THE INTERNAL REVENUE CODE. IN ADDITION, NO RECAPTURE WILL TAKE PLACE AFTER THE SEVENTH CONTRACT YEAR. After the end of the first seven contract years, the 0.45% charge for the Extra Value Option will no longer be assessed and the amount credited will be fully vested. Nationwide intends to administer the removal of the 0.45% rider option charge by decreasing the number of units and increasing the unit value of the sub-accounts in which the contract owner was invested at the end of the seventh contract year. The elimination of the 0.45% charge and the adjustment in the number of units and unit values will not affect contract owners' contract values. Upon annuitization of the contract, any amounts assessed for any rider options elected will be waived and only those charges applicable to the base contract will be assessed. 30 33 CONTRACT OWNERSHIP The contract owner has all rights under the contract. Purchasers who name someone other than themselves as the contract owner will have no rights under the contract. Contract owners of Non-Qualified Contracts may name a new contract owner at any time before the annuitization date. Any change of contract owner automatically revokes any prior contract owner designation. Changes in contract ownership may result in federal income taxation and may be subject to state and federal gift taxes. A change in contract ownership must be submitted in writing and recorded at Nationwide's home office. Once recorded, the change will be effective as of the date signed. However, the change will not affect any payments made or actions taken by Nationwide before it was recorded. The contract owner may also request a change in the annuitant, contingent annuitant, contingent owner, beneficiary, or contingent beneficiary before the annuitization date. These changes must be: - - on a Nationwide form; - - signed by the contract owner; and - - received at Nationwide's home office before the annuitization date. Nationwide must review and approve any change requests. If the contract owner is not a natural person and there is a change of the annuitant, distributions will be made as if the contract owner died at the time of the change. On the annuitization date, the annuitant will become the contract owner, unless the contract owner is a Charitable Remainder Trust. JOINT OWNERSHIP Joint owners each own an undivided interest in the contract. Contract owners can name a joint owner at any time before annuitization subject to the following conditions: - - joint owners can only be named for Non-Qualified Contracts; - - joint owners must be spouses at the time joint ownership is requested, unless state law requires Nationwide to allow non-spousal joint owners; - - the exercise of any ownership right in the contract will generally require a written request signed by both joint owners; - - an election in writing signed by both contract owners must be made to authorize Nationwide to allow the exercise of ownership rights independently by either joint owner; and - - Nationwide will not be liable for any loss, liability, cost, or expense for acting in accordance with the instructions of either joint owner. CONTINGENT OWNERSHIP The contingent owner is entitled to certain benefits under the contract if a contract owner who is NOT the annuitant dies before the annuitization date, and there is no surviving joint owner. The contract owner may name or change a contingent owner at any time before the annuitization date. To change the contingent owner, a written request must be submitted to Nationwide. Once Nationwide has recorded the change, it will be effective as of the date it was signed, whether or not the contract owner was living at the time it was recorded. The change will not affect any action taken by Nationwide before the change was recorded. ANNUITANT The annuitant is the person who will receive annuity payments and upon whose continuation of life any annuity payment involving life contingencies depends. This person must be age 85 or younger at the time of contract issuance (age 83 or younger if electing a Guaranteed Minimum Income Benefit option), unless Nationwide approves a request for an annuitant of greater age. The annuitant may be changed 31 34 before the annuitization date with Nationwide's consent. BENEFICIARY AND CONTINGENT BENEFICIARY The beneficiary is the person who is entitled to the death benefit if the annuitant dies before the annuitization date and there is no joint owner. The contract owner can name more than one beneficiary. Multiple beneficiaries will share the death benefit equally, unless otherwise specified. The contract owner may change the beneficiary or contingent beneficiary during the annuitant's lifetime by submitting a written request to Nationwide. Once recorded, the change will be effective as of the date it was signed, whether or not the annuitant was living at the time it was recorded. The change will not affect any action taken by Nationwide before the change was recorded. OPERATION OF THE CONTRACT MINIMUM INITIAL AND SUBSEQUENT PURCHASE PAYMENTS
MINIMUM INITIAL MINIMUM CONTRACT PURCHASE PAYMENT SUBSEQUENT TYPE PAYMENTS - -------------------- ----------------- ------------------ Investment-only $15,000 $1,000 Non-Qualified $15,000 $1,000 IRA $15,000 $1,000 Roth IRA $15,000 $1,000 Tax Sheltered $15,000 $1,000 Annuity Charitable $15,000 $1,000 Remainder Trust SEP IRA $15,000 $1,000 Simple IRA $15,000 $1,000
Subsequent purchase payments are not permitted for contracts issued in the State of Oregon and may not be permitted in other states under certain circumstances. If the contract owner elects the Reduced Purchase Payment Option, minimum initial and subsequent purchase payments will be reduced accordingly. If the contract owner elects the Extra Value Option, amounts credited to the contract may not be used to meet the minimum initial and subsequent purchase payment requirements. Guaranteed Term Options Guaranteed Term Options are separate investment options under the contract. The minimum amount that may be allocated to a Guaranteed Term Option is $1,000. PRICING Initial purchase payments allocated to sub-accounts will be priced at the accumulation unit value determined no later than 2 business days after receipt of an order to purchase if the application and all necessary information are complete. If the application is not complete, Nationwide may retain a purchase payment for up to 5 business days while attempting to complete it. If the application is not completed within 5 business days, the prospective purchaser will be informed of the reason for the delay. The purchase payment will be returned unless the prospective purchaser specifically allows Nationwide to hold the purchase payment until the application is completed. Subsequent purchase payments will be priced based on the next available accumulation unit value after the payment is received. The cumulative total of all purchase payments under contracts issued by Nationwide on the life of any one annuitant cannot exceed $1,000,000 without Nationwide's prior consent. Purchase payments will not be priced when the New York Stock Exchange is closed or on the following nationally recognized holidays: - - New Year's Day - Independence Day - - Martin Luther King, Jr. Day - Labor Day - - Presidents' Day - Thanksgiving - - Good Friday - Christmas - - Memorial Day Nationwide also will not price purchase payments if: (1) trading on the New York Stock Exchange is restricted; (2) an emergency exists making disposal or valuation of securities held in the variable account impracticable; or 32 35 (3) the SEC, by order, permits a suspension or postponement for the protection of security holders. Rules and regulations of the SEC will govern as to when the conditions described in (2) and (3) exist. If Nationwide is closed on days when the New York Stock Exchange is open, contract value may be affected since the contract owner will not have access to their account. ALLOCATION OF PURCHASE PAYMENTS Nationwide allocates purchase payments to sub-accounts, the fixed account, and/or Guaranteed Term Options as instructed by the contract owner. Shares of the underlying mutual funds allocated to the sub-accounts are purchased at net asset value, then converted into accumulation units. Contract owners can change allocations or make exchanges among the sub-accounts, fixed account or Guaranteed Term Options. However, no change may be made that would result in an amount less than 1% of the purchase payments being allocated to any sub-account. Certain transactions may be subject to conditions imposed by the underlying mutual funds, as well as those set forth in the contract. DETERMINING THE CONTRACT VALUE The contract value is the sum of: (1) the value of amounts allocated to the sub-accounts of the variable account; and (2) amounts allocated to the fixed account; and (3) amounts allocated to a Guaranteed Term Option. If part or all of the contract value is surrendered, or charges are assessed against the whole contract value, Nationwide will deduct a proportionate amount from each sub-account, the fixed account and any Guaranteed Term Option based on current cash values. Determining Variable Account Value - Valuing an Accumulation Unit Purchase payments or transfers allocated to sub-accounts are accounted for in accumulation units. Accumulation unit values (for each sub-account) are determined by calculating the net investment factor for the underlying mutual funds for the current valuation period and multiplying that result with the accumulation unit values determined on the previous valuation period. Nationwide uses the net investment factor as a way to calculate the investment performance of a sub-account from valuation period to valuation period. For each sub-account, the net investment factor shows the investment performance of the underlying mutual fund in which a particular sub-account invests, including the charges assessed against that sub-account for a valuation period. The net investment factor for any particular sub-account is determined by dividing (a) by (b), and then subtracting (c) from the result, where: (a) is: (1) the net asset value of the underlying mutual fund as of the end of the current valuation period; and (2) the per share amount of any dividend or income distributions made by the underlying mutual fund (if the ex-dividend date occurs during the current valuation period). (b) is the net asset value of the underlying mutual fund determined as of the end of the preceding valuation period. (c) is a factor representing the daily variable account charges, which may include charges for contract options chosen by the contract owner. The factor is equal to an annual rate ranging from 0.95% to 2.70% of the daily net assets of the variable account, depending on which contract features the contract owner chooses. Based on the change in the net investment factor, the value of an accumulation unit may increase or decrease. Changes in the net investment factor may not be directly proportional to changes in the net asset value of 33 36 the underlying mutual fund shares because of the deduction of variable account charges. Though the number of accumulation units will not change as a result of investment experience, the value of an accumulation unit may increase or decrease from valuation period to valuation period. Determining Fixed Account Value Nationwide determines the value of the fixed account by: (1) adding all amounts allocated to the fixed account, minus amounts previously transferred or withdrawn; and (2) adding any interest earned on the amounts allocated. Determining the Guaranteed Term Option Value Nationwide determines the value of a Guaranteed Term Option by: (1) adding all amounts allocated to any Guaranteed Term Option, minus amounts previously transferred or withdrawn (which may be subject to a market value adjustment); and (2) adding any interest earned on the amounts allocated to any Guaranteed Term Option. TRANSFERS PRIOR TO ANNUITIZATION Transfers from the Fixed Account to the Variable Account or a Guaranteed Term Option Fixed account allocations may be transferred to the variable account or to a Guaranteed Term Option only upon reaching the end of an interest rate guarantee period. Normally, Nationwide will permit 100% of such fixed account allocations to be transferred to the variable account or a Guaranteed Term Option; however Nationwide may, under certain economic conditions and at its discretion, limit the maximum transferable amount. Under no circumstances will the maximum transferable amount be less than 10% of the fixed account allocation reaching the end of an interest rate guarantee period. Transfers of the fixed account allocations must be made within 45 days after reaching the end of an interest rate guarantee period. Contract owners who use Dollar Cost Averaging may transfer from the fixed account to the variable account (but not to Guaranteed Term Options) under the terms of that program (see "Dollar Cost Averaging"). Transfers to the Fixed Account Variable account allocations may be transferred to the fixed account at any time. Normally, Nationwide will not restrict transfers from the variable account to the fixed account; however, Nationwide may establish a maximum transfer limit from the variable account to the fixed account. Except as noted below, under no circumstances will the transfer limit be less than 10% of the current value of the variable account, less any transfers made in the 12 months preceding the date the transfer is requested, but not including transfers made prior to the imposition of the transfer limit. However, where permitted by state law, Nationwide reserves the right to refuse transfers or purchase payments to the fixed account (whether from the variable account or a Guaranteed Term Option) when the fixed account value is greater than or equal to 30% of the contract value at the time the purchase payment is made or the transfer is requested. Transfers from a Guaranteed Term Option Transfers from a Guaranteed Term Option prior to maturity are subject to a market value adjustment. Transfers Among the Sub-Accounts Allocations may be transferred among the sub-accounts once per valuation period. TRANSFERS AFTER ANNUITIZATION After annuitization, transfers may only be made on the anniversary of the annuitization date. TRANSFER REQUESTS Nationwide will accept transfer requests in writing or, in those states that allow them, over the telephone. Nationwide will use reasonable procedures to confirm that telephone 34 37 instructions are genuine and will not be liable for following telephone instructions that it reasonably determined to be genuine. Nationwide may withdraw the telephone exchange privilege upon 30 days written notice to contract owners. Amounts transferred to the variable account will receive the accumulation unit value next determined after the transfer request is received. Interest Rate Guarantee Period The interest rate guarantee period is the period of time that the fixed account interest rate is guaranteed to remain the same. Within 45 days of the end of an interest rate guarantee period, transfers may be made from the fixed account to the variable account or to the Guaranteed Term Options. Nationwide will determine the amount that may be transferred and will declare this amount at the end of the guarantee period. This amount will not be less than 10% of the amount in the fixed account that is maturing. For new purchase payments allocated to the fixed account, or transfers to the fixed account from the variable account or a Guaranteed Term Option, this period begins on the date of deposit or transfer and ends on the one year anniversary of the deposit or transfer. The guaranteed interest rate period may last for up to 3 months beyond the 1 year anniversary because guaranteed terms end on the last day of a calendar quarter. The interest rate guarantee period does not in any way refer to interest rate crediting practices connected with Guaranteed Term Options. During an interest rate guarantee period, transfers cannot be made from the fixed account, and amounts transferred to the fixed account must remain on deposit. Market Timing Firms Some contract owners may use market timing firms or other third parties to make transfers on their behalf. Generally, in order to take advantage of perceived market trends, market timing firms will submit transfer or exchange requests on behalf of multiple contract owners at the same time. Sometimes this can result in unusually large transfers of funds. These large transfers might interfere with the ability of Nationwide or the underlying mutual fund to process transactions. This can potentially disadvantage contract owners not using market timing firms. To avoid this, Nationwide may modify transfer and exchange rights of contract owners who use market timing firms (or other third parties) to transfer or exchange funds on their behalf. The exchange and transfer rights of individual contract owners will not be modified in any way when instructions are submitted directly by the contract owner, or by the contract owner's representative (as authorized by the execution of a valid Nationwide Limited Power of Attorney Form). To protect contract owners, Nationwide may refuse exchange and transfer requests: - - submitted by any agent acting under a power of attorney on behalf of more than one contract owner; or - - submitted on behalf of individual contract owners who have executed pre-authorized exchange forms which are submitted by market timing firms (or other third parties) on behalf of more than one contract owner at the same time. Nationwide will not restrict exchange rights unless Nationwide believes it to be necessary for the protection of all contract owners. RIGHT TO REVOKE Contract owners have a ten day "free look" to examine the contract. The contract may be returned to Nationwide's home office for any reason within ten days of receipt and Nationwide will refund the contract value or another amount required by law. The refunded contract value will reflect the deduction of any contract charges, unless otherwise required by law. All Individual Retirement Annuity, SEP IRA, Simple IRA and Roth IRA refunds will be a return of purchase payments. State and/or 35 38 federal law may provide additional free look privileges. Contract owners who have elected the Extra Value Option and subsequently terminate the contract under the free look provision will forfeit any amounts credited to the contract. For those jurisdictions that allow a return of contract value, the contract owner will retain any earnings attributable to the amount credited; all losses attributable to the amount credited will be incurred by Nationwide. Liability of the variable account under this provision is limited to the contract value in each sub-account on the date of revocation. Any additional amounts refunded to the contract owner will be paid by Nationwide. SURRENDER (REDEMPTION) Contract owners may surrender some or all of their contract value before the earlier of the annuitization date or the annuitant's death. Surrender requests must be in writing and Nationwide may require additional information. When taking a full surrender, the contract must accompany the written request. Nationwide may require a signature guarantee. If the Extra Value Option has been elected, and the amount withdrawn is subject to a CDSC, then for the first seven contract years only, a portion of the amount credited under the Extra Value Option may be recaptured. No recapture will take place after the seventh contract year. The amount credited will not, however, be subject to recapture if a withdrawal not subject to the CDSC is being made (see "Extra Value Option"). Nationwide will pay any amounts surrendered from the sub-accounts within 7 days. However, Nationwide may suspend or postpone payment when it is unable to price a purchase payment or transfer. PARTIAL SURRENDERS (PARTIAL REDEMPTIONS) Nationwide will surrender accumulation units from the sub-accounts and an amount from the fixed account and Guaranteed Term Options. The amount withdrawn from each investment option will be in proportion to the value in each option at the time of the surrender request. A CDSC may apply. The contract owner may take the CDSC from either: (a) the amount requested; or (b) the contract value remaining after the contract owner has received the amount requested. If the contract owner does not make a specific election, any applicable CDSC will be taken from the contract value remaining after the contract owner has received the amount requested. The CDSC deducted is a percentage of the amount requested by the contract owner. Amounts deducted for CDSC are not subject to subsequent CDSC. FULL SURRENDERS (FULL REDEMPTIONS) The contract value upon full surrender may be more or less than the total of all purchase payments made to the contract. The contract value will reflect variable account charges, underlying mutual fund charges and the investment performance of the underlying mutual funds. A CDSC may apply. SURRENDERS UNDER A TEXAS OPTIONAL RETIREMENT PROGRAM OR A LOUISIANA OPTIONAL RETIREMENT PLAN Redemption restrictions apply to contracts issued under the Texas Optional Retirement Program or the Louisiana Optional Retirement Plan. The Texas Attorney General has ruled that participants in contracts issued under the Texas Optional Retirement Program may only take withdrawals if: - - the participant dies; - - the participant retires; - - the participant terminates employment due to total disability; or 36 39 - - the participant that works in a Texas public institution of higher education terminates employment. A participant under a contract issued under the Louisiana Optional Retirement Plan may only take distributions from the contract upon retirement or termination of employment. All retirement benefits under this type of plan must be paid as lifetime income; lump sum cash payments are not permitted, except for death benefits. Due to the restrictions described above, a participant under either of these plans will not be able to withdraw cash values from the contract unless one of the applicable conditions is met. However, contract value may be transferred to other carriers, subject to any CDSC. Nationwide issues this contract to participants in the Texas Optional Retirement Program in reliance upon and in compliance with Rule 6c-7 of the Investment Company Act of 1940. Nationwide issues this contract to participants in the Louisiana Optional Retirement Plan in reliance upon and in compliance with an exemptive order that Nationwide received from the SEC on August 22, 1990. SURRENDERS UNDER A TAX SHELTERED ANNUITY Contract owners of a Tax Sheltered Annuity may surrender part or all of their contract value before the earlier of the annuitization date or the annuitant's death, except as provided below: A. Contract value attributable to contributions made under a qualified cash or deferred arrangement (within the meaning of Internal Revenue Code Section 402(g)(3)(A)), a salary reduction agreement (within the meaning of Internal Revenue Code Section 402(g)(3)(C)), or transfers from a Custodial Account (described in Section 403(b)(7) of the Internal Revenue Code), may be surrendered only: 1. when the contract owner reaches age 59-1/2, separates from service, dies, or becomes disabled (within the meaning of Internal Revenue Code Section 72(m)(7)); or 2. in the case of hardship (as defined for purposes of Internal Revenue Code Section 401(k)), provided that any such hardship surrender may NOT include any income earned on salary reduction contributions. B. The surrender limitations described in Section A also apply to: 1. salary reduction contributions to Tax Sheltered Annuities made for plan years beginning after December 31, 1988; 2. earnings credited to such contracts after the last plan year beginning before January 1, 1989, on amounts attributable to salary reduction contributions; and 3. all amounts transferred from 403(b)(7) Custodial Accounts (except that earnings and employer contributions as of December 31, 1988 in such Custodial Accounts may be withdrawn in the case of hardship). C. Any distribution other than the above, including a ten day free look cancellation of the contract (when available) may result in taxes, penalties, and/or retroactive disqualification of a Tax Sheltered Annuity. In order to prevent disqualification of a Tax Sheltered Annuity after a ten day free look cancellation, Nationwide will transfer the proceeds to another Tax Sheltered Annuity upon proper direction by the contract owner. These provisions explain Nationwide's understanding of current withdrawal restrictions. These restrictions may change. Distributions pursuant to Qualified Domestic Relations Orders will not violate the restrictions stated above. LOAN PRIVILEGE The loan privilege is ONLY available to owners of Tax Sheltered Annuities. These contract owners can take loans from the contract value beginning 37 40 30 days after the contract is issued up to the annuitization date. Loans are subject to the terms of the contract, the plan, and the Internal Revenue Code. Nationwide may modify the terms of a loan to comply with changes in applicable law. MINIMUM & MAXIMUM LOAN AMOUNTS Contract owners may borrow a minimum of $1,000, unless Nationwide is required by law to allow a lesser minimum amount. Each loan must individually satisfy the contract minimum amount. Nationwide will calculate the maximum nontaxable loan amount based upon information provided by the participant or the employer. Loans may be taxable if a participant has additional loans from other plans. The total of all outstanding loans must not exceed the following limits:
CONTRACT MAXIMUM OUTSTANDING LOAN VALUES BALANCE ALLOWED - ---------------- ------------ ------------------------------ NON-ERISA PLANS up to up to 80% of contract $20,000 value (not more than $10,000) $20,000 up to 50% of contract and over value (not more than $50,000*) ERISA PLANS All up to 50% of contract value (not more than $50,000*)
* The $50,000 limits will be reduced by the highest outstanding balance owed during the previous 12 months. For salary reduction Tax Sheltered Annuities, loans may be secured only by the contract value. LOAN PROCESSING FEE Nationwide may charge a loan processing fee at the time each new loan is processed. If assessed, this fee compensates Nationwide for expenses related to administering and processing loans. Loans are not available in all states. In addition, some states may not allow Nationwide to assess a Loan Processing Fee. The fee is taken from the sub-accounts, fixed account, and Guaranteed Term Options in proportion to the contract value at the time the loan is processed. HOW LOAN REQUESTS ARE PROCESSED All loans are made from the collateral fixed account. Nationwide transfers accumulation units in proportion to the assets in each sub-account to the collateral fixed account until the requested amount is reached. If there are not enough accumulation units available in the contract to reach the requested loan amount, Nationwide next transfers contract value from the fixed account. Any remaining required collateral will be transferred from the Guaranteed Term Options. Transfers from the Guaranteed Term Options may be subject to a market value adjustment. No CDSC will be deducted on transfers related to loan processing. LOAN INTEREST The outstanding loan balance in the collateral fixed account is credited with interest until the loan is repaid in full. The interest rate will be 2.25% less than the loan interest rate fixed by Nationwide. The interest rate is guaranteed never to fall below 3.0%. Specific loan terms are disclosed at the time of loan application or issuance. LOAN REPAYMENT Loans must be repaid in five years. However, if the loan is used to purchase the contract owner's principal residence, the contract owner has 15 years to repay the loan. Contract owners must identify loan repayments as loan repayments or they will be treated as purchase payments and will not reduce the outstanding loan. Payments must be substantially level and made at least quarterly. Loan repayments will consist of principal and interest in amounts set forth in the loan agreement. Repayments are allocated to the sub-accounts in accordance with the contract, unless Nationwide and the contract owner have agreed to amend the contract at a later date on a case by case basis. Loan repayments to the Guaranteed Term Options must be at least $1,000. If the proportional share of the repayment to the Guaranteed Term Option is less than $1,000, 38 41 that portion of the repayment will be allocated to the NSAT Money Market Fund unless the contract owner directs otherwise. DISTRIBUTIONS & ANNUITY PAYMENTS Distributions made from the contract while a loan is outstanding will be reduced by the amount of the outstanding loan plus accrued interest if: - - the contract is surrendered; - - the contract owner/annuitant dies; - - the contract owner who is not the annuitant dies prior to annuitization; or - - annuity payments begin. TRANSFERRING THE CONTRACT Nationwide reserves the right to restrict any transfer of the contract while the loan is outstanding. GRACE PERIOD & LOAN DEFAULT If a loan payment is not made when due, interest will continue to accrue. A grace period may be available (please refer to the terms of the loan agreement). If a loan payment is not made by the end of the applicable grace period, the entire loan will be treated as a deemed distribution and will be taxable to the borrower. This deemed distribution may also be subject to an early withdrawal tax penalty by the Internal Revenue Service. After default, interest will continue to accrue on the loan. Defaulted amounts, plus interest, are deducted from the contract value when the participant is eligible for a distribution of at least that amount. Additional loans are not available while a previous loan is in default. ASSIGNMENT Contract rights are personal to the contract owner and may not be assigned without Nationwide's written consent. A Non-Qualified Contract owner may assign some or all rights under the contract. An assignment must occur before annuitization while the annuitant is alive. Once proper notice of assignment is recorded by Nationwide's home office, the assignment will become effective as of the date the written request was signed. Investment-only Contracts, Individual Retirement Annuities, Roth IRAs, SEP IRAs, Simple IRAs, and Tax Sheltered Annuities may not be assigned, pledged or otherwise transferred except where allowed by law. Nationwide is not responsible for the validity or tax consequences of any assignment. Nationwide is not liable for any payment or settlement made before the assignment is recorded. Assignments will not be recorded until Nationwide receives sufficient direction from the contract owner and the assignee regarding the proper allocation of contract rights. Amounts pledged or assigned will be treated as distributions and will be included in gross income to the extent that the cash value exceeds the investment in the contract for the taxable year in which it was pledged or assigned. Amounts assigned may be subject to a tax penalty equal to 10% of the amount included in gross income. Assignment of the entire contract value may cause the portion of the contract value exceeding the total investment in the contract and previously taxed amounts to be included in gross income for federal income tax purposes each year that the assignment is in effect. CONTRACT OWNER SERVICES ASSET REBALANCING Asset rebalancing is the automatic reallocation of contract values to the sub-accounts on a predetermined percentage basis. Asset rebalancing is not available for assets held in the fixed account or the Guaranteed Term Options. Requests for asset rebalancing must be on a Nationwide form. Asset rebalancing occurs every three months or on another frequency if permitted by Nationwide. If the last day of the three-month 39 42 period falls on a Saturday, Sunday, recognized holiday, or any other day when the New York Stock Exchange is closed, asset rebalancing will occur on the next business day. Asset rebalancing may be subject to employer limitations or restrictions for contracts issued to a Tax Sheltered Annuity plan. Contract owners should consult a financial adviser to discuss the use of asset rebalancing. Nationwide reserves the right to stop establishing new asset rebalancing programs. Nationwide also reserves the right to assess a processing fee for this service. DOLLAR COST AVERAGING Dollar Cost Averaging is a long-term transfer program that allows you to make regular, level investments over time. It involves the automatic transfer of a specified amount from the fixed account and/or certain sub-accounts into other sub-accounts. Nationwide does not guarantee that this program will result in profit or protect contract owners from loss. Contract owners direct Nationwide to automatically transfer specified amounts from the fixed account and the Federated Insurance Series - Federated Quality Bond Fund II, Fidelity VIP High Income Portfolio, NSAT Government Bond Fund, NSAT Nationwide High Income Bond Fund, and NSAT Money Market Fund to any other underlying mutual fund. Dollar Cost Averaging transfers may not be directed to Guaranteed Term Options. Transfers occur monthly or on another frequency if permitted by Nationwide. Nationwide will process transfers until either the value in the originating investment option is exhausted, or the contract owner instructs Nationwide in writing to stop the transfers. Nationwide reserves the right to stop establishing new Dollar Cost Averaging programs. Nationwide also reserves the right to assess a processing fee for this service. Dollar Cost Averaging from the Fixed Account Transfers from the fixed account must be equal to or less than 1/30th of the fixed account value at the time the program is requested. A Dollar Cost Averaging program which transfers amounts from the fixed account to the variable account is not the same as an Enhanced Rate Dollar Cost Averaging program. Contract owners that wish to utilize Dollar Cost Averaging from the fixed account should first inquire whether any Enhanced Rate Dollar Cost Averaging programs are available. Enhanced Rate Dollar Cost Averaging Nationwide may, from time to time, offer Enhanced Rate Dollar Cost Averaging programs. Contract owners may participate in this program if their contract value is $10,000 or more. Dollar Cost Averaging transfers for this program may only be made from the fixed account. Such Enhanced Rate Dollar Cost Averaging programs allow the contract owner to earn a higher rate of interest on assets in the fixed account than would normally be credited when not participating in the program. Each enhanced interest rate is guaranteed for as long as the corresponding program is in effect. Nationwide will process transfers until either amounts in the enhanced rate fixed account are exhausted, or the contract owner instructs Nationwide in writing to stop the transfers. For this program only, when a written request to discontinue transfers is received, Nationwide will automatically transfer the remaining amount in the enhanced rate fixed account to the NSAT Money Market Fund. SYSTEMATIC WITHDRAWALS Systematic withdrawals allow contract owners to receive a specified amount (of at least $100) on a monthly, quarterly, semi-annual, or annual basis. Requests for systematic withdrawals and requests to discontinue systematic withdrawals must be in writing. The withdrawals will be taken from the sub-accounts and the fixed account proportionately unless Nationwide is instructed otherwise. Systematic withdrawals are not available from the Guaranteed Term Options. Nationwide will withhold federal income taxes from systematic withdrawals unless otherwise 40 43 instructed by the contract owner. The Internal Revenue Service may impose a 10% penalty tax if the contract owner is under age 59-1/2 unless the contract owner has made an irrevocable election of distributions of substantially equal payments. If the contract owner takes systematic withdrawals, the maximum amount that can be withdrawn annually without a CDSC is the greatest of: (1) 10% of all purchase payments made to the contract as of the withdrawal date; (2) an amount withdrawn to meet minimum distribution requirements under the Internal Revenue Code; or (3) a percentage of the contract value based on the contract owner's age, as shown in the table below:
PERCENTAGE OF CONTRACT OWNER'S CONTRACT VALUE AGE ----------------------------------------------- Under age 59-1/2 5% Age 59-1/2 through age 61 7% Age 62 through age 64 8% Age 65 through age 74 10% Age 75 and over 13%
Contract value and contract owner's age are determined as of the date the request for the withdrawal program is recorded by Nationwide's home office. For joint owners, the older joint owner's age will be used. If total amounts withdrawn in any contract year exceed the CDSC-free amount described above, those amounts will only be eligible for the 10% of purchase payment CDSC-free withdrawal privilege described in the "Contingent Deferred Sales Charge" section. The total amount of CDSC for that contract year will be determined in accordance with that provision. The CDSC-free withdrawal privilege for systematic withdrawals is non-cumulative. Free amounts not taken during any contract year cannot be taken as free amounts in a subsequent contract year. Nationwide reserves the right to stop establishing new systematic withdrawal programs. Nationwide also reserves the right to assess a processing fee for this service. Systematic withdrawals are not available before the end of the ten-day free look period (see "Right to Revoke"). ANNUITY COMMENCEMENT DATE The annuity commencement date is the date on which annuity payments are scheduled to begin. The contract owner may change the annuity commencement date before annuitization. This change must be in writing and approved by Nationwide. ANNUITIZING THE CONTRACT ANNUITIZATION DATE The annuitization date is the date that annuity payments begin. It will be the first day of a calendar month unless otherwise agreed, and must be at least 2 years after the contract is issued. If the contract is issued to fund a Tax Sheltered Annuity, annuitization may occur during the first 2 years subject to Nationwide's approval. ANNUITIZATION Annuitization is the period during which annuity payments are received. It is irrevocable once payments have begun. Upon arrival of the annuitization date, the annuitant must choose: (1) an annuity payment option; and (2) either a fixed payment annuity, variable payment annuity, or an available combination. Nationwide guarantees that each payment under a fixed payment annuity will be the same throughout annuitization. Under a variable payment annuity, the amount of each payment will vary with the performance of the underlying mutual funds chosen by the contract owner. 41 44 FIXED PAYMENT ANNUITY A fixed payment annuity is an annuity where the amount of the annuity payments remains level. The first payment under a fixed payment annuity is determined on the annuitization date on an "age last birthday" basis by: (1) deducting applicable premium taxes from the total contract value; then (2) applying the contract value amount specified by the contract owner to the fixed payment annuity table for the annuity payment option elected. Subsequent payments will remain level unless the annuity payment option elected provides otherwise. Nationwide does not credit discretionary interest during annuitization. VARIABLE PAYMENT ANNUITY A variable payment annuity is an annuity where the amount of the annuity payments will vary depending on the performance of the underlying mutual funds selected. A VARIABLE PAYMENT ANNUITY MAY NOT BE ELECTED WHEN EXERCISING THE GUARANTEED MINIMUM INCOME BENEFIT OPTION. The first payment under a variable payment annuity is determined on the annuitization date on an "age last birthday" basis by: (1) deducting applicable premium taxes from the total contract value; then (2) applying the contract value amount specified by the contract owner to the variable payment annuity table for the annuity payment option elected. The dollar amount of the first payment is converted into a set number of annuity units that will represent each monthly payment. This is done by dividing the dollar amount of the first payment by the value of an annuity unit as of the annuitization date. This number of annuity units remains fixed during annuitization. The second and subsequent payments are determined by multiplying the fixed number of annuity units by the annuity unit value for the valuation period in which the payment is due. The amount of the second and subsequent payments will vary with the performance of the selected underlying mutual funds. Nationwide guarantees that variations in mortality experience from assumptions used to calculate the first payment will not affect the dollar amount of the second and subsequent payments. Assumed Investment Rate An assumed investment rate is the percentage rate of return assumed to determine the amount of the first payment under a variable payment annuity. Nationwide uses the assumed investment rate of 3.5% to calculate the first annuity payment and to calculate the investment performance of an underlying mutual fund in order to determine subsequent payments under a variable payment annuity. An assumed investment rate is the percentage rate of return required to maintain level variable annuity payments. Subsequent variable annuity payments may be more or less than the first payment based on whether actual investment performance of the underlying mutual funds is higher or lower than the assumed investment rate of 3.5%. Value of an Annuity Unit Annuity unit values for sub-accounts are determined by multiplying the net investment factor for the valuation period for which the annuity unit is being calculated by the immediately preceding valuation period's annuity unit value, and multiplying the result by an interest factor to neutralize the assumed investment rate of 3.5% per annum built into the variable payment annuity purchase rate basis in the contracts. Exchanges among Underlying Mutual Funds Exchanges among underlying mutual funds during annuitization must be in writing. Exchanges will occur on each anniversary of the annuitization date. FREQUENCY AND AMOUNT OF ANNUITY PAYMENTS Payments are made based on the annuity payment option selected, unless: 42 45 - - the amount to be distributed is less than $5,000, in which case Nationwide may make one lump sum payment of the contract value; or - - an annuity payment would be less than $50, in which case Nationwide can change the frequency of payments to intervals that will result in payments of at least $50. Payments will be made at least annually. GUARANTEED MINIMUM INCOME BENEFIT OPTION ("GMIB") What is a GMIB? A GMIB is a benefit which ensures the availability of a minimum amount when the contract owner wishes to annuitize the contract. This minimum amount, referred to as the Guaranteed Annuitization Value, may be used at specified times to provide a guaranteed level of determinable lifetime annuity payments. The GMIB may provide protection in the event of lower contract values that may result from the investment performance of the contract. How is the Guaranteed Annuitization Value Determined? The Guaranteed Annuitization Value is equal to (a) - (b), but will never be greater than 200% of all purchase payments, where: (a) is the sum of all purchase payments, occurring immediately prior to the annuitant's 86th birthday; and (b) is the reduction to (a) due to surrenders made from the contract. All such as reductions to the contract value caused by surrenders. For example, a surrender which reduces the contract value by 25% will also reduce the Guaranteed Annuitization Value by 25%. Special Restrictions for a GMIB After the first contract year, if the value of the contract owner's fixed account allocation becomes greater than 30% of the contract value in any contract year due to: (1) the application of additional purchase payments; (2) surrenders; or (3) transfers from the variable account, then 0% interest will accrue in that contract year for purposes of calculating the Guaranteed Annuitization Value. If the contract owner's fixed account allocation becomes greater than 30% of the contract value solely as a result of fluctuations in the value of the variable account, then interest will continue to accrue for the purposes of the Guaranteed Annuitization Value at 5% annually, subject to the other terms and conditions outlined herein. 43 46 GMIB Illustrations The following charts illustrate the amount of income that will be provided to an annuitant if the contract owner annuitizes the contract at the 7th, 10th or 15th contract anniversary date, using the GMIB. The illustrations assume the following: - - An initial purchase payment of $100,000 is made to the contract and allocated to the variable account; - - There are no surrenders from the contract or transfers to the fixed account (raising the fixed account value to greater than 30% of the contract value); - - The contract is issued to a MALE at age 55, 65 or 70; and - - A Life Annuity with 120 Months Guaranteed Fixed Payment Annuity Option is elected.
7 Years in Accumulation $140,710.04 for GMIB at Annuitization Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB 55 62 $4.72 $664.15 65 72 $5.96 $838.63 70 77 $6.79 $955.42
10 Years in Accumulation $162,889.46 for GMIB at Annuitization Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB 55 65 $5.03 $819.33 65 75 $6.44 $1,049.01 70 80 $7.32 $1,192.35
15 Years in Accumulation $200,000.00 for GMIB at Annuitization Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB 55 70 $5.66 $1,132.00 65 80 $7.32 $1,464.00 70 85 $8.18 $1,636.00
* Guaranteed Monthly Benefit per $1,000 applied The illustrations should be used as a tool to assist an investor in determining whether purchasing and exercising a GMIB option is right for them. The guaranteed purchase rates assumed in the illustrations may not apply in some states, or for contracts issued under an employer sponsored plan. Different guaranteed purchase rates will apply for females, for males who annuitize at ages other than the ages shown above, or for annuitizations under other annuity payment options. Where different guaranteed purchase rates apply, GMIB amounts shown above will be different. In all cases, the guaranteed purchase rates used to calculate the GMIB will be the same as the purchase rates guaranteed in the contract for fixed annuitizations without the GMIB. The purchase rates available in connection with annuitization options under a GMIB are minimum guaranteed purchase rates. Alternative purchase rates, which may be more favorable, may apply to annuitizations which occur without a GMIB option. 44 47 When May the Guaranteed Annuitization Value be Used? The contract owner may use the Guaranteed Annuitization Value by annuitizing the contract during the thirty day period following any contract anniversary: (1) after the contract has been in effect for seven years; AND (2) the annuitant has attained age 60. What Annuity Payment Options May Be Used With the Guaranteed Annuitization Value? The contract owner may elect any life contingent FIXED ANNUITY PAYMENT OPTION calculated using the guaranteed annuity purchase rates set forth in the contract. Such Fixed Annuity Payment Options include: - - Life Annuity; - - Joint and Last Survivor Annuity; and - - Life Annuity with 120 or 240 Monthly Payments Guaranteed. Other GMIB Terms and Conditions **PLEASE READ CAREFULLY** - - The GMIB must be elected at the time of application. - - The annuitant must be age 82 or younger at the time the contract is issued. - - The GMIB is irrevocable and will remain for as long as the contract remains in force. IMPORTANT CONSIDERATIONS TO KEEP IN MIND REGARDING THE GMIB OPTION While a GMIB does provide a Guaranteed Annuitization Value, A GMIB MAY NOT BE APPROPRIATE FOR ALL INVESTORS and should be understood completely and analyzed thoroughly before being elected. - - A GMIB DOES NOT in any way guarantee the performance of any underlying mutual fund, or any other investment option available under the contract. - - Once elected, the GMIB is irrevocable, meaning that even if the investment performance of underlying mutual funds or other available investment options surpasses the minimum guarantees associated with the GMIB, the GMIB charges will still be assessed. - - The GMIB in no way restricts or limits the rights of contract owners to annuitize the contract at other times permitted under the contract, nor will it in any way restrict the right to annuitize the contract using contract values that may be higher than the Guaranteed Annuitization Value. - - Please take advantage of the guidance of a qualified financial adviser in evaluating the GMIB options, and all other aspects of the contract. - - GMIB may not be approved in all state jurisdictions. 45 48 ANNUITY PAYMENT OPTIONS Contract owners must elect an annuity payment option before the annuitization date. The annuity payment options are: (1) LIFE ANNUITY - An annuity payable periodically, but at least annually, for the lifetime of the annuitant. Payments will end upon the annuitant's death. For example, if the annuitant dies before the second annuity payment date, the annuitant will receive only one annuity payment. The annuitant will only receive two annuity payments if he or she dies before the third annuity payment date, and so on. (2) JOINT AND LAST SURVIVOR ANNUITY - An annuity payable periodically, but at least annually, during the joint lifetimes of the annuitant and a designated second individual. If one of these parties dies, payments will continue for the lifetime of the survivor. As is the case under option 1, there is no guaranteed number of payments. Payments end upon the death of the last surviving party, regardless of the number of payments received. (3) LIFE ANNUITY WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED - An annuity payable monthly during the lifetime of the annuitant. If the annuitant dies before all of the guaranteed payments have been made, payments will continue to the end of the guaranteed period and will be paid to a designee chosen by the annuitant at the time the annuity payment option was elected. The designee may elect to receive the present value of the remaining guaranteed payments in a lump sum. The present value will be computed as of the date Nationwide receives the notice of the annuitant's death. Not all of the annuity payment options may be available in all states. Contract owners may request other options before the annuitization date. These options are subject to Nationwide's approval. No distribution for Non-Qualified Contracts will be made until an annuity payment option has been elected. Individual Retirement Annuities and Tax Sheltered Annuities are subject to the "minimum distribution" requirements set forth in the plan, contract, and the Internal Revenue Code. DEATH BENEFITS DEATH OF CONTRACT OWNER - NON-QUALIFIED CONTRACTS If the contract owner who is not the annuitant dies before the annuitization date, the joint owner becomes the contract owner. If no joint owner is named, the contingent owner becomes the contract owner. If no contingent owner is named, the last surviving contract owner's estate becomes the contract owner. If the contract owner and annuitant are the same, and the contract owner/annuitant dies before the annuitization date, the contingent owner will not have any rights in the contract unless the contingent owner is also the beneficiary. Distributions under Non-Qualified Contracts will be made pursuant to the "Required Distributions for Non-Qualified Contracts" provision. DEATH OF ANNUITANT - NON-QUALIFIED CONTRACTS If the annuitant who is not a contract owner dies before the annuitization date, a death benefit is payable to the beneficiary unless a contingent annuitant is named. If a contingent annuitant is named, the contingent annuitant becomes the annuitant and no death benefit is payable. The beneficiary may elect to receive the death benefit: (1) in a lump sum; (2) as an annuity; or (3) in any other manner permitted by law and approved by Nationwide. The beneficiary must notify Nationwide of this election within 60 days of the annuitant's death. If no beneficiary survives the annuitant, the contingent beneficiary receives the death 46 49 benefit. Contingent beneficiaries will share the death benefit equally, unless otherwise specified. If no beneficiaries or contingent beneficiaries survive the annuitant, the contract owner or the last surviving contract owner's estate will receive the death benefit. If the contract owner is a Charitable Remainder Trust and the annuitant dies before the annuitization date, the death benefit will accrue to the Charitable Remainder Trust. Any designation in conflict with the Charitable Remainder Trust's right to the death benefit will be void. If the annuitant dies after the annuitization date, any benefit that may be payable will be paid according to the selected annuity payment option. DEATH OF CONTRACT OWNER/ANNUITANT If a contract owner who is also the annuitant dies before the annuitization date, a death benefit is payable according to the "Death of the Annuitant - Non-Qualified Contracts" provision. A joint owner will receive a death benefit if a contract owner/annuitant dies before the annuitization date. If the contract owner/annuitant dies after the annuitization date, any benefit that may be payable will be paid according to the selected annuity payment option. DEATH BENEFIT PAYMENT Contract owners may select one of three death benefits available under the contract at the time of application (not all death benefit options may be available in all states). If no selection is made at the time of application, the death benefit will be the Five-Year Reset Death Benefit. The death benefit value is determined as of the date Nationwide receives: (1) proper proof of the annuitant's death; (2) an election specifying the distribution method; and (3) any state required form(s). Five-Year Reset Death Benefit (Standard Contractual Death Benefit) If the annuitant dies before the annuitization date, the death benefit will be the greatest of: (1) the contract value; (2) the total of all purchase payments, less an adjustment for amounts surrendered; or (3) the contract value as of the most recent five year contract anniversary before the annuitant's 86th birthday, less an adjustment for amounts surrendered, plus purchase payments received after that five year contract anniversary. The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s). One-Year Step Up Death Benefit If the annuitant dies before the annuitization date, the death benefit will be the greatest of: (1) the contract value; (2) the total of all purchase payments, less an adjustment for amounts surrendered; or (3) the highest contract value on any contract anniversary before the annuitant's 86th birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that contract anniversary. The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s). 5% Enhanced Death Benefit If the annuitant dies before the annuitization date, the death benefit will be the greater of: (1) the contract value; or (2) the total of all purchase payments, less any amounts surrendered, accumulated at 5% simple interest from the date of each purchase payment or surrender to the most recent contract anniversary prior to the 47 50 annuitant's 86th birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received since that contract anniversary. The total accumulated amount will not exceed 200% of the net of purchase payments and amounts surrendered. The adjustment for amounts subsequently surrendered after the most recent contract anniversary will reduce the 5% interest anniversary value in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s). REQUIRED DISTRIBUTIONS REQUIRED DISTRIBUTIONS FOR NON-QUALIFIED CONTRACTS Internal Revenue Code Section 72(s) requires Nationwide to make certain distributions when a contract owner dies. The following distributions will be made according to those requirements: (1) If any contract owner dies on or after the annuitization date and before the entire interest in the contract has been distributed, then the remaining interest must be distributed at least as rapidly as the distribution method in effect on the contract owner's death. (2) If any contract owner dies before the annuitization date, then the entire interest in the contract (consisting of either the death benefit or the contract value reduced by charges set forth elsewhere in the contract) will be distributed within 5 years of the contract owner's death, provided however: (a) any interest payable to or for the benefit of a natural person (referred to herein as a "designated beneficiary"), may be distributed over the life of the designated beneficiary or over a period not longer than the life expectancy of the designated beneficiary. Payments must begin within one year of the contract owner's death unless otherwise permitted by federal income tax regulations; (b) if the designated beneficiary is the surviving spouse of the deceased contract owner, the spouse can choose to become the contract owner instead of receiving a death benefit. Any distributions required under these distribution rules will be made upon that spouse's death. In the event that the contract owner is NOT a natural person (e.g., a trust or corporation), then, for purposes of these distribution provisions: (a) the death of the annuitant will be treated as the death of a contract owner; (b) any change of annuitant will be treated as the death of a contract owner; and (c) in either case, the appropriate distribution will be made upon the death or change, as the case may be. These distribution provisions do not apply to any contract exempt from Section 72(s) of the Internal Revenue Code by reason of Section 72(s)(5) or any other law or rule. The designated beneficiary must elect a method of distribution and notify Nationwide of this election within 60 days of the contract owner's death. REQUIRED DISTRIBUTIONS FOR TAX SHELTERED ANNUITIES Distributions from Tax Sheltered Annuities will be made according to the Minimum Distribution and Incidental Benefit ("MDIB") provisions of Section 401(a)(9) of the Internal Revenue Code. Distributions will be made to the annuitant according to the selected annuity payment option over a period not longer than: (a) the life of the annuitant or the joint lives of the annuitant and the annuitant's designated beneficiary; or (b) a period not longer than the life expectancy of the annuitant or the joint life expectancies of the annuitant and the annuitant's designated beneficiary. Required distributions do not have to be withdrawn from this contract if they are being 48 51 withdrawn from another Tax Sheltered Annuity of the annuitant. If the annuitant's entire interest in a Tax Sheltered Annuity will be distributed in equal or substantially equal payments over a period described in a) or b), the payments will begin on the required beginning date. The required beginning date is the later of: (a) April 1 of the calendar year following the calendar year in which the annuitant reaches age 70-1/2; or (b) the annuitant's retirement date. Provision (b) does not apply to any employee who is a 5% owner (as defined in Section 416 of the Internal Revenue Code) with respect to the plan year ending in the calendar year when the employee attains the age of 70-1/2. Distribution commencing on the required distribution date must satisfy minimum distribution and incidental benefit provisions set forth in the Internal Revenue Code. Those provisions require that distributions cannot be less than the amount determined by dividing the annuitant's interest in the Tax Sheltered Annuity determined by the end of the previous calendar year by: (a) the annuitant's life expectancy; or if applicable, (b) the joint and survivor life expectancy of the annuitant and the annuitant's beneficiary. The life expectancies and joint life expectancies are determined by reference to Treasury Regulation 1.72-9. If the annuitant dies before distributions begin, the interest in the Tax Sheltered Annuity must be distributed by December 31 of the calendar year in which the fifth anniversary of the annuitant's death occurs unless: (a) the annuitant names his or her surviving spouse as the beneficiary and the spouse chooses to receive distribution of the contract in substantially equal payments over his or her life (or a period not longer than his or her life expectancy) and beginning no later than December 31 of the year in which the annuitant would have attained age 70-1/2; or (b) the annuitant names a beneficiary other than his or her surviving spouse and the beneficiary elects to receive distribution of the contract in substantially equal payments over his or her life (or a period not longer than his or her life expectancy) beginning no later than December 31 of the year following the year in which the annuitant dies. If the annuitant dies after distributions have begun, distributions must continue at least as rapidly as under the schedule used before the annuitant's death. If distribution requirements are not met, a penalty tax of 50% is levied on the difference between the amount that should have been distributed for that year and the amount that actually was distributed for that year. REQUIRED DISTRIBUTIONS FOR INDIVIDUAL RETIREMENT ANNUITIES, SEP IRAS AND SIMPLE IRAS Distributions from an Individual Retirement Annuity, SEP IRA or Simple IRA must begin no later than April 1 of the calendar year following the calendar year in which the contract owner reaches age 70-1/2. Distribution may be paid in a lump sum or in substantially equal payments over: (a) the contract owner's life or the lives of the contract owner and his or her spouse or designated beneficiary; or (b) a period not longer than the life expectancy of the contract owner or the joint life expectancy of the contract owner and the contract owner's designated beneficiary. If the contract owner dies before distributions begin, the interest in the Individual Retirement Annuity, SEP IRA or Simple IRA must be distributed by December 31 of the calendar year 49 52 in which the fifth anniversary of the contract owner's death occurs, unless: (a) the contract owner names his or her surviving spouse as the beneficiary and such spouse chooses to: (1) treat the contract as an Individual Retirement Annuity, SEP IRA or Simple IRA established for his or her benefit; or (2) receive distribution of the contract in substantially equal payments over his or her life (or a period not longer than his or her life expectancy) and beginning no later than December 31 of the year in which the contract owner would have reached age 70-1/2; or (b) the contract owner names a beneficiary other than his or her surviving spouse and such beneficiary elects to receive a distribution of the contract in substantially equal payments over his or her life (or a period not longer than his or her life expectancy) beginning no later than December 31 of the year following the year of the contract owner's death. Required distributions do not have to be withdrawn from this contract if they are being withdrawn from another Individual Retirement Annuity, SEP IRA or Simple IRA of the contract owner. If the contract owner dies after distributions have begun, distributions must continue at least as rapidly as under the schedule being used before the contract owner's death. However, a surviving spouse who is the beneficiary under the annuity payment option may treat the contract as his or her own, in the same manner as is described in section (a)(1) of this provision. If distribution requirements are not met, a penalty tax of 50% is levied on the difference between the amount that should have been distributed for that year and the amount that actually was distributed for that year. A portion of each distribution will be included in the recipient's gross income and taxed at ordinary income tax rates. The portion of a distribution which is taxable is based on the ratio between the amount by which non-deductible purchase payments exceed prior non taxable distributions and total account balances at the time of the distribution. The owner of an Individual Retirement Annuity, SEP IRA or Simple IRA must annually report the amount of non-deductible purchase payments, the amount of any distribution, the amount by which non deductible purchase payments for all years exceed non taxable distributions for all years, and the total balance of all Individual Retirement Annuities, SEP IRA or Simple IRA. If the contract owner dies before the entire interest in the contract has been distributed, the balance will also be included in his or her gross estate. REQUIRED DISTRIBUTIONS FOR ROTH IRAS The rules for Roth IRAs do not require distributions to begin during the contract owner's lifetime. When the contract owner dies, the interest in the Roth IRA must be distributed by December 31 of the calendar year in which the fifth anniversary of his or her death occurs, unless: (a) the contract owner names his or her surviving spouse as the beneficiary and the spouse chooses to: (1) treat the contract as a Roth IRA established for his or her benefit; or (2) receive distribution of the contract in substantially equal payments over his or her life (or a period not longer than his or her life expectancy) and beginning no later than December 31 of the year following the year in which the contract owner would have reached age 70-1/2; or (b) the contract owner names a beneficiary other than his or her surviving spouse and the beneficiary chooses to receive distribution of the contract in 50 53 substantially equal payments over his or her life (or a period not longer than his or her life expectancy) beginning no later than December 31 of the year following the year in which the contract owner dies. Distributions from Roth IRAs may be either taxable or nontaxable, depending upon whether they are "qualified distributions" or "non-qualified distributions" (see "Federal Tax Considerations"). FEDERAL TAX CONSIDERATIONS FEDERAL INCOME TAXES The tax consequences of purchasing a contract described in this prospectus will depend on: - - the type of contract purchased; - - the purposes for which the contract is purchased; and - - the personal circumstances of individual investors having interests in the contracts. See "Synopsis of the Contracts" for a brief description of the various types of contracts and the different purposes for which the contracts may be purchased. Existing tax rules are subject to change, and may affect individuals differently depending on their situation. Nationwide does not guarantee the tax status of any contracts or any transactions involving the contracts. If the contract is purchased as an investment of certain retirement plans (such as qualified retirement plans, Individual Retirement Accounts, and custodial accounts as described in Sections 401, 408(a), and 403(b)(7) of the Internal Revenue Code), tax advantages enjoyed by the contract owner and/or annuitant may relate to participation in the plan rather than ownership of the annuity contract. Such plans are permitted to purchase investments other than annuities and retain tax-deferred status. The following is a brief summary of some of the federal income tax considerations related to the contracts. In addition to the federal income tax, distributions from annuity contracts may be subject to state and local income taxes. The tax rules across all states and localities are not uniform and therefore will not be discussed in this prospectus. Tax rules that may apply to contracts issued in U.S. territories such as Puerto Rico and Guam are also not discussed. Nothing in this prospectus should be considered to be tax advice. Contract owners and prospective contract owners are encouraged to consult a financial consultant, tax advisor or legal counsel to discuss the taxation and use of the contracts. The Internal Revenue Code sets forth different income tax rules for the following types of annuity contracts: - - Individual Retirement Annuities; - - SEP IRAs; - - Simple IRAs; - - Roth IRAs; - - Tax Sheltered Annuities; and - - "Non-Qualified Annuities." Individual Retirement Annuities, SEP IRAs and Simple IRAs Distributions from Individual Retirement Annuities, SEP IRAs and Simple IRAs are generally taxed when received. If any of the amount contributed to the IRA was nondeductible for federal income tax purposes, then a portion of each distribution is excludable from income. If distributions of income from an IRA are made prior to the date that the owner attains the age of 59-1/2 years, the income is subject to both the regular income tax and an additional penalty tax of 10%. (For Simple IRAs, the 10% penalty is increased to 25% if the distribution is made during the 2 year period beginning on the date that the individual first participated in the Simple IRA.) The penalty tax can be avoided if the distribution is: - - made to a beneficiary on or after the death of the owner; 51 54 - - attributable to the owner becoming disabled (as defined in the Internal Revenue Code); - - part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary; - - used for qualified higher education expenses; or - - used for expenses attributable to the purchase of a home for a qualified first-time buyer. Roth IRAs Distributions of earnings from Roth IRAs are taxable or non-taxable depending upon whether they are "qualified distributions" or "nonqualified distributions." A "qualified distribution" is one that satisfies the five-year rule and meets one of the following requirements: - - it is made on or after the date on which the contract owner attains age 59-1/2; - - it is made to a beneficiary (or the contract owner's estate) on or after the death of the contract owner; - - it is attributable to the contract owner's disability; or - - it is used for expenses attributable to the purchase of a home for a qualified first-time buyer. The five year rule generally is satisfied if the distribution is not made within the five taxable year period beginning with the first taxable year in which a contribution is made to any Roth IRA established for the owner. A qualified distribution is not included in gross income for federal income tax purposes. A non-qualified distribution is not includible in gross income to the extent that the distribution, when added to all previous distributions, does not exceed that total amount of contributions made to the Roth IRA. Any non-qualified distribution in excess of the aggregate amount of contributions will be included in the contract owner's gross income in the year that is distributed to the contract owner. Special rules apply for Roth IRAs that have proceeds received from an IRA prior to January 1, 1999 if the owner elected the special 4-year income averaging provisions that were in effect for 1998. If non-qualified distributions of income from a Roth IRA are made prior to the date that the owner attains the age of 59-1/2 years, the income is subject to both the regular income tax and an additional penalty tax of 10%. The penalty tax can be avoided if the distribution is: - - made to a beneficiary on or after the death of the owner; - - attributable to the owner becoming disabled as defined in the Internal Revenue Code; - - part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary; - - for qualified higher education expenses; or - - used for expenses attributable to the purchase of a home for a qualified first-time buyer. If the contract owner dies before the contract is completely distributed, the balance may be included in the contract owner's gross estate for tax purposes. Tax Sheltered Annuities Distributions from Tax Sheltered Annuities are generally taxed when received. A portion of each distribution is excludable from income based on a formula established pursuant to the Internal Revenue Code. The formula excludes from income the amount invested in the contract divided by the number of anticipated payments until the full investment in the contract is recovered. Thereafter all distributions are fully taxable. 52 55 If a distribution of income is made from a Tax Sheltered Annuity prior to the date that the owner attains the age of 59-1/2 years, the income is subject to both the regular income tax and an additional penalty tax of 10%. The penalty tax can be avoided if the distribution is: - - made to a beneficiary on or after the death of the owner; - - attributable to the owner becoming disabled as defined in the Internal Revenue Code; - - part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary; - - for qualified higher education expenses; - - used for expenses attributable to the purchase of a home for a qualified first-time buyer; or - - made to the owner after separation from service with his or her employer after age 55. Non-Qualified Contracts - Natural Persons as Contract Owners Generally, the income earned inside a Non-Qualified Annuity Contract that is owned by a natural person is not taxable until it is distributed from the contract. Distributions before the annuitization date are taxable to the contract owner to the extent that the cash value of the contract exceeds the contract owner's investment at the time of the distribution. Distributions, for this purpose, include partial surrenders, any portion of the contract that is assigned or pledged; or any portion of the contract that is transferred by gift. For these purposes, a transfer by gift may occur upon annuitization if the contract owner and the annuitant are not the same individual. With respect to annuity distributions on or after the annuitization date, a portion of each annuity payment is excludable from taxable income. The amount excludable is based on the ratio between the contract owner's investment in the contract and the expected return on the contract. Once the entire investment in the contract is recovered, all distributions are fully includable in income. The maximum amount excludable from income is the investment in the contract. If the annuitant dies before the entire investment in the contract has been excluded from income, and as a result of the annuitant's death no more payments are due under the contract, then the unrecovered investment in the contract may be deducted on his or her final tax return. In determining the taxable amount of a distribution, all annuity contracts issued after October 21, 1988 by the same company to the same contract owner during the same calendar year will be treated as one annuity contract. A special rule applies to distributions from contracts that have investments that were made prior to August 14, 1982. For those contracts, distributions that are made prior to the annuitization date are treated first as a recovery of the investment in the contract as of that date. A distribution in excess of the amount of the investment in the contract as of August 14, 1982, will be treated as taxable income. The Internal Revenue Code imposes a penalty tax if a distribution is made before the contract owner reaches age 59-1/2. The amount of the penalty is 10% of the portion of any distribution that is includible in gross income. The penalty tax does not apply if the distribution is: - - the result of a contract owner's death; - - the result of a contract owner's disability, as defined in the Internal Revenue Code; - - one of a series of substantially equal periodic payments made over the life (or life expectancy) of the contract owner or the joint lives (or joint life expectancies) of the contract owner and the beneficiary selected by the contract owner to receive payment under the annuity payment option selected by the contract owner; or - - is allocable to an investment in the contract before August 14, 1982. 53 56 Non-Qualified Contracts - Non-Natural Persons as Contract Owners The previous discussion related to the taxation of Non-Qualified Contracts owned by individuals. Different rules (the so-called "non-natural persons" rules) apply if the contract owner is not a natural person. Generally, contracts owned by corporations, partnerships, trusts, and similar entities are not treated as annuity contracts under the Internal Revenue Code. Therefore, income earned under a Non-Qualified Contract that is owned by a non-natural person is taxed as ordinary income during the taxable year that it is earned. Taxation is not deferred, even if the income is not distributed out of the contract. The income is taxable as ordinary income, not capital gain. The non-natural persons rules do not apply to all entity-owned contracts. A contract that is owned by a non-natural person as an agent of an individual is treated as owned by the individual. This would cause the contract to be treated as an annuity under the Internal Revenue Code, allowing tax deferral. However, this exception does not apply when the non-natural person is an employer that holds the contract under a non-qualified deferred compensation arrangement for one or more employees. The non-natural persons rules also do not apply to contracts that are: - - acquired by the estate of a decedent by reason of the death of the decedent; - - issued in connection with certain qualified retirement plans and individual retirement plans; - - purchased by an employer upon the termination of certain qualified retirement plans. WITHHOLDING Pre-death distributions from the contracts are subject to federal income tax. Nationwide will withhold the tax from the distributions unless the contract owner requests otherwise. If the distribution is from a Tax Sheltered Annuity, it will be subject to mandatory 20% withholding that cannot be waived, unless: - - the distribution is made directly to another Tax Sheltered Annuity or IRA; or - - the distribution satisfies the minimum distribution requirements imposed by the Internal Revenue Code. In addition, contract owners may not waive withholding if the distribution is subject to mandatory back-up withholding (if no taxpayer identification number is given or if the Internal Revenue Service notifies Nationwide that mandatory back-up withholding is required). Mandatory back-up withholding rates are 31% of income that is distributed. NON-RESIDENT ALIENS Generally, a pre-death distribution from a contract to a non-resident alien is subject to federal income tax at a rate of 30% of the amount of income that is distributed. Nationwide is required to withhold this amount and send it to the Internal Revenue Service. Some distributions to non-resident aliens may be subject to a lower (or no) tax if a treaty applies. In order to obtain the benefits of such a treaty, the non-resident alien must: (1) provide Nationwide with proof of residency and citizenship (in accordance with Internal Revenue Service requirements); and (2) provide Nationwide with an individual taxpayer identification number. If the non-resident alien does not meet the above conditions, Nationwide will withhold 30% of income from the distribution. Another way to avoid the 30% withholding is for the non-resident alien to provide Nationwide with sufficient evidence that: (1) the distribution is connected to the non-resident alien's conduct of business in the United States; and (2) the distribution is includible in the non-resident alien's gross income for United States federal income tax purposes. 54 57 Note that these distributions may be subject to back-up withholding, currently 31%, if a correct taxpayer identification number is not provided. FEDERAL ESTATE, GIFT, AND GENERATION SKIPPING TRANSFER TAXES The following transfers may be considered a gift for federal gift tax purposes: - - a transfer of the contract from one contract owner to another; or - - a distribution to someone other than a contract owner. Upon the contract owner's death, the value of the contract may subject to estate taxes, even if all or a portion of the value is also subject to federal income taxes. Section 2612 of the Internal Revenue Code may require Nationwide to determine whether a death benefit or other distribution is a "direct skip" and the amount of the resulting generation skipping transfer tax, if any. A direct skip is when property is transferred to, or a death benefit or other distribution is made to: (a) an individual who is two or more generations younger than the contract owner; or (b) certain trusts, as described in Section 2613 of the Internal Revenue Code (generally, trusts that have no beneficiaries who are not 2 or more generations younger than the contract owner). If the contract owner is not an individual, then for this purpose ONLY, "contract owner" refers to any person: - - who would be required to include the contract, death benefit, distribution, or other payment in his or her federal gross estate at his or her death; or - - who is required to report the transfer of the contract, death benefit, distribution, or other payment for federal gift tax purposes. If a transfer is a direct skip, Nationwide will deduct the amount of the transfer tax from the death benefit, distribution or other payment, and remit it directly to the Internal Revenue Service. CHARGE FOR TAX Nationwide is not required to maintain a capital gain reserve liability on Non-Qualified Contracts. If tax laws change requiring a reserve, Nationwide may implement and adjust a tax charge. DIVERSIFICATION Internal Revenue Code Section 817(h) contains rules on diversification requirements for variable annuity contracts. A variable annuity contract that does not meet these diversification requirements will not be treated as an annuity, unless: - - the failure to diversify was accidental; - - the failure is corrected; and - - a fine is paid to the Internal Revenue Service. The amount of the fine will be the amount of tax that would have been paid by the contract owner if the income, for the period the contract was not diversified, had been received by the contract owner. If the violation is not corrected, the contract owner will be considered the owner of the underlying securities and will be taxed on the earnings of his or her contract. Nationwide believes that the investments underlying this contract meet these diversification requirements. TAX CHANGES The foregoing tax information is based on Nationwide's understanding of federal tax laws. It is NOT intended as tax advice. All information is subject to change without notice. For more details, contact your personal tax and/or financial advisor. STATEMENTS AND REPORTS Nationwide will mail contract owners statements and reports. Therefore, contract 55 58 owners should promptly notify Nationwide of any address change. These mailings will contain: - - statements showing the contract's quarterly activity; - - confirmation statements showing transactions that affect the contract's value. Confirmation statements will not be sent for recurring transactions (i.e., Dollar Cost Averaging or salary reduction programs). Instead, confirmation of recurring transactions will appear in the contract's quarterly statements; - - semi-annual reports as of June 30 containing financial statements for the variable account; and - - annual reports as of December 31 containing financial statements for the variable account. Contract owners should review statements and confirmations carefully. All errors or corrections must be reported to Nationwide immediately to assure proper crediting to the contract. Unless Nationwide is notified within 30 days of receipt of the statement, Nationwide will assume statements and confirmation statements are correct. LEGAL PROCEEDINGS Nationwide is a party to litigation and arbitration proceedings in the ordinary course of its business, none of which is expected to have a material adverse effect on Nationwide. In recent years, life insurance companies have been named as defendants in lawsuits, including class action lawsuits, relating to life insurance and annuity pricing and sales practices. A number of these lawsuits have resulted in substantial jury awards or settlements. In November 1997, two plaintiffs, one who was the owner of a variable life insurance contract and the other who was the owner of a variable annuity contract, commenced a lawsuit in a federal court in Texas against Nationwide Life Insurance Company and the American Century group of defendants (Robert Young and David D. Distad v. Nationwide Life Insurance Company et al.). In this lawsuit, plaintiffs sought to represent a class of variable life insurance contract owners and variable annuity contract owners whom they claim were allegedly misled when purchasing these variable contracts into believing that the performance of their underlying mutual fund option managed by American Century, whose shares may only be purchased by insurance companies, would track the performance of a mutual fund, also managed by American Century, whose shares are publicly traded. The amended complaint seeks unspecified compensatory and punitive damages. On April 27, 1998, the District Court denied, in part, and granted, in part, motions to dismiss the complaint filed by Nationwide and American Century. The remaining claims against Nationwide allege securities fraud, common law fraud, civil conspiracy, and breach of contract. The District Court, on December 2, 1998, issued an order denying plaintiffs' motion for class certification and the appeals court declined to review the order denying class certification upon interlocutory appeal. On June 11, 1999, the District Court denied the plaintiffs' motion to amend their complaint and reconsider class certification. In January 2000, Nationwide and American Century settled this lawsuit now limited to the claims of the two named plaintiffs. On February 9, 2000, the court dismissed this lawsuit with prejudice. On October 29, 1998, Nationwide was named in a lawsuit filed in Ohio state court related to the sale of deferred annuity products for use as investments in tax-deferred contributory retirement plans (Mercedes Castillo v. Nationwide Financial Services, Inc., Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company). On May 3, 1999, the complaint was amended to, among other things, add Marcus Shore as a second plaintiff. The amended complaint is brought as a class action on behalf of all persons who purchased individual deferred annuity contracts or participated in group annuity contracts sold 56 59 by Nationwide and the other named Nationwide affiliates which were used to fund certain tax-deferred retirement plans. The amended complaint seeks unspecified compensatory and punitive damages. No class has been certified. On June 11, 1999, Nationwide and the other named defendants filed a motion to dismiss the amended complaint. On March 8, 2000, the court denied the motion to dismiss the amended complaint filed by Nationwide and other named defendants. Nationwide intends to defend this lawsuit vigorously. There can be no assurance that any litigation relating to pricing or sales practices will not have a material adverse effect on Nationwide in the future. The general distributor, NISC, is not engaged in any litigation of any material nature. ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY ADVERTISING A "yield" and "effective yield" may be advertised for the NSAT Money Market Fund. "Yield" is a measure of the net dividend and interest income earned over a specific seven-day period (which period will be stated in the advertisement) expressed as a percentage of the offering price of the NSAT Money Market Fund's units. Yield is an annualized figure, which means that it is assumed that the NSAT Money Market Fund generates the same level of net income over a 52-week period. The "effective yield" is calculated similarly but includes the effect of assumed compounding, calculated under rules prescribed by the SEC. The effective yield will be slightly higher than yield due to this compounding effect. Nationwide may advertise the performance of a sub-account in relation to the performance of other variable annuity sub-accounts, underlying mutual fund options with similar or different objectives, or the investment industry as a whole. Other investments to which the sub-accounts may be compared include, but are not limited to: - - precious metals; - - real estate; - - stocks and bonds; - - closed-end funds; - - bank money market deposit accounts and passbook savings; - - CDs; and - - the Consumer Price Index. Market Indexes The sub-accounts will be compared to certain market indexes, such as: - - S&P 500; - - Shearson/Lehman Intermediate Government/Corporate Bond Index; - - Shearson/Lehman Long-Term Government/Corporate Bond Index; - - Donoghue Money Fund Average; - - U.S. Treasury Note Index; - - Bank Rate Monitor National Index of 2-1/2 Year CD Rates; and - - Dow Jones Industrial Average. Tracking & Rating Services; Publications Nationwide's rankings and ratings are sometimes published by other services, such as: - - Lipper Analytical Services, Inc.; - - CDA/Wiesenberger; - - Morningstar; - - Donoghue's; - - magazines such as: Money; Forbes; Kiplinger's Personal Finance Magazine; Financial World; Consumer Reports; Business Week; Time; Newsweek; National Underwriter; and News and World Report; - - LIMRA; - - Value; - - Best's Agent Guide; - - Western Annuity Guide; - - Comparative Annuity Reports; - - Wall Street Journal; - - Barron's; 57 60 - - Investor's Daily; - - Standard & Poor's Outlook; and - - Variable Annuity Research & Data Service (The VARDS Report). These rating services and publications rank the underlying mutual funds' performance against other funds. These rankings may or may not include the effects of sales charges or other fees. Financial Rating Services Nationwide is also ranked and rated by independent financial rating services, among which are Moody's, Standard & Poor's and A.M. Best Company. Nationwide may advertise these ratings. These ratings reflect Nationwide's financial strength or claims-paying ability. The ratings are not intended to reflect the investment experience or financial strength of the variable account. Some Nationwide advertisements and endorsements may include lists of organizations, individuals or other parties that recommend Nationwide or the contract. Furthermore, Nationwide may occasionally advertise comparisons of currently taxable and tax deferred investment programs, based on selected tax brackets, or discussions of alternative investment vehicles and general economic conditions. Historical Performance of the Sub-Accounts Nationwide will advertise historical performance of the sub-accounts. Nationwide may advertise for the sub-account's standardized average annual total return ("standardized return") calculated in a manner prescribed by the SEC, and non-standardized average annual total return ("non-standardized return"). Standardized return shows the percentage rate of return of a hypothetical initial investment of $1,000 for the most recent one, five and ten year periods (or for a period covering the time the underlying mutual fund has been available in the variable account if it has not been available for one of the prescribed periods). This calculation reflects the standard 7 year CDSC schedule and the charges that could be assessed to a contract if the maximum rider options for a contract issued as a Tax Sheltered Annuity are chosen (2.70%). Standardized return does not reflect the deduction of state premium taxes, which may be imposed by certain states. Non-standardized return is calculated similarly to standardized return except non-standardized return assumes an initial investment of $25,000, with variable account charges of 0.95%. No CDSC is reflected. An assumed initial investment of $25,000 is used because that amount more accurately reflects the average contract size. Both methods of calculation reflect total return for the most recent one, five and ten year periods (or for a period covering the time the underlying mutual fund has been in existence). For those underlying mutual funds which have not been available for one of the prescribed periods, the nonstandardized total return illustrations will show the investment performance the underlying mutual funds would have achieved had they been available in the variable account for one of the periods. If the underlying mutual fund has been available in the variable account for less than one year (or if the underlying mutual fund has been effective for less than one year) standardized and non-standardized performance is not annualized. The standardized average annual total return and nonstandardized total return quotations are calculated using data for the period ended December 31, 1999. However, Nationwide generally provides performance information more frequently. Information relating to performance of the sub-accounts is based on historical earnings and does not represent or guarantee future results. 58 61 SUB-ACCOUNT PERFORMANCE SUMMARY STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
10 Years or Date Fund Available in Date Fund the Variable Available in 1 Year 5 Years Account the Variable Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account American Century Variable Portfolios, Inc. - American 8.57% N/A 17.59% 11/03/97 Century VP Income & Growth American Century Variable Portfolios, Inc. - American 53.48% N/A 31.44% 11/03/97 Century VP International American Century Variable Portfolios, Inc. - American -9.59% N/A -2.06% 11/03/97 Century VP Value Dreyfus Investment Portfolios - European Equity N/A N/A 57.11% 09/27/99 Portfolio The Dreyfus Socially Responsible Growth Fund, Inc. 20.34% N/A 23.02% 11/03/97 Dreyfus Stock Index Fund, Inc. 11.09% N/A 19.07% 11/03/97 Dreyfus Variable Investment Fund - Appreciation 2.17% N/A 14.98% 11/03/97 Portfolio (formerly, Dreyfus Variable Investment Fund - - Capital Appreciation Portfolio) Federated Insurance Series - Federated Quality Bond N/A N/A -9.19% 05/03/99 Fund II Fidelity VIP Equity-Income Portfolio: Service Class -2.90% N/A 4.65% 11/03/97 Fidelity VIP Growth Portfolio: Service Class 27.38% N/A 29.97% 11/03/97 Fidelity VIP High Income Portfolio: Service Class -1.13% N/A -3.10% 11/03/97 Fidelity VIP Overseas Portfolio: Service Class 32.43% N/A 18.70% 11/03/97 Fidelity VIP II Contrafund(R) Portfolio: Service Class 14.56% N/A 19.30% 11/03/97 Fidelity VIP III Growth Opportunities Portfolio: -4.92% N/A 9.67% 11/03/97 Service Class NSAT Capital Appreciation Fund -4.84% N/A 11.94% 11/03/97 NSAT Government Bond Fund -10.94% N/A -1.66% 11/03/97 NSAT Money Market Fund -4.29% N/A -0.21% 10/31/97 NSAT Total Return Fund -2.24% N/A 7.45% 11/03/97 NSAT Nationwide Balanced Fund -8.03% N/A -0.53% 11/03/97 NSAT Nationwide Equity Income Fund 9.02% N/A 11.12% 11/03/97 NSAT Nationwide Global 50 Fund (formerly, NSAT 13.35% N/A 14.68% 11/03/97 Nationwide Global Equity Fund) NSAT Nationwide High Income Bond Fund -5.89% N/A -0.06% 11/03/97 NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 11.39% N/A 8.90% 11/03/97 Nationwide Select Advisers Mid Cap Fund) NSAT Nationwide Multi Sector Bond Fund -7.40% N/A -2.88% 11/03/97 NSAT Nationwide Small Cap Growth Fund (formerly, NSAT N/A N/A 95.29% 05/03/99 Nationwide Select Advisers Small Cap Growth Fund) NSAT Nationwide Small Cap Value Fund 18.13% N/A 4.31% 11/03/97 NSAT Nationwide Small Company Fund 33.92% N/A 11.59% 11/03/97 NSAT Nationwide Strategic Growth Fund 73.68% N/A 37.52% 11/03/97 NSAT Nationwide Strategic Value Fund -11.61% N/A -5.66% 11/03/97 Neuberger Berman AMT Guardian Portfolio 5.56% N/A 18.71% 11/03/97
59 62 STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
10 Years or Date Fund Available in Date Fund the Variable Available in 1 Year 5 Years Account the Variable Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account Neuberger Berman AMT Mid-Cap Growth Portfolio 43.58% N/A 47.65% 11/03/97 Neuberger Berman AMT Partners Portfolio -1.82% N/A 0.76% 11/03/97 Oppenheimer Variable Account Funds - Oppenheimer 72.59% N/A 31.53% 11/03/97 Aggressive Growth Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund) Oppenheimer Variable Account Funds - Oppenheimer 31.63% N/A 23.52% 11/03/97 Capital Appreciation Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund) Oppenheimer Variable Account Funds - Oppenheimer Main 12.17% N/A 8.03% 11/03/97 Street Growth & Income Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund) The Universal Institutional Funds, Inc. - Emerging 19.65% N/A -6.61% 11/03/97 Markets Debt Portfolio (formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio) Van Eck Worldwide Insurance Trust - Worldwide 88.86% N/A 2.00% 11/03/97 Emerging Markets Fund Van Eck Worldwide Insurance Trust - Worldwide Hard 11.48% N/A -16.88% 11/03/97 Assets Fund Van Kampen Life Investment Trust - Morgan Stanley -11.87% N/A -10.09% 11/03/97 Real Estate Securities Portfolio Warburg Pincus Trust - Global Post-Venture Capital 52.95% N/A 17.05% 11/03/97 Portfolio (formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio) Warburg Pincus Trust - International Equity Portfolio 43.11% N/A 13.69% 11/03/97 Warburg Pincus Trust - Value Portfolio (formerly, -2.91% N/A 5.09% 11/03/97 Warburg Pincus Trust - Growth & Income Portfolio)
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN $25,000 INITIAL INVESTMENT PLEASE NOTE: THE PERFORMANCE NUMBERS BELOW REFLECT THE DEDUCTION OF THE AMOUNT ASSESSED FOR THE BASE CONTRACT 0.95% (A CONTRACT WITH NO RIDER OPTIONS). FOR CONTRACT OWNERS WHO HAVE CHOSEN ONE OR MORE RIDER OPTIONS, THE FUND PERFORMANCE AS SHOWN WOULD BE REDUCED IN ACCORDANCE TO THE COSTS OF THE RIDER OPTIONS SELECTED.
10 Years to 12/31/99 1 Year 5 Years or Life of Date Fund Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective American Century Variable Portfolios, Inc. - American 16.90% N/A 23.53% 10/30/97 Century VP Income & Growth American Century Variable Portfolios, Inc. - American 62.49% 23.12% 18.94% 05/02/94 Century VP International American Century Variable Portfolios, Inc. - American -1.79% N/A 12.81% 05/01/96 Century VP Value
60 63
10 Years to 12/31/99 1 Year 5 Years or Life of Date Fund Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective Dreyfus Investment Portfolios - European Equity N/A N/A 28.38% 04/30/99 Portfolio The Dreyfus Socially Responsible Growth Fund, Inc. 28.84% 27.45% 22.93% 10/06/93 Dreyfus Stock Index Fund, Inc. 19.46% 26.64% 16.48% 09/29/89 Dreyfus Variable Investment Fund - Appreciation 10.40% 24.09% 18.75% 04/05/93 Portfolio (formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio) Federated Insurance Series - Federated Quality Bond N/A N/A -2.65% 04/22/99 Fund II Fidelity VIP Equity-Income Portfolio: Service Class 5.25% 17.45% 13.39% 10/09/86 Fidelity VIP Growth Portfolio: Service Class 35.98% 28.46% 18.78% 10/09/86 Fidelity VIP High Income Portfolio: Service Class 7.05% 9.76% 11.35% 09/19/85 Fidelity VIP Overseas Portfolio: Service Class 41.11% 16.21% 10.35% 01/28/87 Fidelity VIP II Contrafund(R) Portfolio: Service Class 22.97% N/A 26.18% 01/03/95 Fidelity VIP III Growth Opportunities Portfolio: 3.19% N/A 20.35% 01/03/95 Service Class NSAT Capital Appreciation Fund 3.29% 23.19% 16.17% 04/15/92 NSAT Government Bond Fund -3.28% 6.45% 6.65% 11/08/82 NSAT Money Market Fund 3.85% 4.23% 4.00% 11/10/81 NSAT Total Return Fund 5.93% 19.56% 13.66% 11/08/82 NSAT Nationwide Balanced Fund -0.09% N/A 3.77% 10/31/97 NSAT Nationwide Equity Income Fund 17.37% N/A 15.25% 10/31/97 NSAT Nationwide Global 50 Fund (formerly, NSAT 21.76% N/A 18.77% 10/31/97 Nationwide Global Equity Fund) NSAT Nationwide High Income Bond Fund 2.21% N/A 4.22% 10/31/97 NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 19.77% N/A 13.19% 10/31/97 Nationwide Select Advisers Mid Cap Fund) NSAT Nationwide Multi Sector Bond Fund 0.59% N/A 1.43% 10/31/97 NSAT Nationwide Small Cap Growth Fund (formerly, NSAT N/A N/A 103.72% 05/03/99 Nationwide Select Advisers Small Cap Growth Fund) NSAT Nationwide Small Cap Value Fund 26.62% N/A 8.54% 10/31/97 NSAT Nationwide Small Company Fund 42.65% N/A 22.06% 10/23/95 NSAT Nationwide Strategic Growth Fund 83.00% N/A 41.46% 10/31/97 NSAT Nationwide Strategic Value Fund -3.99% N/A -1.46% 10/31/97 Neuberger Berman AMT Guardian Portfolio 13.84% N/A 22.87% 11/03/97 Neuberger Berman AMT Mid-Cap Growth Portfolio 52.43% N/A 51.80% 11/03/97 Neuberger Berman AMT Partners Portfolio 6.35% 19.89% 16.38% 03/22/94 Oppenheimer Variable Account Funds - Oppenheimer 81.86% 28.48% 19.29% 08/15/86 Aggressive Growth Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund) Oppenheimer Variable Account Funds - Oppenheimer 40.31% 29.43% 17.34% 04/03/85 Capital Appreciation Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund) Oppenheimer Variable Account Funds - Oppenheimer Main 20.55% N/A 24.61% 07/05/95 Street Growth & Income Fund/VA (formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund)
61 64
10 Years to 12/31/99 1 Year 5 Years or Life of Date Fund Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective The Universal Institutional Funds, Inc. - Emerging 28.15% N/A -3.59% 06/19/97 Markets Debt Portfolio (formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio) Van Eck Worldwide Insurance Trust - Worldwide Emerging 98.38% N/A 8.93% 12/21/95 Markets Fund Van Eck Worldwide Insurance Trust - Worldwide Hard 19.85% 0.52% 2.08% 09/01/89 Assets Fund Van Kampen Life Investment Trust - Morgan Stanley Real -4.29% N/A 9.45% 07/03/95 Estate Securities Portfolio Warburg Pincus Trust - Global Post-Venture Capital 61.95% N/A 21.26% 09/30/96 Portfolio (formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio) Warburg Pincus Trust - International Equity Portfolio 51.98% N/A 13.75% 06/30/95 Warburg Pincus Trust - Value Portfolio (formerly, 5.23% N/A 9.30% 10/31/97 Warburg Pincus Trust - Growth & Income Portfolio)
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Fund: Service Shares, and the Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no sub-account performance is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund: Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund: Class A were added to the variable account effective May 1, 2000. Therefore, no sub-account performance is available. The following underlying mutual funds were added to the variable account effective May 1, 2000. Therefore, no sub-account performance is available: - Evergreen Variable Trust - Evergreen VA Blue Chip Fund - Evergreen Variable Trust - Evergreen VA Capital Growth Fund - Evergreen Variable Trust - Evergreen VA Equity Index Fund - Evergreen Variable Trust - Evergreen VA Foundation Fund - Evergreen Variable Trust - Evergreen VA Fund - Evergreen Variable Trust - Evergreen VA Global Leaders Fund - Evergreen Variable Trust - Evergreen VA Growth and Income Fund - Evergreen Variable Trust - Evergreen VA International Growth Fund - Evergreen Variable Trust - Evergreen VA Masters Fund - Evergreen Variable Trust - Evergreen VA Omega Fund - Evergreen Variable Trust - Evergreen VA Small Cap Value Fund - Evergreen Variable Trust - Evergreen VA Special Equity Fund - Evergreen Variable Trust - Evergreen VA Strategic Income Fund 62 65 TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
PAGE General Information and History........................................... 1 Services.................................................................. 1 Purchase of Securities Being Offered...................................... 2 Underwriters.............................................................. 2 Calculations of Performance............................................... 2 Annuity Payments.......................................................... 3 Financial Statements...................................................... 4
63 66 APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS The underlying mutual funds listed below are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies. There is no guarantee that the investment objectives will be met. AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN CENTURY(SM) FAMILY OF INVESTMENTS American Century Variable Portfolios, Inc. was organized as a Maryland corporation in 1987. It is a diversified, open-end investment management company that offers its shares only as investment vehicles for variable annuity and variable life insurance products of insurance companies. American Century Variable Portfolios, Inc. is managed by American Century Investment Management, Inc. AMERICAN CENTURY VP INCOME & GROWTH Investment Objective: Dividend growth, current income and capital appreciation. The Fund seeks to achieve its investment objective by investing in common stocks. The investment manager constructs the portfolio to match the risk characteristics of the S&P 500 Stock Index and then optimizes each portfolio to achieve the desired balance of risk and return potential. This includes targeting a dividend yield that exceeds that of the S&P 500. Such a management technique known as "portfolio optimization" may cause the Fund to be more heavily invested in some industries than in others. However, the Fund may not invest more than 25% of its total assets in companies whose principal business activities are in the same industry. AMERICAN CENTURY VP INTERNATIONAL Investment Objective: To seek capital growth. The Fund will seek to achieve its investment objective by investing primarily in securities of foreign companies that meet certain fundamental and technical standards of selection and, in the opinion of the investment manager, have potential for appreciation. Under normal conditions, the Fund will invest at least 65% of its assets in common stocks or other equity securities of issuers from at least three countries outside the United States. While securities of United States issuers may be included in the portfolio from time to time, it is the primary intent of the manager to diversify investments across a broad range of foreign issuers. Although the primary investment of the Fund will be common stocks (defined to include depository receipts for common stock and other equity equivalents), the Fund may also invest in other types of securities consistent with the Fund's objective. When the manager believes that the total capital growth potential of other securities equals or exceeds the potential return of common stocks, the Fund may invest up to 35% of its assets in such other securities. There can be no assurance that the Fund will achieve its objectives. AMERICAN CENTURY VP VALUE Investment Objective: The investment objective of the Fund is long-term capital growth; income is a secondary objective. The equity securities in which the Fund will invest will be primarily securities of well-established companies with intermediate-to-large market capitalizations that are believed by management to be undervalued at the time of purchase. Under normal market conditions, the Fund expects to invest at least 80% of the value of its total asset in equity securities, including common and preferred stock, convertible preferred stock and convertible debt obligations. DREYFUS INVESTMENT PORTFOLIOS Dreyfus Investment Portfolios (the "Fund") is an open-end, management investment company known as a mutual fund. Shares are offered only to variable annuity and variable life insurance separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies and to qualified pension and retirement plans. 64 67 Individuals may not purchase shares directly from the Fund. The Dreyfus Corporation serves as the Fund's investment adviser. EUROPEAN EQUITY PORTFOLIO Investment Objective: The Portfolio seeks long-term capital growth. To pursue this goal, the Portfolio generally invests at least 80% of its total assets in stocks included within the universe of the 300 largest European companies. The Portfolio may invest up to 10% of its total assets in the stocks of non-European companies. The Portfolio's stock investments may include common stocks, preferred stocks and convertible securities. DREYFUS STOCK INDEX FUND, INC. The Dreyfus Stock Index Fund, Inc. is an open-end, non-diversified, management investment company incorporated under Maryland law on January 24, 1989 and commenced operations on September 29, 1989. The Fund offers its shares only as investment vehicles for variable annuity and variable life insurance products of insurance companies. The Dreyfus Corporation ("Dreyfus") serves as the Fund's manager, while Mellon Equity Associates, an affiliate of Dreyfus, serves as the Fund's index manager. Dreyfus is a wholly owned subsidiary of Mellon Bank, N.A., which is a wholly owned subsidiary of Mellon Bank Corporation. Investment Objective: To provide investment results that correspond to the price and yield performance of publicly traded common stocks in the aggregate, as represented by the Standard & Poor's 500 Composite Stock Price Index. The Fund is neither sponsored by nor affiliated with Standard & Poor's Corporation. DREYFUS VARIABLE INVESTMENT FUND Dreyfus Variable Investment Fund is an open-end, management investment company. It was organized as an unincorporated business trust under the laws of the Commonwealth of Massachusetts on October 29, 1986 and commenced operations on August 31, 1990. The Fund offers its shares only as investment vehicles for variable annuity and variable life insurance products of insurance companies. Dreyfus serves as the Fund's manager. Fayez Sarofim & Company serves as the sub-adviser and provides day-to-day management of the Portfolio. APPRECIATION PORTFOLIO (FORMERLY, CAPITAL APPRECIATION PORTFOLIO) Investment Objective: The Portfolio's primary investment objective is to provide long-term capital growth consistent with the preservation of capital; current income is a secondary investment objective. This Portfolio invests primarily in the common stocks of domestic and foreign issuers. THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC. The Dreyfus Socially Responsible Growth Fund, Inc. is an open-end, diversified, management investment company incorporated under Maryland law on July 20, 1992 and commenced operations on October 7, 1993. The Fund offers its share only as investment vehicles for variable annuity and variable life insurance products of insurance companies. Dreyfus serves as the Fund's investment adviser. NCM Capital Management Group, Inc. serves as the Fund's sub-investment adviser and provides day-to-day management of the Fund's portfolio. Investment Objective: Capital growth through equity investment in companies that, in the opinion of the Fund's advisers, not only meet traditional investment standards, but which also show evidence that they conduct their business in a manner that contributes to the enhancement of the quality of life in America. Current income is secondary to the primary goal. EVERGREEN VARIABLE TRUST The Evergreen Variable Trust ("Trust") is an open-end management investment company commonly referred to as a Mutual Fund. The Trust is designed to provide investors with a selection of investment alternatives which seek to provide capital growth, income and diversification through its investment series (the "Funds"). Shares of the Funds are sold to separate accounts funding variable annuity 65 68 contracts and variable life insurance policies issued by life insurance companies. The investment adviser to the Evergreen VA Blue Chip Fund, Evergreen VA Capital Growth Fund, Evergreen VA Fund, Evergreen VA Foundation Fund, Evergreen VA Growth and Income Fund, Evergreen VA Global Leaders Fund and Evergreen VA Small Cap Value Fund and Evergreen VA Special Equity Fund is Evergreen Asset Management Corp., a wholly-owned subsidiary of First Union National Bank of North Carolina ("FUNB"), which in turn is a subsidiary of First Union Corporation. The Capital Management Group of FUNB serves as investment adviser to Evergreen VA Omega Fund. The First Capital Group of FUNB serves as investment adviser to the Evergreen VA Equity Index Fund. The investment adviser to the Evergreen VA Strategic Income Fund is Evergreen Investment Management Company, a wholly-owned subsidiary of FUNB. EVERGREEN VA BLUE CHIP FUND Investment Objective: Seeks capital growth with the potential for income. The Fund seeks to meet its objective by investing primarily in common stocks of well-established, large U.S. companies with a long history of performance, typically recognizable names representing a broad range of securities. EVERGREEN VA CAPITAL GROWTH FUND Investment Objective: Seeks to provide long-term capital growth. The Fund seeks to meet its objective by investing primarily in common stocks of large U.S. companies which its portfolio managers believe have the potential for capital appreciation over the intermediate and long-term. The Fund may also invest without limit in preferred stocks, convertible securities and any other securities that the portfolio managers believe may permit the Fund to achieve its investment objective. EVERGREEN VA EQUITY INDEX FUND Investment Objective: Seeks investment results that achieve price and yield performance similar to the S&P 500 Index. The Fund seeks to meet its objective by investing substantially all of its total assets in equity securities that represent a composite of the S&P 500 Index. EVERGREEN VA FOUNDATION FUND Investment Objective: Seeks, in order of priority: reasonable income, conservation of capital and capital appreciation. The Fund seeks to meet its objective by investing, under normal conditions, at least 25% of its assets in debt securities and the remainder in equity securities. The equity securities that the Fund invests in will include common stocks, preferred stocks and securities convertible or exchangeable for common stocks. The Fund's fixed income portion will include corporate debt securities issued by the U.S. Treasury or by an agency or instrumentally of the U.S. government, bank obligations, and high quality commercial paper. EVERGREEN VA FUND Investment Objective: Seeks to achieve long-term capital growth. The Fund seeks to meet its objective by investing primarily in the common stocks of large U.S. companies. EVERGREEN VA GLOBAL LEADERS FUND Investment Objective: Seeks to provide investors with long-term capital growth. The Fund seeks to meet its objective by investing at least 65% of its assets in a diversified portfolio of U.S. and non-U.S. equity securities of companies located in the world's major industrialized countries. The Fund's investment advisor will screen the largest companies in major industrialized countries and the Fund will invest in the 100 best companies selected by the investment advisor based on qualitative and quantitative criteria such as high return on equity, consistent earnings growth and established market presence. EVERGREEN VA GROWTH AND INCOME FUND Investment Objective: Seeks capital growth in the value of its shares and current income. The Fund seeks to meet its 66 69 objective by investing primarily in common stock and securities convertible into or exchangeable for common stocks of mid-sized U.S. companies. The Fund may also invest up to 25% of its assets in foreign securities. EVERGREEN VA INTERNATIONAL GROWTH FUND Investment Objective: Seeks long-term growth of capital and secondarily, modest income. The Fund invests primarily in equity securities issued by well-established, quality companies located in countries with developed markets. The Fund may invest a portion of its assets in equity securities of companies located in certain emerging markets countries and the formerly communist countries of eastern Europe. EVERGREEN VA MASTERS FUND Investment Objectives: The Fund's investment objective is to seek long-term capital growth. The Fund's investment program is based on the Manager of Managers Strategy of First Union Bank's Evergreen Investment Management division (EIM). EIM allocates the Fund's portfolio assets on an approximately equal basis among a number of investment management organizations, each of which employs a different style. EIM has ultimate responsibility for the investment performance of the Fund. The style of each investment management organization is described below. EIM will continuously monitor the performance and investment styles of the Fund's portfolio managers. There can be no assurance that the Fund's investment objective will be achieved. Evergreen Asset Management Corp. ("Evergreen") will invest it's segment of the Fund's assets according to a value oriented strategy. Evergreen will invest in equity securities of U.S. and foreign companies with market capitalizations falling within the range of the Russell Midcap Growth Index of the time of the Fund's investment between approximately $500 million and $5 billion. Evergreen will invest in companies it believes the market has temporarily undervalued in relation to such factors as the company's assets, cash flow and earnings potential. MFS Institutional Advisors, Inc. ("MFS") will invest its segment of the portfolio according to its growth oriented investment strategy by primarily investing in equity securities of companies with market capitalizations falling within the range of the Russell Midcap Growth Index at the time of the Fund's investment. Such companies generally would be expected to show earnings growth over time that is well above the growth rate of the overall economy and the rate of inflation, and would have the products, management and market opportunities which are usually necessary to continue sustained growth. MFS may invest up to 25% (and generally expects to invest between 1% and 10%) of its segment of the Fund's assets in foreign securities. OppenheimerFunds, Inc. ("Oppenheimer") manages its segment of the portfolio in accordance with a blended growth and value investment strategy. Investments are primarily in equity securities of those companies with market capitalizations over $5 billion; however, Oppenheimer may, when it deems advisable, invest in the equity securities of mid-cap and small-cap companies. In purchasing portfolio securities, Oppenheimer may invest without limit in foreign securities and may, to a limited degree, invest in non-convertible debt securities and preferred stocks which have the potential for capital appreciation. Putnam Investment Management, Inc. ("Putnam") invests its segment of the portfolio primarily, in accordance with its growth oriented investment strategy, in equity securities of U.S. and foreign issuers with market capitalizations of $3 billion or more. Putnam may also purchase non-convertible debt securities which offer the 67 70 opportunity for capital appreciation. In the evaluation of a company, more consideration is given to growth potential than to dividend income. EVERGREEN VA OMEGA FUND Investment Objective: Seeks long-term capital growth. The Fund seeks to meet its objective by investing primarily in common stocks and securities convertible into common stocks of U.S. companies across all market capitalizations. EVERGREEN VA SMALL CAP VALUE FUND Investment Objective: Seeks current income and capital growth in the value of its shares. The Fund seeks to meet its objective by investing primarily in common stocks of small U.S. companies (less than $1 billion in market capitalization). The Fund's equity securities will include common stocks and securities convertible into common stock. EVERGREEN VA SPECIAL EQUITY FUND Investment Objective: Seeks capital growth. The Fund invests primarily in equity securities of U.S. companies with small market capitalizations. The Fund strives to provide a return greater than stock market indices such as the Russell 2000 Index by investing principally in a diversified portfolio of common stocks of domestic companies. The Fund may purchase stocks initial public offerings ("IPOs"). EVERGREEN VA STRATEGIC INCOME FUND Investment Objective: Seeks high current income from interest on debt securities and secondarily, considers potential for growth of capital in selecting securities. The Fund seeks to meet its objective by allocating its assets principally between domestic high yield, high risk bonds and debt securities (which may be denominated in U.S. dollars or in non-U.S. currencies) of foreign governments and foreign corporations. In addition, the Fund will, from time to time, allocate a portion of its assets to U.S. government securities, including zero-coupon U.S. Treasury securities, mortgage-backed securities and money market instruments. From time to time, the Fund may invest 100% of its assets in U.S. or foreign securities. While the Fund may invest in securities of any maturity, it is currently expected that the Fund will not invest in securities with maturities of more than 30 years. FEDERATED INSURANCE SERIES Federated Insurance Series (the "Trust"), an Open-End Management Investment Company, was established as a Massachusetts business trust, under a Declaration of Trust dated September 15, 1993. The Trust offers its shares only as investment vehicles for variable annuity and variable life insurance products of insurance companies. Federated Investment Management Company serves as the investment adviser. FEDERATED QUALITY BOND FUND II Investment Objective: Current income by investing in investment grade fixed income securities. FIDELITY VARIABLE INSURANCE PRODUCTS FUND The Fidelity Variable Insurance Products Fund (VIP) is an open-end, diversified, management investment company organized as a Massachusetts business trust on November 13, 1981. Shares of VIP are purchased by insurance companies to fund benefits under variable life insurance policies and variable annuity contracts. Fidelity Management & Research Company ("FMR") is the manager for VIP and its portfolios. VIP EQUITY-INCOME PORTFOLIO: SERVICE CLASS Investment Objective: Reasonable income by investing primarily in income-producing equity securities. In choosing these securities FMR also will consider the potential for capital appreciation. The Portfolio's goal is to achieve a yield which exceeds the composite yield on the securities comprising the Standard & Poor's 500 Composite Stock Price Index. 68 71 VIP GROWTH PORTFOLIO: SERVICE CLASS Investment Objective: Capital appreciation. This Portfolio will invest in the securities of both well-known and established companies, and smaller, less well-known companies which may have a narrow product line or whose securities are thinly traded. These latter securities will often involve greater risk than may be found in the ordinary investment security. FMR's analysis and expertise plays an integral role in the selection of securities and, therefore, the performance of the Portfolio. Many securities which FMR believes would have the greatest potential may be regarded as speculative, and investment in the Portfolio may involve greater risk than is inherent in other underlying mutual funds. It is also important to point out that this Portfolio makes sense for you if you can afford to ride out changes in the stock market because it invests primarily in common stocks. FMR can also make temporary investments in securities such as investment-grade bonds, high-quality preferred stocks and short-term notes, for defensive purposes when it believes market conditions warrant. VIP HIGH INCOME PORTFOLIO: SERVICE CLASS Investment Objective: High level of current income by investing primarily in high-risk, lower-rated, high-yielding, fixed-income securities, while also considering growth of capital. FMR will seek high current income normally by investing the Portfolio's assets as follows: - at least 65% in income-producing debt securities and preferred stocks, including convertible securities - up to 20% in common stocks and other equity securities when consistent with the Portfolio's primary objective or acquired as part of a unit combining fixed-income and equity securities Higher yields are usually available on securities that are lower-rated or that are unrated. Lower-rated securities are usually defined as Ba or lower by Moody's Investor Service, Inc. ("Moody's"); BB or lower by Standard & Poor's and may be deemed to be of a speculative nature. The Portfolio may also purchase lower-quality bonds such as those rated Ca3 by Moody's or C- by Standard & Poor's which provide poor protection for payment of principal and interest (commonly referred to as "junk bonds"). For a further discussion of lower-rated securities, please see the "Risks of Lower-Rated Debt Securities" section of the Portfolio's prospectus. VIP OVERSEAS PORTFOLIO: SERVICE CLASS Investment Objective: Long-term capital growth primarily through investments in foreign securities. This Portfolio provides a means for investors to diversify their own portfolios by participating in companies and economies outside the United States. FIDELITY VARIABLE INSURANCE PRODUCTS FUND II The Fidelity Variable Insurance Products Fund II (VIP II) is an open-end, diversified, management investment company organized as a Massachusetts business trust on March 21, 1988. VIP II's shares are purchased by insurance companies to fund benefits under variable life insurance policies and variable annuity contracts. FMR is the manager of VIP II and its portfolios. VIP II CONTRAFUND(R) PORTFOLIO: SERVICE CLAss Investment Objective: To seek capital appreciation by investing primarily in companies that FMR believes to be undervalued due to an overly pessimistic appraisal by the public. This strategy can lead to investments in domestic or foreign companies, small and large, many of which may not be well known. The Portfolio primarily invests in common stock and securities convertible into common stock, but it has the flexibility to invest in any type of security that may produce capital appreciation. 69 72 FIDELITY VARIABLE INSURANCE PRODUCTS FUND III The Fidelity Variable Insurance Products Fund III (VIP III) is an open-end, diversified, management investment company organized as a Massachusetts business trust on July 14, 1994. VIP III's shares are purchased by insurance companies to fund benefits under variable life insurance policies and variable annuity contracts. FMR is the manager of VIP III and it's portfolios. VIP III GROWTH OPPORTUNITIES PORTFOLIO: SERVICE CLASS Investment Objective: Capital growth by investing primarily in common stocks and securities convertible into common stocks. The Portfolio, under normal conditions, will invest at least 65% of its total assets in securities of companies that FMR believes have long-term growth potential. Although the Portfolio invests primarily in common stock and securities convertible into common stock, it has the ability to purchase other securities, such as preferred stock and bonds, that may produce capital growth. The Portfolio may invest in foreign securities without limitation. JANUS ASPEN SERIES The Janus Aspen Series is an open-end management investment company whose shares are offered in connection with investment in and payments under variable annuity contracts and variable life insurance policies, as well as certain qualified retirement plans. Janus Capital Corporation serves as investment adviser to each Portfolio. CAPITAL APPRECIATION PORTFOLIO: SERVICE SHARES Investment Objective: Seeks long-term growth of capital by investing primarily in common stocks selected for their growth potential. The Portfolio may invest in companies of any size, from larger, well-established companies to smaller, emerging growth companies. GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES Investment Objective: Seeks long-term growth of capital by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. Under normal circumstances, the portfolio invests at least 65% of its total assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology. INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES Investment Objective: Seeks long-term growth of capital by investing at least 65% of its total assets in securities of issuers from at least five different countries, excluding the United States. Although the Portfolio intends to invest substantially all of its assets in issuers located outside the United States, it may invest in U.S. issuers and it may at times invest all of its assets in fewer than five countries, or even a single country. NATIONWIDE SEPARATE ACCOUNT TRUST Nationwide Separate Account Trust ("NSAT") is a diversified open-end management investment company created under the laws of Massachusetts. NSAT offers shares in the mutual funds listed below, each with its own investment objectives. Shares of NSAT will be sold primarily to separate accounts to fund the benefits under variable life insurance policies and variable annuity contracts issued by life insurance companies. The assets of NSAT are managed by Villanova Mutual Fund Capital Trust ("VMF"), an indirect subsidiary of Nationwide Financial Services, Inc. CAPITAL APPRECIATION FUND Investment Objective: Long-term capital appreciation. GOVERNMENT BOND FUND Investment Objective: As high a level of income as is consistent with the preservation of capital by investing in a diversified portfolio of securities issued or 70 73 backed by the U.S. Government, its agencies or instrumentalities. MONEY MARKET FUND Investment Objective: As high a level of current income as is consistent with the preservation of capital and maintenance of liquidity. TOTAL RETURN FUND Investment Objective: To obtain a reasonable, long-term total return on invested capital. SUBADVISED NATIONWIDE FUNDS NATIONWIDE BALANCED FUND Subadviser: J.P. Morgan Investment Management, Inc. Investment Objective: Primarily seeks above-average income compared to a portfolio entirely invested in equity securities. The Fund's secondary objective is to take advantage of opportunities for growth of capital and income. The Fund seeks its objective primarily through investments in a broad variety of securities, including equity securities, fixed-income securities and short-term obligations. Under normal market conditions, it is anticipated that the Fund will invest at least 40% of the Fund's total assets in equity securities and at least 25% in fixed-income senior securities. The Fund's subadviser will have discretion to invest in the full range of maturities of fixed-income securities. Generally, most of the Fund's long-term debt investments will consist of "investment grade" securities, but the Fund may invest up to 20% of its net assets in non-convertible fixed-income securities rated below investment grade or determined by the subadviser to be of comparable quality. These securities are commonly known as junk bonds. In addition, the Fund may invest an unlimited amount in convertible securities rated below investment grade. NATIONWIDE EQUITY INCOME FUND Subadviser: Federated Investment Counseling Investment Objective: Seeks above average income and capital appreciation by investing at least 65% of its assets in income-producing equity securities. Such equity securities include common stocks, preferred stocks, and securities (including debt securities) that are convertible into common stocks. The portion of the Fund's total assets invested in each type of equity security will vary according to the Fund's subadviser's assessment of market, economic conditions and outlook. NATIONWIDE GLOBAL 50 FUND (FORMERLY, NATIONWIDE GLOBAL EQUITY FUND) Subadviser: J. P. Morgan Investment Management Inc. Investment Objective: To provide high total return from a globally diversified portfolio of equity securities. Total return will consist of income plus realized and unrealized capital gains and losses. The Fund seeks its investment objective through country allocation, stock selection and management of currency exposure. Under normal market conditions, J.P. Morgan Investment Management Inc. intends to keep the Fund essentially fully invested with at least 65% of the value of its total assets in equity securities consisting of common stocks and other securities with equity characteristics such as preferred stocks, warrants, rights, convertible securities, trust certificates, limited partnership interests and equity participations. The Fund's primary equity instruments are the common stock of companies based in the developed countries around the world. The assets of the Fund will ordinarily be invested in the securities of at least five different countries. 71 74 NATIONWIDE HIGH INCOME BOND FUND Subadviser: Federated Investment Counseling Investment Objective: Seeks to provide high current income by investing primarily in a professionally managed, diversified portfolio of fixed income securities. To meet its objective, the Fund intends to invest at least 65% of its assets in lower-rated fixed income securities such as preferred stocks, bonds, debentures, notes, equipment lease certificates and equipment trust certificates which are rated BBB or lower by Standard & Poor's or Fitch Investors Service or Baa or lower by Moody's (or if not rated, are determined by the Fund's subadviser to be of a comparable quality). Such investments are commonly referred to as "junk bonds." For a further discussion of lower-rated securities, please see the "High Yield Securities" section of the Fund's prospectus. NATIONWIDE MID CAP INDEX FUND (FORMERLY NATIONWIDE SELECT ADVISERS MID CAP FUND) Subadviser: The Dreyfus Corporation Investment Objective: Capital appreciation. The Fund seeks to match the performance of the Standard & Poor's MidCap 400 Index. To pursue this goal, the Fund generally is fully invested in all 400 stocks included in this index in proportion to their weighting in the index, and in futures whose performance is tied to the index. The Fund is neither sponsored by nor affiliated with Standard & Poor's Corporation. NATIONWIDE MULTI SECTOR BOND FUND Subadviser: Miller, Anderson & Sherrerd, LLP Investment Objective: Primarily seeks a high level of current income. Capital appreciation is a secondary objective. The Fund seeks to achieve its objectives by investing in a globally diverse portfolio of fixed-income investments and by giving the subadviser broad discretion to deploy the Fund's assets among certain segments of the fixed-income market that the subadviser believes will best contribute to achievement of the Fund's investment objectives. The Fund reserves the right to invest predominantly in securities rated in medium or lower categories, or as determined by the subadviser to be of comparable quality, commonly referred to as "junk bonds." Although the subadviser has the ability to invest up to 100% of the Fund's assets in lower-rated securities, the subadviser does not anticipate investing in excess of 75% of the Fund's assets in such securities. NATIONWIDE SMALL CAP GROWTH FUND (FORMERLY, NATIONWIDE SELECT ADVISERS SMALL CAP GROWTH FUND) Subadvisers: Franklin Advisers, Inc., Miller Anderson & Sherrerd, LLP, Neuberger Berman, LLC. Investment Objective: Seeks capital growth by investing in a broadly diversified portfolio of equity securities issued by U.S. and foreign companies with market capitalizations in the range of companies represented by the Russell 2000, known has small cap companies. Under normal market conditions, the Fund will invest at least 65% of its total assets in the equity securities of small cap companies. The balance of the Fund's assets may be invested in equity securities of larger cap companies. NATIONWIDE SMALL CAP VALUE FUND Subadviser: The Dreyfus Corporation Investment Objective: The Fund intends to pursue its investment objective by investing, under normal market conditions, at least 75% of the Fund's total assets in equity securities of companies whose equity market capitalizations at the time of investment are similar to the market capitalizations of companies in the Russell 2000 Small Stock Index. 72 75 NATIONWIDE SMALL COMPANY FUND Subadvisers: The Dreyfus Corporation, Neuberger Berman, LLC., Lazard Asset Management and Strong Capital Management, Inc. Investment Objective: Under normal market conditions, the Fund will invest at least 65% of its total assets in equity securities of companies whose equity market capitalizations at the time of investment are similar to the market capitalizations of companies in the Russell 2000 Small Stock Index. NATIONWIDE STRATEGIC GROWTH FUND Subadviser: Strong Capital Management Inc. Investment Objective: Capital growth by investing primarily in equity securities that the Fund's subadviser believes have above-average growth prospects. The Fund will generally invest in companies whose earnings are believed to be in a relatively strong growth trend, and to a lesser extent, in companies in which significant further growth is not anticipated but whose market value is thought to be undervalued. Under normal market conditions, the Fund will invest at least 65% of its total assets in equity securities, including common stocks, preferred stocks, and securities convertible into common or preferred stocks, such as warrants and convertible bonds. The Fund may invest up to 35% of its total assets in debt obligations, including intermediate- to long-term corporate or U.S. Government debt securities. NATIONWIDE STRATEGIC VALUE FUND (NOT AVAILABLE IN CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER MAY 1, 2000) Subadviser: Strong Capital Management Inc./Schafer Capital Management Inc. Investment Objective: Primarily long-term capital appreciation; current income is a secondary objective. The Fund seeks to meet its objectives by investing in securities which are believed to offer the possibility of increase in value, primarily common stocks of established companies having a strong financial position and a low stock market valuation at the time of purchase in relation to investment value. Other than considered appropriate for cash reserves, the Fund will generally maintain a fully invested position in common stocks of publicly held companies, primarily in stocks of companies listed on a national securities exchange or other equity securities (common stock or securities convertible into common stock). Investments may also be made in debt securities which are convertible into common stocks and in warrants or other rights to purchase common stock, which in such case are considered equity securities by the Fund. Strong Capital Management, Inc. has subcontracted with Schafer Capital Management, Inc. to subadvise the Fund. NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST Neuberger Berman Advisers Management Trust ("NB AMT") is an open-end, diversified management investment company consisting of several series. Shares of the series of NB AMT are offered in connection with certain variable annuity contracts and variable life insurance policies issued through life insurance company separate accounts and are also offered directly to qualified pension and retirement plans outside of the separate account context. The Guardian, Partners and Mid-Cap Growth Portfolios of NB AMT invest all of their investable assets in a corresponding series of Advisers Managers Trust managed by Neuberger & Berman Management Incorporated ("NB Management"). Each series then invests in securities in accordance with an investment objective, policies and limitations identical to those of the Portfolio. This "master/feeder fund" structure is different from that of many other investment companies 73 76 which directly acquire and manage their own portfolios of securities. (For more information regarding "master/feeder fund" structure, see "Special Information Regarding Organization, Capitalization, and Other Matters" in the underlying mutual fund prospectus.) The investment advisor is NB Management. AMT GUARDIAN PORTFOLIO Investment Objective: Capital appreciation and secondarily, current income. The Portfolio and its corresponding series seek to achieve these objectives by investing in common stocks of long-established, high-quality companies. NB Management uses a value-oriented investment approach in selecting securities, looking for low price-to-earnings ratios, strong balance sheets, solid management, and consistent earnings. AMT MID-CAP GROWTH PORTFOLIO Investment Objective: Capital appreciation by investing in equity securities of medium-sized companies that NB Management believes have the potential for long-term, above-average capital appreciation. Medium-sized companies have market capitalizations form $300 million to $10 billion at the time of investment. The Portfolio and its corresponding series may invest up to 10% of its net assets, measured at the time of investment, in corporate debt securities that are below investment grade or, if unrated, deemed by NB Management to be of comparable quality. Securities that are below investment grade, as well as unrated securities, are often considered to be speculative and usually entail greater risk. As a part of the Portfolio's investment strategy, the Portfolio may invest up to 20% of its net assets in securities of issuers organized and doing business principally outside the United States. This limitation does not apply with respect to foreign securities that are denominated in U.S. dollars. AMT PARTNERS PORTFOLIO Investment Objective: Capital growth by investing primarily in the common stock of established companies. Its investment program seeks securities believed to be undervalued based on fundamentals such as low price-to-earnings ratios, consistent cash flows, and the company's track record through all parts of the market cycle. OPPENHEIMER VARIABLE ACCOUNT FUNDS The Oppenheimer variable account Funds are an open-end, diversified management investment company organized as a Massachusetts business trust in 1984. Shares of the Funds are sold to provide benefits under variable life insurance policies and variable annuity contracts. OppenheimerFunds, Inc. is the investment adviser. OPPENHEIMER AGGRESSIVE GROWTH FUND/VA (FORMERLY, OPPENHEIMER CAPITAL APPRECIATION FUND) Investment Objective: Capital appreciation by investing in "growth type" companies. Such companies are believed to have relatively favorable long-term prospects for increasing demand for their goods or services, or to be developing new products, services or markets and normally retain a relatively larger portion of their earnings for research, development and investment in capital assets. The Fund may also invest in cyclical industries in "special situations" that OppenheimerFunds, Inc. believes present opportunities for capital growth. OPPENHEIMER CAPITAL APPRECIATION FUND/VA (FORMERLY, OPPENHEIMER GROWTH FUND) Investment Objective: Capital appreciation by investing in securities of well-known established companies. Such securities generally have a history of earnings and dividends and are issued by seasoned companies (companies which have an operating history of at least five years including predecessors). Current income is a secondary consideration in the selection of the Fund's portfolio securities. 74 77 OPPENHEIMER GLOBAL SECURITIES FUND/VA Investment Objective: To seek long-term capital appreciation by investing a substantial portion of assets in securities of foreign issuers, "growth-type" companies, cyclical industries and special appreciation possibilities. These securities may be considered speculative. OPPENHEIMER MAIN STREET GROWTH & INCOME FUND/VA (FORMERLY, OPPENHEIMER GROWTH & INCOME FUND) Investment Objective: High total return, which stocks, preferred stocks, convertible securities and warrants. Debt investments will include bonds, participation includes growth in the value of its shares as well as current income from quality and debt securities. In seeking its investment objectives, the Fund may invest in equity and debt securities. Equity investments will include common interests, asset-backed securities, private-label mortgage-backed securities and CMOs, zero coupon securities and U.S. debt obligations, and cash and cash equivalents. From time to time, the Fund may focus on small to medium capitalization issuers, the securities of which may be subject to greater price volatility than those of larger capitalized issuers. STRONG OPPORTUNITY FUND II, INC. The Strong Opportunity Fund II, Inc. is a diversified, open-end management company commonly called a mutual fund. The Strong Opportunity Fund II, Inc. was incorporated in Wisconsin and may only be purchased by the separate accounts of insurance companies for the purpose of funding variable annuity contracts and variable life insurance policies. Strong Capital Management Inc. is the investment adviser for the Fund. Investment Objective: To seek capital appreciation through investment in a diversified portfolio of equity securities. THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (FORMERLY, MORGAN STANLEY DEAN WITTER UNIVERSAL FUNDS, INC.) The Universal Institutional Funds, Inc. is a mutual fund designed to provide investment vehicles for variable annuity contracts and variable life insurance policies and for certain tax-qualified investors. Its Emerging Markets Debt Portfolio is managed by Morgan Stanley Dean Witter Investment Management, Inc. EMERGING MARKETS DEBT PORTFOLIO Investment Objective: High total return by investing primarily in dollar and non-dollar denominated fixed income securities of government and government-related issuers located in emerging market countries, which securities provide a high level of current income, while at the same time holding the potential for capital appreciation if the perceived creditworthiness of the issuer improves due to improving economic, financial, political, social or other conditions in the country in which the issuer is located. MID CAP GROWTH PORTFOLIO Investment Objective: Long-term capital growth by investing primarily in common stocks and other equity securities of issuers with equity capitalizations in the range of the companies represented in the Standard & Poor's Rating Group ("S&P") MidCap 400 Index. Such range is generally $500 million to $6 billion but the range fluctuates over time with changes in the equity market. Miller Anderson & Sherrerd, LLP is the Portfolio's investment adviser. VAN ECK WORLDWIDE INSURANCE TRUST Van Eck Worldwide Insurance Trust is an open-end management investment company organized as a business trust under the laws of the Commonwealth of Massachusetts on January 7, 1987. Shares of Van Eck Trust are offered only to separate accounts of insurance companies to fund the benefits of variable life insurance policies and variable annuity contracts. The investment advisor and manager is Van Eck Associates Corporation. 75 78 WORLDWIDE EMERGING MARKETS FUND Investment Objective: Seeks long-term capital appreciation by investing primarily in equity securities in emerging markets around the world. The Fund emphasizes investment in countries that, compared to the world's major economies, exhibit relatively low gross national product per capita, as well as the potential for rapid economic growth. WORLDWIDE HARD ASSETS FUND Investment Objective: Long-term capital appreciation by investing primarily in "Hard Asset Securities." For the Fund's purpose, "Hard Assets" are real estate, energy, timber, and industrial and precious metals. Income is a secondary consideration. VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen Life Investment Trust is an open-end diversified management investment company organized as a Delaware business trust. Shares are offered in separate portfolios which are sold only to insurance companies to provide funding for variable life insurance policies and variable annuity contracts. Van Kampen Asset Management Inc. serves as the Fund's investment adviser. MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO Investment Objective: Long-term capital growth by investing principally in a diversified portfolio of securities of companies operating in the real estate industry ("Real Estate Securities"). Current income is a secondary consideration. Real Estate Securities include equity securities, including common stocks and convertible securities, as well as non-convertible preferred stocks and debt securities of real estate industry companies. A "real estate industry company" is a company that derives at least 50% of its assets (marked to market), gross income or net profits from the ownership, construction, management or sale of residential, commercial or industrial real estate. Under normal market conditions, at least 65% of the Fund's total assets will be invested in Real Estate Securities, primarily equity securities of real estate investment trusts. The Portfolio may invest up to 25% of its total assets in securities issued by foreign issuers, some or all of which may also be Real Estate Securities. VICTORY VARIABLE INSURANCE FUNDS The Victory Variable Insurance Funds (the "Trust") is a Delaware business trust formed on February 11, 1998. The Trust is offered exclusively through contracts offered by the separate accounts of participating insurance companies. Key Asset Management Inc. serves as the investment adviser for each fund offered through the Trust. DIVERSIFIED STOCK FUND: CLASS A Investment Objective: Seeks to provide long-term growth of capital. The Fund pursues its objective by investing primarily in equity securities and securities convertible into common stocks traded on U.S. exchanges and issued by large, established companies. SMALL COMPANY OPPORTUNITY FUND: CLASS A Investment Objective: Seeks to provide capital appreciation. The Fund pursues its objective by investing primarily in common stocks of smaller companies that show the potential for high earnings growth in relation to their price-earnings ratio. WARBURG PINCUS TRUST The Warburg Pincus Trust is an open-end management investment company organized in March 1995 as a business trust under the laws of The Commonwealth of Massachusetts. The Trust offers its shares to insurance companies for allocation to separate accounts for the purpose of funding variable annuity and variable life contracts. Portfolios are managed by Credit Suisse Asset Management, LLC ("Credit Suisse"). 76 79 GLOBAL POST-VENTURE CAPITAL PORTFOLIO (FORMERLY, POST-VENTURE CAPITAL PORTFOLIO) (NOT AVAILABLE IN CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER SEPTEMBER 27, 1999) Investment Objective: Seeks long-term growth of capital by investing primarily in equity securities of U.S. and foreign companies considered to be in their post-venture capital stage of development. Under normal market conditions, the Portfolio will invest at least 65% of its total assets in equity securities of "post-venture capital companies." A post-venture capital company is one that has received venture capital financing either: (a) during the early stages of the company's existence or the early stages of the development of a new product or service; or (b) as part of a restructuring or recapitalization of the company. The Portfolio will invest in at least three countries including the United States. INTERNATIONAL EQUITY PORTFOLIO (NOT AVAILABLE IN CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER SEPTEMBER 27, 1999) Investment Objective: Long-term capital appreciation by investing primarily in a broadly diversified portfolio of equity securities of companies, wherever organized, that in the judgment of Credit Suisse have their principal business activities and interests outside the United States. The Portfolio will ordinarily invest substantially all of its assets, but no less than 65% of its total assets, in common stocks, warrants and securities convertible into or exchangeable for common stocks. The Portfolio intends to invest principally in the securities of financially strong companies with opportunities for growth within growing international economies and markets through increased earning power and improved utilization or recognition of assets. VALUE PORTFOLIO (FORMERLY, GROWTH & INCOME PORTFOLIO) (NOT AVAILABLE IN CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER MAY 1, 2000) Investment Objective: Seeks total return by investing primarily in equity securities of value companies that may or may not pay dividends. 77 80 APPENDIX B: CONDENSED FINANCIAL INFORMATION Accumulation unit values for accumulation units outstanding throughout the period. NO OPTIONAL BENEFITS ELECTED (TOTAL 0.95%)
(VARIABLE ACCOUNT CHARGES OF 0.95% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT) UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD American Century 13.081019 15.291612 16.90% 2,513,258 1999 Variable Portfolios, 10.409767 13.081019 25.66% 946,527 1998 Inc. - American Century 10.000000 10.409767 4.10% 5,919 1997 VP Income & Growth - Q American Century 13.081019 15.291612 16.90% 2,807,167 1999 Variable Portfolios, 10.409767 13.081019 25.66% 1,151,139 1998 Inc. - American Century 10.000000 10.409767 4.10% 14,727 1997 VP Income & Growth - NQ American Century 11.866841 19.282175 62.49% 2,360,732 1999 Variable Portfolios, 10.088106 11.866841 17.63% 1,214,960 1998 Inc. - American Century 10.000000 10.088106 0.88% 11,451 1997 VP International - Q American Century 11.866841 19.282175 62.49% 2,777,990 1999 Variable Portfolios, 10.088106 11.866841 17.63% 1,436,710 1998 Inc. - American Century 10.000000 10.088106 0.88% 27,628 1997 VP International - NQ American Century 10.689857 10.498316 -1.79% 945,480 1999 Variable Portfolios, 10.296896 10.689857 3.82% 628,798 1998 Inc. - American Century 10.000000 10.296896 2.97% 32,890 1997 VP Value - Q American Century 10.689857 10.498316 -1.79% 1,026,094 1999 Variable Portfolios, 10.296896 10.689857 3.82% 591,086 1998 Inc. - American Century 10.000000 10.296896 2.97% 24,450 1997 VP Value - NQ Dreyfus Investment 10.000000 12.898688 28.99% 41,399 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.898688 28.99% 54,269 1999 Portfolios - European Equity Portfolio - NQ
78 81
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD The Dreyfus Socially 13.034607 16.794438 28.84% 2,490,588 1999 Responsible Growth 10.171132 13.034607 28.15% 863,479 1998 Fund, Inc. - Q 10.000000 10.171132 1.71% 13,265 1997 The Dreyfus Socially 13.034607 16.794438 28.84% 2,097,881 1999 Responsible Growth 10.171132 13.034607 28.15% 722,724 1998 Fund, Inc. - NQ 10.000000 10.171132 1.71% 28,338 1997 Dreyfus Stock Index 13.135997 15.692141 19.46% 13,859,686 1999 Fund, Inc. - Q 10.343734 13.135997 26.99% 6,472,951 1998 10.000000 10.343734 3.44% 167,229 1997 Dreyfus Stock Index 13.135997 15.692141 19.46% 15,204,584 1999 Fund, Inc. - NQ 10.343734 13.135997 26.99% 6,916,295 1998 10.000000 10.343734 3.44% 220,208 1997 Dreyfus Variable 13.220513 14.595134 10.40% 2,336,276 1999 Investment Fund - 10.249990 13.220513 28.98% 966,816 1998 Appreciation Portfolio 10.000000 10.249990 2.50% 23,139 1997 - - Q(1) Dreyfus Variable 13.220513 14.595134 10.40% 3,182,017 1999 Investment Fund - 10.249990 13.220513 28.98% 1,623,591 1998 Appreciation Portfolio 10.000000 10.249990 2.50% 36,467 1997 - - NQ(1) Federated Insurance 10.000000 9.806807 -1.93% 178,105 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.806807 -1.93% 169,575 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.422130 12.021290 5.25% 7,527,109 1999 Equity-Income 10.338433 11.422130 10.48% 4,636,060 1998 Portfolio: Service 10.000000 10.338433 3.88% 124,825 1997 Class - Q Fidelity VIP Equity - 11.422130 12.021290 5.25% 7,090,189 1999 Income Portfolio: Service 10.338433 11.422130 10.48% 4,426,005 1998 Class - NQ 10.000000 10.338433 3.88% 152,449 1997
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 79 82
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Fidelity VIP Growth 13.848033 18.830990 35.98% 7,476,227 1999 Portfolio: Service 10.030842 13.848033 38.05% 2,213,917 1998 Class - Q 10.000000 10.030842 0.31% 51,944 1997 Fidelity VIP Growth 13.848033 18.830990 35.98% 7,731,135 1999 Portfolio: Service 10.030842 13.848033 38.05% 1,956,872 1998 Class - NQ 10.000000 10.030842 0.31% 64,880 1997 Fidelity VIP High 9.586675 10.262325 7.05% 4,293,166 1999 Income Portfolio: 10.126638 9.586675 -5.33% 2,988,516 1998 Service Class - Q 10.000000 10.126638 1.27% 90,815 1997 Fidelity VIP High 9.586675 10.262325 7.05% 4,760,656 1999 Income Portfolio: 10.126638 9.586675 -5.33% 3,101,392 1998 Service Class - NQ 10.000000 10.126638 1.27% 114,247 1997 Fidelity VIP Overseas 11.047878 15.589761 41.11% 1,137,825 1999 Portfolio: Service 9.902344 11.047878 11.57% 628,967 1998 Class - Q 10.000000 9.902344 -0.98% 29,834 1997 Fidelity VIP Overseas 11.047878 15.589761 41.11% 1,895,187 1999 Portfolio: Service 9.902344 11.047878 11.57% 759,889 1998 Class - NQ 10.000000 9.902344 -0.98% 32,688 1997 Fidelity VIP II 12.812355 15.755094 22.97% 6,613,280 1999 Contrafund(R) Portfolio: 9.954885 12.812355 28.70% 2,855,573 1998 Service Class - Q 10.000000 9.954885 -0.45% 94,143 1997 Fidelity VIP II 12.812355 15.755094 22.97% 6,834,444 1999 Contrafund(R) Portfolio: 9.954885 12.812355 28.70% 2,984,400 1998 Service Class - NQ 10.000000 9.954885 -0.45% 137,715 1997 Fidelity VIP III Growth 12.826216 13.235715 3.19% 3,585,801 1999 Opportunities 10.400464 12.826216 23.32% 2,008,161 1998 Portfolio: Service 10.000000 10.400464 4.00% 65,917 1997 Class - Q Fidelity VIP III Growth 12.826216 13.235715 3.19% 3,945,447 1999 Opportunities 10.400464 12.826216 23.32% 2,027,101 1998 Portfolio: Service 10.000000 10.400464 4.00% 74,836 1997 Class - NQ
80 83
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Capital 13.369463 13.808913 3.29% 7,098,886 1999 Appreciation Fund - Q 10.385596 13.369463 28.73% 4,205,204 1998 10.000000 10.385596 3.86% 76,048 1997 NSAT Capital 13.369463 13.808913 3.29% 6,348,266 1999 Appreciation Fund - NQ 10.385596 13.369463 28.73% 4,692,586 1998 10.000000 10.385596 3.86% 74,609 1997 NSAT Government Bond 10.941842 10.583479 -3.28% 5,965,281 1999 Fund - Q 10.143182 10.941842 7.87% 3,515,365 1998 10.000000 10.143182 1.43% 67,127 1997 NSAT Government Bond 10.941842 10.583479 -3.28% 5,433,963 1999 Fund - NQ 10.143182 10.941842 7.87% 3,219,249 1998 10.000000 10.143182 1.43% 138,589 1997 NSAT Money Market Fund 10.504509 10.909142 3.85% 8,318,964 1999 - - Q* 10.074129 10.504509 4.27% 4,897,425 1998 10.000000 10.074129 0.74% 155,902 1997 NSAT Money Market Fund 10.504509 10.909142 3.85% 7,955,423 1999 - - NQ* 10.074129 10.504509 4.27% 5,506,084 1998 10.000000 10.074129 0.74% 581,682 1997 NSAT Total Return Fund 11.979444 12.689484 5.93% 12,447,397 1999 - - Q 10.242940 11.979444 16.95% 8,192,315 1998 10.000000 10.242940 2.43% 182,146 1997 NSAT Total Return Fund 11.979444 12.689484 5.93% 8,730,211 1999 - - NQ 10.242940 11.979444 16.95% 5,639,031 1998 10.000000 10.242940 2.43% 197,787 1997 NSAT Nationwide 10.844036 10.834304 -0.09% 1,925,779 1999 Balanced Fund - Q 10.130674 10.844036 7.04% 1,031,517 1998 10.000000 10.130674 1.31% 20,941 1997 NSAT Nationwide 10.844036 10.834304 -0.09% 1,728,516 1999 Balanced Fund - NQ 10.130674 10.844036 7.04% 926,279 1998 10.000000 10.130674 1.31% 23,584 1997
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.43%. 81 84
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Equity 11.588459 13.600816 17.37% 415,174 1999 Income Fund - Q 10.161693 11.588459 14.04% 236,776 1998 10.000000 10.161693 1.62% 10,838 1997 NSAT Nationwide Equity 11.588459 13.600816 17.37% 528,752 1999 Income Fund - NQ 10.161693 11.588459 14.04% 340,149 1998 10.000000 10.161693 1.62% 27,331 1997 NSAT Nationwide Global 11.921445 14.515197 21.76% 555,584 1999 50 Fund - Q(1) 10.102208 11.921445 18.01% 296,688 1998 10.000000 10.102208 1.02% 15,788 1997 NSAT Nationwide Global 11.921445 14.515197 21.76% 696,878 1999 50 Fund - NQ(1) 10.102208 11.921445 18.01% 382,578 1998 10.000000 10.102208 1.02% 12,998 1997 NSAT Nationwide High 10.701912 10.938415 2.21% 1,036,571 1999 Income Bond Fund - Q 10.212505 10.701912 4.79% 649,669 1998 10.000000 10.212505 2.13% 15,004 1997 NSAT Nationwide High 10.701912 10.938415 2.21% 1,171,043 1999 Income Bond Fund - NQ 10.212505 10.701912 4.79% 709,535 1998 10.000000 10.212505 2.13% 33,703 1997 NSAT Nationwide Mid Cap 10.919701 13.078919 19.77% 282,298 1999 Index Fund- Q(2) 9.949100 10.919701 9.76% 170,630 1998 10.000000 9.949100 -0.51% 3,322 1997 NSAT Nationwide Mid Cap 10.919701 13.078919 19.77% 271,883 1999 Index Fund- NQ(2) 9.949100 10.919701 9.76% 185,038 1998 10.000000 9.949100 -0.51% 5,540 1997 NSAT Nationwide Multi 10.252876 10.313452 0.59% 1,518,522 1999 Sector Bond Fund - Q 10.088793 10.252876 1.63% 915,224 1988 10.000000 10.88793 0.89% 13,658 1997 NSAT Nationwide Multi 10.252879 10.313452 0.59% 1,424,905 1999 Sector Bond Fund - NQ 10.088793 10.252879 1.63% 933,093 1998 10.000000 10.088793 0.89% 41,385 1997
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 82 85
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Small 10.000000 20.372476 103.72% 117,284 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.372476 103.72% 175,712 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 9.432351 11.943543 26.62% 1,481,928 1999 Cap Value Fund - Q 9.823904 9.432351 -3.99% 912,173 1998 10.000000 9.823904 -1.76% 29,661 1997 NSAT Nationwide Small 9.432351 11.943543 26.62% 1,717,394 1999 Cap Value Fund - NQ 9.823904 9.432351 -3.99% 1,020,607 1998 10.000000 9.823904 -1.76% 42,125 1997 NSAT Nationwide Small 9.617964 13.720318 42.65% 1,803,873 1999 Company Fund - Q 9.613184 9.617964 0.05% 1,257,363 1998 10.000000 9.613184 -3.87% 26,226 1997 NSAT Nationwide Small 9.617964 13.720318 42.65% 1,988,022 1999 Company Fund - NQ 9.613184 9.617964 0.05% 1,253,383 1998 10.000000 9.613184 -3.87% 60,510 1997 NSAT Nationwide 11.582258 21.195607 83.00% 969,074 1999 Strategic Growth Fund - Q 10.204129 11.582258 13.51% 265,065 1998 10.000000 10.204129 2.04% 7,333 1997 NSAT Nationwide 11.582258 21.195607 83.00% 1,214,402 1999 Strategic Growth Fund - NQ 10.204129 11.582258 13.51% 223,704 1998 10.000000 10.204129 2.04% 14,559 1997 NSAT Nationwide 10.090240 9.687523 -3.99% 346,489 1999 Strategic Value Fund - Q 10.147459 10.090240 -0.56% 345,438 1998 10.000000 10.147459 1.47% 12,123 1997 NSAT Nationwide 10.090240 9.687523 -3.99% 506,067 1999 Strategic Value Fund - NQ 10.147459 10.090240 -0.56% 505,486 1998 10.000000 10.147459 1.47% 13,612 1997
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 83 86
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Neuberger Berman AMT 13.699229 15.595438 13.84% 926,123 1999 Guardian Portfolio - Q 10.504106 13.699229 30.42% 571,944 1998 10.000000 10.504106 5.04% 5,387 1997 Neuberger Berman AMT 13.699229 15.595438 13.84% 972,681 1999 Guardian Portfolio - NQ 10.504106 13.699229 30.42% 609,252 1998 10.000000 10.504106 5.04% 9,331 1997 Neuberger Berman AMT 16.144809 24.609353 52.43% 953,685 1999 Mid-Cap Growth 11.702355 16.144809 37.96% 432,869 1998 Portfolio - Q 10.000000 11.702355 17.02% 24,058 1997 Neuberger Berman AMT 16.144809 24.609353 52.43% 1,108,088 1999 Mid-Cap Growth 11.702355 16.144809 37.96% 449,661 1998 Portfolio - NQ 10.000000 11.702355 17.02% 27,997 1997 Neuberger Berman AMT 10.458607 11.122733 6.35% 3,088,664 1999 Partners Portfolio - Q 10.132434 10.458607 3.22% 3,019,935 1998 10.000000 10.132434 1.32% 123,308 1997 Neuberger Berman AMT 10.458607 11.122733 6.35% 2,945,134 1999 Partners Portfolio - NQ 10.132434 10.458607 3.22% 2,840,958 1998 10.000000 10.132434 1.32% 816,409 1997 Oppenheimer Variable 10.609896 19.295630 81.86% 1,728,692 1999 Account Funds - 9.533314 10.609896 11.29% 780,153 1998 Oppenheimer Aggressive 10.000000 9.533314 -4.67% 17,204 1997 Growth Fund/VA - Q(1) Oppenheimer Variable 10.609896 19.295630 81.86% 1,952,316 1999 Account Funds - 9.533314 10.609896 11.29% 751,161 1998 Oppenheimer Aggressive 10.000000 9.533314 -4.67% 22,088 1997 Growth Fund/VA - NQ(1) Oppenheimer Variable 12.070167 16.935851 40.31% 2,387,151 1999 Account Funds - 9.827325 12.070167 22.82% 909,464 1998 Oppenheimer Capital 10.000000 9.827325 -1.73% 32,359 1997 Appreciation Fund/VA - Q(2)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. 84 87
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Oppenheimer Variable 12.070167 16.935851 40.31% 2,567,398 1999 Account Funds - 9.827325 12.070167 22.82% 1,091,207 1998 Oppenheimer Capital 10.000000 9.827325 -1.73% 11,808 1997 Appreciation Fund/VA - NQ(1) Oppenheimer Variable 10.639805 12.826564 20.55% 2,668,902 1999 Account Funds - 10.259486 10.639805 3.71% 1,233,877 1998 Oppenheimer Main Street 10.000000 10.259486 2.59% 18,417 1997 Growth & Income Fund/VA - Q(2) Oppenheimer Variable 10.639805 12.826564 20.55% 2,644,668 1999 Account Funds - 10.259486 10.639805 3.71% 1,348,779 1998 Oppenheimer Main Street 10.000000 10.259486 2.59% 39,986 1997 Growth & Income Fund/VA - - NQ(2) The Universal 7.395794 9.477539 28.15% 175,855 1999 Institutional Funds, 10.425451 7.395794 -29.06% 148,936 1998 Inc. - Emerging Markets 10.000000 10.425451 4.25% 3,325 1997 Debt Portfolio - Q(3) The Universal 13.369463 9.477539 28.15% 212,802 1999 Institutional Funds, 10.385596 13.369463 28.73% 152,995 1998 Inc. - Emerging Markets 10.000000 10.385596 3.86% 5,093 1997 Debt Portfolio - NQ(3) Van Eck Worldwide 5.751082 11.409292 98.38% 704,590 1999 Insurance Trust - 8.814851 5.751082 -34.76% 217,873 1998 Worldwide Emerging 10.000000 8.814851 -11.85% 9,145 1997 Markets Fund - Q Van Eck Worldwide 5.751082 11.409292 98.38% 942,874 1999 Insurance Trust - 8.814851 5.751082 -34.76% 279,325 1998 Worldwide Emerging 10.000000 8.814851 -11.85% 18,343 1997 Markets Fund - NQ
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 85 88
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Van Eck Worldwide 6.139717 7.358645 19.85% 220,914 1999 Insurance Trust - 8.979477 6.139717 -31.63% 82,690 1998 Worldwide Hard Assets 10.000000 8.979477 -10.21% 10,008 1997 Fund - Q Van Eck Worldwide 6.139717 7.358645 19.85% 194,562 1999 Insurance Trust - 8.979477 6.139717 -31.63% 115,058 1998 Worldwide Hard Assets 10.000000 8.979477 -10.21% 7,257 1997 Fund - NQ Van Kampen Life 9.050353 8.662065 -4.29% 685,275 1999 Investment Trust - 10.338661 9.050353 -12.46% 646,017 1998 Morgan Stanley Real 10.000000 10.338661 3.39% 32,778 1997 Estate Securities Portfolio - Q Van Kampen Life 9.050353 8.662065 -4.29% 759,304 1999 Investment Trust - 10.338661 9.050353 -12.46% 606,338 1998 Morgan Stanley Real 10.000000 10.338661 3.39% 27,341 1997 Estate Securities Portfolio - NQ Warburg Pincus Trust - 10.394476 16.833540 61.95% 332,253 1999 Global Post-Venture 9.852750 10.394476 5.50% 190,333 1998 Capital Portfolio - Q(1) 10.000000 9.852750 -1.47% 1,213 1997 Warburg Pincus Trust - 10.394476 16.833540 61.95% 421,218 1999 Global Post-Venture 9.852750 10.394476 5.50% 207,208 1998 Capital Portfolio - NQ(1) 10.000000 9.852750 -1.47% 7,662 1997 Warburg Pincus Trust - 9.865775 14.993656 51.98% 684,378 1999 International Equity 9.454794 9.865775 4.35% 479,333 1998 Portfolio - Q 10.000000 9.454794 -5.45% 23,146 1997 Warburg Pincus Trust - 9.865775 14.993656 51.98% 890,352 1999 International Equity 9.454794 9.865775 4.35% 496,472 1998 Portfolio - NQ 10.000000 9.454794 -5.45% 35,372 1997 Warburg Pincus Trust - 11.521372 12.124398 5.23% 376,444 1999 Value Portfolio - Q(2) 10.373620 11.521372 11.06% 373,962 1998 10.000000 10.373620 3.74% 11,884 1997
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. (2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. 86 89
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Warburg Pincus Trust - 11.521372 12.124398 5.23% 449,620 1999 Value Portfolio - NQ(1) 10.373620 11.521372 11.06% 328,455 1998 10.000000 10.373620 3.74% 1,514 1997
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., The Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio, Victory Variable Insurance Funds - Diversified Stock Fund: Class A, and Victory Variable Insurance Funds - Small Company Opportunity Fund: Class A were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. The following underlying mutual funds were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available: - Evergreen Variable Trust - Evergreen VA Blue Chip Fund - Evergreen Variable Trust - Evergreen VA Capital Growth Fund - Evergreen Variable Trust - Evergreen VA Equity Index Fund - Evergreen Variable Trust - Evergreen VA Foundation Fund - Evergreen Variable Trust - Evergreen VA Fund - Evergreen Variable Trust - Evergreen VA Global Leaders Fund - Evergreen Variable Trust - Evergreen VA Growth and Income Fund - Evergreen Variable Trust - Evergreen VA International Growth Fund - Evergreen Variable Trust - Evergreen VA Masters Fund - Evergreen Variable Trust - Evergreen VA Omega Fund - Evergreen Variable Trust - Evergreen VA Small Cap Value Fund - Evergreen Variable Trust - Evergreen VA Special Equity Fund - Evergreen Variable Trust - Evergreen VA Strategic Income Fund 87 90 OPTIONAL BENEFITS ELECTED (TOTAL 1.00%)
(VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT) UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD American Century 13.073386 15.274980 16.84% 1,577,411 1999 Variable Portfolios, 10.408936 13.073386 25.60% 580,569 1998 Inc. - American Century 10.000000 10.408936 4.09% 11,674 1997 VP Income & Growth - Q American Century 13.073386 15.274980 16.84% 1,606,753 1999 Variable Portfolios, 10.408936 13.073386 25.60% 612,039 1998 Inc. - American Century 10.000000 10.408936 4.09% 5,571 1997 VP Income & Growth - NQ American Century 11.859906 19.261196 62.41% 1,526,161 1999 Variable Portfolios, 10.087297 11.859906 17.57% 666,641 1998 Inc. - American Century 10.000000 10.087297 0.87% 3,170 1997 VP International - Q American Century 11.859906 19.261196 62.41% 1,544,026 1999 Variable Portfolios, 10.087297 11.859906 17.57% 793,846 1998 Inc. - American Century 10.000000 10.087297 0.87% 9,299 1997 VP International - NQ American Century 10.683601 10.486868 -1.84% 824,442 1999 Variable Portfolios, 10.296077 10.683601 3.76% 355,592 1998 Inc. - American Century 10.000000 10.296077 2.96% 42,338 1997 VP Value - Q American Century 10.683601 10.486868 -1.84% 896,270 1999 Variable Portfolios, 10.296077 10.683601 3.76% 298,758 1998 Inc. - American Century 10.000000 10.296077 2.96% 22,796 1997 VP Value - NQ Dreyfus Investment 10.000000 12.897004 28.97% 32,116 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.897004 28.97% 45,699 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 13.026995 16.776156 28.78% 2,172,581 1999 Responsible Growth 10.170317 13.026995 28.09% 561,920 1998 Fund, Inc. - Q 10.000000 10.170317 1.70% 21,267 1997
88 91
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD The Dreyfus Socially 13.026995 16.776156 28.78% 1,770,691 1999 Responsible Growth 10.170317 13.026995 28.09% 535,958 1998 Fund, Inc. - NQ 10.000000 10.170317 1.70% 13,946 1997 Dreyfus Stock Index 13.128325 15.675065 19.40% 13,182,601 1999 Fund, Inc. - Q 10.342909 13.128325 26.93% 4,388,390 1998 10.000000 10.342909 3.43% 79,005 1997 Dreyfus Stock Index 13.128325 15.675065 19.40% 14,291,330 1999 Fund, Inc. - NQ 10.342909 13.128325 26.93% 4,086,832 1998 10.000000 10.342909 3.43% 103,007 1997 Dreyfus Variable 13.212796 14.579248 10.34% 2,192,515 1999 Investment Fund - 10.249171 13.212796 28.92% 617,598 1998 Appreciation Portfolio 10.000000 10.249171 2.49% 16,809 1997 - - Q(1) Dreyfus Variable 13.212796 14.579248 10.34% 2,832,349 1999 Investment Fund - 10.249171 13.212796 28.92% 689,993 1998 Appreciation Portfolio 10.000000 10.249171 2.49% 10,034 1997 - - NQ(1) Federated Insurance 10.000000 9.803523 -1.96% 154,459 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.803523 -1.96% 160,687 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.415454 12.008202 5.19% 7,080,869 1999 Equity-Income 10.337608 11.415454 10.43% 3,162,232 1998 Portfolio: Service 10.000000 10.337608 3.38% 80,230 1997 Class - Q Fidelity VIP 11.415454 12.008202 5.19% 6,670,337 1999 Equity-Income 10.337608 11.415454 10.43% 3,555,107 1998 Portfolio: Service 10.000000 10.337608 3.38% 101,670 1997 Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 89 92
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Fidelity VIP Growth 13.839948 18.810518 35.91% 6,819,978 1999 Portfolio: Service 10.030041 13.839948 37.98% 1,630,266 1998 Class - Q 10.000000 10.030041 0.30% 26,495 1997 Fidelity VIP Growth 13.839948 18.810518 35.91% 6,931,647 1999 Portfolio: Service 10.030041 13.839948 37.98% 1,448,151 1998 Class - NQ 10.000000 10.030041 0.30% 42,184 1997 Fidelity VIP High 9.581067 10.251150 6.99% 3,852,925 1999 Income Portfolio: 10.125825 9.581067 -5.38% 1,712,919 1998 Service Class - Q 10.000000 10.125825 1.26% 28,809 1997 Fidelity VIP High 9.581067 10.251150 6.99% 4,271,795 1999 Income Portfolio: 10.125825 9.581067 -5.38% 1,951,737 1998 Service Class - NQ 10.000000 10.125825 1.26% 38,172 1997 Fidelity VIP Overseas 11.041416 15.572798 41.04% 1,053,858 1999 Portfolio: Service 9.901549 11.041416 11.51% 390,759 1998 Class - Q 10.000000 9.901549 -0.98% 6,886 1997 Fidelity VIP Overseas 11.041416 15.572798 41.04% 1,575,250 1999 Portfolio: Service 9.901549 11.041416 11.51% 364,389 1998 Class - NQ 10.000000 9.901549 -0.98% 13,646 1997 Fidelity VIP II 12.804877 15.737973 22.91% 6,036,330 1999 Contrafund(R)Portfolio: 9.954090 12.804877 28.64% 1,739,968 1998 Service Class - Q 10.000000 9.954090 -0.46% 52,859 1997 Fidelity VIP II 12.804877 15.737973 22.91% 6,134,643 1999 Contrafund(R)Portfolio: 9.954090 12.804877 28.64% 1,750,336 1998 Service Class - NQ 10.000000 9.954090 -0.46% 61,145 1997 Fidelity VIP III Growth 12.818700 13.221287 3.14% 3,502,629 1999 Opportunities 10.399630 12.818700 23.26% 1,566,376 1998 Portfolio: Service 10.000000 10.399630 4.00% 50,299 1997 Class - Q Fidelity VIP III Growth 12.818700 13.221287 3.14% 3,451,516 1999 Opportunities 10.399630 12.818700 23.26% 1,701,741 1998 Portfolio: Service 10.000000 10.399630 4.00% 34,840 1997 Class - NQ
90 93
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Capital 13.361662 13.793878 3.23% 6,538,905 1999 Appreciation Fund - Q 10.384765 13.361662 28.67% 2,713,689 1998 10.000000 10.384765 3.85% 42,993 1997 NSAT Capital 13.361662 13.793878 3.23% 5,631,533 1999 Appreciation Fund - NQ 10.384765 13.361662 28.67% 2,066,078 1998 10.000000 10.384765 3.85% 34,299 1997 NSAT Government Bond 10.935440 10.571951 -3.32% 5,669,841 1999 Fund - Q 10.142367 10.935440 7.82% 2,372,619 1998 10.000000 10.142367 1.42% 35,843 1997 NSAT Government Bond 10.935440 10.571951 -3.32% 5,131,486 1999 Fund - NQ 10.142367 10.935440 7.82% 2,154,523 1998 10.000000 10.142367 1.42% 31,348 1997 NSAT Money Market Fund 10.498325 10.897217 3.80% 7,114,834 1999 - - Q* 10.073279 10.498325 4.22% 3,146,858 1998 10.000000 10.073279 0.73% 172,291 1997 NSAT Money Market Fund 10.498325 10.897217 3.80% 6,833,650 1999 - - NQ* 10.073279 10.498325 4.22% 2,859,923 1998 10.000000 10.073279 0.73% 228,200 1997 NSAT Total Return Fund 11.972436 12.675660 5.87% 11,766,972 1999 - - Q 10.242118 11.972436 16.89% 4,776,547 1998 10.000000 10.242118 2.42% 84,236 1997 NSAT Total Return Fund 11.972436 12.675660 5.87% 8,280,792 1999 - - NQ 10.242118 11.972436 16.89% 3,782,609 1998 10.000000 10.242118 2.42% 76,652 1997 NSAT Nationwide 10.837697 10.822502 -0.14% 1,840,068 1999 Balanced Fund - Q 10.129864 10.837697 6.99% 724,101 1998 10.000000 10.129864 1.30% 18,660 1997 NSAT Nationwide 10.837697 10.822502 -0.14% 1,603,952 1999 Balanced Fund - NQ 10.129864 10.837697 6.99% 641,839 1998 10.000000 10.129864 1.30% 7,268 1997
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.38%. 91 94
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Equity 11.581699 13.586032 17.31% 389,155 1999 Income Fund - Q 10.160882 11.581699 13.98% 182,603 1998 10.000000 10.160882 1.61% 10,109 1997 NSAT Nationwide Equity 11.581699 13.586032 17.31% 495,033 1999 Income Fund - NQ 10.160882 11.581699 13.98% 263,284 1998 10.000000 10.160882 1.61% 4,986 1997 NSAT Nationwide Global 11.914478 14.499401 21.70% 502,133 1999 50 Fund - Q(1) 10.101401 11.914478 17.95% 209,682 1998 10.000000 10.101401 1.01% 10,785 1997 NSAT Nationwide Global 11.914478 14.499401 21.70% 648,820 1999 50 Fund - NQ(1) 10.101401 11.914478 17.95% 265,967 1998 10.000000 10.101401 1.01% 5,708 1997 NSAT Nationwide High 10.695657 10.926498 2.16% 976,652 1999 Income Bond Fund - Q 10.211688 10.695657 4.74% 563,880 1998 10.000000 10.211688 2.12% 15,211 1997 NSAT Nationwide High 10.695657 10.926498 2.16% 1,112,643 1999 Income Bond Fund - NQ 10.211688 10.695657 4.74% 506,824 1998 10.000000 10.211688 2.12% 7,868 1997 NSAT Nationwide Mid Cap 10.913315 13.064679 19.71% 241,749 1999 Index Fund- Q(2) 9.948304 10.913315 9.70% 124,451 1998 10.000000 9.948304 -0.52% 5,466 1997 NSAT Nationwide Mid Cap 10.913315 13.064679 19.71% 235,446 1999 Index Fund- NQ(2) 9.948304 10.913315 9.70% 125,175 1998 10.000000 9.948304 -0.52% 4,072 1997 NSAT Nationwide Multi 10.246882 10.302225 0.54% 1,405,222 1999 Sector Bond Fund - Q 10.087985 10.246882 1.58% 627,837 1998 10.000000 10.087985 0.88% 22,440 1997 NSAT Nationwide Multi 10.246882 10.302225 0.54% 1,367,549 1999 Sector Bond Fund - NQ 10.087985 10.246882 1.58% 548,001 1998 10.000000 10.087985 0.88% 12,227 1997
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 92 95
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Small 10.000000 20.365684 103.66% 109,372 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.365684 103.66% 142,521 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 9.426837 11.930542 26.56% 1,270,898 1999 Cap Value Fund - Q 9.823118 9.426837 -4.03% 501,274 1998 10.000000 9.823118 -1.77% 16,510 1997 NSAT Nationwide Small 9.426837 11.930542 26.56% 1,478,150 1999 Cap Value Fund - NQ 9.823118 9.426837 -4.03% 467,220 1998 10.000000 9.823118 -1.77% 20,577 1997 NSAT Nationwide Small 9.612340 13.705373 42.58% 1,677,063 1999 Company Fund - Q 9.612411 9.612340 0.00% 832,015 1998 10.000000 9.612411 -3.88% 30,320 1997 NSAT Nationwide Small 9.612340 13.705373 42.58% 1,813,480 1999 Company Fund - NQ 9.612411 9.612340 0.00% 830,194 1998 10.000000 9.612411 -3.88% 32,541 1997 NSAT Nationwide 11.575478 21.172544 82.91% 859,846 1999 Strategic Growth Fund - 10.203313 11.575478 13.45% 105,819 1998 Q 10.000000 10.203313 2.03% 3,708 1997 NSAT Nationwide 11.575478 21.172544 82.91% 990,154 1999 Strategic Growth Fund - 10.203313 11.575478 13.45% 115,940 1998 NQ 10.000000 10.203313 2.03% 2,921 1997 NSAT Nationwide 10.084334 9.676976 -4.04% 335,060 1999 Strategic Value Fund - Q 10.146650 10.084334 -0.61% 134,335 1998 10.000000 10.146650 1.47% 3,022 1997 NSAT Nationwide 10.084334 9.676976 -4.04% 453,077 1999 Strategic Value Fund - 10.146650 10.084334 -0.61% 239,315 1998 NQ 10.000000 10.146650 1.47% 13,153 1997
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 93 96
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Neuberger Berman AMT 13.691238 15.578481 13.78% 889,965 1999 Guardian Portfolio - Q 10.503269 13.691238 30.35% 517,002 1998 10.000000 10.503269 5.03% 8,001 1997 Neuberger Berman AMT 13.691238 15.578481 13.78% 915,475 1999 Guardian Portfolio - NQ 10.503269 13.691238 30.35% 425,826 1998 10.000000 10.503269 5.03% 14,929 1997 Neuberger Berman AMT 16.135377 24.582570 52.35% 863,846 1999 Mid-Cap Growth 11.701424 16.135377 37.89% 346,534 1998 Portfolio - Q 10.000000 11.701424 17.01% 56,145 1997 Neuberger Berman AMT 16.135377 24.582570 52.35% 979,386 1999 Mid-Cap Growth 11.701424 16.135377 37.89% 372,662 1998 Portfolio - NQ 10.000000 11.701424 17.01% 16,768 1997 Neuberger Berman AMT 10.452498 11.110632 6.30% 2,922,435 1999 Partners Portfolio - Q 10.131623 10.452498 3.17% 1,949,091 1998 10.000000 10.131623 1.32% 195,515 1997 Neuberger Berman AMT 10.452498 11.110632 6.30% 2,826,527 1999 Partners Portfolio - NQ 10.131623 10.452498 3.17% 1,997,559 1998 10.000000 10.131623 1.32% 133,165 1997 Oppenheimer Variable 10.603692 19.274630 81.77% 1,563,772 1999 Account Funds - 9.532548 10.603692 11.24% 395,607 1998 Oppenheimer Aggressive 10.000000 9.532548 -4.67% 11,021 1997 Growth Fund/VA - Q(1) Oppenheimer Variable 10.603692 19.274630 81.77% 1,713,850 1999 Account Funds - 9.532548 10.603692 11.24% 445,810 1998 Oppenheimer Aggressive 10.000000 9.532548 -4.67% 10,675 1997 Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 94 97
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Oppenheimer Variable 12.063121 16.917425 40.24% 2,150,641 1999 Account Funds - 9.826536 12.063121 22.76% 581,682 1998 Oppenheimer Capital 10.000000 9.826536 -1.73% 26,012 1997 Appreciation Fund/VA - Q(1) Oppenheimer Variable 12.063121 16.917425 40.24% 2,383,083 1999 Account Funds - 9.826536 12.063121 22.76% 591,561 1998 Oppenheimer Capital 10.000000 9.826536 -1.73% 16,143 1997 Appreciation Fund/VA - NQ(1) Oppenheimer Variable 10.633592 12.812596 20.49% 2,337,156 1999 Account Funds - 10.258664 10.633592 3.65% 825,634 1998 Oppenheimer Main Street 10.000000 10.258664 2.59% 15,547 1997 Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 10.633592 12.812596 20.49% 2,379,174 1999 Account Funds - 10.258664 10.633592 3.65% 1,013,404 1998 Oppenheimer Main Street 10.000000 10.258664 2.59% 15,661 1997 Growth & Income Fund/VA - - NQ(2) The Universal 7.391460 9.467196 28.08% 153,586 1999 Institutional Funds, 10.424614 7.391460 -29.10% 50,958 1998 Inc. - Emerging Markets 10.000000 10.424614 4.25% 4,517 1997 Debt Portfolio - Q(3) The Universal 7.391460 9.467196 28.08% 183,638 1999 Institutional Funds, 10.424614 7.391460 -29.10% 56,822 1998 Inc. - Emerging Markets 10.000000 10.424614 4.25% 4,151 1997 Debt Portfolio - NQ(3) Van Eck Worldwide 5.747723 11.396847 98.28% 592,457 1999 Insurance Trust - 8.814146 5.747723 -34.79% 141,469 1998 Worldwide Emerging 10.000000 8.814146 -11.86% 30,479 1997 Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 95 98
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Van Eck Worldwide 5.747723 11.396847 98.28% 672,210 1999 Insurance Trust - 8.814146 5.747723 -34.79% 104,323 1998 Worldwide Emerging 10.000000 8.814146 -11.86% 15,119 1997 Markets Fund - NQ Van Eck Worldwide 6.136113 7.350618 19.79% 180,231 1999 Insurance Trust - 8.978753 6.136113 -31.66% 69,784 1998 Worldwide Hard Assets 10.000000 8.978753 -10.21% 765 1997 Fund - Q Van Eck Worldwide 6.136113 7.350618 19.79% 191,034 1999 Insurance Trust - 8.978753 6.136113 -31.66% 36,296 1998 Worldwide Hard Assets 10.000000 8.978753 -10.21% 4,496 1997 Fund - NQ Van Kampen Life 9.045055 8.652617 -4.34% 639,967 1999 Investment Trust - 10.337835 9.045055 -12.89% 372,172 1998 Morgan Stanley Real 10.000000 10.337835 3.38% 8,443 1997 Estate Securities Portfolio - Q Van Kampen Life 9.045055 8.652617 -4.34% 675,822 1999 Investment Trust - 10.337835 9.045055 -12.89% 250,104 1998 Morgan Stanley Real 10.000000 10.337835 3.38% 23,459 1997 Estate Securities Portfolio - NQ Warburg Pincus Trust - 10.388404 16.815230 61.87% 309,718 1999 Global Post-Ventur 9.851960 10.388404 5.45% 92,766 1998 Capital Portfolio - Q(1) 10.000000 9.851960 -1.48% 1,263 1997 Warburg Pincus Trust - 10.388404 16.815230 61.87% 393,511 1999 Global Post-Venture 9.851960 10.388404 5.45% 59,430 1998 Capital Portfolio - NQ(1) 10.000000 9.851960 -1.48% 1,127 1997
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 96 99
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Warburg Pincus Trust - 9.860001 14.977312 51.90% 646,820 1999 International Equity 9.454036 9.860001 4.29% 216,678 1998 Portfolio - Q 10.000000 9.454036 -5.46% 9,501 1997 Warburg Pincus Trust - 9.860001 14.977312 51.90% 793,116 1999 International Equity 9.454036 9.860001 4.29% 284,936 1998 Portfolio - NQ 10.000000 9.454036 -5.46% 11,346 1997 Warburg Pincus Trust - 11.514627 12.111181 5.18% 360,012 1999 Value Portfolio - Q(1) 10.372788 11.514627 11.01% 150,366 1998 10.000000 10.372788 3.73% 10,462 1997 Warburg Pincus Trust - 11.514627 12.111181 5.18% 413,137 1999 Value Portfolio - NQ(1) 10.372788 11.514627 11.01% 193,659 1998 10.000000 10.372788 3.73% 11,043 1997
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 97 100 OPTIONAL BENEFITS ELECTED (TOTAL 1.05%)
(VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT) UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD American Century 13.065728 15.258324 16.78% 197,680 1999 Variable Portfolios, 10.408098 13.065728 25.53% 81,928 1998 Inc. - American Century 10.000000 10.408098 4.08% 832 1997 VP Income & Growth - Q American Century 13.065728 15.258324 16.78% 322,820 1999 Variable Portfolios, 10.408098 13.065728 25.53% 128,629 1998 Inc. - American Century 10.000000 10.408098 4.08% 5,236 1997 VP Income & Growth - NQ American Century 11.852979 19.240268 62.32% 177,980 1999 Variable Portfolios, 10.086493 11.852979 17.51% 99,298 1998 Inc. - American Century 10.000000 10.086493 0.86% 698 1997 VP International - Q American Century 11.852979 19.240268 62.32% 314,342 1999 Variable Portfolios, 10.086493 11.852979 17.51% 165,809 1998 Inc. - American Century 10.000000 10.086493 0.86% 2,265 1997 VP International - NQ American Century 10.677353 10.475442 -1.89% 99,697 1999 Variable Portfolios, 10.295249 10.677353 3.71% 75,994 1998 Inc. - American Century 10.000000 10.295249 2.95% 1,336 1997 VP Value - Q American Century 10.677353 10.475442 -1.89% 110,453 1999 Variable Portfolios, 10.295249 10.677353 3.71% 72,329 1998 Inc. - American Century 10.000000 10.295249 2.95% 8,217 1997 VP Value - NQ Dreyfus Investment 10.000000 12.895311 28.95% 888 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.895311 28.95% 1,301 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 13.019372 16.757880 28.71% 184,179 1999 Responsible Growth 10.169503 13.019372 28.02% 85,520 1998 Fund, Inc. - Q 10.000000 10.169503 1.70% 4,821 1997
98 101
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD The Dreyfus Socially 13.019372 16.757880 28.71% 321,097 1999 Responsible Growth 10.169503 13.019372 28.02% 135,100 1998 Fund, Inc. - NQ 10.000000 10.169503 1.70% 2,598 1997 Dreyfus Stock Index 13.120640 15.657978 19.34% 1,419,002 1999 Fund, Inc. - Q 10.342079 13.120640 26.87% 774,908 1998 10.000000 10.342079 3.42% 9,203 1997 Dreyfus Stock Index 13.120640 15.657978 19.34% 1,814,349 1999 Fund, Inc. - NQ 10.342079 13.120640 26.87% 913,818 1998 10.000000 10.342079 3.42% 13,090 1997 Dreyfus Variable 13.205079 14.563385 10.29% 341,142 1999 Investment Fund - 10.248351 13.205079 28.85% 127,679 1998 Appreciation Portfolio 10.000000 10.248351 2.48% 3,777 1997 - - Q(1) Dreyfus Variable 13.205079 14.563385 10.29% 488,187 1999 Investment Fund - 10.248351 13.205079 28.85% 246,123 1998 Appreciation Portfolio 10.000000 10.248351 2.48% 706 1997 - - NQ(1) Federated Insurance 10.000000 9.800240 -2.00% 13,067 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.800240 -2.00% 12,939 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.408770 11.995103 5.14% 824,118 1999 Equity-Income 10.336779 11.408770 10.37% 519,240 1998 Portfolio: Service 10.000000 10.336779 3.37% 18,611 1997 Class - Q Fidelity VIP 11.408770 11.995103 5.14% 1,450,150 1999 Equity-Income 10.336779 11.408770 10.37% 864,765 1998 Portfolio: Service 10.000000 10.336779 3.37% 36,514 1997 Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 99 102
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Fidelity VIP Growth 13.831860 18.790040 35.85% 622,310 1999 Portfolio: Service 10.029235 13.831860 37.92% 251,252 1998 Class - Q 10.000000 10.029235 0.29% 4,718 1997 Fidelity VIP Growth 13.831860 18.790040 35.85% 989,940 1999 Portfolio: Service 10.029235 13.831860 37.92% 343,224 1998 Class - NQ 10.000000 10.029235 0.29% 9,713 1997 Fidelity VIP High 9.575458 10.239981 6.94% 755,876 1999 Income Portfolio: 10.125013 9.575458 -5.43% 374,496 1998 Service Class - Q 10.000000 10.125013 1.25% 2,418 1997 Fidelity VIP High 9.575458 10.239981 6.94% 835,175 1999 Income Portfolio: 10.125013 9.575458 -5.43% 597,529 1998 Service Class - NQ 10.000000 10.125013 1.25% 12,697 1997 Fidelity VIP Overseas 11.034969 15.555856 40.97% 146,217 1999 Portfolio: Service 9.900760 11.034969 11.46% 91,010 1998 Class - Q 10.000000 9.900760 -0.99% 887 1997 Fidelity VIP Overseas 11.034969 15.555856 40.97% 210,607 1999 Portfolio: Service 9.900760 11.034969 11.46% 137,943 1998 Class - NQ 10.000000 9.900760 -0.99% 9,071 1997 Fidelity VIP II 12.797393 15.720833 22.84% 508,355 1999 Contrafund(R)Portfolio: 9.953285 12.797393 28.57% 214,094 1998 Service Class - Q 10.000000 9.953285 -0.47% 12,678 1997 Fidelity VIP II 12.797393 15.720833 22.84% 791,389 1999 Contrafund(R) Portfolio: 9.953285 12.797393 28.57% 446,178 1998 Service Class - NQ 10.000000 9.953285 -0.47% 14,306 1997 Fidelity VIP III Growth 12.811215 13.206894 3.09% 427,281 1999 Opportunities 10.398800 12.811215 23.20% 231,430 1998 Portfolio: Service 10.000000 10.398800 3.99% 8,419 1997 Class - Q Fidelity VIP III Growth 12.811215 13.206894 3.09% 467,420 1999 Opportunities 10.398800 12.811215 23.20% 295,189 1998 Portfolio: Service 10.000000 10.398800 3.99% 13,599 1997 Class - NQ
100 103
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Capital 13.353842 13.778852 3.18% 618,426 1999 Appreciation Fund - Q 10.383931 13.353842 28.55% 391,203 1998 10.000000 10.383931 3.84% 4,967 1997 NSAT Capital 13.353842 13.778852 3.18% 696,071 1999 Appreciation Fund - NQ 10.383931 13.353842 28.55% 499,622 1998 10.000000 10.383931 3.84% 23,354 1997 NSAT Government Bond 10.929045 10.560422 -3.37% 624,963 1999 Fund - Q 10.141552 10.929045 7.77% 425,444 1998 10.000000 10.141552 1.42% 17,678 1997 NSAT Government Bond 10.929045 10.560422 -3.37% 905,625 1999 Fund - NQ 10.141552 10.929045 7.77% 578,467 1998 10.000000 10.141552 1.42% 21,953 1997 NSAT Money Market Fund 10.492136 10.885293 3.75% 934,453 1999 - - Q* 10.072429 10.492136 4.17% 771,712 1998 10.000000 10.072429 0.72% 109,198 1997 NSAT Money Market Fund 10.492136 10.885293 3.75% 1,260,592 1999 - - NQ* 10.072429 10.492136 4.17% 929,223 1998 10.000000 10.072429 0.72% 61,681 1997 NSAT Total Return Fund 11.965436 12.661861 5.82% 1,017,235 1999 - - Q 10.241300 11.965436 16.84% 695,020 1998 10.000000 10.241300 2.41% 13,269 1997 NSAT Total Return Fund 11.965436 12.661861 5.82% 1,052,685 1999 - - NQ 10.241300 11.965436 16.84% 694,278 1998 10.000000 10.241300 2.41% 37,377 1997 NSAT Nationwide 10.831355 10.810714 -0.19% 152,824 1999 Balanced Fund - Q 10.129053 10.831355 6.93% 121,918 1998 10.000000 10.129053 1.29% 4,261 1997 NSAT Nationwide 10.831355 10.810714 -0.19% 230,363 1999 Balanced Fund - NQ 10.129053 10.831355 6.93% 149,449 1998 10.000000 10.129053 1.29% 13,393 1997
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.33%. 101 104
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Equity 11.574924 13.571227 17.25% 59,154 1999 Income Fund - Q 10.160070 11.574924 13.93% 32,573 1998 10.000000 10.160070 1.60% 2,466 1997 NSAT Nationwide Equity 11.574924 13.571227 17.25% 81,119 1999 Income Fund - NQ 10.160070 11.574924 13.93% 46,558 1998 10.000000 10.160070 1.60% 2,603 1997 NSAT Nationwide Global 11.907510 14.483618 21.63% 71,686 1999 50 Fund - Q(1) 10.100588 11.907510 17.89% 52,138 1998 10.000000 10.100588 1.01% 1,682 1997 NSAT Nationwide Global 11.907510 14.483618 21.63% 93,077 1999 50 Fund - NQ(1) 10.100588 11.907510 17.89% 52,521 1998 10.000000 10.100588 1.01% 3,870 1997 NSAT Nationwide High 10.689393 10.914588 2.11% 176,564 1999 Income Bond Fund - Q 10.210867 10.689393 4.69% 166,756 1998 10.000000 10.210867 2.11% 2,873 1997 NSAT Nationwide High 10.689393 10.914588 2.11% 286,727 1999 Income Bond Fund - NQ 10.210867 10.689393 4.69% 196,834 1998 10.000000 10.210867 2.11% 15,172 1997 NSAT Nationwide Mid Cap 10.906928 13.050437 19.65% 42,195 1999 Index Fund-Q(2) 9.947507 10.906928 9.64% 20,280 1998 10.000000 9.947507 -0.52% 2,671 1997 NSAT Nationwide Mid Cap 10.906928 13.050437 19.65% 46,779 1999 Index Fund- NQ(2) 9.947507 10.906928 9.64% 35,289 1998 10.000000 9.947507 -0.52% 1,954 1997 NSAT Nationwide Multi 10.240891 10.290997 0.49% 196,859 1999 Sector Bond Fund - Q 10.087176 10.240891 1.52% 180,699 1998 10.000000 10.087176 0.87% 2,097 1997 NSAT Nationwide Multi 10.240891 10.290997 0.49% 314,788 1999 Sector Bond Fund - NQ 10.087176 10.240891 1.52% 200,225 1998 10.000000 10.087176 0.87% 11,411 1997
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 102 105
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Small 10.000000 20.358893 103.59% 6,206 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.358893 103.59% 26,356 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 9.421309 11.917534 26.50% 132,145 1999 Cap Value Fund - Q 9.822329 9.421309 -4.08% 72,105 1998 10.000000 9.822329 -1.78% 3,373 1997 NSAT Nationwide Small 9.421309 11.917534 26.50% 226,896 1999 Cap Value Fund - NQ 9.822329 9.421309 -4.08% 149,068 1998 10.000000 9.822329 -1.78% 5,548 1997 NSAT Nationwide Small 9.606706 13.690433 42.51% 135,870 1999 Company Fund - Q 9.611642 9.606706 -0.05% 103,212 1998 10.000000 9.611642 -3.88% 453 1997 NSAT Nationwide Small 9.606706 13.690433 42.51% 236,341 1999 Company Fund - NQ 9.611642 9.606706 -0.05% 182,983 1998 10.000000 9.611642 -3.88% 12,059 1997 NSAT Nationwide 11.568711 21.149503 82.82% 63,606 1999 Strategic Growth Fund - 10.202497 11.568711 13.39% 28,004 1998 Q 10.000000 10.202497 2.02% 201 1997 NSAT Nationwide 11.568711 21.149503 82.82% 96,599 1999 Strategic Growth Fund - 10.202497 11.568711 13.39% 14,539 1998 NQ 10.000000 10.202497 2.02% 3,231 1997 NSAT Nationwide 10.078441 9.666432 -4.09% 38,395 1999 Strategic Value Fund - Q 10.145838 10.078441 -0.66% 36,418 1998 10.000000 10.145838 1.46% 227 1997 NSAT Nationwide 10.078441 9.666432 -4.09% 82,657 1999 Strategic Value Fund - 10.145838 10.078441 -0.66% 85,804 1998 NQ 10.000000 10.145838 1.46% 5,509 1997
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 103 106
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Neuberger Berman AMT 13.683246 15.561518 13.73% 86,496 1999 Guardian Portfolio - Q 10.502434 13.683246 30.29% 64,230 1998 10.000000 10.502434 5.02% 590 1997 Neuberger Berman AMT 13.683246 15.561518 13.73% 196,408 1999 Guardian Portfolio - NQ 10.502434 13.683246 30.29% 161,709 1998 10.000000 10.502434 5.02% 5,754 1997 Neuberger Berman AMT 16.125954 24.555839 52.28% 103,765 1999 Mid-Cap Growth 11.700489 16.125954 37.82% 41,741 1998 Portfolio - Q 10.000000 11.700489 17.00% 3,696 1997 Neuberger Berman AMT 16.125954 24.555839 52.28% 174,869 1999 Mid-Cap Growth 11.700489 16.125954 37.82% 107,495 1998 Portfolio - NQ 10.000000 11.700489 17.00% 6,472 1997 Neuberger Berman AMT 10.446379 11.098514 6.24% 277,649 1999 Partners Portfolio - Q 10.130813 10.446379 3.11% 269,744 1998 10.000000 10.130813 1.31% 9,975 1997 Neuberger Berman AMT 10.446379 11.098514 6.24% 352,607 1999 Partners Portfolio - NQ 10.130813 10.446379 3.11% 330,876 1998 10.000000 10.130813 1.31% 40,357 1997 Oppenheimer Variable 10.597477 19.253639 81.68% 137,594 1999 Account Funds - 9.531780 10.597477 11.18% 75,188 1998 Oppenheimer Aggressive 10.000000 9.531780 -4.68% 3,437 1997 Growth Fund/VA - Q(1) Oppenheimer Variable 10.597477 19.253639 81.68% 196,300 1999 Account Funds - 9.531780 10.597477 11.18% 118,302 1998 Oppenheimer Aggressive 10.000000 9.531780 -4.68% 11,150 1997 Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 104 107
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Oppenheimer Variable 12.056049 16.898986 40.17% 256,234 1999 Account Funds - 9.825746 12.056049 22.70% 110,392 1998 Oppenheimer Capital 10.000000 9.825746 -1.74% 2,404 1997 Appreciation Fund/VA - Q(1) Oppenheimer Variable 12.056049 16.898986 40.17% 294,790 1999 Account Funds - 9.825746 12.056049 22.70% 122,036 1998 Oppenheimer Capital 10.000000 9.825746 -1.74% 7,972 1997 Appreciation Fund/VA - NQ(1) Oppenheimer Variable 10.627355 12.798619 20.43% 272,722 1999 Account Funds - 10.257840 10.627355 3.60% 151,176 1998 Oppenheimer Main Street 10.000000 10.257840 2.58% 1,064 1997 Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 10.627355 12.798619 20.43% 459,069 1999 Account Funds - 10.257840 10.627355 3.60% 254,947 1998 Oppenheimer Main Street 10.000000 10.257840 2.58% 15,025 1997 Growth & Income Fund/VA - - NQ(2) The Universal 7.387124 9.456874 28.02% 20,164 1999 Institutional Funds, 10.423780 7.387124 -29.13% 9,703 1998 Inc. - Emerging Markets 10.000000 10.423780 4.24% 204 1997 Debt Portfolio - Q(3) The Universal 7.387124 9.456874 28.02% 24,015 1999 Institutional Funds, 10.423780 7.387124 -29.13% 19,124 1998 Inc. - Emerging Markets 10.000000 10.423780 4.24% 1,531 1997 Debt Portfolio - NQ(3) Van Eck Worldwide 5.744349 11.384426 98.18% 66,887 1999 Insurance Trust - 8.813437 5.744349 -34.82% 31,317 1998 Worldwide Emerging 10.000000 8.813437 -11.87% 733 1997 Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 105 108
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Van Eck Worldwide 5.744349 11.384426 98.18% 80,175 1999 Insurance Trust - 8.813437 5.744349 -34.82% 46,981 1998 Worldwide Emerging 10.000000 8.813437 -11.87% 779 1997 Markets Fund - NQ Van Eck Worldwide 6.132522 7.342607 19.73% 33,535 1999 Insurance Trust - 8.978030 6.132522 -31.69% 10,468 1998 Worldwide Hard Assets 10.000000 8.978030 -10.22% 206 1997 Fund - Q Van Eck Worldwide 6.132522 7.342607 19.73% 19,917 1999 Insurance Trust - 8.978030 6.132522 -31.69% 17,880 1998 Worldwide Hard Assets 10.000000 8.978030 -10.22% 1,789 1997 Fund - NQ Van Kampen Life 9.039759 8.643190 -4.39% 52,923 1999 Investment Trust - 10.337004 9.039759 -12.55% 40,468 1998 Morgan Stanley Real 10.000000 10.337004 3.37% 416 1997 Estate Securities Portfolio - Q Van Kampen Life 9.039759 8.643190 -4.39% 80,562 1999 Investment Trust - 10.337004 9.039759 -12.55% 71,613 1998 Morgan Stanley Real 10.000000 10.337004 3.37% 10,121 1997 Estate Securities Portfolio - NQ Warburg Pincus Trust - 10.382320 16.796919 61.78% 39,482 1999 Global Post-Venture 9.851173 10.382320 5.39% 32,373 1998 Capital Portfolio - Q(1) 10.000000 9.851173 -1.49% 830 1997 Warburg Pincus Trust - 10.382320 16.796919 61.78% 65,236 1999 Global Post-Venture 9.851173 10.382320 5.39% 39,431 1998 Capital Portfolio - NQ(1) 10.000000 9.851173 -1.49% 2,366 1997
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 106 109
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Warburg Pincus Trust - 9.854235 14.961024 51.82% 69,567 1999 International Equity 9.453278 9.854235 4.24% 43,919 1998 Portfolio - Q 10.000000 9.453278 -5.47% 866 1997 Warburg Pincus Trust - 9.854235 14.961024 51.82% 84,777 1999 International Equity 9.453278 9.854235 4.24% 82,462 1998 Portfolio - NQ 10.000000 9.453278 -5.47% 5,787 1997 Warburg Pincus Trust - 11.507907 12.098010 5.13% 21,640 1999 Value Portfolio - Q(1) 10.371958 11.507907 10.95% 18,436 1998 10.000000 10.371958 3.72% 2,908 1997 Warburg Pincus Trust - 11.507907 12.098010 5.13% 101,514 1999 Value Portfolio - NQ(1) 10.371958 11.507907 10.95% 71,280 1998 10.000000 10.371958 3.72% 4,127 1997
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 107 110 OPTIONAL BENEFITS ELECTED (TOTAL 1.10%) (VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD American Century 12.515499 14.608384 16.72% 11,848 1999 Variable Portfolios, 10.000000 12.515499 25.15% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.515499 14.608384 16.72% 17,143 1999 Variable Portfolios, 10.000000 12.515499 25.15% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 12.062037 19.569739 62.24% 1,881 1999 Variable Portfolios, 10.000000 12.062037 20.62% 0 1998 Inc. - American Century VP International - Q American Century 12.062037 19.569739 62.24% 14,297 1999 Variable Portfolios, 10.000000 12.062037 20.62% 0 1998 Inc. - American Century VP International - NQ American Century 11.279817 11.060928 -1.94% 1,713 1999 Variable Portfolios, 10.000000 11.279817 12.80% 0 1998 Inc. - American Century VP Value - Q American Century 11.279817 11.060928 -1.94% 3,204 1999 Variable Portfolios, 10.000000 11.279817 12.80% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.893630 28.94% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.893630 28.94% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.784895 16.447766 28.65% 6,911 1999 Responsible Growth 10.000000 12.784895 27.85% 0 1998 Fund, Inc. - Q
108 111
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD The Dreyfus Socially 12.784895 16.447766 28.65% 15,350 1999 Responsible Growth 10.000000 12.784895 27.85% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.464249 14.867150 19.28% 40,973 1999 Fund, Inc. - Q 10.000000 12.464249 24.64% 0 1998 Dreyfus Stock Index 12.464249 14.867150 19.28% 48,963 1999 Fund, Inc. - NQ 10.000000 12.464249 24.64% 0 1998 Dreyfus Variable 12.389971 13.657521 10.23% 2,736 1999 Investment Fund - 10.000000 12.389971 23.90% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.389971 13.657521 10.23% 7,367 1999 Investment Fund - 10.000000 12.389971 23.90% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.796953 -2.03% 2,037 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.796953 -2.03% 3,679 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.809798 12.410474 5.09% 10,095 1999 Equity-Income 10.000000 11.809798 18.10% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.809798 12.410474 5.09% 46,500 1999 Equity-Income 10.000000 11.809798 18.10% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 109 112
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Fidelity VIP Growth 12.914475 17.534950 35.78% 29,966 1999 Portfolio: Service 10.000000 12.914475 29.14% 0 1998 Class - Q Fidelity VIP Growth 12.914475 17.534950 35.78% 33,667 1999 Portfolio: Service 10.000000 12.914475 29.14% 0 1998 Class - NQ Fidelity VIP High 10.530579 11.255695 6.89% 11,332 1999 Income Portfolio: 10.000000 10.530579 5.31% 0 1998 Service Class - Q Fidelity VIP High 10.530579 11.255695 6.89% 8,123 1999 Income Portfolio: 10.000000 10.530579 5.31% 0 1998 Service Class - NQ Fidelity VIP Overseas 12.187321 17.171657 40.90% 722 1999 Portfolio: Service 10.000000 12.187321 21.87% 0 1998 Class - Q Fidelity VIP Overseas 12.187321 17.171657 40.90% 6,837 1999 Portfolio: Service 10.000000 12.187321 21.87% 0 1998 Class - NQ Fidelity VIP II 12.797152 15.712599 22.78% 12,569 1999 Contrafund(R) Portfolio: 10.000000 12.797152 27.97% 0 1998 Service Class - Q Fidelity VIP II 12.797152 15.712599 22.78% 25,288 1999 Contrafund(R) Portfolio: 10.000000 12.797152 27.97% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.309512 12.683293 3.04% 5,188 1999 Opportunities 10.000000 12.309512 23.10% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.309512 12.683293 3.04% 13,511 1999 Opportunities 10.000000 12.309512 23.10% 0 1998 Portfolio: Service Class - NQ
110 113
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Capital 12.439602 12.829034 3.13% 15,721 1999 Appreciation Fund - Q 10.000000 12.439602 24.40% 0 1998 NSAT Capital 12.439602 12.829034 3.13% 23,867 1999 Appreciation Fund - NQ 10.000000 12.439602 24.40% 0 1998 NSAT Government Bond 9.853072 9.515930 -3.42% 14,527 1999 Fund - Q 10.000000 9.853072 -1.47% 0 1998 NSAT Government Bond 9.853072 9.515930 -3.42% 7,566 1999 Fund - NQ 10.000000 9.853072 -1.47% 0 1998 NSAT Money Market Fund 10.095781 10.468792 3.69% 7,371 1999 - - Q* 10.000000 10.095781 0.96% 0 1998 NSAT Money Market Fund 10.095781 10.468792 3.69% 27,548 1999 - - NQ* 10.000000 10.095781 0.96% 0 1998 NSAT Total Return Fund 11.993303 12.684916 5.77% 32,768 1999 - - Q 10.000000 11.993303 19.93% 0 1998 NSAT Total Return Fund 11.993303 12.684916 5.77% 33,223 1999 - - NQ 10.000000 11.993303 19.93% 0 1998 NSAT Nationwide 10.677473 10.651741 -0.24% 3,407 1999 Balanced Fund - Q 10.000000 10.677473 6.77% 0 1998 NSAT Nationwide 10.677473 10.651741 -0.24% 7,053 1999 Balanced Fund - NQ 10.000000 10.677473 6.77% 0 1998
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.28%. 111 114
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Equity 11.846282 13.882376 17.19% 1,139 1999 Income Fund - Q 10.000000 11.846282 18.46% 0 1998 NSAT Nationwide Equity 11.846282 13.882376 17.19% 673 1999 Income Fund - NQ 10.000000 11.846282 18.46% 0 1998 NSAT Nationwide Global 12.212250 14.846771 21.57% 62 1999 50 Fund - Q(1) 10.000000 12.212250 22.12% 0 1998 NSAT Nationwide Global 12.212250 14.846771 21.57% 1,907 1999 50 Fund - NQ(1) 10.000000 12.212250 22.12% 0 1998 NSAT Nationwide High 10.339812 10.552305 2.06% 278 1999 Income Bond Fund - Q 10.000000 10.339812 3.40% 0 1998 NSAT Nationwide High 10.339812 10.552305 2.06% 164 1999 Income Bond Fund - NQ 10.000000 10.339812 3.40% 0 1998 NSAT Nationwide Mid Cap 12.253848 14.654661 19.59% 78 1999 Index Fund-Q(2) 10.000000 12.253848 22.54% 0 1998 NSAT Nationwide Mid Cap 12.253848 14.654661 19.59% 0 1999 Index Fund- NQ(2) 10.000000 12.253848 22.54% 0 1998 NSAT Nationwide Multi 10.245831 10.290756 0.44% 439 1999 Sector Bond Fund - Q 10.000000 10.245831 2.46% 0 1998 NSAT Nationwide Multi 10.245831 10.290756 0.44% 1,042 1999 Sector Bond Fund - NQ 10.000000 10.245831 2.46% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 112 115
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Small 10.000000 20.352098 103.52% 16 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.352098 103.52% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.964349 16.391038 26.43% 326 1999 Cap Value Fund - Q 10.000000 12.964349 29.64% 0 1998 NSAT Nationwide Small 12.964349 16.391038 26.43% 2,006 1999 Cap Value Fund - NQ 10.000000 12.964349 29.64% 0 1998 NSAT Nationwide Small 12.123056 17.267747 42.44% 2,392 1999 Company Fund - Q 10.000000 12.123056 21.23% 0 1998 NSAT Nationwide Small 12.123056 17.267747 42.44% 1,126 1999 Company Fund - NQ 10.000000 12.123056 21.23% 0 1998 NSAT Nationwide 12.668723 23.148836 82.72% 2,519 1999 Strategic Growth Fund - 10.000000 12.668723 26.69% 0 1998 Q NSAT Nationwide 12.668723 23.148836 82.72% 3,783 1999 Strategic Growth Fund - 10.000000 12.668723 26.69% 0 1998 NQ NSAT Nationwide 13.028676 12.489739 -4.14% 794 1999 Strategic Value Fund - Q 10.000000 13.028676 30.29% 0 1998 NSAT Nationwide 13.028676 12.489739 -4.14% 0 1999 Strategic Value Fund - 10.000000 13.028676 30.29% 0 1998 NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 113 116
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Neuberger Berman AMT 12.887023 14.648600 13.67% 2,098 1999 Guardian Portfolio - NQ 10.000000 12.887023 28.87% 0 1998 Neuberger Berman AMT 14.077949 21.426404 52.20% 817 1999 Mid-Cap Growth 10.000000 14.077949 40.78% 0 1998 Portfolio - Q Neuberger Berman AMT 14.077949 21.426404 52.20% 2,820 1999 Mid-Cap Growth 10.000000 14.077949 40.78% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.858021 12.591929 6.19% 3,378 1999 Partners Portfolio - Q 10.000000 11.858021 18.58% 0 1998 Neuberger Berman AMT 11.858021 12.591929 6.19% 3,470 1999 Partners Portfolio - NQ 10.000000 11.858021 18.58% 0 1998 Oppenheimer Variable 13.191805 23.954947 81.59% 2,681 1999 Account Funds - 10.000000 13.191805 31.92% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 13.191805 23.954947 81.59% 7,186 1999 Account Funds - 10.000000 13.191805 31.92% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1) Oppenheimer Variable 13.244991 18.556149 40.10% 9,317 1999 Account Funds - 10.000000 13.244991 32.45% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(2)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. 114 117
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Oppenheimer Variable 13.244991 18.556149 40.10% 8,168 1999 Account Funds - 10.000000 13.244991 32.45% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.340636 14.854438 20.37% 6,431 1999 Account Funds - 10.000000 12.340636 23.41% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.340636 14.854438 20.37% 11,182 1999 Account Funds - 10.000000 12.340636 23.41% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.395495 14.580968 27.95% 0 1999 Institutional Funds, 10.000000 11.395495 13.95% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.395495 14.580968 27.95% 0 1999 Institutional Funds, 10.000000 11.395495 13.95% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.634284 25.026598 98.08% 64 1999 Insurance Trust - 10.000000 12.634284 26.34% 0 1998 Worldwide Emerging Markets Fund - Q Van Eck Worldwide 12.634284 25.026598 98.08% 50 1999 Insurance Trust - 10.000000 12.634284 26.34% 0 1998 Worldwide Emerging Markets Fund - NQ
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 115 118
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Van Eck Worldwide 9.918535 11.869689 19.67% 0 1999 Insurance Trust - 10.000000 9.918535 -0.81% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 9.918535 11.869689 19.67% 0 1999 Insurance Trust - 10.000000 9.918535 -0.81% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.411332 9.949557 -4.44% 987 1999 Investment Trust - 10.000000 10.411332 4.11% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.411332 9.949557 -4.44% 0 1999 Investment Trust - 10.000000 10.411332 4.11% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.839012 20.760969 61.70% 0 1999 Global Post-Venture 10.000000 12.839012 28.39% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.839012 20.760969 61.70% 0 1999 Global Post-Venture 10.000000 12.839012 28.39% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 11.551939 17.529681 51.75% 446 1999 International Equity 10.000000 11.551939 15.52% 0 1998 Portfolio - Q Warburg Pincus Trust - 11.551939 17.529681 51.75% 0 1999 International Equity 10.000000 11.551939 15.52% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 116 119
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Warburg Pincus Trust - 11.896081 12.499772 5.07% 772 1999 Value Portfolio - Q(1) 10.000000 11.896081 18.96% 0 1998 Warburg Pincus Trust - 11.896081 12.499772 5.07% 0 1999 Value Portfolio - NQ(1) 10.000000 11.896081 18.96% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 117 120 OPTIONAL BENEFITS ELECTED (TOTAL 1.15%) (VARIABLE ACCOUNT CHARGES OF 1.15% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD American Century 12.513926 14.599165 16.66% 108 1999 Variable Portfolios, 10.000000 12.513926 25.14% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.513926 14.599165 16.66% 0 1999 Variable Portfolios, 10.000000 12.513926 25.14% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 12.060517 19.557409 62.16% 238 1999 Variable Portfolios, 10.000000 12.060517 20.61% 0 1998 Inc. - American Century VP International - Q American Century 12.060517 19.557409 62.16% 1,215 1999 Variable Portfolios, 10.000000 12.060517 20.61% 0 1998 Inc. - American Century VP International - NQ American Century 11.278389 11.053935 -1.99% 0 1999 Variable Portfolios, 10.000000 11.278389 12.78% 0 1998 Inc. - American Century VP Value - Q American Century 11.278389 11.053935 -1.99% 334 1999 Variable Portfolios, 10.000000 11.278389 12.78% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.891928 28.92% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.891928 28.92% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.783289 16.437396 28.59% 1,671 1999 Responsible Growth 10.000000 12.783289 27.83% 0 1998 Fund, Inc. - Q
118 121
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD The Dreyfus Socially 12.783289 16.437396 28.59% 4,361 1999 Responsible Growth 10.000000 12.783289 27.83% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.462691 14.857773 19.22% 8,746 1999 Fund, Inc. - Q 10.000000 12.462691 24.63% 0 1998 Dreyfus Stock Index 12.462691 14.857773 19.22% 13,688 1999 Fund, Inc. - NQ 10.000000 12.462691 24.63% 0 1998 Dreyfus Variable 12.388419 13.648909 10.17% 1,585 1999 Investment Fund - 10.000000 12.388419 23.88% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.388419 13.648909 10.17% 4,871 1999 Investment Fund - 10.000000 12.388419 23.88% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.793677 -2.06% 0 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.793677 -2.06% 3,409 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.808307 12.402631 5.03% 648 1999 Equity-Income 10.000000 11.808307 18.08% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.808307 12.402631 5.03% 5,161 1999 Equity-Income 10.000000 11.808307 18.08% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 119 122
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Fidelity VIP Growth 12.912859 17.523903 35.71% 1,751 1999 Portfolio: Service 10.000000 12.912859 29.13% 0 1998 Class - Q Fidelity VIP Growth 12.912859 17.523903 35.71% 8,532 1999 Portfolio: Service 10.000000 12.912859 29.13% 0 1998 Class - NQ Fidelity VIP High 10.529250 11.248584 6.83% 0 1999 Income Portfolio: 10.000000 10.529250 5.29% 0 1998 Service Class - Q Fidelity VIP High 10.529250 11.248584 6.83% 3,763 1999 Income Portfolio: 10.000000 10.529250 5.29% 0 1998 Service Class - NQ Fidelity VIP Overseas 12.185792 17.160838 40.83% 0 1999 Portfolio: Service 10.000000 12.185792 21.86% 0 1998 Class - Q Fidelity VIP Overseas 12.185792 17.160838 40.83% 28 1999 Portfolio: Service 10.000000 12.185792 21.86% 0 1998 Class - NQ Fidelity VIP II 12.795546 15.702687 22.72% 3,529 1999 Contrafund(R)Portfolio: 10.000000 12.795546 27.96% 0 1998 Service Class - Q Fidelity VIP II 12.795546 15.702687 22.72% 5,228 1999 Contrafund(R)Portfolio: 10.000000 12.795546 27.96% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.307964 12.675276 2.98% 242 1999 Opportunities 10.000000 12.307964 23.08% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.307964 12.675276 2.98% 4,917 1999 Opportunities 10.000000 12.307964 23.08% 0 1998 Portfolio: Service Class - NQ
120 123
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Capital 12.438039 12.820934 3.08% 3,353 1999 Appreciation Fund - Q 10.000000 12.438039 24.38% 0 1998 NSAT Capital 12.438039 12.820934 3.08% 7,442 1999 Appreciation Fund - NQ 10.000000 12.438039 24.38% 0 1998 NSAT Government Bond 9.851828 9.509925 -3.47% 151 1999 Fund - Q 10.000000 9.851828 -1.48% 0 1998 NSAT Government Bond 9.851828 9.509925 -3.47% 10,380 1999 Fund - NQ 10.000000 9.851828 -1.48% 0 1998 NSAT Money Market Fund 10.094495 10.462170 3.64% 2,031 1999 - - Q* 10.000000 10.094495 0.94% 0 1998 NSAT Money Market Fund 10.094495 10.462170 3.64% 2,358 1999 - - NQ* 10.000000 10.094495 0.94% 0 1998 NSAT Total Return Fund 11.991803 12.676933 5.71% 2,576 1999 - - Q 10.000000 11.991803 19.92% 0 1998 NSAT Total Return Fund 11.991803 12.676933 5.71% 6,477 1999 - - NQ 10.000000 11.991803 19.92% 0 1998 NSAT Nationwide 10.676123 10.645005 -0.29% 0 1999 Balanced Fund - Q 10.000000 10.676123 6.76% 0 1998 NSAT Nationwide 10.676123 10.645005 -0.29% 0 1999 Balanced Fund - NQ 10.000000 10.676123 6.76% 0 1998
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.23%. 121 124
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Equity 11.844786 13.873607 17.13% 0 1999 Income Fund - Q 10.000000 11.844786 18.45% 0 1998 NSAT Nationwide Equity 11.844786 13.873607 17.13% 835 1999 Income Fund - NQ 10.000000 11.844786 18.45% 0 1998 NSAT Nationwide Global 12.210713 14.837408 21.51% 783 1999 50 Fund - Q(1) 10.000000 12.210713 22.11% 0 1998 NSAT Nationwide Global 12.210713 14.837408 21.51% 277 1999 50 Fund - NQ(1) 10.000000 12.210713 22.11% 0 1998 NSAT Nationwide High 10.338506 10.545637 2.00% 0 1999 Income Bond Fund - Q 10.000000 10.338506 3.39% 0 1998 NSAT Nationwide High 10.338506 10.545637 2.00% 0 1999 Income Bond Fund - NQ 10.000000 10.338506 3.39% 0 1998 NSAT Nationwide Mid Cap 12.252304 14.645409 19.53% 0 1999 Index Fund-Q(2) 10.000000 12.252304 22.52% 0 1998 NSAT Nationwide Mid Cap 12.252304 14.645409 19.53% 30 1999 Index Fund- NQ(2) 10.000000 12.252304 22.52% 0 1998 NSAT Nationwide Multi 10.244538 10.284262 0.39% 0 1999 Sector Bond Fund - Q 10.000000 10.244538 2.45% 0 1998 NSAT Nationwide Multi 10.244538 10.284262 0.39% 2,287 1999 Sector Bond Fund - NQ 10.000000 10.244538 2.45% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 122 125
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Small 10.000000 20.345317 103.45% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.345317 103.45% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.962717 16.380692 26.37% 0 1999 Cap Value Fund - Q 10.000000 12.962717 29.63% 0 1998 NSAT Nationwide Small 12.962717 16.380692 26.37% 1,583 1999 Cap Value Fund - NQ 10.000000 12.962717 29.63% 0 1998 NSAT Nationwide Small 12.121529 17.256864 42.37% 0 1999 Company Fund - Q 10.000000 12.121529 21.22% 0 1998 NSAT Nationwide Small 12.121529 17.256864 42.37% 6,650 1999 Company Fund - NQ 10.000000 12.121529 21.22% 0 1998 NSAT Nationwide 12.667131 23.134244 82.63% 4 1999 Strategic Growth Fund - 10.000000 12.667131 26.67% 0 1998 Q NSAT Nationwide 12.667131 23.134244 82.63% 0 1999 Strategic Growth Fund - 10.000000 12.667131 26.67% 0 1998 NQ NSAT Nationwide 13.027042 12.481871 -4.18% 587 1999 Strategic Value Fund - Q 10.000000 13.027042 30.27% 0 1998 NSAT Nationwide 13.027042 12.481871 -4.18% 0 1999 Strategic Value Fund - 10.000000 13.027042 30.27% 0 1998 NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 123 126
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Neuberger Berman AMT 12.885403 14.639366 13.61% 562 1999 Guardian Portfolio - Q 10.000000 12.885403 28.85% 0 1998 Neuberger Berman AMT 12.885403 14.639366 13.61% 682 1999 Guardian Portfolio - NQ 10.000000 12.885403 28.85% 0 1998 Neuberger Berman AMT 14.076184 21.412911 52.12% 196 1999 Mid-Cap Growth 10.000000 14.076184 40.76% 0 1998 Portfolio - Q Neuberger Berman AMT 14.076184 21.412911 52.12% 0 1999 Mid-Cap Growth 10.000000 14.076184 40.76% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.856528 12.583972 6.14% 1,898 1999 Partners Portfolio - Q 10.000000 11.856528 18.57% 0 1998 Neuberger Berman AMT 11.856528 12.583972 6.14% 0 1999 Partners Portfolio - NQ 10.000000 11.856528 18.57% 0 1998 Oppenheimer Variable 13.190143 23.939845 81.50% 1,649 1999 Account Funds - 10.000000 13.190143 31.90% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 13.190143 23.939845 81.50% 219 1999 Account Funds - 10.000000 13.190143 31.90% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1) Oppenheimer Variable 13.243332 18.544459 40.03% 273 1999 Account Funds - 10.000000 13.243332 32.43% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(2)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. 124 127
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Oppenheimer Variable 13.243332 18.544459 40.03% 4,930 1999 Account Funds - 10.000000 13.243332 32.43% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.339083 14.845060 20.31% 2,081 1999 Account Funds - 10.000000 12.339083 23.39% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.339083 14.845060 20.31% 2,789 1999 Account Funds - 10.000000 12.339083 23.39% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.394055 14.571756 27.01% 0 1999 Institutional Funds, 10.000000 11.394055 13.94% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.394055 14.571756 27.01% 0 1999 Institutional Funds, 10.000000 11.394055 13.94% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.632701 25.010854 97.99% 165 1999 Insurance Trust - 10.000000 12.632701 26.33% 0 1998 Worldwide Emerging Markets Fund - Q Van Eck Worldwide 12.632701 25.010854 97.99% 0 1999 Insurance Trust - 10.000000 12.632701 26.33% 0 1998 Worldwide Emerging Markets Fund - NQ
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 125 128
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Van Eck Worldwide 9.917280 11.862189 19.61% 319 1999 Insurance Trust - 10.000000 9.917280 0.83% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 9.917280 11.862189 19.61% 0 1999 Insurance Trust - 10.000000 9.917280 0.83% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.410018 9.943271 -4.48% 0 1999 Investment Trust - 10.000000 10.410018 4.10% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.410018 9.943271 -4.48% 0 1999 Investment Trust - 10.000000 10.410018 4.10% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.837404 20.747888 61.62% 0 1999 Global Post-Venture 10.000000 12.837404 28.37% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.837404 20.747888 61.62% 0 1999 Global Post-Venture Capital Portfolio - NQ(1) 10.000000 12.837404 28.37% 0 1998 Warburg Pincus Trust - 11.550487 17.518646 51.67% 0 1999 International Equity 10.000000 11.550487 15.50% 0 1998 Portfolio - Q Warburg Pincus Trust - 11.550487 17.518646 51.67% 0 1999 International Equity 10.000000 11.550487 15.50% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 126 129
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Warburg Pincus Trust - 11.894592 12.491882 5.02% 679 1999 Value Portfolio - Q(1) Warburg Pincus Trust - 11.894592 12.491882 5.02% 0 1999 Value Portfolio - NQ(1) 10.000000 11.894592 18.95% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 127 130 OPTIONAL BENEFITS ELECTED (TOTAL 1.20%) (VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD American Century 12.431326 14.495483 16.60% 6,366 1999 Variable Portfolios, 10.000000 12.431326 24.31% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.431326 14.495483 16.60% 3,669 1999 Variable Portfolios, 10.000000 12.431326 24.31% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 10.904652 17.674116 62.08% 3,355 1999 Variable Portfolios, 10.000000 10.904652 9.05% 0 1998 Inc. - American Century VP International - Q American Century 10.904652 17.674116 62.08% 3,586 1999 Variable Portfolios, 10.000000 10.904652 9.05% 0 1998 Inc. - American Century VP International - NQ American Century 11.497731 11.263216 -2.04% 2,403 1999 Variable Portfolios, 10.000000 11.497731 14.98% 0 1998 Inc. - American Century VP Value - Q American Century 11.497731 11.263216 -2.04% 1,203 1999 Variable Portfolios, 10.000000 11.497731 14.98% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.890242 28.90% 4 1999 Portfolios - European 10.000000 12.890242 28.90% 4 Equity Portfolio - Q Dreyfus Investment 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.758878 16.397708 28.52% 13,289 1999 Responsible Growth 10.000000 12.758878 27.59% 0 1998 Fund, Inc. - Q
128 131
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD The Dreyfus Socially 12.758878 16.397708 28.52% 4,992 1999 Responsible Growth 10.000000 12.758878 27.59% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.367188 14.736468 19.16% 59,071 1999 Fund, Inc. - Q 10.000000 12.367188 23.67% 0 1998 Dreyfus Stock Index 12.367188 14.736468 19.16% 27,321 1999 Fund, Inc. - NQ 10.000000 12.367188 23.67% 0 1998 Dreyfus Variable 12.207586 13.442893 10.12% 8,970 1999 Investment Fund - 10.000000 12.207586 22.08% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.207586 13.442893 10.12% 2,553 1999 Investment Fund - 10.000000 12.207586 22.08% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.790385 -2.10% 968 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.790385 -2.10% 310 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.850451 12.440601 4.98% 11,873 1999 Equity-Income 10.000000 11.850451 18.50% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.850451 12.440601 4.98% 8,503 1999 Equity-Income 10.000000 11.850451 18.50% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 129 132
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Fidelity VIP Growth 13.015101 17.653733 35.64% 32,098 1999 Portfolio: Service 10.000000 13.015101 30.15% 0 1998 Class - Q Fidelity VIP Growth 13.015101 17.653733 35.64% 19,070 1999 Portfolio: Service 10.000000 13.015101 30.15% 0 1998 Class - NQ Fidelity VIP High 10.384114 11.087928 6.78% 5,437 1999 Income Portfolio: 10.000000 10.384114 3.84% 0 1998 Service Class - Q Fidelity VIP High 10.384114 11.087928 6.78% 2,342 1999 Income Portfolio: 10.000000 10.384114 3.84% 0 1998 Service Class - NQ Fidelity VIP Overseas 11.296846 15.900927 40.76% 3,366 1999 Portfolio: Service 10.000000 11.296846 12.97% 0 1998 Class - Q Fidelity VIP Overseas 11.296846 15.900927 40.76% 2,472 1999 Portfolio: Service 10.000000 11.296846 12.97% 0 1998 Class - NQ Fidelity VIP II 12.602507 15.457984 22.66% 17,988 1999 Contrafund(R)Portfolio: 10.000000 12.602507 26.03% 0 1998 Service Class - Q Fidelity VIP II 12.602507 15.457984 22.66% 14,065 1999 Contrafund(R)Portfolio: 10.000000 12.602507 26.03% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.421717 12.785984 2.93% 6,954 1999 Opportunities 10.000000 12.421717 24.22% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.421717 12.785984 2.93% 5,560 1999 Opportunities 10.000000 12.421717 24.22% 0 1998 Portfolio: Service Class - NQ
130 133
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Capital 12.392954 12.767993 3.03% 26,101 1999 Appreciation Fund - Q 10.000000 12.392954 23.93% 0 1998 NSAT Capital 12.392954 12.767993 3.03% 6,688 1999 Appreciation Fund - NQ 10.000000 12.392954 23.93% 0 1998 NSAT Government Bond 10.174058 9.816007 -3.52% 3,655 1999 Fund - Q 10.000000 10.174058 1.74% 0 1998 NSAT Government Bond 10.174058 9.816007 -3.52% 6,828 1999 Fund - NQ 10.000000 10.174058 1.74% 0 1998 NSAT Money Market Fund 10.126097 10.489614 3.59% 25,530 1999 - - Q* 10.000000 10.126097 1.26% 0 1998 NSAT Money Market Fund 10.126097 10.489614 3.59% 4,617 1999 - - NQ* 10.000000 10.126097 1.26% 0 1998 NSAT Total Return Fund 11.968910 12.646339 5.66% 37,667 1999 - - Q 10.000000 11.968910 19.69% 0 1998 NSAT Total Return Fund 11.968910 12.646339 5.66% 11,345 1999 - - NQ 10.000000 11.968910 19.69% 0 1998 NSAT Nationwide 10.772545 10.735723 -0.34% 5,562 1999 Balanced Fund - Q 10.000000 10.772545 7.73% 0 1998 NSAT Nationwide 10.772545 10.735723 -0.34% 3,978 1999 Balanced Fund - NQ 10.000000 10.772545 7.73% 0 1998
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.18%. 131 134
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Equity 11.927845 13.963829 17.07% 1,275 1999 Income Fund - Q 10.000000 11.927845 19.28% 0 1998 NSAT Nationwide Equity 11.927845 13.963829 17.07% 279 1999 Income Fund - NQ 10.000000 11.927845 19.28% 0 1998 NSAT Nationwide Global 11.747364 14.267173 21.45% 1,239 1999 50 Fund - Q(1) 10.000000 11.747364 17.47% 0 1998 NSAT Nationwide Global 11.747364 14.267173 21.45% 716 1999 50 Fund - NQ(1) 10.000000 11.747364 17.47% 0 1998 NSAT Nationwide High 10.558563 10.764664 1.95% 1,611 1999 Income Bond Fund - Q 10.000000 10.558563 5.59% 0 1998 NSAT Nationwide High 10.558563 10.764664 1.95% 399 1999 Income Bond Fund - NQ 10.000000 10.558563 5.59% 0 1998 NSAT Nationwide Mid Cap 12.257790 14.644558 19.47% 591 1999 Index Fund-Q(2) 10.000000 12.257790 22.58% 0 1998 NSAT Nationwide Mid Cap 12.257790 14.644558 19.47% 2,148 1999 Index Fund- NQ(2) 10.000000 12.257790 22.58% 0 1998 NSAT Nationwide Multi 10.475252 10.510552 0.34% 8 1999 Sector Bond Fund - Q 10.000000 10.475252 4.75% 0 1998 NSAT Nationwide Multi 10.475252 10.510552 0.34% 1,528 1999 Sector Bond Fund - NQ 10.000000 10.475252 4.75% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 132 135
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Small 10.000000 20.338511 103.39% 259 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.338511 103.39% 550 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.586199 15.896867 26.30% 2,593 1999 Cap Value Fund - Q 10.000000 12.586199 25.86% 0 1998 NSAT Nationwide Small 12.586199 15.896867 26.30% 3,985 1999 Cap Value Fund - NQ 10.000000 12.586199 25.86% 0 1998 NSAT Nationwide Small 12.016781 17.099098 42.29% 1,372 1999 Company Fund - Q 10.000000 12.016781 20.17% 0 1998 NSAT Nationwide Small 12.016781 17.099098 42.29% 718 1999 Company Fund - NQ 10.000000 12.016781 20.17% 0 1998 NSAT Nationwide 12.463581 22.750997 82.54% 1,256 1999 Strategic Growth Fund - 10.000000 12.463581 24.64% 0 1998 Q NSAT Nationwide 12.463581 22.750997 82.54% 1,581 1999 Strategic Growth Fund - 10.000000 12.463581 24.64% 0 1998 NQ NSAT Nationwide 12.477330 11.949113 -4.23% 140 1999 Strategic Value Fund - Q 10.000000 12.477330 24.77% 0 1998 NSAT Nationwide 12.477330 11.949113 -4.23% 849 1999 Strategic Value Fund - 10.000000 12.477330 24.77% 0 1998 NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 133 136
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Neuberger Berman AMT 12.307946 13.976229 13.55% 629 1999 Guardian Portfolio - Q 10.000000 12.307946 23.08% 0 1998 Neuberger Berman AMT 12.307946 13.976229 13.55% 464 1999 Guardian Portfolio - NQ 10.000000 12.307946 23.08% 0 1998 Neuberger Berman AMT 13.702754 20.834304 52.04% 3,981 1999 Mid-Cap Growth 10.000000 13.702754 37.03% 0 1998 Portfolio - Q Neuberger Berman AMT 13.702754 20.834304 52.04% 2,641 1999 Mid-Cap Growth 10.000000 13.702754 37.03% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.821068 12.539993 6.08% 1,177 1999 Partners Portfolio - Q 10.000000 11.821068 18.21% 0 1998 Neuberger Berman AMT 11.821068 12.539993 6.08% 1,352 1999 Partners Portfolio - NQ 10.000000 11.821068 18.21% 0 1998 Oppenheimer Variable 12.961315 23.512658 81.41% 7,841 1999 Account Funds - 10.000000 12.961315 29.61% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 12.961315 23.512658 81.41% 2,379 1999 Account Funds - 10.000000 12.961315 29.61% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1) Oppenheimer Variable 12.752843 17.848621 39.96% 11,012 1999 Account Funds - 10.000000 12.752843 27.53% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(2)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. 134 137
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Oppenheimer Variable 112.752843 17.848621 39.96% 5,961 1999 Account Funds - 10.000000 12.752843 27.53% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.149185 14.609212 20.25% 10,894 1999 Account Funds - 10.000000 12.149185 21.49% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.149185 14.609212 20.25% 7,664 1999 Account Funds - 10.000000 12.149185 21.49% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.400149 14.572201 27.82% 285 1999 Institutional Funds, 10.000000 11.400149 14.00% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.400149 14.572201 27.82% 103 1999 Institutional Funds, 10.000000 11.400149 14.00% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.101814 23.947713 97.89% 818 1999 Insurance Trust - 10.000000 12.101814 21.02% 0 1998 Worldwide Emerging Markets Fund - Q Van Eck Worldwide 12.101814 23.947713 97.89% 1,036 1999 Insurance Trust - 10.000000 12.101814 21.02% 0 1998 Worldwide Emerging Markets Fund - NQ
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 135 138
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Van Eck Worldwide 10.581149 12.649846 19.55% 64 1999 Insurance Trust - 10.000000 10.581149 5.81% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 10.581149 12.649846 19.55% 459 1999 Insurance Trust - 10.000000 10.581149 5.81% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.740684 10.253920 -4.53% 108 1999 Investment Trust - 10.000000 10.740684 7.41% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.740684 10.253920 -4.53% 1,076 1999 Investment Trust - 10.000000 10.740684 7.41% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.739606 20.579437 61.54% 352 1999 Global Post-Venture 10.000000 12.739606 27.40% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.739606 20.579437 61.54% 0 1999 Global Post-Venture 10.000000 12.739606 27.40% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 10.801619 16.374564 51.59% 1,027 1999 International Equity 10.000000 10.801619 8.02% 0 1998 Portfolio - Q Warburg Pincus Trust - 10.801619 16.374564 51.59% 46 1999 International Equity 10.000000 10.801619 8.02% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 136 139
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Warburg Pincus Trust - 11.688738 12.269490 4.97% 918 1999 Value Portfolio - Q(1) 10.000000 11.688738 16.89% 0 1998 Warburg Pincus Trust - 11.688738 12.269490 4.97% 672 1999 Value Portfolio - NQ(1) 10.000000 11.688738 16.89% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 137 140 OPTIONAL BENEFITS ELECTED (TOTAL 1.25%) (VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD American Century 12.429254 14.485724 16.55% 3,784 1999 Variable Portfolios, 10.000000 12.429254 24.29% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.429254 14.485724 16.55% 5,709 1999 Variable Portfolios, 10.000000 12.429254 24.29% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 10.902825 17.662250 62.00% 4,237 1999 Variable Portfolios, 10.000000 10.902825 9.03% 0 1998 Inc. - American Century VP International - Q American Century 10.902825 17.662250 62.00% 1,114 1999 Variable Portfolios, 10.000000 10.902825 9.03% 0 1998 Inc. - American Century VP International - NQ American Century 11.495807 11.255628 -2.09% 393 1999 Variable Portfolios, 10.000000 11.495807 14.96% 0 1998 Inc. - American Century VP Value - Q American Century 11.495807 11.255628 -2.09% 1,166 1999 Variable Portfolios, 10.000000 11.495807 14.96% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.888550 28.89% 85 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.888550 28.89% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.756741 16.386683 28.46% 7,517 1999 Responsible Growth 10.000000 12.756741 27.57% 0 1998 Fund, Inc. - Q
138 141
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD The Dreyfus Socially 12.756741 16.386683 28.46% 2,666 1999 Responsible Growth 10.000000 12.756741 27.57% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.365124 14.726559 19.10% 39,966 1999 Fund, Inc. - Q 10.000000 12.365124 23.65% 0 1998 Dreyfus Stock Index 12.365124 14.726559 19.10% 23,767 1999 Fund, Inc. - NQ 10.000000 12.365124 23.65% 0 1998 Dreyfus Variable 12.205549 13.433832 10.06% 4,732 1999 Investment Fund - 10.000000 12.205549 22.06% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.205549 13.433832 10.06% 863 1999 Investment Fund - 10.000000 12.205549 22.06% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.787093 -2.13% 354 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.787093 -2.13% 94 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.848469 12.432231 4.93% 11,049 1999 Equity-Income 10.000000 11.848469 18.48% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.848469 12.432231 4.93% 6,075 1999 Equity-Income 10.000000 11.848469 18.48% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 139 142
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Fidelity VIP Growth 13.012933 17.641868 35.57% 23,336 1999 Portfolio: Service 10.000000 13.012933 30.13% 0 1998 Class - Q Fidelity VIP Growth 13.012933 17.641868 35.57% 14,779 1999 Portfolio: Service 10.000000 13.012933 30.13% 0 1998 Class - NQ Fidelity VIP High 10.382374 11.080460 6.72% 2,229 1999 Income Portfolio: 10.000000 10.382374 3.82% 0 1998 Service Class - Q Fidelity VIP High 10.382374 11.080460 6.72% 925 1999 Income Portfolio: 10.000000 10.382374 3.82% 0 1998 Service Class - NQ Fidelity VIP Overseas 11.294949 15.890221 40.68% 1,115 1999 Portfolio: Service 10.000000 11.294949 12.95% 0 1998 Class - Q Fidelity VIP Overseas 11.294949 15.890221 40.68% 466 1999 Portfolio: Service 10.000000 11.294949 12.95% 0 1998 Class - NQ Fidelity VIP II 12.600399 15.447579 22.60% 15,619 1999 Contrafund(R) Portfolio: 10.000000 12.600399 26.00% 0 1998 Service Class - Q Fidelity VIP II 12.600399 15.447579 22.60% 5,804 1999 Contrafund(R) Portfolio: 10.000000 12.600399 26.00% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.419643 12.777351 2.88% 2,873 1999 Opportunities 10.000000 12.419643 24.20% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.419643 12.777351 2.88% 2,752 1999 Opportunities 10.000000 12.419643 24.20% 0 1998 Portfolio: Service Class - NQ
140 143
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Capital 12.390885 12.759401 2.97% 21,882 1999 Appreciation Fund - Q 10.000000 12.390885 23.91% 0 1998 NSAT Capital 12.390885 12.759401 2.97% 10,410 1999 Appreciation Fund - NQ 10.000000 12.390885 23.91% 0 1998 NSAT Government Bond 10.172348 9.809384 -3.57% 4,591 1999 Fund - Q 10.000000 10.172348 1.72% 0 1998 NSAT Government Bond 10.172348 9.809384 -3.57% 2,718 1999 Fund - NQ 10.000000 10.172348 1.72% 0 1998 NSAT Money Market Fund 10.124383 10.482530 3.54% 32,190 1999 - - Q* 10.000000 10.124383 1.24% 0 1998 NSAT Money Market Fund 10.124383 10.482530 3.54% 4,755 1999 - - NQ* 10.000000 10.124383 1.24% 0 1998 NSAT Total Return Fund 11.966903 12.637807 5.61% 21,515 1999 - - Q 10.000000 11.966903 19.67% 0 1998 NSAT Total Return Fund 11.966903 12.637807 5.61% 8,711 1999 - - NQ 10.000000 11.966903 19.67% 0 1998 NSAT Nationwide 10.770735 10.728485 -0.39% 659 1999 Balanced Fund - Q 10.000000 10.770735 7.71% 0 1998 NSAT Nationwide 10.770735 10.728485 -0.39% 1,494 1999 Balanced Fund - NQ 10.000000 10.770735 7.71% 0 1998
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.13%. 141 144
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Equity 11.925844 13.954430 17.01% 118 1999 Income Fund - Q 10.000000 11.925844 19.26% 0 1998 NSAT Nationwide Equity 11.925844 13.954430 17.01% 593 1999 Income Fund - NQ 10.000000 11.925844 19.26% 0 1998 NSAT Nationwide Global 11.745400 14.257588 21.39% 534 1999 50 Fund - Q(1) 10.000000 11.745400 17.45% 0 1998 NSAT Nationwide Global 11.745400 14.257588 21.39% 234 1999 50 Fund - NQ(1) 10.000000 11.745400 17.45% 0 1998 NSAT Nationwide High 10.556787 10.757403 1.90% 0 1999 Income Bond Fund - Q 10.000000 10.556787 5.57% 0 1998 NSAT Nationwide High 10.556787 10.757403 1.90% 889 1999 Income Bond Fund - NQ 10.000000 10.556787 5.57% 0 1998 NSAT Nationwide Mid Cap 12.255745 14.634711 19.41% 80 1999 Index Fund-Q(2) 10.000000 12.255745 22.56% 0 1998 NSAT Nationwide Mid Cap 12.255745 14.634711 19.41% 641 1999 Index Fund- NQ(2) 10.000000 12.255745 22.56% 0 1998 NSAT Nationwide Multi 10.473496 10.503468 0.29% 182 1999 Sector Bond Fund - Q 10.000000 10.473496 4.73% 0 1998 NSAT Nationwide Multi 10.473496 10.503468 0.29% 768 1999 Sector Bond Fund - NQ 10.000000 10.473496 4.73% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 142 145
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Small 10.000000 20.331712 103.32% 681 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.331712 103.32% 48 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.584102 15.886176 26.24% 610 1999 Cap Value Fund - Q 10.000000 12.584102 25.84% 0 1998 NSAT Nationwide Small 12.584102 15.886176 26.24% 136 1999 Cap Value Fund - NQ 10.000000 12.584102 25.84% 0 1998 NSAT Nationwide Small 12.014774 17.087592 42.22% 3,094 1999 Company Fund - Q 10.000000 12.014774 20.15% 0 1998 NSAT Nationwide Small 12.014774 17.087592 42.22% 594 1999 Company Fund - NQ 10.000000 12.014774 20.15% 0 1998 NSAT Nationwide 12.461498 22.735718 82.45% 2,266 1999 Strategic Growth Fund - 10.000000 12.461498 24.61% 0 1998 Q NSAT Nationwide 12.461498 22.735718 82.45% 801 1999 Strategic Growth Fund - 10.000000 12.461498 24.61% 0 1998 NQ NSAT Nationwide 12.475236 11.941061 -4.28% 0 1999 Strategic Value Fund - Q 10.000000 12.475236 24.75% 0 1998 1997 NSAT Nationwide 12.475236 11.941061 -4.28% 342 1999 Strategic Value Fund - 10.000000 12.475236 24.75% 0 1998 NQ
(1) Formerly NSAT Nationwide Select Advisers Small Cap Growth Fund. 143 146
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Neuberger Berman AMT 12.305897 13.966839 13.50% 1,594 1999 Guardian Portfolio - Q 10.000000 12.305897 23.06% 0 1998 Neuberger Berman AMT 12.305897 13.966839 13.50% 435 1999 Guardian Portfolio - NQ 10.000000 12.305897 23.06% 0 1998 Neuberger Berman AMT 13.700471 20.820318 51.97% 1,848 1999 Mid-Cap Growth 10.000000 13.700471 37.00% 0 1998 Portfolio - Q Neuberger Berman AMT 13.700471 20.820318 51.97% 552 1999 Mid-Cap Growth 10.000000 13.700471 37.00% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.819096 12.531553 6.03% 2,103 1999 Partners Portfolio - Q 10.000000 11.819096 18.19% 0 1998 Neuberger Berman AMT 11.819096 12.531553 6.03% 784 1999 Partners Portfolio - NQ 10.000000 11.819096 18.19% 0 1998 Oppenheimer Variable 12.959156 23.496887 81.31% 3,914 1999 Account Funds - 10.000000 12.959156 29.59% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 12.959156 23.496887 81.31% 1,153 1999 Account Funds - 10.000000 12.959156 29.59% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1) Oppenheimer Variable 12.750719 17.836627 39.89% 5,010 1999 Account Funds - 10.000000 12.750719 27.51% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(2)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. 144 147
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Oppenheimer Variable 12.750719 17.836627 39.89% 1,959 1999 Account Funds - 10.000000 12.750719 27.51% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.147153 14.599387 20.19% 4,444 1999 Account Funds - 10.000000 12.147153 21.47% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.147153 14.599387 20.19% 2,709 1999 Account Funds - 10.000000 12.147153 21.47% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.398245 14.562396 27.76% 55 1999 Institutional Funds, 10.000000 11.398245 13.98% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.398245 14.562396 27.76% 3 1999 Institutional Funds, 10.000000 11.398245 13.98% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.099788 23.931619 97.79% 1,245 1999 Insurance Trust - 10.000000 12.099788 21.00% 0 1998 Worldwide Emerging Markets Fund - Q Van Eck Worldwide 12.099788 23.931619 97.79% 345 1999 Insurance Trust - 10.000000 12.099788 21.00% 0 1998 Worldwide Emerging Markets Fund - NQ
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 145 148
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Van Eck Worldwide 10.579367 12.641312 19.49% 57 1999 Insurance Trust - 10.000000 10.579367 5.79% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 10.579367 12.641312 19.49% 35 1999 Insurance Trust - 10.000000 10.579367 5.79% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.738882 10.247016 -4.58% 129 1999 Investment Trust - 10.000000 10.738882 7.39% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.738882 10.247016 -4.58% 42 1999 Investment Trust - 10.000000 10.738882 7.39% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.737475 20.565582 61.46% 521 1999 Global Post-Venture 10.000000 12.737475 27.37% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.737475 20.565582 61.46% 175 1999 Global Post-Venture 10.000000 12.737475 27.37% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 10.799816 16.363554 51.52% 1,235 1999 International Equity 10.000000 10.799816 8.00% 0 1998 Portfolio - Q Warburg Pincus Trust - 10.799816 16.363554 51.52% 0 1999 International Equity 10.000000 10.799816 8.00% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 146 149
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Warburg Pincus Trust - 11.686779 12.261224 4.92% 360 1999 Value Portfolio - Q(1) 10.000000 11.686779 16.87% 0 1998 Warburg Pincus Trust - 11.686779 12.261224 4.92% 0 1999 Value Portfolio - NQ(1) 10.000000 11.686779 16.87% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 147 150 OPTIONAL BENEFITS ELECTED (TOTAL 1.30%) (VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD American Century 12.427175 14.475981 16.49% 14 1999 Variable Portfolios, 10.000000 12.427175 24.27% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.427175 14.475981 16.49% 154 1999 Variable Portfolios, 10.000000 12.427175 24.27% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 10.901004 17.650383 61.92% 1,265 1999 Variable Portfolios, 10.000000 10.901004 9.01% 0 1998 Inc. - American Century VP International - Q American Century 10.901004 17.650383 61.92% 569 1999 Variable Portfolios, 10.000000 10.901004 9.01% 0 1998 Inc. - American Century VP International - NQ American Century 11.493876 11.248045 -2.14% 2 1999 Variable Portfolios, 10.000000 11.493876 14.94% 0 1998 Inc. - American Century VP Value - Q American Century 11.493876 11.248045 -2.14% 74 1999 Variable Portfolios, 10.000000 11.493876 14.94% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.886864 28.87% 67 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.886864 28.87% 159 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.754610 16.375662 28.39% 835 1999 Responsible Growth 10.000000 12.754610 27.55% 0 1998 Fund, Inc. - Q
148 151
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD The Dreyfus Socially 12.754610 16.375662 28.39% 274 1999 Responsible Growth 10.000000 12.754610 27.55% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.363055 14.716647 19.04% 6,801 1999 Fund, Inc. - Q 10.000000 12.363055 23.63% 0 1998 Dreyfus Stock Index 12.363055 14.716647 19.04% 1,924 1999 Fund, Inc. - NQ 10.000000 12.363055 23.63% 0 1998 Dreyfus Variable 12.203505 13.424790 10.01% 1,610 1999 Investment Fund - 10.000000 12.203505 22.04% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.203505 13.424790 10.01% 0 1999 Investment Fund - 10.000000 12.203505 22.04% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.783812 -2.16% 141 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.783812 -2.16% 12 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.846486 12.423854 4.87% 181 1999 Equity-Income 10.000000 11.846486 18.46% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.846486 12.423854 4.87% 1,226 1999 Equity-Income 10.000000 11.846486 18.46% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 149 152
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Fidelity VIP Growth 13.010755 17.630000 35.50% 6,094 1999 Portfolio: Service 10.000000 13.010755 30.11% 0 1998 Class - Q Fidelity VIP Growth 13.010755 17.630000 35.50% 846 1999 Portfolio: Service 10.000000 13.010755 30.11% 0 1998 Class - NQ Fidelity VIP High 10.380632 11.072984 6.67% 0 1999 Income Portfolio: 10.000000 10.380632 3.81% 0 1998 Service Class - Q Fidelity VIP High 10.380632 11.072984 6.67% 654 1999 Income Portfolio: 10.000000 10.380632 3.81% 0 1998 Service Class - NQ Fidelity VIP Overseas 11.293057 15.879549 40.61% 191 1999 Portfolio: Service 10.000000 11.293057 12.93% 0 1998 Class - Q Fidelity VIP Overseas 11.293057 15.879549 40.61% 84 1999 Portfolio: Service 10.000000 11.293057 12.93% 0 1998 Class - NQ Fidelity VIP II 12.598299 15.437189 22.53% 2,450 1999 Contrafund(R) Portfolio: 10.000000 12.598299 25.98% 0 1998 Service Class - Q Fidelity VIP II 12.598299 15.437189 22.53% 489 1999 Contrafund(R) Portfolio: 10.000000 12.598299 25.98% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.417568 12.768758 2.83% 547 1999 Opportunities 10.000000 12.417568 24.18% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.417568 12.768758 2.83% 143 1999 Opportunities 10.000000 12.417568 24.18% 0 1998 Portfolio: Service Class - NQ
150 153
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Capital 12.388810 12.750810 2.92% 2,082 1999 Appreciation Fund - Q 10.000000 12.388810 23.89% 0 1998 NSAT Capital 12.388810 12.750810 2.92% 542 1999 Appreciation Fund - NQ 10.000000 12.388810 23.89% 0 1998 NSAT Government Bond 10.170644 9.802780 -3.62% 3,686 1999 Fund - Q 10.000000 10.170644 1.71% 0 1998 NSAT Government Bond 10.170644 9.802780 -3.62% 419 1999 Fund - NQ 10.000000 10.170644 1.71% 0 1998 NSAT Money Market Fund 10.122671 10.475448 3.49% 11 1999 - - Q* 10.000000 10.122671 1.23% 0 1998 NSAT Money Market Fund 10.122671 10.475448 3.49% 24 1999 - - NQ* 10.000000 10.122671 1.23% 0 1998 NSAT Total Return Fund 11.964909 12.629301 5.55% 2,856 1999 - - Q 10.000000 11.964909 19.65% 0 1998 NSAT Total Return Fund 11.964909 12.629301 5.55% 1,227 1999 - - NQ 10.000000 11.964909 19.65% 0 1998 NSAT Nationwide 10.768931 10.721257 -0.44% 16 1999 Balanced Fund - Q 10.000000 10.768931 7.69% 0 1998 NSAT Nationwide 10.768931 10.721257 -0.44% 0 1999 Balanced Fund - NQ 10.000000 10.768931 7.69% 0 1998
* The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.07%. 151 154
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Equity 11.923848 13.945030 16.95% 0 1999 Income Fund - Q 10.000000 11.923848 19.24% 0 1998 NSAT Nationwide Equity 11.923848 13.945030 16.95% 0 1999 Income Fund - NQ 10.000000 11.923848 19.24% 0 1998 NSAT Nationwide Global 10.743428 14.247974 21.33% 0 1999 50 Fund - Q(1) 10.000000 10.743428 17.43% 0 1998 NSAT Nationwide Global 11.743428 14.247974 21.33% 36 1999 50 Fund - NQ(1) 10.000000 11.743428 17.43% 0 1998 NSAT Nationwide High 11.7433428 14.247974 1.85% 179 1999 Income Bond Fund - Q 10.000000 11.743428 5.55% 0 1998 NSAT Nationwide High 10.555014 10.750149 1.85% 0 1999 Income Bond Fund - NQ 10.000000 10.555014 5.55% 0 1998 NSAT Nationwide Mid Cap 12.253691 14.624858 19.35% 154 1999 Index Fund-Q(2) 10.000000 12.253691 22.54% 0 1998 NSAT Nationwide Mid Cap 12.253691 14.624858 19.35% 18 1999 Index Fund- NQ(2) 10.000000 12.253691 22.54% 0 1998 NSAT Nationwide Multi 10.471735 10.496386 0.24% 8 1999 Sector Bond Fund - Q 10.000000 10.471735 4.72% 0 1998 NSAT Nationwide Multi 10.471735 10.496386 0.24% 0 1999 Sector Bond Fund - NQ 10.000000 10.471735 4.72% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 152 155
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD NSAT Nationwide Small 10.000000 20.324927 103.25% 105 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.324927 103.25% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.581999 15.875478 26.18% 26 1999 Cap Value Fund - Q 10.000000 12.581999 25.82% 0 1998 NSAT Nationwide Small 12.581999 15.875478 26.18% 33 1999 Cap Value Fund - NQ 10.000000 12.581999 25.82% 0 1998 NSAT Nationwide Small 12.012761 17.076087 42.15% 773 1999 Company Fund - Q 10.000000 12.012761 20.13% 0 1998 NSAT Nationwide Small 12.012761 17.076087 42.15% 0 1999 Company Fund - NQ 10.000000 12.012761 20.13% 0 1998 NSAT Nationwide 12.459415 22.720430 82.36% 1,225 1999 Strategic Growth Fund - 10.000000 12.459415 24.59% 0 1998 Q NSAT Nationwide 12.459415 22.720430 82.36% 104 1999 Strategic Growth Fund - 10.000000 12.459415 24.59% 0 1998 NQ NSAT Nationwide 12.473162 11.933031 -4.33% 15 1999 Strategic Value Fund - Q 10.000000 12.473162 24.73% 0 1998 1997 NSAT Nationwide 12.473162 11.933031 -4.33% 0 1999 Strategic Value Fund - 10.000000 12.473162 24.73% 0 1998 NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 153 156
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Neuberger Berman AMT 12.303831 13.957433 13.44% 94 1999 Guardian Portfolio - Q 10.000000 12.303831 23.04% 0 1998 Neuberger Berman AMT 12.303831 13.957433 13.44% 0 1999 Guardian Portfolio - NQ 10.000000 12.303831 23.04% 0 1998 Neuberger Berman AMT 13.698179 20.806301 51.89% 144 1999 Mid-Cap Growth 10.000000 13.698179 36.98% 0 1998 Portfolio - Q Neuberger Berman AMT 13.698179 20.806301 51.89% 62 1999 Mid-Cap Growth 10.000000 13.698179 36.98% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.817120 12.523110 5.97% 528 1999 Partners Portfolio - Q 10.000000 11.817120 18.17% 0 1998 Neuberger Berman AMT 11.817120 12.523110 5.97% 0 1999 Partners Portfolio - NQ 10.000000 11.817120 18.17% 0 1998 Oppenheimer Variable 12.956986 23.481073 81.22% 1,664 1999 Account Funds - 10.000000 12.956986 29.57% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 12.956986 23.481073 81.22% 147 1999 Account Funds - 10.000000 12.956986 29.57% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 154 157
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Oppenheimer Variable 12.748581 17.824624 39.82% 1,770 1999 Account Funds - 10.000000 12.748581 27.49% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 12.748581 17.824624 39.82% 87 1999 Account Funds - 10.000000 12.748581 27.49% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.145122 14.589572 20.13% 2,097 1999 Account Funds - 10.000000 12.145122 21.45% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.145122 14.589572 20.13% 488 1999 Account Funds - 10.000000 12.145122 21.45% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.396332 14.552579 27.70% 0 1999 Institutional Funds, 10.000000 11.393332 13.96% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.396332 14.552579 27.70% 0 1999 Institutional Funds, 10.000000 11.393332 13.96% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.097773 23.915562 97.69% 445 1999 Insurance Trust - 10.000000 12.097773 20.98% 0 1998 Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 155 158
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Van Eck Worldwide 12.097773 23.915562 97.69% 227 1999 Insurance Trust - 10.000000 12.097773 20.98% 0 1998 Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 10.577601 12.632809 19.43% 542 1999 Insurance Trust - 10.000000 10.577601 5.78% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 10.577601 12.632809 19.43% 0 1999 Insurance Trust - 10.000000 10.577601 5.78% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.737077 10.240102 -4.63% 0 1999 Investment Trust - 10.000000 10.737077 7.37% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.737077 10.240102 -4.63% 128 1999 Investment Trust - 10.000000 10.737077 7.37% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.735345 20.551766 61.38% 0 1999 Global Post-Venture 10.000000 12.735345 27.35% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.735345 20.551766 61.38% 0 1999 Global Post-Venture 10.000000 12.735345 27.35% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 10.798003 16.352558 51.44% 50 1999 International Equity 10.000000 10.798003 7.98% 0 1998 Portfolio - Q Warburg Pincus Trust - 10.798003 16.352558 51.44% 0 1999 International Equity 10.000000 10.798003 7.98% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 156 159
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD Warburg Pincus Trust - 11.684826 12.252980 4.86% 0 1999 Value Portfolio - Q(1) 10.000000 11.684826 16.85% 0 1998 Warburg Pincus Trust - 11.684826 12.252980 4.86% 10 1999 Value Portfolio - NQ(1) 10.000000 11.684826 16.85% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 157 160 OPTIONAL BENEFITS ELECTED (TOTAL 1.35%) (VARIABLE ACCOUNT CHARGES OF 1.35% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 12.507622 14.562313 16.43% 466 1999 Variable Portfolios, 10.000000 12.507622 25.08% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.507622 14.562313 16.43% 888 1999 Variable Portfolios, 10.000000 12.507622 25.08% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 12.054452 19.508116 61.81% 15 1999 Variable Portfolios, 10.000000 12.054452 20.54% 0 1998 Inc. - American Century VP International - Q American Century 12.054452 19.508116 61.81% 0 1999 Variable Portfolios, 10.000000 12.054452 20.54% 0 1998 Inc. - American Century VP International - NQ American Century 11.272705 11.026014 -2.19% 19 1999 Variable Portfolios, 10.000000 11.272705 12.73% 0 1998 Inc. - American Century VP Value - Q American Century 11.272705 11.026014 -2.19% 0 1999 Variable Portfolios, 10.000000 11.272705 12.73% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.885161 28.85% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.885161 28.85% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.776857 16.395915 28.33% 165 1999 Responsible Growth 10.000000 12.776857 27.77% 0 1998 Fund, Inc. - Q
158 161
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 12.776857 16.395915 28.33% 89 1999 Responsible Growth 10.000000 12.776857 27.77% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.456413 14.820270 18.98% 611 1999 Fund, Inc. - Q 10.000000 12.456413 24.56% 0 1998 Dreyfus Stock Index 12.456413 14.820270 18.98% 1,611 1999 Fund, Inc. - NQ 10.000000 12.456413 24.56% 0 1998 Dreyfus Variable 12.382184 13.614453 9.95% 0 1999 Investment Fund - 10.000000 12.382184 23.82% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.382184 13.614453 9.95% 0 1999 Investment Fund - 10.000000 12.382184 23.82% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.780523 -2.19% 26 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.780523 -2.19% 0 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.802357 12.371310 4.82% 287 1999 Equity-Income 10.000000 11.802357 18.02% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.802357 12.371310 4.82% 52 1999 Equity-Income 10.000000 11.802357 18.02% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 159 162
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 12.906358 17.479679 35.43% 781 1999 Portfolio: Service 10.000000 12.906358 29.06% 0 1998 Class - Q Fidelity VIP Growth 12.906358 17.479679 35.43% 1,054 1999 Portfolio: Service 10.000000 12.906358 29.06% 0 1998 Class - NQ Fidelity VIP High 10.523939 11.220168 6.62% 43 1999 Income Portfolio: 10.000000 10.523939 5.24% 0 1998 Service Class - Q Fidelity VIP High 10.523939 11.220168 6.62% 0 1999 Income Portfolio: 10.000000 10.523939 5.24% 0 1998 Service Class - NQ Fidelity VIP Overseas 12.179658 17.117558 40.54% 8 1999 Portfolio: Service 10.000000 12.179658 21.80% 0 1998 Class - Q Fidelity VIP Overseas 12.179658 17.117558 40.54% 180 1999 Portfolio: Service 10.000000 12.179658 21.80% 0 1998 Class - NQ Fidelity VIP II 12.789109 15.663065 22.47% 9 1999 Contrafund(R) Portfolio: 10.000000 12.789109 27.89% 0 1998 Service Class - Q Fidelity VIP II 12.789109 15.663065 22.47% 66 1999 Contrafund(R) Portfolio: 10.000000 12.789109 27.89% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.301762 12.643267 2.78% 0 1999 Opportunities 10.000000 12.301762 23.02% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.301762 12.643267 2.78% 104 1999 Opportunities 10.000000 12.301762 23.02% 0 1998 Portfolio: Service Class - NQ
160 163
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 12.431774 12.788549 2.87% 553 1999 Appreciation Fund - Q 10.000000 12.431774 24.32% 0 1998 NSAT Capital 12.431774 12.788549 2.87% 898 1999 Appreciation Fund - NQ 10.000000 12.431774 24.32% 0 1998 NSAT Government Bond 9.846859 9.485894 -3.67% 23 1999 Fund - Q 10.000000 9.846859 -1.535 0 1998 NSAT Government Bond 9.846859 9.485894 -3.67% 211 1999 Fund - NQ 10.000000 9.846859 -1.535 0 1998 NSAT Money Market Fund 10.089342 10.435669 3.43% 0 1999 - - Q* 10.000000 10.089342 0.89% 0 1998 NSAT Money Market Fund 10.089342 10.435669 3.43% 193 1999 - - NQ* 10.000000 10.089342 0.89% 0 1998 NSAT Total Return Fund 11.985762 12.644908 5.50% 47 1999 - - Q 10.000000 11.985762 19.86% 0 1998 NSAT Total Return Fund 11.985762 12.644908 5.50% 260 1999 - - NQ 10.000000 11.985762 19.86% 0 1998 NSAT Nationwide 10.670741 10.618109 -0.49% 201 1999 Balanced Fund - Q 10.000000 10.670741 6.71% 0 1998 NSAT Nationwide 10.670741 10.618109 -0.49% 0 1999 Balanced Fund - NQ 10.000000 10.670741 6.71% 0 1998
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 4.02%. 161 164
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 11.838823 13.838584 16.89% 0 1999 Income Fund - Q 10.000000 11.838823 18.39% 0 1998 NSAT Nationwide Equity 11.838823 13.838584 16.89% 0 1999 Income Fund - NQ 10.000000 11.838823 18.39% 0 1998 NSAT Nationwide Global 12.204564 14.799960 21.27% 102 1999 50 Fund - Q(1) 10.000000 12.204564 22.05% 0 1998 NSAT Nationwide Global 12.204564 14.799960 21.27% 0 1999 50 Fund - NQ(1) 10.000000 12.204564 22.05% 0 1998 NSAT Nationwide High 10.333294 10.519004 1.80% 0 1999 Income Bond Fund - Q 10.000000 10.333294 3.33% 0 1998 NSAT Nationwide High 10.333294 10.519004 1.80% 0 1999 Income Bond Fund - NQ 10.000000 10.333294 3.33% 0 1998 NSAT Nationwide Mid Cap 12.246138 14.608445 19.29% 0 1999 Index Fund-Q(2) 10.000000 12.246138 22.46% 0 1998 NSAT Nationwide Mid Cap 12.246138 14.608445 19.29% 0 1999 Index Fund- NQ(2) 10.000000 12.246138 22.46% 0 1998 NSAT Nationwide Multi 10.239367 10.258279 0.18% 25 1999 Sector Bond Fund - Q 10.000000 10.239367 2.39% 0 1998 NSAT Nationwide Multi 10.239367 10.258279 0.18% 0 1999 Sector Bond Fund - NQ 10.000000 10.239367 2.39% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 162 165
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.318124 103.18% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.318124 103.18% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.956203 16.339365 26.11% 86 1999 Cap Value Fund - Q 10.000000 12.956203 29.56% 0 1998 NSAT Nationwide Small 12.956203 16.339365 26.11% 0 1999 Cap Value Fund - NQ 10.000000 12.956203 29.56% 0 1998 NSAT Nationwide Small 12.115436 17.213333 42.08% 0 1999 Company Fund - Q 10.000000 12.115436 21.15% 0 1998 NSAT Nationwide Small 12.115436 17.213333 42.08% 0 1999 Company Fund - NQ 10.000000 12.115436 21.15% 0 1998 NSAT Nationwide 12.660760 23.075929 82.26% 0 1999 Strategic Growth Fund - 10.000000 12.660760 26.61% 0 1998 Q NSAT Nationwide 12.660760 23.075929 82.26% 0 1999 Strategic Growth Fund - 10.000000 12.660760 26.61% 0 1998 NQ NSAT Nationwide 13.020484 12.450334 -4.38% 0 1999 Strategic Value Fund - Q 10.000000 13.020484 30.20% 0 1998 1997 NSAT Nationwide 13.020484 12.450334 -4.38% 0 1999 Strategic Value Fund - 10.000000 13.020484 30.20% 0 1998 NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 163 166
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 12.878920 14.602403 13.38% 18 1999 Guardian Portfolio - Q 10.000000 12.878920 28.79% 0 1998 Neuberger Berman AMT 12.878920 14.602403 13.38% 0 1999 Guardian Portfolio - NQ 10.000000 12.878920 28.79% 0 1998 Neuberger Berman AMT 14.069118 21.358908 51.81% 103 1999 Mid-Cap Growth 10.000000 14.069118 40.69% 0 1998 Portfolio - Q Neuberger Berman AMT 14.069118 21.358908 51.81% 0 1999 Mid-Cap Growth 10.000000 14.069118 40.69% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.850559 12.552194 5.92% 0 1999 Partners Portfolio - Q 10.000000 11.850559 18.51% 0 1998 Neuberger Berman AMT 11.850559 12.552194 5.92% 0 1999 Partners Portfolio - NQ 10.000000 11.850559 18.51% 0 1998 Oppenheimer Variable 13.183516 23.879534 81.13% 70 1999 Account Funds - 10.000000 13.183516 31.84% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 13.183516 23.879534 81.13% 0 1999 Account Funds - 10.000000 13.183516 31.84% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 164 167
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 13.236669 18.497677 39.75% 0 1999 Account Funds - 10.000000 13.236669 32.37% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 13.236669 18.497677 39.75% 223 1999 Account Funds - 10.000000 13.236669 32.37% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.332876 14.807604 20.07% 298 1999 Account Funds - 10.000000 12.332876 23.33% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.332876 14.807604 20.07% 80 1999 Account Funds - 10.000000 12.332876 23.33% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.388309 14.534892 27.63% 0 1999 Institutional Funds, 10.000000 11.388309 13.88% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.388309 14.534892 27.63% 0 1999 Institutional Funds, 10.000000 11.388309 13.88% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.626347 24.947866 97.59% 11 1999 Insurance Trust - 10.000000 12.626347 26.26% 0 1998 Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 165 168
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 12.626347 24.947866 97.59% 0 1999 Insurance Trust - 10.000000 12.626347 26.26% 0 1998 Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 9.912267 11.832203 19.37% 0 1999 Insurance Trust - 10.000000 9.912267 -0.88% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 9.912267 11.832203 19.37% 0 1999 Insurance Trust - 10.000000 9.912267 -0.88% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.404764 9.918143 -4.68% 0 1999 Investment Trust - 10.000000 10.404764 4.05% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.404764 9.918143 -4.68% 0 1999 Investment Trust - 10.000000 10.404764 4.05% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.830950 20.695562 61.29% 0 1999 Global Post-Venture 10.000000 12.830950 28.31% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.830950 20.695562 61.29% 0 1999 Global Post-Venture 10.000000 12.830950 28.31% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 11.544672 17.474463 51.36% 0 1999 International Equity 10.000000 11.544672 15.45% 0 1998 Portfolio - Q Warburg Pincus Trust - 11.544672 17.474463 51.36% 0 1999 International Equity 10.000000 11.544672 15.45% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 166 169
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 11.888597 12.460330 4.81% 0 1999 Value Portfolio - Q(1) 10.000000 11.888597 18.89% 0 1998 Warburg Pincus Trust - 11.888597 12.460330 4.81% 0 1999 Value Portfolio - NQ(1) 10.000000 11.888597 18.89% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 167 170 OPTIONAL BENEFITS ELECTED (TOTAL 1.40%) (VARIABLE ACCOUNT CHARGES OF 1.40% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 12.506047 14.553111 16.37% 6,866 1999 Variable Portfolios, 10.000000 12.506407 25.06% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.506047 14.553111 16.37% 1,803 1999 Variable Portfolios, 10.000000 12.506407 25.06% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 12.052929 19.495801 61.75% 5,609 1999 Variable Portfolios, 10.000000 12.052929 20.53% 0 1998 Inc. - American Century VP International - Q American Century 12.052929 19.495801 61.75% 2,055 1999 Variable Portfolios, 10.000000 12.052929 20.53% 0 1998 Inc. - American Century VP International - NQ American Century 11.271284 11.019041 -2.24% 5,362 1999 Variable Portfolios, 10.000000 11.271284 12.71% 0 1998 Inc. - American Century VP Value - Q American Century 11.271284 11.019041 -2.24% 2,563 1999 Variable Portfolios, 10.000000 11.271284 12.71% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.883469 28.83% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.883469 28.83% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.775247 16.385550 28.26% 2,826 1999 Responsible Growth 10.000000 12.775247 27.75% 0 1998 Fund, Inc. - Q
168 171
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 12.775247 16.385550 28.26% 4,225 1999 Responsible Growth 10.000000 12.775247 27.75% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.454838 14.810885 18.92% 58,351 1999 Fund, Inc. - Q 10.000000 12.454838 24.55% 0 1998 Dreyfus Stock Index 12.454838 14.810885 18.92% 14,182 1999 Fund, Inc. - NQ 10.000000 12.454838 24.55% 0 1998 Dreyfus Variable 12.380620 13.605834 9.90% 19,504 1999 Investment Fund - 10.000000 12.380620 23.81% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.380620 13.605834 9.90% 3,244 1999 Investment Fund - 10.000000 12.380620 23.81% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.777237 -2.23% 8 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.777237 -2.23% 174 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.800868 12.363474 4.77% 12,275 1999 Equity-Income 10.000000 11.800868 18.01% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.800868 12.363474 4.77% 7,210 1999 Equity-Income 10.000000 11.800868 18.01% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 169 172
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 12.904732 17.468631 35.37% 33,812 1999 Portfolio: Service 10.000000 12.904732 29.05% 0 1998 Class - Q Fidelity VIP Growth 12.904732 17.468631 35.37% 11,807 1999 Portfolio: Service 10.000000 12.904732 29.05% 0 1998 Class - NQ Fidelity VIP High 10.522617 11.213084 6.56% 1,729 1999 Income Portfolio: 10.000000 10.522617 5.23% 0 1998 Service Class - Q Fidelity VIP High 10.522617 11.213084 6.56% 5,530 1999 Income Portfolio: 10.000000 10.522617 5.23% 0 1998 Service Class - NQ Fidelity VIP Overseas 12.178128 17.106743 40.47% 730 1999 Portfolio: Service 10.000000 12.178128 21.78% 0 1998 Class - Q Fidelity VIP Overseas 12.178128 17.106743 40.47% 1,826 1999 Portfolio: Service 10.000000 12.178128 21.78% 0 1998 Class - NQ Fidelity VIP II 12.787496 15.653161 22.41% 13,606 1999 Contrafund(R) Portfolio: 10.000000 12.787496 27.87% 0 1998 Service Class - Q Fidelity VIP II 12.787496 15.653161 22.41% 5,351 1999 Contrafund(R) Portfolio: 10.000000 12.787496 27.87% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.300214 12.635267 2.72% 8,255 1999 Opportunities 10.000000 12.300214 23.00% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.300214 12.635267 2.72% 2,412 1999 Opportunities 10.000000 12.300214 23.00% 0 1998 Portfolio: Service Class - NQ
170 173
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 12.430206 12.780450 2.82% 31,154 1999 Appreciation Fund - Q 10.000000 12.430206 24.30% 0 1998 NSAT Capital 12.430206 12.780450 2.82% 15,231 1999 Appreciation Fund - NQ 10.000000 12.430206 24.30% 0 1998 NSAT Government Bond 9.845615 9.479885 -3.71% 5,302 1999 Fund - Q 10.000000 9.845615 -1.54% 0 1998 NSAT Government Bond 9.845615 9.479885 -3.71% 2,731 1999 Fund - NQ 10.000000 9.845615 -1.54% 0 1998 NSAT Money Market Fund 10.088053 10.429048 3.38% 4,116 1999 - - Q* 10.000000 10.088053 0.88% 0 1998 NSAT Money Market Fund 10.088053 10.429048 3.38% 1,374 1999 - - NQ* 10.000000 10.088053 0.88% 0 1998 NSAT Total Return Fund 11.984248 12.636905 5.45% 53,484 1999 - - Q 10.000000 11.984248 19.84% 0 1998 NSAT Total Return Fund 11.984248 12.636905 5.45% 17,353 1999 - - NQ 10.000000 11.984248 19.84% 0 1998 NSAT Nationwide 10.669391 10.611396 -0.54% 2,229 1999 Balanced Fund - Q 10.000000 10.669391 6.69% 0 1998 NSAT Nationwide 10.669391 10.611396 -0.54% 317 1999 Balanced Fund - NQ 10.000000 10.669391 6.69% 0 1998
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.97%. 171 174
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 11.837331 13.829829 16.83% 654 1999 Income Fund - Q 10.000000 11.837331 18.37% 0 1998 NSAT Nationwide Equity 11.837331 13.829829 16.83% 1,566 1999 Income Fund - NQ 10.000000 11.837331 18.37% 0 1998 NSAT Nationwide Global 12.203027 14.790595 21.20% 0 1999 50 Fund - Q(1) 10.000000 12.203027 22.03% 0 1998 NSAT Nationwide Global 12.203027 14.790595 21.20% 1,502 1999 50 Fund - NQ(1) 10.000000 12.203027 22.03% 0 1998 NSAT Nationwide High 10.331990 10.512337 1.75% 2,780 1999 Income Bond Fund - Q 10.000000 10.331990 3.32% 0 1998 NSAT Nationwide High 10.331990 10.512337 1.75% 84 1999 Income Bond Fund - NQ 10.000000 10.331990 3.32% 0 1998 NSAT Nationwide Mid Cap 12.244601 14.599208 19.23% 871 1999 Index Fund-Q(2) 10.00000 12.244601 22.45% 0 1998 NSAT Nationwide Mid Cap 12.244601 14.599208 19.23% 0 1999 Index Fund- NQ(2) 10.00000 12.244601 22.45% 0 1998 NSAT Nationwide Multi 10.238069 10.251777 0.13% 935 1999 Sector Bond Fund - Q 10.000000 10.238069 2.38% 0 1998 NSAT Nationwide Multi 10.238069 10.251777 0.13% 68 1999 Sector Bond Fund - NQ 10.000000 10.238069 2.38% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 172 175
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.311328 103.11% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.311328 103.11% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.954576 16.329040 26.05% 1,066 1999 Cap Value Fund - Q 10.000000 12.954576 29.55% 0 1998 NSAT Nationwide Small 12.954576 16.329040 26.05% 1,813 1999 Cap Value Fund - NQ 10.000000 12.954576 29.55% 0 1998 NSAT Nationwide Small 12.113907 17.202461 42.01% 1,566 1999 Company Fund - Q 10.000000 12.113907 21.14% 0 1998 NSAT Nationwide Small 12.113907 17.202461 42.01% 0 1999 Company Fund - NQ 10.000000 12.113907 21.14% 0 1998 NSAT Nationwide 12.659167 23.061361 82.17% 2,853 1999 Strategic Growth Fund - 10.000000 12.659167 26.59% 0 1998 Q NSAT Nationwide 12.659167 23.061361 82.17% 540 1999 Strategic Growth Fund - 10.000000 12.659167 26.59% 0 1998 NQ NSAT Nationwide 13.018839 12.442449 -4.43% 2,417 1999 Strategic Value Fund - Q 10.000000 13.018839 30.19% 0 1998 1997 NSAT Nationwide 13.018839 12.442449 -4.43% 981 1999 Strategic Value Fund - 10.000000 13.018839 30.19% 0 1998 NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 173 176
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 12.877297 14.593171 13.32% 1,157 1999 Guardian Portfolio - Q 10.000000 12.877297 28.77% 0 1998 Neuberger Berman AMT 12.877297 14.593171 13.32% 0 1999 Guardian Portfolio - NQ 10.000000 12.877297 28.77% 0 1998 Neuberger Berman AMT 14.067351 21.345408 51.74% 4,508 1999 Mid-Cap Growth 10.000000 14.067351 40.67% 0 1998 Portfolio - Q Neuberger Berman AMT 14.067351 21.345408 51.74% 1,022 1999 Mid-Cap Growth 10.000000 14.067351 40.67% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.849067 12.544255 5.87% 4,022 1999 Partners Portfolio - Q 10.000000 11.849067 18.49% 0 1998 Neuberger Berman AMT 11.849067 12.544255 5.87% 752 1999 Partners Portfolio - NQ 10.000000 11.849067 18.49% 0 1998 Oppenheimer Variable 13.181851 23.864429 81.04% 2,246 1999 Account Funds - 10.000000 13.181851 31.82% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 13.181851 23.864429 81.04% 2,302 1999 Account Funds - 10.000000 13.181851 31.82% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 174 177
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 13.235004 18.485985 39.67% 11,468 1999 Account Funds - 10.000000 13.235004 32.35% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 13.235004 18.485985 39.67% 6,224 1999 Account Funds - 10.000000 13.235004 32.35% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.331317 14.798240 20.01% 16,965 1999 Account Funds - 10.000000 12.331317 23.31% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.331317 14.798240 20.01% 5,156 1999 Account Funds - 10.000000 12.331317 23.31% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.386873 14.525802 27.57% 0 1999 Institutional Funds, 10.000000 11.386873 13.87% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.386873 14.525802 27.57% 0 1999 Institutional Funds, 10.000000 11.386873 13.87% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.624752 24.932117 97.49% 1,166 1999 Insurance Trust - 10.000000 12.624752 26.25% 0 1998 Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 175 178
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 12.624752 24.932117 97.49% 592 1999 Insurance Trust - 10.000000 12.624752 26.25% 0 1998 Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 9.911011 11.824722 19.31% 2,497 1999 Insurance Trust - 10.000000 9.911011 -0.89% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 9.911011 11.824722 19.31% 221 1999 Insurance Trust - 10.000000 9.911011 -0.89% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.403446 9.911855 -4.73% 250 1999 Investment Trust - 10.000000 10.403446 4.03% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.403446 9.911855 -4.73% 889 1999 Investment Trust - 10.000000 10.403446 4.03% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.829333 20.682481 61.21% 980 1999 Global Post-Venture 10.000000 12.829333 28.29% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.829333 20.682481 61.21% 179 1999 Global Post-Venture 10.000000 12.829333 28.29% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 11.543216 17.463426 51.29% 451 1999 International Equity 10.000000 11.543216 15.43% 0 1998 Portfolio - Q Warburg Pincus Trust - 11.543216 17.463426 51.29% 202 1999 International Equity 10.000000 11.543216 15.43% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 176 179
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 11.887094 12.452445 4.76% 4,826 1999 Value Portfolio - Q(1) 10.000000 11.887094 18.87% 0 1998 Warburg Pincus Trust - 11.887094 12.452445 4.76% 0 1999 Value Portfolio - NQ(1) 10.000000 11.887094 18.87% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 177 180 OPTIONAL BENEFITS ELECTED (TOTAL 1.45%) (VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 12.504468 14.543892 16.31% 414 1999 Variable Portfolios, 10.000000 12.504468 25.04% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.504468 14.543892 16.31% 2,924 1999 Variable Portfolios, 10.000000 12.504468 25.04% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 12.051405 19.483474 61.67% 0 1999 Variable Portfolios, 10.000000 12.051405 20.51% 0 1998 Inc. - American Century VP International - Q American Century 12.051405 19.483474 61.67% 3,787 1999 Variable Portfolios, 10.000000 12.051405 20.51% 0 1998 Inc. - American Century VP International - NQ American Century 11.269864 11.012072 -2.29% 0 1999 Variable Portfolios, 10.000000 11.269864 12.70% 0 1998 Inc. - American Century VP Value - Q American Century 11.269864 11.012072 -2.29% 0 1999 Variable Portfolios, 10.000000 11.269864 12.70% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.881775 28.82% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.881775 28.82% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.773638 16.375184 28.20% 4,973 1999 Responsible Growth 10.000000 12.773638 27.74% 0 1998 Fund, Inc. - Q
178 181
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 12.773638 16.375184 28.20% 3,868 1999 Responsible Growth Fund, Inc. - NQ 10.000000 12.773638 27.74% 0 1998 Dreyfus Stock Index 12.453273 14.801530 18.86% 24,817 1999 Fund, Inc. - Q 10.000000 12.453273 24.53% 0 1998 Dreyfus Stock Index 12.453273 14.801530 18.86% 33,498 1999 Fund, Inc. - NQ 10.000000 12.453273 24.53% 0 1998 Dreyfus Variable 12.379057 13.597232 9.84% 4,035 1999 Investment Fund - Appreciation Portfolio - - Q(1) 10.000000 12.379057 23.79% 0 1998 Dreyfus Variable 12.379057 13.597232 9.84% 2,220 1999 Investment Fund - Appreciation Portfolio - - NQ(1) 10.000000 12.379057 23.79% 0 1998 Federated Insurance 10.000000 9.773948 -2.26% 52 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.773948 -2.26% 0 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.799375 12.355641 4.71% 6,732 1999 Equity-Income Portfolio: Service Class - Q 10.000000 11.799375 17.99% 0 1998 Fidelity VIP 11.799375 12.355641 4.71% 20,296 1999 Equity-Income Portfolio: Service Class - NQ 10.000000 11.799375 17.99% 0 1998
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 179 182
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 12.903107 17.457597 35.30% 11,174 1999 Portfolio: Service Class - Q 10.000000 12.903107 29.03% 0 1998 Fidelity VIP Growth 12.903107 17.457597 35.30% 11,185 1999 Portfolio: Service Class - NQ 10.000000 12.903107 29.03% 0 1998 Fidelity VIP High 10.521282 11.205978 6.51% 1,302 1999 Income Portfolio: Service Class - Q 10.000000 10.521282 5.21% 0 1998 Fidelity VIP High 10.521282 11.205978 6.51% 1,902 1999 Income Portfolio: Service Class - NQ 10.000000 10.521282 5.21% 0 1998 Fidelity VIP Overseas 12.176593 17.095933 40.40% 1,185 1999 Portfolio: Service Class - Q 10.000000 12.176593 21.77% 0 1998 Fidelity VIP Overseas 12.176593 17.095933 40.40% 320 1999 Portfolio: Service Class - NQ 10.000000 12.176593 21.77% 0 1998 Fidelity VIP II 12.785888 15.643260 22.35% 5,156 1999 Contrafund(R) Portfolio: Service Class - Q 10.000000 12.785888 27.86% 0 1998 Fidelity VIP II 12.785888 15.643260 22.35% 2,495 1999 Contrafund(R) Portfolio: Service Class - NQ 10.000000 12.785888 27.86% 0 1998 Fidelity VIP III Growth 12.298659 12.627255 2.67% 848 1999 Opportunities Portfolio: Service Class - Q 10.000000 12.298659 22.99% 0 1998 Fidelity VIP III Growth 12.298659 12.627255 2.67% 350 1999 Opportunities Portfolio: Service Class - NQ 10.000000 12.298659 22.99% 0 1998
180 183
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 12.428639 12.772360 2.77% 5,318 1999 Appreciation Fund - Q 10.000000 12.428639 24.29% 0 1998 NSAT Capital 12.428639 12.772360 2.77% 7,947 1999 Appreciation Fund - NQ 10.000000 12.428639 24.29% 0 1998 NSAT Government Bond 9.844366 9.473867 -3.76% 2,805 1999 Fund - Q 10.000000 9.844366 -1.56% 0 1998 NSAT Government Bond 9.844366 9.473867 -3.76% 25,195 1999 Fund - NQ 10.000000 9.844366 -1.56% 0 1998 NSAT Money Market Fund 10.086763 10.422427 3.33% 17,714 1999 - - Q* 10.000000 10.086763 0.87% 0 1998 NSAT Money Market Fund 10.086763 10.422427 3.33% 9,674 1999 - - NQ* 10.000000 10.086763 0.87% 0 1998 NSAT Total Return Fund 11.982735 12.628895 5.39% 15,219 1999 - - Q 10.000000 11.982735 19.83% 0 1998 NSAT Total Return Fund 11.982735 12.628895 5.39% 19,035 1999 - - NQ 10.000000 11.982735 19.83% 0 1998 NSAT Nationwide 10.668044 10.604669 -0.59% 3,235 1999 Balanced Fund - Q 10.000000 10.668044 6.68% 0 1998 NSAT Nationwide 10.668044 10.604669 -0.59% 1,697 1999 Balanced Fund - NQ 10.000000 10.668044 6.68% 0 1998 1997
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.92%. 181 184
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 11.835834 13.821079 16.77% 0 1999 Income Fund - Q 10.000000 11.835834 18.36% 0 1998 NSAT Nationwide Equity 11.835834 13.821079 16.77% 230 1999 Income Fund - NQ 10.000000 11.835834 18.36% 0 1998 NSAT Nationwide Global 12.201492 14.781243 21.14% 1,409 1999 50 Fund - Q(1) 10.000000 12.201492 22.01% 0 1998 NSAT Nationwide Global 12.201492 14.781243 21.14% 298 1999 50 Fund - NQ(1) 10.000000 12.201492 22.01% 0 1998 NSAT Nationwide High 10.330681 10.505688 1.69% 1,761 1999 Income Bond Fund - Q 10.000000 10.330681 3.31% 0 1998 NSAT Nationwide High 10.330681 10.505688 1.69% 522 1999 Income Bond Fund - NQ 10.000000 10.330681 3.31% 0 1998 NSAT Nationwide Mid Cap 12.243049 14.589957 19.17% 0 1999 Index Fund-Q(2) 10.000000 12.243049 22.43% 0 1998 NSAT Nationwide Mid Cap 12.243049 14.589957 19.17% 0 1999 Index Fund- NQ(2) 10.000000 12.243049 22.43% 0 1998 NSAT Nationwide Multi 10.236779 10.245290 0.08% 332 1999 Sector Bond Fund - Q 10.000000 10.236779 2.37% 0 1998 NSAT Nationwide Multi 10.236779 10.245290 0.08% 414 1999 Sector Bond Fund - NQ 10.000000 10.236779 2.37% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 182 185
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.304522 103.05% 56 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.304522 103.05% 1,615 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.952944 16.318704 25.98% 2,229 1999 Cap Value Fund - Q 10.000000 12.952944 29.53% 0 1998 NSAT Nationwide Small 12.952944 16.318704 25.98% 489 1999 Cap Value Fund - NQ 10.000000 12.952944 29.53% 0 1998 NSAT Nationwide Small 12.112381 17.191574 41.93% 735 1999 Company Fund - Q 10.000000 12.112381 21.12% 0 1998 NSAT Nationwide Small 12.112381 17.191574 41.93% 107 1999 Company Fund - NQ 10.000000 12.112381 21.12% 0 1998 NSAT Nationwide 12.657572 23.046789 82.08% 4,278 1999 Strategic Growth Fund - Q 10.000000 12.657572 26.58% 0 1998 NSAT Nationwide 12.657572 23.046789 82.08% 909 1999 Strategic Growth Fund - NQ 10.000000 12.657572 26.58% 0 1998 NSAT Nationwide 13.017199 12.434581 -4.48% 2,281 1999 Strategic Value Fund - Q 10.000000 13.017199 30.17% 0 1998 NSAT Nationwide 13.017199 12.434581 -4.48% 644 1999 Strategic Value Fund - NQ 10.000000 13.017199 30.17% 0 1998
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 183 186
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 12.875671 14.583934 13.27% 1,068 1999 Guardian Portfolio - Q 10.000000 12.875671 28.76% 0 1998 Neuberger Berman AMT 12.875671 14.583934 13.27% 416 1999 Guardian Portfolio - NQ 10.000000 12.875671 28.76% 0 1998 Neuberger Berman AMT 14.065578 21.331920 51.66% 1,230 1999 Mid-Cap Growth Portfolio - Q 10.000000 14.065578 40.66% 0 1998 Neuberger Berman AMT 14.065578 21.331920 51.66% 1,717 1999 Mid-Cap Growth Portfolio - NQ 10.000000 14.065578 40.66% 0 1998 Neuberger Berman AMT 11.847572 12.536312 5.81% 4,900 1999 Partners Portfolio - Q 10.000000 11.847572 18.48% 0 1998 Neuberger Berman AMT 11.847572 12.536312 5.81% 1,254 1999 Partners Portfolio - NQ 10.000000 11.847572 18.48% 0 1998 Oppenheimer Variable 13.180191 23.849355 80.95% 1,448 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - Q(1) 10.000000 13.180191 31.80% 0 1998 Oppenheimer Variable 13.180191 23.849355 80.95% 24,045 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - NQ(1) 10.000000 13.180191 31.80% 0 1998
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 184 187
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 13.233333 18.474301 39.60% 3,780 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - Q(1) 10.000000 13.233333 32.23% 0 1998 Oppenheimer Variable 13.233333 18.474301 39.60% 167 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - NQ(1) 10.000000 13.233333 32.23% 0 1998 Oppenheimer Variable 12.329765 14.788879 19.94% 6,006 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) 10.000000 12.329765 23.30% 0 1998 Oppenheimer Variable 12.329765 14.788879 19.94% 5,080 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) 10.000000 12.329765 23.30% 0 1998 The Universal 11.385439 14.516616 27.50% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - Q(3) 10.000000 11.385439 13.85% 0 1998 The Universal 11.385439 14.516616 27.50% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - NQ(3) 10.000000 11.385439 13.85% 0 1998 Van Eck Worldwide 12.623166 24.916384 97.39% 0 1999 Insurance Trust - Worldwide Emerging Markets Fund - Q 10.000000 12.623166 26.23% 0 1998
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 185 188
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 12.623166 24.916384 97.39% 15,963 1999 Insurance Trust - Worldwide Emerging Markets Fund - NQ 10.000000 12.623166 26.23% 0 1998 Van Eck Worldwide 9.909760 11.817233 19.25% 175 1999 Insurance Trust - Worldwide Hard Assets Fund - Q 10.000000 9.909760 -0.90% 0 1998 Van Eck Worldwide 9.909760 11.817233 19.25% 0 1999 Insurance Trust - Worldwide Hard Assets Fund - NQ 10.000000 9.909760 -0.90% 0 1998 Van Kampen Life 10.402138 9.905582 -4.77% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - Q 10.000000 10.402138 4.02% 0 1998 Van Kampen Life 10.402138 9.905582 -4.77% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - NQ 10.000000 10.402138 4.02% 0 1998 Warburg Pincus Trust - 12.827718 20.669425 61.13% 0 1999 Global Post-Venture Capital Portfolio - Q(1) 10.000000 12.827718 28.28% 0 1998 Warburg Pincus Trust - 12.827718 20.669425 61.13% 0 1999 Global Post-Venture Capital Portfolio - NQ(1) 10.000000 12.827718 28.28% 0 1998 Warburg Pincus Trust - 11.541756 17.452381 51.21% 0 1999 International Equity Portfolio - Q 10.000000 11.541756 15.42% 0 1998 Warburg Pincus Trust - 11.541756 17.452381 51.21% 160 1999 International Equity Portfolio - NQ 10.000000 11.541756 15.42% 0 1998
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 186 189
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 11.885603 12.444575 4.70% 0 1999 Value Portfolio - Q(1) 10.000000 11.885603 18.86% 0 1998 Warburg Pincus Trust - 11.885603 12.444575 4.70% 0 1999 Value Portfolio - NQ(1) 10.000000 11.885603 18.86% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 187 190 OPTIONAL BENEFITS ELECTED (TOTAL 1.50%) (VARIABLE ACCOUNT CHARGES OF 1.50% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 12.502898 14.534695 16.25% 2,824 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - Q 10.000000 12.502898 25.03% 0 1998 American Century 12.502898 14.534695 16.25% 2,019 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - NQ 10.000000 12.502898 25.03% 0 1998 American Century 12.049887 19.471172 61.59% 4,198 1999 Variable Portfolios, Inc. - American Century VP International - Q 10.000000 12.049887 20.50% 0 1998 American Century 12.049887 19.471172 61.59% 6,176 1999 Variable Portfolios, Inc. - American Century VP International - NQ 10.000000 12.049887 20.50% 0 1998 American Century 11.268440 11.005082 -2.34% 2,908 1999 Variable Portfolios, Inc. - American Century VP Value - Q 10.000000 11.268440 12.68% 0 1998 American Century 11.268440 11.005082 -2.34% 3,795 1999 Variable Portfolios, Inc. - American Century VP Value - NQ 10.000000 11.268440 12.68% 0 1998 Dreyfus Investment 10.000000 12.880083 28.80% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.880083 28.80% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.772030 16.364824 28.13% 2,099 1999 Responsible Growth Fund, Inc. - Q 10.000000 12.772030 27.72% 0 1998
188 191
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 12.772030 16.364824 28.13% 1,156 1999 Responsible Growth Fund, Inc. - NQ 10.000000 12.772030 27.72% 0 1998 Dreyfus Stock Index 12.451705 14.792159 18.80% 19,107 1999 Fund, Inc. - Q 10.000000 12.451705 24.52% 0 1998 Dreyfus Stock Index 12.451705 14.792159 18.80% 35,114 1999 Fund, Inc. - NQ 10.000000 12.451705 24.52% 0 1998 Dreyfus Variable 12.377494 13.588614 9.78% 4,237 1999 Investment Fund - Appreciation Portfolio - - Q(1) 10.000000 12.377494 23.77% 0 1998 Dreyfus Variable 12.377494 13.588614 9.78% 6,661 1999 Investment Fund - Appreciation Portfolio - - NQ(1) 10.000000 12.377494 23.77% 0 1998 Federated Insurance 10.000000 9.770666 -2.29% 836 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.770666 -2.29% 709 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.797885 12.347825 4.66% 1,744 1999 Equity-Income Portfolio: Service Class - Q 10.000000 11.797885 17.98% 0 1998 Fidelity VIP 11.797885 12.347825 4.66% 10,568 1999 Equity-Income Portfolio: Service Class - NQ 10.000000 11.797885 17.98% 0 1998
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 189 192
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 12.901477 17.446540 35.23% 8,673 1999 Portfolio: Service Class - Q 10.000000 12.901477 29.01% 0 1998 Fidelity VIP Growth 12.901477 17.446540 35.23% 10,648 1999 Portfolio: Service Class - NQ 10.000000 12.901477 29.01% 0 1998 Fidelity VIP High 10.519957 11.198884 6.45% 994 1999 Income Portfolio: Service Class - Q 10.000000 10.519957 5.20% 0 1998 Fidelity VIP High 10.519957 11.198884 6.45% 5,476 1999 Income Portfolio: Service Class - NQ 10.000000 10.519957 5.20% 0 1998 Fidelity VIP Overseas 12.175055 17.085125 40.33% 1,193 1999 Portfolio: Service Class - Q 10.000000 12.175055 21.75% 0 1998 Fidelity VIP Overseas 12.175055 17.085125 40.33% 544 1999 Portfolio: Service Class - NQ 10.000000 12.175055 21.75% 0 1998 Fidelity VIP II 12.784276 15.633362 22.29% 6,769 1999 Contrafund(R)Portfolio: Service Class - Q 10.000000 12.784276 27.84% 0 1998 Fidelity VIP II 12.784276 15.633362 22.29% 4,958 1999 Contrafund(R)Portfolio: Service Class - NQ 10.000000 12.784276 27.84% 0 1998 Fidelity VIP III Growth 12.297109 12.619265 2.62% 0 1999 Opportunities Portfolio: Service Class - Q 10.000000 12.297109 22.97% 0 1998 Fidelity VIP III Growth 12.297109 12.619265 2.62% 1,052 1999 Opportunities Portfolio: Service Class - NQ 10.000000 12.297109 22.97% 0 1998
190 193
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 12.427070 12.764281 2.71% 7,536 1999 Appreciation Fund - Q 10.000000 12.427070 24.27% 0 1998 NSAT Capital 12.427070 12.764281 2.71% 4,510 1999 Appreciation Fund - NQ 10.000000 12.427070 24.27% 0 1998 NSAT Government Bond 9.843122 9.467860 -3.81% 594 1999 Fund - Q 10.000000 9.843122 -1.57% 0 1998 NSAT Government Bond 9.843122 9.467860 -3.81% 13,238 1999 Fund - NQ 10.000000 9.843122 -1.57% 0 1998 NSAT Money Market Fund 10.085474 10.415808 3.28% 19,181 1999 - - Q* 10.000000 10.085474 0.85% 0 1998 NSAT Money Market Fund 10.085474 10.415808 3.28% 35,315 1999 - - NQ* 10.000000 10.085474 0.85% 0 1998 NSAT Total Return Fund 11.981226 12.620906 5.34% 4,117 1999 - - Q 10.000000 11.981226 19.81% 0 1998 NSAT Total Return Fund 11.981226 12.620906 5.34% 12.216 1999 - - NQ 10.000000 11.981226 19.81% 0 1998 NSAT Nationwide 10.666693 10.597955 -0.64% 109 1999 Balanced Fund - Q 10.000000 10.666693 6.67% 0 1998 NSAT Nationwide 10.666693 10.597955 -0.64% 677 1999 Balanced Fund - NQ 10.000000 10.666693 6.67% 0 1998 1997
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.87%. 191 194
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 11.834345 13.812331 16.71% 3,142 1999 Income Fund - Q 10.000000 11.834345 18.34% 0 1998 NSAT Nationwide Equity 11.843345 13.812331 16.71% 506 1999 Income Fund - NQ 10.000000 11.843345 18.34% 0 1998 NSAT Nationwide Global 12.199950 14.771891 21.08% 0 1999 50 Fund - Q(1) 10.000000 12.199950 22.00% 0 1998 NSAT Nationwide Global 12.199950 14.771891 21.08% 21 1999 50 Fund - NQ(1) 10.000000 12.199950 22.00% 0 1998 NSAT Nationwide High 10.329379 10.499020 1.64% 1,397 1999 Income Bond Fund - Q 10.000000 10.329379 3.29% 0 1998 NSAT Nationwide High 10.329379 10.499020 1.64% 4,125 1999 Income Bond Fund - NQ 10.000000 10.329379 3.29% 0 1998 NSAT Nationwide Mid Cap 12.241505 14.580726 19.11% 0 1999 Index Fund-Q(2) 10.000000 12.241505 22.42% 0 1998 NSAT Nationwide Mid Cap 12.241505 14.580726 19.11% 0 1999 Index Fund- NQ(2) 10.000000 12.241505 22.42% 0 1998 NSAT Nationwide Multi 10.235484 10.238786 0.03% 0 1999 Sector Bond Fund - Q 10.000000 10.235484 2.35% 0 1998 NSAT Nationwide Multi 10.235484 10.238786 0.03% 0 1999 Sector Bond Fund - NQ 10.000000 10.235484 2.35% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 192 195
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.297724 102.98% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.297724 102.98% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.951308 16.308373 25.92% 1,244 1999 Cap Value Fund - Q 10.000000 12.951308 29.51% 0 1998 NSAT Nationwide Small 12.951308 16.308373 25.92% 1,119 1999 Cap Value Fund - NQ 10.000000 12.951308 29.51% 0 1998 NSAT Nationwide Small 12.110854 17.180698 41.86% 1,410 1999 Company Fund - Q 10.000000 12.110854 21.11% 0 1998 NSAT Nationwide Small 12.110854 17.180698 41.86% 4,635 1999 Company Fund - NQ 10.000000 12.110854 21.11% 0 1998 NSAT Nationwide 12.655972 23.032196 81.99% 2,030 1999 Strategic Growth Fund - Q 10.000000 12.655972 26.56% 0 1998 NSAT Nationwide 12.655972 23.032196 81.99% 493 1999 Strategic Growth Fund - NQ 10.000000 12.655972 26.56% 0 1998 NSAT Nationwide 13.015559 12.426696 -4.52% 6,036 1999 Strategic Value Fund - Q 10.000000 13.015559 30.16% 0 1998 NSAT Nationwide 13.015559 12.426696 -4.52% 415 1999 Strategic Value Fund - NQ 10.000000 13.015559 30.16% 0 1998
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 193 196
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 12.874049 14.574691 13.21% 0 1999 Guardian Portfolio - Q 10.000000 12.874049 28.74% 0 1998 Neuberger Berman AMT 12.874049 14.574691 13.21% 202 1999 Guardian Portfolio - NQ 10.000000 12.874049 28.74% 0 1998 Neuberger Berman AMT 14.063808 21.318413 51.58% 1,746 1999 Mid-Cap Growth Portfolio - Q 10.000000 14.063808 40.64% 0 1998 Neuberger Berman AMT 14.063808 21.318413 51.58% 3,464 1999 Mid-Cap Growth Portfolio - NQ 10.000000 14.063808 40.64% 0 1998 Neuberger Berman AMT 11.846069 12.528364 5.76% 0 1999 Partners Portfolio - Q 10.000000 11.846069 18.46% 0 1998 Neuberger Berman AMT 11.846069 12.528364 5.76% 76 1999 Partners Portfolio - NQ 10.000000 11.846069 18.46% 0 1998 Oppenheimer Variable 13.178533 23.834283 80.86% 1,127 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - Q(1) 10.000000 13.178533 31.79% 0 1998 Oppenheimer Variable 13.178533 23.834283 80.86% 0 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - NQ(1) 10.000000 13.178533 31.79% 0 1998
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 194 197
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 13.231670 18.462618 39.53% 9,182 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - Q(1) 10.000000 13.231670 32.32% 0 1998 Oppenheimer Variable 13.231670 18.462618 39.53% 1,652 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - NQ(1) 10.000000 13.231670 32.32% 0 1998 Oppenheimer Variable 12.328212 14.779520 19.88% 2,195 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) 10.000000 12.328212 23.28% 0 1998 Oppenheimer Variable 12.328212 14.779520 19.88% 2,856 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) 10.000000 12.328212 23.28% 0 1998 The Universal 11.383996 14.507420 27.44% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - Q(3) 10.000000 11.383996 13.84% 0 1998 The Universal 11.383996 14.507420 27.44% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - NQ(3) 10.000000 11.383996 13.84% 0 1998 Van Eck Worldwide 12.621572 24.900624 97.29% 0 1999 Insurance Trust - Worldwide Emerging Markets Fund - Q 10.000000 12.621572 26.22% 0 1998
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 195 198
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 12.621572 24.900624 97.29% 0 1999 Insurance Trust - Worldwide Emerging Markets Fund - NQ 10.000000 12.621572 26.22% 0 1998 Van Eck Worldwide 9.908503 11.809742 19.19% 0 1999 Insurance Trust - Worldwide Hard Assets Fund - Q 10.000000 9.908503 -0.91% 0 1998 Van Eck Worldwide 9.908503 11.809742 19.19% 296 1999 Insurance Trust - Worldwide Hard Assets Fund - NQ 10.000000 9.908503 -0.91% 0 1998 Van Kampen Life 10.400818 9.899304 -4.82% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - Q 10.000000 10.400818 4.01% 0 1998 Van Kampen Life 10.400818 9.899304 -4.82% 329 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - NQ 10.000000 10.400818 4.01% 0 1998 Warburg Pincus Trust - 12.826101 20.656350 61.05% 0 1999 Global Post-Venture Capital Portfolio - Q(1) 10.000000 12.826101 28.26% 0 1998 Warburg Pincus Trust - 12.826101 20.656350 61.05% 0 1999 Global Post-Venture Capital Portfolio - NQ(1) 10.000000 12.826101 28.26% 0 1998 Warburg Pincus Trust - 11.540306 17.441358 51.13% 455 1999 International Equity Portfolio - Q 10.000000 11.540306 15.40% 0 1998 Warburg Pincus Trust - 11.540306 17.441358 51.13% 0 1999 International Equity Portfolio - NQ 10.000000 11.540306 15.40% 0 1998
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 196 199
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 11.884096 12.436688 4.65% 88 1999 Value Portfolio - Q(1) 10.000000 11.884096 18.84% 0 1998 Warburg Pincus Trust - 11.884096 12.436688 4.65% 3,500 1999 Value Portfolio - NQ(1) 10.000000 11.884096 18.84% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 197 200 OPTIONAL BENEFITS ELECTED (TOTAL 1.55%) (VARIABLE ACCOUNT CHARGES OF 1.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 12.501318 14.525483 16.19% 0 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - Q 10.000000 12.501318 25.01% 0 1998 American Century 12.501318 14.525483 16.19% 0 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - NQ 10.000000 12.501318 25.01% 0 1998 American Century 12.048368 19.458849 61.51% 0 1999 Variable Portfolios, Inc. - American Century VP International - Q 10.000000 12.048368 20.48% 0 1998 American Century 12.048368 19.458849 61.51% 0 1999 Variable Portfolios, Inc. - American Century VP International - NQ 10.000000 12.048368 20.48% 0 1998 American Century 11.267010 10.998104 -2.39% 3,076 1999 Variable Portfolios, Inc. - American Century VP Value - Q 10.000000 11.267010 12.67% 0 1998 American Century 11.267010 10.998104 -2.39% 0 1999 Variable Portfolios, Inc. - American Century VP Value - NQ 10.000000 11.267010 12.67% 0 1998 Dreyfus Investment 10.000000 12.878387 28.78% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.878387 28.78% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.770419 16.354471 28.07% 90 1999 Responsible Growth Fund, Inc. - Q 10.000000 12.770419 27.70% 0 1998
198 201
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 12.770419 16.354471 28.07% 90 1999 Responsible Growth 10.000000 12.770419 27.70% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.450128 14.782794 18.74% 2,465 1999 Fund, Inc. - Q 10.000000 12.450128 24.50% 0 1998 Dreyfus Stock Index 12.450128 14.782794 18.74% 353 1999 Fund, Inc. - NQ 10.000000 12.450128 24.50% 0 1998 Dreyfus Variable 12.375935 13.580004 9.73% 0 1999 Investment Fund - 10.000000 12.375935 23.76% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.375935 13.580004 9.73% 0 1999 Investment Fund - 10.000000 12.375935 23.76% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.767363 -2.33% 0 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.767363 -2.33% 0 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.796399 12.339995 4.61% 2,679 1999 Equity-Income 10.000000 11.796399 17.96% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.796399 12.339995 4.61% 0 1999 Equity-Income 10.000000 11.796399 17.96% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 199 202
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 12.899854 17.435504 35.16% 2,316 1999 Portfolio: Service 10.000000 12.899854 29.00% 0 1998 Class - Q Fidelity VIP Growth 12.899854 17.435504 35.16% 129 1999 Portfolio: Service 10.000000 12.899854 29.00% 0 1998 Class - NQ Fidelity VIP High 10.518622 11.191773 6.40% 0 1999 Income Portfolio: 10.000000 10.518622 5.19% 0 1998 Service Class - Q Fidelity VIP High 10.518622 11.191773 6.40% 0 1999 Income Portfolio: 10.000000 10.518622 5.19% 0 1998 Service Class - NQ Fidelity VIP Overseas 12.173522 17.074312 40.26% 0 1999 Portfolio: Service 10.000000 12.173522 21.74% 0 1998 Class - Q Fidelity VIP Overseas 12.173522 17.074312 40.26% 0 1999 Portfolio: Service 10.000000 12.173522 21.74% 0 1998 Class - NQ Fidelity VIP II 12.782661 15.623458 22.22% 0 1999 Contrafund(R)Portfolio: 10.000000 12.782661 27.83% 0 1998 Service Class - Q Fidelity VIP II 12.782661 15.623458 22.22% 0 1999 Contrafund(R)Portfolio: 10.000000 12.782661 27.83% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.295562 12.611273 2.57% 109 1999 Opportunities 10.000000 12.295562 22.96% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.295562 12.611273 2.57% 0 1999 Opportunities 10.000000 12.295562 22.96% 0 1998 Portfolio: Service Class - NQ
200 203
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 12.425504 12.756184 2.66% 1,047 1999 Appreciation Fund - Q 10.000000 12.425504 24.26% 0 1998 NSAT Capital 12.425504 12.756184 2.66% 0 1999 Appreciation Fund - NQ 10.000000 12.425504 24.26% 0 1998 NSAT Government Bond 9.841878 9.461864 -3.36% 139 1999 Fund - Q 10.000000 9.871878 -1.58% 0 1998 NSAT Government Bond 9.841878 9.461864 -3.36% 426 1999 Fund - NQ 10.000000 9.871878 -1.58% 0 1998 NSAT Money Market Fund 10.084183 10.409189 3.22% 0 1999 - - Q* 10.000000 10.084183 0.84% 0 1998 NSAT Money Market Fund 10.084183 10.409189 3.22% 0 1999 - - NQ* 10.000000 10.084183 0.84% 0 1998 NSAT Total Return Fund 11.979709 12.612898 5.29% 3,714 1999 - - Q 10.000000 11.979709 19.80% 0 1998 NSAT Total Return Fund 11.979709 12.612898 5.29% 582 1999 - - NQ 10.000000 11.979709 19.80% 0 1998 NSAT Nationwide 10.665345 10.591234 -0.69% 0 1999 Balanced Fund - Q 10.000000 10.665345 6.65% 0 1998 NSAT Nationwide 10.665345 10.591234 -0.69% 0 1999 Balanced Fund - NQ 10.000000 10.665345 6.65% 0 1998
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.82%. 201 204
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 11.832846 13.803577 16.65% 0 1999 Income Fund - Q 10.000000 11.832846 18.33% 0 1998 NSAT Nationwide Equity 11.832846 13.803577 16.65% 0 1999 Income Fund - NQ 10.000000 11.832846 18.33% 0 1998 NSAT Nationwide Global 12.198407 14.762540 21.02% 0 1999 50 Fund - Q(1) 10.000000 12.198407 21.98% 0 1998 NSAT Nationwide Global 12.198407 14.762540 21.02% 0 1999 50 Fund - NQ(1) 10.000000 12.198407 21.98% 0 1998 NSAT Nationwide High 10.328064 10.492359 1.59% 0 1999 Income Bond Fund - Q 10.000000 10.328064 3.28% 0 1998 NSAT Nationwide High 10.328064 10.492359 1.59% 327 1999 Income Bond Fund - NQ 10.000000 10.328064 3.28% 0 1998 NSAT Nationwide Mid Cap 12.239965 14.571500 19.05% 2,028 1999 Index Fund-Q(2) 10.000000 12.239965 22.40% 0 1998 NSAT Nationwide Mid Cap 12.239965 14.571500 19.05% 0 1999 Index Fund- NQ(2) 10.000000 12.239965 22.40% 0 1998 NSAT Nationwide Multi 10.234182 10.232296 -0.02% 0 1999 Sector Bond Fund - Q 10.000000 10.234182 2.34% 0 1998 NSAT Nationwide Multi 10.234182 10.232296 -0.02% 0 1999 Sector Bond Fund - NQ 10.000000 10.234182 2.34% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 202 205
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.290923 102.91% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.290923 102.91% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.949678 16.298055 25.86% 0 1999 Cap Value Fund - Q 10.000000 12.949678 29.50% 0 1998 NSAT Nationwide Small 12.949678 16.298055 25.86% 0 1999 Cap Value Fund - NQ 10.000000 12.949678 29.50% 0 1998 NSAT Nationwide Small 12.109325 17.169820 41.79% 0 1999 Company Fund - Q 10.000000 12.109325 21.09% 0 1998 NSAT Nationwide Small 12.109325 17.169820 41.79% 0 1999 Company Fund - NQ 10.000000 12.109325 21.09% 0 1998 NSAT Nationwide 12.654379 23.017640 81.89% 0 1999 Strategic Growth Fund - 10.000000 12.654379 26.54% 0 1998 Q NSAT Nationwide 12.654379 23.017640 81.89% 69 1999 Strategic Growth Fund - 10.000000 12.654379 26.54% 0 1998 NQ NSAT Nationwide 13.013916 12.418826 -4.57% 0 1999 Strategic Value Fund - Q 10.000000 13.013916 30.14% 0 1998 NSAT Nationwide 13.013916 12.418826 -4.57% 0 1999 Strategic Value Fund - 10.000000 13.013916 30.14% 0 1998 NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 203 206
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 12.872425 14.565469 13.15% 0 1999 Guardian Portfolio - Q 10.000000 12.872425 28.72% 0 1998 Neuberger Berman AMT 12.872425 14.565469 13.15% 0 1999 Guardian Portfolio - NQ 10.000000 12.872425 28.72% 0 1998 Neuberger Berman AMT 14.062035 21.304943 51.51% 1,708 1999 Mid-Cap Growth 10.000000 14.062035 40.62% 0 1998 Portfolio - Q Neuberger Berman AMT 14.062035 21.304943 51.51% 0 1999 Mid-Cap Growth 10.000000 14.062035 40.62% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.844579 12.520433 5.71% 0 1999 Partners Portfolio - Q 10.000000 11.844579 18.45% 0 1998 Neuberger Berman AMT 11.844579 12.520433 5.71% 293 1999 Partners Portfolio - NQ 10.000000 11.844579 18.45% 0 1998 Oppenheimer Variable 13.176875 23.819210 80.77% 0 1999 Account Funds - 10.000000 13.176875 31.77% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 13.176875 23.819210 80.77% 0 1999 Account Funds - 10.000000 13.176875 31.77% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 204 207
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 13.230001 18.450922 39.46% 0 1999 Account Funds - 10.000000 13.230001 32.30% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 13.230001 18.450922 39.46% 0 1999 Account Funds - 10.000000 13.230001 32.30% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.326652 17.770155 19.82% 0 1999 Account Funds - 10.000000 12.326652 23.27% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.326652 17.770155 19.82% 0 1999 Account Funds - 10.000000 12.326652 23.27% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.382564 14.498248 27.37% 0 1999 Institutional Funds, 10.000000 11.382564 13.83% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.382564 14.498248 27.37% 0 1999 Institutional Funds, 10.000000 11.382564 13.83% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.619986 24.884920 97.19% 0 1999 Insurance Trust - 10.000000 12.619986 26.20% 0 1998 Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 205 208
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 12.619986 24.884920 97.19% 0 1999 Insurance Trust - 10.000000 12.619986 26.20% 0 1998 Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 9.907247 11.802251 19.13% 0 1999 Insurance Trust - 10.000000 9.907247 -0.93% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 9.907247 11.802251 19.13% 0 1999 Insurance Trust - 10.000000 9.907247 -0.93% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.399504 9.893020 -4.87% 0 1999 Investment Trust - 10.000000 10.399504 4.00% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.399504 9.893020 -4.87% 0 1999 Investment Trust - 10.000000 10.399504 4.00% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.824482 20.643272 60.97% 0 1999 Global Post-Venture 10.000000 12.824482 28.24% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.824482 20.643272 60.97% 0 1999 Global Post-Venture 10.000000 12.824482 28.24% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 11.538849 17.430313 51.06% 0 1999 International Equity 10.000000 11.538849 15.39% 0 1998 Portfolio - Q Warburg Pincus Trust - 11.538849 17.430313 51.06% 0 1999 International Equity 10.000000 11.538849 15.39% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 206 209
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 11.882597 12.428801 4.60% 0 1999 Value Portfolio - Q(1) 10.000000 11.882597 18.83% 0 1998 Warburg Pincus Trust - 11.882597 12.428801 4.60% 0 1999 Value Portfolio - NQ(1) 10.000000 11.882597 18.83% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 207 210 OPTIONAL BENEFITS ELECTED (TOTAL 1.60%) (VARIABLE ACCOUNT CHARGES OF 1.60% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 12.499739 14.516288 16.13% 0 1999 Variable Portfolios, 10.000000 12.499739 25.00% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.499739 14.516288 16.13% 0 1999 Variable Portfolios, 10.000000 12.499739 25.00% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 12.046847 19.446544 61.42% 0 1999 Variable Portfolios, 10.000000 12.046847 20.47% 0 1998 Inc. - American Century VP International - Q American Century 12.046847 19.446544 61.42% 15 1999 Variable Portfolios, 10.000000 12.046847 20.47% 0 1998 Inc. - American Century VP International - NQ American Century 11.265587 10.991130 -2.44% 0 1999 Variable Portfolios, 10.000000 11.265587 12.66% 0 1998 Inc. - American Century VP Value - Q American Century 11.265587 10.991130 -2.44% 0 1999 Variable Portfolios, 10.000000 11.265587 12.66% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.876687 28.77% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.876687 28.77% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.768801 16.344103 28.00% 0 1999 Responsible Growth 10.000000 12.768801 27.69% 0 1998 Fund, Inc. - Q
208 211
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 12.768801 16.344103 28.00% 160 1999 Responsible Growth 10.000000 12.768801 27.69% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.448554 14.773416 18.68% 0 1999 Fund, Inc. - Q 10.000000 12.448554 24.49% 0 1998 Dreyfus Stock Index 12.448554 14.773416 18.68% 1,231 1999 Fund, Inc. - NQ 10.000000 12.448554 24.49% 0 1998 Dreyfus Variable 12.374369 13.571399 9.67% 0 1999 Investment Fund - 10.000000 12.374369 23.74% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.374369 13.571399 9.67% 0 1999 Investment Fund - 10.000000 12.374369 23.74% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.764075 -2.36% 0 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.764075 -2.36% 0 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.794908 12.332164 4.55% 0 1999 Equity-Income 10.000000 11.794908 17.95% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.794908 12.332164 4.55% 0 1999 Equity-Income 10.000000 11.794908 17.95% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 209 212
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 12.898222 17.424460 35.09% 0 1999 Portfolio: Service 10.000000 12.898222 28.98% 0 1998 Class - Q Fidelity VIP Growth 12.898222 17.424460 35.09% 1,135 1999 Portfolio: Service 10.000000 12.898222 28.98% 0 1998 Class - NQ Fidelity VIP High 10.517295 11.184683 6.35% 0 1999 Income Portfolio: 10.000000 10.517295 5.17% 0 1998 Service Class - Q Fidelity VIP High 10.517295 11.184683 6.35% 0 1999 Income Portfolio: 10.000000 10.517295 5.17% 0 1998 Service Class - NQ Fidelity VIP Overseas 12.171984 17.063506 40.19% 0 1999 Portfolio: Service 10.000000 12.171984 21.72% 0 1998 Class - Q Fidelity VIP Overseas 12.171984 17.063506 40.19% 0 1999 Portfolio: Service 10.000000 12.171984 21.72% 0 1998 Class - NQ Fidelity VIP II 12.781050 15.613554 22.16% 0 1999 Contrafund(R)Portfolio: 10.000000 12.781050 27.81% 0 1998 Service Class - Q Fidelity VIP II 12.781050 15.613554 22.16% 0 1999 Contrafund(R)Portfolio: 10.000000 12.781050 27.81% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.294002 12.603267 2.52% 0 1999 Opportunities 10.000000 12.294002 22.94% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.294002 12.603267 2.52% 0 1999 Opportunities 10.000000 12.294002 22.94% 0 1998 Portfolio: Service Class - NQ
210 213
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 12.423931 12.748099 2.61% 0 1999 Appreciation Fund - Q 10.000000 12.423931 24.24% 0 1998 NSAT Capital 12.423931 12.748099 2.61% 1,104 1999 Appreciation Fund - NQ 10.000000 12.423931 24.24% 0 1998 NSAT Government Bond 9.840635 9.455873 -3.91% 0 1999 Fund - Q 10.000000 9.840635 -1.59% 0 1998 NSAT Government Bond 9.840635 9.455873 -3.91% 213 1999 Fund - NQ 10.000000 9.840635 -1.59% 0 1998 NSAT Money Market Fund 10.082892 10.402569 3.17% 0 1999 - - Q* 10.000000 10.082892 0.83% 0 1998 NSAT Money Market Fund 10.082892 10.402569 3.17% 0 1999 - - NQ* 10.000000 10.082892 0.83% 0 1998 NSAT Total Return Fund 11.978202 12.604902 5.23% 0 1999 - - Q 10.000000 11.978202 19.78% 0 1998 NSAT Total Return Fund 11.978202 12.604902 5.23% 0 1999 - - NQ 10.000000 11.978202 19.78% 0 1998 NSAT Nationwide 10.663998 10.584515 -0.75% 0 1999 Balanced Fund - Q 10.000000 10.663998 6.64% 0 1998 NSAT Nationwide 10.663998 10.584515 -0.75% 0 1999 Balanced Fund - NQ 10.000000 10.663998 6.64% 0 1998
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.77%. 211 214
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 11.831350 13.794835 16.60% 0 1999 Income Fund - Q 10.000000 11.831350 18.31% 0 1998 NSAT Nationwide Equity 11.831350 13.794835 16.60% 0 1999 Income Fund - NQ 10.000000 11.831350 18.31% 0 1998 NSAT Nationwide Global 12.196868 14.753188 20.96% 0 1999 50 Fund - Q(1) 10.000000 12.196868 21.97% 0 1998 NSAT Nationwide Global 12.196868 14.753188 20.96% 0 1999 50 Fund - NQ(1) 10.000000 12.196868 21.97% 0 1998 NSAT Nationwide High 10.326759 10.485712 1.54% 0 1999 Income Bond Fund - Q 10.000000 10.326759 6.27% 0 1998 NSAT Nationwide High 10.326759 10.485712 1.54% 131 1999 Income Bond Fund - NQ 10.000000 10.326759 6.27% 0 1998 NSAT Nationwide Mid Cap 12.238420 14.562264 18.99% 0 1999 Index Fund-Q(2) 10.000000 12.238420 22.38% 0 1998 NSAT Nationwide Mid Cap 12.238420 14.562264 18.99% 0 1999 Index Fund- NQ(2) 10.000000 12.238420 22.38% 0 1998 NSAT Nationwide Multi 10.232888 10.225806 -0.07% 0 1999 Sector Bond Fund - Q 10.000000 10.232888 2.33% 0 1998 NSAT Nationwide Multi 10.232888 10.225806 -0.07% 0 1999 Sector Bond Fund - NQ 10.000000 10.232888 2.33% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 212 215
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.284124 102.84% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.284124 102.84% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.948046 16.287722 25.79% 0 1999 Cap Value Fund - Q 10.000000 12.948046 29.48% 0 1998 NSAT Nationwide Small 12.948046 16.287722 25.79% 68 1999 Cap Value Fund - NQ 10.000000 12.948046 29.48% 0 1998 NSAT Nationwide Small 12.107799 17.158959 41.72% 0 1999 Company Fund - Q 10.000000 12.107799 21.08% 0 1998 NSAT Nationwide Small 12.107799 17.158959 41.72% 0 1999 Company Fund - NQ 10.000000 12.107799 21.08% 0 1998 NSAT Nationwide 12.652786 23.003080 81.80% 0 1999 Strategic Growth Fund - 10.000000 12.652786 26.53% 0 1998 Q NSAT Nationwide 12.652786 23.003080 81.80% 74 1999 Strategic Growth Fund - 10.000000 12.652786 26.53% 0 1998 NQ NSAT Nationwide 13.012266 12.410940 -4.62% 0 1999 Strategic Value Fund - Q 10.00000 13.012266 30.12% 0 1998 NSAT Nationwide 13.012266 12.410940 -4.62% 0 1999 Strategic Value Fund - 10.00000 13.012266 30.12% 0 1998 NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 213 216
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 12.870796 14.556239 13.10% 0 1999 Guardian Portfolio - Q 10.000000 12.870796 28.71% 0 1998 Neuberger Berman AMT 12.870796 14.556239 13.10% 0 1999 Guardian Portfolio - NQ 10.000000 12.870796 28.71% 0 1998 Neuberger Berman AMT 14.060269 21.291440 51.43% 0 1999 Mid-Cap Growth 10.000000 14.060269 40.60% 0 1998 Portfolio - Q Neuberger Berman AMT 14.060269 21.291440 51.43% 0 1999 Mid-Cap Growth 10.000000 14.060269 40.60% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.843083 12.512486 5.65% 0 1999 Partners Portfolio - Q 10.000000 11.843083 18.43% 0 1998 Neuberger Berman AMT 11.843083 12.512486 5.65% 0 1999 Partners Portfolio - NQ 10.000000 11.843083 18.43% 0 1998 Oppenheimer Variable 13.175212 23.804137 80.67% 0 1999 Account Funds - 10.000000 13.175212 31.75% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 13.175212 23.804137 80.67% 0 1999 Account Funds - 10.000000 13.175212 31.75% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 214 217
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 13.228333 18.439240 39.39% 0 1999 Account Funds - 10.000000 13.228333 32.28% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 13.228333 18.439240 39.39% 1,078 1999 Account Funds - 10.000000 13.228333 32.28% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.325100 14.760805 19.76% 0 1999 Account Funds - 10.000000 12.325100 23.25% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.325100 14.760805 19.76% 0 1999 Account Funds - 10.000000 12.325100 23.25% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.381127 14.489064 27.31% 0 1999 Institutional Funds, 10.000000 11.381127 13.81% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.381127 14.489064 27.31% 0 1999 Institutional Funds, 10.000000 11.381127 13.81% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.618390 24.869164 97.09% 0 1999 Insurance Trust - 10.000000 12.618390 26.18% 0 1998 Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 215 218
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 12.618390 24.869164 97.09% 0 1999 Insurance Trust - 10.000000 12.618390 26.18% 0 1998 Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 9.905995 11.794757 19.07% 0 1999 Insurance Trust - 10.000000 9.905995 -0.94% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 9.905995 11.794757 19.07% 0 1999 Insurance Trust - 10.000000 9.905995 -0.94% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.398185 9.886745 -4.92% 0 1999 Investment Trust - 10.000000 10.398185 3.98% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.398185 9.886745 -4.92% 0 1999 Investment Trust - 10.000000 10.398185 3.98% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.822867 20.630231 60.89% 0 1999 Global Post-Venture 10.000000 12.822867 28.23% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.822867 20.630231 60.89% 0 1999 Global Post-Venture 10.000000 12.822867 28.23% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 11.537392 17.419297 50.98% 0 1999 International Equity 10.000000 11.537392 15.37% 0 1998 Portfolio - Q Warburg Pincus Trust - 11.537392 17.419297 50.98% 78 1999 International Equity 10.000000 11.537392 15.37% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 216 219
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 11.881095 12.420923 4.54% 0 1999 Value Portfolio - Q(1) 10.000000 11.881095 18.81% 0 1998 Warburg Pincus Trust - 11.881095 12.420923 4.54% 0 1999 Value Portfolio - NQ(1) 10.000000 11.881095 18.81% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 217 220 OPTIONAL BENEFITS ELECTED (TOTAL 1.65%) (VARIABLE ACCOUNT CHARGES OF 1.65% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 12.498159 14.507084 16.07% 158 1999 Variable Portfolios, 10.000000 12.498159 24.98% 0 1998 Inc. - American Century VP Income & Growth - Q American Century 12.498159 14.507084 16.07% 0 1999 Variable Portfolios, 10.000000 12.498159 24.98% 0 1998 Inc. - American Century VP Income & Growth - NQ American Century 12.045328 19.434239 61.34% 160 1999 Variable Portfolios, 10.000000 12.045328 20.45% 0 1998 Inc. - American Century VP International - Q American Century 12.045328 19.434239 61.34% 24 1999 Variable Portfolios, 10.000000 12.045328 20.45% 0 1998 Inc. - American Century VP International - NQ American Century 11.264161 10.984159 -2.49% 113 1999 Variable Portfolios, 10.000000 11.264161 12.64% 0 1998 Inc. - American Century VP Value - Q American Century 11.264161 10.984159 -2.49% 0 1999 Variable Portfolios, 10.000000 11.264161 12.64% 0 1998 Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.874994 28.75% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.874994 28.75% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 12.767196 16.333747 27.94% 37 1999 Responsible Growth 10.000000 12.767196 27.67% 0 1998 Fund, Inc. - Q
218 221
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 12.767196 16.333747 27.94% 342 1999 Responsible Growth 10.000000 12.767196 27.67% 0 1998 Fund, Inc. - NQ Dreyfus Stock Index 12.446981 14.764046 18.62% 1,054 1999 Fund, Inc. - Q 10.000000 12.446981 24.47% 0 1998 Dreyfus Stock Index 12.446981 14.764046 18.62% 787 1999 Fund, Inc. - NQ 10.000000 12.446981 24.47% 0 1998 Dreyfus Variable 12.372807 13.562791 9.62% 75 1999 Investment Fund - 10.000000 12.372807 23.73% 0 1998 Appreciation Portfolio - - Q(1) Dreyfus Variable 12.372807 13.562791 9.62% 76 1999 Investment Fund - 10.000000 12.372807 23.73% 0 1998 Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.760781 -2.39% 0 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.760781 -2.39% 0 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 11.793413 12.324339 4.50% 312 1999 Equity-Income 10.000000 11.793413 17.93% 0 1998 Portfolio: Service Class - Q Fidelity VIP 11.793413 12.324339 4.50% 258 1999 Equity-Income 10.000000 11.793413 17.93% 0 1998 Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 219 222
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 12.896602 17.413426 35.02% 678 1999 Portfolio: Service 10.000000 12.896602 28.97% 0 1998 Class - Q Fidelity VIP Growth 12.896602 17.413426 35.02% 336 1999 Portfolio: Service 10.000000 12.896602 28.97% 0 1998 Class - NQ Fidelity VIP High 10.515966 11.177582 6.29% 0 1999 Income Portfolio: 10.000000 10.515966 5.16% 0 1998 Service Class - Q Fidelity VIP High 10.515966 11.177582 6.29% 0 1999 Income Portfolio: 10.000000 10.515966 5.16% 0 1998 Service Class - NQ Fidelity VIP Overseas 12.170445 17.052691 40.12% 0 1999 Portfolio: Service 10.000000 12.170445 21.70% 0 1998 Class - Q Fidelity VIP Overseas 12.170445 17.052691 40.12% 17 1999 Portfolio: Service 10.000000 12.170445 21.70% 0 1998 Class - NQ Fidelity VIP II 12.779434 15.603664 22.10% 357 1999 Contrafund(R)Portfolio: 10.000000 12.779434 27.79% 0 1998 Service Class - Q Fidelity VIP II 12.779434 15.603664 22.10% 381 1999 Contrafund(R)Portfolio: 10.000000 12.779434 27.79% 0 1998 Service Class - NQ Fidelity VIP III Growth 12.292450 12.595275 2.46% 307 1999 Opportunities 10.000000 12.292450 22.92% 0 1998 Portfolio: Service Class - Q Fidelity VIP III Growth 12.292450 12.595275 2.46% 109 1999 Opportunities 10.000000 12.292450 22.92% 0 1998 Portfolio: Service Class - NQ
220 223
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 12.422359 12.740010 2.56% 274 1999 Appreciation Fund - Q 10.000000 12.422359 24.22% 0 1998 NSAT Capital 12.422359 12.740010 2.56% 418 1999 Appreciation Fund - NQ 10.000000 12.422359 24.22% 0 1998 NSAT Government Bond 9.839387 9.449856 -3.96% 136 1999 Fund - Q 10.00000 9.839387 -1.61% 0 1998 NSAT Government Bond 9.839387 9.449856 -3.96% 0 1999 Fund - NQ 10.00000 9.839387 -1.61% 0 1998 NSAT Money Market Fund 10.081601 10.395950 3.12% 0 1999 - - Q* 10.000000 10.801601 0.82% 0 1998 NSAT Money Market Fund 10.081601 10.395950 3.12% 0 1999 - - NQ* 10.000000 10.801601 0.82% 0 1998 NSAT Total Return Fund 11.976682 12.596911 5.18% 495 1999 - - Q 10.000000 11.976682 19.77% 0 1998 NSAT Total Return Fund 11.976682 12.596911 5.18% 555 1999 - - NQ 10.000000 11.976682 19.77% 0 1998 NSAT Nationwide 10.662651 10.577794 -0.80% 60 1999 Balanced Fund - Q 10.000000 10.662651 6.63% 0 1998 NSAT Nationwide 10.662651 10.577794 -0.80% 274 1999 Balanced Fund - NQ 10.000000 10.662651 6.63% 0 1998
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.72%. 221 224
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 11.829585 13.786084 16.54% 0 1999 Income Fund - Q 10.000000 11.829585 18.30% 0 1998 NSAT Nationwide Equity 11.829585 13.786084 16.54% 0 1999 Income Fund - NQ 10.000000 11.829585 18.30% 0 1998 NSAT Nationwide Global 12.195325 14.743816 20.90% 0 1999 50 Fund - Q(1) 10.000000 12.195325 21.95% 0 1998 NSAT Nationwide Global 12.195325 14.743816 20.90% 0 1999 50 Fund - NQ(1) 10.000000 12.195325 21.95% 0 1998 NSAT Nationwide High 10.325454 10.479056 1.49% 0 1999 Income Bond Fund - Q 10.000000 10.325454 3.25% 0 1998 NSAT Nationwide High 10.325454 10.479056 1.49% 321 1999 Income Bond Fund - NQ 10.000000 10.325454 3.25% 0 1998 NSAT Nationwide Mid Cap 12.236869 14.553031 18.93% 0 1999 Index Fund-Q(2) 10.000000 12.236869 22.37% 0 1998 NSAT Nationwide Mid Cap 12.236869 14.553031 18.93% 0 1999 Index Fund- NQ(2) 10.000000 12.236869 22.37% 0 1998 NSAT Nationwide Multi 10.231592 10.219313 -0.12% 0 1999 Sector Bond Fund - Q 10.000000 10.231592 2.32% 0 1998 NSAT Nationwide Multi 10.231592 10.219313 -0.12% 10 1999 Sector Bond Fund - NQ 10.000000 10.231592 2.32% 0 1998
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 222 225
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.0000000 20.277316 102.77% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.0000000 20.277316 102.77% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 12.946409 16.277398 25.73% 0 1999 Cap Value Fund - Q 10.000000 12.946409 29.46% 0 1998 NSAT Nationwide Small 12.946409 16.277398 25.73% 0 1999 Cap Value Fund - NQ 10.000000 12.946409 29.46% 0 1998 NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999 Company Fund - Q 10.000000 12.106268 21.06% 0 1998 NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999 Company Fund - NQ 10.000000 12.106268 21.06% 0 1998 NSAT Nationwide 12.651185 22.988509 81.71% 0 1999 Strategic Growth Fund - 10.000000 12.651185 26.51% 0 1998 Q NSAT Nationwide 12.651185 22.988509 81.71% 146 1999 Strategic Growth Fund - NQ 10.000000 12.651185 26.51% 0 1998 NSAT Nationwide 13.010627 12.403079 -4.67% 0 1999 Strategic Value Fund - Q 10.000000 13.010627 30.11% 0 1998 NSAT Nationwide 13.010627 12.403079 -4.67% 195 1999 Strategic Value Fund - NQ 10.000000 13.010627 30.11% 0 1998
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 223 226
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 12.869170 14.547000 13.04% 0 1999 Guardian Portfolio - Q 10.000000 12.869170 28.69% 0 1998 Neuberger Berman AMT 12.869170 14.547000 13.04% 0 1999 Guardian Portfolio - NQ 10.000000 12.869170 28.69% 0 1998 Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999 Mid-Cap Growth 10.000000 14.058496 40.58% 0 1998 Portfolio - Q Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999 Mid-Cap Growth 10.000000 14.058496 40.58% 0 1998 Portfolio - NQ Neuberger Berman AMT 11.841583 12.504542 5.60% 0 1999 Partners Portfolio - Q 10.000000 11.841583 18.42% 0 1998 Neuberger Berman AMT 11.841583 12.504542 5.60% 274 1999 Partners Portfolio - NQ 10.000000 11.841583 18.42% 0 1998 Oppenheimer Variable 13.173548 23.789077 80.58% 31 1999 Account Funds - 10.000000 13.173548 31.74% 0 1998 Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 13.173548 23.789077 80.58% 284 1999 Account Funds - 10.000000 13.173548 31.74% 0 1998 Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 224 227
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 13.226671 18.427568 39.32% 235 1999 Account Funds - 10.000000 13.226671 32.27% 0 1998 Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 13.226671 18.427568 39.32% 205 1999 Account Funds - 10.000000 13.226671 32.27% 0 1998 Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 12.323541 14.751442 19.70% 38 1999 Account Funds - 10.000000 12.323541 23.24% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 12.323541 14.751442 19.70% 258 1999 Account Funds - 10.000000 12.323541 23.24% 0 1998 Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 11.379681 14.479873 27.24% 0 1999 Institutional Funds, 10.000000 11.379681 13.80% 0 1998 Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 11.379681 14.479873 27.24% 0 1999 Institutional Funds, 10.000000 11.379681 13.80% 0 1998 Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 12.616797 24.853443 96.99% 0 1999 Insurance Trust - 10.000000 12.616797 26.17% 0 1998 Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 225 228
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 12.616797 24.853443 96.99% 0 1999 Insurance Trust - 10.000000 12.616797 26.17% 0 1998 Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 9.904737 11.787279 19.01% 0 1999 Insurance Trust - 10.000000 9.904737 -0.95% 0 1998 Worldwide Hard Assets Fund - Q Van Eck Worldwide 9.904737 11.787279 19.01% 0 1999 Insurance Trust - 10.000000 9.904737 -0.95% 0 1998 Worldwide Hard Assets Fund - NQ Van Kampen Life 10.396873 9.880471 -4.97% 0 1999 Investment Trust - 10.000000 10.396873 3.97% 0 1998 Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.396873 9.880471 -4.97% 0 1999 Investment Trust - 10.000000 10.396873 3.97% 0 1998 Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 12.821248 20.617144 60.80% 0 1999 Global Post-Venture 10.000000 12.821248 28.21% 0 1998 Capital Portfolio - Q(1) Warburg Pincus Trust - 12.821248 20.617144 60.80% 23 1999 Global Post-Venture 10.000000 12.821248 28.21% 0 1998 Capital Portfolio - NQ(1) Warburg Pincus Trust - 11.535935 17.408242 50.90% 0 1999 International Equity 10.000000 11.535935 15.36% 0 1998 Portfolio - Q Warburg Pincus Trust - 11.535935 17.408242 50.90% 0 1999 International Equity 10.000000 11.535935 15.36% 0 1998 Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 226 229
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 11.879593 12.413046 4.49% 0 1999 Value Portfolio - Q(1) 10.000000 11.879593 18.80% 0 1998 Warburg Pincus Trust - 11.879593 12.413046 4.49% 0 1999 Value Portfolio - NQ(1) 10.000000 11.879593 18.80% 0 1998
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 227 230 OPTIONAL BENEFITS ELECTED (TOTAL 1.70%) (VARIABLE ACCOUNT CHARGES OF 1.70% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 10.000000 10.894734 8.95% 48 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - Q American Century 10.000000 10.894734 8.95% 101 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - NQ American Century 10.000000 15.314929 53.15% 0 1999 Variable Portfolios, Inc. - American Century VP International - Q American Century 10.000000 15.314929 53.15% 0 1999 Variable Portfolios, Inc. - American Century VP International - NQ American Century 10.000000 8.780117 -12.20% 0 1999 Variable Portfolios, Inc. - American Century VP Value - Q American Century 10.000000 8.780117 -12.20% 49 1999 Variable Portfolios, Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.873298 28.73% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.873298 28.73% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 10.000000 11.868131 18.68% 256 1999 Responsible Growth Fund, Inc. - Q
228 231
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 10.000000 11.868131 18.68% 19 1999 Responsible Growth Fund, Inc. - NQ Dreyfus Stock Index 10.000000 10.794215 7.94% 506 1999 Fund, Inc. - Q Dreyfus Stock Index 10.000000 10.794215 7.94% 144 1999 Fund, Inc. - NQ Dreyfus Variable 10.000000 10.184154 1.84% 584 1999 Investment Fund - Appreciation Portfolio - - Q(1) Dreyfus Variable 10.000000 10.184154 1.84% 38 1999 Investment Fund - Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.757496 -2.43% 0 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.757496 -2.43% 0 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 10.000000 9.309967 -6.90% 305 1999 Equity-Income Portfolio: Service Class - Q Fidelity VIP 10.000000 9.309967 -6.90% 46 1999 Equity-Income Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 229 232
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 10.000000 12.322268 23.22% 627 1999 Portfolio: Service Class - Q Fidelity VIP Growth 10.000000 12.322268 23.22% 150 1999 Portfolio: Service Class - NQ Fidelity VIP High 10.000000 9.672582 -3.27% 0 1999 Income Portfolio: Service Class - Q Fidelity VIP High 10.000000 9.672582 -3.27% 0 1999 Income Portfolio: Service Class - NQ Fidelity VIP Overseas 10.000000 13.058898 30.59% 0 1999 Portfolio: Service Class - Q Fidelity VIP Overseas 10.000000 13.058898 30.59% 0 1999 Portfolio: Service Class - NQ Fidelity VIP II 10.000000 11.278366 12.78% 89 1999 Contrafund(R)Portfolio: Service Class - Q Fidelity VIP II 10.000000 11.278366 12.78% 101 1999 Contrafund(R)Portfolio: Service Class - NQ Fidelity VIP III Growth 10.000000 9.869824 -1.30% 122 1999 Opportunities Portfolio: Service Class - Q Fidelity VIP III Growth 10.000000 9.869824 -1.30% 0 1999 Opportunities Portfolio: Service Class - NQ
230 233
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 10.000000 9.707627 -2.92% 0 1999 Appreciation Fund - Q NSAT Capital 10.000000 9.707627 -2.92% 42 1999 Appreciation Fund - NQ NSAT Government Bond 10.000000 9.735132 -2.65% 0 1999 Fund - Q NSAT Government Bond 10.000000 9.735132 -2.65% 0 1999 Fund - NQ NSAT Money Market Fund 10.000000 10.209430 2.09% 0 1999 - - Q* NSAT Money Market Fund 10.000000 10.209430 2.09% 599 1999 - - NQ* NSAT Total Return Fund 10.000000 9.851989 -1.48% 298 1999 - - Q NSAT Total Return Fund 10.000000 9.851989 -1.48% 146 1999 - - NQ NSAT Nationwide 10.000000 9.481422 -5.19% 77 1999 Balanced Fund - Q NSAT Nationwide 10.000000 9.481422 -5.19% 0 1999 Balanced Fund - NQ
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.67%. 231 234
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 10.000000 10.778958 7.79% 0 1999 Income Fund - Q NSAT Nationwide Equity 10.000000 10.778958 7.79% 102 1999 Income Fund - NQ NSAT Nationwide Global 10.000000 11.182210 11.82% 0 1999 50 Fund - Q(1) NSAT Nationwide Global 10.000000 11.182210 11.82% 0 1999 50 Fund - NQ(1) NSAT Nationwide High 10.000000 9.676620 -3.23% 0 1999 Income Bond Fund - Q NSAT Nationwide High 10.000000 9.676620 -3.23% 0 1999 Income Bond Fund - NQ NSAT Nationwide Mid Cap 10.000000 11.447800 14.48% 0 1999 Index Fund-Q(2) NSAT Nationwide Mid Cap 10.000000 11.447800 14.48% 0 1999 Index Fund- NQ(2) NSAT Nationwide Multi 10.000000 9.897603 -1.02% 0 1999 Sector Bond Fund - Q NSAT Nationwide Multi 10.000000 9.897603 -1.02% 0 1999 Sector Bond Fund - NQ
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 232 235
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.270503 102.71% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.270503 102.71% 12 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 10.000000 11.697140 16.97% 0 1999 Cap Value Fund - Q NSAT Nationwide Small 10.000000 11.697140 16.97% 20 1999 Cap Value Fund - NQ NSAT Nationwide Small 10.000000 14.124755 41.25% 0 1999 Company Fund - Q NSAT Nationwide Small 10.000000 14.124755 41.25% 0 1999 Company Fund - NQ NSAT Nationwide 10.000000 14.658438 46.58% 5 1999 Strategic Growth Fund - Q NSAT Nationwide 10.000000 14.658438 46.58% 121 1999 Strategic Growth Fund - NQ NSAT Nationwide 10.000000 8.548175 14.52% 0 1999 Strategic Value Fund - Q NSAT Nationwide 10.000000 8.548175 14.52% 0 1999 Strategic Value Fund - NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 233 236
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 10.000000 9.968645 -0.31% 0 1999 Guardian Portfolio - Q Neuberger Berman AMT 10.000000 9.968645 -0.31% 22 1999 Guardian Portfolio - NQ Neuberger Berman AMT 10.000000 15.26119 52.64% 19 1999 Mid-Cap Growth Portfolio - Q Neuberger Berman AMT 10.000000 15.26119 52.64% 99 1999 Mid-Cap Growth Portfolio - NQ Neuberger Berman AMT 10.000000 9.504551 -4.95% 0 1999 Partners Portfolio - Q Neuberger Berman AMT 10.000000 9.504551 -4.95% 23 1999 Partners Portfolio - NQ Oppenheimer Variable 10.000000 16.070617 60.71% 429 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 10.000000 16.070617 60.71% 15 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 234 237
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 10.000000 12.759449 27.59% 485 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 10.000000 12.759449 27.59% 118 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 10.000000 10.784586 7.85% 0 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 10.000000 10.784586 7.85% 0 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 10.000000 11.210825 12.11% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 10.000000 11.210825 12.11% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 10.0000000 15.596564 55.97% 0 1999 Insurance Trust - Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 235 238
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 10.0000000 15.596564 55.97% 16 1999 Insurance Trust - Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 10.000000 9.987144 -0.13% 0 1999 Insurance Trust - Worldwide Hard Assets Fund - Q Van Eck Worldwide 10.000000 9.987144 -0.13% 23 1999 Insurance Trust - Worldwide Hard Assets Fund - NQ Van Kampen Life 10.000000 9.012565 -9.87% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.000000 9.012565 -9.87% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 10.000000 15.621586 56.22% 0 1999 Global Post-Venture Capital Portfolio - Q(1) Warburg Pincus Trust - 10.000000 15.621586 56.22% 0 1999 Global Post-Venture Capital Portfolio - NQ(1) Warburg Pincus Trust - 10.000000 14.650223 46.50% 0 1999 International Equity Portfolio - Q Warburg Pincus Trust - 10.000000 14.650223 46.50% 0 1999 International Equity Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 236 239
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 10.000000 9.340613 -6.59% 0 1999 Value Portfolio - Q(1) Warburg Pincus Trust - 10.000000 9.340613 -6.59% 125 1999 Value Portfolio - NQ(1)
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 237 240 OPTIONAL BENEFITS ELECTED (TOTAL 1.75%) (VARIABLE ACCOUNT CHARGES OF 1.75% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 10.000000 10.891060 8.91% 375 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - Q American Century 10.000000 10.891060 8.91% 0 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - NQ American Century 10.000000 15.309779 53.10% 0 1999 Variable Portfolios, Inc. - American Century VP International - Q American Century 10.000000 15.309779 53.10% 0 1999 Variable Portfolios, Inc. - American Century VP International - NQ American Century 10.000000 8.777154 -12.23% 132 1999 Variable Portfolios, Inc. - American Century VP Value - Q American Century 10.000000 8.777154 -12.23% 0 1999 Variable Portfolios, Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.871598 28.72% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.871598 28.72% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 10.000000 11.864126 18.64% 194 1999 Responsible Growth Fund, Inc. - Q
238 241
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 10.000000 11.864126 18.64% 0 1999 Responsible Growth Fund, Inc. - NQ Dreyfus Stock Index 10.000000 10.790571 7.91% 820 1999 Fund, Inc. - Q Dreyfus Stock Index 10.000000 10.790571 7.91% 0 1999 Fund, Inc. - NQ Dreyfus Variable 10.000000 10.180717 1.81% 192 1999 Investment Fund - Appreciation Portfolio - - Q(1) Dreyfus Variable 10.000000 10.180717 1.81% 0 1999 Investment Fund - Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.754195 -2.46% 0 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.754195 -2.46% 0 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 10.000000 9.306820 -6.93% 0 1999 Equity-Income Portfolio: Service Class - Q Fidelity VIP 10.000000 9.306820 -6.93% 0 1999 Equity-Income Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 239 242
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 10.000000 12.318116 23.18% 205 1999 Portfolio: Service Class - Q Fidelity VIP Growth 10.000000 12.318116 23.18% 0 1999 Portfolio: Service Class - NQ Fidelity VIP High 10.000000 9.669314 -3.31% 0 1999 Income Portfolio: Service Class - Q Fidelity VIP High 10.000000 9.669314 -3.31% 0 1999 Income Portfolio: Service Class - NQ Fidelity VIP Overseas 10.000000 13.054491 30.54% 0 1999 Portfolio: Service Class - Q Fidelity VIP Overseas 10.000000 13.054491 30.54% 0 1999 Portfolio: Service Class - NQ Fidelity VIP II 10.000000 11.274564 12.75% 153 1999 Contrafund(R) Portfolio: Service Class - Q Fidelity VIP II 10.000000 11.274564 12.75% 118 1999 Contrafund(R) Portfolio: Service Class - NQ Fidelity VIP III Growth 10.000000 9.866489 -1.34% 133 1999 Opportunities Portfolio: Service Class - Q Fidelity VIP III Growth 10.000000 9.866489 -1.34% 0 1999 Opportunities Portfolio: Service Class - NQ
240 243
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 10.000000 9.704353 -2.96% 0 1999 Appreciation Fund - Q NSAT Capital 10.000000 9.704353 -2.96% 0 1999 Appreciation Fund - NQ NSAT Government Bond 10.000000 9.731842 -2.68% 235 1999 Fund - Q NSAT Government Bond 10.000000 9.731842 -2.68% 0 1999 Fund - NQ NSAT Money Market Fund 10.00000 10.205942 2.06% 0 1999 - - Q* NSAT Money Market Fund 10.00000 10.205942 2.06% 0 1999 - - NQ* NSAT Total Return Fund 10.000000 9.848668 -1.51% 0 1999 - - Q NSAT Total Return Fund 10.000000 9.848668 -1.51% 81 1999 - - NQ NSAT Nationwide 10.000000 9.478218 -5.22% 0 1999 Balanced Fund - Q NSAT Nationwide 10.000000 9.478218 -5.22% 0 1999 Balanced Fund - NQ
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.62%. 241 244
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 10.000000 10.775320 7.75% 191 1999 Income Fund - Q NSAT Nationwide Equity 10.000000 10.775320 7.75% 0 1999 Income Fund - NQ NSAT Nationwide Global 10.000000 11.178438 11.78% 0 1999 50 Fund - Q(1) NSAT Nationwide Global 10.000000 11.178438 11.78% 0 1999 50 Fund - NQ(1) NSAT Nationwide High 10.000000 9.673363 -3.27% 0 1999 Income Bond Fund - Q NSAT Nationwide High 10.000000 9.673363 -3.27% 0 1999 Income Bond Fund - NQ NSAT Nationwide Mid Cap 10.000000 11.443936 14.44% 0 1999 Index Fund-Q(2) NSAT Nationwide Mid Cap 10.000000 11.443936 14.44% 0 1999 Index Fund- NQ(2) NSAT Nationwide Multi 10.000000 9.894260 -1.06% 0 1999 Sector Bond Fund - Q NSAT Nationwide Multi 10.000000 9.894260 -1.06% 0 1999 Sector Bond Fund - NQ
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 242 245
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.263696 102.64% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.263696 102.64% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 10.000000 11.693190 16.93% 0 1999 Cap Value Fund - Q NSAT Nationwide Small 10.000000 11.693190 16.93% 0 1999 Cap Value Fund - NQ NSAT Nationwide Small 10.000000 14.120006 41.20% 0 1999 Company Fund - Q NSAT Nationwide Small 10.000000 14.120006 41.20% 0 1999 Company Fund - NQ NSAT Nationwide 10.000000 14.653509 46.54% 0 1999 Strategic Growth Fund - Q NSAT Nationwide 10.000000 14.653509 46.54% 0 1999 Strategic Growth Fund - NQ NSAT Nationwide 10.000000 8.545293 -14.55% 0 1999 Strategic Value Fund - Q NSAT Nationwide 10.000000 8.545293 -14.55% 0 1999 Strategic Value Fund - NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 243 246
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 10.000000 9.965276 -0.35% 0 1999 Guardian Portfolio - Q Neuberger Berman AMT 10.000000 9.965276 -0.35% 0 1999 Guardian Portfolio - NQ Neuberger Berman AMT 10.000000 15.258987 52.59% 0 1999 Mid-Cap Growth Portfolio - Q Neuberger Berman AMT 10.000000 15.258987 52.59% 0 1999 Mid-Cap Growth Portfolio - NQ Neuberger Berman AMT 10.000000 9.501339 -4.99% 0 1999 Partners Portfolio - Q Neuberger Berman AMT 10.000000 9.501339 -4.99% 0 1999 Partners Portfolio - NQ Oppenheimer Variable 10.000000 16.065210 60.65% 0 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 10.000000 16.065210 60.65% 0 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 244 247
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 10.000000 12.755147 27.55% 183 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 10.000000 12.755147 27.55% 0 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 10.000000 10.780952 7.81% 41 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 10.000000 10.780952 7.81% 0 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 10.000000 11.207054 12.07% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 10.000000 11.207054 12.07% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 10.000000 15.591319 55.91% 0 1999 Insurance Trust - Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 245 248
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 10.000000 15.591319 55.91% 0 1999 Insurance Trust - Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 10.000000 9.983781 -0.16% 0 1999 Insurance Trust - Worldwide Hard Assets Fund - Q Van Eck Worldwide 10.000000 9.983781 -0.16% 0 1999 Insurance Trust - Worldwide Hard Assets Fund - NQ Van Kampen Life 10.000000 9.009528 -9.90% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.000000 9.009528 -9.90% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 10.000000 15.616326 56.16% 0 1999 Global Post-Venture Capital Portfolio - Q(1) Warburg Pincus Trust - 10.000000 15.616326 56.16% 0 1999 Global Post-Venture Capital Portfolio - NQ(1) Warburg Pincus Trust - 10.000000 14.645295 46.45% 0 1999 International Equity Portfolio - Q Warburg Pincus Trust - 10.000000 14.645295 46.45% 0 1999 International Equity Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 246 249
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 10.000000 9.337456 -6.63% 53 1999 Value Portfolio - Q(1) Warburg Pincus Trust - 10.000000 9.337456 -6.63% 0 1999 Value Portfolio - NQ(1)
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were ad ded to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 247 250 OPTIONAL BENEFITS ELECTED (TOTAL 1.80%) (VARIABLE ACCOUNT CHARGES OF 1.80% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- American Century 10.000000 10.887381 8.87% 0 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - Q American Century 10.000000 10.887381 8.87% 0 1999 Variable Portfolios, Inc. - American Century VP Income & Growth - NQ American Century 10.000000 15.304624 53.05% 0 1999 Variable Portfolios, Inc. - American Century VP International - Q American Century 10.000000 15.304624 53.05% 0 1999 Variable Portfolios, Inc. - American Century VP International - NQ American Century 10.000000 8.774191 -12.26% 0 1999 Variable Portfolios, Inc. - American Century VP Value - Q American Century 10.000000 8.774191 -12.26% 0 1999 Variable Portfolios, Inc. - American Century VP Value - NQ Dreyfus Investment 10.000000 12.869896 28.70% 0 1999 Portfolios - European Equity Portfolio - Q Dreyfus Investment 10.000000 12.869896 28.70% 0 1999 Portfolios - European Equity Portfolio - NQ The Dreyfus Socially 10.000000 11.860138 18.60% 0 1999 Responsible Growth Fund, Inc. - Q
248 251
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- The Dreyfus Socially 10.000000 11.860138 18.60% 0 1999 Responsible Growth Fund, Inc. - NQ Dreyfus Stock Index 10.000000 10.786928 7.87% 23 1999 Fund, Inc. - Q Dreyfus Stock Index 10.000000 10.786928 7.87% 0 1999 Fund, Inc. - NQ Dreyfus Variable 10.000000 10.177277 1.77% 0 1999 Investment Fund - Appreciation Portfolio - - Q(1) Dreyfus Variable 10.000000 10.177277 1.77% 0 1999 Investment Fund - Appreciation Portfolio - - NQ(1) Federated Insurance 10.000000 9.750926 -2.49% 0 1999 Series - Federated Quality Bond Fund II - Q Federated Insurance 10.000000 9.750926 -2.49% 0 1999 Series - Federated Quality Bond Fund II - NQ Fidelity VIP 10.000000 9.303685 -6.96% 0 1999 Equity-Income Portfolio: Service Class - Q Fidelity VIP 10.000000 9.303685 -6.96% 0 1999 Equity-Income Portfolio: Service Class - NQ
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio. 249 252
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Fidelity VIP Growth 10.000000 12.313961 23.14% 48 1999 Portfolio: Service Class - Q Fidelity VIP Growth 10.000000 12.313961 23.14% 0 1999 Portfolio: Service Class - NQ Fidelity VIP High 10.000000 9.666051 -3.34% 0 1999 Income Portfolio: Service Class - Q Fidelity VIP High 10.000000 9.666051 -3.34% 0 1999 Income Portfolio: Service Class - NQ Fidelity VIP Overseas 10.000000 13.050088 30.50% 0 1999 Portfolio: Service Class - Q Fidelity VIP Overseas 10.000000 13.050088 30.50% 0 1999 Portfolio: Service Class - NQ Fidelity VIP II 10.000000 11.270766 12.71% 0 1999 Contrafund(R) Portfolio: Service Class - Q Fidelity VIP II 10.000000 11.270766 12.71% 0 1999 Contrafund(R) Portfolio: Service Class - NQ Fidelity VIP III Growth 10.000000 9.863165 -1.37% 0 1999 Opportunities Portfolio: Service Class - Q Fidelity VIP III Growth 10.000000 9.863165 -1.37% 0 1999 Opportunities Portfolio: Service Class - NQ
250 253
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Capital 10.000000 9.701077 -2.99% 0 1999 Appreciation Fund - Q NSAT Capital 10.000000 9.701077 -2.99% 0 1999 Appreciation Fund - NQ NSAT Government Bond 10.000000 9.728561 -2.71% 0 1999 Fund - Q NSAT Government Bond 10.000000 9.728561 -2.71% 0 1999 Fund - NQ NSAT Money Market Fund 10.000000 10.202456 2.02% 0 1999 - - Q* NSAT Money Market Fund 10.000000 10.202456 2.02% 0 1999 - - NQ* NSAT Total Return Fund 10.000000 9.845340 -1.55% 30 1999 - - Q NSAT Total Return Fund 10.000000 9.845340 -1.55% 0 1999 - - NQ NSAT Nationwide 10.000000 9.475017 -5.25% 0 1999 Balanced Fund - Q NSAT Nationwide 10.000000 9.475017 -5.25% 0 1999 Balanced Fund - NQ
*The 7-day yield for the NSAT Money Market Fund as of December 31, 1999 was 3.57%. 251 254
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Equity 10.000000 10.771674 7.72% 0 1999 Income Fund - Q NSAT Nationwide Equity 10.000000 10.771674 7.72% 0 1999 Income Fund - NQ NSAT Nationwide Global 10.000000 11.174665 11.75% 0 1999 50 Fund - Q(1) NSAT Nationwide Global 10.000000 11.174665 11.75% 0 1999 50 Fund - NQ(1) NSAT Nationwide High 10.000000 9.670105 -3.30% 0 1999 Income Bond Fund - Q NSAT Nationwide High 10.000000 9.670105 -3.30% 0 1999 Income Bond Fund - NQ NSAT Nationwide Mid Cap 10.000000 11.440076 14.40% 0 1999 Index Fund-Q(2) NSAT Nationwide Mid Cap 10.000000 11.440076 14.40% 0 1999 Index Fund- NQ(2) NSAT Nationwide Multi 10.000000 9.890927 -1.09% 0 1999 Sector Bond Fund - Q NSAT Nationwide Multi 10.000000 9.890927 -1.09% 0 1999 Sector Bond Fund - NQ
(1) Formerly, NSAT Nationwide Global Equity Fund. (2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund. 252 255
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- NSAT Nationwide Small 10.000000 20.256891 102.57% 0 1999 Cap Growth Fund - Q(1) NSAT Nationwide Small 10.000000 20.256891 102.57% 0 1999 Cap Growth Fund - NQ(1) NSAT Nationwide Small 10.000000 11.689250 16.89% 0 1999 Cap Value Fund - Q NSAT Nationwide Small 10.000000 11.689250 16.89% 0 1999 Cap Value Fund - NQ NSAT Nationwide Small 10.000000 14.115240 41.15% 0 1999 Company Fund - Q NSAT Nationwide Small 10.000000 14.115240 41.15% 0 1999 Company Fund - NQ NSAT Nationwide 10.000000 14.648576 46.49% 0 1999 Strategic Growth Fund - Q NSAT Nationwide 10.000000 14.648576 46.49% 0 1999 Strategic Growth Fund - NQ NSAT Nationwide 10.000000 8.542404 -14.58% 0 1999 Strategic Value Fund - Q NSAT Nationwide 10.000000 8.542404 -14.58% 0 1999 Strategic Value Fund - NQ
(1) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund. 253 256
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Neuberger Berman AMT 10.000000 9.961920 -0.38% 0 1999 Guardian Portfolio - Q Neuberger Berman AMT 10.000000 9.961920 -0.38% 0 1999 Guardian Portfolio - NQ Neuberger Berman AMT 10.000000 15.253837 52.54% 0 1999 Mid-Cap Growth Portfolio - Q Neuberger Berman AMT 10.000000 15.253837 52.54% 0 1999 Mid-Cap Growth Portfolio - NQ Neuberger Berman AMT 10.000000 9.498133 -5.02% 0 1999 Partners Portfolio - Q Neuberger Berman AMT 10.000000 9.498133 -5.02% 0 1999 Partners Portfolio - NQ Oppenheimer Variable 10.000000 16.059802 60.60% 0 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - Q(1) Oppenheimer Variable 10.000000 16.059802 60.60% 0 1999 Account Funds - Oppenheimer Aggressive Growth Fund/VA - NQ(1)
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund. 254 257
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Oppenheimer Variable 10.000000 12.750840 27.51% 0 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - Q(1) Oppenheimer Variable 10.000000 12.750840 27.51% 0 1999 Account Funds - Oppenheimer Capital Appreciation Fund/VA - NQ(1) Oppenheimer Variable 10.000000 10.777319 7.77% 0 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - Q(2) Oppenheimer Variable 10.000000 10.777319 7.77% 0 1999 Account Funds - Oppenheimer Main Street Growth & Income Fund/VA - - NQ(2) The Universal 10.000000 11.203280 12.03% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - Q(3) The Universal 10.000000 11.203280 12.03% 0 1999 Institutional Funds, Inc. - Emerging Markets Debt Portfolio - NQ(3) Van Eck Worldwide 10.0000000 15.586071 55.86% 0 1999 Insurance Trust - Worldwide Emerging Markets Fund - Q
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund. (2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income Fund. (3) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets Debt Portfolio. 255 258
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Van Eck Worldwide 10.0000000 15.586071 55.86% 0 1999 Insurance Trust - Worldwide Emerging Markets Fund - NQ Van Eck Worldwide 10.000000 9.980406 -0.20% 0 1999 Insurance Trust - Worldwide Hard Assets Fund - Q Van Eck Worldwide 10.000000 9.980406 -0.20% 0 1999 Insurance Trust - Worldwide Hard Assets Fund - NQ Van Kampen Life 10.000000 9.006481 -9.94% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - Q Van Kampen Life 10.000000 9.006481 -9.94% 0 1999 Investment Trust - Morgan Stanley Real Estate Securities Portfolio - NQ Warburg Pincus Trust - 10.000000 15.611071 56.11% 0 1999 Global Post-Venture Capital Portfolio - Q(1) Warburg Pincus Trust - 10.000000 15.611071 56.11% 0 1999 Global Post-Venture Capital Portfolio - NQ(1) Warburg Pincus Trust - 10.000000 14.640370 46.40% 0 1999 International Equity Portfolio - Q Warburg Pincus Trust - 10.000000 14.640370 46.40% 0 1999 International Equity Portfolio - NQ
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio. 256 259
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENT CHANGE IN NUMBER OF YEAR VALUE AT VALUE AT END OF ACCUMULATION UNIT ACCUMULATION BEGINNING OF PERIOD VALUE UNITS AT END OF PERIOD PERIOD - ---------------------- ----------------- ----------------- ------------------ --------------- ---- Warburg Pincus Trust - 10.000000 9.334304 -6.66% 0 1999 Value Portfolio - Q(1) Warburg Pincus Trust - 10.000000 9.334304 -6.66% 0 1999 Value Portfolio - NQ(1)
(1) Formerly, Warburg Pincus Trust - Growth & Income Portfolio. Contracts were first available October 27, 1997. Therefore, the Condensed Financial Information reflects the period from October 27, 1997 to December 31, 1997. The Federated Insurance Series - Federated Quality Bond Fund II and NSAT Nationwide Small Cap Growth Fund were added to the variable account May 1, 1999. Therefore, the Condensed Financial Information reflects the period from May 1, 1999 to December 31, 1999. The Dreyfus Investment Portfolios - European Equity Portfolio was added to the variable account September 27, 1999. Therefore, the Condensed Financial Information reflects the period from September 27, 1999 to December 31, 1999. The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen Series - International Growth Portfolio: Service Shares were added to the variable account effective January 27, 2000. Therefore, no Condensed Financial Information is available. The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA, Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. - Mid Cap Portfolio were added to the variable account effective May 1, 2000. Therefore, no Condensed Financial Information is available. 257 260 STATEMENT OF ADDITIONAL INFORMATION MAY 1, 2000 MODIFIED SINGLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS ISSUED BY NATIONWIDE LIFE INSURANCE COMPANY THROUGH ITS NATIONWIDE VARIABLE ACCOUNT-9 This Statement of Additional Information is not a prospectus. It contains information in addition to and more detailed than set forth in the prospectus and should be read in conjunction with the prospectus dated May 1, 2000. The prospectus may be obtained from Nationwide Life Insurance Company by writing One Nationwide Plaza, 01-05-P1, Columbus, Ohio 43215, or calling 1-800-848-6331, TDD 1-800-238-3035. TABLE OF CONTENTS
PAGE ---- General Information and History................................................................................... 1 Services.......................................................................................................... 1 Purchase of Securities Being Offered.............................................................................. 2 Underwriters...................................................................................................... 2 Calculations of Performance....................................................................................... 2 Annuity Payments.................................................................................................. 3 Financial Statements.............................................................................................. 4
GENERAL INFORMATION AND HISTORY The Nationwide Variable Account-9 is a separate investment account of Nationwide Life Insurance Company ("Nationwide"). All of Nationwide's common stock is owned by Nationwide Financial Services, Inc. ("NFS"), a holding company. NFS has two classes of common stock outstanding with different voting rights enabling Nationwide Corporation (the holder of all of the outstanding Class B Common Stock) to control NFS. Nationwide Corporation is a holding company, as well. All of its common stock is held by Nationwide Mutual Insurance Company (95.24%) and Nationwide Mutual Fire Insurance Company (4.76%), the ultimate controlling persons of Nationwide group of companies. The Nationwide group of companies is one of America's largest insurance and financial services family of companies, with combined assets of over $120 billion as of December 31, 1999. SERVICES Nationwide, which has responsibility for administration of the contracts and the variable account, maintains records of the name, address, taxpayer identification number, and other pertinent information for each contract owner and the number and type of contract issued to each contract owner and records with respect to the contract value. The custodian of the assets of the variable account is Nationwide. Nationwide will maintain a record of all purchases and redemptions of shares of the underlying mutual funds. Nationwide, or affiliates of Nationwide, may have entered into agreements with either the investment adviser or distributor for the underlying mutual funds. The agreements relate to administrative services furnished by Nationwide or an affiliate of Nationwide and provide for an annual fee based on the average aggregate net assets of the variable account (and other separate accounts of Nationwide or life insurance company subsidiaries of Nationwide) invested in particular underlying mutual funds. These fees in no way affect the net asset value of the underlying mutual funds or fees paid by the contract owner. 1 261 The audited financial statements have been included herein in reliance upon the reports of KPMG LLP, independent certified public accountants, Two Nationwide Plaza, Columbus, Ohio 43215, and upon the authority of said firm as experts in accounting and auditing. PURCHASE OF SECURITIES BEING OFFERED The contracts will be sold by licensed insurance agents in the states where the contracts may be lawfully sold. Such agents will be registered representatives of broker-dealers registered under the Securities Exchange Act of 1934 who are members of the National Association of Securities Dealers, Inc. ("NASD"). UNDERWRITERS The contracts, which are offered continuously, are distributed by Nationwide Investment Services Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio 43215, a wholly owned subsidiary of Nationwide. During the fiscal years ended December 31, 1999, 1998 and 1997, no underwriting commissions were paid by Nationwide to NISC. CALCULATIONS OF PERFORMANCE Any current yield quotations of the NSAT Money Market Fund, subject to Rule 482 of the Securities Act of 1933, will consist of a seven calendar day historical yield, carried at least to the nearest hundredth of a percent. The yield will be calculated by determining the net change, exclusive of capital changes, in the value of a hypothetical pre-existing account having a balance of one accumulation unit at the beginning of the base period, subtracting a hypothetical charge reflecting deductions from contract owner accounts, and dividing the net change in account value by the value of the account at the beginning of the period to obtain a base period return, and multiplying the base period return by (365/7) or (366/7) in a leap year. The NSAT Money Market Fund's seven-day current unit value yield for the maximum number of options available as of December 31, 1999 (2.65%) was 2.71%. The NSAT Money Market Fund's effective yield is computed similarly, but includes the effect of assumed compounding on an annualized basis of the current unit value yield quotations of the NSAT Money Market Fund. The NSAT Money Market Fund's seven-day effective yield for the maximum number of options available as of December 31, 1999 (2.65%) was 2.76%. The NSAT Money Market Fund's yield and effective yield will fluctuate daily. Actual yields will depend on factors such as the type of instruments in the fund's portfolio, portfolio quality and average maturity, changes in interest rates, and the fund's expenses. Although the NSAT Money Market Fund determines its yield on the basis of a seven day period, it may use a different time period on occasion. The yield quotes may reflect the expense limitation described "Investment Manager and Other Services" in the NSAT Money Market Fund's Statement of Additional Information. There is no assurance that the yields quoted on any given occasion will remain in effect for any period of time and there is no guarantee that the net asset values will remain constant. It should be noted that a contract owner's investment in the NSAT Money Market Fund is not guaranteed or insured. Yields of other money market funds may not be comparable if a different base period or another method of calculation is used. All performance advertising will include quotations of standardized average annual total return, calculated in accordance with a standard method prescribed by rules of the SEC. Standardized average annual return is found by taking a hypothetical $1,000 investment in each of the sub-accounts' units on the first day of the period at the offering price, which is the accumulation unit value per unit ("initial investment") and computing the ending redeemable value ("redeemable value") of that investment at the end of the period. The redeemable value is then divided by the initial investment and this quotient is taken to the Nth root (N represents the number of years in the period) and 1 is subtracted from the result which is then expressed as a percentage, carried to at least the nearest hundredth of a percent. 2 262 Standardized average annual total return reflects the deduction of a the standard 7 year CDSC schedule and the deduction of all charges that could be made to a contract if all available options were chosen as of December 31, 1999 (2.70%), except for premium taxes, which may be imposed by certain states. Nonstandardized total return may also be advertised, and is calculated in a manner similar to standardized average annual total return except the nonstandardized total return is based on a hypothetical initial investment of $25,000 and the deduction of charges for the base contract (0.95%). An assumed initial investment of $25,000 will be used because that figure more closely approximates the size of a typical Contract than does the $1,000 figure used in calculating the standardized average annual total return quotations. The standardized average annual total return and nonstandardized average annual total return quotations will be current to the last day of the calendar quarter preceding the date on which an advertisement is submitted for publication. The standardized average annual return will be based on rolling calendar quarters and will cover periods of one, five, and ten years, or a period covering the time the underlying mutual fund has been available in the variable account if the underlying mutual fund has not been available for one of the prescribed periods. Nonstandardized average annual total return will based on rolling calendar quarters and will cover periods of one, five and ten years, or a period covering the time the underlying mutual fund has been in existence. If the underlying mutual fund has been available in the variable account for less than one year (or if the underlying mutual fund has been effective for less than one year), standardized and non-standardized performance is not annualized. Quotations of average annual total return and total return are based upon historical earnings and will fluctuate. Any quotation of performance, is not a guarantee of future performance. Factors affecting a sub-account's performance include general market conditions, operating expenses and investment management. A contract owner's account when redeemed may be more or less than the original cost. ANNUITY PAYMENTS See "Frequency and Amount of Annuity Payments" located in the prospectus. 3 263 1 INDEPENDENT AUDITOR'S REPORT ---------------------------- The Board of Directors of Nationwide Life Insurance Company and Contract Owners of Nationwide Variable Account-9: We have audited the accompanying statement of assets, liabilities and contract owners' equity of Nationwide Variable Account-9 (comprised of the sub-accounts listed in note 1(b)) (collectively, "the Account") as of December 31, 1999, and the related statements of operations and changes in contract owners' equity for each of the years in the two year period then ended. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1999, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Account as of December 31, 1999, and the results of its operations and its changes in contract owners' equity for each of the years in the two year period then ended in conformity with generally accepted accounting principles. KPMG LLP Columbus, Ohio February 18, 2000 - -------------------------------------------------------------------------------- 2 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY DECEMBER 31, 1999
ASSETS: Investments at market value: American Century VP - American Century VP Income & Growth (ACVPIncGr) 20,470,398 shares (cost $141,129,469) ........................................................... $ 163,763,182 American Century VP - American Century VP International (ACVPInt) 15,635,412 shares (cost $148,085,984) ........................................................... 195,442,653 American Century VP - American Century VP Value (ACVPValue) 6,446,407 shares (cost $41,615,144) ............................................................. 38,356,121 The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro) 4,265,200 shares (cost $141,396,097) ............................................................ 166,641,352 Dreyfus Stock Index Fund (DryStkIx) 24,176,958 shares (cost $793,412,609) ........................................................... 929,604,033 Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp) 4,147,534 shares (cost $150,423,775) ............................................................ 165,362,188 Dreyfus VIF - European Equities Fund (DryEuroEq) 133,706 shares (cost $1,933,535) ................................................................ 2,133,956 Federated Insurance Series: Federated Quality Bond Fund II (FedQualBd) 759,896 shares (cost $7,462,701) ................................................................ 7,446,981 Fidelity VIP - Equity-Income Portfolio - Service Class (FidVIPEIS) 14,110,995 shares (cost $352,931,972) ........................................................... 362,088,135 Fidelity VIP - Growth Portfolio - Service Class (FidVIPGrS) 11,101,677 shares (cost $493,273,277) ........................................................... 608,371,923 Fidelity VIP - High Income Portfolio - Service Class (FidVIPHIS) 17,406,110 shares (cost $194,757,686) ........................................................... 196,340,922 Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOvS) 3,376,287 shares (cost $81,315,398) ............................................................. 92,442,726 Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVIPConS) 14,598,621 shares (cost $348,059,935) ........................................................... 424,819,872 Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVIPGrOpS) 8,997,661 shares (cost $195,437,600) ............................................................ 208,025,933 Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt) 971,414 shares (cost $6,883,230) ................................................................ 6,712,471 Nationwide SAT - Balanced Fund (NSATBal) 7,167,334 shares (cost $75,886,829) ............................................................. 73,895,215 Nationwide SAT - Capital Appreciation Fund (NSATCapAp) 13,299,689 shares (cost $344,987,726) ........................................................... 341,934,999 Nationwide SAT - Equity Income Fund (NSATEqInc) 1,987,264 shares (cost $22,714,475) ............................................................. 26,887,677 Nationwide SAT - Global Equity Fund (NSATGlobEq) 2,671,214 shares (cost $31,808,533) ............................................................. 37,103,163 Nationwide SAT - Government Bond Fund (NSATGvtBd) 22,403,002 shares (cost $256,706,042) ........................................................... 241,728,393 Nationwide SAT - High Income Bond Fund (NSATHIncBd) 5,245,585 shares (cost $52,509,200) ............................................................. 49,937,971 Nationwide SAT - Money Market Fund (NSATMyMkt) 409,469,490 shares (cost $490,469,490) .......................................................... 409,469,490 Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd) 6,330,981 shares (cost $61,931,231) ............................................................. 59,321,292
3
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap) 1,196,560 shares (cost $13,198,495) ............................................................. 14,741,624 Nationwide SAT - Select Advisors Small Cap Growth Fund (NSATSmCapG) 723,847 shares (cost $10,978,328) ............................................................... 14,252,550 Nationwide SAT - Small Cap Value Fund (NSATSmCapV) 7,095,348 shares (cost $71,255,676) ............................................................. 68,966,784 Nationwide SAT - Small Company Fund (NSATSmCo) 4,613,567 shares (cost $85,795,793) ............................................................. 102,052,097 Nationwide SAT - Strategic Growth Fund (NSATStrGro) 4,272,208 shares (cost $67,679,805) ............................................................. 87,323,924 Nationwide SAT - Strategic Value Fund (NSATStrVal) 1,517,643 shares (cost $14,938,847) ............................................................. 14,281,023 Nationwide SAT - Total Return Fund (NSATTotRe) 27,127,557 shares (cost $503,344,518) ........................................................... 510,269,350 Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard) 4,088,163 shares (cost $58,592,261) ............................................................. 64,797,389 Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr) 4,283,319 shares (cost $69,927,580) ............................................................. 104,084,651 Neuberger & Berman AMT - Partners Portfolio (NBAMTPart) 6,496,851 shares (cost $124,991,275) ............................................................ 127,598,157 Oppenheimer VAF - Aggressive Growth Fund (OppAggGro) 1,789,956 shares (cost $109,187,224) ............................................................ 147,331,319 Oppenheimer VAF - Capital Appreciation Fund (OppCapAp) 3,467,910 shares (cost $131,621,275) ............................................................ 172,840,639 Oppenheimer VAF - Main Street Growth & Income Fund (OppGrInc) 5,749,471 shares (cost $125,186,474) ............................................................ 141,609,480 Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt) 2,431,635 shares (cost $28,640,364) ............................................................. 34,675,121 Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs) 618,705 shares (cost $6,514,021) ................................................................ 6,781,006 Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec) 1,709,941 shares (cost $23,106,619) ............................................................. 21,151,964 Victory VIF - Diversified Stock Fund - Class A (VVIFDStk) 397,644 shares (cost $3,840,250) ................................................................ 4,004,273 Victory VIF - Investment Quality Bond Fund - Class A (VVIFIQBd) 176,741 shares (cost $1,764,492) ................................................................ 1,732,060 Victory VIF - Small Company Opportunity Fund - Class A (VVIFSmCoOpp) 138,498 shares (cost $1,359,342) ................................................................ 1,371,129 Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc) 1,549,407 shares (cost $18,232,245) ............................................................. 18,422,453 Warburg Pincus Trust - International Equity Portfolio (WPIntEq) 2,535,079 shares (cost $38,270,810) ............................................................. 42,335,823 Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap) 1,121,991 shares (cost $16,592,355) ............................................................. 21,609,550 --------------- Total investments ............................................................................ 6,530,063,014 Accounts receivable .................................................................................. 103,046 --------------- Total assets ................................................................................ 6,530,166,060 Accounts payable ........................................................................................ - --------------- Contract owners' equity (note 4) ........................................................................ $ 6,530,166,060 ===============
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 4 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 1999 AND 1998
Total ACVPincGr ACVPint ------------------------------ ------------------------------ -------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 67,063,331 20,037,926 13,740 220,567 - Mortality and expense risk charges (note 2)............................. (42,760,043) (12,179,624) (1,027,835) (182,750) (948,065) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. 24,303,288 7,858,302 (1,014,095) 37,817 (948,065) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 2,014,782,794 147,138,081 5,909,912 299,469 178,233,023 Cost of mutual fund shares sold........ (1,929,367,144) (151,277,931) (4,451,364) (260,801) (156,687,528) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 85,415,650 (4,139,850) 1,458,548 38,668 21,545,495 Change in unrealized gain (loss) on investments....................... 529,140,404 121,513,304 18,056,144 4,570,573 46,969,672 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... 614,556,054 117,373,454 19,514,692 4,609,241 68,515,167 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 115,192,705 27,066,537 - 9,256 - -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 754,052,047 152,298,293 18,500,597 4,656,314 67,567,102 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 3,413,685,206 2,421,579,829 95,493,563 34,231,141 64,810,675 Transfers between funds................ - - 7,831,668 7,880,597 13,920,028 Redemptions............................ (221,905,485) (66,628,531) (4,154,414) (1,021,174) (3,040,821) Annuity benefits ...................... (1,253) - - - - Contingent deferred sales charges (note 2)............................. (4,399,205) (676,512) (78,156) (7,094) (57,293) Adjustments to maintain reserves....... (62,185) 38,184 (3,119) (27,089) 3,134 -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 3,187,317,078 2,354,312,970 99,089,542 41,056,381 75,635,723 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 3,941,369,125 2,506,611,263 117,590,139 45,712,695 143,202,825 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 2,588,796,935 82,185,672 46,170,274 457,579 52,242,163 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $6,530,166,060 2,588,796,935 163,760,413 46,170,274 195,444,988 ============== ============== ============== ============== =============
ACVPint ACVPValue -------------- ------------------------------- 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. 26,394 227,207 28,096 Mortality and expense risk charges (note 2)............................. (224,953) (304,797) (121,549) -------------- -------------- -------------- Net investment activity.............. (198,559) (77,590) (93,453) -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 2,580,905 8,457,761 1,595,103 Cost of mutual fund shares sold........ (2,610,970) (9,146,919) (1,678,560) -------------- -------------- -------------- Realized gain (loss) on investments.. (30,065) (689,158) (83,457) Change in unrealized gain (loss) on investments....................... 379,163 (3,132,639) (147,770) -------------- -------------- -------------- Net gain (loss) on investments....... 349,098 (3,821,797) (231,227) -------------- -------------- -------------- Reinvested capital gains............... 270,951 2,152,580 335,441 -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 421,490 (1,746,807) 10,761 -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 39,680,086 20,132,932 19,091,612 Transfers between funds................ 12,597,519 (324,126) 1,715,026 Redemptions............................ (1,031,134) (1,325,735) (518,275) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (7,206) (31,100) (7,315) Adjustments to maintain reserves....... 31,510 (221) (218) -------------- -------------- -------------- Net equity transactions............ 51,270,775 18,451,750 20,280,830 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 51,692,265 16,704,943 20,291,591 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 549,898 21,650,989 1,359,398 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... 52,242,163 38,355,932 21,650,989 ============== ============== ==============
5 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
DrySRGro DryStkix DryCapAp ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 20,454 60,373 7,074,947 2,203,648 913,606 Mortality and expense risk charges (note 2)............................. (874,709) (164,380) (5,915,703) (1,335,082) (1,156,439) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. (854,255) (104,007) 1,159,244 868,566 (242,833) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 2,652,981 777,497 8,929,302 3,532,880 8,292,952 Cost of mutual fund shares sold........ (1,915,818) (725,553) (6,410,442) (3,554,666) (6,884,964) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 737,163 51,944 2,518,860 (21,786) 1,407,988 Change in unrealized gain (loss) on investments....................... 21,902,824 3,346,139 103,762,225 32,439,748 9,643,177 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... 22,639,987 3,398,083 106,281,085 32,417,962 11,051,165 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 5,506,089 1,392,227 6,286,659 435,046 612,835 -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 27,291,821 4,686,303 113,726,988 33,721,574 11,421,167 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 88,613,989 29,765,433 474,442,086 242,868,858 101,641,759 Transfers between funds................ 15,489,812 4,305,104 54,840,182 34,854,129 (277,522) Redemptions............................ (3,496,257) (803,449) (24,356,262) (6,057,535) (4,721,764) Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (62,705) (4,582) (501,167) (83,383) (112,549) Adjustments to maintain reserves....... (233) 66 827 30,385 (1,052) -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 100,544,606 33,262,572 504,425,666 271,612,454 96,528,872 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 127,836,427 37,948,875 618,152,654 305,334,028 107,950,039 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 38,805,599 856,724 311,454,663 6,120,635 57,411,990 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 166,642,026 38,805,599 929,607,317 311,454,663 165,362,029 ============== ============== ============== ============== =============
DryCapAp DryEuroEq -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. 296,317 4,319 - Mortality and expense risk charges (note 2)............................. (191,312) (2,462) - -------------- -------------- -------------- Net investment activity.............. 105,005 1,857 - -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 692,754 654,656 - Cost of mutual fund shares sold........ (632,372) (537,831) - -------------- -------------- -------------- Realized gain (loss) on investments.. 60,382 116,825 - Change in unrealized gain (loss) on investments....................... 5,296,793 200,421 - -------------- -------------- -------------- Net gain (loss) on investments....... 5,357,175 317,246 - -------------- -------------- -------------- Reinvested capital gains............... 1,464 20,286 - -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 5,463,644 339,389 - -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 37,281,447 526,129 - Transfers between funds................ 14,756,161 1,278,795 - Redemptions............................ (999,653) (10,356) - Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (11,014) - - Adjustments to maintain reserves....... (10,617) (29) - -------------- -------------- -------------- Net equity transactions............ 51,016,324 1,794,539 - -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 56,479,968 2,133,928 - CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 932,022 - - -------------- -------------- -------------- Contract owners' equity end of period.... 57,411,990 2,133,928 - ============== ============== ==============
6 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
FedQualBd FidVIPEIS FidVIPGrS ------------------------------ ------------------------------ -------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ - - 3,121,196 217,564 246,130 Mortality and expense risk charges (note 2)............................. (19,926) - (2,844,312) (991,992) (3,103,275) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. (19,926) - 276,884 (774,428) (2,857,145) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 1,076,139 - 6,544,933 628,613 26,416,695 Cost of mutual fund shares sold........ (1,075,578) - (6,132,572) (599,673) (21,341,945) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 561 - 412,361 28,940 5,074,750 Change in unrealized gain (loss) on investments....................... (15,720) - 1,517,647 7,558,663 98,493,324 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... (15,159) - 1,930,008 7,587,603 103,568,074 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... - - 6,899,485 774,271 15,475,451 -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... (35,085) - 9,106,377 7,587,446 116,186,380 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 5,376,015 - 178,867,332 175,676,909 306,170,035 Transfers between funds................ 2,358,597 - (7,116,225) 13,491,409 96,715,312 Redemptions............................ (251,679) - (15,062,722) (5,441,684) (19,374,716) Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (1,674) - (279,245) (54,879) (654,127) Adjustments to maintain reserves....... 757 - (3,780) (2,947) (12,461) -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 7,482,016 - 156,405,360 183,668,808 382,844,043 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 7,446,931 - 165,511,737 191,256,254 499,030,423 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. - - 196,573,059 5,316,805 109,329,873 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 7,446,931 - 362,084,796 196,573,059 608,360,296 ============== ============== ============== ============== =============
FidVIPGrS FidVIPHIS -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. 27,645 9,984,261 609,157 Mortality and expense risk charges (note 2)............................. (414,288) (1,459,555) (546,399) -------------- -------------- -------------- Net investment activity.............. (386,643) 8,524,706 62,758 -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 1,691,790 56,084,424 5,911,230 Cost of mutual fund shares sold........ (1,783,855) (63,235,509) (7,053,926) -------------- -------------- -------------- Realized gain (loss) on investments.. (92,065) (7,151,085) (1,142,696) Change in unrealized gain (loss) on investments....................... 16,582,085 7,299,162 (5,732,014) -------------- -------------- -------------- Net gain (loss) on investments....... 16,490,020 148,077 (6,874,710) -------------- -------------- -------------- Reinvested capital gains............... 723,135 373,243 387,069 -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 16,826,512 9,046,026 (6,424,883) -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 71,107,684 81,385,530 106,687,268 Transfers between funds................ 21,283,689 10,885,567 3,713,555 Redemptions............................ (1,868,105) (8,253,422) (3,477,421) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (25,533) (109,715) (19,045) Adjustments to maintain reserves....... 198 (414) (220) -------------- -------------- -------------- Net equity transactions............ 90,497,933 83,907,546 106,904,137 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 107,324,445 92,953,572 100,479,254 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 2,005,428 103,387,120 2,907,866 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... 109,329,873 196,340,692 103,387,120 ============== ============== ==============
7 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
FidVIPOvS FidVIPConS FidVIPGrOpS ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 428,804 39,473 703,614 56,795 1,071,044 Mortality and expense risk charges (note 2)............................. (466,539) (125,886) (2,565,841) (530,641) (1,576,394) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. (37,735) (86,413) (1,862,227) (473,846) (505,350) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 169,388,211 4,459,537 1,391,017 389,637 22,825,558 Cost of mutual fund shares sold........ (158,069,751) (4,576,878) (1,110,585) (408,471) (20,001,471) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 11,318,460 (117,341) 280,432 (18,834) 2,824,087 Change in unrealized gain (loss) on investments....................... 10,631,802 489,713 58,793,652 17,909,633 700,174 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... 21,950,262 372,372 59,074,084 17,890,799 3,524,261 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 691,619 116,340 5,159,836 417,852 2,093,404 -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 22,604,146 402,299 62,371,693 17,834,805 5,112,315 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 31,661,483 21,535,431 210,779,869 95,817,883 111,530,050 Transfers between funds................ 13,663,206 3,800,935 32,806,150 13,757,369 (2,530,648) Redemptions............................ (1,724,410) (383,762) (9,615,920) (2,362,374) (6,562,117) Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (34,214) (3,534) (187,997) (32,976) (125,543) Adjustments to maintain reserves....... (5,141) 163 (1,122) (59,196) 2,854 -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 43,560,924 24,949,233 233,780,980 107,120,706 102,314,596 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 66,165,070 25,351,532 296,152,673 124,955,511 107,426,911 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 26,272,538 921,006 128,667,017 3,711,506 100,601,545 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 92,437,608 26,272,538 424,819,690 128,667,017 208,028,456 ============== ============== ============== ============== =============
FidVIPGrOpS MSEmMkt -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 67,013 790,752 387,439 Mortality and expense risk charges (note 2)............................. (458,675) (47,240) (21,405) -------------- -------------- -------------- Net investment activity.............. (391,662) 743,512 366,034 -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 312,351 6,942,907 1,077,168 Cost of mutual fund shares sold........ (318,329) (7,221,261) (1,547,782) -------------- -------------- -------------- Realized gain (loss) on investments.. (5,978) (278,354) (470,614) Change in unrealized gain (loss) on investments....................... 11,843,161 798,575 (967,487) -------------- -------------- -------------- Net gain (loss) on investments....... 11,837,183 520,221 (1,438,101) -------------- -------------- -------------- Reinvested capital gains............... 232,948 - - -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 11,678,469 1,263,733 (1,072,067) -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 79,527,836 2,576,386 3,872,593 Transfers between funds................ 8,581,600 (170,498) 313,112 Redemptions............................ (1,722,323) (205,541) (58,191) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (20,999) (2,930) (253) Adjustments to maintain reserves....... (21,308) 4 (62) -------------- -------------- -------------- Net equity transactions............ 86,344,806 2,197,421 4,127,199 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 98,023,275 3,461,154 3,055,132 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 2,578,270 3,251,340 196,208 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 100,601,545 6,712,494 3,251,340 ============== ============== ==============
(continued) 8 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
NSATBal NSATCapAp NSATEqInc ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 2,113,096 683,468 1,872,928 750,851 70,825 Mortality and expense risk charges (note 2)............................. (578,114) (176,388) (2,766,087) (789,249) (190,451) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. 1,534,982 507,080 (893,159) (38,398) (119,626) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 953,859 181,876 20,410,418 2,717,344 662,257 Cost of mutual fund shares sold........ (907,065) (178,647) (17,291,814) (2,728,836) (533,418) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 46,794 3,229 3,118,604 (11,492) 128,839 Change in unrealized gain (loss) on investments....................... (2,325,487) 328,826 (18,009,623) 14,966,388 3,294,853 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... (2,278,693) 332,055 (14,891,019) 14,954,896 3,423,692 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 10,762 115,971 22,036,681 5,341,096 10,580 -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... (732,949) 955,106 6,252,503 20,257,594 3,314,646 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 40,680,546 33,253,731 186,868,647 150,374,491 10,827,322 Transfers between funds................ (2,694,018) 4,913,679 (33,840,307) 25,963,419 1,031,331 Redemptions............................ (2,544,229) (833,930) (12,585,838) (3,752,392) (1,057,143) Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (32,122) (8,225) (275,367) (30,248) (20,478) Adjustments to maintain reserves....... 44,627 177 (12,885) 53,212 (31) -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 35,454,804 37,325,432 140,154,250 172,608,482 10,781,001 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 34,721,855 38,280,538 146,406,753 192,866,076 14,095,647 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 39,173,071 892,533 195,527,481 2,661,405 12,791,973 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 73,894,926 39,173,071 341,934,234 195,527,481 26,887,620 ============== ============== ============== ============== =============
NSATEqInc NSATGlobEq -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. 75,504 84,740 141,975 Mortality and expense risk charges (note 2)............................. (66,726) (244,287) (76,522) -------------- -------------- -------------- Net investment activity.............. 8,778 (159,547) 65,453 -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 376,534 526,452 685,356 Cost of mutual fund shares sold........ (366,898) (401,585) (668,251) -------------- -------------- -------------- Realized gain (loss) on investments.. 9,636 124,867 17,105 Change in unrealized gain (loss) on investments....................... 869,248 4,354,472 936,891 -------------- -------------- -------------- Net gain (loss) on investments....... 878,884 4,479,339 953,996 -------------- -------------- -------------- Reinvested capital gains............... 137,183 1,182,461 98,132 -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 1,024,845 5,502,253 1,117,581 -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 10,836,292 15,224,818 12,466,313 Transfers between funds................ 736,897 2,201,223 1,290,714 Redemptions............................ (392,814) (854,333) (359,325) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (5,629) (8,941) (2,129) Adjustments to maintain reserves....... (359) 8,686 35 -------------- -------------- -------------- Net equity transactions............ 11,174,387 16,571,453 13,395,608 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 12,199,232 22,073,706 14,513,189 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 592,741 15,026,672 513,483 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... 12,791,973 37,100,378 15,026,672 ============== ============== ==============
9 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
NSATGvtBd NSATHIncBd NSATMyMkt ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 11,115,708 4,068,221 3,747,180 1,175,418 13,994,349 Mortality and expense risk charges (note 2)............................. (1,915,411) (617,861) (429,794) (140,356) (3,003,994) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. 9,200,297 3,450,360 3,317,386 1,035,062 10,990,355 -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 19,852,089 6,875,359 17,841,203 1,434,798 914,095,013 Cost of mutual fund shares sold........ (20,364,218) (6,712,656) (18,615,221) (1,454,954) (914,095,013) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. (512,129) 162,703 (774,018) (20,156) - Change in unrealized gain (loss) on investments....................... (15,046,720) 96,330 (1,931,626) (637,940) - -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... (15,558,849) 259,033 (2,705,644) (658,096) - -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 458,147 644,842 20,477 - - -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... (5,900,405) 4,354,235 632,219 376,966 10,990,355 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 155,714,369 135,535,861 26,877,564 26,481,762 513,201,591 Transfers between funds................ (31,118,681) (2,966,402) (4,776,516) 2,932,999 (270,070,521) Redemptions............................ (12,549,617) (4,331,237) (2,757,819) (701,614) (35,394,012) Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (152,236) (23,933) (38,131) (4,542) (569,286) Adjustments to maintain reserves....... (5,324) 1,128 1,005 (12) 66,186 -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 111,888,511 128,215,417 19,306,103 28,708,593 207,233,958 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 105,988,106 132,569,652 19,938,322 29,085,559 218,224,313 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 135,739,661 3,170,009 29,999,540 913,981 191,311,362 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 241,727,767 135,739,661 49,937,862 29,999,540 409,535,675 ============== ============== ============== ============== =============
NSATMyMkt NSATMSecBd -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. 5,541,671 3,046,558 1,155,410 Mortality and expense risk charges (note 2)............................. (1,078,918) (461,845) (177,722) -------------- -------------- -------------- Net investment activity.............. 4,462,753 2,584,713 977,688 -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 74,592,150 3,225,045 474,327 Cost of mutual fund shares sold........ (74,592,150) (3,438,764) (482,830) -------------- -------------- -------------- Realized gain (loss) on investments.. - (213,719) (8,503) Change in unrealized gain (loss) on investments....................... - (1,852,549) (757,239) -------------- -------------- -------------- Net gain (loss) on investments....... - (2,066,268) (765,742) -------------- -------------- -------------- Reinvested capital gains............... - - 31,361 -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 4,462,753 518,445 243,307 -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 406,622,866 27,508,026 29,533,663 Transfers between funds................ (219,515,750) (1,144,670) 4,903,909 Redemptions............................ (13,347,779) (2,473,128) (761,323) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (133,217) (41,232) (7,092) Adjustments to maintain reserves....... 36,549 (217) 78 -------------- -------------- -------------- Net equity transactions............ 173,662,669 23,848,779 33,669,235 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 178,125,422 24,367,224 33,912,542 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 13,185,940 34,953,838 1,041,296 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... 191,311,362 59,321,062 34,953,838 ============== ============== ==============
10 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
NSATMidCap NSATSmCapG NSATSmCapV ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 26,390 40,624 - - - Mortality and expense risk charges (note 2)............................. (100,293) (39,241) (17,275) - (447,536) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. (73,903) 1,383 (17,275) - (447,536) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 1,719,925 1,063,903 5,179,636 - 26,947,959 Cost of mutual fund shares sold........ (1,627,057) (1,093,420) (4,606,174) - (24,503,029) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 92,868 (29,517) 573,462 - 2,444,930 Change in unrealized gain (loss) on investments....................... 1,139,778 397,911 3,274,222 - (2,252,934) -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... 1,232,646 368,394 3,847,684 - 191,996 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 906,636 - 510,845 - 11,306,131 -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 2,065,379 369,777 4,341,254 - 11,050,591 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 5,311,828 6,187,234 3,532,204 - 25,899,735 Transfers between funds................ 629,075 558,871 6,524,803 - 3,995,622 Redemptions............................ (506,127) (98,756) (67,415) - (1,693,497) Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (6,847) (2,133) (334) - (30,984) Adjustments to maintain reserves....... 4,046 6 (77,860) - 16,893 -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 5,431,975 6,645,222 9,911,398 - 28,187,769 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 7,497,354 7,014,999 14,252,652 - 39,238,360 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 7,244,061 229,062 - - 29,728,543 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 14,741,415 7,244,061 14,252,652 - 68,966,903 ============== ============== ============== ============== =============
NSATSmCapV NSATSmCo -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. - - - Mortality and expense risk charges (note 2)............................. $ (139,281) (590,685) (214,785) -------------- -------------- -------------- Net investment activity.............. (139,281) (590,685) (214,785) -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 2,135,282 98,840,506 1,735,242 Cost of mutual fund shares sold........ (2,330,458) (90,285,318) (1,907,541) -------------- -------------- -------------- Realized gain (loss) on investments.. (195,176) 8,555,188 (172,299) Change in unrealized gain (loss) on investments....................... (40,635) 15,852,354 424,838 -------------- -------------- -------------- Net gain (loss) on investments....... (235,811) 24,407,542 252,539 -------------- -------------- -------------- Reinvested capital gains............... - 4,052,068 - -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... (375,092) 27,868,925 37,754 -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 24,448,985 28,999,047 35,742,935 Transfers between funds................ 5,269,520 4,674,356 6,599,455 Redemptions............................ (761,878) (2,442,726) (919,776) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (10,195) (58,681) (7,264) Adjustments to maintain reserves....... 49 967 6 -------------- -------------- -------------- Net equity transactions............ 28,946,481 31,172,963 41,415,356 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 28,571,389 59,041,888 41,453,110 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 1,157,154 43,011,425 1,558,315 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 29,728,543 102,053,313 43,011,425 ============== ============== ==============
11 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
NSATStrGro NSATStrVal NSATTotRe ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ - - 114,007 63,791 2,607,845 Mortality and expense risk charges (note 2)............................. (279,828) (43,967) (135,462) (72,683) (3,940,689) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. (279,828) (43,967) (21,455) (8,892) (1,332,844) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 7,402,907 487,613 5,077,140 1,450,301 5,635,213 Cost of mutual fund shares sold........ (5,535,789) (466,818) (5,576,119) (1,513,062) (4,896,728) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 1,867,118 20,795 (498,979) (62,761) 738,485 Change in unrealized gain (loss) on investments....................... 18,826,217 809,463 (536,035) (125,831) 2,068,214 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... 20,693,335 830,258 (1,035,014) (188,592) 2,806,699 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 4,290,875 - 422,281 - 18,733,710 -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 24,704,382 786,291 (634,188) (197,484) 20,207,565 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 22,842,076 7,304,155 5,369,174 12,996,713 236,961,792 Transfers between funds................ 32,390,564 441,689 (3,499,556) 616,493 (11,925,544) Redemptions............................ (1,318,965) (118,200) (549,563) (291,210) (20,433,946) Annuity benefits ...................... - - - - (1,253) Contingent deferred sales charges (note 2)............................. (31,712) (2,477) (11,600) (1,123) (403,251) Adjustments to maintain reserves....... 881 (24) (138) (115) (74) -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 53,882,844 7,625,143 1,308,317 13,320,758 204,197,724 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 78,587,226 8,411,434 674,129 13,123,274 224,405,289 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 8,737,476 326,042 13,606,737 483,463 285,881,294 -------------- -------------- -------------- -------------- ------------- Contract owners' equity end of period.... $ 87,324,702 8,737,476 14,280,866 13,606,737 510,286,583 ============== ============== ============== ============== =============
NSATTotRe NBAMTGuard -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. 1,708,752 136,645 1,976 Mortality and expense risk charges (note 2)............................. (1,383,759) (509,102) (150,013) -------------- -------------- -------------- Net investment activity.............. 324,993 (372,457) (148,037) -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 467,344 11,010,636 3,798,426 Cost of mutual fund shares sold........ (439,529) (10,638,188) (3,492,087) -------------- -------------- -------------- Realized gain (loss) on investments.. 27,815 372,448 306,339 Change in unrealized gain (loss) on investments....................... 4,936,630 5,598,352 594,984 -------------- -------------- -------------- Net gain (loss) on investments....... 4,964,445 5,970,800 901,323 -------------- -------------- -------------- Reinvested capital gains............... 11,040,291 - - -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 16,329,729 5,598,343 753,286 -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 262,212,521 30,029,433 24,467,744 Transfers between funds................ 8,063,395 (1,195,248) 7,388,132 Redemptions............................ (6,698,439) (1,949,424) (704,350) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (83,262) (43,794) (8,663) Adjustments to maintain reserves....... (796) (171) (16) -------------- -------------- -------------- Net equity transactions............ 263,493,419 26,840,796 31,142,847 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 279,823,148 32,439,139 31,896,133 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 6,058,146 32,358,200 462,067 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... 285,881,294 64,797,339 32,358,200 ============== ============== ==============
12 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
NBAMTMCGr NBAMTPart OppAggGro ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ - 2,804 1,329,409 110,164 - Mortality and expense risk charges (note 2)............................. (486,685) (128,063) (1,181,540) (710,975) (562,098) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. (486,685) (125,259) 147,869 (600,811) (562,098) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 9,847,995 2,635,124 14,525,051 11,129,126 66,676,730 Cost of mutual fund shares sold........ (8,329,873) (2,223,804) (15,847,800) (12,460,209) (54,000,617) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 1,518,122 411,320 (1,322,749) (1,331,083) 12,676,113 Change in unrealized gain (loss) on investments....................... 29,692,933 4,390,487 5,530,836 (3,000,603) 36,427,451 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... 31,211,055 4,801,807 4,208,087 (4,331,686) 49,103,564 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 854,495 19,626 2,312,016 3,470,168 - -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 31,578,865 4,696,174 6,667,972 (1,462,329) 48,541,466 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 39,386,252 18,933,486 35,775,813 107,647,557 40,719,412 Transfers between funds................ 6,571,008 3,753,367 (18,685,095) (8,050,973) 32,955,048 Redemptions............................ (1,774,431) (610,060) (4,980,093) (2,536,518) (2,221,684) Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (37,463) (5,247) (115,843) (22,496) (49,415) Adjustments to maintain reserves....... 623 10,095 (187) (1,292) 1,821 -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 44,145,989 22,081,641 11,994,595 97,036,278 71,405,182 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 75,724,854 26,777,815 18,662,567 95,573,949 119,946,648 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 28,359,137 1,581,322 108,935,535 13,361,586 27,386,709 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 104,083,991 28,359,137 127,598,102 108,935,535 147,333,357 ============== ============== ============== ============== =============
OppAggGro OppCapAp -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. 9,456 188,198 37,971 Mortality and expense risk charges (note 2)............................. (119,282) (871,318) (174,030) -------------- -------------- -------------- Net investment activity.............. (109,826) (683,120) (136,059) -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 1,420,396 1,778,562 597,638 Cost of mutual fund shares sold........ (1,460,125) (1,466,097) (673,390) -------------- -------------- -------------- Realized gain (loss) on investments.. (39,729) 312,465 (75,752) Change in unrealized gain (loss) on investments....................... 1,711,620 36,882,889 4,326,733 -------------- -------------- -------------- Net gain (loss) on investments....... 1,671,891 37,195,354 4,250,981 -------------- -------------- -------------- Reinvested capital gains............... 97,107 2,067,307 458,139 -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 1,659,172 38,579,541 4,573,061 -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 21,395,189 69,998,087 34,076,956 Transfers between funds................ 4,014,156 26,275,783 2,552,479 Redemptions............................ (398,429) (3,288,357) (796,810) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (3,886) (64,894) (15,293) Adjustments to maintain reserves....... 66 822 (7) -------------- -------------- -------------- Net equity transactions............ 25,007,096 92,921,441 35,817,325 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 26,666,268 131,500,982 40,390,386 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 720,441 41,340,619 950,233 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... 27,386,709 172,841,601 41,340,619 ============== ============== ==============
13 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
OppGrinc VEWrldEMkt VEWrldHAs ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 256,716 15,499 - 10,120 32,691 Mortality and expense risk charges (note 2)............................. (821,624) (226,980) (135,165) (30,563) (47,094) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. (564,908) (211,481) (135,165) (20,443) (14,403) -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 2,205,547 1,051,542 49,595,652 1,437,687 33,912,002 Cost of mutual fund shares sold........ (2,181,405) (1,137,377) (44,294,831) (1,801,946) (33,450,865) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. 24,142 (85,835) 5,300,821 (364,259) 461,137 Change in unrealized gain (loss) on investments....................... 16,554,000 (156,268) 6,929,541 (898,926) 349,586 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... 16,578,142 (242,103) 12,230,362 (1,263,185) 810,723 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... 432,510 341,298 - 8,995 - -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 16,445,744 (112,286) 12,095,197 (1,274,633) 796,320 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 71,680,449 47,098,256 8,623,115 5,631,777 2,392,796 Transfers between funds................ 5,709,038 4,855,602 10,280,791 (119,473) 1,791,654 Redemptions............................ (3,803,771) (1,267,689) (1,025,890) (159,609) (245,453) Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (65,301) (14,711) (32,807) (976) (1,862) Adjustments to maintain reserves....... 129 6 621 120 5 -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 73,520,544 50,671,464 17,845,830 5,351,839 3,937,140 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 89,966,288 50,559,178 29,941,027 4,077,206 4,733,460 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 51,643,553 1,084,375 4,734,742 657,536 2,047,555 -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 141,609,841 51,643,553 34,675,769 4,734,742 6,781,015 ============== ============== ============== ============== =============
VEWrldHAs VKMSRESec -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. 2,513 1,176,823 10,631 Mortality and expense risk charges (note 2)............................. (13,210) (195,387) (114,486) -------------- -------------- -------------- Net investment activity.............. (10,697) 981,436 (103,855) -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 1,320,656 8,332,839 1,342,798 Cost of mutual fund shares sold........ (1,839,705) (9,623,986) (1,619,581) -------------- -------------- -------------- Realized gain (loss) on investments.. (519,049) (1,291,147) (276,783) Change in unrealized gain (loss) on investments....................... (85,920) (722,279) (1,172,272) -------------- -------------- -------------- Net gain (loss) on investments....... (604,969) (2,013,426) (1,449,055) -------------- -------------- -------------- Reinvested capital gains............... 61,720 - 104,608 -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... (553,946) (1,031,990) (1,448,302) -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 2,371,551 8,349,713 17,955,980 Transfers between funds................ 111,448 (3,211,414) 861,422 Redemptions............................ (100,995) (943,773) (416,792) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. (454) (21,748) (1,112) Adjustments to maintain reserves....... (228) (165) (276) -------------- -------------- -------------- Net equity transactions............ 2,381,322 4,172,613 18,399,222 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 1,827,376 3,140,623 16,950,920 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 220,179 18,011,188 1,060,268 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... 2,047,555 21,151,811 18,011,188 ============== ============== ==============
14 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
VVIFDStk VVIFIQBd VVIFSmCoOPP ------------------------------ ------------------------------ ------------- 1999 1998 1999 1998 1999 -------------- -------------- -------------- -------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 13,921 - 31,107 - 6,490 Mortality and expense risk charges (note 2)............................. (7,664) - (1,470) - (889) -------------- -------------- -------------- -------------- ------------- Net investment activity.............. 6,257 - 29,637 - 5,601 -------------- -------------- -------------- -------------- ------------- Proceeds from mutual fund shares sold.. 79,603 - 18,422 - 291 Cost of mutual fund shares sold........ (82,834) - (18,483) - (310) -------------- -------------- -------------- -------------- ------------- Realized gain (loss) on investments.. (3,231) - (61) - (19) Change in unrealized gain (loss) on investments....................... 164,023 - (32,432) - 11,787 -------------- -------------- -------------- -------------- ------------- Net gain (loss) on investments....... 160,792 - (32,493) - 11,768 -------------- -------------- -------------- -------------- ------------- Reinvested capital gains............... - - - - - -------------- -------------- -------------- -------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 167,049 - (2,856) - 17,369 -------------- -------------- -------------- -------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 3,821,737 - 1,758,972 - 1,359,026 Transfers between funds................ 65,984 - - - - Redemptions............................ (13,451) - (1,445) - - Annuity benefits ...................... - - - - - Contingent deferred sales charges (note 2)............................. (305) - (43) - - Adjustments to maintain reserves....... (3,436) - (22,296) - (5,256) -------------- -------------- -------------- -------------- ------------- Net equity transactions............ 3,870,529 - 1,735,188 - 1,353,770 -------------- -------------- -------------- -------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 4,037,578 - 1,732,332 - 1,371,139 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. - - - - - -------------- -------------- -------------- -------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 4,037,578 - 1,732,332 - 1,371,139 ============== ============== ============== ============== =============
VVIFSmCoOPP WPGrinc -------------- ------------------------------ 1998 1999 1998 -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. - 173,949 108,063 Mortality and expense risk charges (note 2)............................. - (178,005) (65,537) -------------- -------------- -------------- Net investment activity.............. - (4,056) 42,526 -------------- -------------- -------------- Proceeds from mutual fund shares sold.. - 5,363,260 492,211 Cost of mutual fund shares sold........ - (5,013,179) (462,324) -------------- -------------- -------------- Realized gain (loss) on investments.. - 350,081 29,887 Change in unrealized gain (loss) on investments....................... - (232,251) 416,403 -------------- -------------- -------------- Net gain (loss) on investments....... - 117,830 446,290 -------------- -------------- -------------- Reinvested capital gains............... - 313,236 - -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... - 427,010 488,816 -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... - 8,990,039 11,279,862 Transfers between funds................ - (3,279,579) 1,072,048 Redemptions............................ - (785,224) (178,134) Annuity benefits ...................... - - - Contingent deferred sales charges (note 2)............................. - (8,341) (1,134) Adjustments to maintain reserves....... - (17,238) (786) -------------- -------------- -------------- Net equity transactions............ - 4,899,657 12,171,856 -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... - 5,326,667 12,660,672 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. - 13,095,692 435,020 -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... - 18,422,359 13,095,692 ============== ============== ==============
15 NATIONWIDE VARIABLE ACCOUNT-9 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED YEARS ENDED DECEMBER 31, 1999 AND 1998
WPIntEq WPPVenCap ------------------------------ ------------------------------ 1999 1998 1999 1998 -------------- -------------- -------------- -------------- INVESTMENT ACTIVITY: Reinvested dividends .................. $ 323,682 82,563 - - Mortality and expense risk charges (note 2)............................. (245,117) (89,474) (102,042) (30,241) -------------- -------------- -------------- -------------- Net investment activity.............. 78,565 (6,911) (102,042) (30,241) -------------- -------------- -------------- -------------- Proceeds from mutual fund shares sold.. 158,927,167 2,101,509 20,338,944 1,184,605 Cost of mutual fund shares sold........ (149,550,425) (2,099,792) (17,967,401) (1,319,705) -------------- -------------- -------------- -------------- Realized gain (loss) on investments.. 9,376,742 1,717 2,371,543 (135,100) Change in unrealized gain (loss) on investments....................... 4,764,159 (655,153) 4,746,233 268,939 -------------- -------------- -------------- -------------- Net gain (loss) on investments....... 14,140,901 (653,436) 7,117,776 133,839 -------------- -------------- -------------- -------------- Reinvested capital gains............... - - - - -------------- -------------- -------------- -------------- Net increase (decrease) in contract owners' equity resulting from operations....................... 14,219,466 (660,347) 7,015,734 103,598 -------------- -------------- -------------- -------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners...................... 7,668,878 14,240,840 3,304,912 5,338,928 Transfers between funds................ 5,802,849 1,644,029 5,171,722 1,058,670 Redemptions............................ (1,105,825) (211,060) (382,170) (134,332) Annuity benefits ...................... - - - - Contingent deferred sales charges (note 2)............................. (28,643) (2,448) (9,129) (810) Adjustments to maintain reserves....... (44,309) (112) 86 15 -------------- -------------- -------------- -------------- Net equity transactions............ 12,292,950 15,671,249 8,085,421 6,262,471 -------------- -------------- -------------- -------------- NET CHANGE IN CONTRACT OWNERS' EQUITY.... 26,512,416 15,010,902 15,101,155 6,366,069 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD.............................. 15,824,159 813,257 6,508,542 142,473 -------------- -------------- -------------- -------------- CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 42,336,575 15,824,159 21,609,697 6,508,542 ============== ============== ============== ==============
See accompanying notes to financial statements. 16 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 AND 1998 1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Organization and Nature of Operations The Nationwide Variable Account-9 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on May 22, 1997. 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 Modified Single Premium 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 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 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) Dreyfus Stock Index Fund (DryStkIx) Portfolio of the Dreyfus Variable Investment Fund (Dreyfus VIF); Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp) Dreyfus VIF - European Equities Fund (DryEuroEq) Federated Insurance Series: Federated 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) Portfolio of the Fidelity Variable Insurance Products Fund II (Fidelity VIP-II); Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVIPConS) Portfolio of the Fidelity Variable Insurance Products Fund III (Fidelity VIP-III); Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVIPGrOpS) Portfolio of the Morgan Stanley Universal Funds, Inc. (Morgan Stanley); Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt) Funds of the Nationwide Separate Account Trust (Nationwide SAT) (managed for a fee by an affiliated investment advisor); Nationwide SAT - Balanced Fund (NSATBal) 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 - Money Market Fund (NSATMyMkt) 17 Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd) Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap) Nationwide SAT - Select Advisors 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) Funds of the Oppenheimer Variable Account Funds (Oppenheimer VAF); Oppenheimer VAF - Aggressive Growth Fund (OppAggGro) Oppenheimer VAF - Capital Appreciation Fund (OppCapAp) (formerly Oppenheimer VAF - Growth Fund) Oppenheimer VAF - Main Street Growth & Income Fund (OppGrInc) (formerly Oppenheimer VAF - Growth & Income Fund) Funds 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) Portfolio of the Victory Variable Insurance Funds ( Victory VIF); Victory VIF - Diversified Stock Fund - Class A (VVIFDStk) Victory VIF - Investment Quality Bond Fund - Class A (VVIFIQBd) Victory VIF - Small Company Opportunity Fund - Class A (VVIFSmCoOpp) Portfolios of the Warburg Pincus Trust; Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc) Warburg Pincus Trust - International Equity Portfolio (WPIntEq) Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap) At December 31, 1999, contract owners have invested in all of the above funds. The contract owners' equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see note 2). The accompanying financial statements include only contract owners' purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company. A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans. 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) 18 NATIONWIDE VARIABLE ACCOUNT-9 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 (a) Sales Charges 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. On BOA Future, BOA V and BOA Choice contracts, the contingent deferred sales charge will not 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. On IVA contracts, the contingent deferred sales charge will not exceed 6% 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 BOA Exclusive II contracts. No sales charges are deducted on redemptions used to purchase units in the fixed investment options of the company. 19 (b) Mortality and Expense Risk Charges The Company deducts a mortality and expense risk charge assessed through the daily unit value calculation as follows: For the BOA Future contract, this charge ranges from an annual rate of .95% to a maximum of 2.65% if all permissible rider options are utilized. For this contract, the rider options include: (a) reduced purchase payment; (b) five year CDSC; (c) CDSC waiver; (d) death benefit; (e) guaranteed minimum income benefit and (f) purchase payment bonus. For the BOA Exclusive II contract, this charge ranges from an annual rate of 1.20% to a maximum of 1.90% if all permissible rider options are utilized. For this contract, the rider options include: (a) death benefit and (b) guaranteed minimum income benefit. For the BOA V contract, this charge ranges from an annual rate of 1.10% to a maximum of 1.70% if all permissible rider options are utilized. For this contract, the rider options include: (a) five year CDSC; (b) CDSC waiver and (c) death benefit. For the BOA Choice contract, this charge ranges from an annual rate of 1.20% to a maximum of 1.70% if all permissible rider options are utilized. For this contract, the rider options include: (a) death benefit and (b) guaranteed minimum income benefit. For the IVA contract, this charge ranges from an annual rate of 1.25% to a maximum of 1.45% if the death benefit option is utilized. The rider options and permissible combinations and related charges for the foregoing are described in the applicable product prospectus. The following table provides mortality and expense risk charges by asset fee rate for the year ended December 31, 1999:
TOTAL ACVPIncGr ACVPInt ACVPValue DrySRGro ------------ ------------ ------------ ------------ ------------ 0.95% ............. $ 21,757,026 530,318 491,566 169,162 435,760 1.00% ............. 14,345,607 320,932 302,747 83,416 294,442 1.05% ............. 2,884,191 53,209 53,182 21,258 52,669 1.10% ............. 336,355 19,660 3,060 625 32,335 1.15% ............. 88,576 4,321 1,274 193 5,557 1.20% ............. 686,547 23,828 16,105 11,432 17,405 1.25% ............. 131,921 5,332 3,969 3,047 2,554 1.30% ............. 27,305 1,049 307 1 2,523 1.35% ............. 1,720 146 14 - 48 1.40% ............. 2,453,510 68,402 74,241 15,312 30,250 1.45% ............. 13,227 146 375 14 496 1.50% ............. 26,101 383 1,200 215 505 1.55% ............. 1,890 - 3 114 5 1.60% ............. 301 - - - 5 1.65% ............. 4,975 82 21 6 141 1.70% ............. 695 7 1 - 12 1.75% ............. 94 20 - 2 2 1.80% ............. 2 - - - - ------------ ------------ ------------ ------------ ------------ Total .......... $ 42,760,043 1,027,835 948,065 304,797 874,709 ============ ============ ============ ============ ============
(Continued) 20 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
DryStkix DryCapAp DryEuroEq FedQualBd FidVIPEIS ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 3,016,838 589,617 1,284 9,265 1,404,837 1.00% ............ 2,024,620 363,958 576 5,642 1,054,365 1.05% ............ 377,296 90,450 24 686 234,084 1.10% ............ 56,608 14,946 13 145 12,542 1.15% ............ 15,814 5,757 - 75 2,703 1.20% ............ 87,196 29,645 242 439 34,175 1.25% ............ 16,805 3,147 45 9 10,460 1.30% ............ 7,002 2,173 3 5 1,165 1.35% ............ 313 57 - - 24 1.40% ............ 305,698 55,571 275 3,590 86,918 1.45% ............ 1,705 314 - - 1,448 1.50% ............ 5,114 775 - 58 1,192 1.55% ............ 251 4 - - 210 1.60% ............ 71 - - - - 1.65% ............ 196 16 - 12 143 1.70% ............ 148 3 - - 46 1.75% ............ 28 6 - - - 1.80% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 5,915,703 1,156,439 2,462 19,926 2,844,312 ============ ============ ============ ============ ============
FidVIPGrS FidVIPHIS FidVIPOvS FidVIPConS FidVIPGrOpS ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 1,493,811 745,195 242,387 1,313,821 747,075 1.00% ............ 1,070,697 456,701 131,511 875,110 619,622 1.05% ............ 186,137 142,636 34,707 141,335 100,891 1.10% ............ 32,456 5,464 974 28,621 4,981 1.15% ............ 9,401 1,244 251 4,870 636 1.20% ............ 80,167 13,927 9,541 67,792 24,590 1.25% ............ 12,973 3,815 2,593 7,593 3,367 1.30% ............ 1,883 167 35 2,627 129 1.35% ............ 130 13 10 56 5 1.40% ............ 209,213 89,860 44,059 120,968 74,271 1.45% ............ 1,510 115 72 391 52 1.50% ............ 2,173 393 385 2,165 664 1.55% ............ 231 17 3 122 95 1.60% ............ 73 - - - - 1.65% ............ 2,216 8 9 281 13 1.70% ............ 200 - 2 79 3 1.75% ............ 3 - - 10 - 1.80% ............ 1 - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 3,103,275 1,459,555 466,539 2,565,841 1,576,394 ============ ============ ============ ============ ============
21
MSEmMkt NSATBal NSATCapAp NSATEqInc NSATGlobEq ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 27,299 309,458 1,481,740 92,487 120,101 1.00% ............ 10,632 207,599 933,311 76,651 78,975 1.05% ............ 3,619 38,488 161,644 13,852 18,186 1.10% ............ 79 2,657 23,382 325 1,292 1.15% ............ 25 500 10,326 128 233 1.20% ............ 2,260 4,301 36,734 3,120 4,014 1.25% ............ 44 666 5,016 159 1,475 1.30% ............ - 381 1,371 6 26 1.35% ............ - 44 125 - 1 1.40% ............ 3,278 13,748 110,388 3,561 19,763 1.45% ............ - 94 539 20 27 1.50% ............ - 166 610 113 140 1.55% ............ - - 115 - 54 1.60% ............ - - 63 - - 1.65% ............ 4 11 722 17 - 1.70% ............ - 1 1 6 - 1.75% ............ - - - 6 - 1.80% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 47,240 578,114 2,766,087 190,451 244,287 ============ ============ ============ ============ ============
NSATGvtBd NSATHIncBd NSATMyMkt NSATMSecBd NSATMidCap ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 990,037 204,521 1,352,383 235,173 50,518 1.00% ............ 643,567 144,262 794,629 151,781 34,803 1.05% ............ 154,193 49,974 208,688 47,907 9,262 1.10% ............ 9,747 598 10,654 233 512 1.15% ............ 5,137 202 1,159 274 76 1.20% ............ 10,538 3,088 56,604 2,859 891 1.25% ............ 4,554 609 8,624 239 61 1.30% ............ 224 11 69 19 2 1.35% ............ 6 - 584 - - 1.40% ............ 96,366 26,223 566,291 23,247 4,046 1.45% ............ 433 118 1,006 24 - 1.50% ............ 583 132 3,134 28 27 1.55% ............ 9 5 - - 92 1.60% ............ 5 3 - - - 1.65% ............ 8 48 166 61 3 1.70% ............ - - 3 - - 1.75% ............ 4 - - - - 1.80% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 1,915,411 429,794 3,003,994 461,845 100,293 ============ ============ ============ ============ ============
(Continued) 22 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
NSATSmCapG NSATSmCapV NSATSmCo NSATStrGro NSATStrVal ------------ ------------ ------------ ------------ ------------ 0.95% ............. $ 8,888 254,795 307,391 158,226 82,767 1.00% ............. 4,485 127,478 192,099 77,342 35,717 1.05% ............. 1,287 33,249 35,675 12,673 12,621 1.10% ............. 44 2,654 1,852 2,093 156 1.15% ............. 8 618 452 430 63 1.20% ............. 622 4,811 4,691 7,476 742 1.25% ............. 211 1,208 1,319 2,035 153 1.30% ............. 2 60 96 60 1 1.35% ............. - 5 4 - - 1.40% ............. 1,371 22,257 46,795 18,687 2,893 1.45% ............. 87 139 32 207 127 1.50% ............. 270 260 277 547 222 1.55% ............. - - - 2 - 1.60% ............. - 2 - 4 - 1.65% ............. - - - 38 - 1.70% ............. - - 2 8 - 1.75% ............. - - - - - 1.80% ............. - - - - - ------------ ------------ ------------ ------------ ------------ Total .......... $ 17,275 447,536 590,685 279,828 135,462 ============ ============ ============ ============ ============
NSATTotRe NBAMTGuard NBAMTMCGr NBAMTPart OppAggGro ------------ ------------ ------------ ------------ ------------ 0.95% ............. $ 2,108,337 236,980 248,428 624,656 295,789 1.00% ............. 1,452,523 185,756 158,289 449,076 162,366 1.05% ............. 227,585 42,007 38,476 71,153 32,685 1.10% ............. 38,153 4,898 5,110 2,579 4,818 1.15% ............. 10,041 844 698 929 1,135 1.20% ............. 18,885 10,395 14,834 9,160 11,285 1.25% ............. 6,859 675 1,521 3,516 4,384 1.30% ............. 3,288 305 333 158 347 1.35% ............. 95 - 1 - 2 1.40% ............. 71,871 26,977 18,251 19,974 47,983 1.45% ............. 1,957 49 204 186 498 1.50% ............. 671 212 411 120 677 1.55% ............. 336 3 105 12 3 1.60% ............. - - - - - 1.65% ............. 31 1 17 21 101 1.70% ............. 51 - 7 - 25 1.75% ............. 5 - - - - 1.80% ............. 1 - - - - ------------ ------------ ------------ ------------ ------------ Total .......... $ 3,940,689 509,102 486,685 1,181,540 562,098 ============ ============ ============ ============ ============
23
OppCapAp OppGrinc VEWrldEMkt VEWrldHAs VKMSRESec ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 453,566 404,018 73,513 25,572 116,110 1.00% ............ 293,967 285,168 35,483 12,580 57,784 1.05% ............ 51,851 65,935 9,350 3,386 11,719 1.10% ............ 6,885 3,782 420 141 260 1.15% ............ 1,555 1,173 69 28 74 1.20% ............ 19,500 18,378 3,124 1,337 3,074 1.25% ............ 3,703 5,683 713 161 109 1.30% ............ 1,025 295 21 37 22 1.35% ............ 32 5 - - - 1.40% ............ 38,023 35,301 12,356 3,827 6,216 1.45% ............ 96 598 105 8 - 1.50% ............ 958 835 11 17 19 1.55% ............ - 95 - - - 1.60% ............ 72 - - - - 1.65% ............ 70 282 - - - 1.70% ............ 9 75 - - - 1.75% ............ 6 1 - - - 1.80% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 871,318 821,624 135,165 47,094 195,387 ============ ============ ============ ============ ============
VVIFDStk VVIFIQBd VVIFSmCoOpp WPGrInc WPintEq ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ - - - 107,503 137,775 1.00% ............ - - - 50,145 61,839 1.05% ............ - - - 13,682 15,866 1.10% ............ - - - 129 177 1.15% ............ - - - 122 181 1.20% ............ 7,367 1,387 850 1,775 3,193 1.25% ............ 73 17 14 349 1,728 1.30% ............ - - - - 5 1.35% ............ - - - - - 1.40% ............ - - - 4,093 24,158 1.45% ............ - - - - 35 1.50% ............ 115 5 10 196 113 1.55% ............ - - - 4 - 1.60% ............ - - - - 3 1.65% ............ 109 61 15 - 44 1.70% ............ - - - 6 - 1.75% ............ - - - 1 - 1.80% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 7,664 1,470 889 178,005 245,117 ============ ============ ============ ============ ============
(Continued) 24 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED WPPVenCap ------------ 0.95% ............ $ 58,059 1.00% ............ 22,961 1.05% ............ 10,614 1.10% ............ 295 1.15% ............ - 1.20% ............ 2,768 1.25% ............ 334 1.30% ............ 72 1.35% ............ - 1.40% ............ 6,938 1.45% ............ - 1.50% ............ - 1.55% ............ - 1.60% ............ - 1.65% ............ 1 1.70% ............ - 1.75% ............ - 1.80% ............ - ------------ Total ......... $ 102,042 ============ The following table provides mortality and expense risk charges by asset fee rate for the year ended December 31, 1998:
TOTAL ACVPIncGr ACVPint ACVPValue DrySRGro ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 6,687,096 104,919 135,323 68,970 87,632 1.00% ............ 4,480,001 64,746 74,971 44,443 63,281 1.05% ............ 1,009,646 13,006 14,635 8,106 13,367 1.10% ............ 909 46 9 4 51 1.15% ............ 244 14 9 - 15 1.20% ............ 1,510 19 2 24 13 1.25% ............ 131 - - 2 15 1.30% ............ 50 - - - 6 1.35% ............ 37 - 4 - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 12,179,624 182,750 224,953 121,549 164,380 ============ ============ ============ ============ ============
DryStkix DryCapAp FidVIPEIS FidVIPGrS FidVIPHIS ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 736,785 111,207 505,712 212,170 294,475 1.00% ............ 495,327 62,252 395,500 166,839 193,581 1.05% ............ 102,440 17,737 90,638 35,112 58,296 1.10% ............ 137 62 58 51 22 1.15% ............ 51 27 7 10 5 1.20% ............ 305 19 41 99 16 1.25% ............ 30 - 22 6 - 1.30% ............ 2 4 14 1 - 1.35% ............ 5 4 - - 4 ------------ ------------ ------------ ------------ ------------ Total ......... $ 1,335,082 191,312 991,992 414,288 546,399 ============ ============ ============ ============ ============
25
FidVIPOvS FidVIPCOnS FidVIPGrOpS MSEmMkt NSATBal ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 70,614 299,506 225,407 13,756 90,403 1.00% ............ 42,096 193,026 198,453 5,701 70,281 1.05% ............ 13,142 37,910 34,785 1,939 15,676 1.10% ............ - 67 23 - 11 1.15% ............ 2 15 - - 7 1.20% ............ 32 115 7 8 9 1.25% ............ - - - 1 - 1.30% ............ - 2 - - 1 1.35% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 125,886 530,641 458,675 21,405 176,388 ============ ============ ============ ============ ============
NSATCapAp NSATEqinc NSATGlobEq NSATGvtBd NSATHIncBd ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 465,341 34,439 39,570 325,601 70,627 1.00% ............ 270,821 27,139 28,746 228,102 51,930 1.05% ............ 52,969 5,129 8,199 64,068 17,784 1.10% ............ 81 - 5 51 - 1.15% ............ 20 1 - 13 - 1.20% ............ 17 18 - 11 14 1.25% ............ - - 2 14 1 1.30% ............ - - - 1 - 1.35% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 789,249 66,726 76,522 617,861 140,356 ============ ============ ============ ============ ============
NSATMyMkt NSATMSecBd NSATMidCap NSATSmCapV NSATSmCo ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 597,802 95,878 20,251 83,736 117,084 1.00% ............ 367,633 61,058 14,445 45,868 81,828 1.05% ............ 112,880 20,762 4,536 9,629 15,866 1.10% ............ 56 2 9 7 7 1.15% ............ 1 - - 4 - 1.20% ............ 530 20 - 35 - 1.25% ............ - 1 - 2 - 1.30% ............ - 1 - - - 1.35% ............ 16 - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 1,078,918 177,722 39,241 139,281 214,785 ============ ============ ============ ============ ============
NSATStrGro NSATStrVal NSATTotRe NBAMTGuard NBAMTMCGr ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 27,226 41,771 790,615 72,339 60,842 1.00% ............ 13,699 23,731 504,264 65,593 55,230 1.05% ............ 3,029 7,171 88,737 12,071 11,986 1.10% ............ 12 1 65 10 1 1.15% ............ - - 29 - - 1.20% ............ - 9 28 - 4 1.25% ............ - - 9 - - 1.30% ............ 1 - 8 - - 1.35% ............ - - 4 - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 43,967 72,683 1,383,759 150,013 128,063 ============ ============ ============ ============ ============
(Continued) 26 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
NBAMTPart OppAggGro OppCapAp OppGrinc VEWrldEMkt ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 403,079 66,368 97,646 118,139 15,766 1.00% ............ 264,681 43,278 61,251 87,278 11,953 1.05% ............ 43,176 9,592 15,113 21,510 2,830 1.10% ............ 16 7 5 18 - 1.15% ............ 3 2 2 5 - 1.20% ............ 17 26 6 26 14 1.25% ............ 3 5 6 - - 1.30% ............ - 4 1 4 - 1.35% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 710,975 119,282 174,030 226,980 30,563 ============ ============ ============ ============ ============
VEWrldHAs VKMSRESec WPGrinc WPIntEq WPPVenCap ------------ ------------ ------------ ------------ ------------ 0.95% ............ $ 8,058 67,026 39,367 53,651 17,995 1.00% ............ 3,644 39,789 19,708 28,614 9,221 1.05% ............ 1,503 7,635 6,454 7,209 3,019 1.10% ............ 5 8 2 - - 1.15% ............ - 2 - - - 1.20% ............ - 26 - - - 1.25% ............ - - 6 - 6 1.30% ............ - - - - - 1.35% ............ - - - - - ------------ ------------ ------------ ------------ ------------ Total ......... $ 13,210 114,486 65,537 89,474 30,241 ============ ============ ============ ============ ============
(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. 27 (4) COMPONENTS OF CONTRACT OWNERS' EQUITY The following is a summary of contract owners' equity at December 31, 1999.
ANNUAL Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Contracts in accumulation phase: Asset fee @ 0.95% rate: American Century VP - American Century VP Income & Growth: Tax Qualified .............................. 2,690,998 15.291612 41,149,697 17% Non-tax Qualified .......................... 2,833,886 15.291612 43,334,685 17% American Century VP - American Century VP International: Tax Qualified .............................. 2,425,184 19.282175 46,762,822 62% Non-tax Qualified .......................... 2,784,977 19.282175 53,700,414 62% American Century VP - American Century VP Value: Tax Qualified .............................. 954,736 10.498316 10,023,120 (2)% Non-tax Qualified .......................... 1,026,271 10.498316 10,774,117 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified .............................. 2,847,028 16.794438 47,814,235 29% Non-tax Qualified .......................... 2,125,519 16.794438 35,696,897 29% Dreyfus Stock Index Fund: Tax Qualified .............................. 14,498,220 15.692141 227,508,112 19% Non-tax Qualified .......................... 15,265,955 15.692141 239,555,518 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified .............................. 2,549,775 14.595134 37,214,308 10% Non-tax Qualified .......................... 3,204,478 14.595134 46,769,786 10% Dreyfus VIF - European Equity Fund: Tax Qualified .............................. 41,766 12.898688 538,727 29%(a) Non-tax Qualified .......................... 54,269 12.898688 699,999 29%(a) Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified .............................. 179,065 9.806807 1,756,056 (2)%(a) Non-tax Qualified .......................... 169,575 9.806807 1,662,989 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified .............................. 7,672,595 12.021290 92,234,490 5% Non-tax Qualified .......................... 7,100,475 12.021290 85,356,869 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified .............................. 7,650,757 18.830990 144,071,329 36% Non-tax Qualified .......................... 7,754,684 18.830990 146,028,377 36% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified .............................. 4,486,911 10.262325 46,046,139 7% Non-tax Qualified .......................... 4,783,500 10.262325 49,089,832 7%
(Continued) 28 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ............................... 1,153,906 15.589761 17,989,119 41% Non-tax Qualified ........................... 1,895,187 15.589761 29,545,512 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ............................... 6,845,562 15.755094 107,852,473 23% Non-tax Qualified ........................... 6,862,565 15.755094 108,120,357 23% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ............................... 3,626,724 13.235715 48,002,285 3% Non-tax Qualified ........................... 3,948,998 13.235715 52,267,812 3% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified ............................... 177,847 9.477539 1,685,552 28% Non-tax Qualified ........................... 212,802 9.477539 2,016,839 28% Nationwide SAT - Balanced Fund: Tax Qualified ............................... 1,986,315 10.834304 21,520,341 0% Non-tax Qualified ........................... 1,732,414 10.834304 18,769,500 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ............................... 7,218,822 13.808913 99,684,085 3% Non-tax Qualified ........................... 6,364,816 13.808913 87,891,190 3% Nationwide SAT - Equity Income Fund: Tax Qualified ............................... 416,097 13.600816 5,659,259 17% Non-tax Qualified ........................... 528,751 13.600816 7,191,445 17% Nationwide SAT - Global Equity Fund: Tax Qualified ............................... 567,148 14.515197 8,232,265 22% Non-tax Qualified ........................... 697,119 14.515197 10,118,820 22% Nationwide SAT - Government Bond Fund: Tax Qualified ............................... 6,202,151 10.583479 65,640,335 (3)% Non-tax Qualified ........................... 5,468,943 10.583479 57,880,443 (3)% Nationwide SAT - High Income Bond Fund: Tax Qualified ............................... 1,052,700 10.938415 11,514,869 2% Non-tax Qualified ........................... 1,171,631 10.938415 12,815,786 2% Nationwide SAT - Money Market Fund: Tax Qualified ............................... 8,459,558 10.909142 92,286,519 4% Non-tax Qualified ........................... 7,978,115 10.909142 87,034,389 4% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ............................... 1,525,742 10.313452 15,735,667 1% Non-tax Qualified ........................... 1,426,549 10.313452 14,712,645 1% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ............................... 287,257 13.078919 3,757,011 20% Non-tax Qualified ........................... 273,331 13.078919 3,574,874 20%
29
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified ............................... 123,064 20.372476 2,507,118 104%(a) Non-tax Qualified ........................... 175,712 20.372476 3,579,689 104%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ............................... 1,560,795 11.943543 18,641,422 27% Non-tax Qualified ........................... 1,724,288 11.943543 20,594,108 27% Nationwide SAT - Small Company Fund: Tax Qualified ............................... 1,832,595 13.720318 25,143,786 43% Non-tax Qualified ........................... 1,989,069 13.720318 27,290,659 43% Nationwide SAT - Strategic Growth Fund: Tax Qualified ............................... 992,231 21.195607 21,030,938 83% Non-tax Qualified ........................... 1,218,089 21.195607 25,818,136 83% Nationwide SAT - Strategic Value Fund: Tax Qualified ............................... 349,117 9.687523 3,382,079 (4)% Non-tax Qualified ........................... 506,067 9.687523 4,902,536 (4)% Nationwide SAT - Total Return Fund: Tax Qualified ............................... 12,724,239 12.689484 161,464,027 6% Non-tax Qualified ........................... 8,751,347 12.689484 111,050,078 6% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ............................... 961,809 15.595438 14,999,833 14% Non-tax Qualified ........................... 980,827 15.595438 15,296,427 14% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ............................... 1,006,419 24.609353 24,767,320 52% Non-tax Qualified ........................... 1,117,405 24.609353 27,498,614 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ............................... 3,101,826 11.122733 34,500,782 6% Non-tax Qualified ........................... 2,953,135 11.122733 32,846,932 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ............................... 1,788,303 19.295630 34,506,433 82% Non-tax Qualified ........................... 1,959,307 19.295630 37,806,063 82% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ............................... 2,455,900 16.935851 41,592,756 40% Non-tax Qualified ........................... 2,580,016 16.935851 43,694,767 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ............................... 2,722,872 12.826564 34,925,092 21% Non-tax Qualified ........................... 2,648,768 12.826564 33,974,592 21% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ............................... 710,892 11.409242 8,110,739 98% Non-tax Qualified ........................... 942,982 11.409242 10,758,710 98%
(Continued) 30 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified .............................. 220,914 7.358645 1,625,628 20% Non-tax Qualified .......................... 195,186 7.358645 1,436,304 20% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified .............................. 685,816 8.662065 5,940,583 (4)% Non-tax Qualified .......................... 759,304 8.662065 6,577,141 (4)% Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified .............................. 378,228 12.124398 4,585,787 5% Non-tax Qualified .......................... 450,717 12.124398 5,464,672 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified .............................. 686,977 14.993656 10,300,297 52% Non-tax Qualified .......................... 890,352 14.993656 13,349,632 52% Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified .............................. 336,738 16.833540 5,668,493 62% Non-tax Qualified .......................... 423,065 16.833540 7,121,682 62% Asset fee @ 1.00% rate: American Century VP - American Century VP Income & Growth: Tax Qualified .............................. 1,586,053 15.274980 24,226,928 17% Non-tax Qualified .......................... 1,607,606 15.274980 24,556,149 17% American Century VP - American Century VP International: Tax Qualified .............................. 1,533,035 19.261196 29,528,088 62% Non-tax Qualified .......................... 1,546,288 19.261196 29,783,356 62% American Century VP - American Century VP Value: Tax Qualified .............................. 468,087 10.486868 4,908,767 (2)% Non-tax Qualified .......................... 477,945 10.486868 5,012,146 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified .............................. 1,646,571 16.776156 27,623,132 29% Non-tax Qualified .......................... 1,408,453 16.776156 23,628,427 29% Dreyfus Stock Index Fund: Tax Qualified .............................. 10,096,625 15.675065 158,265,253 19% Non-tax Qualified .......................... 9,009,878 15.675065 141,230,423 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified .............................. 1,765,804 14.579248 25,744,094 10% Non-tax Qualified .......................... 1,673,895 14.579248 24,404,130 10% Dreyfus VIF - European Equity Fund: Tax Qualified .............................. 22,852 12.897004 294,722 29%(a) Non-tax Qualified .......................... 12,111 12.897004 156,196 29%(a)
31
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified .............................. 84,481 9.803523 828,211 (2)%(a) Non-tax Qualified .......................... 137,958 9.803523 1,352,474 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified .............................. 5,052,392 12.008202 60,670,144 5% Non-tax Qualified .......................... 5,482,699 12.008202 65,837,357 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified .............................. 5,450,461 18.810518 102,525,995 36% Non-tax Qualified .......................... 4,942,338 18.810518 92,967,938 36% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified .............................. 2,467,569 10.251150 25,295,420 7% Non-tax Qualified .......................... 2,678,471 10.251150 27,457,408 7% Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified .............................. 754,434 15.572798 11,748,648 41% Non-tax Qualified .......................... 703,108 15.572798 10,949,359 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified .............................. 4,360,828 15.737973 68,630,593 23% Non-tax Qualified .......................... 4,271,544 15.737973 67,225,444 23% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified .............................. 2,904,875 13.221287 38,406,186 3% Non-tax Qualified .......................... 2,903,624 13.221287 38,389,646 3% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified .............................. 82,636 9.467196 782,331 28% Non-tax Qualified .......................... 69,175 9.467196 654,893 28% Nationwide SAT - Balanced Fund: Tax Qualified .............................. 1,274,299 10.822502 13,791,103 0% Non-tax Qualified .......................... 1,025,400 10.822502 11,097,394 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified .............................. 4,491,316 13.793878 61,952,665 3% Non-tax Qualified .......................... 3,382,879 13.793878 46,663,020 3% Nationwide SAT - Equity Income Fund: Tax Qualified .............................. 328,594 13.586032 4,464,289 17% Non-tax Qualified .......................... 411,828 13.586032 5,595,108 17% Nationwide SAT - Global Equity Fund: Tax Qualified .............................. 331,568 14.499401 4,807,537 22% Non-tax Qualified .......................... 402,444 14.499401 5,835,197 22% Nationwide SAT - Government Bond Fund: Tax Qualified .............................. 3,887,245 10.571951 41,095,764 (3)% Non-tax Qualified .......................... 3,354,315 10.571951 35,461,654 (3)%
(Continued) 32 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - High Income Bond Fund: Tax Qualified .............................. 729,292 10.926498 7,968,608 2% Non-tax Qualified .......................... 771,554 10.926498 8,430,383 2% Nationwide SAT - Money Market Fund: Tax Qualified .............................. 4,438,660 10.897217 48,369,041 4% Non-tax Qualified .......................... 4,647,437 10.897217 50,644,129 4% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified .............................. 895,547 10.302225 9,226,127 1% Non-tax Qualified .......................... 867,916 10.302225 8,941,466 1% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified .............................. 180,877 13.064679 2,363,100 20% Non-tax Qualified .......................... 171,721 13.064679 2,243,480 20% Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified .............................. 78,533 20.365684 1,599,378 104%(a) Non-tax Qualified .......................... 81,709 20.365684 1,664,060 104%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified .............................. 750,886 11.930542 8,958,477 27% Non-tax Qualified .......................... 704,595 11.930542 8,406,200 27% Nationwide SAT - Small Company Fund: Tax Qualified .............................. 1,081,909 13.705373 14,827,966 43% Non-tax Qualified .......................... 1,081,295 13.705373 14,819,551 43% Nationwide SAT - Strategic Growth Fund: Tax Qualified .............................. 513,063 21.172544 10,862,849 83% Non-tax Qualified .......................... 614,259 21.172544 13,005,426 83% Nationwide SAT - Strategic Value Fund: Tax Qualified .............................. 166,391 9.676976 1,610,162 (4)% Non-tax Qualified .......................... 222,806 9.676976 2,156,088 (4)% Nationwide SAT - Total Return Fund: Tax Qualified .............................. 8,158,035 12.675660 103,408,478 6% Non-tax Qualified .......................... 6,056,435 12.675660 76,769,311 6% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified .............................. 735,905 15.578481 11,464,282 14% Non-tax Qualified .......................... 627,956 15.578481 9,782,601 14% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified .............................. 625,238 24.582570 15,369,957 52% Non-tax Qualified .......................... 647,732 24.582570 15,922,917 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified .............................. 2,114,112 11.110632 23,489,120 6% Non-tax Qualified .......................... 2,074,401 11.110632 23,047,906 6%
33
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified .............................. 992,375 19.274630 19,127,661 82% Non-tax Qualified .......................... 1,028,055 19.274630 19,815,380 82% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified .............................. 1,696,031 16.917425 28,692,477 40% Non-tax Qualified .......................... 1,605,365 16.917425 27,158,642 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified .............................. 1,667,923 12.812596 21,370,424 20% Non-tax Qualified .......................... 1,778,201 12.812596 22,783,371 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified .............................. 357,687 11.396847 4,076,504 98% Non-tax Qualified .......................... 359,944 11.396847 4,102,227 98% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified .............................. 116,193 7.350618 854,090 20% Non-tax Qualified .......................... 100,478 7.350618 738,575 20% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified .............................. 385,417 8.652617 3,334,866 (4)% Non-tax Qualified .......................... 264,581 8.652617 2,289,318 (4)% Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified .............................. 192,234 12.111181 2,328,181 5% Non-tax Qualified .......................... 262,414 12.111181 3,178,143 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified .............................. 290,968 14.977312 4,357,919 52% Non-tax Qualified .......................... 329,905 14.977312 4,941,090 52% Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified .............................. 169,900 16.815230 2,856,908 62% Non-tax Qualified .......................... 133,486 16.815230 2,244,598 62% Asset fee @ 1.05% rate: American Century VP - American Century VP Income & Growth: Tax Qualified .............................. 198,463 15.258324 3,028,213 17% Non-tax Qualified .......................... 322,820 15.258324 4,925,692 17% American Century VP - American Century VP International: Tax Qualified .............................. 179,327 19.240268 3,450,300 62% Non-tax Qualified .......................... 314,342 19.240268 6,048,024 62% American Century VP - American Century VP Value: Tax Qualified .............................. 100,979 10.475442 1,057,800 (2)% Non-tax Qualified .......................... 110,453 10.475442 1,157,044 (2)%
(Continued) 34 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ............................... 190,962 16.757880 3,200,118 29% Non-tax Qualified ........................... 323,823 16.757880 5,426,587 29% Dreyfus Stock Index Fund: Tax Qualified ............................... 1,431,726 15.657978 22,417,934 19% Non-tax Qualified ........................... 1,815,547 15.657978 28,427,795 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ............................... 347,448 14.563385 5,060,019 10% Non-tax Qualified ........................... 488,188 14.563385 7,109,670 10% Dreyfus VIF - European Equity Fund: Tax Qualified ............................... 888 12.895311 11,451 29%(a) Non-tax Qualified ........................... 1,301 12.895311 16,777 29%(a) Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified ............................... 13,067 9.800240 128,060 (2)%(a) Non-tax Qualified ........................... 13,067 9.800240 128,060 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ............................... 828,159 11.995103 9,933,853 5% Non-tax Qualified ........................... 1,450,150 11.995103 17,394,699 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ............................... 624,895 18.790040 11,741,802 36% Non-tax Qualified ........................... 990,036 18.790040 18,602,816 36% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ............................... 763,280 10.239981 7,815,973 7% Non-tax Qualified ........................... 837,266 10.239981 8,573,588 7% Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ............................... 146,217 15.555856 2,274,531 41% Non-tax Qualified ........................... 210,666 15.555856 3,277,090 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ............................... 509,735 15.720833 8,013,459 23% Non-tax Qualified ........................... 791,505 15.720833 12,443,118 23% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ............................... 427,715 13.206894 5,648,787 3% Non-tax Qualified ........................... 467,419 13.206894 6,173,153 3% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified ............................... 20,165 9.456874 190,698 28% Non-tax Qualified ........................... 24,015 9.456874 227,107 28%
35
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Balanced Fund: Tax Qualified ............................... 154,427 10.810714 1,669,466 0% Non-tax Qualified ........................... 230,363 10.810714 2,490,389 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ............................... 619,838 13.778852 8,540,656 3% Non-tax Qualified ........................... 696,071 13.778852 9,591,059 3% Nationwide SAT - Equity Income Fund: Tax Qualified ............................... 59,154 13.571227 802,792 17% Non-tax Qualified ........................... 81,119 13.571227 1,100,884 17% Nationwide SAT - Global Equity Fund: Tax Qualified ............................... 72,658 14.483618 1,052,351 22% Non-tax Qualified ........................... 93,078 14.483618 1,348,106 22% Nationwide SAT - Government Bond Fund: Tax Qualified ............................... 632,014 10.560422 6,674,335 (3)% Non-tax Qualified ........................... 905,782 10.560422 9,565,440 (3)% Nationwide SAT - High Income Bond Fund: Tax Qualified ............................... 179,156 10.914588 1,955,414 2% Non-tax Qualified ........................... 286,727 10.914588 3,129,507 2% Nationwide SAT - Money Market Fund: Tax Qualified ............................... 936,225 10.885293 10,191,083 4% Non-tax Qualified ........................... 1,266,352 10.885293 13,784,613 4% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ............................... 196,859 10.290997 2,025,875 0% Non-tax Qualified ........................... 314,788 10.290997 3,239,482 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ............................... 42,315 13.050437 552,229 20% Non-tax Qualified ........................... 46,779 13.050437 610,486 20% Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified ............................... 7,378 20.358893 150,208 104%(a) Non-tax Qualified ........................... 26,356 20.358893 536,579 104%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ............................... 133,437 11.917534 1,590,240 26% Non-tax Qualified ........................... 226,896 11.917534 2,704,041 26% Nationwide SAT - Small Company Fund: Tax Qualified ............................... 135,871 13.690433 1,860,133 43% Non-tax Qualified ........................... 236,341 13.690433 3,235,611 43% Nationwide SAT - Strategic Growth Fund: Tax Qualified ............................... 64,464 21.149503 1,363,382 83% Non-tax Qualified ........................... 96,599 21.149503 2,043,021 83% Nationwide SAT - Strategic Value Fund: Tax Qualified ............................... 38,395 9.666432 371,143 (4)% Non-tax Qualified ........................... 82,657 9.666432 798,998 (4)%
(Continued) 36 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Total Return Fund: Tax Qualified ............................. 1,030,024 12.661861 13,042,021 6% Non-tax Qualified ......................... 1,055,012 12.661861 13,358,415 6% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ............................. 89,533 15.561518 1,393,269 14% Non-tax Qualified ......................... 196,408 15.561518 3,056,407 14% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ............................. 103,766 24.555839 2,548,061 52% Non-tax Qualified ......................... 174,869 24.555839 4,294,055 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ............................. 278,907 11.098514 3,095,453 6% Non-tax Qualified ......................... 352,606 11.098514 3,913,403 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ............................. 138,526 19.253639 2,667,130 82% Non-tax Qualified ......................... 196,300 19.253639 3,779,489 82% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ............................. 256,505 16.898986 4,334,674 40% Non-tax Qualified ......................... 294,848 16.898986 4,982,632 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ............................. 277,065 12.798619 3,546,049 20% Non-tax Qualified ......................... 459,069 12.798619 5,875,449 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ............................. 66,888 11.384426 761,481 98% Non-tax Qualified ......................... 80,175 11.384426 912,746 98% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified ............................. 33,535 7.342607 246,234 20% Non-tax Qualified ......................... 19,917 7.342607 146,243 20% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified ............................. 52,923 8.643190 457,424 (4)% Non-tax Qualified ......................... 80,562 8.643190 696,313 (4)% Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified ............................. 21,640 12.098010 261,801 5% Non-tax Qualified ......................... 101,514 12.098010 1,228,117 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified ............................. 69,477 14.961024 1,039,447 52% Non-tax Qualified ......................... 84,777 14.961024 1,268,351 52%
37
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified............................... 39,482 16.796919 663,176 62% Non-tax Qualified........................... 65,236 16.796919 1,095,764 62% Asset fee @ 1.10% rate: American Century VP - American Century VP Income & Growth: Tax Qualified............................... 222,417 14.608384 3,249,153 17% Non-tax Qualified........................... 29,546 14.608384 431,619 17% American Century VP - American Century VP International: Tax Qualified............................... 41,404 19.569739 810,265 62% Non-tax Qualified........................... 14,836 19.569739 290,337 62% American Century VP - American Century VP Value: Tax Qualified............................... 11,136 11.060928 123,174 (2)% Non-tax Qualified........................... 4,147 11.060928 45,870 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified............................... 465,748 16.447766 7,660,514 29% Non-tax Qualified........................... 42,230 16.447766 694,589 29% Dreyfus Stock Index Fund: Tax Qualified............................... 779,350 14.867150 11,586,713 19% Non-tax Qualified........................... 110,264 14.867150 1,639,311 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified............................... 194,676 13.657521 2,658,792 10% Non-tax Qualified........................... 19,399 13.657521 264,942 10% Dreyfus VIF - European Equity Fund: Tax Qualified............................... 101 12.893630 1,302 29%(a) Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified............................... 2,380 9.796953 23,317 (2)%(a) Non-tax Qualified........................... 3,679 9.796953 36,043 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified............................... 168,053 12.410474 2,085,617 5% Non-tax Qualified........................... 60,188 12.410474 746,962 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified............................... 396,464 17.534950 6,951,976 36% Non-tax Qualified........................... 82,691 17.534950 1,449,983 36% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified............................... 97,542 11.255695 1,097,903 7% Non-tax Qualified........................... 12,538 11.255695 141,124 7%
(Continued) 38 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ................................ 16,652 17.171657 285,942 41% Non-tax Qualified ............................ 7,383 17.171657 126,778 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ................................ 357,916 15.712599 5,623,791 23% Non-tax Qualified ............................ 53,716 15.712599 844,018 23% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................ 60,701 12.683293 769,889 3% Non-tax Qualified ............................ 18,169 12.683293 230,443 3% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified ................................ 1,189 14.580968 17,337 28% Non-tax Qualified ............................ 167 14.580968 2,435 28% Nationwide SAT - Balanced Fund: Tax Qualified ................................ 32,797 10.651741 349,345 0% Non-tax Qualified ............................ 9,454 10.651741 100,702 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ................................ 286,356 12.829034 3,673,671 3% Non-tax Qualified ............................ 73,395 12.829034 941,587 3% Nationwide SAT - Equity Income Fund: Tax Qualified ................................ 5,677 13.882376 78,810 17% Non-tax Qualified ............................ 1,067 13.882376 14,812 17% Nationwide SAT - Global Equity Fund: Tax Qualified ................................ 20,185 14.846771 299,682 22% Non-tax Qualified ............................ 4,952 14.846771 73,521 22% Nationwide SAT - Government Bond Fund: Tax Qualified ................................ 163,660 9.515930 1,557,377 (3)% Non-tax Qualified ............................ 38,632 9.515930 367,619 (3)% Nationwide SAT - High Income Bond Fund: Tax Qualified ................................ 9,774 10.552305 103,138 2% Non-tax Qualified ............................ 1,849 10.552305 19,511 2% Nationwide SAT - Money Market Fund: Tax Qualified ................................ 181,296 10.468792 1,897,950 4% Non-tax Qualified ............................ 44,218 10.468792 462,909 4% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ................................ 2,820 10.290756 29,020 0% Non-tax Qualified ............................ 1,818 10.290756 18,709 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ................................ 6,679 14.654661 97,878 20% Non-tax Qualified ............................ 310 14.654661 4,543 20%
39
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified ................................ 1,653 20.352098 33,642 104%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ................................ 47,149 16.391038 772,821 26% Non-tax Qualified ............................ 3,348 16.391038 54,877 26% Nationwide SAT - Small Company Fund: Tax Qualified ................................ 27,603 17.267747 476,642 42% Non-tax Qualified ............................ 3,714 17.267747 64,132 42% Nationwide SAT - Strategic Growth Fund: Tax Qualified ................................ 34,606 23.148836 801,089 83% Non-tax Qualified ............................ 7,117 23.148836 164,750 83% Nationwide SAT - Strategic Value Fund: Tax Qualified ................................ 3,117 12.489739 38,931 (4)% Non-tax Qualified ............................ 419 12.489739 5,233 (4)% Nationwide SAT - Total Return Fund: Tax Qualified ................................ 502,732 12.684916 6,377,113 6% Non-tax Qualified ............................ 114,438 12.684916 1,451,636 6% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ................................ 58,521 14.648600 857,251 14% Non-tax Qualified ............................ 5,523 14.648600 80,904 14% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................ 57,486 21.426404 1,231,718 52% Non-tax Qualified ............................ 6,612 21.426404 141,671 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ................................ 32,593 12.591929 410,409 6% Non-tax Qualified ............................ 6,025 12.591929 75,866 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ................................ 60,543 23.954947 1,450,304 82% Non-tax Qualified ............................ 13,307 23.954947 318,768 82% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ................................ 89,709 18.556149 1,664,654 40% Non-tax Qualified ............................ 17,465 18.556149 324,083 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................ 45,934 14.854438 682,324 20% Non-tax Qualified ............................ 16,741 14.854438 248,678 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ................................ 5,224 25.026598 130,739 98% Non-tax Qualified ............................ 1,848 25.026598 46,249 98%
(Continued) 40 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified............................... 1,570 11.869689 18,635 20% Non-tax Qualified........................... 44 11.869689 522 20% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified............................... 3,839 9.949557 38,196 (4)% Non-tax Qualified........................... 223 9.949557 2,219 (4)% Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified............................... 2,110 12.499772 26,375 5% Non-tax Qualified........................... 136 12.499772 1,700 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified............................... 2,131 17.529681 37,356 52% Non-tax Qualified........................... 201 17.529681 3,523 52% Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified............................... 1,939 20.760969 40,256 62% Non-tax Qualified........................... 1,102 20.760969 22,879 62% Asset fee @ 1.15% rate: American Century VP - American Century VP Income & Growth: Tax Qualified............................... 41,838 14.599165 610,800 17% Non-tax Qualified........................... 872 14.599165 12,730 17% American Century VP - American Century VP International: Tax Qualified............................... 13,984 19.557409 273,491 62% Non-tax Qualified........................... 1,685 19.557409 32,954 62% American Century VP - American Century VP Value: Tax Qualified............................... 780 11.053935 8,622 (2)% Non-tax Qualified........................... 2,303 11.053935 25,457 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified............................... 73,377 16.437396 1,206,127 29% Non-tax Qualified........................... 7,945 16.437396 130,595 29% Dreyfus Stock Index Fund: Tax Qualified............................... 191,388 14.857773 2,843,599 19% Non-tax Qualified........................... 30,346 14.857773 450,874 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified............................... 66,469 13.648909 907,229 10% Non-tax Qualified........................... 5,722 13.648909 78,099 10% Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified............................... 82 9.793677 803 (2)%(a) Non-tax Qualified........................... 3,439 9.793677 33,680 (2)%(a)
41
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................. 30,049 12.402631 372,687 5% Non-tax Qualified ............................. 9,774 12.402631 121,223 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ................................. 99,919 17.523903 1,750,971 36% Non-tax Qualified ............................. 22,750 17.523903 398,669 36% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ................................. 22,133 11.248584 248,965 7% Non-tax Qualified ............................. 4,648 11.248584 52,283 7% Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ................................. 3,415 17.160838 58,604 41% Non-tax Qualified ............................. 252 17.160838 4,325 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ................................. 60,592 15.702687 951,457 23% Non-tax Qualified ............................. 9,052 15.702687 142,141 23% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................. 9,541 12.675276 120,935 3% Non-tax Qualified ............................. 5,617 12.675276 71,197 3% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified ................................. 110 14.571756 1,603 28% Non-tax Qualified ............................. 191 14.571756 2,783 28% Nationwide SAT - Balanced Fund: Tax Qualified ................................. 6,878 10.645005 73,216 0% Non-tax Qualified ............................. 443 10.645005 4,716 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ................................. 126,187 12.820934 1,617,835 3% Non-tax Qualified ............................. 19,193 12.820934 246,072 3% Nationwide SAT - Equity Income Fund: Tax Qualified ................................. 1,743 13.873607 24,182 17% Non-tax Qualified ............................. 835 13.873607 11,584 17% Nationwide SAT - Global Equity Fund: Tax Qualified ................................. 5,296 14.837408 78,579 22% Non-tax Qualified ............................. 277 14.837408 4,110 22% Nationwide SAT - Government Bond Fund: Tax Qualified ................................. 71,434 9.509925 679,332 (3)% Non-tax Qualified ............................. 15,177 9.509925 144,332 (3)% Nationwide SAT - High Income Bond Fund: Tax Qualified ................................. 958 10.545637 10,103 2% Non-tax Qualified ............................. 428 10.545637 4,514 2%
(Continued) 42 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Money Market Fund: Tax Qualified ................................ 14,690 10.462170 153,689 4% Non-tax Qualified ............................ 3,569 10.462170 37,339 4% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ................................ 1,562 10.284262 16,064 0% Non-tax Qualified ............................ 2,287 10.284262 23,520 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ................................ 927 14.645409 13,576 20% Non-tax Qualified ............................ 30 14.645409 439 20% Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified ................................ 346 20.345317 7,039 103%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ................................ 9,141 16.380692 149,736 26% Non-tax Qualified ............................ 1,774 16.380692 29,059 26% Nationwide SAT - Small Company Fund: Tax Qualified ................................ 3,239 17.256864 55,895 42% Non-tax Qualified ............................ 6,788 17.256864 117,140 42% Nationwide SAT - Strategic Growth Fund: Tax Qualified ................................ 5,918 23.134244 136,908 83% Non-tax Qualified ............................ 626 23.134244 14,482 83% Nationwide SAT - Strategic Value Fund: Tax Qualified ................................ 1,129 12.481871 14,092 (4)% Nationwide SAT - Total Return Fund: Tax Qualified ................................ 109,816 12.676933 1,392,130 6% Non-tax Qualified ............................ 30,070 12.676933 381,195 6% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ................................ 11,569 14.639366 169,363 14% Non-tax Qualified ............................ 1,080 14.639366 15,811 14% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................ 8,306 21.412911 177,856 52% Non-tax Qualified ............................ 271 21.412911 5,803 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ................................ 12,897 12.583972 162,295 6% Non-tax Qualified ............................ 416 12.583972 5,235 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ................................ 15,859 23.939845 379,662 81% Non-tax Qualified ............................ 2,162 23.939845 51,758 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ................................ 22,240 18.544459 412,429 40% Non-tax Qualified ............................ 6,950 18.544459 128,884 40%
43
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................ 13,715 14.845060 203,600 20% Non-tax Qualified ............................ 3,367 14.845060 49,983 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ................................ 1,298 25.010854 32,464 98% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified ................................ 749 11.862189 8,885 20% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified ................................ 955 9.943271 9,496 (4)% Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified ................................ 1,740 12.491882 21,736 5% Non-tax Qualified ............................ 1,140 12.491882 14,241 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified ................................ 39 17.518646 683 52% Non-tax Qualified ............................ 2,167 17.518646 37,963 52% Asset fee @ 1.20% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ................................ 390,363 14.495483 5,658,500 17% Non-tax Qualified ............................ 453,751 14.495483 6,577,340 17% American Century VP - American Century VP International: Tax Qualified ................................ 310,968 17.674116 5,496,085 62% Non-tax Qualified ............................ 776,659 17.674116 13,726,761 62% American Century VP - American Century VP Value: Tax Qualified ................................ 144,253 11.263216 1,624,753 (2)% Non-tax Qualified ............................ 206,988 11.263216 2,331,351 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................ 211,081 16.397708 3,461,245 29% Non-tax Qualified ............................ 352,551 16.397708 5,781,028 29% Dreyfus Stock Index Fund: Tax Qualified ................................ 1,214,481 14.736468 17,897,160 19% Non-tax Qualified ............................ 2,733,494 14.736468 40,282,047 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ................................ 248,570 13.442893 3,341,500 10% Non-tax Qualified ............................ 529,646 13.442893 7,119,975 10% Dreyfus VIF - European Equity Fund: Tax Qualified ................................ 9,327 12.890242 120,227 29%(a) Non-tax Qualified ............................ 14,047 12.890242 181,069 29%(a)
(Continued) 44 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified ................................ 37,796 9.790385 370,037 (2)%(a) Non-tax Qualified ............................ 71,657 9.790385 701,550 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................ 490,730 12.440601 6,104,976 5% Non-tax Qualified ............................ 1,018,907 12.440601 12,675,815 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ................................ 1,060,518 17.653733 18,722,102 36% Non-tax Qualified ............................ 2,167,614 17.653733 38,266,479 36% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ................................ 394,597 11.087928 4,375,263 7% Non-tax Qualified ............................ 1,947,554 11.087928 21,594,339 7% Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ................................ 228,568 15.900927 3,634,443 41% Non-tax Qualified ............................ 472,612 15.900927 7,514,969 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ................................ 753,984 15.457984 11,655,073 23% Non-tax Qualified ............................ 1,358,802 15.457984 21,004,340 23% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................ 300,684 12.785954 3,844,532 3% Non-tax Qualified ............................ 782,813 12.785954 10,009,011 3% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified ................................ 21,613 14.572201 314,949 28% Non-tax Qualified ............................ 44,276 14.572201 645,199 28% Nationwide SAT - Balanced Fund: Tax Qualified ................................ 104,760 10.735723 1,124,674 0% Non-tax Qualified ............................ 158,605 10.735723 1,702,739 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ................................ 288,532 12.767993 3,683,975 3% Non-tax Qualified ............................ 668,662 12.767993 8,537,472 3% Nationwide SAT - Equity Income Fund: Tax Qualified ................................ 31,013 13.963829 433,060 17% Non-tax Qualified ............................ 66,421 13.963829 927,491 17% Nationwide SAT - Global Equity Fund: Tax Qualified ................................ 58,262 14.267173 831,234 21% Non-tax Qualified ............................ 151,804 14.267173 2,165,814 21%
45
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Government Bond Fund: Tax Qualified ............................ 446,335 9.816007 4,381,227 (4)% Non-tax Qualified ........................ 1,049,111 9.816007 10,298,081 (4)% Nationwide SAT - High Income Bond Fund: Tax Qualified ............................ 71,728 10.764664 772,128 2% Non-tax Qualified ........................ 141,476 10.764664 1,522,942 2% Nationwide SAT - Money Market Fund: Tax Qualified ............................ 1,603,815 10.489614 16,823,400 4% Non-tax Qualified ........................ 5,432,154 10.489614 56,981,199 4% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ............................ 83,987 10.510552 882,750 0% Non-tax Qualified ........................ 292,600 10.510552 3,075,388 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ............................ 26,844 14.644558 393,119 19% Non-tax Qualified ........................ 56,268 14.644558 824,020 19% Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified ............................ 29,934 20.338511 608,813 103%(a) Non-tax Qualified ........................ 40,321 20.338511 820,069 103%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ............................ 73,887 15.896867 1,174,572 26% Non-tax Qualified ........................ 228,412 15.896867 3,631,035 26% Nationwide SAT - Small Company Fund: Tax Qualified ............................ 105,198 17.099098 1,798,791 42% Non-tax Qualified ........................ 624,875 17.099098 10,684,799 42% Nationwide SAT - Strategic Growth Fund: Tax Qualified ............................ 96,278 22.750997 2,190,420 83% Non-tax Qualified ........................ 201,108 22.750997 4,575,408 83% Nationwide SAT - Strategic Value Fund: Tax Qualified ............................ 16,167 11.949113 193,181 (4)% Non-tax Qualified ........................ 23,436 11.949113 280,039 (4)% Nationwide SAT - Total Return Fund: Tax Qualified ............................ 347,616 12.646339 4,396,070 6% Non-tax Qualified ........................ 697,017 12.646339 8,814,713 6% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ............................ 127,606 13.976229 1,783,451 14% Non-tax Qualified ........................ 282,638 13.976229 3,950,213 14% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ............................ 124,678 20.834304 2,597,579 52% Non-tax Qualified ........................ 324,267 20.834304 6,755,877 52%
(Continued) 46 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ............................... 93,733 12.539993 1,175,411 6% Non-tax Qualified ........................... 219,432 12.539993 2,751,676 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ............................... 87,884 23.512658 2,066,386 81% Non-tax Qualified ........................... 858,422 23.512658 20,183,783 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ............................... 202,090 17.848621 3,607,028 40% Non-tax Qualified ........................... 434,906 17.848621 7,762,472 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ............................... 231,091 14.609212 3,376,057 20% Non-tax Qualified ........................... 615,542 14.609212 8,992,584 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ............................... 48,845 23.947713 1,169,726 98% Non-tax Qualified ........................... 117,449 23.947713 2,812,635 98% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified ............................... 37,006 12.649846 468,120 20% Non-tax Qualified ........................... 53,488 12.649846 676,615 20% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified ............................... 41,224 10.253920 422,708 (5)% Non-tax Qualified ........................... 113,232 10.253920 1,161,072 (5)% Victory VIF - Diversified Stock Fund - Class A: Tax Qualified ............................... 69,363 10.060160 697,803 1%(a) Non-tax Qualified ........................... 219,452 10.060160 2,207,722 1%(a) Victory VIF - Investment Quality Bond Fund - Class A: Tax Qualified ............................... 21,371 9.930934 212,234 (1)%(a) Non-tax Qualified ........................... 50,141 9.930934 497,947 (1)%(a) Victory VIF - Small Company Opportunity Fund - Class A: Tax Qualified ............................... 2,419 9.896766 23,940 (1)%(a) Non-tax Qualified ........................... 33,474 9.896766 331,284 (1)%(a) Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified .................................. 40,679 12.269490 499,111 5% Non-tax Qualified ........................... 35,459 12.269490 435,064 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified ............................... 56,396 16.374564 923,460 52% Non-tax Qualified ........................... 319,083 16.374564 5,224,845 52%
47
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified ................................ 23,863 20.579437 491,087 62% Non-tax Qualified ............................ 51,497 20.579437 1,059,779 62% Asset fee @ 1.25% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ................................ 32,451 14.485724 470,076 17% Non-tax Qualified ............................ 73,685 14.485724 1,067,381 17% American Century VP - American Century VP International: Tax Qualified ................................ 16,086 17.662250 284,115 62% Non-tax Qualified ............................ 39,926 17.662250 705,183 62% American Century VP - American Century VP Value: Tax Qualified ................................ 10,844 11.255628 122,056 (2)% Non-tax Qualified ............................ 28,843 11.255628 324,646 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................ 23,551 16.386683 385,923 28% Non-tax Qualified ............................ 24,892 16.386683 407,897 28% Dreyfus Stock Index Fund: Tax Qualified ................................ 115,398 14.726559 1,699,415 19% Non-tax Qualified ............................ 168,383 14.726559 2,479,702 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ................................ 17,550 13.433832 235,764 10% Non-tax Qualified ............................ 32,907 13.433832 442,067 10% Dreyfus VIF - European Equity Fund: Tax Qualified ................................ 2,408 12.888550 31,036 29%(a) Non-tax Qualified ............................ 83 12.888550 1,070 29%(a) Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified ................................ 407 9.787093 3,983 (2)%(a) Non-tax Qualified ............................ 441 9.787093 4,316 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................ 53,847 12.432231 669,438 5% Non-tax Qualified ............................ 113,198 12.432231 1,407,304 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ................................ 67,791 17.641868 1,195,960 36% Non-tax Qualified ............................ 131,571 17.641868 2,321,158 36% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ................................ 21,064 11.080460 233,399 7% Non-tax Qualified ............................ 37,233 11.080460 412,559 7%
(Continued) 48 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ................................. 6,292 15.890221 99,981 41% Non-tax Qualified ............................. 47,996 15.890221 762,667 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ................................. 46,664 15.447579 720,846 23% Non-tax Qualified ............................. 87,382 15.447579 1,349,840 23% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................. 21,257 12.777351 271,608 3% Non-tax Qualified ............................. 33,643 12.777351 429,868 3% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified ................................. 164 14.562396 2,388 28% Non-tax Qualified ............................. 315 14.562396 4,587 28% Nationwide SAT - Balanced Fund: Tax Qualified ................................. 3,364 10.728485 36,091 0% Non-tax Qualified ............................. 12,442 10.728485 133,484 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ................................. 44,120 12.759401 562,945 3% Non-tax Qualified ............................. 38,127 12.759401 486,478 3% Nationwide SAT - Equity Income Fund: Tax Qualified ................................. 1,513 13.954430 21,113 17% Non-tax Qualified ............................. 2,255 13.954430 31,467 17% Nationwide SAT - Global Equity Fund: Tax Qualified ................................. 1,280 14.257588 18,250 21% Non-tax Qualified ............................. 16,120 14.257588 229,832 21% Nationwide SAT - Government Bond Fund: Tax Qualified ................................. 31,768 9.809384 311,625 (4)% Non-tax Qualified ............................. 45,842 9.809384 449,682 (4)% Nationwide SAT - High Income Bond Fund: Tax Qualified ................................. 2,505 10.757403 26,947 2% Non-tax Qualified ............................. 9,925 10.757403 106,767 2% Nationwide SAT - Money Market Fund: Tax Qualified ................................. 114,913 10.482530 1,204,579 4% Non-tax Qualified ............................. 84,738 10.482530 888,269 4% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ................................. 182 10.503468 1,912 0% Non-tax Qualified ............................. 3,903 10.503468 40,995 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ................................. 82 14.634711 1,200 19% Non-tax Qualified ............................. 3,058 14.634711 44,753 19%
49
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified .................................. 681 20.331712 13,846 103%(a) Non-tax Qualified .............................. 3,667 20.331712 74,556 103%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified .................................. 8,738 15.886176 138,813 26% Non-tax Qualified .............................. 7,074 15.886176 112,379 26% Nationwide SAT - Small Company Fund: Tax Qualified .................................. 5,336 17.087592 91,179 42% Non-tax Qualified .............................. 15,997 17.087592 273,350 42% Nationwide SAT - Strategic Growth Fund: Tax Qualified .................................. 10,320 22.735718 234,633 82% Non-tax Qualified .............................. 26,153 22.735718 594,607 82% Nationwide SAT - Strategic Value Fund: Non-tax Qualified .............................. 6,717 11.941061 80,208 (4)% Nationwide SAT - Total Return Fund: Tax Qualified .................................. 60,863 12.637807 769,175 6% Non-tax Qualified .............................. 40,210 12.637807 508,166 6% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified .................................. 5,731 13.966839 80,044 13% Non-tax Qualified .............................. 8,235 13.966839 115,017 13% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified .................................. 7,129 20.820318 148,428 52% Non-tax Qualified .............................. 21,720 20.820318 452,217 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified .................................. 5,718 12.531553 71,655 6% Non-tax Qualified .............................. 31,254 12.531553 391,661 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified .................................. 13,081 23.496887 307,363 81% Non-tax Qualified .............................. 35,413 23.496887 832,095 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified .................................. 15,853 17.836627 282,764 40% Non-tax Qualified .............................. 38,019 17.836627 678,131 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified .................................. 26,462 14.599387 386,329 20% Non-tax Qualified .............................. 74,917 14.599387 1,093,742 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified .................................. 2,640 23.931619 63,179 98% Non-tax Qualified .............................. 7,039 23.931619 168,455 98%
(Continued) 50 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified ................................ 57 12.641312 721 19% Non-tax Qualified ............................ 695 12.641312 8,786 19% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified ................................ 1,283 10.247016 13,147 (5)% Non-tax Qualified ............................ 557 10.247016 5,708 (5)% Victory VIF - Diversified Stock Fund - Class A: Non-tax Qualified ............................ 4,891 10.057633 49,192 1%(a) Victory VIF - Investment Quality Bond Fund - Class A: Non-tax Qualified ............................ 883 9.928452 8,767 (1)%(a) Victory VIF - Small Company Opportunity Fund - Class A: Non-tax Qualified ............................ 772 9.894290 7,638 (1)%(a) Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified ................................ 3,436 12.261224 42,130 5% Non-tax Qualified ............................ 1,916 12.261224 23,493 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified ................................ 18,145 16.363554 296,917 52% Non-tax Qualified ............................ 7,363 16.363554 120,485 52% Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified ................................ 3,938 20.565582 80,987 61% Non-tax Qualified ............................ 175 20.565582 3,599 61% Asset fee @ 1.30% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ................................ 107,904 14.475981 1,562,016 16% Non-tax Qualified ............................ 108,159 14.475981 1,565,708 16% American Century VP - American Century VP International: Tax Qualified ................................ 72,753 17.650383 1,284,118 62% Non-tax Qualified ............................ 110,844 17.650383 1,956,439 62% American Century VP - American Century VP Value: Tax Qualified ................................ 12,775 11.248045 143,694 (2)% Non-tax Qualified ............................ 28,730 11.248045 323,156 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................ 66,205 16.375662 1,084,151 28% Non-tax Qualified ............................ 61,114 16.375662 1,000,782 28%
51 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Dreyfus Stock Index Fund: Tax Qualified ............................. 684,723 14.716647 10,076,827 19% Non-tax Qualified ......................... 1,041,506 14.716647 15,327,476 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ............................. 124,739 13.424790 1,674,595 10% Non-tax Qualified ......................... 114,009 13.424790 1,530,547 10% Dreyfus VIF - European Equity Fund: Tax Qualified ............................. 1,134 12.886864 14,614 29%(a) Non-tax Qualified ......................... 3,490 12.886864 44,975 29%(a) Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified ............................. 19,483 9.783812 190,618 (2)%(a) Non-tax Qualified ......................... 15,280 9.783812 149,497 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ............................. 173,109 12.423854 2,150,681 5% Non-tax Qualified ......................... 182,235 12.423854 2,264,061 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ............................. 348,114 17.630000 6,137,250 36% Non-tax Qualified ......................... 551,381 17.630000 9,720,847 36% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ............................. 132,077 11.072984 1,462,487 7% Non-tax Qualified ......................... 147,420 11.072984 1,632,379 7% Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ............................. 86,682 15.879549 1,376,471 41% Non-tax Qualified ......................... 124,203 15.879549 1,972,288 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ............................. 198,360 15.437189 3,062,121 23% Non-tax Qualified ......................... 274,482 15.437189 4,237,231 23% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ............................. 89,914 12.768758 1,148,090 3% Non-tax Qualified ......................... 105,265 12.768758 1,344,103 3% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified ............................. 3,978 14.552579 57,890 28% Non-tax Qualified ......................... 6,216 14.552579 90,459 28% Nationwide SAT - Balanced Fund: Tax Qualified ............................. 17,631 10.721257 189,026 0% Non-tax Qualified ......................... 45,688 10.721257 489,833 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ............................. 104,562 12.750810 1,333,250 3% Non-tax Qualified ......................... 341,164 12.750810 4,350,117 3%
(Continued) 52 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Equity Income Fund: Tax Qualified ............................. 7,226 13.945030 100,767 17% Non-tax Qualified ......................... 19,226 13.945030 268,107 17% Nationwide SAT - Global Equity Fund: Tax Qualified ............................. 46,323 14.247974 660,009 21% Non-tax Qualified ......................... 71,266 14.247974 1,015,396 21% Nationwide SAT - Government Bond Fund: Tax Qualified ............................. 247,182 9.802780 2,423,071 (4)% Non-tax Qualified ......................... 321,361 9.802780 3,150,231 (4)% Nationwide SAT - High Income Bond Fund: Tax Qualified ............................. 46,078 10.750149 495,345 2% Non-tax Qualified ......................... 70,255 10.750149 755,252 2% Nationwide SAT - Money Market Fund: Tax Qualified ............................. 1,182,057 10.475448 12,382,577 3% Non-tax Qualified ......................... 1,157,296 10.475448 12,123,194 3% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ............................. 48,359 10.496386 507,595 0% Non-tax Qualified ......................... 61,675 10.496386 647,365 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ............................. 2,041 14.624858 29,849 19% Non-tax Qualified ......................... 8,874 14.624858 129,781 19% Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified ............................. 4,379 20.324927 89,003 103%(a) Non-tax Qualified ......................... 8,148 20.324927 165,608 103%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ............................. 30,908 15.875478 490,679 26% Non-tax Qualified ......................... 61,322 15.875478 973,516 26% Nationwide SAT - Small Company Fund: Tax Qualified ............................. 21,696 17.076087 370,483 42% Non-tax Qualified ......................... 31,159 17.076087 532,074 42% Nationwide SAT - Strategic Growth Fund: Tax Qualified ............................. 57,952 22.720430 1,316,694 82% Non-tax Qualified ......................... 103,969 22.720430 2,362,220 82% Nationwide SAT - Strategic Value Fund: Tax Qualified ............................. 8,003 11.933031 95,500 (4)% Non-tax Qualified ......................... 9,946 11.933031 118,686 (4)% Nationwide SAT - Total Return Fund: Tax Qualified ............................. 180,091 12.629301 2,274,423 6% Non-tax Qualified ......................... 176,065 12.629301 2,223,578 6% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ............................. 61,265 13.957433 855,102 13% Non-tax Qualified ......................... 40,640 13.957433 567,230 13%
53
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ............................... 29,312 20.806301 609,874 52% Non-tax Qualified ........................... 44,345 20.806301 922,655 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ............................... 47,275 12.523110 592,030 6% Non-tax Qualified ........................... 36,245 12.523110 453,900 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ............................... 45,369 23.481073 1,065,313 81% Non-tax Qualified ........................... 63,400 23.481073 1,488,700 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ............................... 155,303 17.824624 2,768,218 40% Non-tax Qualified ........................... 170,308 17.824624 3,035,676 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ............................... 75,394 14.589572 1,099,966 20% Non-tax Qualified ........................... 111,371 14.589572 1,624,855 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ............................... 11,607 23.915562 277,588 98% Non-tax Qualified ........................... 22,452 23.915562 536,952 98% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified .................................. 21,175 12.632809 267,500 19% Non-tax Qualified ........................... 15,744 12.632809 198,891 19% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified ............................... 3,301 10.240102 33,803 (5)% Non-tax Qualified ........................... 10,725 10.240102 109,825 (5)% Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified ............................... 2,960 12.252980 36,269 5% Non-tax Qualified ........................... 12,757 12.252980 156,311 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified ............................... 3,141 16.352558 51,363 51% Non-tax Qualified ........................... 15,682 16.352558 256,441 51% Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified ............................... 5,441 20.551766 111,822 61% Non-tax Qualified ........................... 2,687 20.551766 55,223 61% Asset fee @ 1.35% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ............................... 21,978 14.562313 320,051 16% Non-tax Qualified ........................... 41,898 14.562313 610,132 16%
(Continued) 54 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- American Century VP - American Century VP International: Tax Qualified ............................. 4,011 19.508116 78,247 62% Non-tax Qualified ......................... 11,717 19.508116 228,577 62% American Century VP - American Century VP Value: Tax Qualified ............................. 2,318 11.026014 25,558 (2)% Non-tax Qualified ......................... 4,673 11.026014 51,525 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ............................. 24,037 16.395915 394,109 28% Non-tax Qualified ......................... 17,768 16.395915 291,323 28% Dreyfus Stock Index Fund: Tax Qualified ............................. 65,993 14.820270 978,034 19% Non-tax Qualified ......................... 129,850 14.820270 1,924,412 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ............................. 987 13.614453 13,437 10% Non-tax Qualified ......................... 9,554 13.614453 130,072 10% Dreyfus VIF - European Equity Fund: Tax Qualified ............................. 1,169 12.885161 15,063 29%(a) Non-tax Qualified ......................... 520 12.885161 6,700 29%(a) Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified ............................. 1,186 9.780523 11,600 (2)%(a) Non-tax Qualified ......................... 4,341 9.780523 42,457 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ............................. 16,260 12.371310 201,158 5% Non-tax Qualified ......................... 53,639 12.371310 663,585 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ............................. 31,835 17.479679 556,466 35% Non-tax Qualified ......................... 80,540 17.479679 1,407,813 35% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ............................. 15,278 11.220168 171,422 7% Non-tax Qualified ......................... 31,375 11.220168 352,033 7% Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ............................. 16,878 17.117558 288,910 41% Non-tax Qualified ......................... 15,165 17.117558 259,588 41% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ............................. 14,384 15.663065 225,298 22% Non-tax Qualified ......................... 65,942 15.663065 1,032,854 22%
55
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ............................... 4,087 12.643267 51,673 3% Non-tax Qualified ........................... 32,098 12.643267 405,824 3% Morgan Stanley - Emerging Markets Debt Portfolio: Non-tax Qualified ........................... 676 14.534982 9,826 28% Nationwide SAT - Balanced Fund: Tax Qualified ............................... 7,484 10.618109 79,466 0% Non-tax Qualified ........................... 10,580 10.618109 112,340 0% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ............................... 30,426 12.788549 389,104 3% Non-tax Qualified ........................... 21,206 12.788549 271,194 3% Nationwide SAT - Equity Income Fund: Tax Qualified ............................... 898 13.838584 12,427 17% Non-tax Qualified ........................... 3,836 13.838584 53,085 17% Nationwide SAT - Global Equity Fund: Tax Qualified ............................... 5,540 14.799960 81,992 21% Non-tax Qualified ........................... 8,676 14.799960 128,404 21% Nationwide SAT - Government Bond Fund: Tax Qualified ............................... 21,775 9.485894 206,555 (4)% Non-tax Qualified ........................... 88,782 9.485894 842,177 (4)% Nationwide SAT - High Income Bond Fund: Tax Qualified ............................... 7,431 10.519004 78,167 2% Non-tax Qualified ........................... 8,672 10.519004 91,221 2% Nationwide SAT - Money Market Fund: Tax Qualified ............................... 53,049 10.435669 553,602 3% Non-tax Qualified ........................... 206,770 10.435669 2,157,783 3% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ............................... 4,503 10.258279 46,193 0% Non-tax Qualified ........................... 10,846 10.258279 111,261 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ............................... 1,785 14.608445 26,076 19% Non-tax Qualified ........................... 1,200 14.608445 17,530 19% Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified ............................... 373 20.318124 7,579 103%(a) Non-tax Qualified ........................... 63 20.318124 1,280 103%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ............................... 1,206 16.339365 19,705 26% Non-tax Qualified ........................... 11,351 16.339365 185,468 26% Nationwide SAT - Small Company Fund: Tax Qualified ............................... 6,539 17.213333 112,558 42% Non-tax Qualified ........................... 6,103 17.213333 105,053 42%
(Continued) 56 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Strategic Growth Fund: Tax Qualified ................................ 427 23.075929 9,853 82% Non-tax Qualified ............................ 7,750 23.075929 178,838 82% Nationwide SAT - Strategic Value Fund: Non-tax Qualified ............................ 5,161 12.450334 64,256 (4)% Nationwide SAT - Total Return Fund: Tax Qualified ................................ 23,816 12.644908 301,151 5% Non-tax Qualified ............................ 35,963 12.644908 454,749 5% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ................................ 5,332 14.602403 77,860 13% Non-tax Qualified ............................ 8,307 14.602403 121,302 13% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................ 3,548 21.358908 75,781 52% Non-tax Qualified ............................ 7,645 21.358908 163,289 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ................................ 5,745 12.552194 72,112 6% Non-tax Qualified ............................ 27,019 12.552194 339,148 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ................................ 1,068 23.879534 25,503 81% Non-tax Qualified ............................ 1,635 23.879534 39,043 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ................................ 7,034 18.497677 130,113 40% Non-tax Qualified ............................ 35,537 18.497677 657,352 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................ 4,550 14.807604 67,375 20% Non-tax Qualified ............................ 11,754 14.807604 174,049 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ................................ 4,785 24.947866 119,376 98% Non-tax Qualified ............................ 5,229 24.947866 130,452 98% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified ................................ 362 11.832203 4,283 19% Non-tax Qualified ............................ 3,217 11.832203 38,064 19% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified ................................ 439 9.918143 4,354 (5)% Non-tax Qualified ............................ 2,722 9.918143 26,997 (5)% Warburg Pincus Trust - Growth & Income Portfolio: Non-tax Qualified ............................ 666 12.460330 8,299 5%
57
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Warburg Pincus Trust - International Equity Portfolio: Tax Qualified .............................. 631 17.474463 11,026 51% Non-tax Qualified .......................... 3,077 17.474463 53,769 51% Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified .............................. 1,481 20.695562 30,650 61% Non-tax Qualified .......................... 1,853 20.695562 38,349 61% Asset fee @ 1.40% rate: American Century VP - American Century VP Income & Growth: Tax Qualified .............................. 6,866 14.553111 99,922 16% Non-tax Qualified .......................... 1,803 14.553111 26,239 16% American Century VP - American Century VP International: Tax Qualified .............................. 5,609 19.495801 109,352 62% Non-tax Qualified .......................... 2,055 19.495801 40,064 62% American Century VP - American Century VP Value: Tax Qualified .............................. 5,362 11.019041 59,084 (2)% Non-tax Qualified .......................... 2,563 11.019041 28,242 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified .............................. 2,832 16.385550 46,404 28% Non-tax Qualified .......................... 4,225 16.385550 69,229 28% Dreyfus Stock Index Fund: Tax Qualified .............................. 58,371 14.810885 864,526 19% Non-tax Qualified .......................... 14,182 14.810885 210,048 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified .............................. 19,504 13.605834 265,368 10% Non-tax Qualified .......................... 3,244 13.605834 44,137 10% Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified .............................. 8 9.777237 78 (2)%(a) Non-tax Qualified .......................... 174 9.777237 1,701 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified .............................. 12,284 12.363474 151,873 5% Non-tax Qualified .......................... 7,210 12.363474 89,141 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified .............................. 33,817 17.468631 590,737 35% Non-tax Qualified .......................... 11,807 17.468631 206,252 35% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified .............................. 1,729 11.213084 19,387 7% Non-tax Qualified .......................... 5,530 11.213084 62,008 7%
(Continued) 58 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified .............................. 730 17.106743 12,488 40% Non-tax Qualified .......................... 1,826 17.106743 31,237 40% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified .............................. 13,606 15.653161 212,977 22% Non-tax Qualified .......................... 5,351 15.653161 83,760 22% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified .............................. 8,255 12.635267 104,304 3% Non-tax Qualified .......................... 2,412 12.635267 30,476 3% Nationwide SAT - Balanced Fund: Tax Qualified .............................. 2,247 10.611396 23,844 (1)% Non-tax Qualified .......................... 317 10.611396 3,364 (1)% Nationwide SAT - Capital Appreciation Fund: Tax Qualified .............................. 31,154 12.780450 398,162 3% Non-tax Qualified .......................... 15,231 12.780450 194,659 3% Nationwide SAT - Equity Income Fund: Tax Qualified .............................. 654 13.829829 9,045 17% Non-tax Qualified .......................... 1,566 13.829829 21,658 17% Nationwide SAT - Global Equity Fund: Non-tax Qualified .......................... 1,502 14.790595 22,215 21% Nationwide SAT - Government Bond Fund: Tax Qualified .............................. 5,335 9.479885 50,575 (4)% Non-tax Qualified .......................... 2,731 9.479885 25,890 (4)% Nationwide SAT - High Income Bond Fund: Tax Qualified .............................. 2,780 10.512337 29,224 2% Non-tax Qualified .......................... 84 10.512337 883 2% Nationwide SAT - Money Market Fund: Tax Qualified .............................. 4,154 10.429048 43,322 3% Non-tax Qualified .......................... 1,374 10.429048 14,330 3% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified .............................. 935 10.251777 9,585 0% Non-tax Qualified .......................... 68 10.251777 697 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified .............................. 871 14.599208 12,716 19% Nationwide SAT - Small Cap Value Fund: Tax Qualified .............................. 1,066 16.329040 17,407 26% Non-tax Qualified .......................... 1,813 16.329040 29,605 26% Nationwide SAT - Small Company Fund: Tax Qualified .............................. 1,566 17.202461 26,939 42%
59
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Strategic Growth Fund: Tax Qualified ................................ 2,853 23.061361 65,794 82% Non-tax Qualified ............................ 540 23.061361 12,453 82% Nationwide SAT - Strategic Value Fund: Tax Qualified ................................ 2,417 12.442449 30,073 (4)% Non-tax Qualified ............................ 981 12.442449 12,206 (4)% Nationwide SAT - Total Return Fund: Tax Qualified ................................ 53,495 12.636905 676,011 5% Non-tax Qualified ............................ 17,353 12.636905 219,288 5% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ................................ 1,157 14.593171 16,884 13% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................ 4,508 21.345408 96,225 52% Non-tax Qualified ............................ 1,022 21.345408 21,815 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ................................ 4,022 12.544255 50,453 6% Non-tax Qualified ............................ 752 12.544255 9,433 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ................................ 2,253 23.864429 53,767 81% Non-tax Qualified ............................ 2,302 23.864429 54,936 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ................................ 11,468 18.485985 211,997 40% Non-tax Qualified ............................ 6,224 18.485985 115,057 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................ 16,970 14.798240 251,126 20% Non-tax Qualified ............................ 5,156 14.798240 76,300 20% Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ................................ 1,166 24.932117 29,071 97% Non-tax Qualified ............................ 592 24.932117 14,760 97% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified ................................ 2,497 11.824722 29,526 19% Non-tax Qualified ............................ 221 11.824722 2,613 19% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Tax Qualified ................................ 250 9.911855 2,478 (5)% Non-tax Qualified ............................ 889 9.911855 8,812 (5)% Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified ................................ 4,826 12.452445 60,095 5%
(Continued) 60 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURNL(b) --------- ----------- --------- Warburg Pincus Trust - International Equity Portfolio: Tax Qualified ................................ 451 17.463426 7,876 51% Non-tax Qualified ............................ 202 17.463426 3,528 51% Warburg Pincus Trust - Post Venture Capital Portfolio: Tax Qualified ................................ 980 20.682481 20,269 61% Non-tax Qualified ............................ 179 20.682481 3,702 61% Asset fee @ 1.45% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ................................ 414 14.543892 6,021 16% Non-tax Qualified ............................ 2,924 14.543892 42,526 16% American Century VP - American Century VP International: Tax Qualified ................................ 2,509 19.483474 48,884 62% Non-tax Qualified ............................ 3,787 19.483474 73,784 62% American Century VP - American Century VP Value: Tax Qualified ................................ 1,405 11.012072 15,472 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................ 4,973 16.375184 81,434 28% Non-tax Qualified ............................ 12,145 16.375184 198,877 28% Dreyfus Stock Index Fund: Tax Qualified ................................ 24,817 14.801530 367,330 19% Non-tax Qualified ............................ 33,993 14.801530 503,148 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ................................ 4,035 13.597232 54,865 10% Non-tax Qualified ............................ 2,220 13.597232 30,186 10% Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified ................................ 52 9.773948 508 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................ 6,732 12.355641 83,178 5% Non-tax Qualified ............................ 20,584 12.355641 254,329 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ................................ 11,174 17.457597 195,071 35% Non-tax Qualified ............................ 11,399 17.457597 198,999 35% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ................................ 1,302 11.205978 14,590 7% Non-tax Qualified ............................ 1,902 11.205978 21,314 7%
61
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ............................... 1,185 17.095933 20,259 40% Non-tax Qualified ........................... 320 17.095933 5,471 40% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ............................... 5,156 15.643260 80,657 22% Non-tax Qualified ........................... 2,495 15.643260 39,030 22% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ............................... 848 12.627255 10,708 3% Non-tax Qualified ........................... 635 12.627255 8,018 3% Nationwide SAT - Balanced Fund: Tax Qualified ............................... 3,235 10.604669 34,306 (1)% Non-tax Qualified ........................... 1,697 10.604669 17,996 (1)% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ............................... 5,318 12.772360 67,923 3% Non-tax Qualified ........................... 8,223 12.772360 105,027 3% Nationwide SAT - Equity Income Fund: Non-tax Qualified ........................... 230 13.821079 3,179 17% Nationwide SAT - Global Equity Fund: Tax Qualified ............................... 1,409 14.781243 20,827 21% Non-tax Qualified ........................... 298 14.781243 4,405 21% Nationwide SAT - Government Bond Fund: Tax Qualified ............................... 2,805 9.473867 26,574 (4)% Non-tax Qualified ........................... 25,195 9.473867 238,694 (4)% Nationwide SAT - High Income Bond Fund: Tax Qualified ............................... 1,761 10.505688 18,501 2% Non-tax Qualified ........................... 522 10.505688 5,484 2% Nationwide SAT - Money Market Fund: Tax Qualified ............................... 17,714 10.422427 184,623 3% Non-tax Qualified ........................... 9,674 10.422427 100,827 3% Nationwide SAT - Multi Sector Bond Fund: Tax Qualified ............................... 332 10.245290 3,401 0% Non-tax Qualified ........................... 414 10.245290 4,242 0% Nationwide SAT - Select Advisers Small Cap Growth Fund: Tax Qualified ............................... 1,671 20.304522 33,929 103%(a) Non-tax Qualified ........................... 199 20.304522 4,041 103%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ............................... 2,229 16.318704 36,374 26% Non-tax Qualified ........................... 722 16.318704 11,782 26% Nationwide SAT - Small Company Fund: Tax Qualified ............................... 735 17.191574 12,636 42% Non-tax Qualified ........................... 107 17.191574 1,839 42%
(Continued) 62 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Strategic Growth Fund: Tax Qualified ................................. 4,278 23.046789 98,594 82% Non-tax Qualified ............................. 909 23.046789 20,950 82% Nationwide SAT - Strategic Value Fund: Tax Qualified ................................. 2,281 12.434581 28,363 (4)% Non-tax Qualified ............................. 644 12.434581 8,008 (4)% Nationwide SAT - Total Return Fund: Tax Qualified ................................. 15,219 12.628895 192,199 5% Non-tax Qualified ............................. 29,418 12.628895 371,517 5% Neuberger & Berman AMT - Guardian Portfolio: Tax Qualified ................................. 1,068 14.583938 15,576 13% Non-tax Qualified ............................. 416 14.583938 6,067 13% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................. 1,230 21.331920 26,238 52% Non-tax Qualified ............................. 1,717 21.331920 36,627 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ................................. 4,900 12.536312 61,428 6% Non-tax Qualified ............................. 1,254 12.536312 15,721 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ................................. 1,448 23.849355 34,534 81% Non-tax Qualified ............................. 24,213 23.849355 577,464 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ................................. 3,780 18.474301 69,833 40% Non-tax Qualified ............................. 167 18.474301 3,085 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................. 6,006 14.788879 88,822 20% Non-tax Qualified ............................. 5,080 14.788879 75,128 20% Van Eck WIT - Worldwide Emerging Markets Fund: Non-tax Qualified ............................. 15,963 24.916384 397,740 97% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified ................................. 175 11.817233 2,068 19% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified ................................. 576 17.452381 10,053 51% Non-tax Qualified ............................. 160 17.452381 2,792 51%
63
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Asset fee @ 1.50% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ................................ 3,663 14.534695 53,241 16% Non-tax Qualified ............................ 6,265 14.534695 91,060 16% American Century VP - American Century VP International: Tax Qualified ................................ 8,561 19.471172 166,693 62% Non-tax Qualified ............................ 26,531 19.471172 516,590 62% American Century VP - American Century VP Value: Tax Qualified ................................ 3,088 11.005082 33,984 (2)% Non-tax Qualified ............................ 4,545 11.005082 50,018 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................ 4,710 16.364824 77,078 28% Non-tax Qualified ............................ 6,899 16.364824 112,901 28% Dreyfus Stock Index Fund: Tax Qualified ................................ 23,916 14.792159 353,769 19% Non-tax Qualified ............................ 161,203 14.792159 2,384,540 19% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ................................ 4,670 13.588614 63,459 10% Non-tax Qualified ............................ 13,830 13.588614 187,931 10% Federated Insurance Series - Federated Quality Bond Fund II: Tax Qualified ................................ 836 9.770666 8,168 (2)%(a) Non-tax Qualified ............................ 709 9.770666 6,927 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................ 6,909 12.347825 85,311 5% Non-tax Qualified ............................ 22,337 12.347825 275,813 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ................................ 14,697 17.446540 256,412 35% Non-tax Qualified ............................ 48,559 17.446540 847,187 35% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ................................ 5,498 11.198884 61,571 6% Non-tax Qualified ............................ 5,829 11.198884 65,278 6% Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ................................ 5,314 17.085125 90,790 40% Non-tax Qualified ............................ 5,076 17.085125 86,724 40% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ................................ 13,326 15.633362 208,330 22% Non-tax Qualified ............................ 46,095 15.633362 720,620 22%
(Continued) 64 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................ 1,253 12.619265 15,812 3% Non-tax Qualified ............................ 10,842 12.619265 136,818 3% Nationwide SAT - Balanced Fund: Tax Qualified ................................ 1,182 10.597955 12,527 (1)% Non-tax Qualified ............................ 5,274 10.597955 55,894 (1)% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ................................ 8,204 12.764281 104,718 3% Non-tax Qualified ............................ 21,195 12.764281 270,539 3% Nationwide SAT - Equity Income Fund: Tax Qualified ................................ 3,142 13.812331 43,398 17% Non-tax Qualified ............................ 506 13.812331 6,989 17% Nationwide SAT - Global Equity Fund: Non-tax Qualified ............................ 2,864 14.771891 42,307 21% Nationwide SAT - Government Bond Fund: Tax Qualified ................................ 594 9.467860 5,624 (4)% Non-tax Qualified ............................ 15,319 9.467860 145,038 (4)% Nationwide SAT - High Income Bond Fund: Tax Qualified ................................ 1,397 10.499020 14,667 2% Non-tax Qualified ............................ 4,971 10.499020 52,191 2% Nationwide SAT - Money Market Fund: Tax Qualified ................................ 27,321 10.415808 284,570 3% Non-tax Qualified ............................ 71,293 10.415808 742,574 3% Nationwide SAT - Multi Sector Bond Fund: Non-tax Qualified ............................ 510 10.238786 5,222 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ................................ 95 14.580726 1,385 19% Non-tax Qualified ............................ 828 14.580726 12,073 19% Nationwide SAT - Select Advisers Small Cap Growth Fund: Non-tax Qualified ............................ 15,068 20.297724 305,846 103%(a) Nationwide SAT - Small Cap Value Fund: Tax Qualified ................................ 1,330 16.308373 21,690 26% Non-tax Qualified ............................ 12,715 16.308373 207,361 26% Nationwide SAT - Small Company Fund: Tax Qualified ................................ 1,878 17.180698 32,265 42% Non-tax Qualified ............................ 5,539 17.180698 95,164 42% Nationwide SAT - Strategic Growth Fund: Tax Qualified ................................ 2,548 23.032196 58,686 82% Non-tax Qualified ............................ 14,951 23.032196 344,354 82%
65
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Strategic Value Fund: Tax Qualified ................................. 6,036 12.426696 75,008 (5)% Non-tax Qualified ............................. 415 12.426696 5,157 (5)% Nationwide SAT - Total Return Fund: Tax Qualified ................................. 4,117 12.620906 51,960 5% Non-tax Qualified ............................. 13,709 12.620906 173,020 5% Neuberger & Berman AMT - Guardian Portfolio: Non-tax Qualified ............................. 4,796 14.574691 69,900 13% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................. 2,024 21.318413 43,148 52% Non-tax Qualified ............................. 5,716 21.318413 121,856 52% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ................................. 14 12.528364 175 6% Non-tax Qualified ............................. 3,727 12.528364 46,693 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ................................. 1,951 23.834283 46,501 81% Non-tax Qualified ............................. 21,397 23.834283 509,982 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ................................. 10,109 18.462618 186,639 40% Non-tax Qualified ............................. 11,501 18.462618 212,339 40% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................. 6,327 14.779520 93,510 20% Non-tax Qualified ............................. 11,838 14.779520 174,960 20% Van Eck WIT - Worldwide Emerging Markets Fund: Non-tax Qualified ............................. 338 24.900624 8,416 97% Van Eck WIT - Worldwide Hard Assets Fund: Non-tax Qualified ............................. 296 11.809742 3,496 19% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Non-tax Qualified ............................. 414 9.899304 4,098 (5)% Victory VIF - Diversified Stock Fund - Class A: Tax Qualified ................................. 1,414 10.045034 14,204 0%(a) Non-tax Qualified ............................. 3,685 10.045034 37,016 0%(a) Victory VIF - Investment Quality Bond Fund - Class A: Tax Qualified ................................. 390 9.916014 3,867 (1)%(a) Victory VIF - Small Company Opportunity Fund - Class A: Tax Qualified ................................. 208 9.881888 2,055 (1)%(a) Non-tax Qualified ............................. 638 9.881888 6,305 (1)%(a)
(Continued) 66 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified ................................. 88 12.436688 1,094 5% Non-tax Qualified ............................. 3,500 12.436688 43,528 5% Warburg Pincus Trust - International Equity Portfolio: Tax Qualified ................................. 455 17.441358 7,936 51% Non-tax Qualified ............................. 1,102 17.441358 19,220 51% Asset fee @ 1.55% rate: American Century VP - American Century VP International: Non-tax Qualified ............................. 175 19.458849 3,405 62% American Century VP - American Century VP Value: Tax Qualified ................................. 3,076 10.998104 33,830 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................. 90 16.354471 1,472 28% Non-tax Qualified ............................. 90 16.354471 1,472 28% Dreyfus Stock Index Fund: Tax Qualified ................................. 2,465 14.782794 36,440 19% Non-tax Qualified ............................. 1,115 14.782794 16,483 19% Dreyfus VIF - Capital Appreciation Portfolio: Non-tax Qualified ............................. 337 13.580004 4,576 10% Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................. 2,679 12.339995 33,059 5% Non-tax Qualified ............................. 3,242 12.339995 40,006 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ................................. 2,316 17.435504 40,381 35% Non-tax Qualified ............................. 405 17.435504 7,061 35% Fidelity VIP - High Income Portfolio - Service Class: Non-tax Qualified ............................. 718 11.191773 8,036 6% Fidelity VIP - Overseas Portfolio - Service Class: Non-tax Qualified ............................. 190 17.074312 3,244 40% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ................................. 3,468 15.623458 54,182 22% Non-tax Qualified ............................. 873 15.623458 13,639 22% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................. 3,980 12.611273 50,193 3%
67
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Capital Appreciation Fund: Tax Qualified ................................ 4,822 12.756184 61,510 3% Non-tax Qualified ............................ 1,555 12.756184 19,836 3% Nationwide SAT - Global Equity Fund: Tax Qualified ................................ 2,000 14.762540 29,525 21% Nationwide SAT - Government Bond Fund: Tax Qualified ................................ 139 9.461864 1,315 (4)% Non-tax Qualified ............................ 426 9.461864 4,031 (4)% Nationwide SAT - High Income Bond Fund: Non-tax Qualified ............................ 327 10.492359 3,431 2% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ................................ 2,028 14.571500 29,551 19% Nationwide SAT - Strategic Growth Fund: Non-tax Qualified ............................ 69 23.017640 1,588 82% Nationwide SAT - Total Return Fund: Tax Qualified ................................ 7,634 12.612898 96,287 5% Non-tax Qualified ............................ 582 12.612898 7,341 5% Neuberger & Berman AMT - Guardian Portfolio: Non-tax Qualified ............................ 1,377 14.565469 20,057 13% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................ 1,708 21.304943 36,389 52% Non-tax Qualified ............................ 235 21.304943 5,007 52% Neuberger & Berman AMT - Partners Portfolio: Non-tax Qualified ............................ 293 12.520433 3,668 6% Oppenheimer VAF - Aggressive Growth Fund: Non-tax Qualified ............................ 144 23.819210 3,430 81% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................ 3,469 14.770155 51,238 20% Warburg Pincus Trust - Growth & Income Portfolio: Non-tax Qualified ............................ 366 12.428801 4,549 5% Asset fee @ 1.60% rate: American Century VP - American Century VP International: Non-tax Qualified ............................ 15 19.446544 292 61% The Dreyfus Socially Responsible Growth Fund, Inc.: Non-tax Qualified ............................ 160 16.344103 2,615 28%
(Continued) 68 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Dreyfus Stock Index Fund: Non-tax Qualified ............................ 1,231 14.773416 18,186 19% Fidelity VIP - Growth Portfolio - Service Class: Non-tax Qualified ............................ 1,135 17.424460 19,777 35% Nationwide SAT - Capital Appreciation Fund: Non-tax Qualified ............................ 1,104 12.748099 14,074 3% Nationwide SAT - Government Bond Fund: Non-tax Qualified ............................ 213 9.455873 2,014 (4)% Nationwide SAT - High Income Bond Fund: Non-tax Qualified ............................ 131 10.485712 1,374 2% Nationwide SAT - Small Cap Value Fund: Non-tax Qualified ............................ 68 16.287722 1,108 26% Nationwide SAT - Strategic Growth Fund: Non-tax Qualified ............................ 74 23.003080 1,702 82% Oppenheimer VAF - Capital Appreciation Fund: Non-tax Qualified ............................ 1,078 18.439240 19,878 39% Warburg Pincus Trust - International Equity Portfolio: Non-tax Qualified ............................ 78 17.419297 1,359 51% Asset fee @ 1.65% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ................................ 158 14.507084 2,292 16% Non-tax Qualified ............................ 3,473 14.507084 50,383 16% American Century VP - American Century VP International: Tax Qualified ................................ 1,878 19.434239 36,498 61% Non-tax Qualified ............................ 469 19.434239 9,115 61% American Century VP - American Century VP Value: Tax Qualified ................................ 3,221 10.984159 35,380 (2)% Non-tax Qualified ............................ 1,409 10.984159 15,477 (2)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................ 6,744 16.333747 110,155 28% Non-tax Qualified ............................ 779 16.333747 12,724 28% Dreyfus Stock Index Fund: Tax Qualified ................................ 4,680 14.764046 69,096 19% Non-tax Qualified ............................ 5,396 14.764046 79,667 19%
69
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ................................. 75 13.562791 1,017 10% Non-tax Qualified ............................. 234 13.562791 3,174 10% Federated Insurance Series - Federated Quality Bond Fund II: Non-tax Qualified ............................. 594 9.760781 5,798 (2)%(a) Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................. 3,726 12.324339 45,920 5% Non-tax Qualified ............................. 6,993 12.324339 86,184 5% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ................................. 23,480 17.413426 408,867 35% Non-tax Qualified ............................. 30,916 17.413426 538,353 35% Fidelity VIP - High Income Portfolio - Service Class: Tax Qualified ................................. 2,133 11.177582 23,842 6% Non-tax Qualified ............................. 1,087 11.177582 12,150 6% Fidelity VIP - Overseas Portfolio - Service Class: Tax Qualified ................................. 594 17.052691 10,129 40% Non-tax Qualified ............................. 277 17.052691 4,724 40% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ................................. 1,471 15.603664 22,953 22% Non-tax Qualified ............................. 12,941 15.603664 201,927 22% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................. 1,795 12.595275 22,609 2% Non-tax Qualified ............................. 3,112 12.595275 39,196 2% Morgan Stanley - Emerging Markets Debt Portfolio: Tax Qualified ................................. 388 14.479873 5,618 27% Nationwide SAT - Balanced Fund: Tax Qualified ................................. 1,116 10.577794 11,805 (1)% Non-tax Qualified ............................. 60 10.577794 635 (1)% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ................................. 8,335 12.740010 106,188 3% Non-tax Qualified ............................. 11,336 12.740010 144,421 3% Nationwide SAT - Equity Income Fund: Tax Qualified ................................. 32 13.786084 441 17% Non-tax Qualified ............................. 658 13.786084 9,071 17% Nationwide SAT - Government Bond Fund: Tax Qualified ................................. 10,206 9.449856 96,445 (4)%
(Continued) 70 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - High Income Bond Fund: Non-tax Qualified ............................. 1,098 10.479056 11,506 1% Nationwide SAT - Money Market Fund: Tax Qualified ................................. 3,546 10.395950 36,864 3% Non-tax Qualified ............................. 10,669 10.395950 110,914 3% Nationwide SAT - Multi Sector Bond Fund: Non-tax Qualified ............................. 1,554 10.219313 15,881 0% Nationwide SAT - Select Advisers Mid Cap Fund: Tax Qualified ................................. 120 14.553031 1,746 19% Nationwide SAT - Small Cap Value Fund: Tax Qualified ................................. 872 16.277398 14,194 26% Nationwide SAT - Strategic Growth Fund: Tax Qualified ................................. 228 22.988509 5,241 82% Non-tax Qualified ............................. 428 22.988509 9,839 82% Nationwide SAT - Strategic Value Fund: Non-tax Qualified ............................. 195 12.403079 2,419 (5)% Nationwide SAT - Total Return Fund: Tax Qualified ................................. 495 12.596911 6,235 5% Non-tax Qualified ............................. 1,567 12.596911 19,739 5% Neuberger & Berman AMT - Guardian Portfolio: Non-tax Qualified ............................. 156 14.547000 2,269 13% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................. 271 21.277954 5,766 51% Non-tax Qualified ............................. 256 21.277954 5,447 51% Neuberger & Berman AMT - Partners Portfolio: Tax Qualified ................................. 380 12.504542 4,752 6% Non-tax Qualified ............................. 845 12.504542 10,566 6% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified ................................. 3,311 23.789077 78,766 81% Non-tax Qualified ............................. 2,068 23.789077 49,196 81% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ................................. 235 18.427568 4,330 39% Non-tax Qualified ............................. 1,733 18.427568 31,935 39% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................. 17,731 14.751442 261,558 20% Non-tax Qualified ............................. 1,074 14.751442 15,843 20%
71
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Van Eck WIT - Worldwide Emerging Markets Fund: Tax Qualified ................................ 616 24.853443 15,310 97% Van Eck WIT - Worldwide Hard Assets Fund: Tax Qualified ................................ 423 11.787279 4,986 19% Victory VIF - Diversified Stock Fund - Class A: Non-tax Qualified ............................ 1,948 10.037475 19,553 0%(a) Victory VIF - Investment Quality Bond Fund - Class A: Non-tax Qualified ............................ 750 9.908553 7,431 (1)%(a) Victory VIF - Small Company Opportunity Fund - Class A: Non-tax Qualified ............................ 432 9.874460 4,266 (1)%(a) Warburg Pincus Trust - International Equity Portfolio: Non-tax Qualified ............................ 531 17.408242 9,244 51% Warburg Pincus Trust - Post Venture Capital Portfolio: Non-tax Qualified ............................ 23 20.617144 474 61% Asset fee @ 1.70% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ................................ 48 10.894734 523 9% Non-tax Qualified ............................ 169 10.894734 1,841 9% American Century VP - American Century VP International: Non-tax Qualified ............................ 48 15.314929 735 53% American Century VP - American Century VP Value: Non-tax Qualified ............................ 49 8.780117 430 (12)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................ 256 11.868131 3,038 19% Non-tax Qualified ............................ 330 11.868131 3,916 19% Dreyfus Stock Index Fund: Tax Qualified ................................ 2,986 10.794215 32,232 8% Non-tax Qualified ............................ 508 10.794215 5,483 8% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified ................................ 584 10.184154 5,948 2% Non-tax Qualified ............................ 38 10.184154 387 2% Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................ 305 9.309967 2,840 (7)% Non-tax Qualified ............................ 459 9.309967 4,273 (7)%
(Continued) 72 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ................................ 5,243 12.322268 64,606 23% Non-tax Qualified ............................ 474 12.322268 5,841 23% Fidelity VIP - Overseas Portfolio - Service Class: Non-tax Qualified ............................ 254 13.058898 3,317 31% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ................................ 2,571 11.278366 28,997 13% Non-tax Qualified ............................ 455 11.278366 5,132 13% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................ 122 9.869824 1,204 (1)% Non-tax Qualified ............................ 68 9.869824 671 (1)% Nationwide SAT - Balanced Fund: Tax Qualified ................................ 77 9.481422 730 (5)% Nationwide SAT - Capital Appreciation Fund: Non-tax Qualified ............................ 110 9.707627 1,068 (3)% Nationwide SAT - Equity Income Fund: Non-tax Qualified ............................ 102 10.778958 1,099 8% Nationwide SAT - Money Market Fund: Non-tax Qualified ............................ 599 10.209430 6,115 2% Nationwide SAT - Select Advisers Small Cap Growth Fund: Non-tax Qualified ............................ 12 20.270503 243 103%(a) Nationwide SAT - Small Cap Value Fund: Non-tax Qualified ............................ 20 11.697140 234 17% Nationwide SAT - Small Company Fund: Non-tax Qualified ............................ 237 14.124755 3,348 41% Nationwide SAT - Strategic Growth Fund: Tax Qualified ................................ 5 14.658438 73 47% Non-tax Qualified ............................ 121 14.658438 1,774 47% Nationwide SAT - Total Return Fund: Tax Qualified ................................ 298 9.851989 2,936 (1)% Non-tax Qualified ............................ 146 9.851989 1,438 (1)% Neuberger & Berman AMT - Guardian Portfolio: Non-tax Qualified ............................ 22 9.968645 219 0% Neuberger & Berman AMT - Mid-Cap Growth Portfolio: Tax Qualified ................................ 19 15.264119 290 53% Non-tax Qualified ............................ 99 15.264119 1,511 53%
73 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Neuberger & Berman AMT - Partners Portfolio: Non-tax Qualified .............................. 23 9.504551 219 (5)% Oppenheimer VAF - Aggressive Growth Fund: Tax Qualified .................................. 429 16.070617 6,894 61% Non-tax Qualified .............................. 15 16.070617 241 61% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified .................................. 485 12.759449 6,188 28% Non-tax Qualified .............................. 176 12.759449 2,246 28% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified .................................. 2,487 10.784586 26,821 8% Van Eck WIT - Worldwide Emerging Markets Fund: Non-tax Qualified .............................. 16 15.596564 250 56% Van Eck WIT - Worldwide Hard Assets Fund: Non-tax Qualified .............................. 23 9.987144 230 0% Warburg Pincus Trust - Growth & Income Portfolio: Non-tax Qualified .............................. 125 9.340613 1,168 (7)% Asset fee @ 1.75% rate: American Century VP - American Century VP Income & Growth: Tax Qualified .................................. 375 10.891060 4,084 9% American Century VP - American Century VP Value: Tax Qualified .................................. 132 8.777154 1,159 (12)% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified .................................. 194 11.864126 2,302 19% Dreyfus Stock Index Fund: Tax Qualified .................................. 820 10.790571 8,848 8% Non-tax Qualified .............................. 1,372 10.790571 14,805 8% Dreyfus VIF - Capital Appreciation Portfolio: Tax Qualified .................................. 192 10.180717 1,955 2% Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified .................................. 205 12.318116 2,525 23% Non-tax Qualified .............................. 7,228 12.318116 89,035 23% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified .................................. 153 11.274564 1,725 13% Non-tax Qualified .............................. 625 11.274564 7,047 13%
(Continued) 74 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ................................ 133 9.866489 1,312 (1)% Nationwide SAT - Equity Income Fund: Tax Qualified ................................ 191 10.775320 2,058 8% Nationwide SAT - Government Bond Fund: Tax Qualified ................................ 235 9.731842 2,287 (3)% Nationwide SAT - Money Market Fund: Non-tax Qualified ............................ 3,456 10.205942 35,272 2% Nationwide SAT - Small Company Fund: Non-tax Qualified ............................ 1,202 14.120006 16,972 41% Nationwide SAT - Total Return Fund: Non-tax Qualified ............................ 1,503 9.848668 14,803 (2)% Oppenheimer VAF - Aggressive Growth Fund: Non-tax Qualified ............................ 424 16.065210 6,812 61% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ................................ 183 12.755147 2,334 28% Oppenheimer VAF - Main Street Growth & Income Fund: Tax Qualified ................................ 41 10.780952 442 8% Non-tax Qualified ............................ 504 10.780952 5,434 8% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio: Non-tax Qualified ............................ 1,471 9.009528 13,253 (10)% Warburg Pincus Trust - Growth & Income Portfolio: Tax Qualified ................................ 53 9.337456 495 (7)% Asset fee @ 1.80% rate: American Century VP - American Century VP Income & Growth: Tax Qualified ................................ 2,334 10.887381 25,411 9% The Dreyfus Socially Responsible Growth Fund, Inc.: Tax Qualified ................................ 2,591 11.860138 30,730 19% Dreyfus Stock Index Fund: Tax Qualified ................................ 3,195 10.786928 34,464 8% Non-tax Qualified ............................ 1,636 10.786928 17,647 8% Fidelity VIP - Equity-Income Portfolio - Service Class: Tax Qualified ................................ 646 9.303685 6,010 (7)% Non-tax Qualified ............................ 3,863 9.303685 35,940 (7)%
75 NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Fidelity VIP - Growth Portfolio - Service Class: Tax Qualified ............................... 5,519 12.313961 67,961 23% Non-tax Qualified ........................... 268 12.313961 3,300 23% Fidelity VIP-II - Contrafund Portfolio - Service Class: Tax Qualified ............................... 378 11.270766 4,260 13% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class: Tax Qualified ............................... 1,929 9.863165 19,026 (1)% Non-tax Qualified ........................... 311 9.863165 3,067 (1)% Nationwide SAT - Capital Appreciation Fund: Tax Qualified ............................... 3,065 9.701077 29,734 (3)% Nationwide SAT - Small Company Fund: Tax Qualified ............................... 308 14.115240 4,347 41% Nationwide SAT - Strategic Value Fund: Tax Qualified ............................... 995 8.542404 8,500 (15)% Nationwide SAT - Total Return Fund: Tax Qualified ............................... 30 9.845340 295 (2)% Oppenheimer VAF - Capital Appreciation Fund: Tax Qualified ............................... 5,062 12.750840 64,545 28% Non-tax Qualified ........................... 270 12.750840 3,443 28% Oppenheimer VAF - Main Street Growth & Income Fund: Non-tax Qualified ........................... 1,312 10.777319 14,140 8% Nationwide SAT - Select Advisers Small Cap Growth Fund: Initial funding by depositor ................ 100,000 20.501257 2,050,126 105%(a) Victory VIF - Diversified Stock Fund - Class A: Initial funding by depositor ................ 100,000 10.120885 1,012,088 1%(a) Victory VIF - Investment Quality Bond Fund - Class A: Initial funding by depositor ................ 100,000 10.020857 1,002,086 2%(a) Victory VIF - Small Company Opportunity Fund - Class A: Initial funding by depositor ................ 100,000 9.956513 995,651 (4)%(a) ========= ========== -------------- Reserves for annuity contracts in payout phase: Non-tax qualified ........................... 17,085 -------------- $6,530,166,060 ==============
(a) Non-annualized. The return was computed for the period 9/27/99, 5/03/99, 5/03/99, 7/01/99, 7/01/99 and 7/01/99 (effective dates) through 12/31/99 for Dreyfus VIF - European Equities Fund, Federated Insurance Series: Federated Quality Bond Fund II, Nationwide SAT - Select Advisors Small Cap Growth Fund, Victory VIF - Diversified Stock Fund - Class A, Victory VIF - Investment Quality Bond Fund - Class A and Victory VIF - Small Company Opportunity Fund - Class A, respectively. (b) The annual return does not include contract charges satisfied by surrendering units. - -------------------------------------------------------------------------------- 264 1 INDEPENDENT AUDITORS' REPORT The Board of Directors Nationwide Life Insurance Company: We have audited the accompanying consolidated balance sheets of Nationwide Life Insurance Company and subsidiaries (collectively the Company), a wholly owned subsidiary of Nationwide Financial Services, Inc., as of December 31, 1999 and 1998, and the related consolidated statements of income, shareholder's equity and cash flows for each of the years in the three-year period ended December 31, 1999. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated 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. 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 consolidated financial statements referred to above present fairly, in all material respects, the financial position of Nationwide Life Insurance Company and subsidiaries as of December 31, 1999 and 1998, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 1999, in conformity with generally accepted accounting principles. Columbus, Ohio January 28, 2000 2 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Consolidated Balance Sheets (in millions, except per share amounts)
December 31, ----------------------------- Assets 1999 1998 ------ --------- --------- Investments: Securities available-for-sale, at fair value: Fixed maturity securities $15,294.0 $14,245.1 Equity securities 92.9 127.2 Mortgage loans on real estate, net 5,786.3 5,328.4 Real estate, net 254.8 243.6 Policy loans 519.6 464.3 Other long-term investments 73.8 44.0 Short-term investments 416.0 289.1 --------- --------- 22,437.4 20,741.7 --------- --------- Cash 4.8 3.4 Accrued investment income 238.6 218.7 Deferred policy acquisition costs 2,554.1 2,022.2 Other assets 305.9 420.3 Assets held in separate accounts 67,135.1 50,935.8 --------- --------- $92,675.9 $74,342.1 ========= ========= Liabilities and Shareholder's Equity ------------------------------------ Future policy benefits and claims $21,861.6 $19,767.1 Other liabilities 914.2 866.1 Liabilities related to separate accounts 67,135.1 50,935.8 --------- --------- 89,910.9 71,569.0 --------- --------- Commitments and contingencies (notes 8 and 13) Shareholder's equity: Common stock, $1 par value. Authorized 5.0 million shares; 3.8 million shares issued and outstanding 3.8 3.8 Additional paid-in capital 766.1 914.7 Retained earnings 2,011.0 1,579.0 Accumulated other comprehensive income (15.9) 275.6 --------- --------- 2,765.0 2,773.1 --------- --------- $92,675.9 $74,342.1 ========= =========
See accompanying notes to consolidated financial statements. 3 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Consolidated Statements of Income (in millions)
Years ended December 31, --------------------------------------------- 1999 1998 1997 -------- -------- -------- Revenues: Policy charges $ 895.5 $ 698.9 $ 545.2 Life insurance premiums 220.8 200.0 205.4 Net investment income 1,520.8 1,481.6 1,409.2 Realized (losses) gains on investments (11.6) 28.4 11.1 Other 66.1 66.8 46.5 -------- -------- -------- 2,691.6 2,475.7 2,217.4 -------- -------- -------- Benefits and expenses: Interest credited to policyholder account balances 1,096.3 1,069.0 1,016.6 Other benefits and claims 210.4 175.8 178.2 Policyholder dividends on participating policies 42.4 39.6 40.6 Amortization of deferred policy acquisition costs 272.6 214.5 167.2 Other operating expenses 463.4 419.7 384.9 -------- -------- -------- 2,085.1 1,918.6 1,787.5 -------- -------- -------- Income before federal income tax expense 606.5 557.1 429.9 Federal income tax expense 201.4 190.4 150.2 -------- -------- -------- Net income $ 405.1 $ 366.7 $ 279.7 ======== ======== ========
See accompanying notes to consolidated financial statements. 4 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Consolidated Statements of Shareholder's Equity Years ended December 31, 1999, 1998 and 1997 (in millions)
Accumulated Additional other Total Common paid-in Retained comprehensive shareholder's stock capital earnings income equity -------- -------- ---------- -------- ---------- December 31, 1996 $ 3.8 $ 527.9 $1,432.6 $173.6 $2,137.9 Comprehensive income: Net income -- -- 279.7 -- 279.7 Net unrealized gains on securities available-for-sale arising during the year -- -- -- 73.5 73.5 -------- Total comprehensive income 353.2 -------- Capital contribution -- 836.8 -- -- 836.8 -------- Dividend to shareholder -- (450.0) (400.0) -- (850.0) ------ -------- -------- ------ -------- December 31, 1997 3.8 914.7 1,312.3 247.1 2,477.9 Comprehensive income: Net income -- -- 366.7 -- 366.7 Net unrealized gains on securities available-for-sale arising during the year -- -- -- 28.5 28.5 -------- Total comprehensive income 395.2 -------- Dividend to shareholder -- -- (100.0) -- (100.0) ------ -------- -------- ------ -------- December 31, 1998 3.8 914.7 1,579.0 275.6 2,773.1 Comprehensive income: Net income -- -- 405.1 -- 405.1 Net unrealized losses on securities available-for-sale arising during the year -- -- -- (315.0) (315.0) -------- Total comprehensive income 90.1 -------- Capital contribution -- 26.4 87.9 23.5 137.8 -------- Dividends to shareholder -- (175.0) (61.0) -- (236.0) ------ -------- -------- ------ -------- December 31, 1999 $ 3.8 $ 766.1 $2,011.0 $(15.9) $2,765.0 ====== ======== ======== ====== ========
See accompanying notes to consolidated financial statements. 5 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Consolidated Statements of Cash Flows (in millions)
Years ended December 31, ------------------------------------- 1999 1998 1997 --------- --------- --------- Cash flows from operating activities: Net income $ 405.1 $ 366.7 $ 279.7 Adjustments to reconcile net income to net cash provided by operating activities: Interest credited to policyholder account balances 1,096.3 1,069.0 1,016.6 Capitalization of deferred policy acquisition costs (637.0) (584.2) (487.9) Amortization of deferred policy acquisition costs 272.6 214.5 167.2 Amortization and depreciation 2.4 (8.5) (2.0) Realized (gains) losses on invested assets, net 11.6 (28.4) (11.1) Increase in accrued investment income (7.9) (8.2) (0.3) Decrease (increase) in other assets 122.9 16.4 (12.7) Decrease in policy liabilities (20.9) (8.3) (23.1) Increase (decrease) in other liabilities 149.7 (34.8) 230.6 Other, net (8.6) (11.3) (10.9) --------- --------- --------- Net cash provided by operating activities 1,386.2 982.9 1,146.1 --------- --------- --------- Cash flows from investing activities: Proceeds from maturity of securities available-for-sale 2,307.9 1,557.0 993.4 Proceeds from sale of securities available-for-sale 513.1 610.5 574.5 Proceeds from repayments of mortgage loans on real estate 696.7 678.2 437.3 Proceeds from sale of real estate 5.7 103.8 34.8 Proceeds from repayments of policy loans and sale of other invested assets 40.9 23.6 22.7 Cost of securities available-for-sale acquired (3,724.9) (3,182.8) (2,828.1) Cost of mortgage loans on real estate acquired (971.4) (829.1) (752.2) Cost of real estate acquired (14.2) (0.8) (24.9) Short-term investments, net (27.5) 69.3 (354.8) Other, net (110.9) (88.4) (62.5) --------- --------- --------- Net cash used in investing activities (1,284.6) (1,058.7) (1,959.8) --------- --------- --------- Cash flows from financing activities: Proceeds from capital contributions -- -- 836.8 Cash dividends paid (188.5) (100.0) -- Increase in investment product and universal life insurance product account balances 3,799.4 2,682.1 2,488.5 Decrease in investment product and universal life insurance product account balances (3,711.1) (2,678.5) (2,379.8) --------- --------- --------- Net cash used in financing activities (100.2) (96.4) 945.5 --------- --------- --------- Net increase (decrease) in cash 1.4 (172.2) 131.8 Cash, beginning of year 3.4 175.6 43.8 --------- --------- --------- Cash, end of year $ 4.8 $ 3.4 $ 175.6 ========= ========= =========
See accompanying notes to consolidated financial statements. 6 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements December 31, 1999, 1998 and 1997 (1) Organization and Description of Business Nationwide Life Insurance Company (NLIC) is a leading provider of long-term savings and retirement products in the United States and is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). The Company develops and sells a diverse range of products including variable annuities, fixed annuities and life insurance as well as investment management and administrative services. NLIC markets its products through a broad network of distribution channels, including independent broker/dealers, national and regional brokerage firms, financial institutions, pension plan administrators, life insurance specialists, Nationwide Retirement Solutions sales representatives, and Nationwide agents. Wholly owned subsidiaries of NLIC include Nationwide Life and Annuity Insurance Company (NLAIC), Nationwide Advisory Services, Inc., and Nationwide Investment Services Corporation. NLIC and its subsidiaries are collectively referred to as "the Company." (2) Summary of Significant Accounting Policies The significant accounting policies followed by the Company that materially affect financial reporting are summarized below. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles, which differ from statutory accounting practices prescribed or permitted by regulatory authorities. Annual Statements for NLIC and NLAIC, filed with the Department of Insurance of the State of Ohio (the Department), are prepared on the basis of accounting practices prescribed or permitted by the Department. Prescribed statutory accounting practices include a variety of publications of the National Association of Insurance Commissioners (NAIC), as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. The Company has no material permitted statutory accounting practices. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results could differ significantly from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs, valuation allowances for mortgage loans on real estate and real estate investments and the liability for future policy benefits and claims. Although some variability is inherent in these estimates, management believes the amounts provided are adequate. (a) Consolidation Policy The consolidated financial statements include the accounts of NLIC and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. 7 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued (b) Valuation of Investments and Related Gains and Losses The Company is required to classify its fixed maturity securities and equity securities as either held-to-maturity, available-for-sale or trading. Fixed maturity securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are stated at amortized cost. Fixed maturity securities not classified as held-to-maturity and all equity securities are classified as available-for-sale and are stated at fair value, with the unrealized gains and losses, net of adjustments to deferred policy acquisition costs and deferred federal income tax, reported as a separate component of accumulated other comprehensive income in shareholder's equity. The adjustment to deferred policy acquisition costs represents the change in amortization of deferred policy acquisition costs that would have been required as a charge or credit to operations had such unrealized amounts been realized. The Company has no fixed maturity securities classified as held-to-maturity or trading as of December 31, 1999 or 1998. Mortgage loans on real estate are carried at the unpaid principal balance less valuation allowances. The Company provides valuation allowances for impairments of mortgage loans on real estate based on a review by portfolio managers. The measurement of impaired loans is based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the fair value of the collateral, if the loan is collateral dependent. Loans in foreclosure and loans considered to be impaired are placed on non-accrual status. Interest received on non-accrual status mortgage loans on real estate is included in interest income in the period received. Real estate is carried at cost less accumulated depreciation and valuation allowances. Other long-term investments are carried on the equity basis, adjusted for valuation allowances. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. Realized gains and losses on the sale of investments are determined on the basis of specific security identification. Estimates for valuation allowances and other than temporary declines are included in realized gains and losses on investments. (c) Revenues and Benefits Investment Products and Universal Life Insurance Products: Investment products consist primarily of individual and group variable and fixed deferred annuities. Universal life insurance products include universal life insurance, variable universal life insurance, corporate owned life insurance and other interest-sensitive life insurance policies. Revenues for investment products and universal life insurance products consist of net investment income, asset fees, cost of insurance, policy administration and surrender charges that have been earned and assessed against policy account balances during the period. Policy benefits and claims that are charged to expense include interest credited to policy account balances and benefits and claims incurred in the period in excess of related policy account balances. Traditional Life Insurance Products: Traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Premiums for traditional life insurance products are recognized as revenue when due. Benefits and expenses are associated with earned premiums so as to result in recognition of profits over the life of the contract. This association is accomplished by the provision for future policy benefits and the deferral and amortization of policy acquisition costs. 8 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued (d) Deferred Policy Acquisition Costs The costs of acquiring new business, principally commissions, certain expenses of the policy issue and underwriting department and certain variable sales expenses have been deferred. For investment products and universal life insurance products, deferred policy acquisition costs are being amortized with interest over the lives of the policies in relation to the present value of estimated future gross profits from projected interest margins, asset fees, cost of insurance, policy administration and surrender charges. For years in which gross profits are negative, deferred policy acquisition costs are amortized based on the present value of gross revenues. Deferred policy acquisition costs are adjusted to reflect the impact of unrealized gains and losses on fixed maturity securities available-for-sale as described in note 2(b). For traditional life insurance products, these deferred policy acquisition costs are predominantly being amortized with interest over the premium paying period of the related policies in proportion to the ratio of actual annual premium revenue to the anticipated total premium revenue. Such anticipated premium revenue was estimated using the same assumptions as were used for computing liabilities for future policy benefits. (e) Separate Accounts Separate account assets and liabilities represent contractholders' funds which have been segregated into accounts with specific investment objectives. For all but $915.4 million of separate account assets, the investment income and gains or losses of these accounts accrue directly to the contractholders. The activity of the separate accounts is not reflected in the consolidated statements of income and cash flows except for the fees the Company receives. (f) Future Policy Benefits Future policy benefits for investment products in the accumulation phase, universal life insurance and variable universal life insurance policies have been calculated based on participants' contributions plus interest credited less applicable contract charges. The average interest rate credited on investment product policy reserves was 5.6%, 6.0% and 6.1% for the years ended December 31, 1999, 1998 and 1997, respectively. Future policy benefits for traditional life insurance policies have been calculated by the net level premium method using interest rates varying from 6.0% to 10.5% and estimates of mortality, morbidity, investment yields and withdrawals which were used or which were being experienced at the time the policies were issued, rather than the assumptions prescribed by state regulatory authorities. 9 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued (g) Participating Business Participating business represents approximately 29% in 1999 (40% in 1998 and 50% in 1997) of the Company's life insurance in force, 69% in 1999 (74% in 1998 and 77% in 1997) of the number of life insurance policies in force, and 13% in 1999 (14% in 1998 and 27% in 1997) of life insurance statutory premiums. The provision for policyholder dividends is based on current dividend scales and is included in "Future policy benefits and claims" in the accompanying consolidated balance sheets. (h) Federal Income Tax The Company files a consolidated federal income tax return with Nationwide Mutual Insurance Company (NMIC), the majority shareholder of Nationwide Corp. The members of the consolidated tax return group have a tax sharing arrangement which provides, in effect, for each member to bear essentially the same federal income tax liability as if separate tax returns were filed. The Company utilizes the asset and liability method of accounting for income tax. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce the deferred tax assets to the amounts expected to be realized. (i) Reinsurance Ceded Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are deducted from the respective income and expense accounts. Assets and liabilities related to reinsurance ceded are reported on a gross basis. (j) Recently Issued Accounting Pronouncements In March 1998, The American Institute of Certified Public Accountant's Accounting Standards Executive Committee issued Statement of Position (SOP) 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use." The SOP, which has been adopted prospectively as of January 1, 1999, requires the capitalization of certain costs incurred in connection with developing or obtaining internal use software. Prior to the adoption of SOP 98-1, the Company expensed internal use software related costs as incurred. The effect of adopting the SOP was to increase net income for 1999 by $8.3 million. In June 1998, the Financial Accounting Standards Board (FASB) issued Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities" (FAS 133). FAS 133 establishes accounting and reporting standards for derivative instruments and for hedging activities. Contracts that contain embedded derivatives, such as certain investment and insurance contracts, are also addressed by the Statement. FAS 133 requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. In July 1999 the FASB issued Statement No. 137 which delayed the effective date of FAS 133 to fiscal years beginning after June 15, 2000. The Company plans to adopt this Statement in first quarter 2001 and is currently evaluating the impact on results of operations and financial condition. (k) Reclassification Certain items in the 1998 and 1997 consolidated financial statements have been reclassified to conform to the 1999 presentation. 10 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued (3) Investments The amortized cost, gross unrealized gains and losses and estimated fair value of securities available-for-sale as of December 31, 1999 and 1998 were:
Gross Gross Amortized unrealized unrealized Estimated (in millions) cost gains losses fair value --------- ------ ------- --------- December 31, 1999: Fixed maturity securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 428.4 $ 23.4 $ (2.4) $ 449.4 Obligations of states and political subdivisions 0.8 -- -- 0.8 Debt securities issued by foreign governments 110.6 0.6 (0.8) 110.4 Corporate securities 11,414.7 118.9 (218.6) 11,315.0 Mortgage-backed securities 3,422.8 25.8 (30.2) 3,418.4 --------- ------ ------- --------- Total fixed maturity securities 15,377.3 168.7 (252.0) 15,294.0 Equity securities 84.9 12.4 (4.4) 92.9 --------- ------ ------- --------- $15,462.2 $181.1 $(256.4) $15,386.9 ========= ====== ======= ========= December 31, 1998: Fixed maturity securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 255.9 $ 13.0 $ -- $ 268.9 Obligations of states and political subdivisions 1.6 -- -- 1.6 Debt securities issued by foreign governments 106.5 4.5 -- 111.0 Corporate securities 9,899.6 423.2 (18.7) 10,304.1 Mortgage-backed securities 3,457.7 104.2 (2.4) 3,559.5 --------- ------ ------- --------- Total fixed maturity securities 13,721.3 544.9 (21.1) 14,245.1 Equity securities 110.4 18.3 (1.5) 127.2 --------- ------ ------- --------- $13,831.7 $563.2 $ (22.6) $14,372.3 ========= ====== ======= =========
The amortized cost and estimated fair value of fixed maturity securities available-for-sale as of December 31, 1999, by expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Amortized Estimated (in millions) cost fair value --------- --------- Fixed maturity securities available for sale: Due in one year or less $ 847.0 $ 847.0 Due after one year through five years 5,240.5 5,205.7 Due after five years through ten years 5,046.9 5,005.2 Due after ten years 4,242.9 4,236.1 --------- --------- $15,377.3 $15,294.0 ========= =========
11 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued The components of unrealized (losses) gains on securities available-for-sale, net, were as follows as of December 31:
(in millions) 1999 1998 ------ ------- Gross unrealized (losses) gains $(75.3) $ 540.6 Adjustment to deferred policy acquisition costs 50.9 (116.6) Deferred federal income tax 8.5 (148.4) ------ ------- $(15.9) $ 275.6 ====== =======
An analysis of the change in gross unrealized (losses) gains on securities available-for-sale for the years ended December 31:
(in millions) 1999 1998 1997 ------- ----- ------ Securities available-for-sale: Fixed maturity securities $(607.1) $52.6 $137.5 Equity securities (8.8) 4.2 (2.7) ------- ----- ------ $(615.9) $56.8 $134.8 ======= ===== ======
Proceeds from the sale of securities available-for-sale during 1999, 1998 and 1997 were $513.1 million, $610.5 million and $574.5 million, respectively. During 1999, gross gains of $10.4 million ($9.0 million and $9.9 million in 1998 and 1997, respectively) and gross losses of $28.0 million ($7.6 million and $18.0 million in 1998 and 1997, respectively) were realized on those sales. In addition, gross gains of $15.1 million and gross losses of $0.7 million were realized in 1997 when the Company paid a dividend to NFS, which then made an equivalent dividend to Nationwide Corp., consisting of securities having an aggregate fair value of $850.0 million. The Company had $15.6 million of real estate investments at December 31, 1999 that were non-income producing the preceding twelve months. During 1998 the Company had investments of $42.4 million that were non-income producing, which consisted of $32.7 million of securities available-for-sale and $9.7 million of real estate. Real estate is presented at cost less accumulated depreciation of $24.8 million as of December 31, 1999 ($21.5 million as of December 31, 1998) and valuation allowances of $5.5 million as of December 31, 1999 ($5.4 million as of December 31, 1998). The recorded investment of mortgage loans on real estate considered to be impaired was $3.7 million as of both December 31, 1999 and 1998. No valuation allowance has been recorded for these loans as of December 31, 1999 or 1998. During 1999, the average recorded investment in impaired mortgage loans on real estate was approximately $3.7 million ($9.1 million in 1998) and there was no interest income recognized on those loans. Interest income recognized on impaired loans was $0.3 million in 1998 which is equal to interest income recognized using a cash-basis method of income recognition. 12 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued Activity in the valuation allowance account for mortgage loans on real estate is summarized for the years ended December 31:
(in millions) 1999 1998 1997 ----- ----- ----- Allowance, beginning of year $42.4 $42.5 $51.0 Additions (reductions) charged to operations 0.7 (0.1) (1.2) Direct write-downs charged against the allowance -- -- (7.3) Allowance on acquired mortgage loans 1.3 -- -- ----- ----- ----- Allowance, end of year $44.4 $42.4 $42.5 ===== ===== =====
An analysis of investment income by investment type follows for the years ended December 31:
(in millions) 1999 1998 1997 -------- -------- -------- Gross investment income: Securities available-for-sale: Fixed maturity securities $1,031.3 $ 982.5 $ 911.6 Equity securities 2.5 0.8 0.8 Mortgage loans on real estate 460.4 458.9 457.7 Real estate 28.8 40.4 42.9 Short-term investments 18.6 17.8 22.7 Other 26.5 30.7 21.0 -------- -------- -------- Total investment income 1,568.1 1,531.1 1,456.7 Less investment expenses 47.3 49.5 47.5 -------- -------- -------- Net investment income $1,520.8 $1,481.6 $1,409.2 ======== ======== ========
An analysis of realized gains (losses) on investments, net of valuation allowances, by investment type follows for the years ended December 31:
(in millions) 1999 1998 1997 ------- ----- ----- Securities available-for-sale: Fixed maturity securities $(25.0) $(0.7) $ 3.6 Equity securities 7.4 2.1 2.7 Mortgage loans on real estate (0.6) 3.9 1.6 Real estate and other 6.6 23.1 3.2 ------ ----- ----- $(11.6) $28.4 $11.1 ====== ===== =====
Fixed maturity securities with an amortized cost of $9.1 million as of December 31, 1999 and $6.5 million as of December 31, 1998 were on deposit with various regulatory agencies as required by law. (4) Derivative Financial Instruments The Company uses derivative financial instruments, principally interest rate swaps, interest rate futures contracts and foreign currency swaps, to manage market risk exposures associated with changes in interest rates and foreign currency exchange rates. Provided they meet specific criteria, interest rate swaps and futures are considered hedges and are accounted for under the accrual method and deferral method, respectively. The Company has no significant derivative positions that are not considered hedges. 13 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued Interest rate swaps are primarily used to convert specific investment securities and interest bearing policy liabilities from a fixed-rate to a floating-rate basis. Amounts receivable or payable under these agreements are recognized as an adjustment to net investment income or interest credited to policyholder account balances consistent with the nature of the hedged item. The changes in fair value of the interest rate swap agreements are not recognized on the balance sheet, except for interest rate swaps designated as hedges of fixed maturity securities available-for-sale, for which changes in fair values are reported in accumulated other comprehensive income. Interest rate futures contracts are primarily used to hedge the risk of adverse interest rate changes related to the Company's mortgage loan commitments and anticipated purchases of fixed rate investments. Gains and losses are deferred and, at the time of closing, reflected as an adjustment to the carrying value of the related mortgage loans or investments. The carrying value adjustments are amortized into net investment income over the life of the related mortgage loans or investments. Foreign currency swaps are used to convert cash flows from specific policy liabilities and investments denominated in foreign currencies into U.S. dollars at specified exchange rates. Gains and losses on foreign currency swaps are recorded in earnings based on the related spot foreign exchange rate at the end of the reporting period. Gains and losses on these contracts offset those recorded as a result of translating the hedged foreign currency denominated liabilities and investments to U.S. dollars. The following table summarizes the notional amount of derivative financial instruments classified as hedges outstanding as of December 31, 1999. Prior to 1999 the Company's activities in derivatives were not significant.
(in millions) ------------- Interest rate swaps Pay fixed/receive variable rate swaps hedging investments $362.7 Pay variable/receive fixed rate swaps hedging investments $ 28.5 Other contracts hedging investments $ 19.1 Pay variable/receive fixed rate swaps hedging liabilities $577.2 Foreign currency swaps Hedging foreign currency denominated investments $ 14.8 Hedging foreign currency denominated liabilities $577.2 Interest rate futures contracts $781.6
14 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued (5) Federal Income Tax The tax effects of temporary differences that give rise to significant components of the net deferred tax liability as of December 31, 1999 and 1998 are as follows:
(in millions) 1999 1998 ---- ---- Deferred tax assets: Fixed maturity securities $ 5.3 $ -- Future policy benefits 149.5 207.7 Liabilities in separate accounts 373.6 319.9 Mortgage loans on real estate and real estate 18.5 17.5 Other assets and other liabilities 51.1 58.9 ----- ------ Total gross deferred tax assets 598.0 604.0 Less valuation allowance (7.0) (7.0) ----- ------ Net deferred tax assets 591.0 597.0 ----- ------ Deferred tax liabilities: Deferred policy acquisition costs 724.4 568.7 Fixed maturity securities -- 212.2 Deferred tax on realized investment gains 34.7 34.8 Equity securities and other long-term investments 10.8 9.6 Other 26.5 21.6 ------ ------ Total gross deferred tax liabilities 796.4 846.9 ------ ------ Net deferred tax liability $205.4 $249.9 ====== ======
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the total gross deferred tax assets will not be realized. Nearly all future deductible amounts can be offset by future taxable amounts or recovery of federal income tax paid within the statutory carryback period. There has been no change in the valuation allowance for the years ended December 31, 1999, 1998 and 1997. The Company's current federal income tax liability was $104.7 million and $72.8 million as of December 31, 1999 and 1998, respectively. Federal income tax expense for the years ended December 31 was as follows: (in millions) 1999 1998 1997 ------ ------ ------ Currently payable $ 53.6 $186.1 $121.7 Deferred tax expense 147.8 4.3 28.5 ------ ------ ------ $201.4 $190.4 $150.2 ====== ====== ====== 15 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued Total federal income tax expense for the years ended December 31, 1999, 1998 and 1997 differs from the amount computed by applying the U.S. federal income tax rate to income before tax as follows:
1999 1998 1997 ---------------- ---------------- ---------------- (in millions) Amount % Amount % Amount % ------ ---- ------ ---- ------ ---- Computed (expected) tax expense $212.3 35.0 $195.0 35.0 $150.5 35.0 Tax exempt interest and dividends received deduction (7.3) (1.2) (4.9) (0.9) -- -- Income tax credits (4.3) (0.7) -- -- -- -- Other, net 0.7 0.1 0.3 0.1 (0.3) (0.1) ------ ---- ------ ---- ------ ---- Total (effective rate of each year) $201.4 33.2 $190.4 34.2 $150.2 34.9 ====== ==== ====== ==== ====== ====
Total federal income tax paid was $29.8 million, $173.4 million and $91.8 million during the years ended December 31, 1999, 1998 and 1997, respectively. (6) Comprehensive Income Comprehensive Income includes net income as well as certain items that are reported directly within separate components of shareholder's equity that bypass net income. Currently, the Company's only component of Other Comprehensive Income is unrealized gains (losses) on securities available-for-sale. The related before and after federal tax amounts are as follows:
(in millions) 1999 1998 1997 ------- ------ ------ Unrealized gains (losses) on securities available-for-sale arising during the period: Gross $(665.3) $ 58.2 $141.1 Adjustment to deferred policy acquisition costs 167.5 (12.9) (21.8) Related federal income tax (expense) benefit 171.4 (15.9) (41.7) ------- ------ ------ Net (326.4) 29.4 77.6 ------- ------ ------ Reclassification adjustment for net (gains) losses on securities available-for-sale realized during the period: Gross 17.6 (1.4) (6.3) Related federal income tax expense (benefit) (6.2) 0.5 2.2 ------- ------ ------ Net 11.4 (0.9) (4.1) ------- ------ ------ Total Other Comprehensive Income $(315.0) $ 28.5 $ 73.5 ======= ====== ======
(7) Fair Value of Financial Instruments The following disclosures summarize the carrying amount and estimated fair value of the Company's financial instruments. Certain assets and liabilities are specifically excluded from the disclosure requirements of financial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. 16 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued The fair value of a financial instrument is defined as the amount at which the financial instrument could be exchanged in a current transaction between willing parties. In cases where quoted market prices are not available, fair value is to be based on estimates using present value or other valuation techniques. Many of the Company's assets and liabilities subject to the disclosure requirements are not actively traded, requiring fair values to be estimated by management using present value or other valuation techniques. These techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Although fair value estimates are calculated using assumptions that management believes are appropriate, changes in assumptions could cause these estimates to vary materially. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in the immediate settlement of the instruments. Although insurance contracts, other than policies such as annuities that are classified as investment contracts, are specifically exempted from the disclosure requirements, estimated fair value of policy reserves on life insurance contracts is provided to make the fair value disclosures more meaningful. The tax ramifications of the related unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The following methods and assumptions were used by the Company in estimating its fair value disclosures: Fixed maturity and equity securities: The fair value for fixed maturity securities is based on quoted market prices, where available. For fixed maturity securities not actively traded, fair value is estimated using values obtained from independent pricing services or, in the case of private placements, is estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality and maturity of the investments. The fair value for equity securities is based on quoted market prices. The carrying amount and fair value for fixed maturity and equity securities exclude the fair value of derivatives contracts designated as hedges of fixed maturity and equity securities. Mortgage loans on real estate, net: The fair value for mortgage loans on real estate is estimated using discounted cash flow analyses, using interest rates currently being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. Fair value for mortgage loans in default is the estimated fair value of the underlying collateral. Policy loans, short-term investments and cash: The carrying amount reported in the consolidated balance sheets for these instruments approximates their fair value. Separate account assets and liabilities: The fair value of assets held in separate accounts is based on quoted market prices. The fair value of liabilities related to separate accounts is the amount payable on demand, which is net of certain surrender charges. Investment contracts: The fair value for the Company's liabilities under investment type contracts is disclosed using two methods. For investment contracts without defined maturities, fair value is the amount payable on demand. For investment contracts with known or determined maturities, fair value is estimated using discounted cash flow analysis. Interest rates used are similar to currently offered contracts with maturities consistent with those remaining for the contracts being valued. 17 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued Policy reserves on life insurance contracts: Included are disclosures for individual life insurance, universal life insurance and supplementary contracts with life contingencies for which the estimated fair value is the amount payable on demand. Also included are disclosures for the Company's limited payment policies, which the Company has used discounted cash flow analyses similar to those used for investment contracts with known maturities to estimate fair value. Commitments to extend credit: Commitments to extend credit have nominal fair value because of the short-term nature of such commitments. See note 8. Futures contracts: The fair value for futures contracts is based on quoted market prices. Interest rate and foreign currency swaps: The fair value for interest rate and foreign currency swaps are calculated with pricing models using current rate assumptions. Carrying amount and estimated fair value of financial instruments subject to disclosure requirements and policy reserves on life insurance contracts were as follows as of December 31:
1999 1998 ------------------------ ------------------------- Carrying Estimated Carrying Estimated (in millions) amount fair value amount fair value --------- --------- --------- ---------- Assets: Investments: Securities available-for-sale: Fixed maturity securities $15,294.0 $15,294.0 $14,245.1 $14,245.1 Equity securities 92.9 92.9 128.5 128.5 Mortgage loans on real estate, net 5,786.3 5,745.5 5,328.4 5,527.6 Policy loans 519.6 519.6 464.3 464.3 Short-term investments 416.0 416.0 289.1 289.1 Cash 4.8 4.8 3.4 3.4 Assets held in separate accounts 67,135.1 67,135.1 50,935.8 50,935.8 Liabilities: Investment contracts (16,977.7) (16,428.6) (15,468.7) (15,158.6) Policy reserves on life insurance contracts (4,883.9) (4,607.9) (3,914.0) (3,768.9) Liabilities related to separate accounts (67,135.1) (66,318.7) (50,935.8) (49,926.5) Derivative financial instruments: Interest rate swaps hedging assets 4.3 4.3 - - Interest rate swaps hedging liabilities - (24.2) - - Foreign currency swaps (11.8) (11.8) - - Futures contracts 1.3 1.3 (1.3) (1.3)
(8) Risk Disclosures The following is a description of the most significant risks facing life insurers and how the Company mitigates those risks: Credit Risk: The risk that issuers of securities owned by the Company or mortgagors on mortgage loans on real estate owned by the Company will default or that other parties, including reinsurers, which owe the Company money, will not pay. The Company minimizes this risk by adhering to a conservative investment strategy, by maintaining reinsurance and credit and collection policies and by providing for any amounts deemed uncollectible. 18 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued Interest Rate Risk: The risk that interest rates will change and cause a decrease in the value of an insurer's investments. This change in rates may cause certain interest-sensitive products to become uncompetitive or may cause disintermediation. The Company mitigates this risk by charging fees for non-conformance with certain policy provisions, by offering products that transfer this risk to the purchaser, and/or by attempting to match the maturity schedule of its assets with the expected payouts of its liabilities. To the extent that liabilities come due more quickly than assets mature, an insurer would have to borrow funds or sell assets prior to maturity and potentially recognize a gain or loss. Legal/Regulatory Risk: The risk that changes in the legal or regulatory environment in which an insurer operates will result in increased competition, reduced demand for a company's products, or create additional expenses not anticipated by the insurer in pricing its products. The Company mitigates this risk by offering a wide range of products and by operating throughout the United States, thus reducing its exposure to any single product or jurisdiction, and also by employing underwriting practices which identify and minimize the adverse impact of this risk. Financial Instruments with Off-Balance-Sheet Risk: The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business through management of its investment portfolio. These financial instruments include commitments to extend credit in the form of loans and derivative financial instruments. These instruments involve, to varying degrees, elements of credit risk in excess of amounts recognized on the consolidated balance sheets. Commitments to fund fixed rate mortgage loans on real estate are agreements to lend to a borrower, and are subject to conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a deposit. Commitments extended by the Company are based on management's case-by-case credit evaluation of the borrower and the borrower's loan collateral. The underlying mortgage property represents the collateral if the commitment is funded. The Company's policy for new mortgage loans on real estate is to lend no more than 75% of collateral value. Should the commitment be funded, the Company's exposure to credit loss in the event of nonperformance by the borrower is represented by the contractual amounts of these commitments less the net realizable value of the collateral. The contractual amounts also represent the cash requirements for all unfunded commitments. Commitments on mortgage loans on real estate of $216.2 million extending into 2000 were outstanding as of December 31, 1999. The Company also had $28.0 million of commitments to purchase fixed maturity securities outstanding as of December 31, 1999. Notional amounts of derivative financial instruments, primarily interest rate swaps, interest rate futures contracts and foreign currency swaps, significantly exceed the credit risk associated with these instruments and represent contractual balances on which calculations of amounts to be exchanged are based. Credit exposure is limited to the sum of the aggregate fair value of positions that have become favorable to NLIC, including accrued interest receivable due from counterparties. Potential credit losses are minimized through careful evaluation of counterparty credit standing, selection of counterparties from a limited group of high quality institutions, collateral agreements and other contract provisions. At December 31, 1999, NLIC's credit risk from these derivative financial instruments was $6.1 million. Significant Concentrations of Credit Risk: The Company grants mainly commercial mortgage loans on real estate to customers throughout the United States. The Company has a diversified portfolio with no more than 23% (22% in 1998) in any geographic area and no more than 2% (2% in 1998) with any one borrower as of December 31, 1999. As of December 31, 1999, 39% (42% in 1998) of the remaining principal balance of the Company's commercial mortgage loan portfolio financed retail properties. 19 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued Reinsurance: The Company has entered into a reinsurance contract to cede a portion of its general account individual annuity business to The Franklin Life Insurance Company (Franklin). Total recoveries due from Franklin were $143.6 million and $187.9 million as of December 31, 1999 and 1998, respectively. The contract is immaterial to the Company's results of operations. The ceding of risk does not discharge the original insurer from its primary obligation to the policyholder. Under the terms of the contract, Franklin has established a trust as collateral for the recoveries. The trust assets are invested in investment grade securities, the market value of which must at all times be greater than or equal to 102% of the reinsured reserves. (9) Pension Plan and Postretirement Benefits Other Than Pensions The Company is a participant, together with other affiliated companies, in a pension plan covering all employees who have completed at least one year of service. The Company funds pension costs accrued for direct employees plus an allocation of pension costs accrued for employees of affiliates whose work efforts benefit the Company. Assets of the Retirement Plan are invested in group annuity contracts of NLIC. Pension cost (benefit) charged to operations by the Company during the years ended December 31, 1999, 1998 and 1997 were $(8.3) million, $2.0 million and $7.5 million, respectively. The Company has recorded a prepaid pension asset of $13.3 million and $5.0 million as of December 31, 1999 and 1998, respectively. In addition to the defined benefit pension plan, the Company, together with other affiliated companies, participates in life and health care defined benefit plans for qualifying retirees. Postretirement life and health care benefits are contributory and generally available to full time employees who have attained age 55 and have accumulated 15 years of service with the Company after reaching age 40. Postretirement health care benefit contributions are adjusted annually and contain cost-sharing features such as deductibles and coinsurance. In addition, there are caps on the Company's portion of the per-participant cost of the postretirement health care benefits. These caps can increase annually, but not more than three percent. The Company's policy is to fund the cost of health care benefits in amounts determined at the discretion of management. Plan assets are invested primarily in group annuity contracts of NLIC. The Company elected to immediately recognize its estimated accumulated postretirement benefit obligation (APBO), however, certain affiliated companies elected to amortize their initial transition obligation over periods ranging from 10 to 20 years. The Company's accrued postretirement benefit expense as of December 31, 1999 and 1998 was $49.6 million and $40.1 million, respectively, and the net periodic postretirement benefit cost (NPPBC) for 1999, 1998 and 1997 was $4.9 million, $4.1 million and $3.0 million, respectively. 20 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued Information regarding the funded status of the pension plan as a whole and the postretirement life and health care benefit plan as a whole as of December 31, 1999 and 1998 follows:
Pension Benefits Postretirement Benefits ------------------ ----------------------- (in millions) 1999 1998 1999 1998 --------------------------------------------------------- -------- -------- ------- ------- Change in benefit obligation: Benefit obligation at beginning of year $2,185.0 $2,033.8 $ 270.1 $ 237.9 Service cost 80.0 87.6 14.2 9.8 Interest cost 109.9 123.4 17.6 15.4 Actuarial (gain) loss (95.0) 123.2 (64.4) 15.6 Plan settlement in 1999/curtailment in 1998 (396.1) (107.2) -- -- Benefits paid (72.4) (75.8) (11.0) (8.6) Acquired companies -- -- 13.3 -- -------- -------- ------- ------- Benefit obligation at end of year 1,811.4 2,185.0 239.8 270.1 -------- -------- ------- ------- Change in plan assets: Fair value of plan assets at beginning of year 2,541.9 2,212.9 77.9 69.2 Actual return on plan assets 161.8 300.7 3.5 5.0 Employer contribution 12.4 104.1 20.9 12.1 Plan settlement (396.1) -- -- -- Benefits paid (72.4) (75.8) (11.0) (8.4) -------- -------- ------- ------- Fair value of plan assets at end of year 2,247.6 2,541.9 91.3 77.9 -------- -------- ------- ------- Funded status 436.2 356.9 (148.5) (192.2) Unrecognized prior service cost 28.2 31.5 -- -- Unrecognized net (gains) losses (402.0) (345.7) (46.7) 16.0 Unrecognized net (asset) obligation at transition (7.7) (11.0) 1.1 1.3 -------- -------- ------- ------- Prepaid (accrued) benefit cost $ 54.7 $ 31.7 $(194.1) $(174.9) ======== ======== ======= =======
21 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued Basis for measurements, funded status of the pension plan and postretirement life and health care benefit plan:
Pension Benefits Postretirement Benefits ---------------- ----------------------- 1999 1998 1999 1998 ---- ---- ------- ------ Weighted average discount rate 7.00% 5.50% 7.80% 6.65% Rate of increase in future compensation levels 5.25% 3.75% -- -- Assumed health care cost trend rate: Initial rate -- -- 15.00% 15.00% Ultimate rate -- -- 5.50% 8.00% Uniform declining period -- -- 5 Years 15 Years
The net periodic pension cost for the pension plan as a whole for the years ended December 31, 1999, 1998 and 1997 follows:
(in millions) 1999 1998 1997 -------------------------------------------------------------------------------- ----------- ------------ Service cost (benefits earned during the period) $ 80.0 $ 87.6 $ 77.3 Interest cost on projected benefit obligation 109.9 123.4 118.6 Expected return on plan assets (160.3) (159.0) (139.0) Recognized gains (9.1) (3.8) -- Amortization of prior service cost 3.2 3.2 3.2 Amortization of unrecognized transition obligation (asset) (1.4) 4.2 4.2 ------- ------- -------- $ 22.3 $ 55.6 $ 64.3 ======= ======= ========
Effective December 31, 1998, Wausau Service Corporation (WSC) ended its affiliation with Nationwide Insurance and employees of WSC ended participation in the plan. A curtailment gain of $67.1 million resulted (consisting of a $107.2 million reduction in the projected benefit obligation, net of the write-off of the $40.1 million remaining unamortized transition obligation related to WSC). During 1999, the plan transferred assets to settle its obligation related to WSC employees . A settlement gain of $32.9 million was recognized. Basis for measurements, net periodic pension cost for the pension plan:
1999 1998 1997 ------ ----- ----- Weighted average discount rate 6.08% 6.00% 6.50% Rate of increase in future compensation levels 4.33% 4.25% 4.75% Expected long-term rate of return on plan assets 7.33% 7.25% 7.25%
22 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued The amount of NPPBC for the postretirement benefit plan as a whole for the years ended December 31, 1999, 1998 and 1997 was as follows:
(in millions) 1999 1998 1997 ------- ----------- ----------- Service cost (benefits attributed to employee service during the year) $14.2 $ 9.8 $ 7.0 Interest cost on accumulated postretirement benefit obligation 17.6 15.4 14.0 Actual return on plan assets (3.5) (5.0) (3.6) Amortization of unrecognized transition obligation of affiliates 0.6 0.2 0.2 Net amortization and deferral (1.8) 1.2 (0.5) ----- ----- ----- $27.1 $21.6 $17.1 ===== ===== =====
Actuarial assumptions used for the measurement of the NPPBC for the postretirement benefit plan for 1999, 1998 and 1997 were as follows:
1999 1998 1997 ------- ------ ------ Discount rate 6.65% 6.70% 7.25% Long term rate of return on plan assets, net of tax 7.15% 5.83% 5.89% Assumed health care cost trend rate: Initial rate 15.00% 12.00% 11.00% Ultimate rate 5.50% 6.00% 6.00% Uniform declining period 5 Years 12 Years 12 Years
For the postretirement benefit plan as a whole, a one percentage point increase or decrease in the assumed health care cost trend rate would have no impact on the APBO as of December 31, 1999 and have no impact on the NPPBC for the year ended December 31, 1999. (10) Shareholder's Equity, Regulatory Risk-Based Capital, Retained Earnings and Dividend Restrictions Ohio, NLIC's and NLAIC's state of domicile, imposes minimum risk-based capital requirements that were developed by the NAIC. The formulas for determining the amount of risk-based capital specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of the company's regulatory total adjusted capital, as defined by the NAIC, to its authorized control level risk-based capital, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. NLIC and NLAIC each exceed the minimum risk-based capital requirements. The statutory capital and surplus of NLIC as of December 31, 1999, 1998 and 1997 was $1.35 billion, $1.32 billion and $1.13 billion, respectively. The statutory net income of NLIC for the years ended December 31, 1999, 1998 and 1997 was $276.2 million, $171.0 million and $111.7 million, respectively. The Company is limited in the amount of shareholder dividends it may pay without prior approval by the Department. As of December 31, 1999 $40.2 million of dividends could be paid by NLIC without prior approval. 23 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued In addition, the payment of dividends by NLIC may also be subject to restrictions set forth in the insurance laws of New York that limit the amount of statutory profits on NLIC's participating policies (measured before dividends to policyholders) that can inure to the benefit of the Company and its shareholder. The Company currently does not expect such regulatory requirements to impair its ability to pay operating expenses and shareholder dividends in the future. (11) Transactions With Affiliates During second quarter 1999 the Company entered into a modified coinsurance arrangement to reinsure the 1999 operating results of an affiliated company, Employers Life Insurance Company of Wausau (ELOW) retroactive to January 1, 1999. In September 1999, NFS acquired ELOW for $120.8 million and immediately merged ELOW into NLIC terminating the modified coinsurance arrangement. Because ELOW was an affiliate, the Company accounted for the merger similar to poolings-of-interests; however, prior period financial statements were not restated due to immateriality. The reinsurance and merger combined contributed $1.46 million to year to date net income. The Company has a reinsurance agreement with NMIC whereby all of the Company's accident and health business is ceded to NMIC on a modified coinsurance basis. The agreement covers individual accident and health business for all periods presented and group and franchise accident and health business since July 1, 1999. Either party may terminate the agreement on January 1 of any year with prior notice. Prior to July 1, 1999 group and franchise accident and health business and a block of group life insurance policies were ceded to ELOW under a modified coinsurance agreement. Under a modified coinsurance agreement, invested assets are retained by the ceding company and investment earnings are paid to the reinsurer. Under the terms of the Company's agreements, the investment risk associated with changes in interest rates is borne by the reinsurer. Risk of asset default is retained by the Company, although a fee is paid to the Company for the retention of such risk. The ceding of risk does not discharge the original insurer from its primary obligation to the policyholder. The Company believes that the terms of the modified coinsurance agreements are consistent in all material respects with what the Company could have obtained with unaffiliated parties. Revenues ceded to NMIC and ELOW for the years ended December 31, 1999, 1998 and 1997 were $193.0 million, $216.9 million, and $315.3 million, respectively, while benefits, claims and expenses ceded were $216.9 million, $259.3 million, and $326.6 million, respectively. Pursuant to a cost sharing agreement among NMIC and certain of its direct and indirect subsidiaries, including the Company, NMIC provides certain operational and administrative services, such as sales support, advertising, personnel and general management services, to those subsidiaries. Expenses covered by such agreement are subject to allocation among NMIC and such subsidiaries. Measures used to allocate expenses among companies include individual employee estimates of time spent, special cost studies, salary expense, commission expense and other methods agreed to by the participating companies that are within industry guidelines and practices. In addition, beginning in 1999 Nationwide Services Company, a subsidiary of NMIC, provides computer, telephone, mail, employee benefits administration, and other services to NMIC and certain of its direct and indirect subsidiaries, including the Company, based on specified rates for units of service consumed. For the years ended December 31, 1999, 1998 and 1997, the Company made payments to NMIC and Nationwide Services Company totaling $124.1 million, $95.0 million, and $85.8 million, respectively. In addition, the Company does not believe that expenses recognized under these agreements are materially different than expenses that would have been recognized had the Company operated on a stand-alone basis. The Company leases office space from NMIC and certain of its subsidiaries. For the years ended December 31, 1999, 1998 and 1997, the Company made lease payments to NMIC and its subsidiaries of $9.9 million, $8.0 million and $8.4 million, respectively. 24 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued The Company also participates in intercompany repurchase agreements with affiliates whereby the seller will transfer securities to the buyer at a stated value. Upon demand or a stated period, the securities will be repurchased by the seller at the original sales price plus a price differential. Transactions under the agreements during 1999 and 1998 were not material. The Company believes that the terms of the repurchase agreements are materially consistent with what the Company could have obtained with unaffiliated parties. The Company and various affiliates entered into agreements with Nationwide Cash Management Company (NCMC), an affiliate, under which NCMC acts as a common agent in handling the purchase and sale of short-term securities for the respective accounts of the participants. Amounts on deposit with NCMC were $411.7 million and $248.4 million as of December 31, 1999 and 1998, respectively, and are included in short-term investments on the accompanying consolidated balance sheets. As part of certain restructuring activities that occurred prior to the March 1997 IPO, the Company paid a dividend valued at $485.7 million to Nationwide Corp. on January 1, 1997 consisting of the outstanding shares of common stock of ELOW, National Casualty Company (NCC) and West Coast Life Insurance Company (WCLIC). Also, on February 24, 1997, the Company paid a dividend to NFS, and NFS paid an equivalent dividend to Nationwide Corp., consisting of securities having an aggregate fair value of $850.0 million. The Company recognized a gain of $14.4 million on the transfer of securities. Certain annuity products are sold through three affiliated companies, which are also subsidiaries of NFS. Total commissions and fees paid to these affiliates for the three years ended December 31, 1999 were $56.0 million, $60.0 million and $66.1 million, respectively. (12) Bank Lines of Credit NFS, NLIC and NMIC are parties to a $600.0 million revolving credit facility which provides for a $600.0 million loan over a five year term on a fully revolving basis with a group of national financial institutions. The credit facility provides for several and not joint liability with respect to any amount drawn by any party. NFS, NLIC and NMIC pay facility and usage fees to the financial institutions to maintain the revolving credit facility. As of December 31, 1999 the Company had no amounts outstanding under the agreement. (13) Contingencies On October 29, 1998, the Company was named in a lawsuit filed in Ohio state court related to the sale of deferred annuity products for use as investments in tax-deferred contributory retirement plans (Mercedes Castillo v. Nationwide Financial Services, Inc., Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company). On May 3, 1999, the complaint was amended to, among other things, add Marcus Shore as a second plaintiff. The amended complaint is brought as a class action on behalf of all persons who purchased individual deferred annuity contracts or participated in group annuity contracts sold by the Company and the other named Company affiliates which were used to fund certain tax-deferred retirement plans. The amended complaint seeks unspecified compensatory and punitive damages. No class has been certified. On June 11, 1999, the Company and the other named defendants filed a motion to dismiss the amended complaint. On March 8, 2000, the court denied the motion to dismiss the amended complaint filed by the Company and other named defendants. The Company intends to defend this lawsuit vigorously. (14) Segment Information The Company uses differences in products as the basis for defining its reportable segments. The Company reports three product segments: Variable Annuities, Fixed Annuities and Life Insurance. 25 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued The Variable Annuities segment consists of annuity contracts that provide the customer with access to a wide range of investment options, tax-deferred accumulation of savings, asset protection in the event of an untimely death, and flexible payout options including a lump sum, systematic withdrawal or a stream of payments for life. The Company's variable annuity products consist almost entirely of flexible premium deferred variable annuity contracts. The Fixed Annuities segment consists of annuity contracts that generate a return for the customer at a specified interest rate fixed for a prescribed period, tax-deferred accumulation of savings, and flexible payout options including a lump sum, systematic withdrawal or a stream of payments for life. Such contracts consist of single premium deferred annuities, flexible premium deferred annuities and single premium immediate annuities. The Fixed Annuities segment includes the fixed option under variable annuity contracts. The Life Insurance segment consists of insurance products, including variable universal life insurance and corporate-owned life insurance products, that provide a death benefit and may also allow the customer to build cash value on a tax-deferred basis. In addition to the product segments, the Company reports corporate revenue and expenses, investments and related investment income supporting capital not specifically allocated to its product segments, revenues and expenses of its investment advisor subsidiary, revenues and expenses related to group annuity contracts sold to Nationwide Insurance employee and agent benefit plans and all realized gains and losses on investments in a Corporate and Other segment. During 1999 the Company revised the allocation of net investment income among its Life Insurance and Corporate and Other segments. Also, certain amounts previously reported as other income were reclassified to operating expense. Amounts reported for prior periods have been restated to reflect these changes. The following table summarizes the financial results of the Company's business segments for the years ended December 31, 1999, 1998 and 1997.
Variable Fixed Life Corporate (in millions) Annuities Annuities Insurance and Other Total ------------------------------------ --------- --------- --------- --------- --------- 1999: Net investment income (1) $ (41.5) $ 1,134.5 $ 253.1 $ 174.7 $ 1,520.8 Other operating revenue 668.2 43.4 393.0 77.8 1,182.4 --------- --------- -------- -------- --------- Total operating revenue (2) 626.7 1,177.9 646.1 252.5 2,703.2 --------- --------- -------- -------- --------- Interest credited to policyholder account balances -- 837.5 130.5 128.3 1,096.3 Amortization of deferred policy acquisition costs 162.8 49.7 60.1 -- 272.6 Other benefits and expenses 173.6 113.5 334.7 94.4 716.2 --------- --------- -------- -------- --------- Total expenses 336.4 1,000.7 525.3 222.7 2,085.1 --------- --------- -------- -------- --------- Operating income before federal income tax 290.3 177.2 120.8 29.8 618.1 Realized losses on investments -- -- -- (11.6) (11.6) --------- --------- -------- -------- --------- Consolidated income before federal tax expense $ 290.3 $ 177.2 $ 120.8 $ 18.2 $ 606.5 ========= ========= ======== ======== ========= Assets as of year end $62,599.7 $17,134.8 $6,616.7 $6,324.7 $92,675.9 ========= ========= ======== ======== =========
26 NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES (a wholly owned subsidiary of Nationwide Financial Services, Inc.) Notes to Consolidated Financial Statements, Continued
Variable Fixed Life Corporate (in millions) Annuities Annuities Insurance and Other Total ------------------------------------ --------- --------- --------- --------- --------- 1998: Net investment income (1) $ (31.3) $ 1,116.6 $ 225.6 $ 170.7 $ 1,481.6 Other operating revenue 532.9 35.7 318.5 78.6 965.7 --------- --------- -------- -------- --------- Total operating revenue (2) 501.6 1,152.3 544.1 249.3 2,447.3 --------- --------- -------- -------- --------- Interest credited to policyholder account balances -- 828.6 115.4 125.0 1,069.0 Amortization of deferred policy acquisition costs 123.9 44.2 46.4 -- 214.5 Other benefits and expenses 159.3 104.2 293.5 78.1 635.1 --------- --------- -------- -------- --------- Total expenses 283.2 977.0 455.3 203.1 1,918.6 --------- --------- -------- -------- --------- Operating income before federal income tax 218.4 175.3 88.8 46.2 528.7 Realized gains on investments -- -- -- 28.4 28.4 --------- --------- -------- -------- --------- Consolidated income before federal tax expense $ 218.4 $ 175.3 $ 88.8 $ 74.6 $ 557.1 ========= ========= ======== ======== ========= Assets as of year end $47,668.7 $15,215.7 $5,187.6 $6,270.1 $74,342.1 ========= ========= ======== ======== ========= 1997: Net investment income (1) $ (26.8) $ 1,098.2 $ 184.9 $ 152.9 $ 1,409.2 Other operating revenue 413.9 43.2 283.4 56.6 797.1 --------- --------- -------- -------- --------- Total operating revenue (2) 387.1 1,141.4 468.3 209.5 2,206.3 --------- --------- -------- -------- --------- Interest credited to policyholder account balances -- 823.4 78.5 114.7 1,016.6 Amortization of deferred policy acquisition costs 87.8 39.8 39.6 -- 167.2 Benefits and expenses 148.4 108.7 283.5 63.1 603.7 --------- --------- -------- -------- --------- Total expenses 236.2 971.9 401.6 177.8 1,787.5 --------- --------- -------- -------- --------- Operating income before federal income tax 150.9 169.5 66.7 31.7 418.8 Realized gains on investments -- -- -- 11.1 11.1 --------- --------- -------- -------- --------- Consolidated income before federal tax expense $ 150.9 $ 169.5 $ 66.7 $ 42.8 $ 429.9 ========= ========= ======== ======== ========= Assets as of year end $35,278.7 $14,436.3 $3,901.4 $6,174.3 $59,790.7 ========= ========= ======== ======== =========
- ---------- (1) The Company's method of allocating net investment income results in a charge (negative net investment income) to the Variable Annuities segment which is recognized in the Corporate and Other segment. The charge relates to non-invested assets which support this segment on a statutory basis. (2) Excludes realized gains and losses on investments. The Company has no significant revenue from customers located outside of the United States nor does the Company have any significant long-lived assets located outside the United States. 265 PART C. OTHER INFORMATION Item 24. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial Statements: (1) Financial statements included in Prospectus. (Part A): Condensed Financial Information. in Part B: Those financial statements required by Item 23 to be included in Part B have been incorporated therein by reference to the Prospectus (Part A). Nationwide Variable Account-9: Independent Auditors' Report. Statement of Assets, Liabilities and Contract Owners' Equity as of December 31, 1999. Statement of Operations for the years ended December 31, 1999 and 1998. Statement of Changes in Contract Owners' Equity for the years ended December 31, 1999 and 1998. Notes to Financial Statements. Nationwide Life Insurance Company: Independent Auditors' Report. Consolidated Balance Sheets as of December 31, 1999 and 1998. Consolidated Statements of Income for the years ended December 31, 1999, 1998 and 1997. Consolidated Statements of Shareholder's Equity for the years ended December 31, 1999, 1998 and 1997. Consolidated Statements of Cash Flows for the years ended December 31, 1999, 1998 and 1997. Notes to Consolidated Financial Statements. 266 Item 24. (b) Exhibits (1) Resolution of the Depositor's Board of Directors authorizing the establishment of the Registrant - Filed previously with initial registration statement (File No. 333-28995) and is hereby incorporated by reference. (2) Not Applicable (3) Underwriting or Distribution of contracts between the Registrant and Principal Underwriter - Attached hereto. (4) The form of the variable annuity contract - Attached hereto. (5) Variable Annuity Application - Filed previously with this Registration Statement (333-28995) and incorporated by reference. (6) Articles of Incorporation of Depositor - Filed previously with initial registration statement (File No. 333-28995) and is hereby incorporated by reference. (7) Contract of reinsurance in connection with the variable annuity contracts offered - Attached hereto. (8) Not Applicable (9) Opinion of Counsel - Filed previously with initial registration statement (File No. 333-28995) and is hereby incorporated by reference. (10) Not Applicable (11) Not Applicable (12) Not Applicable (13) Performance Advertising Calculation Schedule - Filed previously with initial registration statement (File No. 333-28995) and is hereby incorporated by reference. 267 Item 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH DEPOSITOR ---------------- -------------- Lewis J. Alphin Director 519 Bethel Church Road Mount Olive, NC 28365-6107 A. I. Bell Director 4121 North River Road West Zanesville, OH 43701 Kenneth D. Davis Director 7229 Woodmansee Road Leesburg, OH 45135 Keith W. Eckel Director 1647 Falls Road Clarks Summit, PA 18411 Willard J. Engel Director 301 East Marshall Street Marshall, MN 56258 Fred C. Finney Director 1558 West Moreland Road Wooster, OH 44691 Joseph J. Gasper President and Chief Operating Officer One Nationwide Plaza and Director Columbus, OH 43215 Dimon R. McFerson Chairman and Chief Executive Officer One Nationwide Plaza and Director Columbus, OH 43215 David O. Miller Chairman of the Board and Director 115 Sprague Drive Hebron, OH 43025 Yvonne L. Montgomery Director Xerox Corporation Suite 200 1401 H Street NW Washington, DC 20005-2110 Ralph M. Paige Director Federation of Southern Cooperatives/Land Assistance Fund 2769 Church Street East Point, GA 30344 James F. Patterson Director 8765 Mulberry Road Chesterland, OH 44026
268
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH DEPOSITOR ---------------- -------------- Arden L. Shisler Director 1356 North Wenger Road Dalton, OH 44618 Robert L. Stewart Director 88740 Fairview Road Jewett, OH 43986 Nancy C. Thomas Director 1767D Westwood Avenue Alliance, OH 44601 Richard D. Headley Executive Vice President - Chief One Nationwide Plaza Information Technology Officer Columbus, OH 43215 Robert A. Oakley Executive Vice President- One Nationwide Plaza Chief Financial Officer Columbus, OH 43215 Robert J. Woodward, Jr. Executive Vice President One Nationwide Plaza Chief Investment Officer Columbus, OH 43215 James E. Brock Senior Vice President - Corporate One Nationwide Plaza Development Columbus, OH 43215 Charles A. Bryan Senior Vice President - One Nationwide Plaza Chief Actuary - Property and Casualty Columbus, OH 43215 John R. Cook, Jr. Senior Vice President - One Nationwide Plaza Chief Communications Officer Columbus, OH 43215 Thomas L. Crumrine Senior Vice President One Nationwide Plaza Columbus, OH 43215 David A. Diamond Senior Vice President - One Nationwide Plaza Corporate Controller Columbus, OH 43215 Philip C. Gath Senior Vice President - One Nationwide Plaza Chief Actuary - Nationwide Financial Columbus, OH 43215 Patricia R. Hatler Senior Vice President, One Nationwide Plaza General Counsel and Secretary Columbus, OH 43215
269
NAME AND PRINCIPAL POSITIONS AND OFFICES BUSINESS ADDRESS WITH DEPOSITOR ---------------- -------------- David K. Hollingsworth Senior Vice President - One Nationwide Plaza Business Development and Columbus, OH 43215 Sponsor Relations David R. Jahn Senior Vice President - One Nationwide Plaza Commercial Insurance Columbus, OH 43215 Donna A James Senior Vice President - Chief Human One Nationwide Plaza Resources Officer Columbus, OH 43215 Richard A. Karas Senior Vice President - Sales - One Nationwide Plaza Financial Services Columbus, OH 43215 Gregory S. Lashutka Senior Vice President - One Nationwide Plaza Corporate Relations Columbus, OH 43215 Edwin P. McCausland, Jr. Senior Vice President - One Nationwide Plaza Fixed Income Securities Columbus, OH 43215 Mark D. Phelan Senior Vice President One Nationwide Plaza Columbus, OH 43215 Douglas C. Robinette Senior Vice President - One Nationwide Plaza Claims and Finance Services Columbus, OH 43215 Mark R. Thresher Senior Vice President - One Nationwide Plaza Finance - Nationwide Financial Columbus, OH 43215 Richard M. Waggoner Senior Vice President - One Nationwide Plaza Operations Columbus, OH 43215 Susan A. Wolken Senior Vice President - Product One Nationwide Plaza Management and Nationwide Columbus, OH 43215 Financial Marketing
Item 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT. * Subsidiaries for which separate financial statements are filed ** Subsidiaries included in the respective consolidated financial statements *** Subsidiaries included in the respective group financial statements filed for unconsolidated subsidiaries **** other subsidiaries 270
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------------ The 401(k) Companies, Inc. Texas Holding Company The 401(k) Company Texas Third-party administrator for 401(k) plans 401(k) Investment Advisors, Inc. Texas Investment advisor registered with the SEC 401(k) Investments Services, Inc. Texas NASD registered broker-dealer Affiliate Agency, Inc. Delaware Insurance agency marketing life insurance & annuity products through financial institutions Affiliate Agency of Ohio, Inc. Ohio Insurance agency marketing life insurance & annuity products through financial institutions AID Finance Services, Inc. Iowa Holding Company ALLIED General Agency Company Iowa Managing general agent and surplus lines broker for property & casualty insurance products ALLIED Group, Inc. Iowa Property & casualty holding company ALLIED Group Insurance Marketing Iowa Direct marketer for property and Company casualty insurance products ALLIED Group Merchant Banking Iowa Broker-Dealer Corporation ALLIED Property and Casualty Insurance Iowa Underwrites general property & Company casualty insurance Allnations, Inc. Ohio Promotes international cooperative insurance organizations AMCO Insurance Company Iowa Underwrites general property & casualty insurance American Marine Underwriters, Inc. Florida Underwriting manager for ocean cargo and bulk insurance Auto Direkt Insurance Company Germany Insurance Company Cal-Ag Insurance services, Inc. California Captive insurance brokerage firm CalFarm Insurance Agency California Former marketing company for traditional agent producers of CalFarm Insurance Company CalFarm Insurance Company California Multi-line insurance company Caliber Funding Delaware A limited purpose corporation Colonial County Mutual Insurance Texas Insurance Company Company Columbus Insurance Brokerage and Germany General service insurance broker Service GmbH
271
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------------ Cooperative Service Company Nebraska Insurance agency that sells and services commercial insurance Depositors Insurance Company Iowa Underwrites property & casualty insurance eNationwide, LLC Ohio A limited liability company to provide administrative services to Nationwide's direct operations Excaliber Funding Corporation Delaware Limited purpose corporation F&B, Inc. Iowa Insurance Agency Farmland Mutual Insurance Company Iowa Mutual Insurance Company Financial Horizons Distributors Alabama Insurance agency marketing life Agency of Alabama, Inc. insurance and annuity products through financial institutions Financial Horizons Distributors Ohio Insurance marketing life insurance and Agency of Ohio, Inc. annuity products through financial institutions Financial Horizons Distributors Oklahoma Insurance marketing life insurance and Agency of Oklahoma, Inc. annuity products through financial institutions Financial Horizons Distributors Texas Insurance marketing life insurance and Agency of Texas, Inc. annuity products through financial institutions *Financial Horizons Investment Trust Massachusetts Diversified, open-end investment company Financial Horizons Securities Oklahoma Limited broker-dealer doing business Corporation solely in the financial institution market GatesMcDonald Health Plus Inc. Ohio Managed Care Organization Gates, McDonald & Company Ohio Services employers for managing workers' and unemployment compensation matters Gates, McDonald & Company of Nevada Nevada Self-insurance administration, claims examinations and data processing services Gates, McDonald & Company of New York, New York Workers' compensation/self-insured Inc. claims administration services to employers with exposure in New York Insurance Intermediaries, Inc. Ohio Insurance agency providing commercial property & casualty brokerage services Irvin L. Schwartz and Associates, Inc. Ohio Insurance Agency Landmark Financial Services of New New York Insurance agency marketing life York, Inc. insurance and annuity products through financial institutions Leben Direkt Insurance Company Germany Life insurance through direct mail
272
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------------ Lone Star General Agency, Inc. Texas General agent to market non-standard automobile and motorcycle insurance for Colonial Mutual Insurance Company MedProSolutions, Inc. Massachusetts Provides third-party administration services for workers compensation, automobile injury and disability claims Midwest Printing Services, Ltd. Iowa General printing services Morley & Associates, Inc. Oregon Insurance brokerage Morley Capital Management, Inc. Oregon Investment adviser and stable value money management Morley Financial Services, Inc. Oregon Holding Company Morley Research Associates, Ltd. Delaware Credit research consulting **MRM Investments, Inc. Ohio Owns and operates a recreational ski facility **National Casualty Company Wisconsin Insurance Company National Casualty Company of America, England Insurance Company Ltd. National Deferred Compensation, Inc. Ohio Administers deferred compensation plans for public employees **National Premium and Benefit Delaware Provides third-party administration Administration Company services Nationwide Advisory Services, Inc. Ohio Registered broker-dealer providing investment management and administrative services **Nationwide Agency, Inc. Ohio Insurance Agency Nationwide Agribusiness Insurance Iowa Provides property & casualty insurance Company primarily to agricultural business Nationwide Arena, LLC Ohio A limited liability company related to arena development *Nationwide Asset Allocation Trust Ohio Diversified open-end investment company Nationwide Assurance Company Wisconsin Underwrites non-standard automobile and motorcycle insurance Nationwide Cash Management Company Ohio Investment Securities Agent
273
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------------ Nationwide Corporation Ohio Holding company for entities affiliated with Nationwide Mutual Insurance Company Nationwide Exclusive Distribution Ohio A limited liability company providing Company, LLC agency support services to Nationwide exclusive agents Nationwide Financial Assignment Ohio An assignment company to administer Company structured settlement business Nationwide Financial Institution Delaware Insurance Agency Distributors Agency, Inc. Nationwide Financial Institution New Mexico Insurance Agency Distributors Agency, Inc. of New Mexico Nationwide Financial Institution Massachusetts Insurance Agency Distributors Agency, Inc. of Massachusetts Nationwide Financial Services Bermuda Long-term insurer which issued (Bermuda) Ltd. variable annuity and variable life products to persons outside the U.S. & Bermuda Nationwide Financial Services Capital Delaware Trust which issues and sells Trust securities & uses proceeds to acquire debentures Nationwide Financial Services Capital Delaware Trust which issues and sells Trust II securities & uses proceeds to acquire debentures Nationwide Financial Services, Inc. Delaware Holding Company for entities associated with Nationwide Mutual Insurance Company Nationwide Foundation Ohio Not-for profit corporation Nationwide General Insurance Company Ohio Primarily provides automobile and fire insurance to select customers Nationwide Global Finance, LLC Ohio Act as a support company for Nationwide Global Holdings, Inc. & its international capitalization efforts Nationwide Global Funds Cayman Islands Exempted company with limited liability for purpose of issuing investment shares to segregated asset accounts of Nationwide Financial Services (Bermuda) Ltd. and to non-U.S. resident investors Nationwide Global Holdings, Inc. Ohio Holding Company for Nationwide Insurance Enterprise international operations Nationwide Global Holdings, Inc.-NGH Grand Duchy of Analyze European market of life Luxembourg Branch Luxembourg insurance
274
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------------ Nationwide Global Holdings-Hong Kong, Hong Kong Primarily a holding company for Limited Nationwide Global Holdings, Inc. Asian operations Nationwide Global Holdings-NGH Brasil Brazil Holding company Participacoes LTDA Nationwide Health Plans, Inc. Ohio Health insuring organization Nationwide Home Mortgage Company Iowa Mortgage lendor *Nationwide Indemnity Company Ohio Reinsurance company assuming business from Nationwide Mutual Insurance Company and other insurers within the Nationwide Insurance Enterprise Nationwide Insurance Company of America Wisconsin Independent agency personal lines underwriter of property & casualty insurance Nationwide Insurance Company of Florida Ohio Transacts general insurance business except life insurance Nationwide Insurance Golf Charities, Ohio Not-for-profit corporation Inc. Nationwide International Underwriters California Special risks, excess & surplus lines underwriting manager Nationwide Investing Foundation Michigan Provide investors with continuous source of investment under management of trustees *Nationwide Investing Foundation II Massachusetts Diversified, open-end investment company Nationwide Investment Services Oklahoma Registered broker-dealer Corporation Nationwide Investors Services, Inc. Ohio Stock Transfer Agent **Nationwide Life and Annuity Ohio Life Insurance Company Insurance Company **Nationwide Life Insurance Company Ohio Life Insurance Company Nationwide Lloyds Texas Commercial property insurance in Texas Nationwide Management Systems, Inc. Ohio Preferred provider organization, products and related services Nationwide Mutual Fire Insurance Ohio Mutual Insurance Company Company *Nationwide Mutual Funds Ohio Diversified, open-end investment company Nationwide Mutual Insurance Company Ohio Mutual Insurance Company
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COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------------ Nationwide Properties, Ltd. Ohio Develop, own and operate real estate and real estate investments Nationwide Property and Casualty Ohio Insurance Company Insurance Company Nationwide Realty Investors, Inc. Ohio Develop, own and operate real estate and real estate investments Nationwide Retirement Solutions, Inc. Delaware Market and administer deferred compensation plans for public employees Nationwide Retirement Solutions, Inc. Alabama Market and administer deferred of Alabama compensation plans for public employees Nationwide Retirement Solutions, Inc. Arizona Market and administer deferred of Arizona compensation plans for public employees Nationwide Retirement Solutions, Inc. Arkansas Market and administer deferred of Arkansas compensation plans for public employees Nationwide Retirement Solutions, Inc. Montana Market and administer deferred of Montana compensation plans for public employees Nationwide Retirement Solutions, Inc. Nevada Market and administer deferred of Nevada compensation plans for public employees Nationwide Retirement Solutions, Inc. New Mexico Market and administer deferred of New Mexico compensation plans for public employees Nationwide Retirement Solutions, Inc. Ohio Market variable annuity contracts to of Ohio members of the National Education Association in the state of Ohio Nationwide Retirement Solutions, Inc. Oklahoma Market variable annuity contracts to of Oklahoma members of the National Education Association in the state of Oklahoma Nationwide Retirement Solutions, Inc. South Dakota Market and administer deferred of South Dakota compensation plans for public employees Nationwide Retirement Solutions, Inc. Texas Market and administer deferred of Texas compensation plans for public employees Nationwide Retirement Solutions, Inc. Wyoming Market variable annuity contracts to of Wyoming members of the National Education Association in the state of Wyoming
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COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------------ Nationwide Retirement Solutions Massachusetts Market and administer deferred Insurance Agency Inc. compensation plans for public employees Nationwide Seguradora S.A. Brazil Engage in elementary, health & life insurance; private open pension and wealth concession plans *Nationwide Separate Account Trust Massachusetts Diversified, open-end investment company Nationwide Services Company, LLC. Ohio Single member limited liability company performing shared services functions for the Nationwide Insurance Enterprise Nationwide Trust Company, FSB United States Federal savings bank chartered by the Office of Thrift Supervision in U.S. Department of Treasury to exercise custody & fiduciary powers Neckura Holding Company Germany Administrative services for Neckura Insurance Group Neckura Insurance Company Germany Insurance Company Neckura Life Insurance Company Germany Life and health insurance company Nevada Independent Nevada Workers' compensation administrative Companies-Construction services to Nevada employers in the construction industry Nevada Independent Companies-Health Nevada Workers' compensation administrative and Nonprofit services to Nevada employers in health & nonprofit industries Nevada Independent Companies- Nevada Workers' compensation administrative Hospitality and Entertainment services to Nevada employers in the hospitality & entertainment industries Nevada Independent Companies- Nevada Workers' compensation administrative Manufacturing, Transportation and services to Nevada employers in the Distribution manufacturing, transportation and distribution industries NFS Distributors, Inc. Delaware Holding company for Nationwide Financial Services, Inc. distribution companies NGH Luxembourg, S.A Luxembourg Acts primarily as holding company for Nationwide Global Holdings, Inc. European operations NGH Netherlands, B.V. The Netherlands Holding company for other overseas companies
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COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------------ NGH UK, Ltd. United Kingdom Assist Nationwide Global Holdings, Inc. with European operations and marketing Northpointe Capital LLC Delaware Limited liability company for investments PanEuroLife Luxembourg Life Insurance company providing individual life insurance primarily in the UK, Belgium and France Pension Associates, Inc. Wisconsin Pension plan administration and record keeping services Portland Investment Services, Inc. Oregon NASD registered broker-dealer Premier Agency, Inc. Iowa Insurance Agency Riverview Agency, Inc. Texas Has a pending application to become a licensed insurance agency with the Texas Department of Insurance Scottsdale Indemnity Company Ohio Insurance Company Scottsdale Insurance Company Ohio Insurance Company Scottsdale Surplus Lines Insurance Arizona Provides excess and surplus lines Company insurance coverage on a non-admitted basis SVM Sales GmbH, Neckura Insurance Germany Recruits and supervises external sales Group partners who obtain new business for the Neckura Group as well as to offer financial services Union Bond & Trust Company Oregon Oregon state bank with trust powers Villanova Capital, Inc. Delaware Holding Company Villanova Mutual Fund Capital Trust Delaware Trust designed to act as a registered investment advisor Villanova SA Capital Trust Delaware Trust designed to act as a registered investment advisor Western Heritage Insurance Company Arizona Underwrites excess and surplus lines of property and casualty insurance
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COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------- * MFS Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * NACo Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide DC Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts Account Nationwide DCVA-II Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Separate Account No. 1 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Multi-Flex Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide VA Separate Account-A Ohio Nationwide Life and Annuity Issuer of Annuity Contracts Separate Account * Nationwide VA Separate Account-B Ohio Nationwide Life and Annuity Issuer of Annuity Contracts Separate Account * Nationwide VA Separate Account-C Ohio Nationwide Life and Annuity Issuer of Annuity Contracts Separate Account * Nationwide Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Variable Account-II Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Variable Account-3 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Variable Account-4 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Variable Account-5 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Variable Account-6 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Fidelity Advisor Variable Ohio Nationwide Life Separate Issuer of Annuity Contracts Account Account * Nationwide Variable Account-8 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Variable Account-9 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account * Nationwide Variable Account-10 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account Nationwide Variable Account-11 Ohio Nationwide Life Separate Issuer of Annuity Contracts Account
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COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS ORGANIZATION SECURITIES (SEE ATTACHED CHART UNLESS OTHERWISE INDICATED) -------------------------- ---------------- ------------- ------------------------------- * Nationwide VL Separate Account-A Ohio Nationwide Life and Annuity Issuer of Life Insurance Separate Account Policies Nationwide VL Separate Account-B Ohio Nationwide Life and Annuity Issuer of Life Insurance Separate Account Policies * Nationwide VL Separate Account-C Ohio Nationwide Life and Annuity Issuer of Life Insurance Separate Account Policies * Nationwide VL Separate Account-D Ohio Nationwide Life and Annuity Issuer of Life Insurance Separate Account Policies * Nationwide VLI Separate Account Ohio Nationwide Life Separate Issuer of Life Insurance Account Policies * Nationwide VLI Separate Account-2 Ohio Nationwide Life Separate Issuer of Life Insurance Account Policies * Nationwide VLI Separate Account-3 Ohio Nationwide Life Separate Issuer of Life Insurance Account Policies * Nationwide VLI Separate Account-4 Ohio Nationwide Life Separate Issuer of Life Insurance Account Policies Nationwide VLI Separate Account-5 Ohio Nationwide Life Separate Issuer of Life Insurance Account Policies
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(left side) - ------------------------ | NATIONWIDE INSURANCE | | GOLF CHARITIES, INC. | | | | MEMBERSHIP | | NONPROFIT | | CORPORATION | - ------------------------ ------------------------------------------------------------------------------------------------------------------------- | | - --------------------------- --------------------------- ---------------------------- | ALLIED GROUP | | ALLIED | | | | MERCHANT BANKING | | GROUP, INC. | | | | CORPORATION | | (AGI) | | NATIONWIDE LLOYDS | | | | | | | |Common Stock: 10,000 | |-------|Common Stock: 850 Shares |---| | | |------------ Shares | | |------------ | | | A TEXAS LLOYDS |================================ | | | | | | | | | Cost | | | Cost | | | | | ---- | | | ---- | | | | |Casualty- | | |Casualty- | | | | |100% $150,055 | | |100% $243,344,521 | | | | - --------------------------- | --------------------------- | ---------------------------- | | - --------------------------- | --------------------------- | ---------------------------- | NATIONWIDE INSURANCE | | | AMCO | | | DEPOSITORS | | COMPANY OF AMERICA | | | INSURANCE COMPANY | | | INSURANCE COMPANY | | | | | (AMCO) | | | (DEPOSITORS) | |Common Stock: 12,000 | | |Common Stock: 500,000 | | |Common Stock: 300,000 | |------------ Shares | | |------------ Shares | | |------------ Shares | | |---| | |---|---| | | Cost | | | Cost | | | Cost | | ---- | | | ---- | | | ---- | | | | | | | | | |AGI-100% $215,273,000 | | |AGI-100% $147,425,540| | |AGI 100% $22,251,842 | - --------------------------- | --------------------------- | ---------------------------- | | | - --------------------------- | --------------------------- | ---------------------------- | AID FINANCE | | | ALLIED | | | ALLIED PROPERTY | | SERVICES, INC. | | | GENERAL AGENCY | | | AND CASUALTY | | (AID FINANCE) | | | COMPANY | | | INSURANCE COMPANY | |Common Stock: 10,000 | | |Common Stock: 5,000 | | |Common Stock: 300,000 | |------------ Shares | | |------------ Shares | | |------------ Shares | | |---| | | |---| | | Cost | | Cost | | | Cost | | ---- | | ---- | | | ---- | |AGI-100% $19,545,634| |AMCO-100% $135,342 | | |AGI-100% $47,018,643 | - --------------------------- --------------------------- | ---------------------------- | | - --------------------------- --------------------------- | ---------------------------- | ALLIED | | MIDWEST | | | NATIONWIDE | | GROUP INSURANCE | | PRINTING SERVICES, | | | HOME MORTGAGE | | MARKETING COMPANY | | LTD. | | | COMPANY (NHMC) | | | |Common Stock: 10,000 | | | | |Common Stock: 20,000 | |------------ Shares | | |Common Stock: 54,348 | |------------ Shares | | |---|---|------------ Shares | | | | | | | | | | | | | | | | | | | | | | | Cost | | Cost | | | | | ---- | | ---- | | | | | Aid | |AGI-100% $610,000 | | |AGI-80% | | Finance-100% $16,059,469| --------------------------- | ---------------------------- - -------------------------- | | --------------------------- | ---------------------------- | PREMIER | | | AGMC | | AGENCY, | | | REINSURANCE, LTD. | | INC. | | | | |Common Stock: 100,000 | | |Common Stock: 11,000 | |------------ Shares | | |------------ Shares | | |---| | | | Cost | | Cost | | ---- | | ---- | |AGI-100% $100,000 | |NHMC-100% $11,000 | --------------------------- ----------------------------
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NATIONWIDE(R) (middle) ------------------------------------------ ------------------------------------------ | | | | | NATIONWIDE MUTUAL | | NATIONWIDE MUTUAL | | INSURANCE COMPANY |==============================================| FIRE INSURANCE COMPANY | | (CASUALTY) | | (FIRE) | | | | | ------------------------------------------ ------------------------------------------ | || | | - --| || |--------------------------------------------------------------------| |----------------------- || | || |--------------------------------------------------------------|------------------- || | | || -------------------------------- | -------------------------------- ----------------------------------- || | FARMLAND MUTUAL | | | NATIONWIDE GENERAL | | NECKURA HOLDING | || | INSURANCE COMPANY | | | INSURANCE COMPANY | | COMPANY (NECKURA) | || |Guaranty Fund | | | | | | =====||==|------------ |---| | |Common Stock: 20,000 | |Common Stock: 10,000 | |Certificate | | |---|------------ Shares | |--|------------ Shares | |----------- | | | | | | | | | Cost | | | | Cost | | | Cost | | ---- | | | | ---- | | | ---- | |Casualty $500,000 | | | |Casualty-100% $5,944,422 | | |Casualty-100% $142,943,140 | -------------------------------- | | -------------------------------- | -------------------------------- | | | -------------------------------- | | -------------------------------- | -------------------------------- | F & B, INC. | | | | NATIONWIDE PROPERTY | | | NECKURA | | | | | | AND CASUALTY | | | INSURANCE COMPANY | |Common Stock: 1 Share | | | | INSURANCE COMPANY | | | | |------------ | | | |Common Stock: 60,000 | |--|Common Stock: 6,000 | | |---| |---|------------ Shares | | |------------ Shares | | Cost | | | | | | | | | ---- | | | | Cost | | | Cost | |Farmland | | | | ---- | | | ---- | |Mutual-100% $10 | | | |Casualty-100% $6,000,000 | | |Neckura-100% DM 6,000,000 | -------------------------------- | | -------------------------------- | -------------------------------- | | | -------------------------------- | | -------------------------------- | -------------------------------- | COOPERATIVE SERVICE | | | | NATIONWIDE ASSURANCE | | | NECKURA LIFE | | COMPANY | | | | COMPANY | | | INSURANCE COMPANY | |Common Stock: 600 Shares | | | | | | | | |------------ |---- |---|Common Stock: 1,750 | |--|Common Stock: 4,000 | | | | |------------ Shares | | |------------ Shares | | Cost | | | | | | ---- | | | Cost | | | Cost | |Farmland | | | ---- | | | ---- | |Mutual-100% $3,506,173 | | |Casualty-100% $41,750,000 | | |Neckura-100% DM 15,825,681| -------------------------------- | -------------------------------- | -------------------------------- | | -------------------------------- | -------------------------------- | -------------------------------- | SCOTTSDALE | | | NATIONWIDE AGRIBUSINESS | | | COLUMBUS INSURANCE | | INSURANCE COMPANY | | | INSURANCE COMPANY | | | BROKERAGE AND SERVICE | | (SIC) | | | | | | GmbH | |Common Stock: 30,136 | | |Common Stock: 1,000,000 | | |Common Stock: 1 Share | |---|------------ Shares |--------|---|------------ Shares | |--|------------ | | | | | | | | | | | | | | | Cost | | | Cost | | | Cost | | | ---- | | | ---- | | | ---- | | |Casualty-99.9% $26,714,335 | | |Neckura-100% DM 51,639 | | |Casualty-100% $150,000,500 | | |Other Capital | | | | | | | | |------------- | | | | | | | | |Casualty-Ptd. $713,576 | | | | | -------------------------------- | ------------------------------- | -------------------------------- | | | | -------------------------------- | -------------------------------- | -------------------------------- | | SCOTTSDALE | | | NATIONAL CASUALTY | | | LEBEN DIREKT | | | SURPLUS LINES | | | COMPANY | | | INSURANCE COMPANY | | | INSURANCE COMPANY | | | (NC) | | | | | |Common Stock: 10,000 | | | Common Stock: 100 Shares | | |Common Stock: 4,000 Shares | |---|------------ Shares | ----| ------------- | |--|------------ | | | | | | | | | | | Cost | | Cost | | | Cost | | | ---- | | ---- | | | ---- | | |SIC-100% $6,000,000 | |Casualty-100% $67,442,439 | | |Neckura-100% DM 4,000,000 | | | | | | | | | | -------------------------------- -------------------------------- | -------------------------------- | | | | -------------------------------- -------------------------------- | -------------------------------- | | NATIONAL PREMIUM & | | NCC OF AMERICAN, LTD. | | | AUTO DIREKT | | | BENEFIT ADMINISTRATION | | (INACTIVE) | | | INSURANCE COMPANY | | | COMPANY | | | | | | | |Common Stock: 10,000 | | | | |Common Stock: 1500 Shares | |---|------------ Shares | | | |--|------------ | | | | | | | | | | | Cost | | | | | Cost | | | ---- | | | | | ---- | | |SIC-100% $10,000 | |NC-100% | | |Neckura-100% DM 1,643,149 | | -------------------------------- -------------------------------- | -------------------------------- | | | -------------------------------- -------------------------------- | -------------------------------- | | WESTERN . | | SUN DIRECT | | | SVM SALES | | | HERITAGE INSURANCE | | VERSICHERUNGS - | | | GmbH | | | COMPANY | | AKTIENGESCLISCHAFT | | | | | |Common Stock: 4,776,076 | |Common Stock: 1 Share | | |Common Stock: 50 Shares | |---|------------ Shares | |------------ |------------| | | | | | | | | Cost | | Cost | | Cost | | ---- | | ---- | | ---- | |SIC-100% $57,000,000 | |Neckura-100% $9,600,000 | |Neckura-100% DM 50,000 | | | | EURO | | | -------------------------------- -------------------------------- --------------------------------
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(right side) ------------------------ | NATIONWIDE | | FOUNDATION | | | | MEMBERSHIP | | NONPROFIT | | CORPORATION | ------------------------ - ---------------------------------------------------------------------------------------------------------------------| | - --------------------------------------------------------------------------------------------------------------- | | | | | | | | | -------------------------------- -------------------------------- | ------------------------------------- | SCOTTSDALE | | NATIONWIDE | | | NATIONWIDE | | INDEMNITY COMPANY | | COMMUNITY URBAN | | | CORPORATION | | | | REDEVELOPMENT | | | | | | | CORPORATION | | |Common Stock: Control: | |Common Stock: 50,000 | |Common Stock: 10 Shares | | |------------ ------- | |-----|------------ Shares | |----|------------ | | |$13,642,432 100% | | | | | | Cost | | | Shares Cost | | | Cost | | | ---- | | | ------ ---- | | | ---- | | |Casualty-100% $1,000 | | |Casualty 12,992,922 $1,008,497,908 | | |Casualty-100% $8,800,000 | | | | | |Fire 649,510 36,862,514 | | | | | | | | | (See Page 2) | | -------------------------------- | -------------------------------- | ------------------------------------- | | | | -------------------------------- | -------------------------------- | ------------------------------------- | | NATIONWIDE | | | NATIONWIDE CASH | | | ALLNATIONS, INC. | | | INDEMNITY COMPANY | | | MANAGEMENT COMPANY | | |Common Stock: 12,167 Shares | | | | | | | | |------------- Cost | |-----|Common Stock: 28,000 | |----|Common Stock: 100 Shares | |-----| ---- | | |------------ Shares | | |------------ | | |Casualty-18.6% $90,630 | | | | | | Cost | | |Fire-18.6% $90,722 | | | Cost | | | ---- | | |Preferred Stock 1,466 Shares | | | ---- | | |Casualty-100% $11,226 | | |--------------- Cost | | |Casualty-100% $594,529,000 | | | | | | ---- | | | | | | | | |Casualty-6.8% $100,000 | | | | | | | | |Fire-6.8% $100,000 | | -------------------------------- | -------------------------------- | ------------------------------------- | | | | -------------------------------- | -------------------------------- | ------------------------------------- | | LONE STAR | | | NATIONWIDE INSURANCE | | | CALFARM INSURANCE | | | GENERAL AGENCY, INC. | | | COMPANY OF FLORIDA | | | COMPANY | | | | | | | | |Common Stock: 49,800 Shares | ------|Common Stock: 1,000 | |----|Common Stock: 10,000 Shares| |-----|------------- | | |------------ Shares | | |------------ | | | | | | | | Cost | | | | | Cost | | | ---- | | | | | ---- | | |Casualty-100% $300,000,000 | |Casualty-100% | | |Casualty-100% $5,000,000 | | | | | | | -------------------------------- | -------------------------------- ------------------------------------- | || | | | -------------------------------- | -------------------------------- ------------------------------------- | | COLONIAL COUNTY | | | NATIONWIDE INTERNATIONAL | | CALFARM INSURANCE | | | MUTUAL INSURANCE | | | UNDERWRITERS | | AGENCY | | | COMPANY | | |Common Stock: 1,000 Shares | | | | | | |----|------------ | | | | | | | | | | | | | | | | Cost | |Common Stock: 1,000 shares | | |Surplus Debentures: | | | ---- | |------------- | | |------------------- | | |Casualty-100% $10,000 | | | | | Cost | | -------------------------------- | | | | ---- | | | | | |Colonial $500,000 | | -------------------------------- |CalFarm Insurance | | |Lone Star 150,000 | | | NATIONWIDE | |Company - 100% | | -------------------------------- | | ARENA LLC | ------------------------------------- | | | | | | -------------------------------- | | | ------------------------------------- | | NATIONWIDE SERVICES | | | | | CAL-AG INSURANCE | | | COMPANY, LLC | | | | | SERVICES | | | | | | | | | | |Single Member Limited | |....| | |Common Stock: 1,000 Shares | |.....|Liability Company | | | | |------------ | | | | | | | | | | | | | |Casualty-90% | |CalFarm Insurance | | |Casualty-100% | | | | |Agency-100% | | | | | -------------------------------- ------------------------------------- | -------------------------------- | | | -------------------------------- | | | NATIONWIDE | | -------------------------------- | | EXCLUSIVE DISTRIBUTION | | | AMERICAN MARINE | | | COMPANY, LLC (NEDCO) | | | UNDERWRITERS, INC. | | | | | | | | | Single Member Limited | | |Common Stock: 20 Shares | |....| Liability Compnany | |-----|------------ | | | | | | Cost | | | | | | ---- | | |Casualty-100% | | |Casualty-100% $5,020 | | | | | | | | -------------------------------- | -------------------------------- | | | | -------------------------------- | --------------------------------- | | INSURANCE | | | eNATIONWIDE, LLC | | | INTERMEDIARIES, INC | | | | | | | | | Single Member Limited | | |Common Stock 1,615 Shares | | | Liability Company | |----|------------ | | | | | Cost | |.....| | | ---- | | | |Casualty-100% $1,615,000 | | | | | |Casualty-100% | -------------------------------- | | --------------------------------- Subsidiary Companies -- Solid Line Contractual Association -- Double Line Limited Liability Company -- Dotted Line December 31, 1999
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(Left Side) |----------------------------------|-----------------------------------|----------------------------- | | | ----------------------------- ----------------------------- ----------------------------- | NATIONWIDE LIFE INSURANCE | | NATIONWIDE | | NATIONWIDE TRUST | | COMPANY (NW LIFE) | | FINANCIAL SERVICES | | COMPANY, FSB | | | | CAPITAL TRUST | | Common Stock: 2,800,000 | | Common Stock: 3,814,779 | | Preferred Stock: | | ------------ Shares | | ------------ Shares | | --------------- | | Cost | | | | | | ---- | | NFS--100% | | NFS--100% | | NFS--100% $3,000,000 | ----------------|------------ ----------------------------- ----------------------------- | | ||-------------------------- - ----------------------------- | ----------------------------- ----------------------------- | NATIONWIDE LIFE AND | | | NATIONWIDE | | NATIONWIDE FINANCIAL | | ANNUITY INSURANCE COMPANY | | | ADVISORY SERVICES, INC | | INSTITUTION DISTRIBUTORS | | | | | (NW ADV. SERV.) | | AGENCY, INC. (NFIDAI) | | Common Stock: 66,000 | | | Common Stock: 7,676 | | | | ------------ Shares |--|--| ------------ Shares |==== | | | | | | | || | | | Cost | | | Cost | || | Common Stock: 1,000 Shares| | ---- | | | ---- | || | ------------ | | NW Life-100% $58,070,003 | | | NW Life-100% $5,996,261 | || | NFSDI-100% | - ----------------------------- | ----------------------------- || --------------|--||---------- | || | || - ----------------------------- | ----------------------------- || ----------------------------- | || ----------------------- | NATIONWIDE INVESTMENT | | | NATIONWIDE MUTUAL | || | FINANCIAL HORIZONS | | || | | | SERVICES CORPORATION | | | FUNDS | || | DISTRIBUTORS AGENCY | | || | | | | | | | || | OF ALABAMA, INC. | | || | | | Common Stock: 5,000 | | | OHIO BUSINESS TRUST | || | | | || | FLORIDA | | ------------ Shares | | | | || | Common Stock: 10,000 | | || | RECORDS |=== | |--| | |==|| | ------------ Shares |-- || | ADMINISTRATOR | | | | | | || | | | || | | | Cost | | | | || | Cost | | || | | | ---- | | | | || | ---- | | || | | | NW Life-100% $529,728 | | | | || | NFIDAI-100% $100 | | || | | - ----------------------------- | ----------------------------- || ----------------------------- | || ----------------------- | || | || - ----------------------------- | ----------------------------- || ------------------------------| || ----------------------- | NATIONWIDE FINANCIAL | | | NATIONWIDE | || | LANDMARK FINANCIAL | | || | | | ASSIGNMENT | | | SEPARATE ACCOUNT | || | SERVICES OF | | || | | | COMPANY | | | TRUST | || | NEW YORK, INC. | | || | | | | | | | || | | | || | | | | | | | || | Common Stock: 10,000 | | || | FINANCIAL HORIZONS | | |--| | MASSACHUSETTS |==|| | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY | | | | | BUSINESS TRUST | || | | | || | OF OHIO, INC. | | | | | | || | Cost | | || | | | | | | | || | ---- | | || | | | NW Life-100% | | | | || | NFIDAI-100% $10,100 | | || | | - ----------------------------- | ----------------------------- || ----------------------------- | || ----------------------- | || | || - ----------------------------- | ----------------------------- || ----------------------------- | || ----------------------- | NATIONWIDE REALTY | | | NATIONWIDE | || | FINANCIAL HORIZONS | | || | | | INVESTORS, LTD. | | | GLOBAL FUND | || | SECURITIES CORP. | | || | | | | | | | || | | | || | | | Units: | | | CAYMAN ISLANDS | || | Common Stock: 10,000 | | || | FINANCIAL HORIZONS | | ------ |--| | EXEMPTED LLC |==|| | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY | | | | | | || | | | || | OF OKLAHOMA, INC | | | | | | || | Cost | | || | | | NW Life-90% | | | | || | ---- | | || | | | NW Mutual-10% | | | | || | NFIDAI-100% $153,000 | | || | | - ----------------------------- | ----------------------------- || ----------------------------- | || ----------------------- | || | || - ----------------------------- | ----------------------------- || ----------------------------- | || ----------------------- | NATIONWIDE | | | NATIONWIDE | || | AFFILIATE AGENCY, INC. | | || | | | PROPERTIES, LTD. | | | ASSET ALLOCATION TRUST | || | | | || | | | | | | | || | | | || | | | Units: |--| | | || | Common Stock: 100 | | || | FINANCIAL HORIZONS | | ------ | | OHIO BUSINESS TRUST |==== | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY | | | | | | | | || | OF TEXAS, INC | | | | | | Cost | | || | | | NW Life-97.6% | | | | ---- | | || | | | NW Mutual-2.4% | | | | NFIDAI-100% $100 | | || | | - ----------------------------- ----------------------------- ----------------------------- | || ----------------------- | || ----------------------------- | || ----------------------- | NATIONWIDE FINANCIAL | | || | | | INSTITUTION DISTRIBUTORS | | || | | | INS. AGENCY, INC. | | || | | | OF MASS. | | || | AFFILIATE | | |-- ====| AGENCY OF | |Common Stock: 100 Shares | | | OHIO, INC | |------------ | | | | | | | | | |NFIDAI-100% | | | | ----------------------------- | ----------------------- ----------------------------- | | NATIONWIDE FINANCIAL | | | INSTITUTION DISTRIBUTORS | | | INS. AGENCY, INC. | | | OF NEW MEXICO |-- | | |Common Stock: 100 Shares | |------------ | | | |NFIDAI-100% | -----------------------------
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(Center) NATIONWIDE(R) - -------------------------------------------------- -------------------------------------------------- | NATIONWIDE MUTUAL | | NATIONWIDE MUTUAL | | INSURANCE COMPANY |================================| FIRE INSURANCE COMPANY | | (CASUALTY) | | | (FIRE) | - -------------------------------------------------- | -------------------------------------------------- | ----------------------------------------- | NATIONWIDE CORPORATION (NW CORP) | | Common Stock: Control: | | ------------ ------- | | 13,642,432 100% | | Shares Cost | | ------ ---- | |Casualty 12,992,922 $1,008,497,908 | |Fire 649,510 36,862,514 | -------------------|--------------------- |-------------------------------------------------------------- ---------------|------------- | NATIONWIDE FINANCIAL | | SERVICES, INC. (NFS) | | | |Common Stock: Control: | |------------ ------- | | | | | |Class A Public--100% | |Class B NW Corp--100% | ---------------|------------- | - -----------|-------------------------|--------------------------|-----------------------------|----------------------|-------------- | | | | | - -----------|------------ ------------|-------------- -----------|------------- ---------------|--------- ------------|-------------- |NFS DISTRIBUTORS, INC.| | IRVIN L. SCHWARTZ | | NATIONWIDE FINANCIAL | |VILLANOVA CAPITAL, INC.| | NATIONWIDE FINANCIAL | | (NFSDI) | | AND ASSOCIATES, INC. | |SERVICES (BERMUDA) INC.| |Common Stock: 958,750 | | SERVICES CAPITAL | | | |Common Stock: Control: | |Common Stock: 250,000 | |------------- Shares | | TRUST II | | | |------------- -------- | |------------- Shares | |NFS-96% | | | | | |Class A Other-100%| | Cost | |Preferred Stock:500,000| | | |NFS-100% | |Class B NFS -100%| | ---- | |--------------- Shares | | | | | | | |NFS-100% $3,500,000 | |NFS-100% | | NFS-100% | - -----------|------------ --------------------------- ------------------------- ---------------|--------- ------------------------- | | | - -----------|---------------------------- -----------------------------|-----------------------| - -----------|------------ --------------|----------- ------------|------------ --------------|---------- ------------|------------- | NATIONAL DEFERRED | | NATIONWIDE RETIREMENT | | VILLANOVA S.A. CAPITAL| | MORLEY FINANCIAL | | VILLANOVA MUTUAL FUND | | COMPENSATION, INC. | | SOLUTIONS, INC. (NRS)| | TRUST (VSA) | |SERVICES, INC. (MORLEY)| | CAPITAL TRUST (VMF) | | | |Common Stock: 236,494 | | | |Common Stock: 82,343 | | | | | |------------- Shares | | | |------------ Shares | | | | | | | | | | | | | |NFSDI-100% | | | | | |VILLANOVA CAPITAL, INC.| | | | | |NFSDI-100% | |DELAWARE BUSINESS TRUST| |-100% | |DELAWARE BUSINESS TRUST| - ----------||------------ -------------------|------ ---------------------|--- ---------------------|--- ------------------------- || | | | || | | ----- || ---------------------------- | ------------------------- | ------------------------- | ------------------------ || | NATIONWIDE RETIREMENT | | |NATIONWIDE RETIREMENT | | | NATIONWIDE | | | MORLEY & | || |SOLUTIONS, INC. OF ALABAMA| | | SOLUTIONS, INC. OF | | |INVESTORS SERVICES, INC.| | | ASSOCIATES, INC. | || | | | | NEW MEXICO | | | | | | | || |Common Stock: 10,000 | | | Common Stock: 1,000 | | | Common Stock: 5 Shares | | | Common Stock: 3,500 | || |------------- Shares |--|--| ------------- Shares | |--|------------- | |--| ------------- Shares | ============ | Cost | | | Cost | | | Cost | | | Cost | | ---- | | | ---- | | | ---- | | | ---- | |NRS-100% $1,000 | | |NRS-100% $1,000 | | |VSA-100% $5,000 | | |Morley-100% $1,000| ---------------------------- | -------------------------- | -------------------------- | ------------------------ | | | ---------------------------- | -------------------------- | -------------------------- | ----------------------- | NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | | VILLANOVA VALUE | | | EXCALIBER FUNDING | |SOLUTIONS, INC. OF ARIZONA| | | SOLUTIONS, INC. OF | | | INVESTOR, LLC | | | CORPORATION | | | | | SO. DAKOTA | | | | | | | |Common Stock: 1,000 | | |Common Stock: 1,000 | | | | | |Common Stock: 1,000 | |------------- Shares |--|--|------------- Shares | ...| | |--|------------- Shares | | Cost | | | Cost | | | | | Cost | | ---- | | | ---- | | | | | ---- | |NRS-100% $1,000 | | |NRS-100% $1,000 | | VSA-100% | | |Morley-100% $1,000 | ---------------------------- | -------------------------- -------------------------- | ----------------------- | | ---------------------------- | -------------------------- -------------------------- | ------------------------ | NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | MORLEY CAPITAL | | | CALIBER FUNDING | | SOLUTIONS, INC. OF | | | SOLUTIONS, INC. | | MANAGEMENT | | | CORPORATION | | ARKANSAS | | | OF WYOMING | | | | | | |Common Stock: 50,000 |-----|Common Stock: 500 Shares| |Common Stock: 500 Shares| | | | |------------- Shares | | |------------- | |------------- |--|--| | | Cost | | | Cost | | Cost | | | | | ---- | | | ---- | | ---- | | | | |NRS-100% $500 | | |NRS-100% $500 | |Morley-100% $5,000 | | |Morley-100% | ---------------------------- | -------------------------- -------------------------- | ------------------------ | | ---------------------------- | -------------------------- -------------------------- | ------------------------ | NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | UNION BOND | | | MORLEY RESEARCH | | SOLUTIONS, INS. | | | SOLUTIONS, INC. | | & TRUST COMPANY | | | ASSOCIATES, LTD. | | AGENCY, INC. | | | OF OHIO | | | | | | |Common Stock: 1,000 | | | | |Common Stock: 2,000 | | | Common Stock: 1,000 | |------------- Shares |--|==| | |------------- Shares |--|--| ------------- Shares | | | | | | | | | | | | Cost | | | | | Cost | | | Cost | | ---- | | | | | ---- | | | ---- | |NRS-100% $1,000 | | | | | Morley-100% $50,000 | | |Morley-100% $1,000 | ---------------------------- | -------------------------- -------------------------- | ------------------------ | | ---------------------------- | -------------------------- -------------------------- | | NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | PORTLAND INVESTMENT | | |SOLUTIONS, INC. OF MONTANA| | | SOLUTIONS, INC. OF | | SERVICES, INC. | | | | | | OKLAHOMA | | | | |Common Stock: 500 | | | | | Common Stock: 1,000 | | |------------- Shares |--|==| | | ------------- Shares |-- | Cost | | | | | Cost | | ---- | | | | | ---- | |NRS-100% $500 | | | | | Morley-100% $25,000 | ---------------------------- | -------------------------- -------------------------- | ---------------------------- | -------------------------- | NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT| | SOLUTIONS, INC. OF NEVADA| | | SOLUTIONS, INC. | | | | | OF TEXAS | |Common Stock: 1,000 |-- ==| | |------------- Shares | | | | Cost | | | | ---- | | | |NRS-100% $1,000 | | | ---------------------------- --------------------------
285
(Right) - ------------------------------------------------------------------------------------------------------------------------------------ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ------------------------------- | ---------------------------- ----------------------------- | GATES MCDONALD | | | NATIONWIDE | | NATIONWIDE GLOBAL | | & COMPANY (GATES) | | |HEALTH PLANS, INC. (NHP) | | HOLDINGS, INC. (NGH) | | | | | | | | - ------------------- --|Common Stock: 254 Shares | |--|Common Stock: 100 Shares | |Common Stock: 1 Share | | | | |------------ | || |------------ | --|------------ | | ---------------|-------------- | | Cost | || | Cost || | Cost | | | | | | ---- | || | ---- || | ---- | | | THE 401(k) COMPANIES, INC. | | |NW Corp.-100% $25,683,532 | || | || | | | | (401(k)) | | |------------------------------ || |NW Corp.-100% $14,603,732|| |NW Corp.-100% $257,000,000| | | | | || --------------------------- | ----------------------------- | |Common Stock: Control | | |------------------------------ || ----------------------------| ----------------------------- ||--|------------- ------- | | | MEDPROSOLUTIONS, INC. | || | NATIONWIDE MANAGEMENT || | NATIONWIDE GLOBAL | || |Class A Other-100% | --| | |--| SYSTEMS, INC. || | HOLDINGS, INC. - | || |Class B NFS-100% | | | Cost | || | || | LUXEMBOURG BRANCH | || | | | | ---- | || |Common Stock: 100 Shares || | (BRANCH) | || ------------------------------ | |Gates-100% $6,700,000 | || |------------- || | | || | | | || | Cost ||--| | || | | | || | ---- || |Endowment Capital - | || ------------------------------ | ------------------------------- || |NHP Inc.-100% $25,149 || | $1,000,000 | || | 401(k) INVESTMENT | | || ----------------------------| --------------|-------------- || | SERVICES, INC. | | |------------------------------ || ----------------------------| --------------|-------------- || | | | | GATES MCDONALD & | || | NATIONWIDE || | NGH LUXEMBOURG S.A. | || |Common Stock: 1,000,000 | | | COMPANY OF NEW YORK, INC. | || | AGENCY, INC. || | (LUX SA) | || |------------ Shares | --| | |--| || | | ||--| | | |Common Stock: 3 Shares | | |Common Stock: 100 Shares || |Common Stock: 5894 Shares | || | Cost | | |------------ | | |------------ || -|------------ | || | ---- | | | Cost | | | Cost || || Cost | || |401(k)-100% $7,800 | | | ---- | | | ---- || || ---- | || ------------------------------ | |Gates-100% $106,947 | | |NHP Inc.-99% $116,077 || ||BRANCH.-99.98% $115,470,723| || | ------------------------------- | ----------------------------| |----------------------------- || ------------------------------ | | | | || | 401(k) INVESTMENT | | ------------------------------- | ----------------------------| |----------------------------- || | ADVISORS, INC. | | | GATES MCDONALD & | | |NATIONWIDE GLOBAL HOLDINGS|| || PAN EURO LIFE | || | | | | COMPANY OF NEVADA | | | -HONG KONG, LIMITED || || | || |Common Stock: 1,000 Shares | --| | | | || ||Common Stock: 1,300,000 | ||--|------------ | | |Common Stock: 40 Shares | | |Common Stock: 2 Shares || ||------------ Shares | || | Cost | | |------------ | | |------------ Cost -- -- | || | ---- | | | Cost | | | ---- || || Cost | || |401(k)-100% $1,000 | | | ---- | | |NGH-50% || || ---- | || ------------------------------ | |Gates-100% $93,750 | | |Casualty--50% || ||LUX SA-90% 3,817,832,685| || | ------------------------------- | ----------------------------| || LUF | || ------------------------------ | | | |----------------------------- || | 401(k) COMPANY | | ------------------------------- | ----------------------------| |----------------------------- || | | | | GATES MCDONALD | | | NGH || ||NATIONWIDE GLOBAL HOLDINGS | || |Common Stock: 855,000 Shares| | | HEALTH PLUS, INC. | | | NETHERLANDS B.V. || ||- NGH BRASIL PARTICIPACOES,| || | | --| | | | || || LTDA (NGH BRASIL) | || | Cost | | |Common Stock: 200 Shares | | |Common Stock: 40 Shares || || | ||--| ---- | | |------------ | | |------------ -- -- Shares Cost | || |401(k)-100% $1,000 | | | Cost | | | Cost || | ------ ---- | || ------------------------------ | | ---- | | | ---- || |LUX SA 6,164,899 R6,164,899| || | |Gates-100% $2,000,000 | | |NGH-100% NLG 52,500 || |NGH 1 R1 | || ------------------------------ | ------------------------------- | ----------------------------| --------------|-------------- || | | | | | | |===| | | ------------------------------- | ----------------------------| --------------|-------------- | | RIVERVIEW AGENCY, INC. | | |NEVADA INDEPENDENT COMPANIES-| | | NATIONWIDE || | NATIONWIDE | | | | | |MANUFACTURING TRANSPORTATION | | | SERVICES SP. Z.O.O. || | SEGURADORA S.A. | | | | | | AND DISTRIBUTION | | | || | | | | | --| | | |Common Stock: 80 Shares || | Shares Cost | | | | | |Common Stock: 1,000 Shares | | |------------ Cost -- | ------ ---- | | ------------------------------ | |------------ | | | ---- || |NGH | | | |Gates-100% | | |NGH-100% 4,000 PLN || |BRASIL 9,999,999 R9,999,999| | ------------------------------ | ------------------------------- | --------------------------- | |LUX SA 1 R1 | | | | | | | ----------------------------- | | PENSION ASSOCIATES, INC. | | ------------------------------- | ----------------------------| ----------------------------- | | | | | NEVADA INDEPENDENT | | | MRM INVESTMENTS, INC. || | NATIONWIDE GLOBAL | - ----| Common Stock: 1,000 Shares | | | COMPANIES-HEALTH AND PROFIT | | | || | FINANCE, LLC | | | --| | ---|Common Stock: 1 Share || | Single Member Limited | | Cost | | |Common Stock: 1,000 Shares | |------------ || | Liability Company | | ---- | | |------------ | | Cost |...| | | NFS-100% $2,839,392 | | | | | ---- | | | ------------------------------ | |Gates-100% | |NW Corp.-100% $7,000,000 | |NGH-100% | | ------------------------------- ---------------------------- ----------------------------- | | ------------------------------- | | NEVADA INDEPENDENT | | | COMPANIES-CONSTRUCTION | --| | | |Common Stock: 1,000 Shares | | |------------ | | | | | |Gates-100% | | ------------------------------- | | ------------------------------- | | NEVADA INDEPENDENT | | | COMPANIES-HOSPITALITY AND | Subsidiary Companies - Solid Line --| ENTERTAINMENT | Contractual Association - Double Line | | Limited Liability Company - Dotted Line |Common Stock: 1,000 Shares | |Gates-100% | December 31, 1999 ------------------------------- Page 2
286 Item 27. NUMBER OF CONTRACT OWNERS The number of contract owners of Qualified and Non-Qualified Contracts as of February 1, 2000 was 43,646 and 42,408 respectively. Item 28. INDEMNIFICATION Provision is made in Nationwide's Amended and Restated Code of Regulations and expressly authorized by the General Corporation Law of the State of Ohio, for indemnification by Nationwide of any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such person is or was a director, officer or employee of Nationwide, against expenses, including attorneys fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, to the extent and under the circumstances permitted by the General Corporation Law of the State of Ohio. Insofar as indemnification for liabilities arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers or persons controlling Nationwide pursuant to the foregoing provisions, Nationwide has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 29. PRINCIPAL UNDERWRITER (a) Nationwide Investment Services Corporation ("NISC") acts as principal underwriter and general distributor for the Nationwide Multi-Flex Variable Account, Nationwide Variable Account, Nationwide Variable Account-II, Nationwide Variable Account-5, Nationwide Variable Account-6, Nationwide Variable Account-8, Nationwide Variable Account-9, Nationwide Variable Account-10, Nationwide Variable Account-11, Nationwide VA Separate Account-A, Nationwide VA Separate Account-B, Nationwide VA Separate Account-C, Nationwide VL Separate Account-A, Nationwide VL Separate Account-B, Nationwide VL Separate Account-C, Nationwide VL Separate Account-D, Nationwide VLI Separate Account-2, Nationwide VLI Separate Account-3, Nationwide VLI Separate Account-4, Nationwide VLI Separate Account-5, Nationwide DC Variable Account, Nationwide DCVA-II, and the NACo Variable Account, all of which are separate investment accounts of Nationwide or its affiliates. 287 (b) NATIONWIDE INVESTMENT SERVICES CORPORATION DIRECTORS AND OFFICERS
POSITIONS AND OFFICES NAME AND BUSINESS ADDRESS WITH UNDERWRITER ------------------------- ---------------- Joseph J. Gasper Chairman of the Board and One Nationwide Plaza Director Columbus, OH 43215 Dimon R. McFerson Chairman and Chief Executive One Nationwide Plaza Officer and Director Columbus, OH 43215 Richard A. Karas Vice Chairman and Director One Nationwide Plaza Columbus, OH 43215 Duane C. Meek President One Nationwide Plaza Columbus, OH 43215 Philip C. Gath Director One Nationwide Plaza Columbus, OH 43215 Susan A. Wolken Director One Nationwide Plaza Columbus, OH 43215 Robert A. Oakley Executive Vice President - One Nationwide Plaza Chief Financial Officer Columbus, OH 43215 Robert J. Woodward, Jr. Executive Vice President - One Nationwide Plaza Chief Investment Officer Columbus, OH 43215 Mark R. Thresher Senior Vice President and Treasurer One Nationwide Plaza Columbus, OH 43215 Barbara J. Shane Vice President - Compliance Officer Two Nationwide Plaza Columbus, OH 43215 Alan A. Todryk Vice President - Taxation One Nationwide Plaza Columbus, OH 43215 John F. Delaloye Assistant Secretary One Nationwide Plaza Columbus, OH 43215 Glenn W. Soden Assistant Secretary One Nationwide Plaza Columbus, OH 43215 E. Gary Berndt Assistant Treasurer One Nationwide Plaza Columbus, OH 43215
288 NATIONWIDE INVESTMENT SERVICES CORPORATION DIRECTORS AND OFFICERS
POSITIONS AND OFFICES NAME AND BUSINESS ADDRESS WITH UNDERWRITER ------------------------- ---------------- Duane M. Campbell Assistant Treasurer One Nationwide Plaza Columbus, OH 43215 Terry C. Smetzer Assistant Treasurer One Nationwide Plaza Columbus, OH 43215
(c)
NAME OF PRINCIPAL UNDERWRITER NET UNDERWRITING COMPENSATION ON BROKERAGE COMPENSATION DISCOUNTS AND REDEMPTION OR COMMISSIONS COMMISSIONS ANNUITIZATION - ----------------------------- ---------------- --------------- ----------- ------------ Nationwide Investment N/A N/A N/A N/A Services Corporation
Item 30. LOCATION OF ACCOUNTS AND RECORDS John Davis Nationwide Life Insurance Company One Nationwide Plaza Columbus, OH 43215 Item 31. MANAGEMENT SERVICES Not Applicable 289 Item 32. UNDERTAKINGS The Registrant hereby undertakes to: (a) file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted; (b) include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and (c) deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request. The Registrant represents that any of the contracts which are issued pursuant to Section 403(b) of the Internal Revenue Code, are issued by Nationwide through the Registrant in reliance upon, and in compliance with, a no-action letter issued by the Staff of the Securities and Exchange Commission to the American Council of Life Insurance (publicly available November 28, 1988) permitting withdrawal restrictions to the extent necessary to comply with Section 403(b)(11) of the Internal Revenue Code. Nationwide represents that the fees and charges deducted under the contract in the aggregate are reasonable in relation to the services rendered, the expenses expected to be incurred and risks assumed by Nationwide. 290 INDEPENDENT AUDITORS' CONSENT The Board of Directors of Nationwide Life Insurance Company and Contract Owners of Nationwide Variable Account-9: We consent to the use of our reports included herein and to the reference to our firm under the heading "Services" in the Statement of Additional Information. KPMG LLP Columbus, Ohio April 26, 2000 291 SIGNATURES As required by the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, NATIONWIDE VARIABLE ACCOUNT-9, certifies that it meets the requirements of the Securities Act Rule 485(b) for effectiveness of the Post-Effective Amendment and has caused this Post-Effective Amendment to the Registration Statement to be signed on its behalf in the City of Columbus, and State of Ohio, on this 26th day of April, 2000. NATIONWIDE VARIABLE ACCOUNT-9 ------------------------------------------ (Registrant) NATIONWIDE LIFE INSURANCE COMPANY ------------------------------------------ (Depositor) By/s/STEVEN SAVINI, ESQ. ------------------------------------------ Steven Savini, Esq. As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on the 26th day of April, 2000.
SIGNATURE TITLE --------- ----- LEWIS J. ALPHIN Director - ---------------------------------------- Lewis J. Alphin A. I. BELL Director - ---------------------------------------- A. I. Bell KENNETH D. DAVIS Director - ---------------------------------------- Kenneth D. Davis KEITH W. ECKEL Director - ---------------------------------------- Keith W. Eckel WILLARD J. ENGEL Director - ---------------------------------------- Willard J. Engel FRED C. FINNEY Director - ---------------------------------------- Fred C. Finney JOSEPH J. GASPER President and Chief Operating - ---------------------------------------- Joseph J. Gasper Officer and Director DIMON R. MCFERSON Chairman and Chief Executive - ---------------------------------------- Dimon R. McFerson Officer and Director DAVID O. MILLER Chairman of the Board and - ---------------------------------------- David O. Miller Director YVONNE L. MONTGOMERY Director - ---------------------------------------- Yvonne L. Montgomery ROBERT A. OAKLEY Executive Vice President and Chief - ---------------------------------------- Robert A. Oakley Financial Officer RALPH M. PAIGE Director - ---------------------------------------- Ralph M. Paige JAMES F. PATTERSON Director - ---------------------------------------- James F. Patterson ARDEN L. SHISLER Director By /s/ STEVEN SAVINI, ESQ. - ---------------------------------------- -------------------------------------- Arden L. Shisler Steven Savini, Esq. ROBERT L. STEWART Director Attorney-in-Fact - ---------------------------------------- Robert L. Stewart NANCY C. THOMAS Director - ---------------------------------------- Nancy C. Thomas
EX-3 2 EXHIBIT 3 1 MARKETING COORDINATION AND ADMINISTRATIVE SERVICES AGREEMENT This Agreement entered into this 1st day of May, 2000, between Nationwide Life Insurance Company ("Nationwide"), and Nationwide Investment Services Corporation ("NISC"). Nationwide proposes to develop, issue and administer, and NISC proposes to provide the exclusive national distribution services for certain annuity and life products (the "Products"). The parties hereby agree as follows: A. ADMINISTRATION OF PRODUCTS 1. Appointment of Product Administration Nationwide is hereby appointed Product Administrator for the Products. 2. Duties of Nationwide Nationwide will perform in a proper and timely manner, those functions enumerated in the column marked "Nationwide" in the "Analysis of Administrative Functions," attached hereto as EXHIBIT A, and incorporated herein by reference. 3. Duties of NISC NISC will perform in a proper and timely manner, those functions enumerated in the column marked "NISC" in the "Analysis of Administrative Functions," attached hereto as EXHIBIT A, and incorporated herein by reference. B. MARKETING COORDINATION AND SALES ADMINISTRATION 1. Distribution of Products The Products will be distributed through registered representatives of NASD broker-dealer firms, appointed by Nationwide, who shall be duly qualified and licensed as agents (the "Agents"), in accordance with applicable state insurance authority. 2. NISC shall be the exclusive National Distributor of the Products. 2 3. Appointment and Termination of Agents Appointment and termination of Agents shall be processed and executed by Nationwide. NISC reserves the right to require Nationwide to consult with it regarding licensing decisions. 4. Advertising NISC shall not print, publish or distribute any advertisement, circular or document relating to the Products or relating to Nationwide unless such advertisement, circular or document has been approved in writing by Nationwide. Such approval shall not be unreasonably withheld, and shall be given promptly, normally within five (5) business days. Neither Nationwide nor any of its affiliates shall print, publish or distribute any advertisement, circular or document relating to the Products or relating to NISC unless such advertisement, circular or document has been approved in writing by NISC. Such approval shall not be unreasonably withheld, and shall be given promptly, normally within five (5) business days. However, nothing herein shall prohibit any person from advertising the Products on a generic basis. 5. Marketing Conduct The parties will jointly develop standards, practices and procedures respecting the marketing of the Products. Such standards, practices and procedures are intended to help Nationwide meet its obligations as an issuer under the securities laws, to assure compliance with state insurance laws, and to help NISC meet its obligations under the securities laws as National Distributor. These standards, practices and procedures are subject to continuing review and neither Nationwide nor NISC will object unreasonably to changes to such standards, practices and procedures recommended by the other to comply with the intent of this provision. 6. Sales Material and Other Documents a. Sales Material 1) Nationwide shall develop and prepare all promotional material to be used in the distribution of the Products, in consultation with NISC. 2) Nationwide is responsible for the printing and the expense of providing such promotional material. 3) Nationwide is responsible for approval of such promotional material by state insurance regulators, where required. 3 4) NISC and Nationwide agree to abide by the Advertising and Sales Promotion Material Guidelines, attached hereto as EXHIBIT B, and incorporated herein by reference. b. Prospectuses 1) Nationwide is responsible for the preparation and regulatory clearance of any required registration statements and prospectuses for the Products. 2) Nationwide is responsible for the printing of Product prospectuses in such quantities as the parties agree are necessary to assure sufficient supplies. 3) Nationwide is responsible for supplying Agents with sufficient quantities of Product prospectuses. c. Contracts, Applications and Related Forms 1) Nationwide, in consultation with NISC, is responsible for the design and printing of adequate supplies of Product applications, contracts, related forms, and such service forms as the parties agree are necessary. 2) Nationwide is responsible for supplying adequate quantities of all such forms to the Agents. 7. Appointment of Agents a. NISC will assist Nationwide in facilitating the appointment of Agents by Nationwide. b. Nationwide will forward all appointment forms and applications to the appropriate states and maintain all contacts with the states. c. Nationwide will maintain appointment files on Agents, and NISC will have access to such files as needed. 8. Licensing and Appointment Guide Nationwide shall provide to NISC a Licensing and Appointment Guide (as well periodic updates thereto), setting forth the requirements for licensing and appointment, in such quantities as NISC may reasonably require. 4 9. Other a. Product Training Nationwide is responsible for any Product training for the Agents. b. Field Sales Material 1) Nationwide, in consultation with NISC, is responsible for the development, printing and distribution of non-public field sales material to be used by Agents. 2) NISC shall have the right to review all field sales materials and to require any modification mandated by regulatory requirements. c. Production Reports Nationwide will deliver to NISC the items listed in Production Reports to be Provided, attached hereto as EXHIBIT C, and incorporated herein by reference. d. Customer Service Each party will notify the other of all material pertinent inquiries and complaints it receives, from whatever source and to whomever directed, and will consult with the other in responding to such inquiries and complaints. e. Records and Books All books and records maintained by Nationwide in connection with the offer and sale of variable annuity interests funded by a Separate Account are maintained and preserved in conformity with the requirements of Rule 17a-3 and 17a-4 under the 1934 Exchange Act, to the extent such requirements are applicable to the variable annuity operations. All such books and records are maintained and held by Nationwide on behalf of and as agent for NISC, whose property they are and shall remain. Such books and records are at all times subject to inspection by the Securities and Exchange Commission and the National Association of Securities Dealers, Inc. 5 C. GENERAL PROVISIONS 1. Waiver The forbearance or neglect of either party to insist upon strict compliance by the other with any of the provisions of this Agreement, whether continuing or not, or to declare a forfeiture of termination against the other, shall not be construed as a waiver of any rights or privileges of the forbearing party in the event of a further default or failure of performance. 2. Limitations Neither party shall have authority on behalf of the other to: make, alter or discharge any contractual terms of the Products; waive any forfeiture; extend the time of making any contributions to the products; guarantee dividends; alter the forms which either may prescribe; nor substitute other forms in place of those prescribed by the other. 3. Binding Effect This Agreement shall be binding on and shall inure to the benefit of the parties to it and their respective successors and assigns, provided that neither party shall assign or sub-contract this Agreement or any rights or obligations hereunder without prior written consent of the other. 4. Indemnification Each party ("Indemnifying Party") hereby agrees to release, indemnify and hold harmless the other party, its officers, directors, employers, agents, servants, predecessors or successors from any claims or liability arising out of the acts or omissions of the Indemnifying Party not authorized by this Agreement, including the violation of any federal or state law or regulation. 5. Notices All notices, requests, demands and other communication under this Agreement shall be in writing and shall be deemed to have been given on the date of service if served personally on the party to whom notice is to be given, or on the date of mailing if sent postage prepaid by First Class Mail, Registered or Certified mail, by overnight mail, properly addressed as follows: TO NATIONWIDE: Nationwide Life Insurance Company Michael C. Butler, Vice President-Sales Three Nationwide Plaza Columbus, Ohio 43215 6 TO NISC: Nationwide Investment Services Corporation. Barbara Shane, Vice President-Compliance Officer Two Nationwide Plaza Columbus, Ohio 43215 6. Governing Law This Agreement shall be construed in accordance with and governed by the laws of the State of Ohio. 7. Arbitration The parties agree that misunderstandings or disputes arising from this Agreement shall be decided by arbitration, conducted upon request of either party before three arbitrators (unless the parties agree on a single arbitrator) designated by the American Arbitration Association, and in accordance with the rules of such Association. The expenses of the arbitration proceedings conducted hereunder shall be borne equally by both parties. 8. Confidentiality Any information, documents and materials, whether printed or oral, furnished by either party or its agents or employees to the other shall be held in confidence. No such information shall be given to any third party, other than to such sub-contractors of NISC as may be permitted herein, or under requirements of a lawful authority, without the express written consent of the other party. D. TERM OF AGREEMENT This Agreement, including the Exhibits attached hereto, shall remain in full force and effect until terminated, and may be amended only by mutual agreement of the parties in writing. Any decision by either party to cease issuance or distribution of any specific Product shall not effect a termination of the Agreement unless such termination is mutually agreed upon, or unless notice is given pursuant to Section E.2. hereof. E. TERMINATION 1. Either party may terminate this Agreement for cause at any time, upon written notice to the other, if the other knowingly and willfully: (a) fails to comply with the laws or regulations of any state or governmental agency or body having jurisdiction over the sale of insurance or securities; (b) misappropriates any money or property belonging to the other; (c) subjects the other to any actual or potential liability due to misfeasance, malfeasance, or nonfeasance; (d) commits any fraud upon the other; (e) has an assignment for the benefit of creditors; (f) incurs bankruptcy; or (g) commits a material breach of this Agreement. 7 2. Either party may terminate this Agreement, without regard to cause, upon six months prior written notice to the other. 3. In the event of termination of this Agreement, the following conditions shall apply: a) The parties irrevocably acknowledge the continuing right to use any Product trademark that might then be associated with any Products, but only with respect to all business in force at the time of termination. b) In the event this Agreement is terminated the parties will use their best efforts to preserve in force the business issued pursuant to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first above written. NATIONWIDE LIFE INSURANCE COMPANY By: __________________________ Michael C. Butler Title: Vice President - Sales NATIONWIDE INVESTMENT SERVICES CORPORATION By: ________________________ Barbara Shane Title: Vice President - Compliance Officer 8 EXHIBIT A ANALYSIS OF ADMINISTRATIVE FUNCTIONS A. PRODUCT UNDERWRITING/ISSUE NATIONWIDE NISC - - Establishes underwriting criteria for - Consults with regard to new business application processing and rejections. procedures and processing. - - Reviews the completed application. Applies underwriting/issue criteria to application. - - Notifies Agent and/or customer of any error or missing data necessary to underwrite application and establish records for owner of Product ("Contract Owner"). - - Prepares policy data page for approved business and mails with policy to Contract Owner. - - Establishes and maintains all records required for each Contract Owner, as applicable. - - Prepares and mails confirmation and other statements to Contract Owners and Agents, as required. - - Prints, provides all forms ancillary to issue of contract/policy forms for Products. - - Maintains supply of approved specimen policy forms and all ancillary forms, distributes same to Agents. 9 B. BILLING AND COLLECTION NATIONWIDE - - Receives premium/purchase payments and reconciles amount received with remittance media. - - Updates Contract Owner records to reflect receipt of premium/purchase payment and performs accounting/ investment allocation of each payment received. - - Deposits all cash received under the Products in accordance with the terms of the Products. C. BANKING NATIONWIDE - - Balances, edits, endorses and prepares daily deposit. - - Places deposits in depository account. - - Prepares daily cash journal summary reports and maintains same for review by NISC. 10 D. PRICING/VALUATION/ACCOUNTING/TRADING NATIONWIDE NISC - - Maintains and makes available, as - Cooperates in annual audit of separate reasonably requested, records used in account financials conducted for purposes determining "Net Amount Available for of financial statement certification and Investment." publication. - - Collects information needed in - Will clear and settle Mutual Fund determining Variable Account unit trades on behalf of the separate accounts values from the Funds including using the National Securities Clearing daily net asset value, capital Corporation FUND/Serv System. gains or dividend distributions, and the number of Fund Shares acquired or sold during the immediately preceding valuation period. - - Performs daily unit valuation calculation. 11 E. CONTRACT OWNER SERVICE/ RECORD MAINTENANCE NATIONWIDE NISC - - Receives and processes all - Accommodates customer service function Contract Owner service requests, by providing any supporting information including but not limited to or documentation which may be in the informational requests, beneficiary control of NISC. changes, and transfers of Contract Value among eligible investment options. - - Maintains daily records of all changes made to Contract Owner accounts. - - Researches and responds to all Contract Owner/Agent inquiries. - - Keeps all required Contract Owner records. - - Maintains adequate number of toll free lines to service Contract Owner/ Agent inquiries. F. DISBURSEMENTS (SURRENDERS, DEATH CLAIMS, LOANS) NATIONWIDE NISC - - Receives and processes surrenders, loans, and death claims in accordance with established guidelines. - - Prepares checks for surrenders, loans, and death claims, and forwards to Contract Owner or Beneficiary. Prepares and mails confirmation statement of disbursement to Contract Owner/Beneficiary with copy to Agent. 12 G. COMMISSIONS NATIONWIDE NISC - - Ascertains, on receipt of - Receives and performs record keeping applications, whether writing Agent for investment company payments made is appropriately licensed. under a 12b-1 Plan. - - Pays commissions and other fees in accordance with agreements relating to same. H. PROXY PROCESSING NATIONWIDE NISC - - Receives record date information from Funds Receives proxy solicitation materials from Funds. - - Prepares Voting Instruction cards and mails solicitation, if necessary. - - Tabulates and votes all Fund Shares in accordance with SEC requirements. I. PERIODIC REPORTS TO CONTRACT OWNERS NATIONWIDE NISC - - Prepares and mails quarterly and annual Statements of Account to Contract Owners. - - Prepares and mails all semi-annual and annual reports of Variable Account(s) to Contract Owners. 13 J. REGULATORY/STATEMENT REPORTS NATIONWIDE NISC - - Prepares and files Separate Account - Prepares and files periodic FOCUS Annual Statements. Reports with the NASDR and SEC, as applicable. - - Prepares and mails the appropriate, - Prepares and files annual audited required IRS reports at the Contract financial statements with required Owner level. Files same with required regulatory agencies. regulatory agencies. - - Prepares and files form N-SAR for the Separate Account. K. PREMIUM TAXES NATIONWIDE NISC - - Collects, pays and accounts for premium taxes as appropriate. - - Prepares and maintains all premium tax records by state. - - Maintains liabilities in General Account ledger for accrual of premium tax collected. - - Integrates all company premium taxes due and performs related accounting. L. FINANCIAL AND MANAGEMENT REPORTS NATIONWIDE NISC - - Provides periodic reports in - Provides periodic reports in accordance accordance with the Schedule of with the Schedule of Reports to be Reports to be prepared jointly by prepared jointly by Nationwide and NISC. Nationwide and NISC. (See EXHIBIT C) (See EXHIBIT C) 14 M. AGENT LICENSE RECORDKEEPING NATIONWIDE NISC - - Receives, establishes, processes, - Maintains securities registrations and and maintains Agent appointment assumes supervisory responsibility for records. representatives of affiliated sales and marketing companies involved in the wholesale distribution of Nationwide variable contract products. - Maintains training, supervisory, and other required records for and on behalf of registered representatives of NISC. 15 EXHIBIT B ADVERTISING AND SALES PROMOTION MATERIAL GUIDELINES FOR APPROVAL BY NATIONWIDE AND NISC In order to assure compliance with state and federal regulatory requirements and to maintain control over the distribution of promotional materials dealing with the Products, Nationwide and NISC require that all variable contract promotional materials be reviewed and approved by both Nationwide and NISC prior to their use. These guidelines are intended to provide appropriate regulatory and distribution controls. 1. Sufficient lead time must be allowed in the submission of all promotional material. Nationwide and NISC shall approve in writing all promotional material. Such approval shall not be unreasonably withheld, and shall be given promptly, normally within five (5) days. 2. All promotional material will be submitted in "draft" form to permit any changes or corrections to be made prior to the printing. 3. Nationwide and NISC will provide each other with details as to each and every use of all promotional material submitted. Approval for one use will not constitute approval for any other use. Different standards of review may apply when the same advertising material is intended for different uses. The following information will be provided for each item of promotional material: a. In what jurisdiction(s) the material will be used. b. Whether distribution will be to broker/dealer, entity, participant, etc. c. How the material will be used (e.g., brochure, mailing, web site, etc.) d. The projected date of initial use. 4. Each party will advise the other of the date it discontinues the use of any material. 5. Any changes to previously approved promotional material must be resubmitted, following these procedures. When approved material is to be put to a different use, request for approval of the material for the new use must be submitted. 6. Nationwide will assign a form number to each item of advertising and sales promotional material. This number will appear on each piece of advertising and sales promotional material. It will be used to aid in necessary filings, and to maintain appropriate controls. 7. Nationwide and NISC will provide written approval for all material to be used. 8. Nationwide will be responsible to effect necessary state filings. 9 NISC will coordinate SEC/NASD filings of sales and promotional material. 10. All telephone communication and written correspondence regarding promotional materials should be directed to Office of Product and Market Compliance, Nationwide Life Insurance Company, One Nationwide Plaza, Columbus, Ohio 43215 -----END PRIVACY-ENHANCED MESSAGE-----