0001193125-17-122242.txt : 20170413 0001193125-17-122242.hdr.sgml : 20170413 20170413083724 ACCESSION NUMBER: 0001193125-17-122242 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 6 FILED AS OF DATE: 20170413 DATE AS OF CHANGE: 20170413 EFFECTIVENESS DATE: 20170501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE VLI SEPARATE ACCOUNT 4 CENTRAL INDEX KEY: 0001041357 IRS NUMBER: 314156830 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-169879 FILM NUMBER: 17759441 BUSINESS ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 614-249-7111 MAIL ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE VLI SEPARATE ACCOUNT 4 CENTRAL INDEX KEY: 0001041357 IRS NUMBER: 314156830 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08301 FILM NUMBER: 17759442 BUSINESS ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 614-249-7111 MAIL ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 0001041357 S000009474 NATIONWIDE VLI SEPARATE ACCOUNT 4 C000095343 Future Executive VUL 485BPOS 1 d499031d485bpos.htm FUTURE EXECUTIVE VUL (333-169879) Future Executive VUL (333-169879)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-6
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 File No. 333-169879
Pre-Effective Amendment No. □
Post-Effective Amendment No. 16 ☑
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 File No. 811-08301
Amendment No. 227 ☑
(Check appropriate box or boxes.)
Nationwide VLI Separate Account-4
(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)
(614) 249-7111
Depositor's Telephone Number, including Area Code
Robert W. Horner, III, Vice President and Secretary
One Nationwide Plaza, Columbus, Ohio 43215
(Name and Address of Agent for Service)
May 1, 2017
Approximate Date of Proposed Public Offering
It is proposed that this filing will become effective (check appropriate box)
□ immediately upon filing pursuant to paragraph (b)
☑ on May 1, 2017 pursuant to paragraph (b)
□ 60 days after filing pursuant to paragraph (a)(1)
□ on (date) pursuant to paragraph (a)(1)
If appropriate, check the following box:
□ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

 

Nationwide Future Executive VUL
Individual Flexible Premium Adjustable Variable Universal Life Insurance Policies
Issued by
Nationwide Life Insurance Company
through its
Nationwide VLI Separate Account-4
The date of this prospectus is May 1, 2017.
Variable life insurance is complex. This prospectus is designed to provide prospective policy owners with information about the policy that will assist them when making a decision whether or not to purchase the policy. Nationwide encourages prospective policy owners to take time to understand the policy and its potential benefits and risks. In consultation with their financial advisor, prospective policy owners should use this prospectus in conjunction with the policy and composite illustration to compare the benefits and risks of this policy against those of other life insurance policies.
The policy owner should read this entire prospectus, and the policy, and consult with a trusted financial advisor. To obtain additional information, including free copies of prospectuses for the mutual funds or a copy of the Statement of Additional Information, or to make service transaction requests, please contact Nationwide using any of the methods described in the "Contacting the Service Center" section of this prospectus.
Telephone: 1-877-351-8808 (TDD: 1-800-238-3035)
Facsimile: 1-855-677-2357
Internet: www.nationwide.com
U.S. Mail: Nationwide Life Insurance Company
Nationwide Business Solutions Group
One Nationwide Plaza, 1-11-401
Columbus, OH 43215-2220
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.
This prospectus is not an offering in any jurisdiction where such offering may not lawfully be made. Not all Riders, terms, conditions, benefits, programs, features and investment options are available or approved for use in every state. Please contact the Service Center to review a copy of the policy and any Riders or endorsements. This prospectus contains all material rights and features of the policy.
The policy is NOT: insured by the Federal Deposit Insurance Corporation; a bank deposit; available in every state; or insured or endorsed by a bank or any federal government agency.
The policy may decrease in value to the point of being valueless because of poor Investment Experience.
The purpose of this policy is to provide life insurance protection for the beneficiary named by the policy owner. If the purchaser’s primary need is not life insurance protection, then purchasing this policy may not be in the best interest of the purchaser. Nationwide makes no claim that the policy is in any way similar or comparable to a systematic investment plan of a mutual fund.
If this policy is being purchased to replace existing life insurance, the purchaser should carefully consider the benefits, features, and costs of this policy versus those of the policy being replaced.
The policy includes an Enhancement Benefit which is a partial return of charges upon certain surrenders. Policies without such a benefit may have lower overall charges when compared to the policies described in this prospectus. The value of this benefit may be more than off-set by the higher overall charges associated with having such a benefit.
Nationwide offers a variety of variable universal life policies. Despite offering substantially similar features and investment options, certain policies may have lower overall charges than others including the policy described herein. These differences in charges may be attributable to differences in sales and related expenses incurred in one distribution channel versus another.
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The policy is intended to be sold through corporate sponsored benefit programs. When purchased in connection with such benefit programs, the policy may qualify for simplified underwriting. Simplified underwriting means that a physical examination to obtain medical information on the Insured is generally not required to issue the policy.
The following underlying mutual funds are available under the policy.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Growth and Income Portfolio: Class A
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Small/Mid Cap Value Portfolio: Class A
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class I
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class I
American Funds Insurance Series® - Asset Allocation Fund: Class 2
American Funds Insurance Series® - Global Small Capitalization Fund: Class 2
American Funds Insurance Series® - Growth Fund: Class 2
American Funds Insurance Series® - International Fund: Class 2
American Funds Insurance Series® - New World Fund: Class 2
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class II
BlackRock Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund: Class I
Davis Variable Account Fund, Inc. - Davis Value Portfolio
Delaware VIP Trust - Delaware VIP Small Cap Value Series: Service Class
Dreyfus Investment Portfolios - MidCap Stock Portfolio: Initial Shares
Dreyfus Investment Portfolios - Small Cap Stock Index Portfolio: Service Shares
Dreyfus Stock Index Fund, Inc.: Initial Shares
Dreyfus Variable Investment Fund - Appreciation Portfolio: Initial Shares
Eaton Vance Variable Trust - Eaton Vance VT Floating-Rate Income Fund: Initial Class
Federated Insurance Series - Federated Quality Bond Fund II: Primary Shares
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2015 Portfolio: Service Class
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2020 Portfolio: Service Class
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2025 Portfolio: Service Class
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2030 Portfolio: Service Class
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2040 Portfolio: Service Class
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2050 Portfolio: Service Class
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class
Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class
Franklin Templeton Variable Insurance Products Trust - Franklin Mutual Global Discovery VIP Fund: Class 2
Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value VIP Fund: Class 2
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 2
Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond VIP Fund: Class 1
Goldman Sachs Variable Insurance Trust - Goldman Sachs Small Cap Equity Insights Fund: Institutional Shares
Invesco - Invesco V.I. Growth and Income Fund: Series I Shares
Invesco - Invesco V.I. High Yield Fund: Series I Shares
Invesco - Invesco V.I. International Growth Fund: Series I Shares
Invesco - Invesco V.I. Small Cap Equity Fund: Series I Shares
Ivy Variable Insurance Portfolios - Asset Strategy
Ivy Variable Insurance Portfolios - Growth
Ivy Variable Insurance Portfolios - High Income
Ivy Variable Insurance Portfolios - Mid Cap Growth
Ivy Variable Insurance Portfolios - Real Estate Securities
Ivy Variable Insurance Portfolios - Science and Technology
Janus Aspen Series - Balanced Portfolio: Service Shares
Janus Aspen Series - Enterprise Portfolio: Service Shares
Janus Aspen Series - Flexible Bond Portfolio: Service Shares
Janus Aspen Series - Global Technology Portfolio: Service Shares
JPMorgan Insurance Trust - JPMorgan Insurance Trust Mid Cap Value Portfolio: Class 1
JPMorgan Insurance Trust - JPMorgan Insurance Trust Small Cap Core Portfolio: Class 1
Lazard Retirement Series, Inc. - Lazard Retirement Emerging Markets Equity Portfolio: Service Shares
Legg Mason Partners Variable Equity Trust - ClearBridge Variable Small Cap Growth Portfolio: Class I
Lord Abbett Series Fund, Inc. - Bond Debenture Portfolio: Class VC
Lord Abbett Series Fund, Inc. - Short Duration Income Portfolio: Class VC
Lord Abbett Series Fund, Inc. - Total Return Portfolio: Class VC
MFS® Variable Insurance Trust - MFS New Discovery Series: Service Class
MFS® Variable Insurance Trust - MFS Total Return Bond Series: Service Class
MFS® Variable Insurance Trust - MFS Value Series: Service Class
MFS® Variable Insurance Trust II - MFS Blended Research® Core Equity Portfolio: Service Class
MFS® Variable Insurance Trust II - MFS International Value Portfolio: Service Class
MFS® Variable Insurance Trust II - MFS Research International Portfolio: Service Class
Morgan Stanley Variable Insurance Fund, Inc. - Emerging Markets Debt Portfolio: Class I
Morgan Stanley Variable Insurance Fund, Inc. - Global Real Estate Portfolio: Class II
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Morgan Stanley Variable Insurance Fund, Inc. - Growth Portfolio: Class I
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class I
Nationwide Variable Insurance Trust - NVIT Bond Index Fund: Class I
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class I
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class I
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class I
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class I
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class I
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class I
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class I
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I
Nationwide Variable Insurance Trust - NVIT Government Money Market Fund: Class V
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class I
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class I
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II
Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class I
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class I
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class I
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class I
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class I
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class I
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class I
Nationwide Variable Insurance Trust - NVIT Real Estate Fund: Class I
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class I
Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Non-Service Shares
Oppenheimer Variable Account Funds - Oppenheimer International Growth Fund/VA: Non-Service Shares
Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap Fund®/VA: Non-Service Shares
PIMCO Variable Insurance Trust - All Asset Portfolio: Administrative Class
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (U.S. Dollar-Hedged): Administrative Class
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Administrative Class
PIMCO Variable Insurance Trust - Global Bond Portfolio (Unhedged): Administrative Class
PIMCO Variable Insurance Trust - Long-Term U.S. Government Portfolio: Administrative Class
PIMCO Variable Insurance Trust - Low Duration Portfolio: Administrative Class
PIMCO Variable Insurance Trust - Real Return Portfolio: Administrative Class
PIMCO Variable Insurance Trust - Total Return Portfolio: Administrative Class
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class I
Putnam Variable Trust - Putnam VT Small Cap Value Fund: Class IB
T. Rowe Price Equity Series, Inc. - T. Rowe Price Blue Chip Growth Portfolio
T. Rowe Price Equity Series, Inc. - T. Rowe Price Equity Income Portfolio: II
T. Rowe Price Equity Series, Inc. - T. Rowe Price New America Growth Portfolio
T. Rowe Price Equity Series, Inc. - T. Rowe Price Personal Strategy Balanced Portfolio
T. Rowe Price Fixed Income Series, Inc. - T. Rowe Price Limited-Term Bond Portfolio
VanEck VIP Trust - VanEck VIP Global Hard Assets Fund: Initial Class
Wells Fargo Variable Trust - VT Discovery Fund: Class 2
Wells Fargo Variable Trust - VT Small Cap Growth Fund: Class 2
For a complete list of funds, including funds available prior to the date of this prospectus, refer to Appendix A: Sub-Account Information. For more information on the underlying mutual funds, refer to the prospectus for the mutual fund.
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Table of Contents
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Table of Contents (continued)
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For convenience, definitions of certain words and phrases used in the prospectus are provided in Appendix B: Definitions.
In Summary: Policy Benefits
Death Benefit
The primary benefit of this policy is life insurance coverage. Nationwide will pay the Death Benefit Proceeds upon the Insured's death if the Insured dies while the policy is In Force. The policy is In Force when: the policy has been issued; the initial Premium has been paid; the Insured is living; the policy has not been surrendered for its Cash Surrender Value; and the policy has not Lapsed.
Death Benefit Options
Note: The Death Benefit will be the greater of the amount produced by the death benefit option in effect on the date of the Insured's death or the Minimum Required Death Benefit, see The Minimum Required Death Benefit.
Death Benefit Option 1: The Death Benefit will be the Total Specified Amount as of the Insured's date of death.
Death Benefit Option 2: The Death Benefit will be the Total Specified Amount plus the Enhanced Cash Value as of the Insured's date of death.
Death Benefit Option 3: The Death Benefit will be the Total Specified Amount plus the accumulated premium account (which consists of all Premium payments, up to the maximum stated in the Policy Data Pages, plus interest), less any partial surrenders, as of the Insured's date of death.
Choice of Policy Proceeds
The Policy Proceeds may be paid in a lump sum, or a variety of options that will pay out over time.
Coverage Flexibility
Subject to conditions, the policy owner may choose to:
• change the death benefit option;
• increase or decrease the Base Policy Specified Amount and/or the specified amount associated with elected Riders, if applicable;
• change beneficiaries; and
• change ownership of the policy.
Access to Cash Value
Subject to conditions, the policy owner may:
• take a policy loan, see Policy Loans.
• take a partial surrender, see Partial Surrender.
• surrender the policy for its Cash Surrender Value at any time while the policy is In Force, see Full Surrender.
Premium Flexibility
The policy owner will select a Premium payment plan for the policy at the time of application. Within limits, the policy owner may vary the frequency and amount of Premium payments, see Premium Payments and Unfavorable Investment Experience.
Investment Options
Net Premium, loan repayments, and Cash Value may be allocated among fixed and/or variable investment options available in the policy.
The policy currently offers a fixed investment option which will earn interest daily, see Fixed Account.
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The variable investment options offered under the policy correspond to mutual funds designed to be the underlying investment options of variable insurance products. Nationwide VLI Separate Account-4 contains one Sub-Account for each of the underlying mutual funds offered in the policy.
Transfer Requests
Policy owners may request to transfer allocations between available investment options of the policy (i.e., the Fixed Account and Sub-Accounts). Requests to transfer allocations between policy investment options will be processed in the Valuation Period they are received at the Service Center as long as the request is in good order. Requests that are not in good order may be delayed or returned, see Contacting the Service Center. Transfer requests may be subject to policies and procedures intended to reduce the potentially detrimental impact that disruptive trading has on Sub-Account Investment Experience, see Transfers Among and Between Policy Investment Options.
Taxes
Earnings on the policy are generally not taxable to the policy owner, unless withdrawn from the policy. This is known as tax deferral. In addition, beneficiaries generally will not have to include Death Benefit Proceeds as taxable income, see Taxes.
Assignment
Policy owners may assign the policy as collateral for a loan or another obligation while the policy is In Force, see Assigning the Policy.
Examination Right
For a limited time, the policy owner may cancel the policy and receive a refund, see Right to Cancel (Examination Right).
Riders
The policy owner may purchase one or more of the Riders listed below, subject to availability in the state where the policy is issued. There may be additional charges assessed for elected Riders and Rider charges may vary based upon the individual characteristics of the Insured. Operation and benefits of the Riders described in this prospectus may vary by the state where the policy is issued.
• Overloan Lapse Protection Rider
• Change of Insured Rider (no charge)
• Supplemental Insurance Rider
• Long-Term Care Rider
In Summary: Policy Risks
State Variations
Due to variations in state law, many features of the policy described in this prospectus may be different or may not be available at all depending on the state in which the policy is issued.
Possible variations include, but are not limited to, Rider terms and availability, availability of certain investment options, free look rights, policy exchange rights, policy Lapse and/or reinstatement requirements, and the duration of suicide and incontestability periods. Variations due to state law are subject to change without notice at any time. To review a copy of the policy and any Riders or endorsements for the state in which the policy will be issued, the policy owner can contact the Service Center, see Contacting the Service Center.
Risk of Increase in Current Fees and Charges
Nationwide may change policy and/or Rider charges and rates under the policy at any time. Changes in policy and/or Rider charges and rates will vary based upon changes in Nationwide's future expectations related to items such as company investment earnings, mortality experience, persistency experience, expenses, including reinsurance expenses, and taxes. Nationwide will provide advance notice of any increase in policy and/or Rider charges.
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If a change in the charges or rates causes an increase to the policy and/or Rider charges, the policy's Cash Value could decrease. If a change in the charges or rates causes a decrease to the policy and/or Rider charges, the policy's Cash Value could increase. Policy and Rider charges will not exceed the maximum charges shown in the fee tables, see In Summary: Fee Tables and Standard Policy Charges.
Improper Use
Variable universal life insurance is not suitable as an investment vehicle for short-term savings. It is designed for long-term financial planning. The policy owner will incur fees at the time of purchase that may more than offset any favorable Investment Experience. If it is expected that access to the policy's Cash Value will be needed in the near future, the policy should not be purchased.
Unfavorable Investment Experience
The Sub-Accounts may generate unfavorable Investment Experience. Poor Investment Experience and the deduction of policy and Sub-Account charges may lower the policy’s Cash Value potentially resulting in a Lapse of insurance coverage.
Note: The policy owner selects the Premium amount and frequency shown in the policy illustration to show Nationwide how much Premium the policy owner intends to pay and when. Illustrated Premium and hypothetical rates of return are not guaranteed. Investment Experience varies over time, is rarely the same year-over-year, and may be negative. Because the policy is a variable universal life insurance policy with the potential for unfavorable Investment Experience, including extended periods of significant stock market decline, additional Premium may be required to meet a policy owner's goals and/or to prevent the policy from Lapsing. Generally, variable universal life insurance is considered a long-term investment. Policy owners should weigh the investment risk and costs associated with the policy against their objectives, time horizon, risk tolerance, and ability to pay additional Premium if necessary.
Adverse Tax Consequences
Existing federal tax laws that benefit this policy may change at any time. These changes could alter the favorable federal income tax treatment the policy enjoys, such as the deferral of taxation on the gains in the policy's Cash Value and the exclusion of the Death Benefit Proceeds from the taxable income of the policy's beneficiary. Partial and full surrenders from the policy may be subject to taxes. The income tax treatment of the surrender of Cash Value is different in the event the policy is treated as a modified endowment contract under the Code. Generally, tax treatment of modified endowment contracts is less favorable when compared to a life insurance policy that is not a modified endowment contract. For example, distributions and loans from modified endowment contracts may currently be taxed as ordinary income and not a return of investment, see Taxes.
The proceeds of a life insurance policy are includible in the gross estate of the Insured for federal income tax purposes if either (a) the proceeds are payable to the executor of the estate of the Insured, or (b) the Insured, at any time within three years prior to his or her death, possessed any incident of ownership in the policy. For this purpose, the Treasury Regulations provide that the term "incident of ownership" is to be construed very broadly, and includes any right that the Insured may have with respect to the economic benefits in the policy. Consult a qualified tax advisor on all tax matters involving the policy described herein.
Fixed Account Transfer Restrictions and Limitations
In addition to the Sub-Accounts available under the policy, Net Premium can be allocated to the Fixed Account. Prior to the policy's Maturity Date, the policy owner may make transfers involving the Fixed Account subject to transfer restrictions, without penalty or adjustment. These transfers will be in dollars and Nationwide may limit the frequency and dollar amount of transfers involving the Fixed Account. See Fixed Account Transfers for details about restrictions that apply to transfers to and from the Fixed Account.
Sub-Account Limitations
Frequent trading among the Sub-Accounts may dilute the value of Accumulation Units, cause the Sub-Account to incur higher transaction costs, and interfere with the Sub-Accounts' ability to pursue their stated investment objectives. This could result in less favorable Investment Experience and a lower Cash Value. Nationwide has instituted procedures to minimize disruptive transfers. While Nationwide expects these procedures to reduce the adverse effect of disruptive transfers, it cannot ensure that it has eliminated these risks.
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Sub-Account Investment Risk
A comprehensive discussion of the risks of each underlying mutual fund may be found in the mutual fund’s prospectus. Read each mutual fund's prospectus before investing. Free copies of each mutual fund's prospectus may be obtained by contacting the Service Center, see Contacting the Service Center.
Risk of Policy Lapse
Cash Surrender Value can be reduced by Investment Experience, policy loans, partial surrenders and the deduction of policy charges. Underlying mutual fund fees are factored into the NAV used to calculate the Accumulation Unit Value of each Sub-Account and may also reduce Cash Surrender Value, see Mutual Fund Operating Expenses. Whenever Cash Surrender Value is insufficient to cover the policy’s charges, the policy is at risk of Lapse; the policy could terminate without value and insurance coverage would cease.
Limitation of Access To Cash Value
A policy owner can access Cash Value through loans and partial surrenders, subject to limitations. Limitations include the amount and frequency of the loan or partial surrender, see Policy Loans and Surrenders.
In Summary: Fee Tables
The following tables describe the fees and expenses assessed under the policy. The rates in these tables may be rounded up to the nearest one-hundredth decimal. These tables should be read in conjunction with the corresponding section of this prospectus that describes the fee or expense in more detail. All charges deducted from the policy's Cash Value are taken proportionally from the Sub-Accounts and the Fixed Account except where noted.
The first table describes the fees and expenses that a policy owner will pay at the time the policy owner pays Premium into the policy, surrenders the policy, or transfers Cash Value between investment options.
Transaction Fees
Charge When Charge is Deducted Amount Deducted
Percent of Premium Charge1 Upon making a Premium payment  
Maximum:   Policy Year 1
12% of Premium received up to Target Premium;
12% of Premium received that exceeds Target Premium
Currently:   Policy Year 1
10% of Premium received up to Target Premium;
4% of Premium received that exceeds Target Premium
Illustration Charge2 If illustration requests exceed 10 in any 12 month period  
Maximum:   $25 per illustration
Currently:   $25 per illustration
Partial Surrender Fee Upon a partial surrender  
Maximum:   $25
Currently:   $0
1 The Percent of Premium Charge is assessed each time a Premium payment is received. The Percent of Premium Charge will depend on whether the Target Premium for the year in which the Premium is received has been reached. For the applicable charge for all policy years after the first policy year, see Percent of Premium Charge.
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2 The Illustration Charge is only assessed for illustration of In Force policies where the number of requested illustrations exceeds 10 in any 12 month period. The policy owner will be expected to pay the Illustration Charge at the time of the request. This charge will not be deducted from the policy's Cash Value.
The next table describes the fees and expenses that a policy owner will pay periodically while the policy is In Force, not including mutual fund operating expenses.
Periodic Charges
Charge When Charge is Deducted Amount Deducted From Cash Value
Cost of Insurance1† Monthly  
Maximum:   $83.33 per $1,000 of Net Amount At Risk
Minimum:   $0.03 per $1,000 of Net Amount At Risk
Representative: an individual Insured, unisex, Issue Age 40, non-tobacco, Total Specified Amount $250,000, Death Benefit Option 1, policy year 10 and issued on a guaranteed issue basis   $0.20 per $1,000 of Net Amount At Risk
Flat Extra Charge2 Monthly  
Maximum:   $2.08 per $1,000 of Net Amount At Risk for each Flat Extra assessed
Base Policy Specified Amount Charge3† Monthly  
Maximum:   $0.40 per $1,000 of Base Policy Specified Amount
Minimum:   $0.01 per $1,000 of Base Policy Specified Amount
Representative: an individual Insured, unisex, Issue Age 40, non-tobacco, Total Specified Amount $250,000, Death Benefit Option 1, policy year one and issued on a guaranteed issue basis   $0.08 per $1,000 of Base Policy Specified Amount
Variable Account Asset Charge4 Daily, based on an annual effective rate  
Maximum:   0.90% of variable Cash Value
Currently:   0.25% of variable Cash Value
Administrative Per Policy Expense Charge Monthly  
Maximum:   $10 per policy
Currently:   $5 per policy
Policy Loan Interest Charge5 Annually  
Maximum:   3.50% of outstanding policy loan
Currently:   2.80% of outstanding policy loan
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† This charge will vary based upon the individual characteristics of the Insured. Representative charges shown in the table may not be representative of the charge that a particular policy owner will pay. Policy owners can request an illustration of specific costs and/or see the Policy Data Pages for information about specific charges of the policy.
1 The Cost of Insurance Charge varies according to the Insured's sex classification (male, female or unisex), age, underwriting class, tobacco use, Substandard Ratings and the number of years from the Policy Date, or effective date of a Total Specified Amount increase. The Cost of Insurance for the base policy may be different than the Cost of Insurance for the Supplemental Insurance Rider. The maximum charge calculation assumes: the Insured is male, Issue Age 75, standard tobacco, and policy year 36. Other sets of assumptions may also produce the maximum charge. The minimum charge calculation assumes: the Insured is female, Issue Age 24, standard non-tobacco preferred, and policy year one. Other sets of assumptions may also produce the minimum charge, see Cost of Insurance Charge. Under no circumstance will the assessment of a Flat Extra Charge result in the Cost of Insurance Charge exceeding the maximum Cost of Insurance Charge.
2 The Flat Extra Charge is only applicable if certain factors result in an Insured having a Substandard Rating, see Cost of Insurance.
3 The Base Policy Specified Amount Charge is only assessed on the Base Policy Specified Amount. Different and separate charges will be applied for any Rider Specified Amount under the Supplemental Insurance Rider and/or any Long-Term Care Specified Amount under the Long-Term Care Rider, see the Rider Charges table. The Base Policy Specified Amount Charge varies by policy based on the length of time the policy has been In Force. The maximum charge applies to all policy years. The representative charge applies to policy years one through 20. The minimum charge calculation assumes: policy year 21 and beyond. For policies purchased in the state of New York, the maximum charge is $0.085 Per $1,000 of Base Policy Specified Amount.
4 The Variable Account Asset Charge varies based on the amount of Cash Value allocated to the Sub-Accounts. The maximum Variable Account Asset Charge shown in the table reflects the maximum that may be charged in any policy month based on any dollar amount allocated to the Sub-Accounts.
5 Currently, the effective annual interest rate charged on Indebtedness is 2.80% for the first ten policy years and 2.00% thereafter. The Policy Loan Interest Charge is described in more detail in Policy Loans.
The next table describes the fees and expenses associated with Riders that a policy owner will pay periodically while the policy is In Force, not including mutual fund operating expenses.
Rider Charges
Charge When Charge is Deducted Amount Deducted From Cash Value
Overloan Lapse Protection Rider Charge† Upon invoking the Rider  
Maximum:   For policies issued with the guideline premium/cash value corridor test:
$42.50 per $1,000 of Cash Value
For policies issued with the cash value accumulation test:
$157 per $1,000 of Cash Value
Minimum:   $1.50 per $1,000 of Cash Value
Representative: an Attained Age 85 Insured with a Cash Value of $500,000 Upon invoking the Rider $32 per $1,000 of Cash Value
Supplemental Insurance Rider Cost of Insurance Charge1† Monthly  
Maximum:   $83.33 per $1,000 of Rider Net Amount At Risk
Minimum:   $0.01 per $1,000 of Rider Net Amount At Risk
Representative: an individual Insured, unisex, Issue Age 40, non-tobacco, Total Specified Amount $250,000, Death Benefit Option 1, policy year one and issued on a guaranteed issue basis   $0.10 per $1,000 of Rider Net Amount At Risk
Supplemental Insurance Rider Specified Amount Charge2† Monthly  
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Rider Charges
Charge When Charge is Deducted Amount Deducted From Cash Value
Maximum:   $0.40 per $1,000 of Rider Specified Amount
Minimum:   $0.01 per $1,000 of Rider Specified Amount
Representative: an individual Insured, unisex, Issue Age 40, non-tobacco, Total Specified Amount $250,000, Death Benefit Option 1, policy year one and issued on a guaranteed issue basis   $0.02 per $1,000 of Rider Specified Amount
Long-Term Care Rider Charge3† Monthly  
Maximum:   $1.946 per $1,000 of Long Term Care Specified Amount
Minimum:   $0.029 per $1,000 of Long Term Care Specified Amount
Representative: an Attained Age 40 male non-tobacco, and issued on a regular issue basis   $0.062 per $1,000 of Long Term Care Specified Amount
† This charge will vary based upon the individual characteristics of the Insured. Representative charges shown in the table may not be representative of the charge that a particular policy owner will pay. Policy owners can request an illustration of specific costs and/or see the Policy Data Pages for information about specific charges of the policy.
1 The maximum Supplemental Insurance Rider Cost of Insurance Charge calculation assumes: the Insured is male, Issue Age 75, standard tobacco, and policy year 42. Other sets of assumptions may also produce the maximum charge. The minimum charge calculation assumes: the Insured is female, Issue Age 25, standard non-tobacco preferred, and policy year 1. Other sets of assumptions may also produce the minimum charge.
2 The Supplemental Insurance Rider Specified Amount Charge is only assessed on the Rider Specified Amount. A different and separate charge will be applied for any Base Policy Specified Amount under the policy. The Supplemental Insurance Rider Specified Amount Charge varies by policy based on the length of time the policy has been In Force and the Base Policy Specified Amount. The maximum charge applies to all policy years. The representative charge applies to policy years one through 20. The minimum charge assumes: policy year 21 and beyond. For policies purchased in the state of New York, the maximum charge is $0.085 Per $1,000 of Rider Specified Amount.
3 The maximum Long-Term Care Rider Charge assumes: the Insured is a female; Issue Age 80; standard non-tobacco; and issued on a simplified issue basis. The minimum charge assumes: the Insured is a male; Issue Age 21; standard tobacco; and issued on a regular issue basis.
The next table shows the minimum and maximum total operating expenses, as of December 31, 2016, charged by the underlying mutual funds that a policy owner may periodically pay while the policy is In Force. More detail concerning each mutual fund's fees and expenses is contained in the mutual fund's prospectus.
Total Annual Mutual Fund Operating Expenses  
    Minimum   Maximum  
Total Annual Mutual Fund Operating Expenses
(expenses that are deducted from the mutual fund assets, including management fees, distribution (12b-1) fees, and other expenses) 		  0.27%   1.92%  
Policy Investment Options
Policy owners designate how Net Premium payments, loan repayments, and Cash Value are allocated among the Sub-Accounts and/or the Fixed Account. Allocation instructions must be in whole percentages and the sum of the allocations must equal 100%.
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Fixed Account
Nationwide's obligations under the Fixed Account are backed by assets of its general account. The general account contains all of Nationwide's assets other than those in this and other Nationwide separate accounts and is used to support Nationwide's annuity and insurance obligations.
Subject to applicable law, Nationwide has sole discretion over the investment of assets of the general account and policy owners do not share in the investment experience of, or have any preferential claim on, those assets. Nationwide bears the full investment risk for all amounts allocated to the Fixed Account.
Because of exemptive and exclusionary provisions, interests in the Fixed Account have not been and will not be registered under the Securities Act of 1933 and the general account has not been registered as an investment company under the Investment Company Act of 1940. Accordingly, neither the general account nor any interests therein are subject to the provisions of these acts. Nationwide has been advised that the staff of the SEC has not reviewed the disclosure in this prospectus relating to the Fixed Account. Disclosure regarding the Fixed Account, however, is subject to certain generally-applicable provisions of the federal securities laws relating to accuracy and completeness of statements made in prospectuses.
Minimum Guaranteed Interest Rate
Nationwide guarantees that Cash Value allocated to the Fixed Account will accrue interest daily at an effective annual rate that Nationwide determines without regard to the actual investment experience of the general account. Interest crediting rates are set at the beginning of each calendar quarter but are subject to change at any time. Nationwide will credit any interest in excess of the guaranteed interest crediting rate at its sole discretion. Nationwide may not credit any interest in excess of the guaranteed interest crediting rate and different rates may apply to different Premium allocations or exchanges.
Currently, the Fixed Account is the only fixed investment option available under the policy. In the future, Nationwide may offer one or more additional fixed accounts with characteristics that differ from those of the current option, but is under no obligation to do so. The effective annual rate Nationwide declares for the Fixed Account will never be less than 2%.
Interest Crediting Risks and Lapse
The policy owner assumes the risk that the actual credited interest rate may not exceed the guaranteed interest crediting rate. Premiums applied to the policy at different times may receive different interest crediting rates. The interest crediting rate may also vary for new Premium versus Sub-Account transfers. Interest credited to the Fixed Account may be insufficient to pay the policy's charges. Additional Premium payments may be required over the life of the policy to prevent it from Lapsing.
Nationwide’s Claims-Paying Ability
Guaranteed benefits or interest crediting associated with the Fixed Account is a general account obligation of Nationwide. Therefore, any guaranteed benefit, interest crediting, and the policy owner's right to receive payment, is subject to Nationwide’s claims-paying ability and may be subordinate to other claims on the general account in the event Nationwide becomes insolvent.
Restrictions on Transfers to and from the Fixed Account
Prior to the policy's Maturity Date, the policy owner may make transfers involving the Fixed Account. These transfers will be in dollars. Nationwide may impose limits on the dollar amount, percentage of Cash Value, number, and/or frequency of transfers involving the Fixed Account, see Fixed Account Transfers for details about restrictions that apply to transfers to and from the Fixed Account.
Variable Investment Options
The variable investment options available under the policy are Sub-Accounts that correspond to mutual funds that are registered with the SEC. The mutual funds' registration with the SEC does not involve the SEC's supervision of the management or investment practices or policies of the mutual funds. The mutual funds are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies.
Each Sub-Account's assets are held separately from the assets of the other Sub-Accounts. The result is that each Sub-Account operates independently of the other Sub-Accounts so the income or losses of one Sub-Account will not affect the Investment Experience of any other Sub-Account.
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Underlying mutual funds in the separate 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 advisors 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. Policy owners should not compare the performance of a publicly traded fund with the performance of underlying mutual funds participating in the separate account. The performance of the underlying mutual funds could differ substantially from that of any publicly traded funds.
The particular underlying mutual funds available under the policy may change from time to time. Specifically, underlying mutual funds or underlying mutual fund share classes that are currently available may be removed or closed off to future investment. New underlying mutual funds or new share classes of currently available underlying mutual funds may be added. In the case of new share class additions, future allocations may be limited to the new share classes. The policy owner will receive notice of any such changes that effect the policy. Not all underlying mutual funds may be available in every state.
Some underlying mutual funds may assess short-term trading fees. The separate account will collect the short-term trading fee at the time of the transfer by reducing the amount transferred. All short-term trading fees collected are remitted to the underlying mutual fund, see Short-Term Trading Fees and Appendix A: Sub-Account Information.
In the future, additional underlying mutual funds managed by certain financial institutions, brokerage firms, or their affiliates may be added to the separate account. These additional underlying mutual funds may be offered exclusively to purchasing customers of the particular financial institution or brokerage firm, or through other exclusive distribution arrangements.
Valuation of Accumulation Units
Nationwide accounts for the value of a policy owner's interest in the Sub-Accounts by using Accumulation Units. The value of each Accumulation Unit varies daily based on the Investment Experience of the underlying mutual fund in which the Sub-Account invests. Nationwide uses each underlying mutual fund's Net Asset Value (NAV) to calculate the daily Accumulation Unit value for the corresponding Sub-Account. Note, however, that the Accumulation Unit value will not equal the underlying mutual fund's NAV. This daily Accumulation Unit valuation process is referred to as "pricing" the Accumulation Units, see How Sub-Account Investment Experience is Determined.
Accumulation Units are priced as of the New York Stock Exchange's (NYSE) close of business, normally 4:00 p.m. EST, on each day that it is open. Nationwide will price Accumulation Units on each day that the NYSE is open for business. Any transactions received after the close of the NYSE will be priced as of the next Valuation Period. Nationwide will not price Accumulation Units on these recognized holidays:
• New Year's Day
• Martin Luther King, Jr. Day
• Presidents' Day
• Good Friday
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving
• Christmas
 
 
In addition, Nationwide will not price Accumulation Units if:
(1) trading on the NYSE is restricted;
(2) an emergency exists making disposal or valuation of securities held in the separate account impracticable; or
(3) the SEC, by order, permits a suspension or postponement for the protection of security holders.
SEC rules and regulations govern when the conditions described in items (1) and (2) exist.
How Sub-Account Investment Experience is Determined
Sub-Account allocations are accounted for in Accumulation Units. A policy owner's interest in the Sub-Accounts is represented by the number of Accumulation Units owned by the policy owner. The number of Accumulation Units associated with a given Sub-Account allocation is determined by dividing the dollar amount allocated to the Sub-Account by the Accumulation Unit value for the Sub-Account. The number of Sub-Account Accumulation Units owned by a policy
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owner will not change except when Accumulation Units are redeemed to process a requested surrender, transfer, loan, or to take policy charges, or when additional Accumulation Units are purchased with Premium and loan repayments.
Initially, Nationwide sets the Accumulation Unit value at $10 for each Sub-Account. Thereafter, the daily value of Accumulation Units in a Sub-Account will vary depending on the Investment Experience of the underlying mutual fund in which the Sub-Account invests. Nationwide accounts for these performance fluctuations by using a "net investment factor," as described below, in the daily Sub-Account valuation calculations. Changes in the net investment factor may not be directly proportional to changes in the NAV of the mutual fund shares.
Nationwide determines the net investment factor for each Sub-Account on each Valuation Period by dividing (a) by (b), where:
(a) is the sum of:
• the NAV per share of the mutual fund held in the Sub-Account as of the end of the current Valuation Period; and
• the per share amount of any dividend or income distributions made by the mutual fund held in the Sub-Account (if the date of the dividend or income distribution occurs during the current Valuation Period); plus or minus
• a per share charge or credit for any taxes reserved for as a result of the Sub-Account's investment operations if changes to the law result in a modification to the tax treatment of the separate account; and
(b) is the NAV per share of the mutual fund held in the Sub-Account determined as of the end of the immediately preceding Valuation Period.
Nationwide determines the Sub-Account’s Accumulation Unit value at the end of each Valuation Period. The Accumulation Unit value for any Valuation Period is determined by multiplying the Accumulation Unit value as of the prior Valuation Period by the net investment factor for the Sub-Account for the current Valuation Period.
Transfers Among and Between the Policy Investment Options
Sub-Account Transfers
Policy owners may request transfers to or from the Sub-Accounts once per Valuation Period, subject to the terms and conditions described in this prospectus and the prospectuses of the underlying mutual funds. Transfers will be implemented by redeeming Accumulation Units from the Sub-Account(s) indicated by the policy owner and using the redemption proceeds to purchase Accumulation Units in another Sub-Account(s) as directed by the policy owner. The net result is that the policy owner's Cash Value will not change (except due to standard market fluctuations), but the number and allocation of Accumulation Units within the policy will change.
Neither the policies nor the mutual funds are designed to support active trading strategies that require frequent movement between or among Sub-Accounts (sometimes referred to as "market-timing" or "short-term trading"). A policy owner who intends to use an active trading strategy should consult his/her registered representative and request information on other Nationwide policies that offer mutual funds that are designed specifically to support active trading strategies.
Nationwide discourages (and will take action to deter) short-term trading in this policy because the frequent movement between or among Sub-Accounts may negatively impact other investors in the policy. Short-term trading can result in:
• the dilution of the value of the investors' interests in the mutual fund;
• mutual fund managers taking actions that negatively impact performance (i.e., keeping a larger portion of the mutual fund assets in cash or liquidating investments prematurely in order to support redemption requests); and/or
• increased administrative costs due to frequent purchases and redemptions.
To protect investors in this policy from the negative impact of these practices, Nationwide has implemented, or reserves the right to implement, several processes and/or restrictions aimed at eliminating the negative impact of active trading strategies. Nationwide cannot guarantee that attempts to deter active trading strategies will be successful.
If Nationwide is unable to deter active trading strategies, the performance of the Sub-Accounts that are actively traded may be adversely impacted. Policy owners remaining in the affected Sub-Account will bear any resulting increased costs.
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Short-term Trading Fees
Currently, the available underlying mutual funds available under the policy do not assess short-term trading fees. However, Nationwide may add new underlying mutual funds, or new share classes of currently available underlying mutual funds, that assess short-term trading fees. In the case of new share class additions, subsequent allocations may be limited to that new share class. Short-term trading fees are a charge assessed by an underlying mutual fund when the policy owner transfers out of a Sub-Account before the end of a stated period. These fees will only apply to Sub-Accounts corresponding to underlying mutual funds that impose such a charge. The underlying mutual fund intends short-term trading fees to compensate the fund and its shareholders for the negative impact on fund performance that may result from disruptive trading practices, including frequent trading and short-term trading (market timing) strategies. The fees are not intended to adversely impact policy owners not engaged in such strategies. The separate account will collect the short-term trading fees at the time of the transfer by reducing the policy owner's Sub-Account value. Nationwide will remit all such fees to the underlying mutual fund.
U.S. Mail Restrictions
Nationwide monitors transfer activity in order to identify policy owners that might be engaged in harmful trading practices. If Nationwide determines a policy owner is engaged in harmful trading, it may revoke a policy owner's privilege to make trades by means other than written communication ("U.S. mail restriction").
If the U.S. mail restriction is imposed, then all trade requests must be submitted via U.S. mail for a 12 month period per client request. The U.S. mail restriction may be applied if two or more "transfer events" are submitted in a 30 day period. Transfer events are calculated at the end of each Valuation Period by grouping together all transfer requests for that Valuation Period. This grouping is counted as a "transfer event," regardless of the number of Sub-Accounts involved.
For policies owned by a corporation or another entity, Nationwide's procedures include the review of aggregate entity-level transfers, not individual transfer instructions. It is Nationwide's intention to protect the interests of all policy owners; it is possible, however, for some harmful trading to go on undetected. For example, in some instances, an entity may make transfers based on the instruction of multiple parties such as employees, partners, or other affiliated persons based on those persons participation in entity sponsored programs. Nationwide does not systematically monitor the transfer instructions of these individual persons. Aggregate trades among the Sub-Accounts are monitored for frequency, pattern, and size.
Other Restrictions
Nationwide reserves the right to refuse or limit transfer requests, or take any other action it deems necessary, in order to protect policy owners and beneficiaries from the negative investment results that may result from short-term trading or other harmful investment practices employed by some policy owners (or third parties acting on their behalf). In particular, trading strategies designed to avoid or take advantage of Nationwide's monitoring procedures (and other measures aimed at curbing harmful trading practices) that are nevertheless determined by Nationwide to constitute harmful trading practices, may be restricted.
Any restrictions that Nationwide implements will be applied consistently and uniformly. The policy owner will be notified if a transfer request is rejected. If a short-term trading fee is assessed, the policy owner will receive a confirmation notice.
Underlying Mutual Fund Restrictions and Prohibitions
Pursuant to regulations adopted by the SEC, Nationwide is required to enter into written agreements with the underlying mutual funds which allow the underlying mutual funds to:
(1) request the taxpayer identification number, international taxpayer identification number, or other government issued identifier of any policy owner;
(2) request the amounts and dates of any purchase, redemption, transfer, or exchange request ("transaction information"); and
(3) instruct Nationwide to restrict or prohibit further purchases or exchanges by policy owners that violate policies established by the underlying mutual fund (whose policies may be more restrictive than Nationwide’s policies).
Nationwide is required to provide such transaction information to the underlying mutual funds upon their request. In addition, Nationwide is required to restrict or prohibit further purchases or requests to exchange into an underlying mutual fund upon instruction from the underlying mutual fund. Nationwide and any affected policy owner may not have advance
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notice of such instructions from an underlying mutual fund to restrict or prohibit further purchases or requests to exchange into an underlying mutual fund. If an underlying mutual fund refuses to accept a purchase or request to exchange into the underlying mutual fund, Nationwide will keep any affected policy owner in their current underlying mutual fund allocation.
Fixed Account Transfers
Prior to the policy's Maturity Date, the policy owner can make transfers involving the Fixed Account. These transfers will be in dollars. The frequency and amount of transfers involving the Fixed Account are subject to the following restrictions.
Transfers to the Fixed Account
On transfers to the Fixed Account, the policy owner is prohibited from transferring more than 25% of the Cash Value allocated to the Sub-Accounts as of the close of business on the prior Valuation Period. Additionally, Nationwide will refuse any transfer to the Fixed Account if the Cash Value allocated to the Fixed Account comprises more than 25% of the policy's Cash Value. These restrictions do not apply if the policy owner chooses to exercise the right of conversion, see Right of Conversion.
Transfers from the Fixed Account
Transfers from the Fixed Account to the Sub-Account(s) during a policy year are limited to the greater of: (a) 10% of that portion of the Cash Value attributable to the Fixed Account as of the end of the previous policy year; or (b) 120% of the amount transferred from the Fixed Account during the previous policy year. Transfers are also limited to one transfer from the Fixed Account to the Sub-Accounts during any 90 day period.
Transfer requests that exceed the current Fixed Account limits will not be processed. Fixed Account and Sub-Account allocations will remain as they were prior to the request to the extent they exceed the limits.
Any restrictions that are implemented will be applied consistently and uniformly and upon advance notice to the policy owner. Nationwide may waive the above restrictions if doing so would not be unfairly discriminatory or prohibited by state law.
Contacting the Service Center
All inquiries, paperwork, information requests, service requests, and transaction requests should be made to the Service Center:
• by telephone at 1-877-351-8808 (TDD: 1-800-238-3035)
• by mail to Nationwide Life Insurance Company, Nationwide Business Solutions Group, One Nationwide Plaza (1-11-401), Columbus, Ohio 43215-2220
• by fax at 1-855-677-2357
• by Internet at www.nationwide.com.
Nationwide reserves the right to restrict or remove the ability to submit service requests via Internet, phone, or fax upon written notice.
Not all methods of communication are available for all types of requests. To determine which methods are permitted for a particular request, refer to the specific transaction provision in this prospectus, or call the Service Center. Requests submitted by means other than described in this prospectus could be returned or delayed.
Service and transaction requests will generally be processed in the Valuation Period they are received at the Service Center as long as the request is in good order, see Valuation of Accumulation Units. Good order generally means that all necessary information to process the request is complete and in a form acceptable to Nationwide. If a request is not in good order, Nationwide will take reasonable actions to obtain the information necessary to process the request. Requests that are not in good order may be delayed or returned. Nationwide reserves the right to process any transaction request sent to a location other than the Service Center in the Valuation Period it is received at the Service Center.
Nationwide may be required to provide information about a specific policy to government regulators. If mandated under applicable law, Nationwide may be required to reject a Premium payment and to refuse to process transaction requests for transfers, surrenders, loans, and/or Death Benefit Proceeds until instructed otherwise by the appropriate regulator.
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Nationwide will use reasonable procedures to confirm that instructions are genuine and Nationwide will not be liable for following instructions that it reasonably determined to be genuine. Nationwide may record telephone requests. Telephone and computer systems may not always be available. Any telephone system or computer can experience outages or slowdowns for a variety of reasons. The outages or slowdowns could prevent or delay processing. Although Nationwide has taken precautions to support heavy use, it is still possible to incur an outage or delay. To avoid technical difficulties, submit transaction requests by mail.
The Policy
General Information
The policy is a legal contract. It will comprise and be evidenced by: a written contract; any Riders; any endorsements; the Policy Data Pages; and the application, including any supplemental application. The benefits described in the policy and this prospectus, including any optional Riders or modifications in coverage, may be subject to Nationwide’s underwriting and approval. In addition to the terms and conditions of the policy, policy owner rights are governed by this prospectus and protected by federal securities laws and regulations. Nationwide will consider the statements made in the application as representations, and will rely on them as being true and complete. However, Nationwide will not void the policy or deny a claim unless a statement is a material misrepresentation. If a policy owner makes an error or misstatement on the application, Nationwide will adjust the Death Benefit, Rider benefits, and Cash Value accordingly.
Due to state law variations, the terms, benefits, programs and Riders described in this prospectus may vary or may not be available depending on the state in which the policy is issued. Possible state law variations include, but are not limited to, Rider terms and charges, availability of certain investment options, free look rights, policy exchange rights, policy Lapse and/or reinstatement requirements, and suicide, and incontestability periods. This prospectus describes all the material features of the policy. State variations are subject to change without notice at any time. To review a copy of the policy and any Riders or endorsements for the state in which the policy will be issued, contact the Service Center, see Contacting the Service Center.
Under limited circumstances and at the request of the policy owner, Nationwide may backdate the policy by assigning a Policy Date earlier than the date the application is signed. Backdating may result in lower cost of insurance rates; however, policy charges will be deducted from the policy's Cash Value for each accrued month that the policy was backdated.
Any modification or waiver of Nationwide’s rights or requirements under the policy must be in writing and signed by Nationwide’s president or corporate secretary. No agent may bind Nationwide by making any promise not contained in the policy.
Nationwide may modify the policy, its operations, or the separate account’s operations to meet the requirements of any law or regulation issued by a government agency to which the policy, Nationwide, or the separate account is subject. Nationwide may modify the policy to assure that it continues to qualify as a life insurance policy under federal tax laws. Nationwide will notify policy owners of all modifications and will make appropriate endorsements to the policy.
The policy is nonparticipating, meaning that Nationwide will not be contributing any operating profits or surplus earnings toward the policy Proceeds.
To the extent permitted by law, policy benefits are not subject to any legal process on the part of a third-party for the payment of any claim, and no right or benefit will be subject to the claims of creditors (except as may be provided by assignment).
It is important to remember that the portion of any amounts allocated to Nationwide’s general account and any guaranteed benefits Nationwide may provide under the policy exceeding the value of amounts held in the separate account are subject to Nationwide’s claims paying ability.
Any money Nationwide pays, or that is paid to Nationwide, must be in the currency of the United States of America.
In order to comply with the USA PATRIOT Act and rules promulgated thereunder, Nationwide has implemented procedures designed to prevent policies described in this prospectus from being used to facilitate money laundering or the financing of terrorist activities.
Nationwide’s businesses are highly dependent upon its computer systems and those of its business partners. This makes Nationwide potentially susceptible to operational and information security risks resulting from a cyber-attack. These risks include direct risks, such as theft, misuse, corruption and destruction of data maintained by Nationwide, and indirect risks,
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such as denial of service attacks on service provider websites and other operational disruptions that impede Nationwide’s ability to electronically interact with service providers. Cyber-attacks affecting Nationwide, the underlying mutual funds, intermediaries, and other service providers may adversely affect Nationwide and policy values. In connection with any such cyber-attacks, Nationwide and/or its service providers and intermediaries may be subject to regulatory fines and financial losses and/or reputational damage. Cyber security risks may also impact the issuers of securities in which the underlying mutual funds invest, which may cause the underlying mutual funds to lose value. Although Nationwide undertakes substantial efforts to protect its computer systems from cyber-attacks, including internal processes and technological defenses that are preventative or detective, and other controls designed to provide multiple layers of security assurance, there can be no guarantee that Nationwide, its service providers, or the underlying mutual funds will avoid losses affecting the policy due to cyber-attacks or information security breaches in the future.
In the event that policy values are adversely affected as a result of the failure of Nationwide’s cyber-security controls, Nationwide will take reasonable steps to restore policy values to the levels that they would have been had the cyber-attack not occurred. Nationwide will not, however, be responsible for any adverse impact to policy values that result from the policy owner or its designee’s negligent acts or failure to use reasonably appropriate safeguards to protect against cyber-attacks.
Use of the Policy
The policy provides policy owners, such as individuals or corporations, life insurance on an Insured upon whose life the policy owner has an insurable interest. This policy may be used in connection with various types of executive and employee benefit plans. When purchased in connection with such benefit plans, the policy may qualify for non-medical underwriting, see Cost of Insurance Charge.
The policies are based upon actuarial tables that may distinguish between men and women unless the purchaser is an entity and requests non-sex distinct tables be used for underwriting. The policies generally provide different benefits to men and women of the same age. Accordingly, employers and employee organizations should consider, in consultation with legal counsel, the impact of sex-distinct underwriting on any employment related insurance or benefit program before purchasing the policy.
Policy Owner and Beneficiaries
Policy Owner
The policy belongs to the owner named in the application or as a result of a valid assignment. The policy owner may name a contingent owner who will become the policy owner if the policy owner dies or ceases to be in existence before Proceeds become payable. Otherwise, ownership will pass to the policy owner's estate (or successor-in-interest), if the policy owner is not the Insured.
Policy Owner Rights
The policy owner may exercise all policy rights in accordance with policy terms while the policy is In Force, subject to Nationwide’s approval. These rights include, but are not limited to, the following:
• changing the policy owner, contingent owner, and beneficiary;
• assigning, exchanging, and/or converting the policy;
• requesting transfers, policy loans, and partial surrenders or a complete surrender; and
• changing insurance coverage such as death benefit option changes, adding or removing Riders, and/or increasing or decreasing the Total Specified Amount and/or the specified amount associated with elected Riders, if applicable.
These rights are explained in greater detail throughout this prospectus.
Subject to Nationwide’s approval, the policy owner may name a different policy owner or contingent owner while the policy is In Force by submitting a written request to the Service Center. Any such change request will become effective as of the date signed, however, it will not affect any payment made or action taken before the change is received and recorded by Nationwide. There may be adverse tax consequences to changing parties of the policy. Nationwide will review the available Enhancement Benefit and may revise it in the event a new policy owner is named.
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Beneficiaries
The principal right of a beneficiary is to receive the Death Benefit Proceeds if the Insured dies while the policy is In Force. While the policy is In Force, a policy owner may name more than one beneficiary, designate primary and contingent beneficiaries, change or add beneficiaries, and/or direct Nationwide to distribute the Proceeds other than as described below.
If a primary beneficiary dies or ceases to be in existence before the Insured, Nationwide will pay the Death Benefit Proceeds to the surviving primary beneficiaries. Unless specified otherwise by the policy owner, Nationwide will pay multiple primary beneficiaries in equal shares. A contingent beneficiary will become the primary beneficiary if all primary beneficiaries die or cease to be in existence before the Insured and before any Proceeds become payable. A policy owner may name more than one contingent beneficiary. Unless specified otherwise by the policy owner, Nationwide will also pay multiple contingent beneficiaries in equal shares. If no beneficiary or contingent beneficiary is alive or in existence upon the Insured's death, the Death Benefit Proceeds will be payable to the policy owner.
Requests to change or add beneficiaries must be submitted in writing to the Service Center. Nationwide may require that the policy owner send the policy for endorsement before the change is recorded. Any such change request will become effective as of the date signed, however, it will not affect any payment made or action taken before the change is received and recorded by Nationwide.
Purchasing a Policy
The policy is available for Insureds between the Issue Ages of 18 and 80. To purchase the policy, prospective purchasers must submit a completed application and the required initial Premium payment.
Nationwide must receive evidence of insurability that satisfies its underwriting standards (this may require a medical examination) before it will issue a policy. Nationwide can provide prospective purchasers with the details of its underwriting standards upon request. Nationwide reserves the right to reject any application for any reason permitted by law. Additionally, Nationwide reserves the right to modify its underwriting standards on a prospective basis for newly issued policies at any time.
The minimum initial Base Policy Specified Amount in most states is $50,000. Nationwide reserves the right to modify the minimum Base Policy Specified Amount on a prospective basis for newly issued policies at any time.
Underwriting may occur at a corporate level to determine whether or not the risks and expenses associated with the insurance applied for is appropriate for Nationwide to assume in placing the policy. Nationwide may refuse to issue any additional policies to a policy owner who has previously been issued policies by Nationwide that have aggregate scheduled annual Premium that exceeds $15 million.
Initial Premium Payment
The initial Premium payment is due on the Policy Date. Any due and unpaid policy charges will be subtracted from the initial Premium payment. Insurance coverage will not be effective until the initial Premium is paid, even if the Policy Date precedes the date the initial Premium is paid. The required initial Premium payment amount is stated in the Policy Data Pages and will depend on the following factors: the initial Base Policy Specified Amount, death benefit option elected, any Riders elected, and Insured's age, health, and activities. Initial Premium may be paid to the Service Center or to an authorized Nationwide representative. The initial Premium payment will not be applied to the policy until the underwriting process is complete.
Insurance Coverage Effective Date
Unless the policy is issued pursuant to an exchange under Section 1035 of the Code, issuance of full insurance coverage occurs on the latest of:
• the date Nationwide certifies that the complete application materials have been submitted and the underwriting conditions have been satisfied;
• the Policy Date; or
• the date the initial Premium is received at the Service Center.
If the policy is issued as a result of an exchange under Section 1035 of the Code, issuance of full insurance coverage occurs on the later of:
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• the date the insurance carrier of the exchanged policy authorizes payment of such policy's proceeds to Nationwide; or
• the date Nationwide certifies that the complete application materials have been submitted and the underwriting conditions have been satisfied, provided there is sufficient Premium to pay policy charges for at least three months.
Nationwide has the right to reject any application for insurance. If an application is rejected, the Premium will be returned to the policy owner within two business days of the date the decision to reject an application is made.
With respect to policy reinstatement, the effective date of coverage will be the monthly anniversary of the Policy Date on or next following the date Nationwide approves the reinstatement.
With respect to Base Policy Specified Amount or Rider Specified Amount increases, an approved increase will have an effective date of the monthly anniversary of the Policy Date on or next following the date Nationwide approves the supplemental application unless the policy owner requests and Nationwide approves a different date. With respect to any decrease in coverage, the effective date of coverage will be the monthly anniversary of the Policy Date that falls on or next following the date Nationwide receives the request.
Insurance coverage will end upon the Insured's death, the policy owner terminates coverage in writing, Nationwide pays the Maturity Proceeds, the Grace Period ends, or the policy is surrendered in full.
Right to Cancel (Examination Right)
Under state law a policy owner may, for a limited time, cancel the policy and receive a refund (commonly referred to as the "free look" period). The length of the free look period depends on state law and may vary depending on whether the policy was purchased to replace another policy. The minimum "free look" period is 10 days.
In order to cancel the policy during the free look period, a policy owner must submit a written cancellation request and return the policy either to the sales representative or to the Service Center. Nationwide will honor free look cancellation requests received by the last day of the free look period (if returned by US mail, the request must be post-marked by the last day of the free look period).
Free look cancellation requests received after the close of business on the date the free look period expires will not be canceled free of charge. If the policy is canceled, Nationwide will treat the policy as if it was never issued.
Within seven days of a free look cancellation request, Nationwide will refund the amount prescribed by state law. The amount Nationwide refunds will be Cash Value or, in certain states, the greater of the Premium paid or the policy's Cash Value plus any charges deducted.
Allocation of Net Premium During Free Look Period
Where state law requires the return of initial Premium for free look cancellations, Nationwide will allocate initial Net Premium to the Fixed Account as instructed. Nationwide will allocate initial Net Premium allocated to the Sub-Accounts to the available money market Sub-Account until the free look period expires. At the expiration of the free look period, Nationwide will transfer the amount held in the money market Sub-Account to the requested Sub-Accounts based on the allocation instructions in effect at the time of the transfer.
Where state law requires the return of Cash Value, Nationwide will allocate all of the initial Net Premium to the designated Sub-Accounts and Fixed Account based upon the allocation instructions in effect at the time, on the next Valuation Period.
Premium Payments
This policy does not require a payment of a scheduled Premium amount to keep it In Force. It will remain In Force as long as the conditions that cause a policy to Lapse do not exist, see Lapse and Unfavorable Investment Experience. Premium payment reminder notices will be sent according to the Premium payment schedule selected by the policy owner. Additional Premium payments must be submitted to the Service Center. Each Premium payment must be at least $25. Upon request, Nationwide will furnish Premium payment receipts. Policy owners may make additional Premium payments at any time while the policy is In Force and prior to the Maturity Date, subject to the following:
• Nationwide may require satisfactory evidence of insurability before accepting any additional Premium payment that results in an increase in the policy's Net Amount At Risk.
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• Nationwide will refund Premium payments that exceed the applicable premium limit established by the Code to qualify the policy as a contract for life insurance.
• Nationwide will monitor Premiums paid and will notify policy owners when the policy is in jeopardy of becoming a modified endowment contract, see Taxes.
• Nationwide may require that policy Indebtedness be repaid before accepting any additional Premium payments.
Subsequent Premium payments will be allocated according to the allocation instructions in effect at the time the Premium is received.
Target Premium and the Base Policy
Premium payments are categorized as either Target Premium or Excess Premium. Target Premium is an annual Premium based upon the Insured's Issue Age, underwriting classification and Base Policy Specified Amount. Each Premium payment in a given policy year is considered a contribution toward Target Premium until the total of all contributions in such policy year equal the Target Premium. Premium in any given Policy Year that exceeds the Target Premium amount is considered Excess Premium. Whether Premium is considered Target Premium or Excess Premium directly impacts the Percent of Premium Charge that is assessed on each Premium payment, see Percent of Premium Charge.
Target Premium and the Supplemental Insurance Rider
In general, election of the Supplemental Insurance Rider decreases the policy’s Target Premium because of policy charge blending (an example of policy charge blending is provided in Appendix D: Examples of Policy Charge Blending). A lower Target Premium impacts the amount of Percent of Premium Charge assessed because a lower Target Premium will result in a greater portion of Net Premium paid being considered Excess Premium. The Percent of Premium Charge is less when assessed against Excess Premium than when assessed against Target Premium during the first four policy years or first four policy years following an increase in Total Specified Amount.
Cash Value
Nationwide will determine the Cash Value at least monthly. Cash Value will fluctuate daily and there is no guaranteed Cash Value. At the end of any given Valuation Period, the Cash Value is equal to the sum of:
• the value of the Accumulation Units allocated to the Sub-Accounts, see Valuation of Accumulation Units;
• amounts allocated to the Fixed Account, including credited interest; and
• amounts allocated to the policy loan account (only if a loan was taken), including credited interest, see Policy Loans.
Surrenders and policy charges and deductions will reduce the Cash Value of the policy. If Cash Value is a factor in calculating a benefit associated with the policy, such as the Death Benefit or a benefit associated with an elected Rider, the value of that benefit will also fluctuate, including being reduced due to surrenders and policy charge deductions. If the policy is surrendered or Lapses, the Cash Value will be reduced by the amount of any Indebtedness.
On any date during the policy year, the Cash Value equals the Cash Value on the preceding Valuation Period, plus any Net Premium applied since the previous Valuation Period, minus any policy charges, plus or minus any investment results, and minus any partial surrenders.
Enhancement Benefit
An Enhancement Benefit may be payable under the policy. The Enhancement Benefit is a dollar amount that is added to the Cash Value when there is a complete surrender of the policy. The Enhancement Benefit is essentially a partial return of policy charges assessed. In most instances, the Enhancement Benefit will not exceed the sum of all charges assessed on the policy.
The Enhancement Benefit is designed to, in the event of a surrender in the early policy years, minimize the difference between the accumulated Premiums paid and the actual Cash Surrender Value. A benefit of this to an individual policy owner is to off-set the difference between the taxable income that may be incurred when an employer pays the policy’s Premium and the actual Cash Surrender Value received upon a policy surrender. A benefit of this to a corporate policy owner is to allow the policy in the early policy years to more closely track the corporate liability it is intended to off-set. The difference between the accumulated Premiums paid and the Cash Surrender Value is generally greater in the early policy years due to the upfront costs associated with purchasing the policy and the lack of time that the policy's Cash Value has had to grow. This is accomplished by lowering the cost associated with a surrender in the early policy years.
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The Enhancement Benefit, if any, is not available upon a surrender during the Right to Cancel (Examination Right) period, nor is it available upon a surrender that qualifies as a Section 1035 exchange. Additionally, the Enhancement Benefit is not payable in conjunction with a policy loan, partial surrender, or Lapse.
The Enhancement Benefit guaranteed duration and minimum guaranteed amount are stated on the Policy Data Pages. Currently, the Enhancement Benefit is available for the first six policy years; however, Nationwide may, at any time, decrease or eliminate the Enhancement Benefit after the guaranteed duration stated on the Policy Data Pages.
The Enhancement Benefit is calculated monthly and is equal to the product of (a) and the Cash Value, not to exceed the product of (b) and (c), where:
(a) = the Enhancement Percentage;
(b) = the Enhancement Cap Percentage; and
(c) = Total Percent of Premium Charge Paid.
Currently, the percentages used in the Enhancement Benefit calculation decline after the first policy year. The benefit decreases to zero at the end of the sixth policy year, see Appendix C: Factors Used in Calculating the Enhancement Benefit.
Since the policy's Cash Value is a factor in determining the Enhancement Benefit, factors that impact the Cash Value will also impact the amount of the Enhancement Benefit, if any. Additionally, if the Supplemental Insurance Rider is In Force, the Enhancement Benefit is reduced because of the lower charges associated with the Rider, see Appendix C: Factors Used in Calculating the Enhancement Benefit.
The Enhancement Benefit is paid from our General Account at the time the policy is completely surrendered. As a General Account obligation, the Enhancement Benefit is not part of the separate account and is an obligation of Nationwide. This means the Enhancement Benefit, including the policy owner’s right to receive payment, is subject to Nationwide’s claims paying ability. Any claim to payment of the Enhancement Benefit may be subordinate to other claims on our General Account in the event Nationwide becomes insolvent. Nationwide may postpone payment of the Enhancement Benefit for up to six months from the date of a surrender request.
Changing the Amount of Insurance Coverage
The policy owner may request to change the Base Policy Specified Amount. To change the Base Policy Specified Amount, the policy owner must submit a written request to the Service Center. Changes to the Base Policy Specified Amount will become effective on the next monthly policy anniversary after Nationwide approves the request unless the policy owner requests and Nationwide approves a different date. However, no change will take effect unless the Cash Surrender Value would be sufficient to keep the policy In Force for at least three months. Nationwide may limit the number of Base Policy Specified Amount changes to one increase and one decrease each policy year. Changes to the Base Policy Specified Amount will typically alter the Death Benefit.
Increases
To increase the Base Policy Specified Amount, the policy owner must provide satisfactory evidence of insurability. The Insured must be between Issue Ages of 18 and 80 at the time of the request. Any request to increase the Base Policy Specified Amount must be at least $10,000 and the Base Policy Specified Amount after the increase may not exceed the Maximum Death Benefit. Requests to increase the Base Policy Specified Amount will be applied in the proportion the increase bears to Total Specified Amount. This means if a policy has the Supplemental Insurance Rider, all increases will be done proportionally between the policy's Base Policy Specified Amount and Rider Specified Amount. The policy owner cannot elect how to allocate increases in Total Specified Amount after the Policy Date. An increase in the Base Policy Specified Amount may cause an increase in the Net Amount At Risk. Because the Cost of Insurance Charge is based on the Net Amount At Risk, and because there will be a separate cost of insurance rate for the increase, this will usually cause the policy's Cost of Insurance Charge to increase. An increase in the Base Policy Specified Amount may require the policy owner to make larger or additional Premium payments in order to avoid Lapsing the policy. Increases in the Base Policy Specified Amount will result in a corresponding increase in the Long-Term Care Specified Amount only if the increase causes the Long-Term Care Specified Amount to fall below 10% of the Total Specified Amount.
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Decreases
The policy owner may request to decrease the Base Policy Specified Amount any time after the first policy year. Requests to decrease the Base Policy Specified Amount will be applied to the most recent Base Policy Specified Amount increase and applied backwards ending with the original Base Policy Specified Amount. Decreases to the Base Policy Specified Amount may decrease policy charges calculated per $1,000 of Base Policy Specified Amount or Net Amount At Risk (including any Rider charges), depending on the death benefit option elected and the amount of the Cash Value. Nationwide will deny any request to reduce the Base Policy Specified Amount below the minimum Total Specified Amount shown on the Policy Data Page. Nationwide will also deny any request that would disqualify the policy as a contract for life insurance. Decreases in the Base Policy Specified Amount will result in a corresponding decrease in the Long-Term Care Specified Amount only if the Total Specified Amount would be less than the Long-Term Care Specified Amount after the decrease.
Right of Conversion
At any time, a policy owner may elect to transfer 100% of the policy’s Cash Value allocated to the Sub-Accounts into the Fixed Account without regard to any restrictions otherwise applicable to such transfers.
This conversion right must be invoked in writing by submitting a request to the Service Center on a Nationwide approved form. This election is irrevocable.
Once the request has been processed, the policy will in effect become a fixed life insurance policy, and the policy's Cash Value will be credited with the Fixed Account's interest rate. In addition, the following will apply after conversion:
• transfers out of the Fixed Account will no longer be available and the policy will no longer participate in the Investment Experience of the Sub-Accounts;
• a Variable Account Asset Charge will no longer be deducted; and
• all other benefits, services, Riders, and charges, including loans and full and partial surrenders will continue and/or continue to be available, subject to the terms applicable prior to the conversion.
Exchanging the Policy
The policy owner has an exchange right under the policy. At any time within the first 24 months of coverage from the Policy Date, the policy owner may surrender the policy and use the Cash Surrender Value to purchase a new permanent fixed life insurance policy on the Insured's life without evidence of insurability.
To invoke this right, the policy must be In Force and not in the Grace Period, and the policy owner must submit a written request to the Service Center on approved forms.
The new policy may be one of Nationwide’s available fixed benefit individual life insurance policies. The death benefit on the new policy may not be greater than the Death Benefit on this policy immediately prior to the exchange date. The new policy will have the same Total Specified Amount, Policy Date, and Issue Age. Nationwide will base Premium payments on the rates in effect for the same sex, Attained Age, and underwriting class of the Insured on the exchange date, unless otherwise required by state law. The policy owner may transfer Indebtedness to the new policy.
Exchange requests must be made on Nationwide forms and submitted to the Service Center. The policy must be In Force and not in a Grace Period. The policy owner must pay a Surrender Charge if applicable and surrender the policy to Nationwide. The policy owner must pay any money due on the exchange (any amount needed to ensure that the Cash Surrender Value of the new policy is the same as the Cash Surrender Value of this policy). The policy owner may request that any excess of the Cash Surrender Value of this policy over the Cash Surrender Value of the new policy be paid to the policy owner. The exchange may have adverse tax consequences. The new policy will take effect on the exchange date only if the Insured is alive. This policy will terminate when the new policy takes effect.
After the first 24 months of coverage, the policy owner may still surrender the policy and use the Cash Surrender Value to purchase a new permanent fixed life insurance policy on the Insured's life. However, issuance of the new policy will depend on the Insured providing satisfactory evidence of insurability.
Terminating the Policy
There are several ways that the policy can terminate. All coverage under the policy will terminate when any one of the following events occur:
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• the policy owner requests in writing to the Service Center to terminate coverage;
• the Insured dies;
• the policy is In Force on the Maturity Date and the policy owner does not elect to extend coverage beyond the Maturity Date;
• the policy Lapses; or
• the policy is surrendered for its Cash Surrender Value.
Terminating the policy may result in adverse tax consequences.
Assigning the Policy
The policy owner may assign any or all rights under the policy while it is In Force, subject to Nationwide’s approval. The beneficiary's interest will be subject to the person or entity to which the policy owner assigned rights. Assignments must be in writing on a form satisfactory to Nationwide. Assignments will become effective on the date signed, unless otherwise specified by the policy owner, and are subject to any payments or actions taken by Nationwide before it is received and recorded at the Service Center. Nationwide is not responsible for the sufficiency or validity of any assignment. Assignments will be subject to any Indebtedness, policy liens, garnishments, court orders, and any previous assignments. If the assignment qualifies as an exchange under Section 1035 of the Code, no Enhancement Benefit will be paid.
Reports and Illustrations
Nationwide will send scheduled Premium payment reminders and transaction confirmations to policy owners upon request. Nationwide will also send quarterly and annual statements that show:
• the Total Specified Amount;
• Premiums paid;
• all charges since the last report;
• the current Cash Value;
• the Cash Surrender Value; and
• Indebtedness.
Confirmations of individual financial transactions, such as transfers, partial Surrenders, and loans are generated and mailed automatically. Copies may be obtained by contacting the Service Center. Alternatively, policy owners may receive information faster and reduce the amount of mail received by signing up for the eDelivery program. Go to www.nationwide.com/login to change the document delivery preferences.
Nationwide will send these reminders and reports to the address provided on the application unless directed otherwise. At any time, policy owners may ask for an illustration of future benefits and values under the policy, see Illustration Charge.
Standard Policy Charges
Nationwide takes deductions from Premium payments and/or the Cash Value to compensate it for the services and benefits provided, the costs and expenses incurred, and the risks assumed. Nationwide may generate a profit from any of the charges assessed under the policy and certain expenses may be recovered utilizing more than one charge.
Monthly charges are deducted from the policy's Cash Value beginning on the Policy Date. Charges are assessed by redeeming Accumulation Units. The number of Accumulation Units redeemed is determined by dividing the dollar amount of the charge by the Accumulation Unit value for the Sub-Account. Nationwide does not deduct policy charges or Rider charges from the Cash Value attributable to the policy loan account, see Policy Loans.
The charges reflect the costs and risks associated with the policy. The Insured is assigned to an underwriting class based upon his/her age, sex (if not unisex classified), smoker status, type of evidence of insurability, and insurability status.
Nationwide may change policy and/or Rider charges and rates under the policy at any time. Changes in policy and/or Rider charges and rates will vary by changes in future expectations for factors including, but not limited to, our investment earnings, mortality experience, persistency experience, expenses, including reinsurance expenses, and taxes. Changes to policy and/or Rider charges and rates will be on a uniform basis for Insureds of the same Issue Age, sex, rate class, rate type, any Substandard Rating, Total Specified Amount and Base Policy Specified Amount whose policies have been In
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Force for the same length of time. If a change in the charges or rates causes an increase to the policy and/or Rider charges, the policy's Cash Value could decrease. If a change in the charges or rates causes a decrease to the policy and/or Rider charges, the policy's Cash Value could increase. Any changes will be determined in accordance with state law. Policy and Rider charges will never exceed the maximum charges shown in the fee tables, see In Summary: Fee Tables.
Percent of Premium Charge
Nationwide deducts a Percent of Premium Charge from each Premium payment to partially reimburse it for sales expenses and Premium taxes, and certain actual expenses, including expenses related to the sale of the policy. The Variable Account Asset Charge is also designed to partially reimburse us for these expenses. The Percent of Premium Charge also provides revenue to compensate Nationwide for assuming risks associated with the policy, and revenue that may be a profit.
The Percent of Premium Charge is comprised of 2 components, the Sales Load component and the Premium Tax component. The Sales Load component is to cover sales expenses. The Premium Tax component is to reimburse Nationwide for state and local premium taxes (at the estimated rate of 2.25%) and for federal premium taxes (at the estimated rate of 1.25%). This amount is not the actual amount of the tax liability Nationwide might incur. It is an estimated amount. If the actual tax liability is more or less, Nationwide will not adjust the charge retroactively.
The Percent of Premium Charge assessed on each Premium payment depends on whether the Target Premium for the year in which the Premium is received has been reached. Currently, the Percent of Premium Charge assessed is based on the following table:
Policy Year   Premium Paid Up To
Target Premium 		  Premium Paid In Excess
of Target Premium
1
   10%   4%
2
   8%   3%
3
   6%   2%
4
   4%   2%
5+
   2%   2%
Nationwide may waive the Percent of Premium Charge on the initial Premium paid into this policy as part of a sponsored exchange program to another Nationwide policy, as permitted under the securities laws and/or rules or by order of the SEC.
Illustration Charge
Nationwide only assesses an Illustration Charge for excessive requests for In Force policies. Excessive requests means more than 10 in any 12 month period. This charge compensates Nationwide for the administrative costs of generating the illustration. This charge will not exceed $25 per illustration requested. Any Illustration Charge must be paid at the time of the illustration request. The Illustration Charge will not be deducted from the policy's Cash Value.
The Illustration Charge is not applicable to requests for illustrations of prospective policies during the sales process.
Partial Surrender Fee
Partial Surrender Fees are deducted proportionally from the Sub-Accounts and Fixed Account. Nationwide currently waives the Partial Surrender Fee. The fee is intended to compensate Nationwide for the administrative costs associated with calculating and generating the surrender amount. Nationwide may elect in the future to assess a Partial Surrender Fee. The Partial Surrender Fee assessed to each surrender will not exceed $25.
Administrative Expense Charge
An administrative charge is deducted proportionally from the policy's Sub-Account and Fixed Account allocations on the Policy Date and each monthly anniversary of the Policy Date. The charge reimburses Nationwide for the costs of maintaining the policy, including accounting and record-keeping. The charge is currently $5 per month in all policy years. The maximum guaranteed charge is $10 per month in all years.
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Cost of Insurance Charge
A Cost of Insurance Charge is deducted proportionally from Sub-Account and Fixed Account allocations on the Policy Date and on each monthly anniversary of the Policy Date. The charge is intended to cover Nationwide’s expenses associated with providing expected mortality benefits and assuming certain risks associated with the policy, and to cover other expenses, including acquisition costs, and state and federal taxes. Nationwide may also profit from this charge.
The Cost of Insurance Charge is the product of the Net Amount At Risk and the cost of insurance rate. The cost of insurance rate will vary by the Insured's issue age, sex, underwriting classification, any Substandard Ratings, how long the policy has been In Force, and the Base Policy Specified Amount. The cost of insurance rates are based on Nationwide’s expectations as to future mortality and expense experience, investment earnings, persistency, and taxes. Current and guaranteed monthly cost of insurance rates generally increase year over year to reflect expectations that mortality and underwriting risks generally increase as the Insured's Attained Age and the length of time the Policy has been In Force increase.
There will be a separate cost of insurance rate for the initial Base Policy Specified Amount and any Base Policy Specified Amount increase. The cost of insurance rate(s) will never be greater than what is shown on the Policy Data Pages.
Flat Extras and Substandard Ratings
Nationwide may inquire about the occupation and activities of the Insured through the underwriting process. If the activities or occupation of the Insured cause an increased health or accident risk, it may result in the Insured receiving a Substandard Rating. If this is the case, Nationwide may add an additional component to the Cost of Insurance Charge called a "Flat Extra Charge." The Flat Extra Charge accounts for the increased risk of providing life insurance when one or more of these factors apply to the Insured. The Flat Extra Charge is a component of the total Cost of Insurance Charge, so if applied it will be deducted from Cash Value on the Policy Date and the monthly anniversary of the Policy Date. The monthly Flat Extra Charge is between $0.00 and $2.08 per $1,000 of the Net Amount At Risk. If a Flat Extra Charge is applied, it is shown in the Policy Data Pages. In no event will the Flat Extra Charge result in the Cost of Insurance Charge exceeding the maximum charge shown in In Summary: Fee Tables.
Nationwide will uniformly apply a change in any cost of insurance rate for Insureds of the same age, sex, underwriting class, Substandard Ratings, and Base Policy Specified Amount, if the policies have been In Force for the same length of time. If a change in the cost of insurance rates causes an increase to a policy’s Cost of Insurance Charge, the policy's Cash Value could decrease. If a change in the cost of insurance rates causes a decrease to the policy’s Cost of Insurance Charge, the policy's Cash Value could increase.
Non-Medical Underwriting
Nationwide may underwrite the policy on a non-medical basis that may result in a higher Cost of Insurance Charge. Non medical underwriting means that a physical examination to obtain medical information on the proposed Insured is not required to issue the policy. The higher Cost of Insurance Charge would compensate Nationwide for assuming additional mortality risk as a result of issuing without the information that results from medical underwriting. The result is that healthy individuals will subsidize less healthy individuals because there is no medical underwriting, which typically results in lower cost of insurance rates being applied to fully underwritten policies. A medically underwritten policy for a healthy insured would likely have lower cost of insurance rates.
Base Policy Specified Amount Charge
A Base Policy Specified Amount Charge is deducted proportionally from the Sub-Account and the Fixed Account allocations on the Policy Date and each monthly anniversary of the Policy Date. The charge is intended to compensate Nationwide for sales, underwriting, distribution and issuance of the policy. The charge applicable to the policy depends on the Total Specified Amount. The maximum guaranteed monthly Base Policy Specified Amount Charge is $0.40 per $1,000 of Base Policy Specified Amount (unless the policy is purchased in the state of New York, where the maximum guaranteed monthly Base Policy Specified Amount Charge is $0.085 per $1,000 of Base Policy Specified Amount).
A distinct Rider Specified Amount Charge applies to the Supplemental Insurance Rider. If that Rider is elected, the Total Specified Amount charges will depend upon the allocation of Total Specified Amount between the base policy and the Supplemental Insurance Rider. To determine Total Specified Amount charges, the Base Policy Specified Amount charge must be added to the Rider Specified Amount charge. Total charges are a weighted average of the amount of Base Policy Specified Amount and Rider Specified Amount. The end result is a charge blending, see Supplemental Insurance Rider Specified Amount Charge.
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Variable Account Asset Charge
Nationwide deducts a Variable Account Asset Charge proportionally from the Sub-Account allocations daily to compensate it for assuming the risk associated with mortality and expense costs. This charge provides revenue to compensate Nationwide for assuming certain risks associated with the policy, and revenue that may be profit. The mortality risk is that the Insured will not live as long as expected. The expense risk is that the costs of issuing and administering the policy will be more than expected.
The Variable Account Asset Charge applicable to the policy depends on the amount of Cash Value allocated to the Sub-Accounts. The maximum guaranteed Variable Account Asset Charge is equal to an annualized rate of 0.90% of the policy's Cash Value allocated to the Sub-Accounts for all policy years. Currently, the annualized Variable Account Asset Charge rate assessed is based on the following schedule:
Charge for policy years 1-4 Charge for policy years 5-15 Charge for policy years 16+
0.25% of Cash Value allocated to the Sub-Accounts 0.20% of Cash Value allocated to the Sub-Accounts 0.10% of Cash Value allocated to the Sub-Accounts
Mutual Fund Operating Expenses
In addition to the policy charges, there are also charges associated with the mutual funds in which the Sub-Accounts invest. Policy owners do not pay these charges directly, but these charges do affect the value of the assets allocated to the Sub-Accounts because these charges are reflected in the underlying mutual fund prices that Nationwide subsequently uses to value Sub-Account units. The underlying mutual funds' prospectuses contain additional information about these charges. Policy owners may contact the Service Center to receive, free of charge, copies of the prospectuses for any of the underlying mutual funds available under the policy.
A Note on Charges
During a policy's early years, the expenses Nationwide incurs in distributing and establishing the policy exceed the deductions. Nevertheless, Nationwide expects to make a profit over time because variable life insurance is intended to be a long-term financial investment. Accordingly, Nationwide has designed the policy with features and investment options that it believes support and encourage long-term ownership.
Nationwide makes many assumptions and accounts for many economic and financial factors when establishing the policy's fees and charges. The following is a discussion of some of the factors that are relevant to the policy's pricing structure.
Distribution, Promotional, and Sales Expenses
Distribution, promotional, and sales expenses include amounts paid to broker-dealer firms as commissions, expense allowances, and marketing allowances. Nationwide refers to these expenses collectively as "total compensation."
Nationwide has the ability to customize the total compensation package of its broker-dealer firms. Nationwide may vary the form of compensation paid or the amounts paid as commission, expense allowance, or marketing allowance; however, the total premium based compensation will not exceed the maximum of 40% of first year premiums and 15% of renewal premium after the first year. Commission may also be paid as an asset-based amount instead of a premium based amount. If an asset-based commission is paid, it will not exceed 0.30% of the non-loaned Cash Value per year.
Marketing allowance is based on a firm’s ability and demonstrated willingness to promote and market Nationwide’s products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities that may contribute to the promotion and marketing of Nationwide’s products.
The actual amount and/or forms of total compensation paid depend on factors such as the level of premiums Nationwide receives from respective broker-dealer firms and the scope of services the firms provide. Some broker-dealer firms may not receive maximum total compensation.
Individual registered representatives typically receive a portion of the commissions/total compensation paid, depending on their arrangement with their broker-dealer firm. Policy owners should consult the registered representative or Nationwide Business Solutions Group to know the exact compensation arrangement associated with this policy.
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Information on Underlying Mutual Fund Service Fee Payments
Nationwide's Relationship with the Underlying Mutual Funds
The underlying mutual funds incur expenses each time they sell, administer, or redeem their shares. The separate account aggregates policy owner purchase, redemption, and transfer requests and submits net or aggregated purchase/redemption requests to each underlying mutual fund daily. The separate account (not the policy owners) is the underlying mutual fund shareholder. When the separate account aggregates transactions, the underlying mutual fund does not incur the expense of processing individual transactions it would normally incur if it sold its shares directly to the public. Nationwide incurs these expenses instead.
Nationwide also incurs the distribution costs of selling the policy (as discussed above), which benefit the underlying mutual funds by providing policy owners with Sub-Account options that correspond to the underlying mutual funds.
An investment advisor or subadvisor of an underlying mutual fund or its affiliates may provide Nationwide or its affiliates with wholesaling services that assist in the distribution of the policy and may pay Nationwide or its affiliates to participate in educational and/or marketing activities. These activities may provide the advisor or subadvisor (or their affiliates) with increased exposure to persons involved in the distribution of the policy.
Types of Payments Nationwide Receives
In light of the above, the underlying mutual funds or their affiliates make certain payments to Nationwide or its affiliates (the "payments"). The amount of these payments is typically based on a percentage of assets invested in the underlying mutual funds attributable to the policies and other variable policies Nationwide and its affiliates issue, but in some cases may involve a flat fee. These payments are made for various purposes, including payments for the services provided and expenses incurred by the Nationwide companies in promoting, marketing and administering the policies and underlying funds. Nationwide may realize a profit on the payments received.
Nationwide or its affiliates receive the following types of payments:
• Underlying mutual fund 12b-1 fees, which are deducted from underlying mutual fund assets;
• Sub-transfer agent fees or fees pursuant to administrative service plans adopted by the underlying mutual fund, which may be deducted from underlying mutual fund assets; and
• Payments by an underlying mutual fund's advisor or subadvisor (or its affiliates). Such payments may be derived, in whole or in part, from the advisory fee, which is deducted from underlying mutual fund assets and is reflected in mutual fund charges.
Furthermore, Nationwide benefits from assets invested in affiliated underlying mutual funds (i.e., Nationwide Variable Insurance Trust) because these affiliates receive compensation from the underlying mutual funds for investment advisory, administrative, transfer agency, distribution, and/or other services provided. Overall, Nationwide may receive more revenue with respect to affiliated underlying mutual funds than unaffiliated underlying mutual funds.
Nationwide took into consideration the anticipated mutual fund service fee payments from the underlying mutual funds when it determined the charges imposed under the policies (apart from fees and expenses imposed by the underlying mutual funds). Without these mutual fund service fee payments, Nationwide would have imposed higher charges under the policy.
Amount of Payments Nationwide Receives
For the year ended December 31, 2016, the underlying mutual fund service fee payments Nationwide and its affiliates received from the underlying mutual funds did not exceed 0.75% (as a percentage of the average daily net assets invested in the underlying mutual funds) offered through the policy or other variable policies that Nationwide and its affiliates issued. Payments from investment advisors or subadvisors to participate in educational and/or marketing activities have not been taken into account in this percentage.
Most underlying mutual funds or their affiliates have agreed to make payments to Nationwide or its affiliates, although the applicable percentages may vary from underlying mutual fund to underlying mutual fund and some may not make any payments at all. Because the amount of the actual payments Nationwide or its affiliates receive depends on the assets of the underlying mutual funds attributable to the policy, Nationwide and its affiliates may receive higher payments from underlying mutual funds with lower percentages (but greater assets) than from underlying mutual funds that have higher percentages (but fewer assets).
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For policies owned by an employer sponsored retirement plan subject to ERISA, upon a plan trustee’s request, Nationwide will provide a best estimate of plan-specific, aggregate data regarding the amount of underlying mutual fund service fee payments Nationwide received in connection with the plan’s investments either for the previous calendar year or plan year, if the plan year is not the same as a calendar year.
Identification of Underlying Mutual Funds
Nationwide may consider several criteria when identifying the underlying mutual funds, including some or all of the following: investment objectives, investment process, investment performance, risk characteristics, investment capabilities, experience and resources, investment consistency, fund expenses, asset class coverage, the strength of the adviser’s or sub-adviser’s reputation and tenure, brand recognition, and the capability and qualification of each investment firm. Other factors Nationwide may consider during the identification process are: whether the underlying mutual fund's advisor or sub-advisor is a Nationwide affiliate; whether the underlying mutual fund or its service providers (e.g., the investment advisor or sub-advisors), or its affiliates will make mutual fund service fee payments to Nationwide or its affiliates in connection with certain administrative, marketing, and support services; or whether affiliates of the underlying mutual fund can provide marketing and distribution support for sales of the policies. For additional information on these arrangements, see Types of Payments Nationwide Receives. Nationwide reviews the funds periodically and may remove a fund or limit its availability to new contributions and/or transfers of account value if we determine that a fund no longer satisfies one or more of the selection criteria, and/or if the fund has not attracted significant allocations from policy owners.
There may be underlying mutual funds with lower fees and expenses, as well as other variable policies that offer underlying mutual funds with lower fees and expenses. Policy owners should consider all of the fees and charges of the policy in relation to its features. Higher policy fees and charges and underlying mutual fund fees and expenses have a direct effect on the policy’s investment performance.
Policy Riders and Rider Charges
Policy owners may purchase one or more of the policy’s Riders. There may be additional charges assessed for elected Riders, see In Summary: Fee Tables. The availability, operation, and benefits of the Riders may vary by the state where the policy is issued.
Rider charges are assessed starting on the Policy Date and each monthly anniversary of the Policy Date by taking deductions from the Cash Value. If a Rider is elected after the Policy Date, Rider charges will begin to be deducted on the first monthly anniversary after Nationwide approves the request unless the policy owner requests and Nationwide approves a different date.
Rider charges compensate Nationwide for the services and benefits provided, the costs and expenses incurred, and the risks assumed by Nationwide associated with offering the Riders. Nationwide may generate a profit from any of the Rider charges.
The maximum and minimum/current Rider charges are stated in the Fee Tables, see In Summary: Fee Tables.
Note: The charge and/or benefits received under certain Riders may be treated as a distribution from the policy for income tax purposes, see Periodic Withdrawals, Non-Periodic Withdrawals in Taxes, and Policy Loans.
Overloan Lapse Protection Rider
A policy owner is able to prevent the policy from Lapsing due to Indebtedness by invoking the Overloan Lapse Protection Rider, which provides a guaranteed paid-up insurance benefit. The Rider is designed to enable the policy owner of a policy with a substantially depleted Cash Value, due to Indebtedness, to potentially avoid the negative tax consequences associated with Lapsing the policy.
Note: Neither the IRS nor the courts have ruled on the tax consequences of invoking the Overloan Lapse Protection Rider. It is possible that the IRS or a court could assert that the Indebtedness should be treated as a distribution, all or a portion of which could be taxable when the Rider is invoked. Consult with a tax advisor regarding the risks associated with invoking this Rider.
Availability
All policies will automatically receive the Overloan Lapse Protection Rider (state law permitting). The Rider is dormant until specifically invoked by the policy owner, at which time a one-time charge is assessed.
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Eligibility
The policy owner is eligible to invoke the Rider upon meeting the following conditions:
• Indebtedness reaches a certain percentage of the policy's Cash Value (the percentage will range from 84% to 99% based upon the life insurance qualification test and the Insured's Attained Age);
• The Insured is Attained Age 75 or older;
• The policy is currently In Force and has been In Force for at least 15 years;
• The policy's Cash Value is at least $100,000; and
• All amounts available for partial surrender not subject to federal income tax have been taken.
The first time the policy's Indebtedness reaches the percentage that makes the policy eligible for the Rider, Nationwide will notify the policy owner of the policy's eligibility to invoke the Rider. The letter will also describe the Rider, its cost, and its guaranteed benefits. The Rider may be invoked at any time, provided that the above conditions are met.
Note: Long-Term Care Rider and the Change of Insured Rider will terminate or will need to be terminated by the policy owner prior to invoking the Overloan Lapse Protection Rider. An election to invoke the Overloan Lapse Protection Rider is irrevocable.
After Nationwide receives a request to invoke the Rider, Nationwide will adjust the policy as follows:
(1) If not already in effect, the death benefit option will be changed to Death Benefit Option 1.
(2) The Total Specified Amount will be adjusted to equal the lesser of: (1) the Total Specified Amount immediately before the Rider was invoked; or (2) the Total Specified Amount that will cause the Death Benefit to equal the Minimum Required Death Benefit immediately after the charge for the Rider is deducted. This "new" Total Specified Amount will be used to calculate the Death Benefit pursuant to The Death Benefit provision.
(3) Any non-loaned Cash Value (after deduction of the Overloan Lapse Protection Rider charge) will be transferred to the Fixed Account, where it will earn the minimum guaranteed fixed interest rate of the base policy (shown in the Policy Data Pages).
After the above adjustments are made, the Indebtedness will continue to grow at the policy's loan charged rate, and the amount in the policy loan account will continue to earn interest at the policy's loan crediting rate. No additional policy charges will be assessed. No further loans may be taken from the policy and no withdrawals may be taken from the policy (except for a full policy surrender). Cash Value may not be transferred out of the Fixed Account. The Death Benefit will be the greater of the Total Specified Amount or the Minimum Required Death Benefit. The policy will remain as described above for the duration of the policy.
Overloan Lapse Protection Rider Charge
The Overloan Lapse Protection Rider Charge is a one-time charge deducted at the time the Rider is invoked, and is assessed against the Cash Value allocated to the Sub-Accounts and the Fixed Account. The charge is intended to cover the administrative costs and to compensate Nationwide for the risks associated with the Rider's guaranteed paid-up death benefit. The charge is the product of the policy's Cash Value and an age-based factor ranging from 0.15% to 15.70% as shown in the Policy Data Pages.
If the Cash Value less Indebtedness is insufficient to satisfy the charge, the Rider cannot be invoked without repaying enough Indebtedness to cover the charge.
Invoking the Rider could reduce the amount of Proceeds payable when the Death Benefit depends on Cash Value. Additionally, any benefits paid pursuant to this Rider will reduce the Cash Surrender Value.
Change of Insured Rider
This Rider is automatically issued with the policy with no associated charge. The benefit associated with the Change of Insured Rider is that the policy owner may designate a new Insured at any time after the Policy Date, subject to insurability and the conditions below. If this Rider is invoked, the policy charges after the change will be based on the underwriting classification and characteristics of the new Insured.
The amount of insurance coverage after the change date will be the Total Specified Amount shown on the application to change the Insured provided that (1) the policy continues to qualify as life insurance under the Code, and (2) such Total Specified Amount equals or exceeds the minimum Total Specified Amount shown on the Policy Data Pages. Coverage of
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the new Insured will become effective on the change date. Coverage of the previous Insured will terminate on the day before the change date. The change date is the first monthly anniversary on or next following the date the change of Insured conditions are met. The Policy Date will not change.
Change of Insured conditions:
(1) At the time of the change, the new Insured must have the same business relationship to the policy owner as did the previous Insured.
(2) The new Insured may be required to submit satisfactory evidence of insurability.
(3) The new Insured must satisfy Nationwide’s underwriting requirements.
(4) The policy must be In Force and not be in a Grace Period at the time of the change.
(5) The new Insured must have been at least age 18 on the Policy Date.
(6) The policy owner must make written application to change the Insured to the Service Center.
Federal income tax consequences may result from a change in insured. For federal income tax purposes the substitution of a new insured is treated as an exchange of the policy for another life insurance policy. Because the new insured is not the same as the insured that was substituted, the tax free treatment for policy exchanges under Code Section 1035 may not be available because the requirement that the insured under the policy relate to the same individual would not be met; consequently, the excess Cash Surrender Value over the investment in the policy would be taxable as ordinary income. The foregoing is not comprehensive and cannot replace personalized advice provided by a competent tax professional. The policy owner should seek competent tax advice regarding the tax treatment of the policy when contemplating a change of insured.
Change of Insured Rider Charge
There is no charge associated with the Change of Insured Rider.
Supplemental Insurance Rider
The benefit associated with the Supplemental Insurance Rider is term life insurance on the Insured that is: (1) in addition to the Base Policy Specified Amount; (2) payable upon the Insured's death; and (3) automatically renewed annually until the Insured reaches Attained Age 100. This Rider and all coverage associated with it terminates when the Insured reaches Attained Age 100, regardless whether coverage under the policy is extended beyond the Maturity Date, see Policy Maturity. Additionally, electing coverage under the Supplemental Insurance Rider will result in a lower Enhancement Benefit, if any.
Subject to Nationwide’s approval, the policy owner may purchase this Rider at the time of application or at a later time provided that the policy is In Force and the Rider is purchased before the Insured reaches Attained Age 100. If the policy owner purchases this Rider at the time of application, the effective date of the Rider is the Policy Date. If the Rider is purchased after the Policy Date, the effective date will be the monthly anniversary of the Policy Date on or next following the date Nationwide approves the policy owner’s written request, unless the policy owner specifies and Nationwide approves a different date.
The Rider Specified Amount is the amount of insurance coverage provided by the Supplemental Insurance Rider. The Rider Specified Amount and the Base Policy Specified Amount are combined to equal the Total Specified Amount. While the Rider is In Force, the Base Policy Specified Amount must be at least 10% of the minimum Total Specified Amount.
The Rider Death Benefit may vary monthly and is based on the chosen death benefit option in effect for the base policy, see Supplemental Insurance Rider Death Benefit Calculation. Because Nationwide deducts the Rider charge from the Cash Value, purchase of this Rider could reduce the amount of the Death Benefit when the Death Benefit depends on Cash Value.
Monthly Rider charges are different from, and in addition to, the charges assessed under the base policy. The charges associated with the Supplemental Insurance Rider are:
• Supplemental Insurance Rider Cost of Insurance Charge; and
• Supplemental Insurance Rider Specified Amount Charge.
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Supplemental Insurance Rider Cost of Insurance Charge
The Supplemental Insurance Rider Cost of Insurance Charge is deducted proportionally from the Sub-Account and Fixed Account allocations on the Policy Date and each monthly anniversary of the Policy Date. The charge is intended to compensate Nationwide for providing term life insurance on the Insured. The Net Amount At Risk for the Supplemental Insurance Rider is equal to the Rider's Death Benefit (described below). The charge is determined by multiplying the Rider's Death Benefit by the Rider’s cost of insurance rate. Nationwide bases the Supplemental Insurance Rider Cost of Insurance rate on its expectations as to future experience for factors such as mortality, persistency, expenses, and taxes. The Supplemental Insurance Rider Cost of insurance rate will vary by the Insured's Attained Age, sex (if not unisex classified), tobacco use, Substandard Ratings, underwriting class and the number of years from the Policy Date. The Rider Cost of Insurance Charge may include a Flat Extra Charge for certain Substandard Ratings, see Cost of Insurance.
Supplemental Insurance Rider Specified Amount Charge
The Supplemental Insurance Rider Specified Amount Charge is deducted proportionally from the Sub-Account and Fixed Account allocations on the Policy Date and each monthly anniversary of the Policy Date. The charge is intended to compensate Nationwide for sales, underwriting, distribution, and issuance of the Rider. The charge applicable to the policy depends on the Total Specified Amount and the allocation of the Total Specified Amount between Base Policy Specified Amount and Rider Specified Amount. The charge is determined using a weighted average (i.e., a blend that uses the relative proportions of the Base and Rider Specified Amounts) of the base and Rider charges.
The maximum guaranteed monthly Supplemental Insurance Rider Specified Amount Charge is $0.40 per $1,000 of Rider Specified Amount (unless the policy is purchased in the state of New York, where the maximum guaranteed monthly Supplemental Insurance Rider Specified Amount Charge is $0.085 per $1,000 of Rider Specified Amount). To determine Total Specified Amount charges, add the amount of the Base Policy Specified Amount charge to the Rider Specified Amount charge. Total charges are a weighted average of the amount of Base Policy Specified Amount and Rider Specified Amount elected. The end result is a charge blending.
Policy Charge Blending
When the Supplemental Insurance Rider is elected, the Rider's charges are blended with the base policy's charges. "Blending" means that the charge associated with the Base Policy Specified Amount and the Rider Specified Amount are multiplied by their respective percentage allocation and then added. For example, if 80% is allocated to Base Policy Specified Amount and 20% to Rider Specified Amount, the total charges are determined by multiplying the charges under the Base Policy Specified Amount by 80% and independently multiplying the charges under the Rider Specified Amount charge by 20% and then adding the result of these two calculations to determine total policy charges.
In most instances, policy charges are lower if the policy owner allocates as much coverage percentage as possible to the Rider. Rider charges generally are lower than base policy charges because the Rider is term insurance; however, in some years and/or at some Attained Ages, the cost of insurance charge for the Rider is higher than the cost of insurance for the base policy. Generally, however, the greater the allocation of the Total Specified Amount to the Rider, the lower the overall charges will be under the policy, see Appendix D: Examples of Policy Charge Blending.
A registered representative can answer any questions and provide illustrations demonstrating the impact of purchasing coverage under the Rider.
Before deciding whether to purchase the Supplemental Insurance Rider it is important to know that when the Rider is purchased, the compensation received by the registered representative and his or her firm is less than when compared to purchasing insurance coverage under the base policy. As a result of this compensation reduction, the charges assessed for the cost of insurance under this Rider will be lower for a significant period of time. There are instances where the Supplemental Insurance Rider may require lower Premium to maintain the total Death Benefit over the life of the policy or may require increased Premium when compared to not purchasing the Rider at all.
Rider Specified Amount Increases and Decreases
All increases and decreases of Rider Specified Amount, including decreases due to partial surrenders, are done proportionally between the amounts allocated to Base Policy Specified Amount and Rider Specified Amount.
If the policy owner purchases this Rider and increases the Total Specified Amount then the overall monthly charges associated with the policy will increase, even if the Base Policy Specified Amount is not increased. If, however, the policy owner purchases this Rider and does not increase the Total Specified Amount and instead reduces the Base Policy Specified Amount by an off-setting amount of Rider Specified Amount, then electing the Supplemental Insurance Rider may potentially reduce the overall monthly charges associated with the policy.
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Supplemental Insurance Rider Death Benefit Calculation
The death benefit option chosen for the base policy will also be the death benefit option for the Rider and used in the calculation of the Rider Death Benefit. The current death benefit option in effect is shown on the Policy Data Page.
The Supplemental Insurance Rider Death Benefit is calculated as follows:
(1) the total Net Amount At Risk for the policy and this Rider; multiplied by
(2) the Rider Specified Amount; divided by
(3) the Total Specified Amount.
Depending on the policy’s Cash Value, the Rider Death Benefit may be less than the Rider Specified Amount.
The Rider Death Benefit is then added to the base policy’s Death Benefit to determine the total Death Benefit.
The base policy's Death Benefit is calculated using the formula below:
[CV + (Total NAAR)] x [(Base Policy Specified Amount)/ (Total Specified Amount)]
Where:
CV is the Cash Value of the policy; and
Total NAAR is the total Net Amount At Risk, which is the Death Benefit minus the Cash Value.
The formula above determines the portion of the Death Benefit applied to the base policy by determining the ratio the Base Policy Specified Amount bears to the Total Specified Amount.
Terminating the Rider
This Rider can be terminated by submitting a written request to the Service Center. Nationwide may require that the policy be submitted for endorsement. Terminating this Rider will likely result in increased policy charges because of the difference in policy charges for the base policy and this Rider. If the Rider is terminated, the calculation of the Death Benefit will apply exclusively to the base policy. Termination may require that the amount of Death Benefit coverage provided by the base policy be increased to maintain the qualification of the policy as life insurance under the Code.
This Rider also terminates upon the earliest of the following dates:
• the date the policy is surrendered or terminated;
• the date the policy Lapses;
• the Insured's death; or
• the date the Insured reaches Attained Age 100.
Nationwide may deny any request to terminate this Rider that would disqualify the policy as a contract of life insurance under the Code. If the policy is not issued as a modified endowment contract, terminating this Rider may result in the policy becoming a modified endowment contract. Nationwide will notify the policy owner if the policy's status is in jeopardy.
There is no Cash Value attributable to this Rider. Therefore, there is no Cash Surrender Value available upon termination.
In most instances, terminating the Rider will not be to the policy owner’s advantage. Consult with a registered representative or a qualified financial advisor before deciding to terminate coverage under this Rider.
Long-Term Care Rider
The Long-Term Care Rider is only available for election on policies that are In Force as of February 13, 2017. The benefit associated with the Long-Term Care Rider is that, upon the Insured meeting certain eligibility requirements, the policy owner is paid a monthly benefit to assist with the expenses associated with Qualified Long-Term Care Services, which include, but are not limited to, long-term care facility stay(s), home health care services, and adult day care services. Benefit payments represent an advance of a portion of the Base Policy Specified Amount (Total Specified Amount if the Supplemental Insurance Rider is elected and In Force) which will ultimately reduce the Cash Surrender Value and Death Benefit. In addition, if the remaining Death Benefit is less than 10% of the initial Total Specified Amount when the Insured dies and the policy is In Force, a residual Death Benefit of 10% of the initial Total Specified Amount minus any Indebtedness and partial surrenders will be paid. The Long-Term Care Rider has no Cash Surrender Value and no loan values.
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The maximum monthly benefit, which is determined by Nationwide at the time a request for benefits under the terms of the Rider is submitted, will be the lesser of:
(1) 2% of Long-Term Care Specified Amount in effect;
(2) Two times the per diem amount allowed by the Health Insurance Portability and Accountability Act times thirty (30); or
(3) 1/12 of the maximum lifetime benefit.
The maximum lifetime benefit under any combination of Qualified Long-Term Care Services is equal to the lesser of the Long-Term Care Specified Amount or the initial Total Specified Amount minus Indebtedness and partial surrenders.
A policy owner may request to receive a monthly benefit less than the maximum subject to a minimum monthly benefit. Choosing a lesser amount could extend the length of the benefit period of the Long-Term Care Rider.
The Long-Term Care Specified Amount, elected at issue, represents the maximum accumulation of long-term care benefits available under the Long-Term Care Rider. This amount must be at least 10% of the Base Policy Specified Amount (Total Specified Amount if the Supplemental Insurance Rider is elected and In Force) and no more than the Total Specified Amount.
State regulation of long-term care benefits will result in differences in this Rider's name, covered services, criteria for eligibility of benefit payment, cost of insurance charge factors, maximum and minimum monthly and lifetime benefit amounts, and availability of the 10% residual Death Benefit. State variations are subject to change without notice at any time. Contact the Service Center to obtain a copy of the Long-Term Care Rider applicable to the policy.
Availability
Subject to Nationwide's underwriting approval, the Long-Term Care Rider may be purchased at any time while the policy is In Force. If purchased after the Policy Date, Nationwide will require new evidence of insurability. Underwriting and approval of the Long-Term Care Rider is separate and distinct from underwriting and approval of the policy and Supplemental Insurance Rider. Therefore, it is possible that the underwriting risk class for the Long-Term Care Rider could differ from the policy and Supplemental Insurance Rider or that an applicant could qualify for the policy and Supplemental Insurance Rider and still be declined for the Long-Term Care Rider.
There is a free look period associated with this Rider. Within 30 days of receipt of the Rider, the policy owner may return it to the sales representative who sold it, or to the Service Center. The Rider will be void and related charges will be refunded to the policy owner, see Right to Cancel (Examination Right). The Long-Term Care Rider is guaranteed renewable.
Invoking the Rider
To invoke this Rider, the Insured must be: (1) severely cognitively impaired or (2) unable to do at least two of the following activities of daily living: bathing, continence, dressing, eating, using the toilet facilities, or transferring (moving into or out of bed, chair, or wheelchair).
In addition, a 90-day waiting period, referred to as an "elimination period," must be satisfied before benefits are paid. Benefits will not be retrospectively paid for the elimination period. The elimination period can be satisfied by any combination of Qualified Long-Term Care Services. These Qualified Long-Term Care Services need not be continuous, but must be accumulated within a continuous period of 730 days. The elimination period has to be satisfied only once while the Rider is in effect. The benefit associated with the Rider may not cover all prospective long-term care costs. The benefits paid in association with the Rider are intended to be "qualified long-term care insurance" under federal tax law, and generally will not be taxable to the policy owner, see Taxes. See a tax advisor about the use of this Rider.
Terminating the Rider
This Rider will terminate when the maximum lifetime benefit under the Rider has been paid, the policy matures, the Insured dies, the Overloan Lapse Protection Rider is invoked, the Rider is terminated by written request to the Service Center, or the policy is terminated.
Even if the Rider is terminated, benefits will still be payable if: (1) the Qualified Long-Term Care Services are received in a licensed facility; (2) eligibility for such benefits began while the Rider was in force; and (3) eligibility for such benefits continue without interruption after termination of the Rider. Unless the Rider is reinstated, such extension of benefits may be limited to the duration of the benefit period or to payment of the maximum lifetime Long-Term Care Rider benefit amount and may be subject to all other applicable provisions of the policy and Rider.
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The Rider may be reinstated if the policy lapses while the Insured would otherwise meet the criteria set forth in the Eligibility for the Payment of Benefits provision if the Insured provides a written request within five (5) months from the date of termination, and certain other conditions are met, including payment sufficient to keep the policy and all attached riders In Force for a minimum of three (3) months.
Long-Term Care Rider Charge
A monthly Long-Term Care Rider charge is deducted if this Rider is elected. The Long-Term Care Rider charge compensates Nationwide for providing long-term care benefits upon the Insured meeting certain eligibility requirements. The Rider charge is the product of the Long-Term Care Specified Amount, a Long-Term Care Rider charge rate, and a factor based on the Long-Term Care Rider rate class multiple stated in the Policy Data Pages. The Long-Term Care Rider charge rate is based on Nationwide's expectations as to the Insured's potential need for long-term care over time and will vary by the Insured's sex (if not unisex classified), Issue Age, rate class, rate type, and Long-Term Care Rider effective date.
The Long-Term Care Rider charge will be deducted proportionally from the Sub-Accounts and fixed investment options allocations. Because the Long-Term Care Rider charge is deducted from the Cash Value, electing this Rider could reduce the amount of proceeds payable when the Death Benefit depends on Cash Value. Additionally, any benefits paid pursuant to this Rider will reduce the Cash Surrender Value and Death Benefit.
Note: Upon meeting the requirements for benefits under this Rider, the Long-Term Care Rider charge will be waived for the duration of the Rider benefit payment period; however, all other monthly deductions will continue to be charged. Additionally, loans or partial surrenders will not be permitted while receiving benefits under the Rider. If the policy's Cash Value minus Indebtedness is insufficient to cover all other monthly deductions while benefits are being received under the Rider, the policy will not lapse and monthly deductions will be waived while the Rider benefit is being paid. This includes monthly deductions for other In Force Riders. Premium requirements for any death benefit guarantee feature of the policy or any elected Rider are not waived. Once the Insured is no longer receiving benefits associated with the Long-Term Care Rider, additional Premium may be necessary to prevent the policy from Lapsing. As a protection against unintentional lapse, the Rider provides the right to designate at least one other person as an authorized representative who will receive the notice of lapse or termination of the policy for nonpayment of Premium, in addition to the policy owner.
Limitations
While receiving Rider benefits, the following are not permitted: loans, partial Surrenders, Specified Amount changes, changes in underwriting classification, rider additions, or changes in the death benefit option. Upon receiving Rider benefits, a long-term care benefit payout account will be created and a monthly report will be provided to the policy owner.
The Rider does not cover any expense which results from suicide, felonies, alcoholism or drug addiction, or war. Nor does the Rider cover expenses which result from preexisting conditions that are not disclosed in the application if the need for services begins during the first six months after the Long Term Care Rider effective date.
Incontestability
Nationwide will not contest payment under the Rider if the Rider has been In Force for less than six months unless the Insured makes a misrepresentation that is material to the acceptance of the Insured for coverage. Nationwide will not contest payment under the Rider if the Rider has been In Force for at least six months, but less than two years, unless the Insured makes a misrepresentation that is both material to the acceptance of coverage and pertains to the condition for which benefits are sought. Nationwide will not contest payment under the Rider after the Rider has been In Force for two years unless the Insured knowingly and intentionally misrepresented relevant facts relating to their health. A separate contestability period will apply for any increase of the Long-Term Care Specified Amount that was subject to evidence of insurability.
Claims
Written notice of a claim must be given within thirty (30) days after the Insured begins receiving Qualified Long-Term Care Services. Written proof of claim, consisting of detailed documentation that describes and confirms the Insured is chronically ill and is receiving Qualified Long-Term Care Services, must be given within ninety (90) days. If Nationwide determines that a benefit trigger has not been met, it will follow internal and external review processes consistent with applicable laws and regulations in the State of Issue. The policy owner must give immediate notice when the receipt of Qualified Long-Term Care Services has ceased or is no longer required. Nationwide, at its own expense, has the right to have the Insured examined as often as it may reasonably require while the Insured is receiving Qualified Long-Term Care Services.
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Policy Owner Services
Nationwide® Guided Portfolio Strategies
The Nationwide Guided Portfolio Strategies (GPS) are static allocation strategies comprised of two or more underlying mutual funds that together provide a unique allocation mix not available as a single underlying mutual fund. Policy owners that elect a GPS directly own Sub-Account units of the underlying mutual funds that comprise the particular portfolio elected. In other words, a GPS is not a portfolio of underlying mutual funds with one Accumulation Unit value, but rather, direct investment in certain Sub-Accounts based upon a preset allocation. There is no additional charge associated with choosing a GPS.
GPS portfolios are available under the policy at the time of application and can be added after the Policy Date by contacting the Service Center. The policy owner may elect only one GPS portfolio and the total allocation to that portfolio must equal 100%.
A GPS is a static portfolio strategy. In other words, the allocations or "split" between the underlying Sub-Accounts is not monitored or adjusted to reflect changing market conditions. As such, Nationwide will not automatically rebalance Cash Value allocated to a GPS portfolio to ensure that the assets remain allocated to the underlying Sub-Accounts in the same proportion that they were allocated at the time of election. Further, Nationwide will not automatically rebalance, or otherwise modify the policy owner's allocations to the underlying Sub-Accounts to reflect changes in the GPS portfolio split or changes in available Sub-Accounts subsequent to the policy owner's original GPS election.
Nationwide is not providing investment advice by providing GPS. The policy owner may elect to transfer out among the Sub-Accounts at any time subject to the terms of this prospectus. For additional information about the Sub-Accounts that comprise a GPS, see Appendix A: Sub-Account Information.
Policy Loans
After the expiration of the free look period and while the policy is In Force, a policy owner may take a policy loan. A policy loan will be effective as of the date Nationwide receives the policy owner's written request at the Service Center. Nationwide reserves the right to require written requests to be submitted on current Nationwide forms.
Taking a policy loan may increase the risk of Lapse and may result in adverse tax consequences. Unpaid loan interest charges accrue daily at a compounded annual interest rate and can cause the policy's Indebtedness to grow significantly. The policy owner should request an illustration demonstrating the impact of a policy loan on the policy's Cash Value, Cash Surrender Value, and Death Benefit Proceeds.
Loan Amount
The minimum loan amount is $500. At the time of a loan request, policy Indebtedness cannot exceed 90% of the Cash Value (i.e., the sum of existing Indebtedness and the loan request cannot exceed 90% of the Cash Value as of the loan date). Any applicable Enhancement Benefit is not available to be taken as a policy loan. Nationwide pays the policy loan to the policy owner with assets from its general account. Nationwide then uses the policy's Cash Value as collateral for the loan as described below.
Collateral and the Policy Loan Account
As collateral for the policy loan, Nationwide transfers an amount equal to the policy loan from the policy's investment options. Collateral amounts are transferred from the Cash Value to the policy loan account (which is part of Nationwide's general account). Because the policy loan account does not participate in the Investment Experience of the Sub-Accounts, policy loans can permanently affect the Death Benefit Proceeds and the Cash Value of the policy, even if repaid. The policy loan account may be subject to Nationwide's creditors in the event of insolvency.
Amounts transferred from the policy's Cash Value equal to the policy loan account are deducted from the Sub-Accounts in the same proportion as the Sub-Account allocations, unless the policy owner has instructed otherwise. Nationwide will only transfer amounts from the Fixed Account if the loan amount exceeds 90% of the Cash Value allocated to the Sub-Accounts.
The policy owner will earn interest on the collateral held in the policy loan account. Interest will accrue daily at no less than the guaranteed minimum rate stated on the Policy Data Pages. The interest earned on the policy loan account may be different than the rate earned on Cash Value allocated to the Fixed Account.
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Interest Charged
Nationwide charges interest against policy Indebtedness. Indebtedness is the total amount of all outstanding policy loans, including principal and compounded interest due. The maximum interest rate Nationwide may charge against Indebtedness is 3.50% per annum, see In Summary: Fee Tables for current interest charged rates. Rates may change and may vary by policy year. Currently, the effective annual interest rate charged on Indebtedness is 2.80% for the first ten policy years and 2.00% thereafter. Policy loan interest charges may provide revenue for risk charges and profit.
If policy loan interest is not paid when due, policy Indebtedness will continue to compound at the interest rate in effect, see When Interest is Charged and Credited below. If not paid when due, Nationwide will deduct an amount equal to the unpaid interest from the policy's Cash Value and add it to the policy loan account causing the original policy loan amount (now, "Indebtedness") to increase by the amount of the unpaid interest charged. Amounts transferred from the policy's investment options as unpaid interest charges will be deducted from the Sub-Accounts and the Fixed Account in the same manner as a new loan.
Note: Over time, unpaid loan interest charges can cause the policy's Indebtedness to be significant. In some cases, policy Indebtedness may be significant enough to cause the policy to Lapse. In general, it is advantageous to repay Indebtedness and at a minimum, the interest charged on Indebtedness, at least annually.
Indebtedness is considered a part of the policy's Cash Value, therefore, upon a full surrender, Lapse, or maturity, the amount received in the original loan request(s), plus unpaid loan interest charged is considered "received" under the Code and may result in adverse tax consequences, see Surrender, Lapse, Maturity in Taxes.
When Interest is Charged and Credited
Interest charged against Indebtedness accrues daily. Interest earned on collateral also accrues daily. Nationwide will deduct interest charged on Indebtedness from the policy's Cash Value, and credit interest earned on collateral to the Cash Value:
• Annually, at the end of a policy year;
• At the time a new loan is requested;
• When a loan repayment is made;
• Upon the Insured's death;
• Upon policy Lapse and/or;
• Upon a full surrender of the policy.
In most cases, the interest earned on collateral and credited to the Cash Value will be less and in some cases, significantly less, than the interest charged against the Cash Value.
Repayment
The policy owner may repay all or part of policy Indebtedness at any time while the policy is In Force. The minimum loan repayment amount, if any, is stated in the policy. The policy owner should contact the Service Center to obtain loan pay-off amounts.
Note: Interest earned on collateral is not deducted from Indebtedness to calculate loan pay off amounts. If a loan repayment is made, the policy owner's Cash Value is credited with interest earned on collateral and the amount of the loan repayment is deducted from the policy's Indebtedness.
Nationwide will treat any payments made as Premium payments, unless the policy owner specifies that the payment should be applied against the policy's Indebtedness. It may be beneficial for the policy owner to repay Indebtedness before making additional Premium payments because Premium Load charges are deducted from Premium payments but not from loan repayments.
If the policy owner makes a loan repayment, it will be applied to the Sub-Accounts and the Fixed Account in accordance with the allocation instructions in effect at the time the payment is received, unless the policy owner indicates otherwise.
Repaying Indebtedness will cause the Death Benefit and net Cash Surrender Value to increase accordingly.
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Lapse
The policy is at risk of Lapsing when the Cash Surrender Value is insufficient to cover the policy’s monthly deductions, see Unfavorable Investment Experience. Before any policy Lapse, there is a Grace Period during which the policy owner can take action to prevent the Lapse. Subject to certain conditions, the policy owner may reinstate a policy that has Lapsed.
Grace Period
If the Cash Surrender Value on any monthly anniversary date is not sufficient to cover the current monthly deductions, then a Grace Period will begin. At the beginning of a Grace Period, the policy owner will receive a notice from Nationwide that will indicate the amount of Premium that must be paid to avoid Lapsing the policy. This amount is equal to four times the current monthly deductions. If not paid within 61 days, the policy and all Riders will Lapse.
The Grace Period will not alter the operation of the policy or the payment of Proceeds.
Reinstatement
The policy owner may reinstate a Lapsed policy by:
• submitting a written request to reinstate the policy to the Service Center any time within three years after the end of the Grace Period (or longer if required by state law) and before the Maturity Date;
• providing satisfactory evidence of insurability that Nationwide may require;
• paying sufficient Premium to keep the policy In Force for three months (or less if required by state law) from the date of reinstatement;
• paying sufficient Premium to cover all policy charges that were due and unpaid during the Grace Period; and
• repaying or reinstating any Indebtedness that existed at the end of the Grace Period.
The policy owner may also reinstate coverage under certain Riders subject to satisfactory evidence of insurability and any reinstatement requirements contained in the Riders.
After Nationwide approves the application for reinstatement and receives the required Premium, the effective date of a reinstated policy, including any reinstated Riders, will be the coinciding or next monthly anniversary of the Policy Date.
If the policy is reinstated, the Cash Value on the date of reinstatement will be set equal to the Cash Value at the end of the most recent Grace Period. Nationwide will add any Premiums or loan repayments that were made to reinstate the policy to the Cash Value.
The Sub-Account allocations that were in effect at the start of the Grace Period will be reinstated, unless the policy owner indicates otherwise.
Surrenders
Full Surrender
The policy may be surrendered for the Cash Surrender Value at any time while it is In Force. A surrender will be effective as of the date Nationwide receives the policy owner’s written surrender request at the Service Center. Nationwide reserves the right to require written requests to be submitted on current Nationwide forms. Nationwide may require the policy owner to return the policy. Nationwide may also postpone payment of that portion of the Cash Surrender Value attributable to the Fixed Account for up to six months. No Enhancement Benefit will be paid if the policy is surrendered pursuant to Section 1035 of the Code.
Partial Surrender
The policy owner may request a partial surrender of the policy's Cash Surrender Value at any time after the policy has been In Force for one year. Nationwide may require that the policy be sent to the Service Center for endorsement.
Nationwide may limit the number of partial surrenders to one per policy year. Currently, the number of partial surrenders is not limited. Nationwide will notify the policy owner in writing if the number of partial surrenders permitted become subject to limits. The minimum amount of any partial surrender request is $500. The maximum amount of a partial Surrender in any given policy year is equal to (a) minus (b) minus (c) where:
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(a) is Cash Value;
(b) is Indebtedness; and
(c) is the greater of $500 or the last three monthly deductions.
Any applicable Enhancement Benefit is not available to be taken as a partial surrender.
If the policy owner requests a partial surrender, Nationwide will surrender Accumulation Units from the Sub-Accounts proportionally based on the current variable account Cash Value to equal the amount of the partial surrender. If there are insufficient Accumulation Units available, Nationwide will surrender amounts from the Fixed Account.
A partial surrender cannot result in the Total Specified Amount being reduced below the minimum Total Specified Amount indicated on the Policy Data Page or disqualifying the policy as life insurance under Section 7702 of the Code. Partial surrenders may be subject to income tax penalties. They could also cause the policy to become a "modified endowment contract" under the Code, which could change the income tax treatment of any distribution from the policy.
Reduction of the Base Policy Specified Amount due to a Partial Surrender
When a partial surrender is taken, the Base Policy Specified Amount will be reduced by the amount necessary to prevent an increase in the Net Amount At Risk (unless the partial surrender is a preferred partial surrender). The Base Policy Specified Amount reduction will not exceed the partial surrender amount. The policy's charges going forward will be based on the new Base Policy Specified Amount.
Any reduction of the Base Policy Specified Amount will be made in the following order: against the most recent increase in the Base Policy Specified Amount, then against the next most recent increases in the Base Policy Specified Amount in succession, and finally, against the initial Base Policy Specified Amount.
Preferred Partial Surrenders
A preferred partial surrender is a surrender that:
• occurs before the 15th policy anniversary; and
• when added to any prior preferred partial surrenders taken in the same policy year, does not exceed 10% of the Cash Value as of the beginning of the policy year.
Preferred partial surrenders do not result in a reduction of the Total Specified Amount. The Total Specified Amount will only be reduced if the total partial surrender is greater than the amount that qualifies as a preferred partial surrender. If the total partial surrender exceeds the amount that qualifies as a preferred partial surrender, then the Total Specified Amount will be reduced only by the difference between the total partial surrender and the preferred partial surrender.
Preferred partial surrenders are non-cumulative. This means that any part of a preferred partial surrender not taken in a given policy year, cannot be added to the available preferred partial surrender amount in any later years.
The Death Benefit
Calculation of the Death Benefit
The Death Benefit will be calculated when Nationwide has received (at the Service Center) all information required to process the claim for Death Benefit Proceeds, including, but not limited to, proof that the Insured has died and any other information Nationwide may reasonably require. The Death Benefit may be subject to an adjustment if an error or misstatement was made upon application, or if the Insured dies by suicide.
The Death Benefit will depend on the death benefit option elected, certain Riders, and the tax test elected as discussed in greater detail below. The Death Benefit may vary with the Cash Value of the policy, which is affected by Investment Experience, Indebtedness, and any due and unpaid monthly deductions that accrued during a Grace Period.
The Proceeds payable upon the death of the Insured are equal to the Death Benefit reduced by policy Indebtedness and unpaid charges and increased by any insurance provided by Riders. Also, policies to which an "Enhancement Benefit" is available as of the time the Proceeds become payable may receive an additional payment, see Enhancement Benefit.
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Death Benefit Options
Policy owners have a choice of one of three available death benefit options under the policy. If a death benefit option is not selected, Nationwide will issue the policy with Death Benefit Option 1. Not all death benefit options are available in all states.
Death Benefit Option 1
The Death Benefit is the greater of the Total Specified Amount or the Minimum Required Death Benefit on the Insured's date of death. Death Benefit Option 1 provides a stated amount of Death Benefit coverage that generally remains static throughout the life of the policy. Typically, Death Benefit Option 1 is elected by policy owners who are interested in maintaining a pre-determined amount of life insurance coverage.
Death Benefit Option 2
The Death Benefit is the greater of the Total Specified Amount plus the Enhanced Cash Value as of the Insured's date of death, or the Minimum Required Death Benefit on the Insured's date of death. Death Benefit Option 2 provides a stated amount of Death Benefit coverage in addition to the policy's Cash Value. Typically, Death Benefit Option 2 is elected by policy owners who are interested in accumulation of Cash Value in addition to a pre-determined amount of life insurance coverage.
Death Benefit Option 3
The Death Benefit is the greater of the Total Specified Amount plus the accumulated premium account (which consists of all Premium payments, plus interest, minus all partial surrenders as of the Insured's date of death, subject to applicable maximums), or the Minimum Required Death Benefit on the Insured's date of death. Death Benefit Option 3 provides a stated amount of Death Benefit coverage plus a return of accumulated Premium and potential interest. Typically, Death Benefit Option 3 is elected by policy owners who are interested in a policy that provides a pre-determined amount of life insurance coverage, while also providing a return of Premium. The return of Premium component may be advantageous to corporate policy owners who have a need to off-set or account for a corporate liability.
In deciding which death benefit option to elect, the policy owner should consult with a registered representative about the costs and advantages and/or disadvantages of each option. Additionally, the policy owner should request and review policy illustrations representing each option. For policies in which an Enhancement Benefit is available at the time the Death Benefit Proceeds become payable, an additional benefit may be paid, see Enhancement Benefit.
Changes in the Death Benefit Option
After the first policy year, a policy owner may elect to change the death benefit option from either Death Benefit Option 1 to Death Benefit Option 2, or from Death Benefit Option 2 to Death Benefit Option 1. A policy owner may not change to Death Benefit Option 3. However, a policy owner may change from Death Benefit Option 3 to Death Benefit Option 1 or Death Benefit Option 2. Nationwide will permit only one change of death benefit option per policy year. The effective date of a change will be the monthly anniversary of the Policy Date following the date Nationwide approves the change.
For any change in the death benefit option to become effective, the Cash Surrender Value must be sufficient to keep the policy In Force for at least three months after the change.
Upon effecting a death benefit option change, the Total Specified Amount may be changed (either increased or decreased) so that the Net Amount At Risk is the same before the change and after the change on the date of the change. Because the policy's Net Amount At Risk remains the same before and after the change, changing the death benefit option and preserving the Net Amount At Risk by itself does not alter the policy charges. The policy charges going forward will be based on the adjusted Total Specified Amount. Depending on changes in factors such as fluctuations in the policy's Cash Value, these charges may increase or decrease after the death benefit option change.
The policy owner should request an illustration demonstrating the impact of a change in the policy's death benefit option.
Nationwide will refuse a death benefit option change that would reduce the Total Specified Amount to a level where the Premium already paid would exceed any premium limitations under the Code.
The Minimum Required Death Benefit
The policy has a Minimum Required Death Benefit. The Minimum Required Death Benefit is the lowest Death Benefit that will qualify the policy as life insurance under Section 7702 of the Code.
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The tax tests for life insurance generally require that the policy have a significant element of life insurance and not be primarily an investment vehicle. At the time the policy is issued, the policy owner irrevocably elects one of the following tests to qualify the policy as life insurance under Section 7702 of the Code:
• the cash value accumulation test; or
• the guideline premium/cash value corridor test.
If a specific test is not elected, Nationwide will issue the policy with the cash value accumulation test.
Cash Value Accumulation Test
The cash value accumulation test determines the Minimum Required Death Benefit by multiplying the Enhanced Cash Value by a percentage calculated as described in the Code. The percentages depend upon the Insured's age, sex (if not unisex classified), and underwriting classification. Under the cash value accumulation test, there is no limit to the amount that may be paid in Premiums as long as there is sufficient Death Benefit in relation to the Cash Value at all times.
Guideline Premium/Cash Value Corridor Test
The guideline premium/cash value corridor test determines the Minimum Required Death Benefit by comparing the Death Benefit to an applicable percentage of the Enhanced Cash Value. These percentages are set out in the Code, but the percentage varies only by the Attained Age of the Insured.
In deciding which test to elect for the policy, consider the following:
• The cash value accumulation test generally allows flexibility to pay more Premium, subject to Nationwide's approval of any increase in the policy's Net Amount At Risk that would result from higher Premium payments. Premium payments under the guideline premium/cash value corridor test are limited by Section 7702 of the Code.
• Generally, the guideline premium/cash value corridor test produces a higher Death Benefit in the early years of the policy while the cash value accumulation test produces a higher Death Benefit in the policy's later years.
• Monthly cost of insurance charges that vary with the amount of the Death Benefit may be greater during the years when the elected test produces a higher Death Benefit.
Regardless of which test is elected, Nationwide will monitor compliance to ensure that the policy meets the statutory definition of life insurance under the Code. As a result, the Proceeds payable under a policy should be excludable from gross income of the beneficiary for federal income tax purposes. Nationwide may refuse additional Premium payments or return Premium payments so that the policy continues to meet the Code's definition of life insurance. Consult a qualified tax advisor on all tax matters involving the policy.
Maximum Death Benefit
Nationwide may limit the Death Benefit to the maximum shown on the Policy Data Page. The maximum Death Benefit represents the highest amount Nationwide will pay under the policy. Nationwide limits the Death Benefit in situations where it is unable or unwilling to accept any additional liability for providing insurance coverage under the policy. Currently, for Death Benefit Options 1 and 2, the Maximum Death Benefit is equal to the sum of the Cash Value and the lesser of (i) 200% of the Total Specified Amount on the Policy Date and (ii) $8,000,000. For Death Benefit Option 3, the maximum Death Benefit is equal to the lesser of (i) 200% of the Total Specified Amount on the Policy Date plus the lesser of (a) the Death Benefit Option 3 maximum increase and (b) the accumulated premium account; and (ii) the sum of the Cash Value and $8,000,000.00.
For each Valuation Period and upon the death of the Insured, Nationwide will determine whether the policy's Cash Value would cause the Death Benefit to be greater than the Maximum Death Benefit. If the Death Benefit would exceed the Maximum Death Benefit, a partial surrender will be processed from the policy so that the Death Benefit after the partial surrender is 90% of the Maximum Death Benefit. The partial surrender will subsequently reduce the Cash Value and Total Specified Amount. If the Supplemental Insurance Rider was elected, the Rider Specified Amount and the Base Policy Specified Amount will be proportionally reduced. A partial surrender of this nature will ultimately reduce total policy charges because of the decreased Total Specified Amount (decreased coverage results in lower charges).
If the policy owner elected Death Benefit Option 3 and the accumulated premium account is greater than the Cash Value, Nationwide may reduce the amount previously credited to the accumulated premium account to an amount equal to 90% of the Cash Value immediately before the reduction. For example, if the Cash Value is $100 and the accumulated
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premium account is $102, Nationwide would reduce the accumulated premium account by $12 to $90 (i.e., 90% of the Cash Value). The accumulated premium account will not become less than zero because of the reduction. Nationwide will notify the policy owner in writing of any reduction in the accumulated premium account within 30 days of the reduction.
The partial surrender will be deducted proportionally from the Sub-Account allocations and the Fixed Account. No Partial Surrender Fee will be assessed on the partial surrender. The partial surrender will be paid to the policy owner via check and will be accompanied by a transaction confirmation statement within 30 days of such occurrence. Partial surrenders may result in adverse tax consequences. Taxes arising from the partial surrender, if any, are the sole responsibility of the policy owner. The policy owner is encouraged to consult a tax advisor regarding tax implications of receiving a pre-death distribution prior to the purchase of this policy.
The Maximum Death Benefit may, under certain circumstances, curtail the flexibility that the policy affords the policy owner. For example, the policy's Cash Value may increase at a rate that outpaces the ratio of Cash Value to life insurance permitted under the Code. In some instances, this situation may be addressed by increasing the Total Specified Amount of insurance so that the policy's ratio of Cash Value to life insurance is readjusted to comply with the Code definition. If, however, an increase in the Total Specified Amount would cause the Death Benefit to exceed the Maximum Death Benefit, then this method of achieving compliance with the Code definition of life insurance may not be available.
Nationwide may increase the policy's Maximum Death Benefit if doing so would not be unfairly discriminatory or prohibited by state law. If the policy's Maximum Death Benefit is increased, Nationwide will reissue the Policy Data Page with the revised Maximum Death Benefit.
Incontestability
Nationwide will not contest payment of the Death Benefit based on the initial Total Specified Amount after the policy has been In Force during the Insured's lifetime for two years from the Policy Date, and, in some states, within two years from a reinstatement date. For any change in Total Specified Amount requiring evidence of insurability, Nationwide will not contest payment of the Death Benefit based on such increase after it has been In Force during the Insured's lifetime for two years from its effective date, and, in some states, within two years from a subsequent reinstatement date. The incontestability period in some states may be less than two years.
Nationwide will not contest a policy after a change in the Insured pursuant to the Change of Insured Rider after it has been In Force during the new Insured's lifetime for two years from the Change Date, and in some states, within two years from a reinstatement date. The incontestability period in some states may be less than two years.
Suicide
If the Insured dies by suicide within two years from the Policy Date, and, in some states, within two years of a reinstatement date, Nationwide will pay no more than the sum of the Premiums paid, less any Indebtedness, less any partial surrenders, and less the long-term care benefit payout account if the Long-Term Care Rider is elected. Similarly, if the Insured dies by suicide within two years from the date an application for an increase in the Total Specified Amount was accepted by Nationwide, and, in some states, within two years from a subsequent reinstatement date, Nationwide will pay no more than the Death Benefit Proceeds associated with insurance that has been In Force for at least two years from the Policy Date, plus the Cost of Insurance Charges associated with any increase in Total Specified Amount that has been In Force for a shorter period. The suicide period in some states may be less than two years.
If the Insured dies by suicide, while sane or insane, within two years from the effective date of a change of Insured (pursuant to the terms of the Change of Insured Rider, if elected and invoked), Nationwide will pay no more than the Cash Value as of the Change Date, plus any Premium paid since such date, less any Indebtedness, less any partial surrenders, and less the long-term care benefit payout account if the Long-Term Care Rider is elected.
If the policy was issued pursuant to an exchange under Section 1035 of the Code, and the Insured dies by suicide within two years of the Policy Date, Nationwide will pay a Death Benefit equal to the lesser of: (a) the amount of insurance under the exchanged policy as of the Policy Date; or (b) the Total Specified Amount of this policy. This provision only applies if the exchanged policy was originally issued more than two years prior to the Policy Date of this policy.
Policy Maturity
If the policy is In Force on the Maturity Date, coverage will automatically be extended until the Insured's date of death, unless otherwise elected by the policy owner, see Extending Coverage Beyond the Maturity Date.
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If the policy owner elects not to extend coverage beyond the Maturity Date, Nationwide will pay the Proceeds generally within seven days after the written request for payment is received at the Service Center. Nationwide may postpone payment of the Proceeds on the days that it is unable to price Accumulation Units, see Valuation of Accumulation Units. The Proceeds will equal the policy's Cash Value minus any Indebtedness. The policy is terminated once the Proceeds are paid.
The primary purpose of Maturity Date coverage extension is to continue the life insurance coverage, and avoid current income taxes on any earnings in excess of the cost basis if the maturity Proceeds are taken, see Surrender, Lapse, Maturity in Taxes.
Assuming no Indebtedness exists on the Maturity Date and that no partial surrenders or loans are taken after the Maturity Date, the Proceeds after the Maturity Date will equal or exceed the Proceeds on the Maturity Date. However, because the loan interest rate charged may be greater than loan interest credited, if Indebtedness on or after the Maturity Date exists, Proceeds after the Maturity Date may be less than the Proceeds on the Maturity Date.
Extending Coverage Beyond the Maturity Date
After the Maturity Date, the policy will operate the same as it did prior to the Maturity Date except as follows:
• the Total Specified Amount will be changed to the Cash Value on the Maturity Date and increases or decreases to the Total Specified Amount will not be permitted;
• Death Benefit Option 2 and Death Benefit Option 3 will be changed to Death Benefit Option 1 where the Total Specified Amount equals the Cash Value;
• 100% of the policy's Cash Value will be permanently transferred to the Fixed Account;
• no additional Premium payments will be permitted;
• no additional monthly periodic policy charges will be deducted;
• loans, loan repayments and partial surrenders will continue to be permitted;
• if applicable, the Long-Term Care Rider will remain in effect;
• loan interest will continue to be charged on Indebtedness; and
• the extension of coverage beyond the Maturity Date will not occur when the policy would fail the definition of life insurance under the Code.
This policy may not qualify as life insurance under federal tax law after the Maturity Date. Extending coverage beyond the Maturity Date may not provide more favorable tax treatment than otherwise applicable to the maturity Proceeds. If the policy owner does not elect to receive the maturity Proceeds on the Maturity Date, coverage will automatically be extended. The policy owner should consult with a qualified tax advisor before coverage is extended beyond the Maturity Date. Note: if the Supplemental Insurance Rider is in effect, the Maturity Date coverage with respect to the Rider Specified Amount will not be extended.
Payment of Policy Proceeds
Normally, Nationwide will make a lump sum payment of policy Proceeds within seven days of the date a written request is received at the Service Center. Nationwide will postpone payment of Proceeds on days that it is unable to price Accumulation Units. Nationwide may delay payment of Proceeds allocated to the Fixed Account as permitted by state law, see Valuation of Accumulation Units. The policy owner or the beneficiary may also elect to leave the Proceeds on deposit in an interest-bearing checking account.
Treatment of Unclaimed Property
Every state has unclaimed property laws which generally declare life insurance policies to be abandoned after a period of inactivity of three to five years from the policy Maturity Date or the date Nationwide becomes informed that a Death Benefit is due and payable. For example, if the payment of a Death Benefit has been triggered, but, if after a thorough search, Nationwide is still unable to locate the beneficiary of the Death Benefit, or the beneficiary does not come forward to claim the Death Benefit in a timely manner, the Death Benefit will be surrendered and placed in a non-interest bearing account. While in the non-interest bearing account, Nationwide will continue to perform due diligence required by state law. Once the state mandated period has expired, Nationwide will escheat the Death Benefit to the abandoned property division or unclaimed property office of the state in which the beneficiary or the policy owner last resided, as shown on
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Nationwide’s books and records, or to Ohio, Nationwide’s state of domicile. If a claim is subsequently made, the state is obligated to pay any such amount (without interest) to the designated recipient upon presentation of proper documentation.
To prevent escheatment, it is important to update beneficiary designations - including complete names, complete addresses, phone numbers, and social security numbers - as they change. Such updates should be sent to the Service Center.
Taxes
The tax treatment of life insurance policies under the Internal Revenue Code ("Code") is complex and the tax treatment of the policy will depend on the policy owner's particular circumstances. The policy owner should seek competent tax advice regarding the tax treatment of the policy given their situation. The following discussion provides a general overview of the Code's provisions relating to certain common life insurance policy transactions. Some of the items discussed below may not be applicable to the life insurance policy described herein. It is not and cannot be comprehensive, and it cannot replace personalized advice provided by a competent tax professional.
Types of Taxes
Federal Income Tax
Generally, the United States assesses a tax on income, which is broadly defined to include all items of income from whatever source, unless specifically excluded. Certain expenditures can reduce income for tax purposes and correspondingly the amount of tax payable. These expenditures are called deductions. While there are many more income tax concepts under the Code, the concepts of "income" and "deduction" are the most fundamental to the federal income tax treatment that pertains to this policy.
Federal Transfer Tax
In addition to the income tax, the United States also assesses a tax on some or all of the value of certain transfers of property made by gift while a person is living (the federal gift tax), and by bequest or otherwise at the time of a person's death (the federal estate tax).
The federal gift tax is imposed on the value of the property (including cash) transferred by gift. Each donor is allowed to exclude an amount per recipient from the value of present interest gifts. In addition, each donor is allowed a credit against the tax on five million dollars in lifetime gifts (calculated after taking into account the applicable exclusion amount). An unlimited marital deduction may be available for certain lifetime gifts made by the donor to the donor's spouse.
The American Taxpayer Relief Act ("ATRA") enacted on January 1, 2013, permanently provides for a maximum federal estate tax rate of 40% with an annually inflation adjusted $5 million exemption for estates of persons dying after December 31, 2012.
Under current law, an unlimited marital deduction is available for federal estate tax purposes for certain amounts that pass to the surviving spouse.
If the transfer is made to someone two or more generations younger than the transferor, the transfer may be subject to the federal generation-skipping transfer tax ("GSTT"). The GSTT provisions generally apply to the same transfers that are subject to estate or gift taxes. The GSTT is imposed at a flat rate equal to the maximum estate tax rate subject to any applicable exemptions. As with the estate tax, ATRA permanently provides for a GSTT tax rate of 40% with an annually inflation adjusted $5 million exemption.
State and Local Taxes
State and local estate, inheritance, income and other tax consequences of ownership or receipt of policy proceeds depend on the circumstances of each policy owner or beneficiary. While these taxes may or may not be substantial in every policy owner's case, state by state differences of these taxes preclude a useful description of them in this prospectus.
Buying the Policy
Federal Income Tax
Generally, the Code treats life insurance premiums as a nondeductible expense for income tax purposes.
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Federal Transfer Tax
Generally, the Code treats the payment of premiums on a life insurance policy as a gift when the premium payment benefits someone else (such as when premium payments are paid by someone other than the policy owner). Gifts are not generally included in the recipient's taxable income. If the policy owner (whether or not they are the insured) transfers ownership of the policy to another person, the transfer may be subject to a federal gift tax.
Investment Gain in the Policy
The income tax treatment of changes in the policy's cash value depends on whether the policy is "life insurance" under the Code. If the policy meets the definition of life insurance, then the increase in the policy's cash value is not included in the policy owner's taxable income for federal income tax purposes unless it is distributed to the policy owner before the death of the insured.
To qualify as life insurance, the policy must meet certain tests set out in Section 7702 of the Code. Nationwide will monitor the policy's compliance with Code Section 7702, and take whatever steps are necessary to stay in compliance.
Diversification
In addition to meeting the tests required under Section 7702, Section 817(h) of the Code requires that the investments of the separate account be adequately diversified. Regulations under Code Section 817(h) provide that a variable life policy that fails to satisfy the diversification standards will not be treated as life insurance unless such failure was inadvertent, is corrected, and the policy owner or the issuer pays an amount to the IRS. If the failure to diversify is not corrected, the income and gain in the policy would be treated as taxable ordinary income for federal income tax purposes.
Nationwide will also monitor compliance with Code Section 817(h) and the regulations applicable to Section 817(h) and, to the extent necessary, take appropriate action to remain in compliance.
Representatives of the IRS have informally suggested, from time to time, that the number of underlying investment options available or the number of transfer opportunities available under a variable insurance product may be relevant in determining whether the product qualifies for the desired tax treatment. In 2003, the IRS issued formal guidance, in Revenue Ruling 2003-91, that indicates that if the number of underlying investment options available in a variable insurance product does not exceed 20, the number of underlying investment options alone would not cause the policy to not qualify for the desired tax treatment. The IRS has also indicated that exceeding 20 underlying investment options may be considered a factor, along with other factors including the number of transfer opportunities available under the policy, when determining whether the policy qualifies for the desired tax treatment. The revenue ruling did not indicate the number of underlying investment options, if any, that would cause the policy to not provide the desired tax treatment. Should the U.S. Secretary of the Treasury issue additional rules or regulations limiting: the number of underlying investment options, transfers between underlying investment options, exchanges of underlying investment options or changes in the investment objectives of underlying investment options such that the policy would no longer qualify as life insurance under Section 7702 of the Code, Nationwide will take whatever steps are available to remain in compliance.
Based on the above, the policy should be treated as life insurance for federal income tax purposes.
Periodic Withdrawals, Non-Periodic Withdrawals and Loans
The tax treatment described in this section applies to withdrawals and loans, premiums Nationwide accepts but then returns to meet the Code's definition of life insurance, and amounts used to pay the premium on any rider to the policy.
The income tax treatment of distributions of cash from the policy depends on whether the policy is also a "modified endowment contract" under the Code. Generally, the income tax consequences of owning a life insurance policy that is not a modified endowment contract are more advantageous than the tax consequences of owning a life insurance policy that is a modified endowment contract.
The policies offered by this prospectus may or may not be issued as modified endowment contracts. If a policy is issued as a modified endowment contract, it will always be a modified endowment contract; a policy that is not issued as a modified endowment contract can become a modified endowment contract due to subsequent transactions with respect to the policy, such as payment of additional premiums. If the policy is not issued as a modified endowment contract, Nationwide will monitor it and advise the policy owner if the payment of a premium, or other transaction, may cause the policy to become a modified endowment contract. It is only with the policy owner's written authorization that Nationwide will permit the policy to become a modified endowment policy. Otherwise, Nationwide will reject the requested action or refund any Premium paid in excess of the modified endowment limits.
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Depending on the policy owner's circumstances, the use of the cash value of the policy to pay for the cost of any rider added to the base policy, could be treated as a distribution, and would be subject to the rules described below. Policy owners should seek competent tax advice regarding the tax treatment of the addition of any rider to the policy, based on the policy owner's individual facts and circumstances.
In general, interest the policy owner pays on a loan from a policy will not be deductible. Also, if a loan from a policy that is not a modified endowment contract is outstanding when the policy is canceled or lapses, the amount of the outstanding indebtedness will be added to the amount distributed and will be taxed accordingly. Before taking a policy loan, the policy owner should consult a tax advisor as to the tax consequences.
When the Policy is Life Insurance that is a Modified Endowment Contract
Section 7702A of the Code defines modified endowment contracts as those life insurance policies issued or materially changed on or after June 21, 1988 on which the total premiums paid during the first 7 years exceed the amount that would have been paid if the policy provided for paid up benefits after 7 level annual premiums. Under certain conditions, a policy may become a modified endowment contract, or may become subject to a new 7 year testing period as a result of a "material change" or a "reduction in benefits" as defined by Section 7702A(c) of the Code.
All modified endowment contracts issued to the same owner by the same company during a single calendar year are required to be aggregated and treated as a single policy for purposes of determining the amount that is includible in income when a distribution occurs.
The Code provides special rules for the taxation of surrenders, partial surrenders, loans, collateral assignments, and other pre-death distributions from modified endowment contracts. Under these special rules, such transactions are taxable to the extent that at the time of the transaction the cash value of the policy exceeds the 'investment in the contract' (generally, the net Premiums paid for the policy). In addition, a 10% tax penalty generally applies to the taxable portion of such distributions unless the policy owner is over age 59½ or disabled, or the distribution is part of a series of substantially equal periodic payments as defined in the Code.
When the Policy is Life Insurance that is NOT a Modified Endowment Contract
If the policy is not issued as a modified endowment contract, Nationwide will monitor premiums paid and will notify the policy owner when the policy is in jeopardy of becoming a modified endowment contract.
Distributions from life insurance policies that are not modified endowment contracts generally are treated as being first from the investment in the contract, and then from the income in the policy. Because premium payments are generally nondeductible, distributions not in excess of investment in the contract are generally not includible in income; instead, they reduce the owner's investment in the contract.
However, if a policy is not a modified endowment contract, a cash distribution during the first 15 years after a policy is issued that causes a reduction in death benefits may still be fully or partially taxable to the policy owner pursuant to Section 7702(f)(7) of the Code. The policy owner should carefully consider this potential tax ramification and seek further information before requesting any changes in the terms of the policy.
In addition, unlike a modified endowment contract, a loan from a life insurance policy that is not a modified endowment contract is not taxable when made, although it can be treated as a distribution if it is forgiven during the owner's lifetime. Distributions from policies that are not modified endowment contracts are not subject to the 10% early distribution penalty tax.
Surrender, Lapse, Maturity
A full surrender, cancellation of the policy by lapse, or the maturity of the policy on its maturity date may have adverse income tax consequences. If the amount received (or are deemed received upon maturity) plus total policy indebtedness exceeds the investment in the policy, then the excess generally will be treated as taxable ordinary income, regardless of whether or not the policy is a modified endowment contract. In certain circumstances, for example when the policy indebtedness is very large, the amount of tax could exceed the amount distributed to the policy owner at surrender.
The purpose of the maturity date extension feature is to permit the policy to continue to be treated as life insurance for tax purposes. Although Nationwide believes that the extension provision will cause the policy to continue to be treated as life insurance after the initially scheduled maturity date, that result is not certain due to a lack of specificity in the guidance on the issue. The policy owner should consult with a qualified tax advisor regarding the possible adverse tax consequences that could result from an extension of the scheduled maturity date.
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Additional Medicare Tax
Effective January 1, 2013, Section 1411 of the Code imposes a surtax of 3.8% on certain net investment income received by individuals and certain trusts and estates. The surtax is imposed on the lesser of (a) net investment income or (b) the excess of the modified adjusted gross income over a threshold amount. For individuals, the threshold amount is $250,000 (married filing jointly); $125,000 (married filing separately); or $200,000 (single, head of household with qualifying person, or qualifying widow(er) with dependent child). The threshold for an estate or trust that is subject to the surtax is generally equal to the dollar amount at which the highest tax bracket under section 1(e) begins for the taxable year; for 2017, that amount is $12,500.
Modified adjusted gross income is equal to adjusted gross income with several modifications; the policy owner should consult with a tax advisor regarding how to determine the policy owner's modified adjusted gross income for purposes of determining the applicability of the surtax.
Net investment income includes, but is not limited to, interest, dividends, capital gains, rent and royalty income, and income from nonqualified annuities; and may include taxable distributions from, and gain from the sale or surrenders of, life insurance policies.
Net investment income does not include, among other things, distributions from certain qualified plans (such as IRAs, Roth IRAs, and plans described in Internal Revenue Code Sections 401(a), 401(k), 403(a), 403(b) or 457(b)); however, such distributions, to the extent that they are includible in income for federal income tax purposes are includible in modified adjusted gross income.
Sale of a Life Insurance Policy
If a life insurance policy is sold for a gain, all or a portion of the gain will be treated as ordinary income. In Revenue Ruling 2009-13, the IRS concluded that the amount of gain realized from the sale of a life insurance policy is equal to the amount received (which can include relief from, or assumption of debt) over the owner's basis in the policy. The portion of the gain that is equal to the excess of the cash surrender value over the investment in the policy would be treated as ordinary income; any additional gain would be short or long-term capital gain, depending on the holding period. The ruling also concluded that the owner's basis in the policy that is used to calculate the gain resulting from the sale of the life insurance policy is the investment in the policy reduced by the cost of insurance previously paid out of the cash value. Consequently, a sale may result in more gain than a surrender for the same amount.
Exchanging the Policy for Another Life Insurance Policy
Generally, policy owners will be taxed on amounts received in excess of premium payments when the policy is surrendered in full. If, however, the policy is exchanged for another life insurance policy, modified endowment contract, or annuity contract, the transaction will not be taxed on the excess amount if the exchange meets the requirements of Code Section 1035. To meet Section 1035 requirements, the insured named in the policy must be the insured for the new policy. Generally, the new policy or contract will be treated as having the same issue date and tax basis as the old policy or contract.
If the policy or contract is subject to a policy indebtedness that is discharged as part of the exchange transaction, the discharge of the indebtedness may be taxable. Policy owners should consult with their personal tax or legal advisors in structuring any policy exchange transaction.
Federal Income Taxation of Death Benefits
Death of Insured
The death benefit is generally excludable from the beneficiary's gross income under the Internal Revenue Code by reason of the insured’s death. However, if the policy had been transferred to a new policy owner for valuable consideration (e.g., through a sale of the policy), a portion of the death benefit may be includible in the beneficiary's gross income when it is paid.
The payout option selected by the policy's beneficiary may affect how the payments received by the beneficiary are taxed. Under the various payout options, the amount payable to the beneficiary may include earnings on the death benefit, which will be taxable as ordinary income. For example, if the beneficiary elects to receive interest only, then the entire amount of the interest payment will be taxable to the beneficiary; if a periodic payment (whether for a fixed period or for life) is
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selected, then a portion of each payment will be taxable interest income, and a portion will be treated as the nontaxable payment of the death benefit. The policy's beneficiaries should consult with their tax advisors to determine the tax consequences of electing a payout option, based on their individual circumstances.
Accelerated Death Benefits
The death benefit under a life insurance policy may be distributed at a time earlier than the death of the insured, and all or a portion of the distribution may still be excludable from gross income under the Code.
Terminal Illness
The death benefit under a life insurance policy may be distributed when the insured is considered a "terminally ill individual" as that term is defined under the Internal Revenue Code. In this situation the distribution is treated as paid by reason of death of the insured and will generally be excluded from the policy owner’s gross income under Section 101 of the Code, see Federal Income Taxation of Death Benefits.
Long-Term Care
A long-term care rider issued with a life insurance policy or one that is subsequently added to the policy may allow for acceleration of all or a portion of the death benefit upon the insured being certified as a "chronically ill individual" as that term is defined under the Internal Revenue Code. If the long-term care rider meets the requirements of a qualified long-term care insurance contract as defined under Section 7702B of the Internal Revenue Code, then a distribution of all or a portion of the death benefit will generally be excluded from income under the Code. The long-term care rider issued with this life insurance policy is intended to be a qualified long-term care insurance contract under Section 7702B of the Internal Revenue Code.
The amount of the long-term care benefit that is excludable from gross income is limited by the Internal Revenue Code, on an annual basis, to the greater of the HIPAA per diem amount or the amount of actual qualifying long-term care expenses incurred, reduced by any reimbursements received for qualifying long-term care services provided for the insured. If multiple indemnity contracts are owned on a single insured, then the payments received from these contracts are aggregated for purposes of determining whether the amounts received exceed the greater of the HIPAA per diem amount or the amount of actual qualifying long-term care expenses incurred. Therefore it is highly recommended that the policy owner consult their tax advisor when contemplating the amount of long-term care benefit to be taken under the long-term care rider.
The long-term care rider may pay benefits if the insured is receiving qualified long-term care services outside of the United States. It is the responsibility of the Policy Owner to determine if collecting benefits while outside the United States will subject the Policy Owner to taxation in the United States, the country of residence, or any other foreign jurisdiction.
Payment of long-term care rider charges will be made through deductions from the cash value of the life policy. These deductions from the cash value are considered to be distributions from the life policy for federal tax purposes. The federal tax treatment of such distributions are governed by section 72(e)(11) which provides that the deductions will reduce the investment in the contract and will not be included in income even if the policy owner has recovered all of their investment in the contract.
The payment of long-term care benefits made to the policy owner of the long-term care rider will be reported on a Form 1099-LTC. In addition, deductions from the cash value of the life insurance policy to pay for long-term care rider charges during the calendar year will also be reported on Form 1099-R.
This discussion of the tax treatment of the long-term care rider is not meant to be all inclusive. Due to the complexity of these rules, and because they are affected by the policy owner's facts and circumstances, the policy owner should consult with legal and tax counsel and other competent advisors regarding these matters.
Federal Transfer (Estate, Gift and Generation Skipping Transfer) Taxes
When the insured dies, the death benefit will generally be included in the insured's federal gross estate if: (1) the proceeds were payable to or for the benefit of the insured's estate; or (2) the insured held any "incident of ownership" in the policy at death or at any time within three years of death. An incident of ownership, in general, is any right in the policy that may be exercised by the policy owner, such as the right to borrow on the policy or the right to name a new beneficiary.
If the beneficiary is two or more generations younger than the insured, the death benefit may be subject to the GSTT. Pursuant to regulations issued by the U.S. Secretary of the Treasury, Nationwide may be required to withhold a portion of the proceeds and pay them directly to the IRS as the GSTT payment.
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If the policy owner is not the insured or a beneficiary, payment of the death benefit to the beneficiary will be treated as a gift to the beneficiary from the policy owner.
Special Considerations for Corporations
Special federal income tax considerations for life insurance policies owned by employers
Sections 101(j) and 6039I of the Code provide special rules regarding the tax treatment of death benefits that are payable under life insurance policies owned by the employer of the insured. These provisions are generally effective for life insurance policies issued after August 17, 2006. If a life insurance policy was issued on or before August 17, 2006, but materially modified after that date, it will be treated as having been issued after that date for purposes of Section 101(j). Policies issued after August 17, 2006 pursuant to a Section 1035 exchange generally are excluded from the operation of these provisions, provided that the policy received in the exchange does not have a material increase in death benefit or other material change with respect to the old policy.
Section 101(j) provides the general rule that, with respect to an employer-owned life insurance policy, the amount of death benefit payable directly or indirectly to the employer that may be excluded from income cannot exceed the sum of premiums and other payments paid by the policy owner for the policy. Consequently, under this general rule, the entire death benefit, less the cost to the policy owner, will be taxable. Although Section 101(j) is not clear, if lifetime distributions from the policy are made as a nontaxable return of premium, it appears that the reduction would apply for Section 101(j) purposes and reduce the amount of premiums for this purpose.
There are two exceptions to this general rule of taxability, provided that statutory notice, consent, and information requirements are satisfied. First, if proper notice and consent are given and received, and if the insured was an employee at any time during the 12-month period before the insured's death, then Section 101(j) would not apply.
Second, if proper notice and consent are given and received and, at the time that the policy is issued, the insured is either a director, a "highly compensated employee" (within the meaning of Section 414(q) of the Code without regard to paragraph (1)(B)(ii) thereof), or a "highly compensated individual" (within the meaning of Section 105(h)(5), except "35%" is substituted for "25%" in paragraph (C) thereof), then Section 101(j) would not apply.
Code Section 6039I requires any policy owner of an employer-owned policy to file an annual return showing (a) the number of employees of the policy owner, (b) the number of such employees insured under employee-owned policies at the end of the year, (c) the total amount of insurance in force with respect to those policies at the end of the year, (d) the name, address, taxpayer identification number and type of business of the policy owner, and (e) that the policy owner has a valid consent for each insured (or, if all consents are not obtained, the number of insured employees for whom such consent was not obtained). Proper recordkeeping is also required by this section.
It is the employer's responsibility to (a) provide the proper notice to each insured, (b) obtain the proper consent from each insured, (c) inform each insured in writing that the employer-owner will be the beneficiary of any proceeds payable upon the death of the insured, and (d) file the annual return required by Section 6039I. If the employer-owner fails to provide the necessary notice and information, or fails to obtain the necessary consent, the death benefit will be taxable when received. If the employer-owner fails to file a properly completed return under Section 6039I, a penalty may apply.
Limitation on interest and other business deductions
Section 264 of the Code imposes a number of limitations on the interest and other business deductions that may otherwise be available to businesses that own life insurance policies. In addition, the premium paid by a business for a life insurance policy is not deductible as a business expense or otherwise if the business is directly or indirectly a beneficiary of the policy.
For purposes of the alternative minimum tax ("AMT") that may be imposed on corporations, the death benefit from a life insurance policy, even though excluded from gross income for normal tax purposes, is included in "adjusted current earnings" for AMT purposes. In addition, although increases to the cash surrender value of a life insurance policy are generally excluded from gross income for normal income tax purposes, such increases are included in adjusted current earnings for income tax purposes.
Due to the complexity of these rules, and because they are affected by the policy owner's facts and circumstances, the policy owner should consult with legal and tax counsel and other competent advisors regarding these matters.
Federal appellate and trial courts have examined the economic substance of transactions involving life insurance policies owned by corporations. These cases involved relatively large loans against the policy's cash value as well as tax deductions for the interest paid on the policy loans by the corporate policy owner to the insurance company. Under the
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particular factual circumstances in these cases, the courts determined that the corporate policy owners should not have taken tax deductions for the interest paid. Accordingly, the court determined that the corporations should have paid taxes on the amounts deducted. Corporations should consider, in consultation with tax advisors familiar with these matters, the impact of these decisions on the corporation's intended use of the policy.
Business Uses of the Policy
The life insurance policy may be used in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans, and others. The tax consequences of these plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the policy owner is contemplating using the policy in any arrangement the value of which depends in part on its tax consequences, the policy owner should be sure to consult a tax advisor as to tax attributes of the arrangement.
Non-Resident Aliens and Other Persons Who are Not Citizens of the United States
Special income tax laws and rules apply to non-resident aliens of the United States including certain withholding requirements with respect to pre-death distributions from the policy. In addition, foreign law may impose additional taxes on the policy, the death benefit, or other distributions and/or ownership of the policy.
In addition, special gift, estate and GSTT laws and rules may apply to non-resident aliens, and to transfers to persons who are not citizens of the United States, including limitations on the marital deduction if the surviving or donee spouse is not a citizen of the United States.
If the policy owner is a non-resident alien, or a resident alien, or if any of the policy's beneficiaries (including the policy owner's spouse) are not citizens of the United States, the policy owner should confer with a competent tax advisor with respect to the tax treatment of this policy.
If the policy owner, the insured, the beneficiary, or other person receiving any benefit or interest in or from the policy, are not both a resident and citizen of the United States, there may be a tax imposed by a foreign country that is in addition to any tax imposed by the United States. The foreign law (including regulations, rulings, treaties with the United States, and case law) may change and impose additional or increased taxes on the policy, payment of the death benefit, or other distributions and/or ownership of the policy.
FATCA
Under Sections 1471 through 1474 of the Internal Revenue Code (commonly referred to as FATCA), distributions from a policy to a foreign financial institution or to a nonfinancial foreign entity, each as described by FATCA, may be subject to United States tax withholding at a flat rate equal to 30% of the taxable amount of the distribution, irrespective of the status of any beneficial owner of the policy or of the distribution. Nationwide may require you to provide certain information or documentation (e.g., Form W-9 or Form W-8BEN) to determine its withholding requirements under FATCA.
Withholding and Tax Reporting
Distribution of taxable income from a life insurance policy, including a life insurance policy that is a modified endowment contract, is subject to federal income tax withholding. Generally, the recipient may elect not to have the withholding taken from the distribution. Nationwide will withhold income tax unless the policy owner advises Nationwide, in writing, of their request not to withhold. If the policy owner requests that taxes not be withheld, or if the taxes withheld are insufficient, the policy owner may be liable for payment of an estimated tax.
A policy owner is not permitted to waive withholding if the payee does not provide Nationwide with a taxpayer identification number; or if Nationwide receives notice from the Internal Revenue Service that the taxpayer identification number furnished by the payee is incorrect. In that instance, a distribution will be subject to withholding rates established by Section 3405 of the Code and will be applied against the amount of income that is distributed.
However, interest earned on a death benefit may be subject to mandatory back-up withholding. Mandatory backup withholding means that Nationwide is required to withhold taxes on income earned at the rate established by Section 3406 of the Code. Mandatory backup withholding may arise if Nationwide has not been provided a taxpayer identification number, or if the IRS notifies Nationwide that back-up withholding is required.
In certain employer-sponsored life insurance arrangements, participants may be required to report for income tax purposes, one or more of the following:
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• the value each year of the life insurance protection provided;
• an amount equal to any employer-paid Premiums;
• some or all of the amount by which the current value exceeds the employer's interest in the policy; and/or
• interest that is deemed to have been forgiven on a loan that Nationwide deems to have been made by the employer.
Participants in an employer-sponsored plan relating to this policy should consult with the sponsor or the administrator of the plan, and/or with their personal tax or legal advisor to determine the tax consequences, if any, of their employer-sponsored life insurance arrangements.
Taxes and the Value of the Policy
For federal income tax purposes, a separate account is not a separate entity from the company. Thus, the tax status of the separate account is not distinct from our status as a life insurance company. Investment income and realized capital gains on the assets of the separate account are reinvested and taken into account in determining the value of Accumulation Units. As a result, such investment income and realized capital gains are automatically applied to increase reserves under the policies.
At present, Nationwide does not expect to incur any federal income tax liability that would be chargeable to the Accumulation Units. Based upon these expectations, no charge is being made against the policy's Accumulation Units for federal income taxes. If, however, Nationwide determines that taxes may be incurred, Nationwide reserves the right to assess a charge for these taxes.
Nationwide may also incur state and local taxes (in addition to those described in the discussion of the Premium Taxes) in several states. At present, these taxes are not significant. If they increase, however, charges for such taxes may be made that would decrease the value of the policy's Accumulation Units.
Tax Changes
The foregoing is a general discussion of various tax matters pertaining to life insurance policies. It is based on our understanding of federal tax laws as currently interpreted by the IRS, is general and is not intended as tax advice. The policy owner should consult their independent legal, tax and/or financial advisor.
The Code has been subjected to numerous amendments and changes, and it is reasonable to believe that it will continue to be revised. The United States Congress has, in the past, considered numerous legislative proposals that, if enacted, could change the tax treatment of life insurance policies. For example the "FY 2013, Budget of the United States Government" includes a proposal which, if enacted, would affect the treatment of corporate owned life insurance policies by limiting the availability of certain interest deductions for companies that purchase those policies. No proposed statutory language has been released yet, so the specifics of the proposal cannot be addressed herein. Such a proposal, if enacted, could have an adverse tax impact on the ownership of life insurance by or for the benefit of business entities. It is reasonable to believe that such proposals, and future proposals, may be enacted into law. The U.S. Treasury Department may amend existing regulations, issue new regulations, or adopt new interpretations of existing law that may differ from its current positions on these matters. In addition, current state law (which is not discussed herein) and future amendments to state law may affect the tax consequences of the policy.
Any or all of the foregoing may change from time to time without any notice, and the tax consequences arising out of a policy may be changed retroactively. There is no way of predicting if, when, or to what extent any such change may take place. Nationwide makes no representation as to the likelihood of the continuation of these current laws, interpretations, and policies.
Nationwide Life Insurance Company
Nationwide, the depositor, 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, Guam, the U.S. Virgin Islands, and Puerto Rico.
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Nationwide is a member of the Nationwide group of companies. Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company (the "Companies") are the ultimate controlling persons of the Nationwide group of companies. The Companies were organized under Ohio law in December 1925 and 1933 respectively. The Companies engage in a general insurance and reinsurance business, except life insurance.
Nationwide VLI Separate Account-4
Organization, Registration, and Operation
Nationwide VLI Separate Account-4 is a separate account established under Ohio law. Nationwide owns the assets in this account and is obligated to pay all benefits under the policies. Nationwide may use the separate account to support other variable life insurance policies that it issues. The separate account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 ("1940 Act") and qualifies as a "separate account" within the meaning of federal securities laws. For purposes of federal securities laws, the separate account is, and will remain, fully funded at all times. This registration does not involve the SEC's supervision of the separate account's management or investment practices or policies.
The separate account is divided into Sub-Accounts that invest in shares of the underlying mutual funds. Nationwide buys and sells the mutual fund shares at their respective NAV. Any dividends and distributions from a mutual fund are reinvested at NAV in shares of that mutual fund.
Income, gains, and losses, whether or not realized, from the assets in the separate account will be credited to, or charged against, the separate account without regard to Nationwide's other income, gains, or losses. Income, gains, and losses credited to, or charged against, a Sub-Account reflect the Sub-Account's own Investment Experience and not the investment experience of Nationwide's other assets. The separate account's assets are held separately from Nationwide’s other assets and are not part of Nationwide’s general account. Nationwide may not use the separate account's assets to pay any of its liabilities other than those arising from the policies. Nationwide will hold assets in the separate account equal to its liabilities. The separate account may include other Sub-Accounts that are not available under the policies, and are not discussed in this prospectus.
Nationwide does not guarantee any money placed in this separate account. The value of each Sub-Account will increase or decrease, depending on the Investment Experience of the corresponding mutual fund. A policy owner could lose some or all of their money.
Addition, Deletion, or Substitution of Mutual Funds
Where permitted by applicable law, Nationwide reserves the right to:
• remove, close, combine, or add Sub-Accounts and make new Sub-Accounts available;
• substitute shares of another mutual fund, which may have different fees and expenses, for shares of an existing mutual fund;
• transfer assets supporting the policies from one Sub-Account to another, or from one separate account to another;
• combine the separate account with other separate accounts, and/or create new separate accounts;
• deregister the separate account under the 1940 Act, or operate the separate account or any Sub-Account as a management investment company under the 1940 Act or as any other form permitted by law; and
• modify the policy provisions to reflect changes in the Sub-Accounts and the separate account to comply with applicable law.
Nationwide reserves the right to make other structural and operational changes affecting this separate account.
Nationwide will provide notice of any of the changes above. Also, to the extent required by law, Nationwide will obtain the required orders, approvals, and/or regulatory clearance from the appropriate government agencies (such as the various insurance regulators or the SEC). Also, to the extent required by state law, Nationwide will accept an irrevocable election from the policy owner to transfer 100% of the policy's Cash Value to the Fixed Account if received within 60 days after the date the policy owner received notification of a material change in the investment policy of the separate account.
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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 of shares may take place without the prior approval of the SEC. All affected policy owners will be notified in the event there is a substitution, elimination, or combination of shares.
The substitute mutual fund may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Premium, or both. Nationwide may close Sub-Accounts to allocations of Premiums or policy value, or both, at any time in its sole discretion. The mutual funds, which sell their shares to the Sub-Accounts pursuant to participation agreements, also may terminate these agreements and discontinue offering their shares to the Sub-Accounts.
Deregistration of the Separate Account
Nationwide may deregister Nationwide VLI Separate Account-4 under the 1940 Act in the event the separate account meets an exemption from registration under the 1940 Act, if there are no shareholders in the separate account or for any other purpose approved by the SEC.
All policy owners will be notified in the event Nationwide deregisters Nationwide VLI Separate Account-4.
Voting Rights
Although the separate account owns the mutual fund shares, policy owners are the beneficial owner of those shares. When a matter involving a mutual fund is subject to shareholder vote, unless there is a change in existing law, Nationwide will vote the separate account's shares only as instructed by policy owners.
When a shareholder vote occurs, a policy owner will have the right to instruct Nationwide how to vote. The weight of each vote is based on the number of mutual fund shares that corresponds to the amount of Cash Value a policy has allocated to that mutual fund's Sub-Account (as of a date set by the mutual fund). Nationwide will vote shares for which no instructions are received in the same proportion as those that are received. What this means is that when only a small number of policy owners vote, each vote has a greater impact on, and may control the outcome of the vote.
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 policy owners and those of other companies. If a material conflict occurs, Nationwide will take whatever steps are necessary to protect policy owners and variable annuity payees, including withdrawal of the variable account from participation in the underlying mutual fund(s) involved in the conflict.
Legal Proceedings
Nationwide Life Insurance Company
Nationwide Financial Services, Inc. (NFS, or collectively with its subsidiaries, "the Company") was formed in November 1996. NFS is the holding company for Nationwide Life Insurance Company (NLIC), Nationwide Life and Annuity Insurance Company (NLAIC) and other companies that comprise the life insurance and retirement savings operations of the Nationwide group of companies (Nationwide). This group includes Nationwide Financial Network (NFN), an affiliated distribution network that markets directly to its customer base. NFS is incorporated in Delaware and maintains its principal executive offices in Columbus, Ohio.
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The Company is subject to legal and regulatory proceedings in the ordinary course of its business. These proceedings include proceedings specific to the Company and proceedings generally applicable to business practices in the industries in which the Company operates. The outcomes of these proceedings cannot be predicted due to their complexity, scope, and many uncertainties. Regulatory proceedings may also affect the outcome of one or more of the Company’s litigation matters. Furthermore, it is often not possible with any degree of certainty to determine the likely ultimate outcomes of the pending regulatory and legal proceedings or to provide reasonable ranges of potential losses. Some matters are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the claims for liability or damages. In some of the legal proceedings which are seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of legal proceedings, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory proceedings is not likely to have a material adverse effect on the Company’s condensed consolidated financial position. Nonetheless, it is possible that such outcomes could materially affect the Company’s condensed consolidated financial position or results of operations in a particular quarter or annual period given the large or indeterminate amounts sought in certain of these legal proceedings and the inherent unpredictability of litigation. The Company maintains Professional Liability Insurance and Director and Officer Liability insurance policies that may cover losses for certain legal and regulatory proceedings. The Company recognizes an asset for insurance recoveries, not to exceed cumulative accrued losses, when recovery under such policies is probable and reasonably estimable.
The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor ("DOL"), the Internal Revenue Service, the Federal Reserve Bank and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. With respect to all such scrutiny directed at the Company or its affiliates, the Company is cooperating with regulators. The Company will cooperate with its ultimate parent company, Nationwide Mutual Insurance Company ("NMIC") insofar as any inquiry, examination or investigation encompasses NMIC’s operations. In addition, recent regulatory activity, including activity by the DOL, may impact the Company’s business and operations, and certain estimates and assumptions used by the Company in determining the amounts presented in the financial statements and accompanying notes. Actual results could differ significantly from those estimates and assumptions.
Nationwide Investment Services Corporation
The general distributor, NISC, is not engaged in any litigation of any material nature.
Financial Statements
The Statement of Additional Information ("SAI") contains the financial statements of Nationwide VLI Separate Account-4 and the consolidated financial statements of Nationwide Life Insurance Company and subsidiaries (the Company). Policy owners may obtain a copy of the SAI FREE OF CHARGE by contacting the Service Center. Please consider the consolidated financial statements of the Company only as bearing on Nationwide’s ability to meet the obligations under the policy. Policy owners should not consider the consolidated financial statements of the Company as affecting the investment performance of the assets of the separate account.
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Appendix A: Sub-Account Information
Below is a list of the available Sub-Accounts and information about the corresponding underlying mutual funds in which they invest. The underlying mutual funds in which the Sub-Accounts invest 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.
Please refer to the prospectus for each underlying mutual fund for more detailed information.
   
Designations Key:
STTF: The underlying mutual fund corresponding to this Sub-Account assesses (or reserves the right to assess) a short-term trading fee, see Short-Term Trading Fees.
FF: The underlying mutual fund corresponding to this Sub-Account primarily invests in other mutual funds. Therefore, a proportionate share of the fees and expenses of any acquired funds are indirectly borne by investors. As a result, investors in this Sub-Account may incur higher charges than if the assets were invested in an underlying mutual fund that does not invest in other mutual funds. Refer to the prospectus for this underlying mutual fund for more information.
   
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Growth and Income Portfolio: Class A
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS International Value Portfolio: Class A
This Sub-Account is only available in policies issued before December 31, 2012
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
AllianceBernstein Variable Products Series Fund, Inc. - AB VPS Small/Mid Cap Value Portfolio: Class A
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class I
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: The fund pursues long-term total return using a strategy that seeks to protect against U.S. inflation.
American Century Variable Portfolios, Inc. - American Century VP Capital Appreciation Fund: Class I
This Sub-Account is only available in policies issued before April 25, 2014
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Capital growth.
American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class I
This Sub-Account is only available in policies issued before May 1, 2017
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Long-term capital growth with income as a secondary objective.
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class I
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Long-term capital growth with income as a secondary objective.
American Funds Insurance Series® - Asset Allocation Fund: Class 2
Investment Advisor: Capital Research and Management Company
Investment Objective: Seeks high total return (including income and capital gains) consistent with the preservation of capital over the long term.
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American Funds Insurance Series® - Bond Fund: Class 2
This Sub-Account is only available in policies issued before December 31, 2012
Investment Advisor: Capital Research and Management Company
Investment Objective: Seeks to provide as high a level of current income as is consistent with the preservation of capital.
American Funds Insurance Series® - Global Small Capitalization Fund: Class 2
Investment Advisor: Capital Research and Management Company
Investment Objective: Seeks long-term growth of capital through investments in smaller companies in the U.S. and around the world.
American Funds Insurance Series® - Growth Fund: Class 2
Investment Advisor: Capital Research and Management Company
Investment Objective: Seeks to provide you with growth of capital.
American Funds Insurance Series® - International Fund: Class 2
Investment Advisor: Capital Research and Management Company
Investment Objective: Seeks to provide you with long-term growth of capital.
American Funds Insurance Series® - New World Fund: Class 2
Investment Advisor: Capital Research and Management Company
Investment Objective: The fund’s investment objective is long-term capital appreciation.
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class II
Investment Advisor: BlackRock Advisors, LLC
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: Seek high total investment return.
BlackRock Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund: Class I
Investment Advisor: BlackRock Advisors, LLC
Sub-advisor: BlackRock Financial Management, Inc.
Investment Objective: The Fund seeks to maximize total return, consistent with income generation and prudent investment management.
BlackRock Variable Series Funds, Inc. - BlackRock Large Cap Core V.I. Fund: Class II
This Sub-Account is only available in policies issued before December 31, 2016
Investment Advisor: BlackRock Advisors, LLC
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The investment objective of the Fund is to seek high total investment return (i.e. the combination of capital appreciation (from increases or decreases in the market value) and current income (from interest or dividends).
Davis Variable Account Fund, Inc. - Davis Value Portfolio
This Portfolio is only available in policies issued before December 31, 2017
Investment Advisor: Davis Selected Advisors, L.P.
Sub-advisor: Davis Selected Advisors - NY, Inc.
Investment Objective: Long-term growth of capital.
Delaware VIP Trust - Delaware VIP Emerging Markets Series: Service Class
This Sub-Account is only available in policies issued before December 31, 2016
Investment Advisor: Delaware Management Company, Inc.
Investment Objective: The Series seeks long-term capital appreciation.
Delaware VIP Trust - Delaware VIP Small Cap Value Series: Service Class
Investment Advisor: Delaware Management Company, Inc.
Investment Objective: The fund seeks capital appreciation.
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Deutsche Variable Series II - Deutsche Small Mid Cap Value VIP: Class B
This Sub-Account is only available in policies issued before December 31, 2013
Investment Advisor: Deutsche Investment Management Americas Inc.
Investment Objective: Long-term capital appreciation.
Dreyfus Investment Portfolios - MidCap Stock Portfolio: Initial Shares
Investment Advisor: The Dreyfus Corporation
Investment Objective: The fund seeks investment results that are greater than the total return performance of publicly traded common stocks of medium-size domestic companies in the aggregate, as represented by the Standard & Poor's MidCap 400® Index (S&P 400 Index), and if such fees and/or charges were included, the fees and expenses would be higher.
Dreyfus Investment Portfolios - Small Cap Stock Index Portfolio: Service Shares
Investment Advisor: The Dreyfus Corporation
Investment Objective: The fund seeks to match the performance of the Standard & Poor's® SmallCap 600 Index (S&P SmallCap 600 Index).
Dreyfus Stock Index Fund, Inc.: Initial Shares
Investment Advisor: The Dreyfus Corporation
Investment Objective: The fund seeks to match the total return of the Standard & Poor's® 500 Composite Stock Price Index (S&P 500® Index).
Dreyfus Variable Investment Fund - Appreciation Portfolio: Initial Shares
Investment Advisor: The Dreyfus Corporation
Sub-advisor: Fayez Sarofim & Co.
Investment Objective: The fund seeks long-term capital growth consistent with the preservation of capital. Its secondary goal is current income.
Dreyfus Variable Investment Fund - International Value Portfolio: Initial Shares
This Sub-Account is only available in policies issued before December 31, 2016
Investment Advisor: The Dreyfus Corporation
Investment Objective: The fund seeks long-term capital growth.
Eaton Vance Variable Trust - Eaton Vance VT Floating-Rate Income Fund: Initial Class
Investment Advisor: Eaton Vance Management
Investment Objective: The fund seeks to provide a high level of current income.
Federated Insurance Series - Federated Quality Bond Fund II: Primary Shares
Investment Advisor: Federated Investment Management Company
Investment Objective: Current income.
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2015 Portfolio: Service Class
Investment Advisor: FMR Co., Inc.
Sub-advisor: FMR Co., Inc.
Investment Objective: Seeks high total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2020 Portfolio: Service Class
Investment Advisor: FMR Co., Inc.
Sub-advisor: FMR Co., Inc.
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
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Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2025 Portfolio: Service Class
Investment Advisor: FMR Co., Inc.
Sub-advisor: FMR Co., Inc.
Investment Objective: Seeks high total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2030 Portfolio: Service Class
Investment Advisor: FMR Co., Inc.
Sub-advisor: FMR Co., Inc.
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2040 Portfolio: Service Class
Investment Advisor: FMR Co., Inc.
Sub-advisor: FMR Co., Inc.
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2050 Portfolio: Service Class
Investment Advisor: FMR Co., Inc.
Sub-advisor: FMR Co., Inc.
Investment Objective: The fund seeks high total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Reasonable income.
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective: Capital appreciation.
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: Fidelity Investments Money Management, Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: High level of current income.
Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class
This Sub-Account is only available in policies issued before December 31, 2017
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Long-term growth of capital.
Franklin Templeton Variable Insurance Products Trust - Franklin Mutual Global Discovery VIP Fund: Class 2
Investment Advisor: Franklin Mutual Advisers, LLC
Investment Objective: Seeks capital appreciation.
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Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value VIP Fund: Class 2
Investment Advisor: Franklin Advisory Services, LLC
Investment Objective: Seeks long-term total return.
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 2
Investment Advisor: Templeton Investment Counsel, LLC
Investment Objective: Seeks long-term capital growth.
Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond VIP Fund: Class 1
Investment Advisor: Franklin Advisers, Inc.
Investment Objective: Seeks high current income, consistent with preservation of capital, with capital appreciation as a secondary consideration.
Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond VIP Fund: Class 2
This Sub-Account is no longer available to receive transfers or new premium payments effective May 1, 2014
Investment Advisor: Franklin Advisers, Inc.
Investment Objective: High current income, consistent with preservation of capital, with capital appreciation as a secondary consideration.
Goldman Sachs Variable Insurance Trust - Goldman Sachs Growth Opportunities Fund: Service Shares
This Sub-Account is only available in policies issued before December 31, 2016
Investment Advisor: Goldman Sachs Asset Management, L.P.
Investment Objective: Long-term growth of capital.
Goldman Sachs Variable Insurance Trust - Goldman Sachs Small Cap Equity Insights Fund: Institutional Shares
Investment Advisor: Goldman Sachs Asset Management, L.P.
Investment Objective: Seeks long-term growth of capital.
Invesco - Invesco V.I. Growth and Income Fund: Series I Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: To seek long-term growth of capital and income.
Invesco - Invesco V.I. High Yield Fund: Series I Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Total return, comprised of current income and capital appreciation.
Invesco - Invesco V.I. International Growth Fund: Series I Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Long-term growth of capital.
Invesco - Invesco V.I. Mid Cap Core Equity Fund: Series I Shares
This Sub-Account is only available in policies issued before December 31, 2015
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Long-term growth of capital.
Invesco - Invesco V.I. Mid Cap Growth Fund: Series I Shares
This Sub-Account is only available in policies issued before December 31, 2011
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Capital growth.
Invesco - Invesco V.I. Small Cap Equity Fund: Series I Shares
This Sub-Account is only available in policies issued before December 31, 2017
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Long-term growth of capital.
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Ivy Variable Insurance Portfolios - Asset Strategy (formerly, Ivy Funds Variable Insurance Portfolios - Asset Strategy)
This Sub-Account is only available in policies issued before December 31, 2017
Investment Advisor: Ivy Investment Management Company
Investment Objective: To seek to provide total return.
Ivy Variable Insurance Portfolios - Growth (formerly, Ivy Funds Variable Insurance Portfolios - Growth)
Investment Advisor: Ivy Investment Management Company
Investment Objective: To seek to provide growth of capital.
Ivy Variable Insurance Portfolios - High Income (formerly, Ivy Funds Variable Insurance Portfolios - High Income)
This Sub-Account is only available in policies issued before December 31, 2017
Investment Advisor: Ivy Investment Management Company
Investment Objective: To seek to provide total return through a combination of high current income and capital appreciation.
Ivy Variable Insurance Portfolios - Mid Cap Growth (formerly, Ivy Funds Variable Insurance Portfolios - Mid Cap Growth)
Investment Advisor: Ivy Investment Management Company
Investment Objective: To seek to provide growth of capital.
Ivy Variable Insurance Portfolios - Real Estate Securities (formerly, Ivy Funds Variable Insurance Portfolios - Real Estate Securities)
Investment Advisor: Ivy Investment Management Company
Sub-advisor: Advantus Capital Management, Inc.
Investment Objective: To seek to provide total return through capital appreciation and current income.
Ivy Variable Insurance Portfolios - Science and Technology (formerly, Ivy Funds Variable Insurance Portfolios - Science and Technology)
Investment Advisor: Ivy Investment Management Company
Investment Objective: To seek to provide growth of capital.
Janus Aspen Series - Balanced Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term capital growth, consistent with preservation of capital and balanced by current income.
Janus Aspen Series - Enterprise Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Janus Aspen Series - Flexible Bond Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Maximum total return, consistent with preservation of capital.
Janus Aspen Series - Forty Portfolio: Service Shares
This Sub-Account is only available in policies issued before December 31, 2014
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Janus Aspen Series - Global Technology Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Janus Aspen Series - Overseas Portfolio: Service Shares
This Sub-Account is only available in policies issued before December 31, 2016
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
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Janus Aspen Series - Perkins Mid Cap Value Portfolio: Service Shares
This Sub-Account is only available in policies issued before December 31, 2016
Investment Advisor: Janus Capital Management LLC
Sub-advisor: Perkins Investment Management LLC ("Perkins")
Investment Objective: Capital appreciation.
JPMorgan Insurance Trust - JPMorgan Insurance Trust Mid Cap Value Portfolio: Class 1
Investment Advisor: J.P. Morgan Investment Management Inc.
Investment Objective: Capital appreciation with the secondary goal of achieving current income by investing primarily in equity securities.
JPMorgan Insurance Trust - JPMorgan Insurance Trust Small Cap Core Portfolio: Class 1
Investment Advisor: J.P. Morgan Investment Management Inc.
Investment Objective: The Portfolio seeks capital growth over the long term.
Lazard Retirement Series, Inc. - Lazard Retirement Emerging Markets Equity Portfolio: Service Shares
Investment Advisor: Lazard Asset Management LLC
Investment Objective: Long-term capital appreciation.
Legg Mason Partners Variable Equity Trust - ClearBridge Variable Small Cap Growth Portfolio: Class I
Investment Advisor: Legg Mason Partners Fund Advisor, LLC
Sub-advisor: ClearBridge Investments, LLC
Investment Objective: The fund seeks long-term growth of capital.
Lincoln Variable Insurance Products Trust - LVIP Baron Growth Opportunities Fund: Service Class
This Sub-Account is only available in policies issued before December 31, 2011
Investment Advisor: Lincoln Investment Advisors Corporation (LIA)
Sub-advisor: BAMCO, Inc.
Investment Objective: Capital appreciation.
Lord Abbett Series Fund, Inc. - Bond Debenture Portfolio: Class VC
Investment Advisor: Lord, Abbett & Co. LLC
Investment Objective: To seek high current income and the opportunity for capital appreciation to produce a high total return.
Lord Abbett Series Fund, Inc. - Short Duration Income Portfolio: Class VC
Investment Advisor: Lord, Abbett & Co. LLC
Investment Objective: The Fund’s investment objective is to seek a high level of income consistent with preservation of capital.
Lord Abbett Series Fund, Inc. - Total Return Portfolio: Class VC
Investment Advisor: Lord, Abbett & Co. LLC
Investment Objective: The Fund’s investment objective is to seek income and capital appreciation to produce a high total return.
MFS® Variable Insurance Trust - MFS New Discovery Series: Service Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
MFS® Variable Insurance Trust - MFS Total Return Bond Series: Service Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: The fund’s investment objective is to seek total return with an emphasis on current income, but also considering capital appreciation.
MFS® Variable Insurance Trust - MFS Value Series: Service Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
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MFS® Variable Insurance Trust II - MFS Blended Research® Core Equity Portfolio: Service Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
MFS® Variable Insurance Trust II - MFS International Value Portfolio: Service Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: The fund’s investment objective is to seek capital appreciation. MFS normally invests the fund’s assets primarily in foreign equity securities, including emerging market equity securities.
MFS® Variable Insurance Trust II - MFS Research International Portfolio: Service Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
Morgan Stanley Variable Insurance Fund, Inc. - Emerging Markets Debt Portfolio: Class I (formerly, The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class I)
Investment Advisor: Morgan Stanley Investment Management Inc.
Investment Objective: High total return by investing primarily in fixed income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries.
Morgan Stanley Variable Insurance Fund, Inc. - Global Real Estate Portfolio: Class II (formerly, The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II)
Investment Advisor: Morgan Stanley Investment Management Inc.
Sub-advisor: Morgan Stanley Investment Management Company
Investment Objective: The Portfolio seeks to provide current income and capital appreciation.
Morgan Stanley Variable Insurance Fund, Inc. - Growth Portfolio: Class I (formerly, The Universal Institutional Funds, Inc. - Growth Portfolio: Class I)
Investment Advisor: Morgan Stanley Investment Management Inc.
Investment Objective: Long-term capital appreciation by investing primarily in growth-oriented equity securities of large capitalization companies.
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I
This Sub-Account is only available in policies issued before December 31, 2012
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Federated Investment Management Company
Investment Objective: The Fund seeks to provide high current income.
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Investment Advisers LLC
Investment Objective: The Fund seeks long-term growth of capital by investing primarily in securities of companies that meet the fund's financial criteria and social policy.
Nationwide Variable Insurance Trust - NVIT Bond Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Bloomberg Barclays U.S. Aggregate Bond Index ("Aggregate Bond Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
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Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return through investment in both equity and fixed income securities.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The fund seeks a high level of total return consistent with a moderately conservative level of risk.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class I
This Sub-Account is only available in policies issued before December 31, 2012
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Lazard Asset Management, LLC and Standard Life Investments (Corporate Funds) Limited
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies located in emerging market countries.
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The fund seeks as high a level of current income as is consistent with the preservation of capital.
Nationwide Variable Insurance Trust - NVIT Government Money Market Fund: Class V (formerly, Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class V)
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Federated Investment Management Company
Investment Objective: The Fund seeks as high a level of current income as is consistent with preserving capital and maintaining liquidity.
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Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Lazard Asset Management LLC
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies in Europe, Australasia, the Far East and other regions, including developing countries.
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the MSCI Europe, Australasia and Far East Index ("MSCI EAFE® Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class II
This Sub-Account is no longer available to receive transfers or new premium payments effective May 1, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the Morgan Stanley Capital International Europe, Australasia and Far East Index ("MSCI EAFE® Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Conservative Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderate Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderately Aggressive Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderately Conservative Fund seeks a high level of total return consistent with a moderately conservative level of risk.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks capital appreciation.
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Nationwide Variable Insurance Trust - NVIT Multi Sector Bond Fund: Class I
This Sub-Account is only available in policies issued before December 31, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Logan Circle Partners, L.P.
Investment Objective: The Fund seeks to provide above average total return over a market cycle of three to five years.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Massachusetts Financial Services Company; Smith Asset Management Group; and Loomis, Sayles & Company L.P.
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Massachusetts Financial Services Company; The Boston Company Asset Management, LLC; Wellington Management Company, LLP
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Investment Advisers LLC; Wells Capital Management, Inc.
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: American Century Investment Management, Inc.; Thompson, Siegel & Walmsley LLC; WEDGE Capital Management L.L.P.
Investment Objective: The fund seeks long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: OppenheimerFunds, Inc.; Wellington Management Company, LLP
Investment Objective: The Fund seeks capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Epoch Investment Partners, Inc.; JPMorgan Investment Management Inc.
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Jacobs Levy Equity Management, Inc.; OppenheimerFunds, Inc.; Putnam Investment Management, LLC
Investment Objective: The Fund seeks long-term growth of capital.
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class I
This Sub-Account is only available in policies issued before December 31, 2014
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: HighMark Capital Management, Inc.
Investment Objective: The Fund seeks total return through a flexible combination of capital appreciation and current income.
Nationwide Variable Insurance Trust - NVIT Real Estate Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Brookfield Investment Management, Inc.
Investment Objective: The Fund seeks current income and long-term capital appreciation.
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Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The Fund seeks to provide a high level of current income while preserving capital and minimizing fluctuations in share value.
Neuberger Berman Advisers Management Trust - AMT Large Cap Value Portfolio: I Class Shares
This Sub-Account is only available in policies issued before December 31, 2012
Investment Advisor: Neuberger Berman Investment Advisers LLC
Investment Objective: The Fund seeks long-term growth of capital.
Neuberger Berman Advisers Management Trust - AMT Mid Cap Intrinsic Value Portfolio: I Class Shares
This Sub-Account is only available in policies issued before December 31, 2012
Investment Advisor: Neuberger Berman Investment Advisers LLC
Investment Objective: The fund seeks growth of capital.
Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund/VA: Non-Service Shares
This Sub-Account is only available in policies issued before December 31, 2012
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The investment seeks capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer International Growth Fund/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap Fund®/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: Capital appreciation.
PIMCO Variable Insurance Trust - All Asset Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Sub-advisor: Research Affiliates, LLC
Investment Objective: The Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management.
Designation: FF
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (U.S. Dollar-Hedged): Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Administrative Class
This Sub-Account is only available in policies issued before December 31, 2017
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return consistent with preservation of capital and prudent investment management.
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PIMCO Variable Insurance Trust - Global Bond Portfolio (Unhedged): Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Fund seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO Variable Insurance Trust - Long-Term U.S. Government Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO Variable Insurance Trust - Low Duration Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management.
PIMCO Variable Insurance Trust - Real Return Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management.
PIMCO Variable Insurance Trust - Total Return Portfolio: Administrative Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: The Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management.
Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class I
This Sub-Account is only available in policies issued before December 31, 2012
Investment Advisor: Pioneer Investment Management, Inc.
Investment Objective: Long-term growth of capital.
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class I
Investment Advisor: Pioneer Investment Management, Inc.
Investment Objective: Maximize total return through a combination of income and capital appreciation.
Putnam Variable Trust - Putnam VT Small Cap Value Fund: Class IB
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited
Investment Objective: Seeks capital appreciation.
Royce Capital Fund - Royce Micro-Cap Portfolio: Investment Class
This Sub-Account is only available in policies issued before December 31, 2016
Investment Advisor: Royce & Associates, LP
Investment Objective: Long-term capital growth.
Designation: FF
T. Rowe Price Equity Series, Inc. - T. Rowe Price Blue Chip Growth Portfolio
Investment Advisor: T. Rowe Price Associates, Inc.
Investment Objective: The fund seeks to provide long-term capital growth. Income is a secondary objective.
T. Rowe Price Equity Series, Inc. - T. Rowe Price Equity Income Portfolio: II
Investment Advisor: T. Rowe Price Associates, Inc.
Investment Objective: The fund seeks a high level of dividend income and long-term capital growth primarily through investments in stocks.
T. Rowe Price Equity Series, Inc. - T. Rowe Price New America Growth Portfolio
Investment Advisor: T. Rowe Price Associates, Inc.
Investment Objective: The fund seeks to provide long-term capital growth by investing primarily in the common stocks of growth companies.
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T. Rowe Price Equity Series, Inc. - T. Rowe Price Personal Strategy Balanced Portfolio
Investment Advisor: T. Rowe Price Associates, Inc.
Investment Objective: The fund seeks the highest total return over time consistent with an emphasis on both capital appreciation and income.
T. Rowe Price Fixed Income Series, Inc. - T. Rowe Price Limited-Term Bond Portfolio
Investment Advisor: T. Rowe Price Associates, Inc.
Investment Objective: The fund seeks a high level of income consistent with moderate fluctuations in principal value.
VanEck VIP Trust - VanEck VIP Global Hard Assets Fund: Initial Class
Investment Advisor: Van Eck Associates Corporation
Investment Objective: Long-term capital appreciation by investing primarily in hard asset securities. Income is a secondary consideration.
Wells Fargo Variable Trust - VT Discovery Fund: Class 2
Investment Advisor: Wells Fargo Funds Management, LLC
Sub-advisor: Wells Capital Management, Inc.
Investment Objective: Seeks long-term capital appreciation.
Wells Fargo Variable Trust - VT Small Cap Growth Fund: Class 2
Investment Advisor: Wells Fargo Funds Management, LLC
Sub-advisor: Wells Capital Management, Inc.
Investment Objective: Seeks long-term capital appreciation.
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Appendix B: Definitions
Accumulation Unit – The measure of an investment in, or share of, a Sub-Account. Accumulation Unit values are initially set at $10 for each Sub-Account.
Attained Age – A person's Issue Age plus the number of full years since the Policy Date.
Base Policy Specified Amount – The amount of insurance coverage selected under the base policy, excluding any Rider Specified Amount.
Cash Surrender Value – The amount payable to the policy owner upon a full surrender of the policy. This amount is equal to the Enhanced Cash Value, minus Indebtedness and outstanding policy charges.
Cash Value – The total of amounts allocated to the Sub-Accounts, the policy loan account, and the Fixed Account.
Code – The Internal Revenue Code of 1986, as amended.
Death Benefit – The amount paid upon the Insured's death, before the deduction of any Indebtedness, reduction for any long-term care benefits paid, or due and unpaid policy charges.
Enhanced Cash Value – The sum of the policy's Cash Value plus the Enhancement Benefit, if applicable.
Enhancement Benefit – An additional amount added to the policy's Cash Value upon a full surrender of the policy during the applicable policy years, provided the qualifying conditions have been satisfied.
Excess Premium – Any Premium applied to the policy that is not considered Target Premium.
Fixed Account – An investment option that is funded by Nationwide's general account.
Grace Period – A 61-day period after which the Policy will Lapse if sufficient payments are not made to prevent Lapse.
In Force – Any time during which benefits are payable under the policy and any elected Rider(s).
Indebtedness – The total amount of all outstanding policy loans, including principal and interest due.
Insured – The person whose life is insured under the policy, and whose death triggers payment of the Death Benefit.
Investment Experience – The market performance of a mutual fund/Sub-Account.
Issue Age – A person's age based on their last birthday on or before the Policy Date.
Lapse – The policy terminates without value.
Long-Term Care Specified Amount – The maximum accumulation of benefits available under the Long-Term Care Rider. This amount must be at least 10% of the Total Specified Amount and no more than 100% of the Total Specified Amount. This amount is elected at the time the Rider is issued.
Maturity Date – The policy anniversary on which the Insured reaches Attained Age 100.
Minimum Required Death Benefit – The lowest Death Benefit that will qualify the policy as life insurance under the Code.
Nationwide – Nationwide Life Insurance Company, us, we, or our.
Net Amount At Risk – The policy's base Death Benefit minus the policy's Cash Value.
Net Asset Value (NAV) – The price of each share of a mutual fund in which a Sub-Account invests. NAV is calculated by subtracting the mutual fund's liabilities from its total assets, and dividing that figure by the number of shares outstanding. Nationwide uses NAV to calculate the value of Accumulation Units. NAV does not reflect deductions made for charges taken from the Sub-Accounts.
Net Premium – The amount of Premium applied to the policy after the deduction of the Percent of Premium Charge.
Policy Data Page(s) – The Policy Data Page(s) contains more detailed information about the policy, some of which is unique to the policy owner, the beneficiary, and the Insured.
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Policy Date – The date the policy takes effect as shown in the Policy Data Pages. Policy years, months, and anniversaries are measured from this date.
Policy owner or Owner – The person or entity named as the owner on the application, or the person or entity assigned ownership rights.
Policy Proceeds or Proceeds – The amount payable upon termination of the policy. Policy Proceeds may constitute the Death Benefit, the Maturity Proceeds, or the Cash Surrender Value upon a full surrender of the policy.
Premium – Amount(s) paid to purchase and maintain the policy.
Qualified Long-Term Care Services – Services that meet the requirements of §7702(B)(c)(1) of the Internal Revenue Code of 1986, as amended. Such services are as follows: necessary diagnostic, preventive, therapeutic, curative, treatment, mitigation and rehabilitative services, and maintenance or personal care services which are required by a chronically ill individual. These services are provided pursuant to a plan of care prescribed by a licensed health care practitioner.
Rider – An optional benefit purchased under the policy. Rider availability and Rider terms may vary depending on the state in which the policy was issued.
Rider Specified Amount – The portion of the Total Specified Amount attributable to the Supplemental Insurance Rider.
SEC – The Securities and Exchange Commission.
Service Center – The department of Nationwide responsible for receiving all service and transaction requests relating to the policy. For service and transaction requests submitted other than by telephone (including fax requests), the Service Center is Nationwide's mail and document processing facility. For service and transaction requests communicated by telephone, the Service Center is Nationwide’s operations processing facility, see Contacting the Service Center.
Sub-Account(s) – The mechanism used to account for allocations of Net Premium and Cash Value among the policy's variable investment options.
Substandard Rating – An underwriting classification based on medical and/or non-medical factors used to determine what to charge for life insurance based on characteristics of the Insured beyond traditional factors for standard risks, which include age, sex, and smoking habits of the Insured. Substandard Ratings are shown in the Policy Data Pages as rate class multiples (medical factors) and/or monthly flat extras (medical and/or non-medical factors). The higher the rate class multiple or monthly flat extra, the greater the risk assessed and the higher the cost of coverage.
Target Premium – The maximum amount of Premium the policy owner may pay to purchase Base Policy Specified Amount under Section 7702A of the Code and still have the policy treated as a life insurance contract for federal tax purposes. This is the maximum Premium that the policy owner may pay based on the "7-Pay method", which determines the limits on Premium payments in each of the first seven policy years. The actual amount is based on numerous factors which include the Issue Age of the Insured, Substandard Ratings (if any), and an adjustment for any Premium exchanged into the policy under Section 1035 of the Code.
Total Specified Amount – The sum of the Base Policy Specified Amount and the Rider Specified Amount, if applicable.
Valuation Period – The period during which Nationwide determines the change in the value of the Sub-Accounts. One Valuation Period ends and another begins with the close of trading on the NYSE.
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Appendix C: Factors Used in Calculating the Enhancement Benefit
The tables below show the current factors used to calculate the Enhancement Benefit for the first and last month of each policy year. The actual calculation will depend on the month the policy is surrendered because all factors decrease monthly during a policy year except for the first policy year. Policy owners may, free of charge, request a calculation of their current Enhancement Benefit by contacting the Service Center.
Enhancement Benefit Factors for Modified Endowment Contracts
    Base Policy Enhancement
Percentage 		  Rider Enhancement
Percentage 		  Enhancement
Cap Percentage
Policy Year   Month 1   Month 12   Month 1   Month 12  
1
   4.70%   4.70%   3.70%   3.70%   140%
2
   4.64%   3.94%   3.65%   3.09%   140%
3
   3.84%   2.70%   3.01%   2.10%   140%
4
   2.60%   1.53%   2.02%   1.18%   140%
5
   1.45%   0.61%   1.12%   0.46%   145%
6
   0.56%   0.00%   0.42%   0.00%   140%
7+
   0.00%   0.00%   0.00%   0.00%   0%
Enhancement Benefit Factors for Non-Modified Endowment Contracts
    Base Policy Enhancement
Percentage 		  Rider Enhancement
Percentage 		  Enhancement
Cap Percentage
Policy Year   Month 1   Month 12   Month 1   Month 12  
1
   10.28%   13.35%   4.05%   4.60%   140%
2
   13.14%   10.82%   4.52%   3.61%   140%
3
   10.54%   7.50%   3.50%   2.25%   140%
4
   7.22%   4.19%   2.17%   1.30%   140%
5
   3.97%   1.63%   1.24%   0.59%   145%
6
   1.49%   0.00%   0.54%   0.00%   140%
7+
   0.00%   0.00%   0.00%   0.00%   0%
Using the factors available in the tables above, here is an example of how an Enhancement Benefit would be calculated.
In this example, we will assume the following:
• A surrender is requested in the last month of policy year 2.
• The policy is a non-modified endowment contract.
• The Cash Value is $200,000.
• The Base Policy Specified Amount Allocation (as a percentage of the Total Specified Amount) is 75%.
• The Rider Specified Amount Allocation (as a percentage of the Total Specified Amount) is 25%.
• The Total Percent of Premium Charge Paid is $15,250.
Using these assumptions, the Enhancement Benefit, capped by the Enhancement Cap, is calculated as follows:
Enhancement Percentage x Cash Value
Where: Enhancement Percentage =(Base Policy Specified Amount Allocation x Base Enhancement Percentage) + (Rider Specified Amount Allocation x Rider Enhancement Percentage) =(0.75 x 10.82%) + (0.25 x 3.61%) = 9.0175%
  = 9.0175% x $200,000 =$18,035.00
Enhancement Cap = Enhancement Cap Percentage x Total Percent of Premium Charge Paid
  = 140% x $15,250 =$21,350.00
Since $18,035.00 is less than the $21,350.00 Enhancement Cap, the Enhancement Benefit here is $18,035.00
72

 

Appendix D: Examples of Policy Charge Blending
The tables and the calculations below show examples of how actual charges would be determined using a sample policy assuming the following:
• The policy is in policy year 3.
• The Total Specified Amount is $1,000,000.
• The Total Specified Amount is allocated 80% to Base Policy Specified Amount and 20% to Rider Specified Amount. Therefore, the Base Policy Specified Amount Allocation is 80% and Rider Specified Amount Allocation is 20%.
In each table, the first column after the "Policy Year" column shows charges associated with the base policy, the second column shows charges associated with the Supplemental Insurance Rider and the third column shows how those charges will be "blended" with an election of the Supplemental Insurance Rider. The "blending" calculates charges based on a weighted average of the Base Policy Specified Amount and Rider Specified Amount. To determine the weighed average, the charge amount attributed to base policy charges and rider charges are independently multiplied by their respective allocations and the result of each is added together to achieve the total charge assessed.
All of the tables and calculations examples use the current charges as disclosed in the "In Summary: Fee Tables" section of the prospectus. If maximum charges were used in these examples, the charges would be higher.
Percent of Premium Charge: Deducted from Each Premium Paid
Policy Year   Target Premium
Charge 		  Excess Premium
Charge 		  80%/20%
Charge Blend
1
   10.00%   4.00%   8.80%
2
   8.00%   3.00%   7.00%
3
   6.00%   2.00%   5.20%
4
   4.00%   2.00%   3.60%
5
   2.00%   2.00%   2.00%
Using the charges in the table above and the assumptions in the example listed above, here is how the total Percent of Premium Charge is calculated.
Total Percent of Premium Charge
= [(Base Policy Specified Amount Allocation) x (Target Premium Charge)] +
    [(Rider Specified Amount Allocation) x (Excess Premium Charge)]
= [(0.80) x (0.06)] + [(0.20) x (0.02)]
= [(0.048)] + [(0.004)]
= 0.052 or 5.20% of Premium received during the policy year.
Total Specified Amount Charge: Deducted Monthly from Cash Value
Policy Year   Base Policy Specified
Amount Charge 		  Rider Specified
Amount Charge 		  80%/20%
Charge Blend
1
   $80.00   $20.00   $68.00
2
   $80.00   $20.00   $68.00
3
   $80.00   $20.00   $68.00
4
   $80.00   $20.00   $68.00
5
   $80.00   $20.00   $68.00
Using the charges in the table above and the assumptions in the example listed above, here is how the Total Specified Amount charge is calculated.
Total Specified Amount Charge Per Month
= [(Base Policy Specified Amount Allocation) x (Base Policy Specified Amount Charge)] +
    [(Rider Specified Amount Allocation) x (Rider Specified Amount Charge)]
= [(0.80) x ($80.00)] + [(0.20) x ($20.00)]
= [($64.00)] + [($4.00)]
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= $68.00 deducted monthly from Cash Value.
Cost of Insurance Charge based on Issue Age of 45: Deducted Monthly from Cash Value*
Policy Year   Base Cost
of Insurance 		  Rider Cost
of Insurance 		  80%/20%
Charge Blend
1
   0.08689   0.04033   0.07758
2
   0.10017   0.04698   0.08953
3
   0.11223   0.05474   0.10073
4
   0.12556   0.06377   0.11320
5
   0.18135   0.07430   0.15994
* Cost of Insurance charge rates change each policy year based on the increasing age of the Insured.
Using the charges in the table above and the assumptions in the example listed above, here is how the Cost of Insurance Charge is calculated.
Cost of Insurance Charge
= [(Base Policy Specified Amount Allocation) x (Base Policy Cost of Insurance Charge)] +
    [(Rider Specified Amount Allocation) x (Rider Cost of Insurance Charge)]
= [(0.80) x (0.11223)] + [(0.20) x (0.05474)]
= [(0.089784)] + [(0.010948)]
= 0.10073 per $1,000 of Net Amount At Risk.
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Outside back cover page
To learn more about the policy, the policy owner should read the Statement of Additional Information (the "SAI") dated the same date as this prospectus. For a free copy of the SAI, to receive personalized illustrations of Death Benefits, Net Cash Surrender Values, and Cash Values, and to request other information about the policy contact the Service Center:
• by telephone at 1-877-351-8808 (TDD: 1-800-238-3035)
• by mail to Nationwide Life Insurance Company
Nationwide Business Solutions Group
One Nationwide Plaza, 1-11-401
Columbus, OH 43215-2220
The SAI has been filed with the SEC and is incorporated by reference into this prospectus. The SEC maintains an Internet website (http://www.sec.gov) that contains the SAI and other information about Nationwide Life Insurance Company and the policy. Information about Nationwide Life Insurance Company and the policy (including the SAI) may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC, or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, 100 F Street NE, Washington, DC 20549. Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090.
Investment Company Act of 1940 Registration File No. 811-08301
Securities Act of 1933 Registration File No. 333-169879

Nationwide VLI Separate Account-4
(Registrant)
Nationwide Life Insurance Company
(Depositor)
Service Center
Nationwide Business Solutions Group
One Nationwide Plaza, 1-11-401
Columbus, OH 43215-2220
1-877-351-8808
TDD: 1-800-238-3035
STATEMENT OF ADDITIONAL INFORMATION
Flexible Premium Adjustable Variable Universal Life Insurance Policies
This Statement of Additional Information ("SAI") contains additional information regarding Flexible Premium Adjustable Variable Universal Life Insurance Policies offered by Nationwide Life Insurance Company ("Nationwide"). This SAI is not a prospectus and should be read together with the policy prospectus dated May 1, 2017 and the prospectuses for the mutual funds. The prospectus is incorporated by reference in this SAI. Copies may be obtained FREE OF CHARGE by writing or calling the Service Center. Capitalized terms in this SAI correspond to terms defined in the prospectus.
The date of this Statement of Additional Information is May 1, 2017.
TABLE OF CONTENTS

 


General Information and History
Nationwide VLI Separate Account-4 (the "Variable Account") is a separate investment account of Nationwide Life Insurance Company ("Nationwide"). Nationwide is a stock life insurance company organized under the laws of the State of Ohio in March 1929 with its Home Office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide provides life insurance, annuities and retirement products. Nationwide is admitted to do business in all states, the District of Columbia, Guam, the U.S. Virgin Islands, and Puerto Rico. Nationwide is a member of the Nationwide group of companies and all of its common stock is owned by Nationwide Financial Services, Inc. ("NFS"), a holding company. Nationwide Corporation owns all of NFS's common stock and is a holding company, as well. All of Nationwide Corporation's common stock is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), the ultimate controlling persons of the 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 $209 billion as of December 31, 2016.
Nationwide VLI Separate Account-4
Nationwide VLI Separate Account-4 is a separate account that invests in mutual funds offered and sold to insurance companies and certain retirement plans. Nationwide established the Variable Account on December 3, 1987 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, the SEC does not supervise the management of Nationwide or the management of the Variable Account. Nationwide serves as the custodian of the assets of the Variable Account.
Nationwide Investment Services Corporation (NISC)
The policies are distributed by NISC, located at One Nationwide Plaza, Columbus, Ohio 43215, a wholly owned subsidiary of Nationwide. For policies issued in Michigan, all references to NISC will mean Nationwide Investment Svcs. Corporation. NISC was organized as an Oklahoma corporation in 1981.
The policies will be sold on a continuous basis by licensed insurance agents in those states where the policies may lawfully be sold. Agents are registered representatives of broker dealers registered under the Securities Exchange Act of 1934 who are member firms of the Financial Industry Regulatory Authority (FINRA).
Nationwide paid no underwriting commissions to NISC for each of the separate account’s last three fiscal years.
Services
Nationwide or its affiliates provide services and incur expenses in promoting, marketing, or administrative services to the underlying funds. Nationwide or its affiliates have entered into agreements with the investment advisor and/or distributor for the underlying funds relating to the services Nationwide or its affiliates provide. For these services, some funds agree to pay mutual fund service fee payments 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 the particular underlying fund.
These anticipated mutual fund service fee payments were taken into consideration when determining the expenses necessary to support the policies. Without these mutual fund service fee payments, policy charges would be higher. Generally, Nationwide expects to receive somewhere between 0.10% to 0.55% (an annualized rate of the daily net assets of the Variable Account) from the funds offered in the policies. What is actually received depends upon many factors, including but not limited to the type of fund (i.e., money market funds generally pay less mutual fund service fee payments than other fund types) and the types of services for which an underlying fund, or its distributor or advisor, pays mutual fund service fee payments.
Distribution, Promotional, and Sales Expenses
In addition to or partially in lieu of commission, Nationwide may pay the selling firms a marketing allowance, which is based on the firm's ability and demonstrated willingness to promote and market Nationwide's products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities that may contribute to the promotion and marketing of Nationwide's products. Nationwide makes certain assumptions about the amount of marketing allowance it will pay and takes these assumptions into consideration when it determines the charges that will be assessed under the policies. Nationwide assumed 0.00% of the Commissionable Target Premium for
2

 

marketing allowance when determining the charges for the contracts. The actual amount of the marketing allowance may be higher or lower than this assumption. If the actual amount of marketing allowance paid is more than what was assumed, Nationwide will fund the difference. If the actual amount of marketing allowance paid is less than what was assumed, Nationwide may use the excess to pay other sales expenses, non-sales expenses, and/or profit. For more information about marketing allowance or how a particular selling firm uses marketing allowances, consult with your registered representative.
Commissionable Target Premium (CTP) is an amount used in the calculation of the Premium Load and total compensation Nationwide pays. CTP is actuarially derived based on the Base Policy Specified Amount, the Insured’s characteristics and the death benefit option of the policy.
Independent Registered Public Accounting Firm
The financial statements of Nationwide VLI Separate Account-4 and the consolidated financial statements and schedules of Nationwide Life Insurance Company and subsidiaries for the periods indicated have been included herein in reliance upon the reports of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP is located at 191 West Nationwide Blvd., Suite 500, Columbus, Ohio 43215.
Underwriting Procedure
Nationwide underwrites the policies issued through Nationwide VLI Separate Account-4. The policy's cost of insurance depends upon the Insured's Issue Age, underwriting class, and the length of time the policy has been In Force. The rates will vary depending upon tobacco use and other risk factors. Monthly cost of insurance rates will not exceed those guaranteed in the policy.
Guaranteed cost of insurance rates for base coverage and coverage pursuant to the Supplemental Insurance Rider under policies issued on a non-medical basis are based on (i) the 2001 Commissioners' Standard Ordinary 80% Male Mortality Table, (ii) Attained Age, (iii) Substandard Ratings, and (iv) tobacco distinct status. Guaranteed cost of insurance rates for base coverage and coverage pursuant to the Supplemental Insurance Rider under policies issued on a medical basis are based on (i) either (a) the 2001 Commissioners' Standard Ordinary 100% Male Mortality Table or (b) the 2001 Commissioners' Standard Ordinary 100% Female Mortality Table, (ii) Attained Age, (iii) Substandard Ratings, and (iv) tobacco distinct status. Guaranteed cost of insurance rates for base coverage and coverage pursuant to the Supplemental Insurance Rider on substandard risks will equal the guaranteed cost of insurance rates for standard risks times a percentage greater than 100%.
The underwriting class of an Insured may affect the cost of insurance rate. There are three underwriting classes into which Insureds are placed, depending on the Insureds' mortality characteristics: Guaranteed Issue, Simplified Issue, and Regular Issue. In an otherwise identical policy, an Insured in the Regular Issue underwriting class will have a lower cost of insurance than an Insured in the Guaranteed Issue or Simplified Issue underwriting class.
The rating class is determined using questionnaires, medical records, and physical exams, depending on the amount of insurance and the attributes of the Insured. Nationwide may underwrite using short-form questionnaires or abbreviated medical evaluations.
Net Amount at Risk
The policy's cost of insurance is also dependent on the policy's Net Amount At Risk. The Net Amount At Risk is allocated between coverage provided by the base policy and coverage provided by the Supplemental Insurance Rider. The Net Amount At Risk for the base policy is the base policy Death Benefit minus the policy's Cash Value. The Net Amount At Risk for the Supplemental Insurance Rider is the Rider Death Benefit (as described in the "Supplemental Insurance Rider" sub-section of the "Policy and Rider Charges" section of the prospectus).
Illustrations
Nationwide will provide illustrations of future benefits under the policy before the policy is purchased and upon request thereafter. Nationwide may assess a $25 fee for this service to persons who request more than one policy illustration during a policy year.
3

 

Note: The policy owner selects the Premium amount and frequency shown in the policy illustration to show Nationwide how much Premium the policy owner intends to pay and when. Illustrated Premium and hypothetical rates of return are not guaranteed. Investment Experience varies over time, is rarely the same year-over-year, and may be negative. Because the policy is a variable universal life insurance policy with the potential for unfavorable Investment Experience, including extended periods of significant stock market decline, additional Premium may be required to meet a policy owner's goals and/or to prevent the policy from Lapsing. Generally, variable universal life insurance is considered a long-term investment. Policy owners should weigh the investment risk and costs associated with the policy against their objectives, time horizon, risk tolerance, and ability to pay additional Premium if necessary.
Advertising
Rating Agencies
Independent financial rating services, including Moody's, Standard & Poor's and A.M. Best Company rank and rate Nationwide. The purpose of these ratings is to reflect the financial strength or claims-paying ability of Nationwide. The ratings are not intended to reflect the Investment Experience or financial strength of the Variable Account. Nationwide may advertise these ratings from time to time. In addition, Nationwide may include in certain advertisements, endorsements in the form of a list of organizations, individuals or other parties which recommend Nationwide or the policies. Furthermore, Nationwide may occasionally include in advertisements comparisons of currently taxable and tax deferred investment programs, based on selected tax brackets, or discussions of alternative investment vehicles and general economic conditions.
Money Market Yields
Nationwide may advertise the "yield" and "effective yield" for the money market Sub-Account. Yield and effective yield are annualized, which means that it is assumed that the underlying mutual fund generates the same level of net income throughout a year.
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 underlying mutual fund's units. The effective yield is calculated similarly, but reflects assumed compounding, calculated under rules prescribed by the SEC. Thus, effective yield will be slightly higher than yield, due to the compounding.
Historical Performance of the Sub-Accounts
Nationwide will advertise historical performance of the Sub-Accounts in accordance with SEC prescribed calculations. Performance information is annualized. However, if a Sub-Account has been available in the Variable Account for less than one year, the performance information for that Sub-Account is not annualized. Performance information is based on historical earnings and is not intended to predict or project future results.
Additional Materials
Nationwide may provide information on various topics to owners and prospective purchasers in advertising, sales literature, or other materials.
Tax Definition of Life Insurance
Section 7702(b)(1) of the Internal Revenue Code provides that if one of two alternate tests is met, a policy will be treated as life insurance for federal tax purposes. The two tests are referred to as the Guideline Premium/Cash Value Corridor Test and the Cash Value Accumulation Test. Both tests are available to flexible premium policies such as this one.
The tables that follow show, numerically, the requirements for each test.
Guideline Premium/Cash Value Corridor Test
Table of Applicable Percentages of Cash Value
Attained Age
of Insured 		  Percentage of
Cash Value
0-40   250%
41   243%
Attained Age
of Insured 		  Percentage of
Cash Value
42   236%
43   229%
Attained Age
of Insured 		  Percentage of
Cash Value
44   222%
45   215%
4

 

Attained Age
of Insured 		  Percentage of
Cash Value
46   209%
47   203%
48   197%
49   191%
50   185%
51   178%
52   171%
53   164%
54   157%
55   150%
56   146%
57   142%
58   138%
59   134%
60   130%
61   128%
62   126%
63   124%
64   122%
Attained Age
of Insured 		  Percentage of
Cash Value
65   120%
66   119%
67   118%
68   117%
69   116%
70   115%
71   113%
72   111%
73   109%
74   107%
75   105%
76   105%
77   105%
78   105%
79   105%
80   105%
81   105%
82   105%
83   105%
Attained Age
of Insured 		  Percentage of
Cash Value
84   105%
85   105%
86   105%
87   105%
88   105%
89   105%
90   105%
91   104%
92   103%
93   102%
94   101%
95   101%
96   101%
97   101%
98   101%
99   101%
100   100%
Cash Value Accumulation Test
The Cash Value Accumulation Test requires the Death Benefit to exceed an applicable percentage of the cash value. These applicable percentages are calculated by determining net single premiums, as defined in Code Section 7702(b), for each policy year given a set of actuarial assumptions. The relevant material assumptions include an interest rate of 4% and 2001 CSO guaranteed mortality as prescribed in Revenue Code Section 7702 for the Cash Value Accumulation Test. The resulting net single premiums are then inverted (i.e., multiplied by 1/net single premium) to give the applicable cash value percentages. These premiums vary with the age, sex, and risk classification of the Insured.
The table below provides an example of applicable percentages for the Cash Value Accumulation Test. This example is for a male, non-tobacco, Issue Age 45, and non-medically underwritten.
Table of Applicable Percentages of Cash Value
Policy
Year 		  Percentage of
Cash Value
1   347%
2   335%
3   324%
4   314%
5   304%
6   294%
7   284%
8   275%
9   266%
10   258%
11   250%
12   242%
13   235%
14   228%
15   221%
16   215%
17   209%
18   203%
19   197%
Policy
Year 		  Percentage of
Cash Value
20   192%
21   187%
22   182%
23   177%
24   173%
25   169%
26   165%
27   161%
28   157%
29   153%
30   150%
31   147%
32   145%
33   144%
34   142%
35   141%
36   140%
37   139%
38   138%
Policy
Year 		  Percentage of
Cash Value
39   134%
40   131%
41   128%
42   125%
43   122%
44   120%
45   117%
46   116%
47   115%
48   114%
49   112%
50   111%
51   110%
52   109%
53   107%
54   105%
55   103%
56   101%
5

NATIONWIDE

VLI SEPARATE

ACCOUNT-4

Annual Report

to

Contract Owners

December 31, 2016

 

LOGO

NATIONWIDE LIFE INSURANCE COMPANY

HOME OFFICE: COLUMBUS, OHIO

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and subsidiaries and

Contract Owners of Nationwide VLI Separate Account-4:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide VLI Separate Account-4 (comprised of the sub-accounts listed in note 1(b), (collectively, “the Accounts”)), as of December 31, 2016, and the related statements of operations for the period then ended, the statements of changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights 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, 2016, by correspondence with the transfer agents of the underlying mutual funds or by other appropriate auditing procedures. 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 and financial highlights referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2016, the results of their operations for the period then ended, the changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

/s/    KPMG LLP

Columbus, Ohio

March 21, 2017

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2016

 

Assets:

   

Investments at fair value:

   

VPS Dynamic Asset Allocation Portfolio - Class A (ALVDAA)

   

2,522 shares (cost $29,610)

    $ 29,325  

VP Inflation Protection Fund - Class I (ACVIP1)

   

1,865,508 shares (cost $19,328,377)

      18,897,600  

Asset Allocation Fund - Class 2 (AMVAA2)

   

378,930 shares (cost $8,093,590)

      8,143,198  

Bond Fund - Class 2 (AMVBD2)

   

6,727,549 shares (cost $74,512,284)

      71,782,949  

Global Small Capitalization Fund - Class 2 (AMVGS2)

   

65,648 shares (cost $1,553,163)

      1,294,582  

Growth Fund - Class 2 (AMVGR2)

   

263,814 shares (cost $18,515,784)

      17,654,437  

International Fund - Class 2 (AMVI2)

   

366,460 shares (cost $6,853,769)

      6,141,863  

New World Fund - Class 2 (AMVNW2)

   

19,558 shares (cost $379,050)

      382,160  

Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund - Class I (BRVHYI)

   

679,774 shares (cost $4,763,176)

      4,921,562  

Large Cap Core V.I. Fund - Class II (MLVLC2)

   

52,083 shares (cost $1,645,855)

      1,663,540  

Global Allocation V.I. Fund - Class II (MLVGA2)

   

587,293 shares (cost $9,639,913)

      9,079,555  

VP S&P 500 Index Portfolio (CVSPIP)

   

5,792 shares (cost $672,233)

      709,206  

Value Portfolio (DAVVL)

   

398,182 shares (cost $4,142,137)

      3,623,456  

VIP Emerging Markets Series: Service Class (DWVEMS)

   

172,762 shares (cost $3,063,235)

      3,088,983  

VIP Small Cap Value Series: Service Class (DWVSVS)

   

469,688 shares (cost $17,366,691)

      18,632,517  

VA Inflation-Protected Securities Portfolio (DFVIPS)

   

516,815 shares (cost $5,291,356)

      5,121,641  

VA International Small Portfolio (DFVIS)

   

77,018 shares (cost $912,636)

      877,237  

VA U.S. Targeted Value Portfolio (DFVUTV)

   

144,331 shares (cost $2,656,829)

      2,789,926  

Stock Index Fund, Inc. - Initial Shares (DSIF)

   

10,432,529 shares (cost $386,194,929)

      478,435,765  

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

   

297,991 shares (cost $9,540,457)

      11,281,923  

Global Income Builder VIP - Class A (DSGIBA)

   

1,041 shares (cost $24,206)

      24,456  

Floating-Rate Income Fund (ETVFR)

   

7,746,889 shares (cost $71,412,256)

      71,736,192  

Franklin Income Securities Fund - Class 2 (FTVIS2)

   

437,768 shares (cost $6,852,226)

      6,732,871  

Rising Dividends Securities Fund - Class 1 (FTVRDI)

   

652,058 shares (cost $16,354,368)

      16,633,997  

Small Cap Value Securities Fund - Class 1 (FTVSVI)

   

545,631 shares (cost $9,570,190)

      10,874,429  

Small Cap Value Securities Fund - Class 2 (FTVSV2)

   

566,934 shares (cost $10,658,451)

      10,975,852  

Mutual Global Discovery Securities Fund - Class 2 (FTVMD2)

   

109,743 shares (cost $2,356,614)

      2,163,031  

Templeton Developing Markets Securities Fund - Class 2 (FTVDM2)

   

327,867 shares (cost $2,902,090)

      2,413,102  

Templeton Foreign Securities Fund - Class 1 (TIF)

   

71,339 shares (cost $1,065,796)

      990,903  

Templeton Foreign Securities Fund - Class 2 (TIF2)

   

1,794,611 shares (cost $28,252,106)

      24,424,653  

Templeton Global Bond Securities Fund - Class 2 (FTVGI2)

   

480,025 shares (cost $8,564,899)

      7,800,407  

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

   

91,667 shares (cost $665,962)

      649,005  

VIP Trust - Templeton Global Bond VIP Fund: Class 1 (FTVGB1)

   

866,334 shares (cost $14,673,110)

      14,597,720  

Van Kampen V.I. Mid Cap Growth Fund - Series I Shares (IVKMG1)

   

691,882 shares (cost $3,810,728)

      3,383,304  

Balanced-Risk Allocation Fund: Series I Shares (IVBRA1)

   

131,083 shares (cost $1,493,140)

      1,486,484  

Mid Cap Value Portfolio: Class 1 (JPMMV1)

   

3,075,441 shares (cost $32,158,470)

      33,768,341  

Small Cap Core Portfolio 1 (JPSCE1)

   

4,673 shares (cost $93,250)

      105,104  

Balanced Portfolio: Service Shares (JABS)

   

882,157 shares (cost $27,738,901)

      28,132,001  

Enterprise Portfolio: Service Shares (JAMGS)

   

87,632 shares (cost $4,866,892)

      4,926,647  

Flexible Bond Portfolio: Service Shares (JAFBS)

   

1,095,339 shares (cost $14,170,107)

      13,834,131  

Forty Portfolio: Service Shares (JACAS)

   

1,334,736 shares (cost $47,906,724)

      41,096,537  

Global Technology Portfolio: Service Shares (JAGTS)

   

1,765,830 shares (cost $13,356,675)

      14,991,896  

Overseas Portfolio: Service Shares (JAIGS)

   

814,051 shares (cost $26,985,266)

      19,431,401  

Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

   

88,917 shares (cost $1,381,240)

      1,431,563  

Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)

   

1,651,880 shares (cost $31,552,431)

      31,005,781  

Lord Abbett Series Fund Inc. - Bond Debenture Portfolio: Class VC (LOVBD)

   

210,923 shares (cost $2,302,446)

      2,518,417  

Lord Abbett Series Fund Inc. - Mid Cap Stock Portfolio: Class VC (LOVMCV)

   

4,636 shares (cost $120,463)

      118,299  

Series Fund, Inc. - Total Return Portfolio - Class VC (LOVTRC)

   

697,385 shares (cost $11,741,263)

      11,458,036  

Lord Abbett Series Fund Inc. - Short Duration Income Portfolio: Class VC (LOVSDC)

   

822,288 shares (cost $12,275,537)

      11,980,740  

VIT II - MFS Blended Research Core Equity Portfolio - Service Class (MVBRES)

   

14,569 shares (cost $688,067)

      673,976  

Var Insurance Trust II - MFS Investors Growth Stock Portfolio: Initial Class (MV2IGI)

   

184,515 shares (cost $3,196,333)

      2,837,847  

Var Insurance Trust II - MFS Research International Portfolio: Service Class (MV2RIS)

   

194,277 shares (cost $2,952,754)

      2,599,431  

Variable Insurance Trust - MFS New Discovery Series - Intital Class (MNDIC)

   

20,915 shares (cost $343,084)

      338,410  

New Discovery Series - Service Class (MNDSC)

   

5,272 shares (cost $77,657)

      79,140  

Value Series - Initial Class (MVFIC)

   

634,482 shares (cost $10,753,058)

      11,991,705  

Value Series - Service Class (MVFSC)

   

3,492,204 shares (cost $63,887,726)

      64,920,077  

Variable Insurance Trust II - MFS International Value Portfolio - Service Class (MVIVSC)

   

3,707,369 shares (cost $76,838,527)

      82,414,814  

Core Plus Fixed Income Portfolio - Class I (MSVFI)

   

187,688 shares (cost $1,986,782)

      2,002,634  

Emerging Markets Debt Portfolio - Class I (MSEM)

   

2,784,828 shares (cost $23,512,002)

      21,693,813  

Global Real Estate Portfolio - Class II (VKVGR2)

   

470,074 shares (cost $4,851,738)

      4,869,972  

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio - Class I (MSVMG)

   

637,233 shares (cost $6,761,274)

      5,556,668  

Universal Institutional Funds, Inc. - Growth Portfolio - Class I (MSVEG)

   

64,971 shares (cost $1,815,454)

      1,601,529  

U.S. Real Estate Portfolio - Class I (MSVRE)

   

853,852 shares (cost $16,269,390)

      18,263,898  

NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

   

77 shares (cost $826)

      804  

NVIT Cardinal Managed Growth and Income Class I (NCPGI)

   

79 shares (cost $825)

      804  

NVIT Cardinal Managed Growth Class I (NCPG)

   

4,754 shares (cost $48,767)

      48,253  

NVIT Bond Index Fund Class I (NVBX)

   

9,547,955 shares (cost $102,733,537)

      98,725,850  

NVIT International Index Fund Class I (NVIX)

   

3,005,244 shares (cost $26,400,716)

      25,664,786  

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

   

2,515,961 shares (cost $38,430,580)

      41,186,276  

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

   

391,172 shares (cost $8,649,271)

      9,262,941  

American Funds NVIT Bond Fund - Class II (GVABD2)

   

121,416 shares (cost $1,414,627)

      1,373,214  

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

   

276,664 shares (cost $7,565,160)

      7,303,931  

American Funds NVIT Growth Fund - Class II (GVAGR2)

   

131,233 shares (cost $8,556,273)

      9,767,644  

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

   

63,437 shares (cost $2,901,880)

      3,277,773  

Federated NVIT High Income Bond Fund - Class I (HIBF)

   

3,393,874 shares (cost $22,851,305)

      22,161,996  

NVIT Emerging Markets Fund - Class I (GEM)

   

1,249,591 shares (cost $13,720,939)

      12,233,497  

NVIT International Equity Fund - Class I (GIG)

   

1,763,416 shares (cost $18,305,930)

      16,611,376  

Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II (NVIE6)

   

20,082 shares (cost $169,746)

      187,768  

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

   

1,630,815 shares (cost $14,521,706)

      15,835,213  

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

   

19,337 shares (cost $282,925)

      254,286  

NVIT Cardinal Aggressive Fund - Class I (NVCRA1)

   

420,976 shares (cost $4,160,918)

      3,902,444  

NVIT Cardinal Balanced Fund - Class I (NVCRB1)

   

16,615,722 shares (cost $173,500,844)

      179,948,267  

NVIT Cardinal Capital Appreciation Fund - Class I (NVCCA1)

   

606,111 shares (cost $6,854,376)

      6,261,125  

NVIT Cardinal Conservative Fund - Class I (NVCCN1)

   

399,257 shares (cost $4,183,131)

      3,980,593  

NVIT Cardinal Moderate Fund - Class I (NVCMD1)

   

658,054 shares (cost $7,510,581)

      6,922,724  

NVIT Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

   

745,012 shares (cost $7,768,726)

      6,816,856  

NVIT Cardinal Moderately Conservative Fund - Class I (NVCMC1)

   

414,301 shares (cost $4,661,722)

      4,358,446  

NVIT Core Bond Fund - Class I (NVCBD1)

   

154,825 shares (cost $1,707,980)

      1,650,434  

NVIT Core Plus Bond Fund - Class I (NVLCP1)

   

199,895 shares (cost $2,294,388)

      2,222,834  

NVIT Nationwide Fund - Class I (TRF)

   

8,222,868 shares (cost $89,194,176)

      131,648,112  

NVIT Government Bond Fund - Class I (GBF)

   

4,956,368 shares (cost $55,867,308)

      53,132,260  

NVIT International Index Fund - Class II (GVIX2)

   

270,355 shares (cost $2,565,771)

      2,308,830  

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

   

1,851,454 shares (cost $20,281,185)

      23,254,258  

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

   

105,216 shares (cost $1,584,907)

      1,590,863  

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

   

44,466 shares (cost $785,307)

      758,592  

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

   

1,390,968 shares (cost $14,367,965)

      13,812,309  

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

   

5,044,848 shares (cost $55,479,998)

      62,909,259  

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

   

6,596,756 shares (cost $73,386,701)

      86,549,441  

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

   

1,526,157 shares (cost $16,898,901)

      16,894,558  

NVIT Mid Cap Index Fund - Class I (MCIF)

   

4,439,493 shares (cost $97,065,820)

      107,613,309  

NVIT Money Market Fund - Class I (SAM)

   

46,054,585 shares (cost $46,054,585)

      46,054,585  

NVIT Money Market Fund - Class V (SAM5)

   

149,888,754 shares (cost $149,888,754)

      149,888,754  

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

   

1,455,290 shares (cost $17,089,719)

      14,087,211  

NVIT Multi-Manager International Value Fund - Class I (GVDIVI)

   

485,907 shares (cost $5,310,028)

      4,684,143  

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

   

1,085,630 shares (cost $12,205,099)

      11,876,795  

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

   

1,807,143 shares (cost $18,730,828)

      18,396,719  

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

   

4,329,375 shares (cost $45,181,551)

      43,899,865  

NVIT Multi-Manager Mid Cap Value Fund - Class I (NVMMV1)

   

123,135 shares (cost $1,334,417)

      1,306,467  

NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)

   

1,338,290 shares (cost $14,483,729)

      14,252,785  

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

   

1,162,778 shares (cost $20,775,224)

      18,116,080  

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

   

2,940,662 shares (cost $35,075,401)

      43,757,056  

NVIT Multi-Manager Small Company Fund - Class I (SCF)

   

2,159,709 shares (cost $43,301,945)

      46,368,946  

NVIT Multi-Sector Bond Fund - Class I (MSBF)

   

1,304,558 shares (cost $11,961,342)

      11,910,611  

NVIT Short Term Bond Fund - Class I (NVSTB1)

   

3,134,141 shares (cost $32,725,969)

      32,218,966  

NVIT Short Term Bond Fund - Class II (NVSTB2)

   

118,388 shares (cost $1,233,784)

      1,212,295  

NVIT Large Cap Growth Fund - Class I (NVOLG1)

   

8,485,076 shares (cost $143,376,732)

      134,997,557  

Templeton NVIT International Value Fund - Class III (NVTIV3)

   

53,597 shares (cost $650,266)

      569,195  

Invesco NVIT Comstock Value Fund - Class I (EIF)

   

650,132 shares (cost $7,651,829)

      11,422,819  

NVIT Real Estate Fund - Class I (NVRE1)

   

5,084,024 shares (cost $40,035,951)

      32,029,352  

Loring Ward NVIT Capital Appreciation Fund - Class P (NVLCAP)

   

3,641 shares (cost $37,318)

      40,963  

Loring Ward NVIT Moderate Fund - Class P (NVLMP)

   

662 shares (cost $7,308)

      7,620  

NVIT Small Cap Index Fund Class II (NVSIX2)

   

73,832 shares (cost $917,327)

      919,214  

NVIT S&P 500 Index Fund Class I (GVEX1)

   

335,948 shares (cost $4,876,346)

      5,056,024  

Short Duration Bond Portfolio - I Class Shares (AMTB)

   

375,814 shares (cost $4,035,502)

      3,953,562  

Guardian Portfolio - I Class Shares (AMGP)

   

46,155 shares (cost $817,376)

      676,627  

Mid-Cap Growth Portfolio - I Class Shares (AMCG)

   

83,031 shares (cost $1,928,961)

      1,877,338  

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)

   

48,526 shares (cost $1,071,520)

      1,024,866  

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

   

20,603 shares (cost $301,817)

      313,985  

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class I (AMRI)

   

331,278 shares (cost $4,770,451)

      5,601,903  

Socially Responsive Portfolio - I Class Shares (AMSRS)

   

90,699 shares (cost $1,551,700)

      2,047,077  

TOPS Managed Risk Balanced ETF Portfolio - Class 3 (NOTB3)

   

3,340 shares (cost $39,453)

      37,575  

TOPS Managed Risk Growth ETF Portfolio - Class 3 (NOTG3)

   

2,867 shares (cost $30,188)

      31,077  

TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

   

3,862 shares (cost $42,283)

      43,529  

VPS Growth and Income Portfolio - Class A (ALVGIA)

   

791,167 shares (cost $23,017,102)

      24,692,309  

VPS International Value Portfolio - Class A (ALVIVA)

   

680,140 shares (cost $9,453,734)

      9,032,262  

VPS Small/Mid Cap Value Portfolio - Class A (ALVSVA)

   

1,042,151 shares (cost $21,125,398)

      21,145,237  

VP Capital Appreciation Fund - Class I (ACVCA)

   

45,989 shares (cost $649,930)

      642,933  

VP Income & Growth Fund - Class I (ACVIG)

   

2,051,104 shares (cost $14,606,266)

      19,116,291  

VP Inflation Protection Fund - Class II (ACVIP2)

   

921,938 shares (cost $10,065,920)

      9,320,790  

VP International Fund - Class I (ACVI)

   

380,959 shares (cost $3,716,384)

      3,569,588  

VP Mid Cap Value Fund - Class I (ACVMV1)

   

891,924 shares (cost $16,884,071)

      18,828,508  

VP Ultra(R) Fund - Class I (ACVU1)

   

37,269 shares (cost $575,035)

      575,812  

VP Value Fund - Class I (ACVV)

   

2,447,577 shares (cost $22,758,819)

      25,650,604  

MidCap Stock Portfolio - Initial Shares (DVMCS)

   

128,580 shares (cost $2,577,347)

      2,583,182  

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

   

5,637,340 shares (cost $93,680,048)

      106,432,980  

Appreciation Portfolio - Initial Shares (DCAP)

   

462,446 shares (cost $19,872,356)

      18,964,911  

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

   

21,240 shares (cost $918,229)

      1,050,109  

International Value Portfolio - Initial Shares (DVIV)

   

335,588 shares (cost $3,689,265)

      3,255,199  

Variable Series II - DWS Small Mid Cap Value VIP - Class B (SVSSVB)

   

13,198 shares (cost $204,113)

      219,474  

Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

   

5,739 shares (cost $86,373)

      79,085  

Managed Tail Risk Fund II: Primary Shares (FVCA2P)

   

140,835 shares (cost $819,339)

      677,415  

Quality Bond Fund II - Primary Shares (FQB)

   

2,230,268 shares (cost $25,231,484)

      24,488,343  

VIP Contrafund(R) Portfolio - Service Class (FCS)

   

905,263 shares (cost $30,223,075)

      29,909,875  

VIP Energy Portfolio - Service Class 2 (FNRS2)

   

395,730 shares (cost $8,134,686)

      8,159,943  

VIP Equity-Income Portfolio - Service Class (FEIS)

   

2,757,810 shares (cost $57,133,011)

      60,285,731  

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

   

187,736 shares (cost $2,204,194)

      2,307,281  

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

   

2,636,228 shares (cost $32,704,463)

      33,031,931  

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

   

1,247,471 shares (cost $15,707,758)

      15,880,306  

VIP Freedom Income Fund Portfolio - Service Class (FFINS)

   

88,007 shares (cost $964,600)

      965,437  

VIP Growth Opportunities Portfolio - Service Class (FGOS)

   

7,266 shares (cost $249,594)

      225,252  

VIP Growth Portfolio - Service Class (FGS)

   

1,453,189 shares (cost $62,304,422)

      85,883,470  

VIP High Income Portfolio - Service Class (FHIS)

   

2,525,051 shares (cost $14,222,992)

      13,483,771  

VIP Index 500 Portfolio - Initial Class (FIP)

   

222,874 shares (cost $40,239,472)

      50,692,699  

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

   

14,892,347 shares (cost $190,539,011)

      186,154,337  

VIP Mid Cap Portfolio - Service Class (FMCS)

   

1,190,552 shares (cost $39,624,944)

      40,121,602  

VIP Money Market Portfolio - Initial Class (FMMP)

   

9,352,801 shares (cost $9,352,801)

      9,352,801  

VIP Overseas Portfolio - Service Class (FOS)

   

864,173 shares (cost $17,259,029)

      15,330,429  

VIP Value Strategies Portfolio - Service Class (FVSS)

   

218,426 shares (cost $2,877,229)

      3,438,023  

VIP Fidelity VIP Freedom Fund 2005 Portfolio - Service Class (FF05S)

   

28,659 shares (cost $330,826)

      331,868  

VIP Fidelity VIP Freedom Fund 2015 Portfolio - Service Class (FF15S)

   

656,175 shares (cost $8,226,968)

      8,116,883  

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class (FF25S)

   

1,380,516 shares (cost $17,748,568)

      17,836,267  

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class (FF40S)

   

460,724 shares (cost $8,390,200)

      8,463,507  

Mid Cap Value- Institutional Shares (GVMCE)

   

1,502,408 shares (cost $23,996,240)

      24,384,076  

Goldman Sachs Structured Small Cap Equity Fund (GVCSE)

   

41,188 shares (cost $565,412)

      567,984  

VIT Growth Opportunities Fund - Service Shares (GVGOPS)

   

186,412 shares (cost $1,281,146)

      1,254,551  

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

   

1,669 shares (cost $20,128)

      18,897  

ClearBridge Variable Small Cap Growth Portfolio - Class I (SBVSG)

   

574,154 shares (cost $12,287,406)

      12,235,219  

Baron Growth Opportunities Fund Service Class (BNCAI)

   

137,859 shares (cost $5,963,741)

      5,538,067  

Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

   

211,869 shares (cost $11,033,666)

      10,245,997  

Global Securities Fund/VA - Non-Service Shares (OVGS)

   

1,971,566 shares (cost $72,887,546)

      69,044,225  

International Growth Fund/VA - Non-Service Shares (OVIG)

   

6,483,026 shares (cost $14,271,203)

      13,484,695  

Main Street Fund(R)/VA - Non-Service Shares (OVGI)

   

1,155,780 shares (cost $27,178,308)

      32,835,703  

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

   

294,440 shares (cost $7,071,617)

      7,090,118  

Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

   

331,136 shares (cost $16,947,232)

      24,057,020  

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

   

3,548,143 shares (cost $18,931,856)

      17,527,828  

All Asset Portfolio - Administrative Class (PMVAAA)

   

2,202,983 shares (cost $22,984,035)

      22,051,859  

CommodityRealReturn(R) Strategy Portfolio - Administrative Class (PMVRSA)

   

21,477 shares (cost $155,312)

      169,021  

Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)

   

136,461 shares (cost $1,357,353)

      1,334,592  

Long-Term U.S. Government Portfolio - Administrative Class (PMVLGA)

   

114,265 shares (cost $1,421,602)

      1,312,906  

Low Duration Portfolio - Administrative Class (PMVLDA)

   

3,868,685 shares (cost $40,531,843)

      39,615,336  

Real Return Portfolio - Administrative Class (PMVRRA)

   

4,513,512 shares (cost $57,487,746)

      55,380,795  

Total Return Portfolio - Administrative Class (PMVTRA)

   

7,456,014 shares (cost $82,189,765)

      79,331,992  

Pioneer Emerging Markets VCT Portfolio - Class I Shares (PIVEMI)

   

23,516 shares (cost $384,929)

      379,311  

Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class I (PIHYB1)

   

508,792 shares (cost $4,920,862)

      4,731,765  

VT Growth & Income Fund: Class IB (PVGIB)

   

36,673 shares (cost $842,270)

      953,127  

VT Growth Opportunities Fund: Class IB (PVGOB)

   

150,579 shares (cost $1,155,592)

      1,163,973  

VT International Equity Fund: Class IB (PVTIGB)

   

67,402 shares (cost $870,476)

      831,062  

VT Small Cap Value Fund: Class IB (PVTSCB)

   

63,412 shares (cost $905,710)

      998,737  

VI Growth and Income Fund - Series I Shares (ACGI)

   

277,763 shares (cost $5,999,235)

      5,846,905  

VI American Franchise Fund - Series I Shares (ACEG)

   

20,660 shares (cost $1,003,251)

      1,106,972  

VI Value Opportunities Fund - Series I Shares (AVBVI)

   

74 shares (cost $480)

      479  

VI High Yield Fund - Series I Shares (AVHY1)

   

2,651,397 shares (cost $14,667,545)

      14,317,545  

VI International Growth Fund - Series I Shares (AVIE)

   

1,308,681 shares (cost $44,801,872)

      43,042,503  

VI Mid Cap Core Equity Fund: Series I Shares (AVMCCI)

   

26,846 shares (cost $342,985)

      345,510  

VI Small Cap Equity Fund - Series I Shares (AVSCE)

   

14,114 shares (cost $248,879)

      259,407  

Micro-Cap Portfolio - Investment Class (ROCMC)

   

564,740 shares (cost $6,004,690)

      6,274,262  

Variable Fund - Multi-Hedge Strategies (RVARS)

   

22,157 shares (cost $531,325)

      530,651  

Equity Income Portfolio - II (TREI2)

   

983,172 shares (cost $28,167,011)

      27,774,615  

Health Sciences Portfolio - II (TRHS2)

   

660,161 shares (cost $24,031,293)

      22,036,170  

Limited-Term Bond Portfolio (TRLT1)

   

3,186,008 shares (cost $15,494,588)

      15,420,280  

Mid-Cap Growth Portfolio - II (TRMCG2)

   

927,348 shares (cost $25,353,463)

      22,859,135  

New America Growth Portfolio (TRNAG1)

   

1,493,421 shares (cost $37,416,507)

      35,110,321  

Personal Strategy Balanced Portfolio (TRPSB1)

   

207,672 shares (cost $4,071,316)

      3,981,076  

Blue Chip Growth Portfolio (TRBCGP)

   

2,053,315 shares (cost $44,737,252)

      47,616,380  

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

   

759,075 shares (cost $9,594,166)

      7,894,381  

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

   

1,328,119 shares (cost $31,632,214)

      32,060,787  

Variable Insurance Fund - Balanced Portfolio (VVB)

   

405,756 shares (cost $9,005,182)

      9,344,553  

Insurance Fund - Capital Growth Portfolio (VVCG)

   

416,501 shares (cost $10,976,739)

      11,811,965  

Variable Insurance Fund - Diversified Value Portfolio (VVDV)

   

805,233 shares (cost $12,166,547)

      13,777,535  

Variable Insurance Fund - International Portfolio (VVI)

   

412,673 shares (cost $8,671,936)

      8,059,498  

Variable Insurance Fund - Mid-Cap Index Portfolio (VVMCI)

   

1,286,278 shares (cost $26,090,572)

      27,153,337  

Variable Insurance Fund - REIT Index Portfolio (VVREI)

   

684,029 shares (cost $8,784,912)

      9,220,706  

Variable Insurance Fund - Short-Term Investment-Grade Portfolio (VVSTC)

   

564,799 shares (cost $5,980,568)

      6,003,812  

Variable Insurance Fund - Small Company Growth Portfolio (VVSCG)

   

211,007 shares (cost $4,764,940)

      4,536,661  

Variable Insurance Fund - Total Bond Market Index Portfolio (VVHGB)

   

1,948,847 shares (cost $23,260,955)

      22,937,928  

Variable Insurance Portfolios - Asset Strategy (WRASP)

   

947,578 shares (cost $8,938,565)

      7,622,314  

Variable Insurance Portfolios - Growth (WRGP)

   

1,589,389 shares (cost $17,877,423)

      16,376,266  

Variable Insurance Portfolios - High Income (WRHIP)

   

10,602,439 shares (cost $40,717,388)

      38,252,540  

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

   

445,016 shares (cost $4,476,286)

      4,199,927  

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

   

1,039,219 shares (cost $8,938,445)

      8,724,553  

Variable Insurance Portfolios - Science and Technology (WRSTP)

   

601,972 shares (cost $14,097,350)

      13,447,823  

Wells Fargo Variable Trust - VT Discovery Fund: Class 2 (SVDF)

   

540,127 shares (cost $15,518,992)

      13,994,684  

Advantage VT Opportunity Fund - Class 2 (SVOF)

   

244,075 shares (cost $6,703,527)

      6,021,326  

Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)

   

553,722 shares (cost $5,115,099)

      4,612,507  
  

 

 

  

Total Investments

    $ 4,732,604,741  
  

 

 

  

Other Accounts Receivable

      54,134  

Accounts Receivable - VP International Fund - Class I (ACVI)

      10,254  

Accounts Receivable - VP Inflation Protection Fund - Class I (ACVIP1)

      8,513  

Accounts Receivable - Mid-Cap Growth Portfolio - I Class Shares (AMCG)

      1,086  

Accounts Receivable - Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund - Class I (BRVHYI)

      19,435  

Accounts Receivable - Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

      12,852  

Accounts Receivable - International Value Portfolio - Initial Shares (DVIV)

      8  

Accounts Receivable - VIP Contrafund(R) Portfolio - Service Class (FCS)

      190,348  

Accounts Receivable - VIP Growth Opportunities Portfolio - Service Class (FGOS)

      126,062  

Accounts Receivable - VIP Growth Portfolio - Service Class (FGS)

      122,371  

Accounts Receivable - NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

      2  

Accounts Receivable - Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

      533  

Accounts Receivable - Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

      84,271  

Accounts Receivable - Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

      27,196  

Accounts Receivable - Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

      5  

Accounts Payable - Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

      (547 ) 

Accounts Payable - VI Value Opportunities Fund - Series I Shares (AVBVI)

      (3 ) 

Accounts Payable - Opportunistic Small Cap Portfolio: Initial Shares (DSC)

      (8 ) 

Accounts Payable - Loring Ward NVIT Moderate Fund - Class P (NVLMP)

      (4 ) 

Accounts Payable - NVIT Money Market Fund - Class I (SAM)

      (161,434 ) 

Accounts Payable - Variable Series II - DWS Small Mid Cap Value VIP - Class B (SVSSVB)

      (2 ) 
  

 

 

  
   $ 4,733,099,813  
  

 

 

  

Contract Owners’ Equity:

 

Accumulation units

      4,733,099,813  
  

 

 

  

Total Contract Owners’ Equity (note 8)

    $ 4,733,099,813  
  

 

 

  

See accompanying notes to financial statements.

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2016

 

Investment Activity:    Total     ALVDAA     ACVIP1     AMVAA2     AMVBD2     AMVGS2     AMVGR2     AMVI2  

Reinvested dividends

    $ 75,222,169       229       237,462       115,033       1,222,073       3,217       138,313       83,310  

Asset charges (note 3)

      (5,848,156 )      -           (24,386 )      (12,976 )      (72,695 )      (2,761 )      (42,357 )      (13,160 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      69,374,013       229       213,076       102,057       1,149,378       456       95,956       70,150  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      46,700,180       (1,555 )      (117,230 )      41,453       (11,246 )      (95,724 )      152,600       (226,694 ) 

Change in unrealized gain (loss) on investments

      32,203,948       2,087       (51,762 )      289,198       617,286       (127,729 )      (171,097 )      (83,550 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      78,904,128       532       (168,992 )      330,651       606,040       (223,453 )      (18,497 )      (310,244 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      206,359,654       6       47,854       151,298       251,767       228,140       1,617,818       463,255  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 354,637,795       767       91,938       584,006       2,007,185       5,143       1,695,277       223,161  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    AMVNW2     BRVHYI     MLVLC2     MLVGA2     CVSPIP     DAVVL     DWVEMS     DWVSVS  

Reinvested dividends

    $ 1,852       238,793       17,650       101,869       8,417       45,626       18,800       107,697  

Asset charges (note 3)

      (77 )      (6,351 )      (4,261 )      -           (1,450 )      (3,656 )      (6,162 )      (33,940 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,775       232,442       13,389       101,869       6,967       41,970       12,638       73,757  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (50 )      (57,340 )      (87,939 )      (25,132 )      43       (280,753 )      (118,539 )      (395,736 ) 

Change in unrealized gain (loss) on investments

      3,110       351,867       128,244       280,171       49,896       101,850       345,215       3,291,330  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      3,060       294,527       40,305       255,039       49,939       (178,903 )      226,676       2,895,594  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           -           121,562       -           6,423       546,456       49,432       1,340,874  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 4,835       526,969       175,256       356,908       63,329       409,523       288,746       4,310,225  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    DFVIPS     DFVIS     DFVUTV     DSIF     DSRG     DSGIBA     ETVFR     FTVIS2  

Reinvested dividends

    $ 67,527       21,180       21,270       9,100,542       140,443       -           2,408,188       332,764  

Asset charges (note 3)

      (2,394 )      (1,915 )      (3,884 )      (657,957 )      (873 )      -           (95,625 )      -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      65,133       19,265       17,386       8,442,585       139,570       -           2,312,563       332,764  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (17,693 )      (23,621 )      (95,160 )      27,801,793       351,441       17       (766,721 )      (14,949 ) 

Change in unrealized gain (loss) on investments

      (169,715 )      45,959       449,548       (2,033,461 )      (480,482 )      250       4,475,338       583,734  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (187,408 )      22,338       354,388       25,768,332       (129,041 )      267       3,708,617       568,785  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      3,543       7,368       75,515       15,562,830       1,067,074       -           -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (118,732 )      48,971       447,289       49,773,747       1,077,603       267       6,021,180       901,549  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    FTVRDI     FTVSVI     FTVSV2     FTVMD2     FTVDM2     TIF     TIF2     FTVGI2  

Reinvested dividends

    $ 254,151       97,560       82,437       34,924       18,557       20,892       469,448       -      

Asset charges (note 3)

      -           -           (23,931 )      (1,290 )      -           -           (40,580 )      (2,444 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      254,151       97,560       58,506       33,634       18,557       20,892       428,868       (2,444 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      683,137       433,255       (1,064,788 )      (123,269 )      (200,815 )      (8,906 )      (404,491 )      (885,426 ) 

Change in unrealized gain (loss) on investments

      (422,179 )      685,005       2,218,341       166,394       534,408       38,695       1,173,881       1,061,378  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      260,958       1,118,260       1,153,553       43,125       333,593       29,789       769,390       175,952  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      1,847,519       1,351,260       1,514,968       165,605       -           16,379       420,475       8,984  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 2,362,628       2,567,080       2,727,027       242,364       352,150       67,060       1,618,733       182,492  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    FTVFA2     FTVGB1     IVKMG1     IVBRA1     JPMMV1     JPSCE1     JABS     JAMGS  

Reinvested dividends

    $ 24,446       -           -           4,578       144,775       320       535,889       13,568  

Asset charges (note 3)

      -           (26,745 )      (2,421 )      -           (41,540 )      (170 )      (48,467 )      (4,376 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      24,446       (26,745 )      (2,421 )      4,578       103,235       150       487,422       9,192  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (2,034 )      (1,005,312 )      367,992       (43,310 )      84,083       53       371,249       (8,289 ) 

Change in unrealized gain (loss) on investments

      34,141       1,472,530       (746,090 )      110,463       2,027,483       11,963       (33,133 )      59,755  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      32,107       467,218       (378,098 )      67,153       2,111,566       12,016       338,116       51,466  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      20,693       11,364       349,893       -           866,641       5,001       380,816       139,121  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 77,246       451,837       (30,626 )      71,731       3,081,442       17,167       1,206,354       199,779  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    JAFBS     JACAS     JAGTS     JAIGS     JAMVS     LZREMS     LOVBD     LOVMCV  

Reinvested dividends

    $ 310,537       374,895       13,235       1,025,199       14,616       314,707       111,454       563  

Asset charges (note 3)

      (28,815 )      (29,372 )      (4,743 )      (10,491 )      (3,349 )      (61,895 )      (5,551 )      (252 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      281,722       345,523       8,492       1,014,708       11,267       252,812       105,903       311  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (87,233 )      (897,545 )      604,628       (2,062,735 )      (259,699 )      (1,702,967 )      (2,539 )      (430 ) 

Change in unrealized gain (loss) on investments

      19,203       (4,252,129 )      679,227       (967,714 )      305,306       7,204,148       239,149       10,809  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (68,030 )      (5,149,674 )      1,283,855       (3,030,449 )      45,607       5,501,181       236,610       10,379  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           5,577,646       511,313       580,615       240,070       -           -           6,385  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 213,692       773,495       1,803,660       (1,435,126 )      296,944       5,753,993       342,513       17,075  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    LOVTRC     LOVSDC     MVBRES     MV2IGI     MV2RIS     MNDIC     MNDSC     MVFIC  

Reinvested dividends

    $ 300,212       303,269       9,496       17,384       35,430       -           -           231,520  

Asset charges (note 3)

      (18,896 )      (8,112 )      (1,925 )      -           (6,513 )      -           (256 )      -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      281,316       295,157       7,571       17,384       28,917       -           (256 )      231,520  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      2,501       1,360       (46,203 )      (45,205 )      (38,030 )      (53,719 )      (49,918 )      386,332  

Change in unrealized gain (loss) on investments

      (67,178 )      (294,797 )      18,562       (135,306 )      (24,100 )      63,817       35,371       (78,359 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (64,677 )      (293,437 )      (27,641 )      (180,511 )      (62,130 )      10,098       (14,547 )      307,973  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      43,581       -           78,664       335,460       -           14,797       4,306       894,276  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 260,220       1,720       58,594       172,333       (33,213 )      24,895       (10,497 )      1,433,769  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    MVFSC     MVIVSC     MSVFI     MSEM     VKVGR2     MSVMG     MSVEG     MSVRE  

Reinvested dividends

    $ 1,084,204       925,736       39,727       1,976,313       74,775       -           -           262,794  

Asset charges (note 3)

      (118,700 )      (165,322 )      -           (28,099 )      (12,116 )      (15,593 )      (3,172 )      (39,520 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      965,504       760,414       39,727       1,948,214       62,659       (15,593 )      (3,172 )      223,274  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      1,359,038       3,141,015       20,892       (870,142 )      178,466       (1,835,295 )      7,923       2,089,195  

Change in unrealized gain (loss) on investments

      592,887       (2,785,489 )      40,199       2,499,907       (57,078 )      825,277       (270,212 )      (1,046,284 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,951,925       355,526       61,091       1,629,765       121,388       (1,010,018 )      (262,289 )      1,042,911  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      4,787,257       1,871,728       -           -           -           329,968       251,337       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 7,704,686       2,987,668       100,818       3,577,979       184,047       (695,643 )      (14,124 )      1,266,185  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    IDPGI     IDPG     NCPGI     NCPG     NVBX     NVIX     NVAMV1     GVAAA2  

Reinvested dividends

    $ 15       56       14       1,603       2,265,017       707,295       899,308       172,460  

Asset charges (note 3)

      -           -           -           -           (169,601 )      (44,294 )      -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      15       56       14       1,603       2,095,416       663,001       899,308       172,460  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      -           (1,347 )      70       (1,431 )      (114,780 )      (1,009,193 )      348,874       549,210  

Change in unrealized gain (loss) on investments

      (21 )      3,568       (21 )      3,247       (311,640 )      737,391       2,121,293       (492,088 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (21 )      2,221       49       1,816       (426,420 )      (271,802 )      2,470,167       57,122  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           -           -           -           207,636       -           3,723,802       546,241  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (6 )      2,277       63       3,419       1,876,632       391,199       7,093,277       775,823  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    GVABD2     GVAGG2     GVAGR2     GVAGI2     HIBF     GEM     GIG     NVIE6  

Reinvested dividends

    $ 36,167       106,999       21,216       33,651       1,218,954       95,250       358,708       3,624  

Asset charges (note 3)

      -           -           -           -           (22,078 )      (7,985 )      (11,176 )      -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      36,167       106,999       21,216       33,651       1,196,876       87,265       347,532       3,624  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      38,312       218,075       459,935       216,152       (443,818 )      (467,161 )      (592,988 )      1,835  

Change in unrealized gain (loss) on investments

      (31,601 )      (1,024,820 )      (1,621,539 )      (321,435 )      1,967,467       1,197,795       338,926       (4,487 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      6,711       (806,745 )      (1,161,604 )      (105,283 )      1,523,649       730,634       (254,062 )      (2,652 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      4,994       683,147       1,979,469       400,303       -           -           -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 47,872       (16,599 )      839,081       328,671       2,720,525       817,899       93,470       972  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    NVNMO1     NVNSR1     NVCRA1     NVCRB1     NVCCA1     NVCCN1     NVCMD1     NVCMA1  

Reinvested dividends

    $ 119,416       1,983       84,761       4,800,739       165,626       100,230       189,159       180,521  

Asset charges (note 3)

      -           -           (212 )      (165,782 )      (442 )      (747 )      (270 )      (696 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      119,416       1,983       84,549       4,634,957       165,184       99,483       188,889       179,825  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      205,302       (11,232 )      (308,425 )      269,250       (237,194 )      (152,686 )      70,627       (37,099 ) 

Change in unrealized gain (loss) on investments

      871,200       4,646       211,953       (2,720,352 )      22,595       126,724       (259,020 )      (204,134 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,076,502       (6,586 )      (96,472 )      (2,451,102 )      (214,599 )      (25,962 )      (188,393 )      (241,233 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      721,745       25,658       261,329       8,289,013       433,816       97,910       459,457       560,402  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 1,917,663       21,055       249,406       10,472,868       384,401       171,431       459,953       498,994  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    NVCMC1     NVCBD1     NVLCP1     TRF     GBF     GVIX2     GVIDA     NVDBL2  

Reinvested dividends

    $ 113,286       49,627       68,874       1,799,714       1,099,448       56,642       367,817       29,850  

Asset charges (note 3)

      (647 )      -           -           (89,911 )      (72,856 )      (249 )      (7,564 )      -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      112,639       49,627       68,874       1,709,803       1,026,592       56,393       360,253       29,850  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (155,765 )      (1,299 )      6,830       8,597,119       (810,781 )      (276,330 )      985,983       9,176  

Change in unrealized gain (loss) on investments

      125,934       210       485       4,064,038       101,038       132,903       (1,018,963 )      19,056  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (29,831 )      (1,089 )      7,315       12,661,157       (709,743 )      (143,427 )      (32,980 )      28,232  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      156,143       2,375       8,840       -           -           -           1,644,978       36,174  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 238,951       50,913       85,029       14,370,960       316,849       (87,034 )      1,972,251       94,256  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    NVDCA2     GVIDC     GVIDM     GVDMA     GVDMC     MCIF     SAM     SAM5  

Reinvested dividends

    $ 13,427       272,265       1,173,298       1,473,578       321,946       1,198,384       2,790       48,407  

Asset charges (note 3)

      -           (11,790 )      (21,246 )      (32,285 )      (4,913 )      (123,815 )      (635 )      (332,855 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      13,427       260,475       1,152,052       1,441,293       317,033       1,074,569       2,155       (284,448 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      189       (109,900 )      3,033,546       1,897,818       460,310       2,317,374       -           -      

Change in unrealized gain (loss) on investments

      12,102       40,928       (3,255,184 )      (2,774,674 )      (450,158 )      5,032,195       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      12,291       (68,972 )      (221,638 )      (876,856 )      10,152       7,349,569       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      28,129       272,357       3,499,125       6,142,556       558,313       8,766,100       972       3,387  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 53,847       463,860       4,429,539       6,706,993       885,498       17,190,238       3,127       (281,061 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    NVMIG1     GVDIVI     NVMLG1     NVMLV1     NVMMG1     NVMMV1     NVMMV2     SCGF  

Reinvested dividends

    $ 212,888       138,539       102,090       311,005       -           19,364       183,824       -      

Asset charges (note 3)

      -           -           (2,342 )      (11,828 )      (13,482 )      (1,869 )      -           (10,098 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      212,888       138,539       99,748       299,177       (13,482 )      17,495       183,824       (10,098 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (249,443 )      (107,896 )      424,480       263,430       1,320,467       (32,489 )      254,168       437,525  

Change in unrealized gain (loss) on investments

      (591,956 )      211,218       (2,061,247 )      195,471       (3,540,330 )      96,793       536,674       (2,842,573 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (841,399 )      103,322       (1,636,767 )      458,901       (2,219,863 )      64,304       790,842       (2,405,048 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      321,679       -           1,756,323       1,764,870       4,887,392       113,131       1,148,664       3,762,263  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (306,832 )      241,861       219,304       2,522,948       2,654,047       194,930       2,123,330       1,347,117  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    SCVF     SCF     MSBF     NVSTB1     NVSTB2     NVOLG1     NVTIV3     EIF  

Reinvested dividends

    $ 248,515       138,716       376,465       593,004       20,201       993,001       12,241       281,827  

Asset charges (note 3)

      (18,284 )      (35,699 )      (5,107 )      (41,931 )      -           (617 )      -           (1,125 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      230,231       103,017       371,358       551,073       20,201       992,384       12,241       280,702  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      1,274,392       1,594,153       40,496       4,450       (16,150 )      2,449,246       (70,093 )      499,956  

Change in unrealized gain (loss) on investments

      3,760,858       819,857       500,976       (86,074 )      32,730       (29,125,109 )      46,178       981,809  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      5,035,250       2,414,010       541,472       (81,624 )      16,580       (26,675,863 )      (23,915 )      1,481,765  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      3,885,287       6,395,420       -           -           -           30,340,812       8,284       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 9,150,768       8,912,447       912,830       469,449       36,781       4,657,333       (3,390 )      1,762,467  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    NVRE1     NVLCAP     NVLMP     NVSIX2     GVEX1     AMTB     AMGP     AMCG  

Reinvested dividends

    $ 651,839       639       105       5,865       86,884       43,111       3,523       -      

Asset charges (note 3)

      (16,811 )      -           -           -           -           -           (1,522 )      (5,071 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      635,028       639       105       5,865       86,884       43,111       2,001       (5,071 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (1,328,114 )      (1,844 )      (59 )      (11,627 )      17,570       (40,136 )      (40,397 )      (122,129 ) 

Change in unrealized gain (loss) on investments

      265,592       7,398       540       37,000       256,385       45,132       (31,607 )      115,250  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (1,062,522 )      5,554       481       25,373       273,955       4,996       (72,004 )      (6,879 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      2,624,909       439       102       58,424       68,108       -           121,285       94,449  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 2,197,415       6,632       688       89,662       428,947       48,107       51,282       82,499  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    AMMCGS     AMTP     AMRI     AMSRS     NOTB3     NOTG3     NOTMG3     ALVGIA  

Reinvested dividends

    $ -           2,296       33,509       13,649       484       464       645       227,495  

Asset charges (note 3)

      -           (146 )      (12,369 )      -           -           -           -           (44,355 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      -           2,150       21,140       13,649       484       464       645       183,140  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (11,860 )      (13,982 )      66,926       71,559       (205 )      13       30       806,879  

Change in unrealized gain (loss) on investments

      (1,046 )      51,757       282,195       29,720       1,827       890       1,527       94,274  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (12,906 )      37,775       349,121       101,279       1,622       903       1,557       901,153  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      51,292       25,172       380,957       70,083       -           -           -           1,358,916  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 38,386       65,097       751,218       185,011       2,106       1,367       2,202       2,443,209  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    ALVIVA     ALVSVA     ACVCA     ACVIG     ACVIP2     ACVI     ACVMV1     ACVU1  

Reinvested dividends

    $ 113,131       111,450       -           433,425       169,764       16,822       266,022       2,474  

Asset charges (note 3)

      (14,236 )      (15,762 )      (1,352 )      (6,905 )      -           (3,651 )      (9,686 )      (1,712 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      98,895       95,688       (1,352 )      426,520       169,764       13,171       256,336       762  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      52,827       (305,256 )      (53,917 )      371,827       (280,531 )      (24,989 )      650,476       (9,261 ) 

Change in unrealized gain (loss) on investments

      (225,135 )      3,440,962       20,702       1,164,262       442,667       (41,076 )      1,583,924       11,788  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (172,308 )      3,135,706       (33,215 )      1,536,089       162,136       (66,065 )      2,234,400       2,527  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           1,047,125       57,974       338,152       68,878       -           662,743       29,328  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (73,413 )      4,278,519       23,407       2,300,761       400,778       (52,894 )      3,153,479       32,617  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    ACVV     DVMCS     DVSCS     DCAP     DSC     DVIV     SVSSVB     SVSLVB  

Reinvested dividends

    $ 415,955       27,182       810,175       324,197       -           73,438       449       731  

Asset charges (note 3)

      (48,124 )      (6,111 )      (165,497 )      (8,101 )      -           (7,840 )      (393 )      (241 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      367,831       21,071       644,678       316,096       -           65,598       56       490  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      529,693       (120,562 )      3,267,414       49,053       49,312       (109,793 )      (6,309 )      6,193  

Change in unrealized gain (loss) on investments

      3,569,445       270,397       9,684,971       (1,823,974 )      17,610       (30,414 )      14,993       (20,336 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      4,099,138       149,835       12,952,385       (1,774,921 )      66,922       (140,207 )      8,684       (14,143 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           180,460       7,680,217       2,952,589       73,582       -           20,455       5,236  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 4,466,969       351,366       21,277,280       1,493,764       140,504       (74,609 )      29,195       (8,417 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    FVCA2P     FQB     FCS     FNRS2     FEIS     FF10S     FF20S     FF30S  

Reinvested dividends

    $ 12,092       888,009       210,228       34,207       1,253,001       32,534       473,441       212,553  

Asset charges (note 3)

      -           (23,669 )      (70,977 )      -           (29,607 )      (584 )      (54,620 )      (18,160 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      12,092       864,340       139,251       34,207       1,223,394       31,950       418,821       194,393  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (7,679 )      (51,284 )      836,270       (160,950 )      2,334,674       28,707       584,496       324,829  

Change in unrealized gain (loss) on investments

      (33,120 )      96,277       (1,478,476 )      2,032,472       2,162,641       (1,999 )      (91,861 )      (96,024 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (40,799 )      44,993       (642,206 )      1,871,522       4,497,315       26,708       492,635       228,805  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           -           2,642,744       -           3,649,305       48,953       877,797       495,769  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (28,707 )      909,333       2,139,789       1,905,729       9,370,014       107,611       1,789,253       918,967  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    FFINS     FGOS     FGS     FHIS     FIP     FIGBS     FMCS     FMMP  

Reinvested dividends

    $ 13,668       547       -           685,881       707,652       4,306,919       162,012       6,541  

Asset charges (note 3)

      (2,062 )      (633 )      (70,579 )      (13,420 )      (100,662 )      (302,171 )      (34,014 )      (5,121 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      11,606       (86 )      (70,579 )      672,461       606,990       4,004,748       127,998       1,420  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      2,529       (10,388 )      2,610,095       (211,169 )      1,887,634       (204,023 )      (77,131 )      -      

Change in unrealized gain (loss) on investments

      9,956       1,875       (10,188,118 )      1,266,607       3,029,372       3,497,427       1,999,382       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      12,485       (8,513 )      (7,578,023 )      1,055,438       4,917,006       3,293,404       1,922,251       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      10,223       5,913       8,191,795       -           50,473       81,868       2,510,379       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 34,314       (2,686 )      543,193       1,727,899       5,574,469       7,380,020       4,560,628       1,420  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    FOS     FVSS     FF05S     FF15S     FF25S     FF40S     GVMCE     GVCSE  

Reinvested dividends

    $ 215,145       34,168       4,286       115,916       251,121       102,446       321,520       818  

Asset charges (note 3)

      (5,030 )      (58 )      (513 )      (18,664 )      (35,040 )      (17,169 )      (81,946 )      (137 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      210,115       34,110       3,773       97,252       216,081       85,277       239,574       681  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      201,818       173,115       (2,136 )      (311,500 )      27,906       26,275       (3,665,563 )      (4,145 ) 

Change in unrealized gain (loss) on investments

      (1,371,624 )      77,116       7,036       265,254       324,699       199,275       7,439,462       11,915  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (1,169,806 )      250,231       4,900       (46,246 )      352,605       225,550       3,773,899       7,770  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      27,212       -           1,970       291,446       408,452       262,373       12,988       1,951  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (932,479 )      284,341       10,643       342,452       977,138       573,200       4,026,461       10,402  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    GVGOPS     GVGMNS     SBVSG     BNCAI     OVGR     OVGS     OVIG     OVGI  

Reinvested dividends

    $ -           53       -           28,026       44,774       720,044       119,232       340,471  

Asset charges (note 3)

      (3,505 )      -           (24,218 )      (14,920 )      (25,262 )      (84,950 )      (20,815 )      (11,689 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (3,505 )      53       (24,218 )      13,106       19,512       635,094       98,417       328,782  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (181,531 )      (700 )      (428,485 )      (61,629 )      264,896       1,947,453       (240,036 )      302,545  

Change in unrealized gain (loss) on investments

      203,432       1,593       679,565       20,485       (1,786,574 )      (7,341,044 )      (208,566 )      (857,756 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      21,901       893       251,080       (41,144 )      (1,521,678 )      (5,393,591 )      (448,602 )      (555,211 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      8,984       -           458,852       397,350       1,134,448       4,564,074       253,641       3,618,968  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 27,380       946       685,714       369,312       (367,718 )      (194,423 )      (96,544 )      3,392,539  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    OVSC     OVAG     OVSB     PMVAAA     PMVRSA     PMVFBA     PMVLGA     PMVLDA  

Reinvested dividends

    $ 34,134       -           857,814       563,634       1,665       18,018       49,496       652,951  

Asset charges (note 3)

      -           (9,849 )      -           (41,542 )      -           (1,451 )      (5,898 )      (85,688 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      34,134       (9,849 )      857,814       522,092       1,665       16,567       43,598       567,263  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (534 )      617,682       (225,123 )      (1,123,681 )      (7,714 )      (55,055 )      320,082       (766,389 ) 

Change in unrealized gain (loss) on investments

      820,876       (1,948,657 )      454,100       3,049,279       27,656       119,503       (187,530 )      705,346  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      820,342       (1,330,975 )      228,977       1,925,598       19,942       64,448       132,552       (61,043 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      253,053       1,878,904       -           -           -           -           -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 1,107,529       538,080       1,086,791       2,447,690       21,607       81,015       176,150       506,220  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    PMVRRA     PMVTRA     PIVEMI     PIHYB1     PVGIB     PVGOB     PVTIGB     PVTSCB  

Reinvested dividends

    $ 1,475,000       1,808,959       3,414       211,588       15,566       -           29,513       10,676  

Asset charges (note 3)

      (134,856 )      (157,118 )      (350 )      (8,452 )      -           -           -           (2,029 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,340,144       1,651,841       3,064       203,136       15,566       -           29,513       8,647  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (4,855,695 )      (1,243,164 )      (171,037 )      (149,268 )      35,956       32       42,576       (62,163 ) 

Change in unrealized gain (loss) on investments

      7,131,930       1,722,319       195,028       521,670       44,131       8,380       (99,753 )      200,135  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      2,276,235       479,155       23,991       372,402       80,087       8,412       (57,177 )      137,972  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           -           -           -           27,489       -           -           91,160  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 3,616,379       2,130,996       27,055       575,538       123,142       8,412       (27,664 )      237,779  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    PVTVB     ACGI     ACEG     AVBVI     AVHY1     AVIE     AVMCCI     AVSCE  

Reinvested dividends

    $ 14,274       57,632       -           2       592,826       646,480       325       -      

Asset charges (note 3)

      -           (11,999 )      -           (5 )      (29,251 )      (98,510 )      (524 )      (557 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      14,274       45,633       -           (3 )      563,575       547,970       (199 )      (557 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (53,253 )      (235,204 )      83,193       (167 )      (262,311 )      1,612,198       (51,522 )      (42,933 ) 

Change in unrealized gain (loss) on investments

      5,900       694,361       (172,967 )      (93 )      1,149,530       (2,520,375 )      60,083       53,568  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (47,353 )      459,157       (89,774 )      (260 )      887,219       (908,177 )      8,561       10,635  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      50,757       476,281       102,736       174       -           -           27,727       17,325  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 17,678       981,071       12,962       (89 )      1,450,794       (360,207 )      36,089       27,403  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    ROCMC     RVARS     TREI2     TRHS2     TRLT1     TRMCG2     TRNAG1     TRPSB1  

Reinvested dividends

    $ 47,631       536       595,036       -           286,340       -           14,217       63,407  

Asset charges (note 3)

      (13,481 )      -           (71,565 )      (28,140 )      (51,250 )      (53,393 )      (78,274 )      (8,750 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      34,150       536       523,471       (28,140 )      235,090       (53,393 )      (64,057 )      54,657  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (740,554 )      9,750       3,502,292       2,792,366       (77,599 )      (295,514 )      (2,084,600 )      (188,191 ) 

Change in unrealized gain (loss) on investments

      1,903,622       (12,149 )      (2,126,377 )      (6,483,689 )      114,377       49,969       631,470       279,097  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,163,068       (2,399 )      1,375,915       (3,691,323 )      36,778       (245,545 )      (1,453,130 )      90,906  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           -           2,612,541       171,039       -           1,493,887       1,734,518       91,725  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 1,197,218       (1,863 )      4,511,927       (3,548,424 )      271,868       1,194,949       217,331       237,288  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    TRBCGP     VWEM     VWHA     VVB     VVCG     VVDV     VVI     VVMCI  

Reinvested dividends

    $ -           36,587       109,911       197,046       118,393       365,515       122,246       362,146  

Asset charges (note 3)

      (82,494 )      (6,087 )      (45,117 )      (17,249 )      (21,169 )      (27,426 )      (17,250 )      (54,038 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (82,494 )      30,500       64,794       179,797       97,224       338,089       104,996       308,108  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      1,509,207       (120,107 )      (3,880,140 )      59,478       (21,164 )      379,235       27,395       812,689  

Change in unrealized gain (loss) on investments

      (881,856 )      58,637       14,108,839       267,508       729,348       77,004       (205,005 )      (261,900 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      627,351       (61,470 )      10,228,699       326,986       708,184       456,239       (177,610 )      550,789  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -           39,636       -           344,830       259,870       747,681       142,329       1,800,809  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 544,857       8,666       10,293,493       851,613       1,065,278       1,542,009       69,715       2,659,706  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment Activity:    VVREI     VVSTC     VVSCG     VVHGB     WRASP     WRGP     WRHIP     WRMCG  

Reinvested dividends

    $ 230,448       101,562       13,691       488,747       59,793       4,320       2,764,426       -      

Asset charges (note 3)

      (19,195 )      (11,651 )      (8,422 )      (47,050 )      (5,407 )      (19,326 )      (52,796 )      (10,906 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      211,253       89,911       5,269       441,697       54,386       (15,006 )      2,711,630       (10,906 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      164,883       (7,534 )      (75,569 )      (33,629 )      (2,956,905 )      (698,650 )      (1,537,892 )      (535,333 ) 

Change in unrealized gain (loss) on investments

      (336,706 )      54,939       290,804       (5,787 )      2,491,470       (1,125,365 )      4,306,807       500,716  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (171,823 )      47,405       215,235       (39,416 )      (465,435 )      (1,824,015 )      2,768,915       (34,617 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      611,456       -           347,644       58,226       -           1,888,577       -           333,815  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 650,886       137,316       568,148       460,507       (411,049 )      49,556       5,480,545       288,292  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    WRRESP     WRSTP     SVDF     SVOF     WFVSCG     CAF              

Reinvested dividends

    $ 85,851       -           -           113,315       -           20,339      

Asset charges (note 3)

      (10,441 )      (18,176 )      (13,341 )      (13,277 )      (7,591 )      (768 )     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

Net investment income (loss)

      75,410       (18,176 )      (13,341 )      100,038       (7,591 )      19,571      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

Realized gain (loss) on investments

      (367,986 )      (1,162,290 )      (321,740 )      (23,564 )      (654,920 )      3,341,232      

Change in unrealized gain (loss) on investments

      (227,393 )      690,860       106,434       (6,347 )      451,060       (4,805,528 )     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

Net gain (loss) on investments

      (595,379 )      (471,430 )      (215,306 )      (29,911 )      (203,860 )      (1,464,296 )     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

Reinvested capital gains

      725,353       499,483       994,544       562,582       523,918       1,404,949      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 205,384       9,877       765,897       632,709       312,467       (39,776 )     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

      

See accompanying notes to financial statements.

NATIONWIDE VLI SEPARATE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2016 and 2015

 

     Total     ALVDAA     ACVIP1     AMVAA2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 69,374,013       73,565,886       229       552       213,076       123,750       102,057       72,606  

Realized gain (loss) on investments

      46,700,180       157,541,808       (1,555 )      634       (117,230 )      (40,592 )      41,453       77,689  

Change in unrealized gain (loss) on investments

      32,203,948       (475,204,916 )      2,087       (3,333 )      (51,762 )      (365,402 )      289,198       (432,377 ) 

Reinvested capital gains

      206,359,654       206,683,439       6       1,108       47,854       -           151,298       333,728  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      354,637,795       (37,413,783 )      767       (1,039 )      91,938       (282,244 )      584,006       51,646  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      214,947,701       230,175,856       9,196       6,669       420,565       4,587       355,012       348,568  

Transfers between funds

      -           -           (37,415 )      20,242       13,205,298       4,969,655       2,221,773       1,798,242  

Surrenders (note 6)

      (223,413,580 )      (261,930,075 )      (922 )      (710 )      (146,949 )      (15,845 )      (50,804 )      (45,336 ) 

Death benefits (note 4)

      (19,933,699 )      (21,800,687 )      -           -           (3,282 )      (5 )      -           (31,992 ) 

Net policy repayments (loans) (note 5)

      (4,371,264 )      (7,475,773 )      (137 )      (30 )      (44,823 )      (3,332 )      13,412       (27,774 ) 

Deductions for surrender charges (note 2d)

      (88,731 )      (117,645 )      -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b
and 2c)

      (109,803,006 )      (107,812,060 )      (6,764 )      (5,855 )      (106,738 )      (41,151 )      (146,069 )      (87,962 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (5,013,433 )      (5,536,627 )      (195 )      (281 )      (211 )      (98 )      (1,262 )      (1,403 ) 

MSP contracts

      (267,404 )      (294,944 )      -           -           -           -           -           -      

SL contracts or LSFP contracts

      (642,587 )      (703,206 )      -           -           -           -           -           -      

Adjustments to maintain reserves

      66,349       8,440       (16 )      5       9,766       (768 )      35       (2 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (148,519,654 )      (175,486,721 )      (36,253 )      20,040       13,333,626       4,913,043       2,392,097       1,952,341  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      206,118,141       (212,900,504 )      (35,486 )      19,001       13,425,564       4,630,799       2,976,103       2,003,987  

Contract owners’ equity beginning of period

      4,526,981,672       4,739,882,176       64,806       45,805       5,480,549       849,750       5,167,132       3,163,145  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 4,733,099,813       4,526,981,672       29,320       64,806       18,906,113       5,480,549       8,143,235       5,167,132  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      249,805,767       251,462,059       5,447       3,808       592,890       89,451       354,629       219,500  

Units purchased

      38,573,195       46,460,532       794       2,252       1,524,582       561,286       176,756       150,977  

Units redeemed

      (41,718,118 )      (48,116,824 )      (3,862 )      (613 )      (160,811 )      (57,847 )      (19,629 )      (15,848 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      246,660,844       249,805,767       2,379       5,447       1,956,661       592,890       511,756       354,629  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     AMVBD2     AMVGS2     AMVGR2     AMVI2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 1,149,378       1,133,237       456       (4,302 )      95,956       58,715       70,150       67,183  

Realized gain (loss) on investments

      (11,246 )      (10,918 )      (95,724 )      284,933       152,600       4,209,138       (226,694 )      176,738  

Change in unrealized gain (loss) on investments

      617,286       (2,381,044 )      (127,729 )      (312,589 )      (171,097 )      (6,136,457 )      (83,550 )      (773,619 ) 

Reinvested capital gains

      251,767       1,386,907       228,140       125,351       1,617,818       3,364,440       463,255       276,716  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      2,007,185       128,182       5,143       93,393       1,695,277       1,495,836       223,161       (252,982 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      -           737       84,939       143,033       647,989       636,096       881,456       858,836  

Transfers between funds

      (4,084 )      3,577       (312,582 )      (964,330 )      (1,613,358 )      (8,729,499 )      152,991       631,694  

Surrenders (note 6)

      (1,187 )      (41,665 )      (7,324 )      (205,389 )      (215,958 )      (441,281 )      (247,231 )      (551,918 ) 

Death benefits (note 4)

      -           -           (1,516 )      (3,934 )      (15,173 )      (62,232 )      (6,959 )      (22,950 ) 

Net policy repayments (loans) (note 5)

      (419 )      (353 )      (2,480 )      (6,588 )      (26,400 )      (6,598 )      10,415       585  

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (683,020 )      (637,156 )      (15,764 )      (23,066 )      (260,015 )      (275,499 )      (114,781 )      (98,310 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (21 )      (40 )      (12 )      (132 )      (70 )      (69 )      (346 )      (256 ) 

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      216       23       17       (9 )      (78 )      (4 )      54       (23 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (688,515 )      (674,877 )      (254,722 )      (1,060,415 )      (1,483,063 )      (8,879,086 )      675,599       817,658  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      1,318,670       (546,695 )      (249,579 )      (967,022 )      212,214       (7,383,250 )      898,760       564,676  

Contract owners’ equity beginning of period

      70,464,503       71,011,198       1,544,166       2,511,188       17,442,134       24,825,384       5,243,130       4,678,454  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 71,783,173       70,464,503       1,294,587       1,544,166       17,654,348       17,442,134       6,141,890       5,243,130  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      5,633,226       5,686,802       125,623       204,209       1,120,259       1,698,415       506,463       430,497  

Units purchased

      72       358       10,122       19,573       47,871       75,203       191,858       138,452  

Units redeemed

      (53,219 )      (53,934 )      (32,378 )      (98,159 )      (130,019 )      (653,359 )      (124,218 )      (62,486 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      5,580,079       5,633,226       103,367       125,623       1,038,111       1,120,259       574,103       506,463  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     AMVNW2      BRVHYI     MLVLC2     MLVGA2  
     2016     2015      2016     2015     2016     2015     2016     2015  

Investment activity:

                  

Net investment income (loss)

    $ 1,775       -            232,442       50,643       13,389       11,248       101,869       102,280  

Realized gain (loss) on investments

      (50 )      -            (57,340 )      (26,364 )      (87,939 )      335,732       (25,132 )      (62,239 ) 

Change in unrealized gain (loss) on investments

      3,110       -            351,867       (182,132 )      128,244       (429,169 )      280,171       (657,456 ) 

Reinvested capital gains

      -           -            -           25,185       121,562       104,072       -           530,085  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      4,835       -            526,969       (132,668 )      175,256       21,883       356,908       (87,330 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (notes 2a and 6)

      130       -            70,145       85       350,833       221,265       422,961       486,677  

Transfers between funds

      378,099       -            839,694       3,364,781       (697,454 )      (913,294 )      (114,065 )      (497,833 ) 

Surrenders (note 6)

      -           -            (157,787 )      -           (131,862 )      (176,386 )      (735,680 )      (588,687 ) 

Death benefits (note 4)

      -           -            -           (2 )      (15,605 )      (255 )      (42,694 )      (17,787 ) 

Net policy repayments (loans) (note 5)

      -           -            (15,523 )      -           87,253       (65,329 )      (46,616 )      (184,746 ) 

Deductions for surrender charges (note 2d)

      -           -            -           -           -           -           (221 )      295  

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (903 )      -            (46,995 )      (8,499 )      (32,293 )      (46,064 )      (416,298 )      (425,844 ) 

Asset charges (note 3):

                  

FPVUL & VEL contracts

      -           -            (145 )      -           (18 )      (282 )      (25,548 )      (31,541 ) 

MSP contracts

      -           -            -           -           -           -           (1,072 )      (996 ) 

SL contracts or LSFP contracts

      -           -            -           -           -           -           (4,215 )      (5,203 ) 

Adjustments to maintain reserves

      4       -            (346 )      1,743       20       6       (3 )      (1 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      377,330       -            689,043       3,358,108       (439,126 )      (980,339 )      (963,451 )      (1,265,666 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      382,165       -            1,216,012       3,225,440       (263,870 )      (958,456 )      (606,543 )      (1,352,996 ) 

Contract owners’ equity beginning of period

      -           -            3,724,985       499,545       1,927,425       2,885,881       9,686,094       11,039,090  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 382,165       -            4,940,997       3,724,985       1,663,555       1,927,425       9,079,551       9,686,094  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      -           -            397,942       51,392       97,677       145,570       588,721       665,128  

Units purchased

      36,871       -            91,744       347,896       23,582       24,503       37,949       36,835  

Units redeemed

      (88 )      -            (21,518 )      (1,346 )      (44,714 )      (72,396 )      (95,822 )      (113,242 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      36,783       -            468,168       397,942       76,545       97,677       530,848       588,721  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     CVSPIP     DAVVL     DWVEMS     DWVSVS  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 6,967       (980 )      41,970       17,742       12,638       4,222       73,757       39,076  

Realized gain (loss) on investments

      43       (25,844 )      (280,753 )      34,305       (118,539 )      (26,217 )      (395,736 )      3,457  

Change in unrealized gain (loss) on investments

      49,896       10,700       101,850       (394,395 )      345,215       (221,696 )      3,291,330       (2,588,514 ) 

Reinvested capital gains

      6,423       9,344       546,456       394,807       49,432       26,736       1,340,874       1,626,973  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      63,329       (6,780 )      409,523       52,459       288,746       (216,955 )      4,310,225       (919,008 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      902,869       31,176       190,399       160,324       668,318       526,550       775,129       1,233,125  

Transfers between funds

      (805,082 )      94,887       853,256       (506,177 )      208,330       632,664       920,275       (1,489,437 ) 

Surrenders (note 6)

      -           -           (298,484 )      (35,568 )      (68,458 )      (3,306 )      (92,578 )      (354,359 ) 

Death benefits (note 4)

      -           -           -           (9 )      -           (16 )      (56,484 )      (29,778 ) 

Net policy repayments (loans) (note 5)

      (122 )      (4,801 )      11,185       (18,440 )      (1,736 )      (745 )      (21,303 )      61,833  

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (5,294 )      (12,910 )      (43,449 )      (35,584 )      (55,636 )      (37,699 )      (261,510 )      (227,033 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      -           -           (2,290 )      (2,316 )      (52 )      (4 )      (2,067 )      (1,328 ) 

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      11       (11 )      10       (10 )      19       1       130       (20 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      92,382       108,341       710,627       (437,780 )      750,785       1,117,445       1,261,592       (806,997 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      155,711       101,561       1,120,150       (385,321 )      1,039,531       900,490       5,571,817       (1,726,005 ) 

Contract owners’ equity beginning of period

      553,494       451,933       2,503,302       2,888,623       2,049,470       1,148,980       13,060,799       14,786,804  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 709,205       553,494       3,623,452       2,503,302       3,089,001       2,049,470       18,632,616       13,060,799  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      49,793       40,910       187,283       219,468       231,836       110,505       980,158       1,035,605  

Units purchased

      79,246       50,402       84,774       11,992       111,825       125,606       222,896       132,415  

Units redeemed

      (71,715 )      (41,519 )      (28,847 )      (44,177 )      (35,498 )      (4,275 )      (134,744 )      (187,862 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      57,324       49,793       243,210       187,283       308,163       231,836       1,068,310       980,158  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     DFVIPS      DFVIS     DFVUTV     DSIF  
     2016     2015      2016     2015     2016     2015     2016     2015  

Investment activity:

                  

Net investment income (loss)

    $ 65,133       -            19,265       20,110       17,386       24,570       8,442,585       7,194,548  

Realized gain (loss) on investments

      (17,693 )      -            (23,621 )      (11,293 )      (95,160 )      (16,221 )      27,801,793       29,566,708  

Change in unrealized gain (loss) on investments

      (169,715 )      -            45,959       (81,358 )      449,548       (316,451 )      (2,033,461 )      (44,641,970 ) 

Reinvested capital gains

      3,543       -            7,368       33,302       75,515       142,051       15,562,830       11,749,112  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (118,732 )      -            48,971       (39,239 )      447,289       (166,051 )      49,773,747       3,868,398  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (notes 2a and 6)

      64       -            204       (89 )      561       (323 )      17,443,442       15,346,063  

Transfers between funds

      5,326,807       -            (167,478 )      1,107,002       430,700       2,228,929       10,494,808       16,884,811  

Surrenders (note 6)

      (79,000 )      -            (14,942 )      (38,599 )      (35,885 )      (78,101 )      (19,212,219 )      (19,087,452 ) 

Death benefits (note 4)

      -           -            (3,584 )      (2,581 )      (7,052 )      (5,227 )      (1,429,110 )      (1,250,584 ) 

Net policy repayments (loans) (note 5)

      -           -            -           -           -           -           (1,236,405 )      (1,532,190 ) 

Deductions for surrender charges (note 2d)

      -           -            -           -           -           -           (2,760 )      (4,481 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (7,380 )      -            (7,602 )      (4,825 )      (15,252 )      (9,663 )      (10,183,708 )      (9,373,668 ) 

Asset charges (note 3):

                  

FPVUL & VEL contracts

      (118 )      -            -           -           -           -           (403,117 )      (435,953 ) 

MSP contracts

      -           -            -           -           -           -           (12,001 )      (12,846 ) 

SL contracts or LSFP contracts

      -           -            -           -           -           -           (67,657 )      (69,819 ) 

Adjustments to maintain reserves

      3       -            8       (4 )      15       (5 )      3,874       214  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      5,240,376       -            (193,394 )      1,060,904       373,087       2,135,610       (4,604,853 )      464,095  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      5,121,644       -            (144,423 )      1,021,665       820,376       1,969,559       45,168,894       4,332,493  

Contract owners’ equity beginning of period

      -           -            1,021,665       -           1,969,559       -           433,286,156       428,953,663  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 5,121,644       -            877,242       1,021,665       2,789,935       1,969,559       478,455,050       433,286,156  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      -           -            105,953       -           215,294       -           19,872,339       19,703,250  

Units purchased

      529,203       -            -           110,690       29,942       225,046       1,824,459       1,801,373  

Units redeemed

      (8,773 )      -            (20,138 )      (4,737 )      (5,533 )      (9,752 )      (2,007,820 )      (1,632,284 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      520,430       -            85,815       105,953       239,703       215,294       19,688,978       19,872,339  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     DSRG     DSGIBA      ETVFR     FTVIS2  
     2016     2015     2016     2015      2016     2015     2016     2015  

Investment activity:

                  

Net investment income (loss)

    $ 139,570       131,372       -           -            2,312,563       2,153,287       332,764       303,078  

Realized gain (loss) on investments

      351,441       777,547       17       -            (766,721 )      (253,501 )      (14,949 )      67,282  

Change in unrealized gain (loss) on investments

      (480,482 )      (2,951,356 )      250       -            4,475,338       (2,614,256 )      583,734       (831,478 ) 

Reinvested capital gains

      1,067,074       1,668,105       -           -            -           -           -           -      
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,077,603       (374,332 )      267       -            6,021,180       (714,470 )      901,549       (461,118 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (notes 2a and 6)

      636,539       675,825       1,221       -            321,886       283,477       358,376       369,656  

Transfers between funds

      (60,698 )      (606,819 )      24,921       -            3,397,156       (444,493 )      181,274       125,547  

Surrenders (note 6)

      (797,863 )      (709,318 )      (1,491 )      -            (537,378 )      (1,210,455 )      (851,720 )      (393,876 ) 

Death benefits (note 4)

      (78,466 )      (252,148 )      -           -            (22,036 )      (34,286 )      (47,471 )      (92,453 ) 

Net policy repayments (loans) (note 5)

      43,420       68,378       3       -            (48,961 )      (650,427 )      459,645       80,105  

Deductions for surrender charges (note 2d)

      (18 )      (50 )      -           -            -           -           (306 )      (854 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (655,264 )      (678,052 )      (420 )      -            (846,871 )      (776,341 )      (286,935 )      (274,166 ) 

Asset charges (note 3):

                  

FPVUL & VEL contracts

      (45,292 )      (51,543 )      (45 )      -            (612 )      (438 )      (13,997 )      (15,835 ) 

MSP contracts

      (1,295 )      (1,480 )      -           -            -           -           (1,803 )      (1,875 ) 

SL contracts or LSFP contracts

      (1,500 )      (1,683 )      -           -            -           -           (5,832 )      (5,662 ) 

Adjustments to maintain reserves

      1,199       (385 )      1       -            482       (496 )      (5 )      (4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (959,238 )      (1,557,275 )      24,190       -            2,263,666       (2,833,459 )      (208,774 )      (209,417 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      118,365       (1,931,607 )      24,457       -            8,284,846       (3,547,929 )      692,775       (670,535 ) 

Contract owners’ equity beginning of period

      11,176,410       13,108,017       -           -            63,451,455       66,999,384       6,040,094       6,710,629  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 11,294,775       11,176,410       24,457       -            71,736,301       63,451,455       6,732,869       6,040,094  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      503,710       579,590       -           -            5,769,523       6,022,601       377,928       390,265  

Units purchased

      32,508       46,157       2,541       -            419,480       272,465       58,953       44,283  

Units redeemed

      (74,542 )      (122,037 )      (191 )      -            (192,200 )      (525,543 )      (67,415 )      (56,620 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      461,676       503,710       2,350       -            5,996,803       5,769,523       369,466       377,928  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

     FTVRDI     FTVSVI     FTVSV2     FTVMD2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 254,151       269,461       97,560       89,263       58,506       46,272       33,634       60,190  

Realized gain (loss) on investments

      683,137       712,132       433,255       773,780       (1,064,788 )      431,175       (123,269 )      (15,121 ) 

Change in unrealized gain (loss) on investments

      (422,179 )      (3,179,153 )      685,005       (2,976,841 )      2,218,341       (2,843,013 )      166,394       (344,491 ) 

Reinvested capital gains

      1,847,519       1,677,113       1,351,260       1,416,193       1,514,968       1,582,970       165,605       123,517  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      2,362,628       (520,447 )      2,567,080       (697,605 )      2,727,027       (782,596 )      242,364       (175,905 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      919,776       1,123,180       359,119       333,206       522,312       559,224       9,773       2,599  

Transfers between funds

      (423,196 )      279,626       113,757       (589,048 )      826,953       (1,300,846 )      (17,667 )      1,844,305  

Surrenders (note 6)

      (1,031,914 )      (1,583,797 )      (291,139 )      (756,064 )      (1,752,780 )      (711,121 )      (21,686 )      (11,753 ) 

Death benefits (note 4)

      (81,707 )      (47,815 )      (19,680 )      (29,984 )      (65,758 )      (116,075 )      (7,183 )      -      

Net policy repayments (loans) (note 5)

      (321,663 )      (110,064 )      (152,948 )      48,443       (21,112 )      25,281       (55,339 )      (624 ) 

Deductions for surrender charges (note 2d)

      (270 )      (619 )      (719 )      (839 )      -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b
and 2c)

      (489,784 )      (479,442 )      (326,604 )      (308,058 )      (117,284 )      (117,723 )      (61,805 )      (43,314 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (46,876 )      (49,952 )      (27,463 )      (30,096 )      (520 )      (1,210 )      (2,973 )      (2,156 ) 

MSP contracts

      (1,760 )      (1,849 )      (1,522 )      (1,538 )      -           -           -           -      

SL contracts or LSFP contracts

      (5,838 )      (6,134 )      (3,721 )      (3,867 )      -           -           -           -      

Adjustments to maintain reserves

      (3 )      4       43       (8 )      56       16       15       (3 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,483,235 )      (876,862 )      (350,877 )      (1,337,853 )      (608,133 )      (1,662,454 )      (156,865 )      1,789,054  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      879,393       (1,397,309 )      2,216,203       (2,035,458 )      2,118,894       (2,445,050 )      85,499       1,613,149  

Contract owners’ equity beginning of period

      15,754,609       17,151,918       8,658,290       10,693,748       8,856,820       11,301,870       2,077,541       464,392  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 16,634,002       15,754,609       10,874,493       8,658,290       10,975,714       8,856,820       2,163,040       2,077,541  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      570,589       599,977       255,164       292,511       436,021       512,783       147,343       32,122  

Units purchased

      25,800       43,397       13,034       11,709       71,307       48,883       7,568       124,909  

Units redeemed

      (78,509 )      (72,785 )      (22,689 )      (49,056 )      (91,325 )      (125,645 )      (18,059 )      (9,688 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      517,880       570,589       245,509       255,164       416,003       436,021       136,852       147,343  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     FTVDM2     TIF     TIF2     FTVGI2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 18,557       60,438       20,892       42,124       428,868       773,732       (2,444 )      906,016  

Realized gain (loss) on investments

      (200,815 )      (251,045 )      (8,906 )      4,703       (404,491 )      371,073       (885,426 )      (173,148 ) 

Change in unrealized gain (loss) on investments

      534,408       (778,823 )      38,695       (152,028 )      1,173,881       (3,642,164 )      1,061,378       (1,295,522 ) 

Reinvested capital gains

      -           384,881       16,379       39,502       420,475       835,214       8,984       59,042  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      352,150       (584,549 )      67,060       (65,699 )      1,618,733       (1,662,145 )      182,492       (503,612 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      238,922       220,824       -           -           460,610       385,096       258,533       268,974  

Transfers between funds

      (16,791 )      (377,918 )      (11,614 )      (17,299 )      (1,220,733 )      2,068,601       (145,882 )      (1,130,563 ) 

Surrenders (note 6)

      (237,017 )      (154,489 )      (21,485 )      (84,583 )      (388,491 )      (459,477 )      (3,023,335 )      (528,057 ) 

Death benefits (note 4)

      (2,773 )      (6,752 )      -           -           (49,836 )      (314,545 )      (174 )      (112,780 ) 

Net policy repayments (loans) (note 5)

      22,209       (6,995 )      (31,886 )      (13,453 )      (207,587 )      23,513       (11,428 )      (33,945 ) 

Deductions for surrender charges (note 2d)

      (406 )      (487 )      (1 )      -           (200 )      (1,725 )      (160 )      (148 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (95,562 )      (107,323 )      (23,596 )      (27,274 )      (389,648 )      (406,838 )      (420,037 )      (347,783 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (8,018 )      (9,377 )      (2,551 )      (3,306 )      (13,903 )      (17,288 )      (22,945 )      (26,008 ) 

MSP contracts

      (627 )      (716 )      (483 )      (532 )      (231 )      (257 )      (696 )      (863 ) 

SL contracts or LSFP contracts

      (886 )      (1,199 )      (534 )      (631 )      (2,696 )      (3,089 )      (3,560 )      (3,762 ) 

Adjustments to maintain reserves

      6       (3 )      (14 )      13       125       (33 )      (1 )      (10 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (100,943 )      (444,435 )      (92,164 )      (147,065 )      (1,812,590 )      1,273,958       (3,369,685 )      (1,914,945 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      251,207       (1,028,984 )      (25,104 )      (212,764 )      (193,857 )      (388,187 )      (3,187,193 )      (2,418,557 ) 

Contract owners’ equity beginning of period

      2,161,899       3,190,883       1,016,000       1,228,764       24,618,620       25,006,807       10,987,604       13,406,161  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 2,413,106       2,161,899       990,896       1,016,000       24,424,763       24,618,620       7,800,411       10,987,604  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      285,175       338,402       42,432       48,081       1,146,428       1,087,231       662,999       774,609  

Units purchased

      23,196       25,972       -           1       54,562       150,863       22,917       27,295  

Units redeemed

      (37,330 )      (79,199 )      (3,932 )      (5,650 )      (137,557 )      (91,666 )      (228,154 )      (138,905 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      271,041       285,175       38,500       42,432       1,063,433       1,146,428       457,762       662,999  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     FTVFA2     FTVGB1     IVKMG1     IVBRA1  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 24,446       21,227       (26,745 )      879,228       (2,421 )      (3,982 )      4,578       26,252  

Realized gain (loss) on investments

      (2,034 )      (20,790 )      (1,005,312 )      (289,149 )      367,992       493,195       (43,310 )      (5,320 ) 

Change in unrealized gain (loss) on investments

      34,141       (48,744 )      1,472,530       (1,180,828 )      (746,090 )      (808,966 )      110,463       (105,893 ) 

Reinvested capital gains

      20,693       1,161       11,364       56,886       349,893       381,271       -           54,647  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      77,246       (47,146 )      451,837       (533,863 )      (30,626 )      61,518       71,731       (30,314 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      39,548       32,418       1,019,936       1,145,793       137,192       201,155       37,280       19,819  

Transfers between funds

      (15,741 )      3,818       1,302,206       2,146,536       (1,380,268 )      496,502       858,258       271,965  

Surrenders (note 6)

      (72,468 )      (14,371 )      (1,283,311 )      (1,109,483 )      (232,058 )      (499,996 )      (59,132 )      (9,718 ) 

Death benefits (note 4)

      -           -           (43,580 )      (2,105 )      (28,388 )      (3,491 )      -           -      

Net policy repayments (loans) (note 5)

      (15,363 )      (20,211 )      (43,694 )      (46,496 )      (29,508 )      (4,917 )      (2,470 )      (12,832 ) 

Deductions for surrender charges (note 2d)

      (180 )      (52 )      -           -           (232 )      (80 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (26,296 )      (27,845 )      (202,394 )      (184,568 )      (110,740 )      (123,824 )      (36,160 )      (13,297 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (2,422 )      (2,906 )      (2,655 )      (2,186 )      (8,280 )      (9,811 )      (3,538 )      (1,956 ) 

MSP contracts

      (26 )      (53 )      -           -           (314 )      (368 )      -           -      

SL contracts or LSFP contracts

      (5 )      (6 )      -           -           (1,612 )      (1,944 )      -           -      

Adjustments to maintain reserves

      5       (9 )      90       (7 )      (7 )      (1 )      (3 )      2  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (92,948 )      (29,217 )      746,598       1,947,484       (1,654,215 )      53,225       794,235       253,983  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (15,702 )      (76,363 )      1,198,435       1,413,621       (1,684,841 )      114,743       865,966       223,669  

Contract owners’ equity beginning of period

      664,708       741,071       13,399,403       11,985,782       5,068,137       4,953,394       620,517       396,848  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 649,006       664,708       14,597,838       13,399,403       3,383,296       5,068,137       1,486,483       620,517  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      51,295       53,635       1,372,392       1,178,165       345,418       341,263       62,732       38,475  

Units purchased

      3,434       2,849       450,652       388,625       10,799       64,472       82,585       28,487  

Units redeemed

      (10,478 )      (5,189 )      (371,614 )      (194,398 )      (127,620 )      (60,317 )      (10,707 )      (4,230 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      44,251       51,295       1,451,430       1,372,392       228,597       345,418       134,610       62,732  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     JPMMV1     JPSCE1     JABS     JAMGS  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 103,235       91,758       150       (27 )      487,422       392,997       9,192       -      

Realized gain (loss) on investments

      84,083       444,429       53       33       371,249       669,691       (8,289 )      -      

Change in unrealized gain (loss) on investments

      2,027,483       (1,827,990 )      11,963       (109 )      (33,133 )      (1,831,608 )      59,755       -      

Reinvested capital gains

      866,641       890,570       5,001       -           380,816       806,630       139,121       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      3,081,442       (401,233 )      17,167       (103 )      1,206,354       37,710       199,779       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      1,015,452       1,201,351       36,574       6,725       2,377,201       2,110,919       110,425       -      

Transfers between funds

      14,317,494       5,373,498       10,226       37,330       1,678,822       551,934       4,664,985       -      

Surrenders (note 6)

      (330,481 )      (715,916 )      -           -           (2,081,787 )      (1,732,944 )      (23,331 )      -      

Death benefits (note 4)

      (53,141 )      (15,425 )      -           -           (20,585 )      (116,335 )      (3,506 )      -      

Net policy repayments (loans) (note 5)

      (57,630 )      94,161       -           -           (28,041 )      48,321       21       -      

Deductions for surrender charges (note 2d)

      -           -           -           -           (80 )      (68 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (263,554 )      (174,145 )      (2,239 )      (578 )      (556,457 )      (477,470 )      (21,484 )      -      

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (1,608 )      (1,823 )      -           -           (11,988 )      (13,978 )      (241 )      -      

MSP contracts

      -           -           -           -           (52 )      (33 )      -           -      

SL contracts or LSFP contracts

      -           -           -           -           (1,809 )      (1,702 )      -           -      

Adjustments to maintain reserves

      131       (8 )      8       (1 )      131       9       18       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      14,626,663       5,761,693       44,569       43,476       1,355,355       368,653       4,726,887       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      17,708,105       5,360,460       61,736       43,373       2,561,709       406,363       4,926,666       -      

Contract owners’ equity beginning of period

      16,060,386       10,699,926       43,373       -           25,570,430       25,164,067       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 33,768,491       16,060,386       105,109       43,373       28,132,139       25,570,430       4,926,666       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      573,578       372,474       4,684       -           947,970       933,751       -           -      

Units purchased

      573,330       235,274       5,021       4,745       490,409       182,098       522,307       -      

Units redeemed

      (89,955 )      (34,170 )      (239 )      (61 )      (438,127 )      (167,879 )      (65,095 )      -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,056,953       573,578       9,466       4,684       1,000,252       947,970       457,212       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     JAFBS     JACAS     JAGTS     JAIGS  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 281,722       183,288       345,523       544,780       8,492       119,287       1,014,708       115,319  

Realized gain (loss) on investments

      (87,233 )      2,566       (897,545 )      587,908       604,628       1,721,783       (2,062,735 )      (2,781,891 ) 

Change in unrealized gain (loss) on investments

      19,203       (311,186 )      (4,252,129 )      (5,087,638 )      679,227       (3,154,269 )      (967,714 )      (240,479 ) 

Reinvested capital gains

      -           38,354       5,577,646       9,050,213       511,313       2,055,008       580,615       798,169  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      213,692       (86,978 )      773,495       5,095,263       1,803,660       741,809       (1,435,126 )      (2,108,882 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      1,118,361       1,087,753       1,944,671       1,895,009       229,576       525,179       963,073       991,026  

Transfers between funds

      739,105       12,868,588       (1,618,379 )      (2,325,107 )      235,446       (1,127,343 )      (613,083 )      (3,561,288 ) 

Surrenders (note 6)

      (447,095 )      (5,703,917 )      (3,299,119 )      (2,459,036 )      (762,592 )      (708,591 )      (1,173,845 )      (1,984,556 ) 

Death benefits (note 4)

      (4,930 )      (243 )      (224,935 )      (180,685 )      (52,235 )      (94,680 )      (74,585 )      (133,693 ) 

Net policy repayments (loans) (note 5)

      (22,446 )      (14,547 )      42,217       (2,067 )      55,574       (80,090 )      1,057,320       70,004  

Deductions for surrender charges (note 2d)

      -           -           (2,945 )      (1,440 )      (723 )      (128 )      (1,839 )      (1,175 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (179,492 )      (132,029 )      (1,507,700 )      (1,470,574 )      (485,149 )      (550,541 )      (792,232 )      (889,261 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (887 )      (475 )      (95,079 )      (102,864 )      (41,223 )      (43,154 )      (52,104 )      (67,369 ) 

MSP contracts

      -           -           (2,708 )      (3,118 )      (884 )      (1,027 )      (2,139 )      (2,716 ) 

SL contracts or LSFP contracts

      -           -           (9,580 )      (9,469 )      2,525       (3,500 )      (5,536 )      (7,068 ) 

Adjustments to maintain reserves

      70       (15 )      63       20       38       10       39       10  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      1,202,686       8,105,115       (4,773,494 )      (4,659,331 )      (819,647 )      (2,083,865 )      (694,931 )      (5,586,086 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      1,416,378       8,018,137       (3,999,999 )      435,932       984,013       (1,342,056 )      (2,130,057 )      (7,694,968 ) 

Contract owners’ equity beginning of period

      12,417,813       4,399,676       45,096,682       44,660,750       14,007,986       15,350,042       21,561,467       29,256,435  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 13,834,191       12,417,813       41,096,683       45,096,682       14,991,999       14,007,986       19,431,410       21,561,467  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      1,234,000       435,927       2,232,703       2,473,108       1,452,572       1,666,220       1,556,610       1,927,784  

Units purchased

      397,862       1,379,110       101,902       121,359       132,104       207,499       165,120       104,627  

Units redeemed

      (284,232 )      (581,037 )      (338,506 )      (361,764 )      (216,952 )      (421,147 )      (214,962 )      (475,801 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,347,630       1,234,000       1,996,099       2,232,703       1,367,724       1,452,572       1,506,768       1,556,610  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     JAMVS     LZREMS     LOVBD     LOVMCV  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 11,267       17,362       252,812       284,940       105,903       12,564       311       (580 ) 

Realized gain (loss) on investments

      (259,699 )      (35,634 )      (1,702,967 )      (526,065 )      (2,539 )      970       (430 )      264,419  

Change in unrealized gain (loss) on investments

      305,306       (265,831 )      7,204,148       (5,757,125 )      239,149       (23,178 )      10,809       (249,505 ) 

Reinvested capital gains

      240,070       205,362       -           71,651       -           438       6,385       6,367  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      296,944       (78,741 )      5,753,993       (5,926,599 )      342,513       (9,206 )      17,075       20,701  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      21,889       33,750       1,236,136       1,613,604       18,883       19,442       102       98,328  

Transfers between funds

      (440,468 )      191,094       182,138       5,306,843       2,068,869       305,417       11,578       (1,087,833 ) 

Surrenders (note 6)

      (428,848 )      (20,238 )      (1,978,714 )      (1,284,197 )      (33,895 )      (5,624 )      (1,016 )      (45,090 ) 

Death benefits (note 4)

      -           (18,598 )      (69,218 )      (90,473 )      (163,567 )      (12 )      (8,330 )      (4,829 ) 

Net policy repayments (loans) (note 5)

      26,699       (35,753 )      (5,919 )      (8,454 )      (1 )      -           59       30,754  

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (32,715 )      (34,980 )      (343,952 )      (312,628 )      (20,618 )      (3,784 )      (1,366 )      (13,092 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (226 )      (183 )      (1,649 )      (1,608 )      -           -           (18 )      (20 ) 

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      109       (44 )      273       (89 )      28       (4 )      (5 )      (6 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (853,560 )      115,048       (980,905 )      5,222,998       1,869,699       315,435       1,004       (1,021,788 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (556,616 )      36,307       4,773,088       (703,601 )      2,212,212       306,229       18,079       (1,001,087 ) 

Contract owners’ equity beginning of period

      1,988,712       1,952,405       26,233,081       26,936,682       306,229       -           100,210       1,101,297  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 1,432,096       1,988,712       31,006,169       26,233,081       2,518,441       306,229       118,289       100,210  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      135,681       128,064       3,088,800       2,531,668       30,871       -           5,441       57,274  

Units purchased

      17,164       15,444       363,097       726,121       216,642       31,792       639       5,140  

Units redeemed

      (70,478 )      (7,827 )      (423,652 )      (168,989 )      (20,522 )      (921 )      (547 )      (56,973 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      82,367       135,681       3,028,245       3,088,800       226,991       30,871       5,533       5,441  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     LOVTRC     LOVSDC      MVBRES     MV2IGI  
     2016     2015     2016     2015      2016     2015     2016     2015  

Investment activity:

                  

Net investment income (loss)

    $ 281,316       174,278       295,157       -            7,571       6,234       17,384       16,130  

Realized gain (loss) on investments

      2,501       (494 )      1,360       -            (46,203 )      (25,354 )      (45,205 )      (28,691 ) 

Change in unrealized gain (loss) on investments

      (67,178 )      (216,048 )      (294,797 )      -            18,562       (32,654 )      (135,306 )      (223,180 ) 

Reinvested capital gains

      43,581       648       -           -            78,664       40,193       335,460       189,434  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      260,220       (41,616 )      1,720       -            58,594       (11,581 )      172,333       (46,307 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (notes 2a and 6)

      401,935       39,908       91,828       -            43,134       1,125       102,921       92,653  

Transfers between funds

      4,121,728       6,894,209       11,989,304       -            (232,876 )      922,827       21,209       3,305,041  

Surrenders (note 6)

      (14,700 )      -           (71,244 )      -            -           (82,601 )      (255,074 )      (293,265 ) 

Death benefits (note 4)

      -           -           (1,219 )      -            -           -           (2,295 )      (13,332 ) 

Net policy repayments (loans) (note 5)

      (11,228 )      (39,754 )      -           -            (2,882 )      (3,467 )      1,781       3,076  

Deductions for surrender charges (note 2d)

      -           -           -           -            -           -           (244 )      (35 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (129,414 )      (21,669 )      (29,649 )      -            (13,110 )      (5,137 )      (126,044 )      (100,784 ) 

Asset charges (note 3):

                  

FPVUL & VEL contracts

      (1,448 )      (135 )      -           -            -           (49 )      (12,214 )      (10,435 ) 

MSP contracts

      -           -           -           -            -           -           (63 )      (61 ) 

SL contracts or LSFP contracts

      -           -           -           -            -           -           (578 )      (438 ) 

Adjustments to maintain reserves

      10       12       33       -            3       (2 )      1       -      
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      4,366,883       6,872,571       11,979,053       -            (205,731 )      832,696       (270,600 )      2,982,420  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      4,627,103       6,830,955       11,980,773       -            (147,137 )      821,115       (98,267 )      2,936,113  

Contract owners’ equity beginning of period

      6,830,955       -           -           -            821,115       -           2,936,113       -      
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 11,458,058       6,830,955       11,980,773       -            673,978       821,115       2,837,846       2,936,113  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      696,348       -           -           -            74,067       -           297,791       -      

Units purchased

      445,431       702,580       1,195,736       -            3,656       82,116       17,534       329,321  

Units redeemed

      (19,253 )      (6,232 )      (14,317 )      -            (21,376 )      (8,049 )      (43,985 )      (31,530 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,122,526       696,348       1,181,419       -            56,347       74,067       271,340       297,791  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

     MV2RIS     MNDIC     MNDSC     MVFIC  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 28,917       49,361       -           -           (256 )      (1,229 )      231,520       227,749  

Realized gain (loss) on investments

      (38,030 )      (7,975 )      (53,719 )      (29,785 )      (49,918 )      (161,597 )      386,332       600,394  

Change in unrealized gain (loss) on investments

      (24,100 )      (329,223 )      63,817       13,815       35,371       152,204       (78,359 )      (1,472,583 ) 

Reinvested capital gains

      -           25,635       14,797       13,818       4,306       17,138       894,276       571,554  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (33,213 )      (262,202 )      24,895       (2,152 )      (10,497 )      6,516       1,433,769       (72,886 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      18,590       14,415       15,770       25,564       15,596       158,203       378,639       334,527  

Transfers between funds

      (169,997 )      3,185,834       (44,392 )      (110,267 )      (276,357 )      (837,747 )      1,265,114       827,531  

Surrenders (note 6)

      (6,028 )      (21,313 )      (32,569 )      (23,515 )      -           (35,937 )      (459,490 )      (811,033 ) 

Death benefits (note 4)

      (19 )      (41,733 )      -           (4,269 )      (9,639 )      (8,714 )      (47,684 )      (80,274 ) 

Net policy repayments (loans) (note 5)

      (3,900 )      (1,522 )      (15,500 )      8,650       7,430       (6,582 )      (62,065 )      18,231  

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           (451 )      (308 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (43,291 )      (36,028 )      (15,417 )      (19,715 )      (3,730 )      (14,654 )      (372,390 )      (308,692 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (26 )      (138 )      (1,221 )      (1,721 )      (26 )      (14 )      (23,835 )      (24,111 ) 

MSP contracts

      -           -           -           -           -           -           (1,025 )      (1,102 ) 

SL contracts or LSFP contracts

      -           -           -           -           -           -           (9,092 )      (7,556 ) 

Adjustments to maintain reserves

      24       (12 )      (2 )      (2 )      (13 )      6       1       25  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (204,647 )      3,099,503       (93,331 )      (125,275 )      (266,739 )      (745,439 )      667,722       (52,762 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (237,860 )      2,837,301       (68,436 )      (127,427 )      (277,236 )      (738,923 )      2,101,491       (125,648 ) 

Contract owners’ equity beginning of period

      2,837,301       -           406,846       534,273       356,357       1,095,280       9,890,222       10,015,870  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 2,599,441       2,837,301       338,410       406,846       79,121       356,357       11,991,713       9,890,222  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      310,021       -           30,567       39,384       27,229       81,742       313,122       314,764  

Units purchased

      3,115       320,363       1,295       3,212       1,137       12,670       48,654       37,529  

Units redeemed

      (25,750 )      (10,342 )      (8,547 )      (12,029 )      (22,788 )      (67,183 )      (29,005 )      (39,171 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      287,386       310,021       23,315       30,567       5,578       27,229       332,771       313,122  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     MVFSC     MVIVSC     MSVFI     MSEM  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 965,504       553,861       760,414       1,165,332       39,727       58,377       1,948,214       1,855,470  

Realized gain (loss) on investments

      1,359,038       2,356,957       3,141,015       3,129,919       20,892       24,278       (870,142 )      (253,777 ) 

Change in unrealized gain (loss) on investments

      592,887       (4,929,014 )      (2,785,489 )      (1,337,403 )      40,199       (94,256 )      2,499,907       (1,929,212 ) 

Reinvested capital gains

      4,787,257       1,733,837       1,871,728       753,330       -           -           -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      7,704,686       (284,359 )      2,987,668       3,711,178       100,818       (11,601 )      3,577,979       (327,519 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      3,231,149       2,262,626       2,891,566       2,525,979       76,273       111,355       392,831       453,468  

Transfers between funds

      19,810,427       10,197,209       8,379,773       12,401,044       423,797       6,337       (14,717,441 )      (4,396,260 ) 

Surrenders (note 6)

      (1,208,825 )      (3,106,364 )      (5,600,892 )      (3,251,179 )      (70,011 )      (68,219 )      (276,075 )      (193,165 ) 

Death benefits (note 4)

      (131,428 )      (300,145 )      (218,049 )      (159,584 )      (635 )      (61,594 )      (16,124 )      (15,782 ) 

Net policy repayments (loans) (note 5)

      53,185       84,318       (40,637 )      (28,603 )      (12,792 )      (219 )      (44,850 )      14,255  

Deductions for surrender charges (note 2d)

      -           -           -           -           (165 )      (642 )      (27 )      (23 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (726,032 )      (433,068 )      (972,870 )      (827,966 )      (113,851 )      (77,279 )      (426,544 )      (469,537 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (7,436 )      (5,268 )      (3,867 )      (3,785 )      (6,861 )      (7,267 )      (13,749 )      (14,296 ) 

MSP contracts

      -           -           -           -           (523 )      (531 )      (233 )      (249 ) 

SL contracts or LSFP contracts

      -           -           -           -           (1,093 )      (651 )      (930 )      (986 ) 

Adjustments to maintain reserves

      324       6       543       (27 )      (8 )      5       82       (25 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      21,021,364       8,699,314       4,435,567       10,655,879       294,131       (98,705 )      (15,103,060 )      (4,622,600 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      28,726,050       8,414,955       7,423,235       14,367,057       394,949       (110,306 )      (11,525,081 )      (4,950,119 ) 

Contract owners’ equity beginning of period

      36,194,371       27,779,416       74,992,713       60,625,656       1,607,721       1,718,027       33,218,941       38,169,060  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 64,920,421       36,194,371       82,415,948       74,992,713       2,002,670       1,607,721       21,693,860       33,218,941  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      2,395,774       1,817,807       3,393,304       2,912,540       101,355       107,604       826,783       955,142  

Units purchased

      1,683,336       840,716       604,787       630,035       31,361       9,074       22,258       20,725  

Units redeemed

      (292,883 )      (262,749 )      (399,725 )      (149,271 )      (13,733 )      (15,323 )      (342,008 )      (149,084 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      3,786,227       2,395,774       3,598,366       3,393,304       118,983       101,355       507,033       826,783  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     VKVGR2     MSVMG     MSVEG     MSVRE  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 62,659       102,500       (15,593 )      (25,778 )      (3,172 )      (2,889 )      223,274       228,173  

Realized gain (loss) on investments

      178,466       137,343       (1,835,295 )      404,517       7,923       77,818       2,089,195       1,866,918  

Change in unrealized gain (loss) on investments

      (57,078 )      (327,136 )      825,277       (2,908,765 )      (270,212 )      (109,131 )      (1,046,284 )      (1,665,444 ) 

Reinvested capital gains

      -           -           329,968       1,892,001       251,337       175,597       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      184,047       (87,293 )      (695,643 )      (638,025 )      (14,124 )      141,395       1,266,185       429,647  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      384,977       593,798       110,401       124,487       2,621       17,433       206,868       295,882  

Transfers between funds

      (574,458 )      330,956       (2,080,063 )      (2,952,517 )      307,430       47,951       (2,294,347 )      2,426,423  

Surrenders (note 6)

      (368,395 )      (226,675 )      (866,279 )      (353,724 )      (15,917 )      (39,662 )      (1,017,885 )      (2,961,280 ) 

Death benefits (note 4)

      (3,247 )      (8,033 )      (97,259 )      (64,622 )      -           (1,287 )      -           (166,071 ) 

Net policy repayments (loans) (note 5)

      59,364       (47,412 )      50,796       (22,686 )      (8,411 )      (6,922 )      (33,589 )      80,404  

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (82,289 )      (81,105 )      (84,743 )      (139,145 )      (59,738 )      (49,153 )      (192,379 )      (200,326 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (535 )      (575 )      (521 )      (704 )      (445 )      (341 )      42       1  

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      43       (60 )      9       (59 )      15       (5 )      189       87  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (584,540 )      560,894       (2,967,659 )      (3,408,970 )      225,555       (31,986 )      (3,331,101 )      (524,880 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (400,493 )      473,601       (3,663,302 )      (4,046,995 )      211,431       109,409       (2,064,916 )      (95,233 ) 

Contract owners’ equity beginning of period

      5,270,760       4,797,159       9,220,353       13,267,348       1,390,107       1,280,698       20,329,045       20,424,278  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 4,870,267       5,270,760       5,557,051       9,220,353       1,601,538       1,390,107       18,264,129       20,329,045  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      471,131       421,696       561,751       758,843       69,285       71,574       402,965       417,956  

Units purchased

      179,301       82,705       6,899       33,092       18,681       5,534       16,927       62,678  

Units redeemed

      (227,833 )      (33,270 )      (195,984 )      (230,184 )      (6,668 )      (7,823 )      (81,398 )      (77,669 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      422,599       471,131       372,666       561,751       81,298       69,285       338,494       402,965  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     IDPGI     IDPG     NCPGI      NCPG  
     2016     2015     2016     2015     2016     2015      2016     2015  

Investment activity:

                  

Net investment income (loss)

    $ 15       -           56       821       14       -            1,603       580  

Realized gain (loss) on investments

      -           -           (1,347 )      (41 )      70       -            (1,431 )      (141 ) 

Change in unrealized gain (loss) on investments

      (21 )      -           3,568       (3,568 )      (21 )      -            3,247       (2,468 ) 

Reinvested capital gains

      -           -           -           -           -           -            -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (6 )      -           2,277       (2,788 )      63       -            3,419       (2,029 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (notes 2a and 6)

      2       23       -           -           230       -            1,927       1,768  

Transfers between funds

      812       -           (43,826 )      46,968       678       -            2,235       3,972  

Surrenders (note 6)

      -           -           -           -           -           -            -           -      

Death benefits (note 4)

      -           -           -           -           -           -            -           -      

Net policy repayments (loans) (note 5)

      -           -           -           -           -           -            (1 )      -      

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -            -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (7 )      (24 )      (1,321 )      (1,120 )      (162 )      -            (3,369 )      (2,442 ) 

Asset charges (note 3):

                  

FPVUL & VEL contracts

      -           -           (79 )      (110 )      (6 )      -            (296 )      (246 ) 

MSP contracts

      -           -           -           -           -           -            -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -            -           -      

Adjustments to maintain reserves

      5       (9 )      (3 )      2       1       -            (3 )      (3 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net equity transactions

      812       (10 )      (45,229 )      45,740       741       -            493       3,049  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net change in contract owners’ equity

      806       (10 )      (42,952 )      42,952       804       -            3,912       1,020  

Contract owners’ equity beginning of period

      -           10       42,952       -           -           -            44,339       43,319  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 806       -           -           42,952       804       -            48,251       44,339  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      -           1       4,397       -           -           -            4,610       4,296  

Units purchased

      78       2       -           4,519       102       -            484       581  

Units redeemed

      (1 )      (3 )      (4,397 )      (122 )      (24 )      -            (379 )      (267 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Ending units

      77       -           -           4,397       78       -            4,715       4,610  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

     NVBX     NVIX     NVAMV1     GVAAA2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 2,095,416       1,636,597       663,001       481,793       899,308       920,371       172,460       117,552  

Realized gain (loss) on investments

      (114,780 )      (23,044 )      (1,009,193 )      (326,095 )      348,874       797,905       549,210       359,686  

Change in unrealized gain (loss) on investments

      (311,640 )      (3,064,290 )      737,391       (335,354 )      2,121,293       (8,168,940 )      (492,088 )      (736,288 ) 

Reinvested capital gains

      207,636       955,281       -           -           3,723,802       4,779,006       546,241       364,806  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,876,632       (495,456 )      391,199       (179,656 )      7,093,277       (1,671,658 )      775,823       105,756  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      148,823       1,114,871       806,057       722,863       1,464,014       1,583,758       360,560       346,026  

Transfers between funds

      4,245,156       37,797,410       6,174,183       9,584,491       247,637       (455,764 )      323,836       1,138,220  

Surrenders (note 6)

      (1,387,403 )      (16,111 )      (1,377,368 )      (450,369 )      (1,933,684 )      (2,241,776 )      (436,352 )      (586,368 ) 

Death benefits (note 4)

      (187,056 )      -           (41,354 )      (92,138 )      (149,913 )      (213,106 )      -           (80,268 ) 

Net policy repayments (loans) (note 5)

      (43,938 )      (33 )      (136,400 )      (521,234 )      (202,165 )      36,591       (11,770 )      (18,881 ) 

Deductions for surrender charges (note 2d)

      -           -           -           -           (1,687 )      (1,335 )      (1,041 )      (163 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b
and 2c)

      (1,302,722 )      (955,872 )      (358,301 )      (286,001 )      (1,522,502 )      (1,472,017 )      (340,128 )      (303,689 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (15,544 )      (6,924 )      (6,019 )      (5,828 )      (123,355 )      (132,092 )      (25,452 )      (24,378 ) 

MSP contracts

      -           -           -           -           (6,042 )      (6,096 )      (5,852 )      (5,856 ) 

SL contracts or LSFP contracts

      -           -           -           -           (14,292 )      (14,876 )      (9,024 )      (8,178 ) 

Adjustments to maintain reserves

      457       19       138       (6 )      15       20       11       (4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      1,457,773       37,933,360       5,060,936       8,951,778       (2,241,974 )      (2,916,693 )      (145,212 )      456,461  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      3,334,405       37,437,904       5,452,135       8,772,122       4,851,303       (4,588,351 )      630,611       562,217  

Contract owners’ equity beginning of period

      95,391,912       57,954,008       20,212,790       11,440,668       36,335,010       40,923,361       8,632,339       8,070,122  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 98,726,317       95,391,912       25,664,925       20,212,790       41,186,313       36,335,010       9,262,950       8,632,339  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      9,294,873       5,645,631       2,225,659       1,245,179       1,546,350       1,667,165       519,808       490,736  

Units purchased

      365,216       3,744,487       865,879       1,156,774       72,517       78,350       53,624       95,916  

Units redeemed

      (236,711 )      (95,245 )      (285,881 )      (176,294 )      (163,502 )      (199,165 )      (61,703 )      (66,844 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      9,423,378       9,294,873       2,805,657       2,225,659       1,455,365       1,546,350       511,729       519,808  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     GVABD2     GVAGG2     GVAGR2     GVAGI2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 36,167       20,782       106,999       50,419       21,216       68,120       33,651       26,525  

Realized gain (loss) on investments

      38,312       11,121       218,075       215,150       459,935       622,304       216,152       242,222  

Change in unrealized gain (loss) on investments

      (31,601 )      (35,615 )      (1,024,820 )      (564,797 )      (1,621,539 )      (338,258 )      (321,435 )      (441,408 ) 

Reinvested capital gains

      4,994       638       683,147       699,828       1,979,469       250,621       400,303       214,130  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      47,872       (3,074 )      (16,599 )      400,600       839,081       602,787       328,671       41,469  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      83,662       96,702       341,622       452,574       371,254       396,791       156,561       109,970  

Transfers between funds

      27,616       45,031       (89,150 )      1,290,083       (545,913 )      (252,626 )      176,428       (106,808 ) 

Surrenders (note 6)

      (170,862 )      (74,558 )      (496,395 )      (424,295 )      (279,291 )      (506,271 )      (270,016 )      (255,965 ) 

Death benefits (note 4)

      (2,649 )      (15,049 )      (76,529 )      (62,013 )      (1,704 )      (109,468 )      (7,167 )      (10,513 ) 

Net policy repayments (loans) (note 5)

      725       10,283       6,389       (42,336 )      167,704       43,577       792       (25,952 ) 

Deductions for surrender charges (note 2d)

      (284 )      -           (723 )      (259 )      (737 )      (1,858 )      (527 )      (1,154 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (105,553 )      (97,339 )      (238,363 )      (224,435 )      (291,667 )      (290,375 )      (87,098 )      (85,008 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (4,727 )      (5,061 )      (19,868 )      (21,384 )      (25,391 )      (27,597 )      (7,101 )      (7,830 ) 

MSP contracts

      (650 )      (710 )      (1,129 )      (1,386 )      (1,959 )      (1,999 )      (1,449 )      (1,385 ) 

SL contracts or LSFP contracts

      (1,773 )      (1,651 )      (3,394 )      (3,227 )      (5,334 )      (5,220 )      (1,598 )      (1,640 ) 

Adjustments to maintain reserves

      (1 )      2       (2 )      3       (17 )      (12 )      (10 )      7  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (174,496 )      (42,350 )      (577,542 )      963,325       (613,055 )      (755,058 )      (41,185 )      (386,278 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (126,624 )      (45,424 )      (594,141 )      1,363,925       226,026       (152,271 )      287,486       (344,809 ) 

Contract owners’ equity beginning of period

      1,499,841       1,545,265       7,898,072       6,534,147       9,541,628       9,693,899       2,990,282       3,335,091  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 1,373,217       1,499,841       7,303,931       7,898,072       9,767,654       9,541,628       3,277,768       2,990,282  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      113,914       117,093       426,191       375,662       539,000       582,797       198,459       223,749  

Units purchased

      10,133       9,353       25,660       87,990       35,097       30,465       12,369       9,549  

Units redeemed

      (22,443 )      (12,532 )      (58,456 )      (37,461 )      (68,181 )      (74,262 )      (15,000 )      (34,839 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      101,604       113,914       393,395       426,191       505,916       539,000       195,828       198,459  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     HIBF     GEM     GIG     NVIE6  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 1,196,876       1,110,809       87,265       101,484       347,532       85,171       3,624       575  

Realized gain (loss) on investments

      (443,818 )      (322,084 )      (467,161 )      (20,731 )      (592,988 )      335,160       1,835       12,875  

Change in unrealized gain (loss) on investments

      1,967,467       (1,573,157 )      1,197,795       (2,228,621 )      338,926       (1,973,168 )      (4,487 )      (27,123 ) 

Reinvested capital gains

      -           201,950       -           -           -           715,461       -           8,061  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      2,720,525       (582,482 )      817,899       (2,147,868 )      93,470       (837,376 )      972       (5,612 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      444,134       540,486       487,838       627,076       625,986       866,134       -           -      

Transfers between funds

      89,265       334,386       767,447       (413,298 )      (1,137,075 )      4,286,531       (2,433 )      (30,070 ) 

Surrenders (note 6)

      (435,487 )      (533,878 )      (753,593 )      (492,012 )      (453,967 )      (1,470,726 )      -           (369 ) 

Death benefits (note 4)

      (21,830 )      (246,592 )      (35,683 )      (25,016 )      (16,130 )      (153,795 )      -           -      

Net policy repayments (loans) (note 5)

      (138,104 )      8,701       28,578       91,545       (99,360 )      84,695       (822 )      (8,875 ) 

Deductions for surrender charges (note 2d)

      (688 )      (613 )      (976 )      (1,231 )      -           (1,279 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (601,411 )      (612,975 )      (383,311 )      (394,402 )      (419,203 )      (436,243 )      (5,013 )      (5,605 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (34,408 )      (38,021 )      (21,675 )      (25,380 )      (25,526 )      (30,393 )      (332 )      (395 ) 

MSP contracts

      (1,898 )      (2,034 )      (5,256 )      (5,878 )      (1,300 )      (1,429 )      -           -      

SL contracts or LSFP contracts

      (6,713 )      (7,017 )      (3,901 )      (4,045 )      (3,940 )      (3,910 )      (540 )      (747 ) 

Adjustments to maintain reserves

      177       (33 )      58       (124 )      27       (40 )      6       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (706,963 )      (557,590 )      79,526       (642,765 )      (1,530,488 )      3,139,545       (9,134 )      (46,061 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      2,013,562       (1,140,072 )      897,425       (2,790,633 )      (1,437,018 )      2,302,169       (8,162 )      (51,673 ) 

Contract owners’ equity beginning of period

      20,149,457       21,289,529       11,336,532       14,127,165       18,048,434       15,746,265       195,933       247,606  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 22,163,019       20,149,457       12,233,957       11,336,532       16,611,416       18,048,434       187,771       195,933  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      792,106       816,154       532,848       557,428       1,135,892       960,722       20,759       25,389  

Units purchased

      37,899       104,690       66,419       38,459       84,672       310,041       1       -      

Units redeemed

      (65,636 )      (128,738 )      (65,268 )      (63,039 )      (184,217 )      (134,871 )      (991 )      (4,630 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      764,369       792,106       533,999       532,848       1,036,347       1,135,892       19,769       20,759  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NVNMO1     NVNSR1     NVCRA1     NVCRB1  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 119,416       121,719       1,983       2,461       84,549       94,921       4,634,957       4,578,317  

Realized gain (loss) on investments

      205,302       421,357       (11,232 )      7,480       (308,425 )      262,450       269,250       460,379  

Change in unrealized gain (loss) on investments

      871,200       (2,058,459 )      4,646       (60,802 )      211,953       (659,139 )      (2,720,352 )      (13,401,114 ) 

Reinvested capital gains

      721,745       1,364,862       25,658       51,609       261,329       265,482       8,289,013       6,327,978  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,917,663       (150,521 )      21,055       748       249,406       (36,286 )      10,472,868       (2,034,440 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      548,695       573,152       13,015       14,989       847,975       899,864       1,304,236       1,083,952  

Transfers between funds

      (320,075 )      (353,784 )      (11,410 )      (38,898 )      (179,792 )      (567,694 )      342,117       1,602,695  

Surrenders (note 6)

      (659,158 )      (1,137,217 )      (31,333 )      (28,912 )      (232,884 )      (152,826 )      (117,595 )      (36,728 ) 

Death benefits (note 4)

      (86,049 )      (261,990 )      -           (305 )      (2,634 )      (10,401 )      (25,228 )      (42,177 ) 

Net policy repayments (loans) (note 5)

      130,197       225,402       (263 )      (3,598 )      (182,394 )      (489,258 )      (653,670 )      (807,557 ) 

Deductions for surrender charges (note 2d)

      (283 )      (167 )      -           (33 )      (22 )      (61 )      -           (12 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (630,675 )      (644,929 )      (13,358 )      (14,193 )      (186,045 )      (197,084 )      (1,989,216 )      (1,846,915 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (46,516 )      (51,966 )      (719 )      (958 )      (8,822 )      (10,040 )      (19,131 )      (17,852 ) 

MSP contracts

      (1,607 )      (1,777 )      (28 )      (28 )      (236 )      (246 )      (323 )      (331 ) 

SL contracts or LSFP contracts

      (3,320 )      (3,717 )      (128 )      (181 )      (180 )      (89 )      (845 )      (854 ) 

Adjustments to maintain reserves

      (15 )      3       (5 )      (2 )      (3 )      8       446       (13 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,068,806 )      (1,656,990 )      (44,229 )      (72,119 )      54,963       (527,827 )      (1,159,209 )      (65,792 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      848,857       (1,807,511 )      (23,174 )      (71,371 )      304,369       (564,113 )      9,313,659       (2,100,232 ) 

Contract owners’ equity beginning of period

      14,986,341       16,793,852       277,452       348,823       3,598,068       4,162,181       170,635,089       172,735,321  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 15,835,198       14,986,341       254,278       277,452       3,902,437       3,598,068       179,948,748       170,635,089  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      1,043,310       1,156,523       16,728       20,963       257,344       294,102       10,232,948       10,224,638  

Units purchased

      46,450       47,165       1,429       1,458       64,162       70,425       150,628       205,282  

Units redeemed

      (119,347 )      (160,378 )      (4,234 )      (5,693 )      (64,146 )      (107,183 )      (217,201 )      (196,972 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      970,413       1,043,310       13,923       16,728       257,360       257,344       10,166,375       10,232,948  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NVCCA1     NVCCN1     NVCMD1     NVCMA1  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 165,184       176,683       99,483       88,221       188,889       212,526       179,825       227,043  

Realized gain (loss) on investments

      (237,194 )      418,112       (152,686 )      (28,414 )      70,627       244,372       (37,099 )      157,741  

Change in unrealized gain (loss) on investments

      22,595       (994,295 )      126,724       (178,676 )      (259,020 )      (945,306 )      (204,134 )      (1,211,324 ) 

Reinvested capital gains

      433,816       374,005       97,910       116,071       459,457       418,690       560,402       704,360  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      384,401       (25,495 )      171,431       (2,798 )      459,953       (69,718 )      498,994       (122,180 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      961,973       1,135,786       648,919       824,546       540,910       526,365       279,590       411,082  

Transfers between funds

      361,339       (1,082,452 )      (311,022 )      (1,131,364 )      (364,884 )      (19,785 )      (117,539 )      (3,579 ) 

Surrenders (note 6)

      (349,317 )      (155,433 )      (12,504 )      (326,280 )      (602,041 )      (444,109 )      (488,056 )      (423,643 ) 

Death benefits (note 4)

      (6,414 )      (154,515 )      (181,344 )      (32,074 )      132       (214,516 )      -           -      

Net policy repayments (loans) (note 5)

      (589,196 )      (709,251 )      (237,839 )      (462,179 )      258,750       (405 )      305,450       (203,684 ) 

Deductions for surrender charges (note 2d)

      (8,921 )      (13 )      -           -           (1,220 )      (622 )      (1,380 )      (631 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (338,427 )      (282,398 )      (220,768 )      (225,824 )      (205,496 )      (317,909 )      (188,632 )      (196,076 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (16,619 )      (16,233 )      (8,764 )      (10,925 )      (15,144 )      (16,496 )      (17,980 )      (19,012 ) 

MSP contracts

      (447 )      (458 )      (325 )      (327 )      (2,454 )      (2,678 )      (3,933 )      (4,185 ) 

SL contracts or LSFP contracts

      (385 )      (1,112 )      (183 )      (203 )      (5,188 )      (5,569 )      (4,324 )      (5,802 ) 

Adjustments to maintain reserves

      (8 )      15       (6 )      8       -           (9 )      (9 )      9  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      13,578       (1,266,064 )      (323,836 )      (1,364,622 )      (396,635 )      (495,733 )      (236,813 )      (445,521 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      397,979       (1,291,559 )      (152,405 )      (1,367,420 )      63,318       (565,451 )      262,181       (567,701 ) 

Contract owners’ equity beginning of period

      5,863,151       7,154,710       4,132,995       5,500,415       6,859,396       7,424,847       6,554,672       7,122,373  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 6,261,130       5,863,151       3,980,590       4,132,995       6,922,714       6,859,396       6,816,853       6,554,672  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      413,648       502,308       315,786       418,416       490,108       527,052       465,467       500,786  

Units purchased

      105,129       88,126       59,297       73,080       48,141       55,092       27,618       63,245  

Units redeemed

      (103,850 )      (176,786 )      (84,982 )      (175,710 )      (75,079 )      (92,036 )      (44,761 )      (98,564 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      414,927       413,648       290,101       315,786       463,170       490,108       448,324       465,467  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NVCMC1     NVCBD1     NVLCP1     TRF  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 112,639       125,903       49,627       31,119       68,874       45,283       1,709,803       1,456,800  

Realized gain (loss) on investments

      (155,765 )      52,192       (1,299 )      (20,738 )      6,830       11,348       8,597,119       1,961,336  

Change in unrealized gain (loss) on investments

      125,934       (445,501 )      210       (34,232 )      485       (85,502 )      4,064,038       (2,665,260 ) 

Reinvested capital gains

      156,143       187,946       2,375       6,921       8,840       21,321       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      238,951       (79,460 )      50,913       (16,930 )      85,029       (7,550 )      14,370,960       752,876  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      566,087       452,583       29,696       16,183       44,815       93,526       2,193,809       2,543,833  

Transfers between funds

      (704,248 )      1,413,325       982,633       135,342       (28,979 )      172,711       (1,404,286 )      11,702,763  

Surrenders (note 6)

      (97,955 )      (67,197 )      (19,807 )      (60,202 )      (100,236 )      (224,008 )      (2,441,021 )      (1,805,220 ) 

Death benefits (note 4)

      (13,368 )      (89,692 )      -           (935 )      -           (250 )      (487,634 )      (341,999 ) 

Net policy repayments (loans) (note 5)

      (324,538 )      (344,348 )      (333,200 )      (55,182 )      (90,348 )      5,816       (312,836 )      (199,155 ) 

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           (454 )      (2,099 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (215,749 )      (192,694 )      (33,281 )      (27,905 )      (93,228 )      (81,522 )      (2,964,696 )      (3,003,297 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (8,805 )      (8,780 )      (1,870 )      (2,127 )      (1,944 )      (2,354 )      (146,321 )      (160,819 ) 

MSP contracts

      (1,147 )      (1,668 )      (143 )      (67 )      (26 )      (26 )      (6,099 )      (9,162 ) 

SL contracts or LSFP contracts

      (159 )      (164 )      (1,791 )      (1,626 )      (2,916 )      (2,784 )      (6,251 )      (7,793 ) 

Adjustments to maintain reserves

      3       (7 )      5       (1 )      6       3       1,994       101  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (799,879 )      1,161,358       622,242       3,480       (272,856 )      (38,888 )      (5,573,795 )      8,717,153  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (560,928 )      1,081,898       673,155       (13,450 )      (187,827 )      (46,438 )      8,797,165       9,470,029  

Contract owners’ equity beginning of period

      4,919,377       3,837,479       977,281       990,731       2,410,668       2,457,106       122,867,582       113,397,553  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 4,358,449       4,919,377       1,650,436       977,281       2,222,841       2,410,668       131,664,747       122,867,582  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      356,776       274,907       71,807       72,271       163,170       165,785       6,001,037       5,535,091  

Units purchased

      72,879       140,086       70,362       11,010       5,309       20,514       116,108       748,764  

Units redeemed

      (129,480 )      (58,217 )      (27,055 )      (11,474 )      (23,389 )      (23,129 )      (315,749 )      (282,818 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      300,175       356,776       115,114       71,807       145,090       163,170       5,801,396       6,001,037  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     GBF     GVIX2     GVIDA     NVDBL2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 1,026,592       916,467       56,393       69,549       360,253       315,033       29,850       26,096  

Realized gain (loss) on investments

      (810,781 )      (1,147,822 )      (276,330 )      (14,940 )      985,983       1,672,651       9,176       99,252  

Change in unrealized gain (loss) on investments

      101,038       198,899       132,903       (84,619 )      (1,018,963 )      (2,196,869 )      19,056       (178,091 ) 

Reinvested capital gains

      -           -           -           -           1,644,978       -           36,174       40,642  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      316,849       (32,456 )      (87,034 )      (30,010 )      1,972,251       (209,185 )      94,256       (12,101 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      2,120,756       1,991,739       97,070       107,941       1,040,392       1,182,035       50,802       37,179  

Transfers between funds

      1,079,263       (4,379,357 )      (979,881 )      (80,351 )      414,496       (1,448,865 )      20,142       187,614  

Surrenders (note 6)

      (1,603,048 )      (3,050,632 )      (13,662 )      (59,669 )      (1,296,953 )      (1,185,905 )      (14,238 )      (618,219 ) 

Death benefits (note 4)

      (1,082,081 )      (318,555 )      -           (14 )      (69,650 )      (3,560 )      -           -      

Net policy repayments (loans) (note 5)

      127,169       326,008       10,508       189       142,792       (39,343 )      194       20,983  

Deductions for surrender charges (note 2d)

      (157 )      (2,798 )      (83 )      -           (4,182 )      (4,390 )      -           (52 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (2,851,290 )      (3,045,781 )      (33,320 )      (43,659 )      (782,452 )      (795,573 )      (70,444 )      (62,846 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (74,052 )      (76,862 )      (1,789 )      (2,455 )      (65,492 )      (70,388 )      (4,019 )      (4,584 ) 

MSP contracts

      (6,501 )      (6,866 )      (105 )      (93 )      (3,732 )      (5,063 )      -           -      

SL contracts or LSFP contracts

      (14,265 )      (15,067 )      (2,518 )      (2,546 )      (4,565 )      (5,661 )      (399 )      (865 ) 

Adjustments to maintain reserves

      207       (71 )      6       (3 )      138       (28 )      (2 )      (2 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (2,303,999 )      (8,578,242 )      (923,774 )      (80,660 )      (629,208 )      (2,376,741 )      (17,964 )      (440,792 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (1,987,150 )      (8,610,698 )      (1,010,808 )      (110,670 )      1,343,043       (2,585,926 )      76,292       (452,893 ) 

Contract owners’ equity beginning of period

      55,120,112       63,730,810       3,319,649       3,430,319       21,912,397       24,498,323       1,514,570       1,967,463  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 53,132,962       55,120,112       2,308,841       3,319,649       23,255,440       21,912,397       1,590,862       1,514,570  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      2,796,778       3,237,960       361,122       368,560       969,751       1,073,873       90,670       117,578  

Units purchased

      189,216       165,009       25,531       26,256       98,271       85,082       4,169       14,275  

Units redeemed

      (304,846 )      (606,191 )      (139,119 )      (33,694 )      (127,279 )      (189,204 )      (5,248 )      (41,183 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,681,148       2,796,778       247,534       361,122       940,743       969,751       89,591       90,670  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NVDCA2     GVIDC     GVIDM     GVDMA  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 13,427       11,651       260,475       172,036       1,152,052       1,053,712       1,441,293       1,233,878  

Realized gain (loss) on investments

      189       14,466       (109,900 )      45,800       3,033,546       4,105,563       1,897,818       837,951  

Change in unrealized gain (loss) on investments

      12,102       (58,470 )      40,928       (519,493 )      (3,255,184 )      (7,970,940 )      (2,774,674 )      (4,178,965 ) 

Reinvested capital gains

      28,129       26,565       272,357       330,282       3,499,125       2,652,853       6,142,556       1,569,710  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      53,847       (5,788 )      463,860       28,625       4,429,539       (158,812 )      6,706,993       (537,426 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      43,000       42,295       475,970       389,859       2,417,298       2,430,844       5,646,453       6,024,829  

Transfers between funds

      42,622       89,755       4,326,003       29,001       196,939       522,311       (186,627 )      (1,692,464 ) 

Surrenders (note 6)

      (59,160 )      (38,186 )      (1,149,619 )      (701,864 )      (4,275,009 )      (5,435,234 )      (4,363,313 )      (4,350,324 ) 

Death benefits (note 4)

      -           -           (53,597 )      (114,764 )      (656,801 )      (502,638 )      (576,517 )      (336,241 ) 

Net policy repayments (loans) (note 5)

      (5,439 )      4,194       (63,433 )      51,174       (257,503 )      135,400       (36,894 )      237,276  

Deductions for surrender charges (note 2d)

      -           -           (253 )      (5,625 )      (1,893 )      (5,828 )      (10,921 )      (12,072 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (37,514 )      (30,835 )      (424,037 )      (360,042 )      (2,683,284 )      (2,797,303 )      (2,942,367 )      (2,923,391 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (3,052 )      (2,987 )      (17,975 )      (19,674 )      (161,616 )      (180,153 )      (228,386 )      (245,877 ) 

MSP contracts

      (20 )      (15 )      (6,125 )      (6,622 )      (33,215 )      (35,215 )      (17,667 )      (19,501 ) 

SL contracts or LSFP contracts

      (22 )      (24 )      (1,681 )      (1,823 )      (25,181 )      (26,048 )      (34,285 )      (37,790 ) 

Adjustments to maintain reserves

      17       (6 )      38       6       92       (12 )      161       (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (19,568 )      64,191       3,085,291       (740,374 )      (5,480,173 )      (5,893,876 )      (2,750,363 )      (3,355,560 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      34,279       58,403       3,549,151       (711,749 )      (1,050,634 )      (6,052,688 )      3,956,630       (3,892,986 ) 

Contract owners’ equity beginning of period

      724,321       665,918       10,263,238       10,974,987       63,960,082       70,012,770       82,593,425       86,486,411  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 758,600       724,321       13,812,389       10,263,238       62,909,448       63,960,082       86,550,055       82,593,425  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      38,096       34,838       616,603       658,975       3,138,153       3,422,115       3,783,159       3,927,295  

Units purchased

      4,842       7,345       294,906       125,765       211,436       270,463       552,248       322,852  

Units redeemed

      (5,905 )      (4,087 )      (111,658 )      (168,137 )      (468,209 )      (554,425 )      (677,589 )      (466,988 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      37,033       38,096       799,851       616,603       2,881,380       3,138,153       3,657,818       3,783,159  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     GVDMC     MCIF     SAM     SAM5  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 317,033       264,360       1,074,569       888,237       2,155       (951 )      (284,448 )      (333,343 ) 

Realized gain (loss) on investments

      460,310       605,046       2,317,374       4,293,344       -           -           -           -      

Change in unrealized gain (loss) on investments

      (450,158 )      (1,663,219 )      5,032,195       (13,288,336 )      -           -           -           -      

Reinvested capital gains

      558,313       805,499       8,766,100       5,707,304       972       -           3,387       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      885,498       11,686       17,190,238       (2,399,451 )      3,127       (951 )      (281,061 )      (333,343 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      857,976       717,662       6,040,502       3,666,024       5,109,818       5,346,776       46,472,545       67,241,278  

Transfers between funds

      2,292,294       (422,366 )      6,022,491       11,500,240       9,784,542       909,202       (41,584,537 )      (32,166,590 ) 

Surrenders (note 6)

      (1,749,031 )      (609,927 )      (4,944,678 )      (4,240,818 )      (12,089,270 )      (11,176,309 )      (14,424,350 )      (26,353,554 ) 

Death benefits (note 4)

      (317,931 )      (174,084 )      (206,391 )      (355,217 )      (927,476 )      (501,489 )      (282,166 )      (411,633 ) 

Net policy repayments (loans) (note 5)

      50,151       (10,694 )      (817,116 )      (374,216 )      948,710       1,334,668       (5,460,521 )      (1,835,385 ) 

Deductions for surrender charges (note 2d)

      (15 )      (5 )      (3,688 )      (746 )      (3,815 )      (9,915 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (643,702 )      (599,664 )      (2,118,991 )      (1,818,123 )      (3,900,013 )      (4,462,252 )      (3,800,159 )      (3,351,867 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (34,288 )      (37,143 )      (100,214 )      (108,817 )      (195,938 )      (211,979 )      (47,667 )      (44,848 ) 

MSP contracts

      (16,886 )      (18,148 )      (1,624 )      (1,654 )      (9,547 )      (10,074 )      -           -      

SL contracts or LSFP contracts

      (5,723 )      (5,812 )      (9,890 )      (10,384 )      (34,059 )      (35,886 )      -           -      

Adjustments to maintain reserves

      24       12       475       (7 )      (23 )      8       719       (1,103 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      432,869       (1,160,169 )      3,860,876       8,256,282       (1,317,071 )      (8,817,250 )      (19,126,136 )      3,076,298  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      1,318,367       (1,148,483 )      21,051,114       5,856,831       (1,313,944 )      (8,818,201 )      (19,407,197 )      2,742,955  

Contract owners’ equity beginning of period

      15,576,328       16,724,811       86,562,644       80,705,813       47,207,095       56,025,296       169,295,370       166,552,415  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 16,894,695       15,576,328       107,613,758       86,562,644       45,893,151       47,207,095       149,888,173       169,295,370  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      822,967       883,442       2,307,024       2,088,515       3,306,864       4,000,593       14,808,532       14,550,861  

Units purchased

      170,877       44,055       417,397       403,167       1,086,086       864,203       4,976,382       6,401,667  

Units redeemed

      (146,703 )      (104,530 )      (304,399 )      (184,658 )      (1,178,805 )      (1,557,932 )      (6,656,387 )      (6,143,996 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      847,141       822,967       2,420,022       2,307,024       3,214,145       3,306,864       13,128,527       14,808,532  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NVMIG1     GVDIVI     NVMLG1     NVMLV1  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 212,888       116,752       138,539       63,174       99,748       54,076       299,177       195,620  

Realized gain (loss) on investments

      (249,443 )      (112,543 )      (107,896 )      (96,999 )      424,480       526,118       263,430       380,083  

Change in unrealized gain (loss) on investments

      (591,956 )      (1,031,137 )      211,218       (245,562 )      (2,061,247 )      (1,170,396 )      195,471       (1,926,947 ) 

Reinvested capital gains

      321,679       962,551       -           -           1,756,323       981,251       1,764,870       766,122  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (306,832 )      (64,377 )      241,861       (279,387 )      219,304       391,049       2,522,948       (585,122 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      697,760       746,673       195,849       233,764       449,741       534,999       401,459       350,616  

Transfers between funds

      (362,112 )      401,483       36,013       (157,266 )      913,772       234,727       (234,361 )      9,700,006  

Surrenders (note 6)

      (759,746 )      (896,212 )      (238,501 )      (306,186 )      (801,618 )      (748,598 )      (277,924 )      (537,531 ) 

Death benefits (note 4)

      (42,311 )      (84,422 )      (8,233 )      (22,219 )      (23,626 )      (199,197 )      (8,146 )      (18,410 ) 

Net policy repayments (loans) (note 5)

      154,447       91,200       (1,684 )      54,609       (4,474 )      (45,548 )      (66,425 )      3,882  

Deductions for surrender charges (note 2d)

      (233 )      (62 )      (219 )      (1,563 )      (978 )      (1,373 )      (345 )      (346 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b
and 2c)

      (719,562 )      (731,684 )      (180,737 )      (188,960 )      (423,914 )      (456,637 )      (358,100 )      (276,744 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (45,353 )      (53,191 )      (14,795 )      (17,670 )      (36,228 )      (40,503 )      (21,863 )      (24,081 ) 

MSP contracts

      (2,308 )      (2,519 )      (214 )      (255 )      (1,137 )      (1,391 )      (512 )      (521 ) 

SL contracts or LSFP contracts

      (4,632 )      (5,183 )      (2,354 )      (2,631 )      (4,272 )      (4,787 )      (2,097 )      (2,267 ) 

Adjustments to maintain reserves

      6       (6 )      -           10       1       -           62       (42 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,084,044 )      (533,923 )      (214,875 )      (408,367 )      67,267       (728,308 )      (568,252 )      9,194,562  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (1,390,876 )      (598,300 )      26,986       (687,754 )      286,571       (337,259 )      1,954,696       8,609,440  

Contract owners’ equity beginning of period

      15,478,083       16,076,383       4,657,160       5,344,914       11,590,235       11,927,494       16,442,051       7,832,611  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 14,087,207       15,478,083       4,684,146       4,657,160       11,876,806       11,590,235       18,396,747       16,442,051  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      1,587,910       1,641,194       258,691       281,697       699,376       744,288       1,027,161       509,471  

Units purchased

      94,011       132,384       20,880       18,355       110,054       52,437       64,577       618,150  

Units redeemed

      (205,373 )      (185,668 )      (32,302 )      (41,361 )      (107,207 )      (97,349 )      (101,236 )      (100,460 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,476,548       1,587,910       247,269       258,691       702,223       699,376       990,502       1,027,161  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NVMMG1     NVMMV1     NVMMV2     SCGF  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ (13,482 )      (2,668 )      17,495       13,094       183,824       159,266       (10,098 )      (6,404 ) 

Realized gain (loss) on investments

      1,320,467       1,304,061       (32,489 )      (67,180 )      254,168       907,384       437,525       1,371,082  

Change in unrealized gain (loss) on investments

      (3,540,330 )      (6,571,225 )      96,793       (92,666 )      536,674       (2,935,360 )      (2,842,573 )      (3,157,385 ) 

Reinvested capital gains

      4,887,392       5,086,876       113,131       113,872       1,148,664       1,496,109       3,762,263       1,895,359  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      2,654,047       (182,956 )      194,930       (32,880 )      2,123,330       (372,601 )      1,347,117       102,652  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      1,346,738       1,435,563       43,328       2,906       419,442       439,334       769,750       591,873  

Transfers between funds

      (828,669 )      11,788,545       50,442       320,163       241,705       (802,281 )      222,731       3,323,383  

Surrenders (note 6)

      (1,507,131 )      (1,867,173 )      (558 )      (83,737 )      (607,106 )      (1,116,013 )      (616,604 )      (1,133,748 ) 

Death benefits (note 4)

      (172,996 )      (235,813 )      -           (12,996 )      (54,292 )      (192,820 )      (54,749 )      (185,956 ) 

Net policy repayments (loans) (note 5)

      128,129       (82,605 )      (14,759 )      (14,886 )      63,662       24,364       (28,799 )      (92,310 ) 

Deductions for surrender charges (note 2d)

      (1,622 )      (2,546 )      -           -           (133 )      -           (552 )      (1,180 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b
and 2c)

      (1,532,250 )      (1,498,472 )      (29,120 )      (30,690 )      (497,479 )      (510,732 )      (520,785 )      (508,652 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (105,344 )      (126,042 )      (878 )      (762 )      (42,461 )      (45,864 )      (34,041 )      (40,457 ) 

MSP contracts

      (2,994 )      (3,367 )      -           -           (1,086 )      (1,473 )      (1,094 )      (1,273 ) 

SL contracts or LSFP contracts

      (10,510 )      (10,667 )      -           -           (6,676 )      (7,586 )      (2,220 )      (2,780 ) 

Adjustments to maintain reserves

      55       (21 )      (32 )      32       9       8       45       5  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (2,686,594 )      9,397,402       48,423       180,030       (484,415 )      (2,213,063 )      (266,318 )      1,948,905  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (32,547 )      9,214,446       243,353       147,150       1,638,915       (2,585,664 )      1,080,799       2,051,557  

Contract owners’ equity beginning of period

      43,932,455       34,718,009       1,063,100       915,950       12,613,881       15,199,545       17,035,327       14,983,770  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 43,899,908       43,932,455       1,306,453       1,063,100       14,252,796       12,613,881       18,116,126       17,035,327  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      2,738,949       2,156,480       57,439       48,124       682,469       798,637       624,974       552,233  

Units purchased

      173,094       831,787       10,393       16,738       43,144       34,424       51,596       154,914  

Units redeemed

      (339,286 )      (249,318 )      (7,770 )      (7,423 )      (69,841 )      (150,592 )      (61,710 )      (82,173 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,572,757       2,738,949       60,062       57,439       655,772       682,469       614,860       624,974  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     SCVF     SCF     MSBF     NVSTB1  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 230,231       269,779       103,017       127,982       371,358       234,463       551,073       253,975  

Realized gain (loss) on investments

      1,274,392       1,255,158       1,594,153       3,315,212       40,496       82,367       4,450       (109,093 ) 

Change in unrealized gain (loss) on investments

      3,760,858       (7,772,252 )      819,857       (8,582,517 )      500,976       (656,344 )      (86,074 )      (115,239 ) 

Reinvested capital gains

      3,885,287       3,832,274       6,395,420       4,454,708       -           -           -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      9,150,768       (2,415,041 )      8,912,447       (684,615 )      912,830       (339,514 )      469,449       29,643  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      1,263,352       1,282,070       1,076,533       1,112,983       395,818       377,819       794,707       363,005  

Transfers between funds

      (1,770,242 )      3,289,114       (1,557,922 )      (1,844,806 )      909,439       143,984       17,366,836       (5,571,752 ) 

Surrenders (note 6)

      (1,862,711 )      (1,515,365 )      (1,551,055 )      (1,597,252 )      (582,663 )      (393,961 )      (1,011,665 )      (4,748,995 ) 

Death benefits (note 4)

      (174,562 )      (232,030 )      (160,767 )      (329,640 )      (28,668 )      (280,450 )      (288 )      (147,154 ) 

Net policy repayments (loans) (note 5)

      34,839       (89,130 )      (34,387 )      84,911       29,718       93,039       (79,355 )      (11,988 ) 

Deductions for surrender charges
(note 2d)

      (749 )      (1,857 )      (459 )      (946 )      (769 )      (20 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (1,317,330 )      (1,277,926 )      (1,368,433 )      (1,352,568 )      (427,523 )      (389,091 )      (291,066 )      (275,410 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (93,833 )      (105,687 )      (91,082 )      (102,346 )      (24,419 )      (25,494 )      (481 )      (88 ) 

MSP contracts

      (3,160 )      (3,576 )      (3,041 )      (3,183 )      (1,433 )      (1,580 )      -           -      

SL contracts or LSFP contracts

      (6,292 )      (6,798 )      (9,723 )      (10,084 )      (4,186 )      (4,330 )      -           -      

Adjustments to maintain reserves

      37       52       485       (73 )      30       (11 )      95       (9 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (3,930,651 )      1,338,867       (3,699,851 )      (4,043,004 )      265,344       (480,095 )      16,778,783       (10,392,391 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      5,220,117       (1,076,174 )      5,212,596       (4,727,619 )      1,178,174       (819,609 )      17,248,232       (10,362,748 ) 

Contract owners’ equity beginning of period

      38,537,015       39,613,189       41,158,133       45,885,752       10,732,453       11,552,062       14,970,825       25,333,573  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 43,757,132       38,537,015       46,370,729       41,158,133       11,910,627       10,732,453       32,219,057       14,970,825  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      862,131       839,625       1,156,133       1,262,236       494,615       514,344       1,302,410       2,190,544  

Units purchased

      39,674       111,471       32,166       36,468       60,942       59,099       1,604,817       387,001  

Units redeemed

      (123,684 )      (88,965 )      (128,319 )      (142,571 )      (49,820 )      (78,828 )      (191,576 )      (1,275,135 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      778,121       862,131       1,059,980       1,156,133       505,737       494,615       2,715,651       1,302,410  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NVSTB2     NVOLG1     NVTIV3     EIF  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 20,201       26,477       992,384       817,039       12,241       13,507       280,702       177,517  

Realized gain (loss) on investments

      (16,150 )      (1,620 )      2,449,246       3,923,741       (70,093 )      18,772       499,956       518,363  

Change in unrealized gain (loss) on investments

      32,730       (32,287 )      (29,125,109 )      (17,835,435 )      46,178       (100,572 )      981,809       (1,429,961 ) 

Reinvested capital gains

      -           -           30,340,812       19,631,603       8,284       28,883       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      36,781       (7,430 )      4,657,333       6,536,948       (3,390 )      (39,410 )      1,762,467       (734,081 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      54,722       48,766       5,311,795       4,927,225       33,690       68,949       331,499       394,668  

Transfers between funds

      (356,658 )      (252,035 )      12,674,922       (2,285,047 )      (90,096 )      262,187       (528,506 )      (191,463 ) 

Surrenders (note 6)

      (29,421 )      (29,513 )      (7,558,483 )      (7,669,159 )      (42,097 )      (13,867 )      (304,347 )      (767,302 ) 

Death benefits (note 4)

      (5,622 )      (40,756 )      (804,538 )      (1,042,310 )      -           -           (34,834 )      (37,086 ) 

Net policy repayments (loans) (note 5)

      805       (3,331 )      (86,475 )      120,067       (4,836 )      (5,009 )      11,410       14,165  

Deductions for surrender charges (note 2d)

      (15 )      (137 )      (4,050 )      (8,204 )      (206 )      (105 )      (366 )      (1,733 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b
and 2c)

      (43,805 )      (44,887 )      (5,841,205 )      (5,310,497 )      (24,008 )      (21,616 )      (376,235 )      (412,577 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (3,119 )      (3,558 )      (457,960 )      (469,624 )      (1,372 )      (1,515 )      (31,613 )      (36,164 ) 

MSP contracts

      (404 )      (414 )      (16,706 )      (17,774 )      -           -           (1,008 )      (1,088 ) 

SL contracts or LSFP contracts

      (970 )      (1,082 )      (44,655 )      (46,723 )      (280 )      (327 )      (4,207 )      (4,485 ) 

Adjustments to maintain reserves

      (1 )      (5 )      261       (8 )      (13 )      (17 )      50       (18 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (384,488 )      (326,952 )      3,172,906       (11,802,054 )      (129,218 )      288,680       (938,157 )      (1,043,083 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (347,707 )      (334,382 )      7,830,239       (5,265,106 )      (132,608 )      249,270       824,310       (1,777,164 ) 

Contract owners’ equity beginning of period

      1,560,000       1,894,382       127,175,154       132,440,260       701,775       452,505       10,598,730       12,375,894  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 1,212,293       1,560,000       135,005,393       127,175,154       569,167       701,775       11,423,040       10,598,730  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      136,028       164,622       4,934,844       5,400,878       45,612       28,263       491,781       536,954  

Units purchased

      6,664       44,984       921,847       240,832       2,635       20,244       18,424       24,297  

Units redeemed

      (39,553 )      (73,578 )      (797,237 )      (706,866 )      (11,662 )      (2,895 )      (60,465 )      (69,470 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      103,139       136,028       5,059,454       4,934,844       36,585       45,612       449,740       491,781  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NVRE1     NVLCAP     NVLMP     NVSIX2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 635,028       937,207       639       779       105       115       5,865       3,277  

Realized gain (loss) on investments

      (1,328,114 )      60,266       (1,844 )      (55 )      (59 )      (18 )      (11,627 )      (3,141 ) 

Change in unrealized gain (loss) on investments

      265,592       (8,475,822 )      7,398       (3,018 )      540       (204 )      37,000       (33,556 ) 

Reinvested capital gains

      2,624,909       5,329,680       439       1,517       102       36       58,424       20,782  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      2,197,415       (2,148,669 )      6,632       (777 )      688       (71 )      89,662       (12,638 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      1,283,506       1,524,023       1,591       1,291       3,010       1,100       57,834       21,868  

Transfers between funds

      (381,278 )      (2,224,423 )      6,610       4,217       -           3,001       516,893       48,551  

Surrenders (note 6)

      (1,844,302 )      (2,689,873 )      -           -           (11,745 )      -           (11,975 )      (492 ) 

Death benefits (note 4)

      (115,383 )      (179,833 )      -           -           -           -           -           -      

Net policy repayments (loans) (note 5)

      (41,022 )      (47,705 )      2       4       10,856       -           (12,367 )      (1,999 ) 

Deductions for surrender charges (note 2d)

      (934 )      (1,634 )      -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (1,144,499 )      (1,204,297 )      (2,027 )      (2,132 )      (1,138 )      (221 )      (9,881 )      (7,005 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (82,604 )      (93,772 )      (141 )      (119 )      (37 )      (10 )      (1,321 )      (920 ) 

MSP contracts

      (3,263 )      (3,447 )      -           -           -           -           -           -      

SL contracts or LSFP contracts

      (7,989 )      (10,493 )      -           -           -           -           -           -      

Adjustments to maintain reserves

      36       (8 )      -           (2 )      (2 )      (9 )      (7 )      2  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (2,337,732 )      (4,931,462 )      6,035       3,259       944       3,861       539,176       60,005  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (140,317 )      (7,080,131 )      12,667       2,482       1,632       3,790       628,838       47,367  

Contract owners’ equity beginning of period

      32,169,726       39,249,857       28,291       25,809       5,984       2,194       290,369       243,002  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 32,029,409       32,169,726       40,958       28,291       7,616       5,984       919,207       290,369  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      1,934,105       2,232,004       2,467       2,183       530       191       23,027       18,330  

Units purchased

      115,628       114,490       936       630       334       469       40,496       6,530  

Units redeemed

      (280,015 )      (412,389 )      (201 )      (346 )      (245 )      (130 )      (3,214 )      (1,833 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,769,718       1,934,105       3,202       2,467       619       530       60,309       23,027  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     GVEX1     AMTB     AMGP     AMCG  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 86,884       62,071       43,111       52,226       2,001       5,944       (5,071 )      (5,894 ) 

Realized gain (loss) on investments

      17,570       63,366       (40,136 )      (73,598 )      (40,397 )      (180,544 )      (122,129 )      (293,173 ) 

Change in unrealized gain (loss) on investments

      256,385       (141,305 )      45,132       26,717       (31,607 )      (140,305 )      115,250       119,501  

Reinvested capital gains

      68,108       39,810       -           -           121,285       269,213       94,449       223,112  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      428,947       23,942       48,107       5,345       51,282       (45,692 )      82,499       43,546  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      241,775       156,550       142,678       161,711       2,980       2,419       3,877       (5,402 ) 

Transfers between funds

      1,581,076       1,564,185       624,234       211,550       136,718       (451,497 )      (324,259 )      (692,920 ) 

Surrenders (note 6)

      (217,603 )      (32,057 )      (234,750 )      (165,438 )      (64,250 )      -           -           -      

Death benefits (note 4)

      -           -           (102,135 )      (3,900 )      -           (9,120 )      (24,349 )      (69,023 ) 

Net policy repayments (loans) (note 5)

      (111,634 )      (20,501 )      (8,840 )      (45,376 )      -           -           -           28,794  

Deductions for surrender charges (note 2d)

      -           -           (8 )      (153 )      -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (109,520 )      (60,595 )      (225,147 )      (179,209 )      (9,167 )      (11,517 )      (20,784 )      (17,259 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (10,314 )      (7,789 )      (10,757 )      (11,539 )      -           -           -           (87 ) 

MSP contracts

      -           -           (640 )      (570 )      -           -           -           -      

SL contracts or LSFP contracts

      -           -           (2,359 )      (1,765 )      -           -           -           -      

Adjustments to maintain reserves

      (5 )      5       (5 )      4       24       (11 )      51       23  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      1,373,775       1,599,798       182,271       (34,685 )      66,305       (469,726 )      (365,464 )      (755,874 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      1,802,722       1,623,740       230,378       (29,340 )      117,587       (515,418 )      (282,965 )      (712,328 ) 

Contract owners’ equity beginning of period

      3,253,294       1,629,554       3,723,185       3,752,525       559,119       1,074,537       2,161,389       2,873,717  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 5,056,016       3,253,294       3,953,563       3,723,185       676,706       559,119       1,878,424       2,161,389  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      239,681       121,451       300,528       303,453       25,306       43,652       105,561       133,206  

Units purchased

      115,246       129,126       64,398       64,906       6,118       7,835       190       2,923  

Units redeemed

      (21,344 )      (10,896 )      (49,646 )      (67,831 )      (3,186 )      (26,181 )      (17,657 )      (30,568 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      333,583       239,681       315,280       300,528       28,238       25,306       88,094       105,561  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     AMMCGS     AMTP     AMRI     AMSRS  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ -           (22 )      2,150       4,844       21,140       28,295       13,649       11,634  

Realized gain (loss) on investments

      (11,860 )      (14,902 )      (13,982 )      65,034       66,926       48,757       71,559       276,438  

Change in unrealized gain (loss) on investments

      (1,046 )      (45,608 )      51,757       (192,795 )      282,195       (637,790 )      29,720       (483,836 ) 

Reinvested capital gains

      51,292       -           25,172       55,600       380,957       123,169       70,083       183,936  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      38,386       (60,532 )      65,097       (67,317 )      751,218       (437,569 )      185,011       (11,828 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      26,172       5,829       980       (141 )      7,825       11,577       76,818       74,810  

Transfers between funds

      (23,061 )      1,104,418       27,926       (843,732 )      85,643       8,659       (23,374 )      (274,471 ) 

Surrenders (note 6)

      (16,980 )      (944 )      (75,542 )      (916 )      (39,366 )      -           (73,250 )      (220,937 ) 

Death benefits (note 4)

      (38 )      -           (532 )      (2,453 )      (94,749 )      (158 )      (1 )      (13,793 ) 

Net policy repayments (loans) (note 5)

      (7,513 )      1,068       67,987       (16,243 )      (744 )      (605 )      (12,339 )      22,501  

Deductions for surrender charges (note 2d)

      (136 )      -           -           -           -           -           (55 )      (2,373 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (33,221 )      (4,719 )      (4,423 )      (10,168 )      (43,151 )      (44,685 )      (86,320 )      (91,094 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (3,022 )      (479 )      (280 )      (308 )      (84 )      (80 )      (7,180 )      (8,283 ) 

MSP contracts

      (64 )      (8 )      -           -           -           -           (510 )      (511 ) 

SL contracts or LSFP contracts

      (253 )      (36 )      -           -           -           -           (987 )      (1,113 ) 

Adjustments to maintain reserves

      (4 )      (2 )      (102 )      36       59       (23 )      45       (25 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (58,120 )      1,105,127       16,014       (873,925 )      (84,567 )      (25,315 )      (127,153 )      (515,289 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (19,734 )      1,044,595       81,111       (941,242 )      666,651       (462,884 )      57,858       (527,117 ) 

Contract owners’ equity beginning of period

      1,044,595       -           232,327       1,173,569       4,935,285       5,398,169       1,989,523       2,516,640  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 1,024,861       1,044,595       313,438       232,327       5,601,936       4,935,285       2,047,381       1,989,523  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      108,814       -           10,845       50,604       307,667       307,696       68,268       85,955  

Units purchased

      11,004       109,426       2,335       116       5,627       9,344       3,460       4,332  

Units redeemed

      (17,325 )      (612 )      (1,488 )      (39,875 )      (11,926 )      (9,373 )      (7,781 )      (22,019 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      102,493       108,814       11,692       10,845       301,368       307,667       63,947       68,268  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     NOTB3     NOTG3      NOTMG3     ALVGIA  
     2016     2015     2016      2015      2016     2015     2016     2015  

Investment activity:

                   

Net investment income (loss)

    $ 484       421       464        -            645       1       183,140       302,224  

Realized gain (loss) on investments

      (205 )      (81 )      13        -            30       (6 )      806,879       2,802,381  

Change in unrealized gain (loss) on investments

      1,827       (3,704 )      890        -            1,527       (280 )      94,274       (2,681,596 ) 

Reinvested capital gains

      -           840       -            -            -           2       1,358,916       -      
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      2,106       (2,524 )      1,367        -            2,202       (283 )      2,443,209       423,009  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                   

Purchase payments received from contract owners (notes 2a and 6)

      3,526       3,091       2,400        -            3,425       96       997,498       656,682  

Transfers between funds

      -           35,616       27,310        -            27,176       11,917       197,020       (1,044,477 ) 

Surrenders (note 6)

      -           -           -            -            -           -           (853,576 )      (254,914 ) 

Death benefits (note 4)

      -           -           -            -            -           (80 )      (162,535 )      (86,944 ) 

Net policy repayments (loans) (note 5)

      -           -           -            -            (2 )      -           (80,714 )      (35,928 ) 

Deductions for surrender charges (note 2d)

      -           -           -            -            -           -           (32 )      (76 ) 

Redemptions to pay cost of insurance charges and administration charges
(notes 2b and 2c)

      (2,344 )      (1,580 )      -            -            (830 )      (117 )      (412,643 )      (380,354 ) 

Asset charges (note 3):

                   

FPVUL & VEL contracts

      (180 )      (136 )      -            -            (71 )      (10 )      (10,861 )      (11,936 ) 

MSP contracts

      -           -           -            -            -           -           -           (9 ) 

SL contracts or LSFP contracts

      -           -           -            -            -           -           (1,137 )      (1,049 ) 

Adjustments to maintain reserves

      1       2       4        -            (2 )      (7 )      129       15  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      1,003       36,993       29,714        -            29,696       11,799       (326,851 )      (1,158,990 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      3,109       34,469       31,081        -            31,898       11,516       2,116,358       (735,981 ) 

Contract owners’ equity beginning of period

      34,469       -           -            -            11,626       110       22,576,076       23,312,057  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 37,578       34,469       31,081        -            43,524       11,626       24,692,434       22,576,076  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                   

Beginning units

      3,395       -           -            -            1,135       10       794,184       831,086  

Units purchased

      337       3,559       2,939        -            2,975       1,145       97,078       104,552  

Units redeemed

      (241 )      (164 )      -            -            (107 )      (20 )      (109,703 )      (141,454 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      3,491       3,395       2,939        -            4,003       1,135       781,559       794,184  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

     ALVIVA     ALVSVA     ACVCA     ACVIG  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 98,895       200,918       95,688       137,656       (1,352 )      (1,383 )      426,520       419,678  

Realized gain (loss) on investments

      52,827       186,636       (305,256 )      596,243       (53,917 )      128,696       371,827       851,186  

Change in unrealized gain (loss) on investments

      (225,135 )      (204,444 )      3,440,962       (4,989,028 )      20,702       (175,817 )      1,164,262       (4,205,843 ) 

Reinvested capital gains

      -           -           1,047,125       3,136,679       57,974       40,745       338,152       1,774,328  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (73,413 )      183,110       4,278,519       (1,118,450 )      23,407       (7,759 )      2,300,761       (1,160,651 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      62,743       51,523       1,644,940       1,461,610       995       9,742       573,968       669,433  

Transfers between funds

      944,633       (208,364 )      (918,086 )      (872,423 )      54,201       (974,543 )      (414,361 )      (2,996,080 ) 

Surrenders (note 6)

      (34,837 )      (31,396 )      (1,500,075 )      (833,498 )      -           (39,539 )      (732,368 )      (774,796 ) 

Death benefits (note 4)

      (113,299 )      (11,255 )      (246,951 )      (91,225 )      (317 )      -           (65,914 )      (25,954 ) 

Net policy repayments (loans) (note 5)

      (9,202 )      (12,116 )      26,490       22,573       (6,936 )      (4,252 )      40,035       (30,040 ) 

Deductions for surrender charges (note 2d)

      -           -           (760 )      (637 )      -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (100,542 )      (98,197 )      (326,930 )      (334,411 )      (7,081 )      (11,158 )      (727,834 )      (752,010 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (3,474 )      (3,925 )      (25,937 )      (28,268 )      (94 )      (127 )      (49,399 )      (54,786 ) 

MSP contracts

      -           -           (1,292 )      (1,487 )      -           -           (2,438 )      (2,502 ) 

SL contracts or LSFP contracts

      -           -           (909 )      (1,162 )      -           -           (4,684 )      (4,817 ) 

Adjustments to maintain reserves

      27       (12 )      99       (34 )      9       17       33       (11 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      746,049       (313,742 )      (1,349,411 )      (678,962 )      40,777       (1,019,860 )      (1,382,962 )      (3,971,563 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      672,636       (130,632 )      2,929,108       (1,797,412 )      64,184       (1,027,619 )      917,799       (5,132,214 ) 

Contract owners’ equity beginning of period

      8,359,637       8,490,269       18,216,191       20,013,603       578,782       1,606,401       18,198,664       23,330,878  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 9,032,273       8,359,637       21,145,299       18,216,191       642,966       578,782       19,116,463       18,198,664  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      981,220       1,020,175       496,940       515,175       51,411       145,072       724,329       899,634  

Units purchased

      132,544       122,212       55,946       57,994       7,076       40,099       28,703       37,344  

Units redeemed

      (45,368 )      (161,167 )      (91,939 )      (76,229 )      (3,039 )      (133,760 )      (81,586 )      (212,649 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,068,396       981,220       460,947       496,940       55,448       51,411       671,446       724,329  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     ACVIP2     ACVI     ACVMV1     ACVU1  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 169,764       241,073       13,171       3,505       256,336       212,262       762       4,169  

Realized gain (loss) on investments

      (280,531 )      (639,745 )      (24,989 )      275,464       650,476       837,810       (9,261 )      398,710  

Change in unrealized gain (loss) on investments

      442,667       123,310       (41,076 )      (294,239 )      1,583,924       (1,860,368 )      11,788       (428,278 ) 

Reinvested capital gains

      68,878       -           -           -           662,743       591,112       29,328       145,277  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      400,778       (275,362 )      (52,894 )      (15,270 )      3,153,479       (219,184 )      32,617       119,878  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      208,158       269,923       37,381       52,261       2,008,345       2,030,673       (28 )      (2,017 ) 

Transfers between funds

      276,991       (1,391,360 )      2,205,842       (344,366 )      3,380,248       304,557       (168,750 )      (940,187 ) 

Surrenders (note 6)

      (594,029 )      (1,415,172 )      -           (11,288 )      (1,969,265 )      (1,084,397 )      -           (4,262 ) 

Death benefits (note 4)

      (19,227 )      (60,792 )      (16,463 )      (1,993 )      (16,126 )      (16,851 )      (31,827 )      (10,114 ) 

Net policy repayments (loans) (note 5)

      9,756       271,635       10,713       10,193       (560,576 )      (576,625 )      -           4,262  

Deductions for surrender charges (note 2d)

      (980 )      (807 )      -           -           (1,030 )      (1,299 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (457,129 )      (338,312 )      (80,473 )      (72,974 )      (524,739 )      (397,752 )      (7,255 )      (15,293 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (19,530 )      (26,165 )      -           (93 )      (28,619 )      (26,211 )      -           -      

MSP contracts

      (871 )      (998 )      -           -           (856 )      (815 )      -           -      

SL contracts or LSFP contracts

      (10,081 )      (13,174 )      -           -           (2,274 )      (1,712 )      -           -      

Adjustments to maintain reserves

      (2 )      8       (596 )      83       40       (10 )      (5 )      (15 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (606,944 )      (2,705,214 )      2,156,404       (368,177 )      2,285,148       229,558       (207,865 )      (967,626 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (206,166 )      (2,980,576 )      2,103,510       (383,447 )      5,438,627       10,374       (175,248 )      (847,748 ) 

Contract owners’ equity beginning of period

      9,526,951       12,507,527       1,476,332       1,859,779       13,389,899       13,379,525       751,055       1,598,803  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 9,320,785       9,526,951       3,579,842       1,476,332       18,828,526       13,389,899       575,807       751,055  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      611,924       783,544       103,448       119,008       500,601       492,846       34,702       77,382  

Units purchased

      49,043       79,664       176,570       32,016       197,372       93,051       -           6,369  

Units redeemed

      (87,448 )      (251,284 )      (12,994 )      (47,576 )      (124,139 )      (85,296 )      (9,166 )      (49,049 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      573,519       611,924       267,024       103,448       573,834       500,601       25,536       34,702  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     ACVV     DVMCS     DVSCS     DCAP  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 367,831       461,129       21,071       15,494       644,678       500,049       316,096       390,920  

Realized gain (loss) on investments

      529,693       3,154,136       (120,562 )      198,637       3,267,414       6,601,408       49,053       1,918,192  

Change in unrealized gain (loss) on investments

      3,569,445       (4,474,016 )      270,397       (875,105 )      9,684,971       (15,200,764 )      (1,823,974 )      (4,071,115 ) 

Reinvested capital gains

      -           -           180,460       596,636       7,680,217       5,950,257       2,952,589       1,203,674  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      4,466,969       (858,751 )      351,366       (64,338 )      21,277,280       (2,149,050 )      1,493,764       (558,329 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      795,754       657,025       145,799       109,111       3,455,314       3,195,897       693,058       780,709  

Transfers between funds

      2,801,057       (2,482,617 )      (289,830 )      (615,867 )      3,805,842       (3,333,747 )      (746,478 )      (5,431,263 ) 

Surrenders (note 6)

      (3,212,897 )      (1,249,745 )      (82,479 )      (272,553 )      (4,128,661 )      (4,875,464 )      (2,043,962 )      (1,461,734 ) 

Death benefits (note 4)

      (19,357 )      (13,609 )      (44,989 )      (26,122 )      (303,924 )      (567,716 )      (25,195 )      (277,600 ) 

Net policy repayments (loans) (note 5)

      (175,120 )      (31,045 )      23,001       2,110       (497,052 )      (378,912 )      79,030       145,066  

Deductions for surrender charges (note 2d)

      -           -           -           -           (1,133 )      (1,667 )      (311 )      (1,375 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (341,643 )      (331,625 )      (38,482 )      (49,148 )      (1,488,559 )      (1,434,243 )      (717,630 )      (775,500 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (4,678 )      (5,431 )      (25 )      (23 )      (41,377 )      (43,910 )      (51,856 )      (58,922 ) 

MSP contracts

      -           -           -           -           (925 )      (1,101 )      (1,628 )      (1,723 ) 

SL contracts or LSFP contracts

      -           -           -           -           (6,668 )      (6,847 )      (5,254 )      (6,220 ) 

Adjustments to maintain reserves

      567       (151 )      37       2       459       (44 )      (7 )      10  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (156,317 )      (3,457,198 )      (286,968 )      (852,490 )      793,316       (7,447,754 )      (2,820,233 )      (7,088,552 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      4,310,652       (4,315,949 )      64,398       (916,828 )      22,070,596       (9,596,804 )      (1,326,469 )      (7,646,881 ) 

Contract owners’ equity beginning of period

      21,342,297       25,658,246       2,518,807       3,435,635       84,362,335       93,959,139       20,291,117       27,937,998  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 25,652,949       21,342,297       2,583,205       2,518,807       106,432,931       84,362,335       18,964,648       20,291,117  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      723,165       813,491       79,448       104,891       3,013,709       3,271,232       800,138       1,135,867  

Units purchased

      128,366       72,806       5,647       25,223       313,967       154,600       59,972       37,217  

Units redeemed

      (130,318 )      (163,132 )      (14,388 )      (50,666 )      (298,528 )      (412,123 )      (179,703 )      (372,946 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      721,213       723,165       70,707       79,448       3,029,148       3,013,709       680,407       800,138  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     DSC     DVIV     SVSSVB     SVSLVB  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ -           -           65,598       108,634       56       (656 )      490       1,283  

Realized gain (loss) on investments

      49,312       92,242       (109,793 )      247,961       (6,309 )      30,987       6,193       5,181  

Change in unrealized gain (loss) on investments

      17,610       (129,288 )      (30,414 )      (461,605 )      14,993       (57,660 )      (20,336 )      (24,268 ) 

Reinvested capital gains

      73,582       15,609       -           -           20,455       26,754       5,236       6,415  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      140,504       (21,437 )      (74,609 )      (105,010 )      29,195       (575 )      (8,417 )      (11,389 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      94,501       64,907       39,144       62,203       -           8,291       (5 )      609  

Transfers between funds

      (55,937 )      (38,876 )      (510,632 )      (668,952 )      (2,676 )      (472,358 )      (23,726 )      3,511  

Surrenders (note 6)

      (37,835 )      (73,276 )      (55,089 )      (725,192 )      -           (14,339 )      (21,651 )      -      

Death benefits (note 4)

      -           -           (5,157 )      (29,864 )      -           -           (3,319 )      -      

Net policy repayments (loans) (note 5)

      (5,578 )      (5,455 )      (36,024 )      (14,355 )      (7,780 )      (16,440 )      (2,972 )      (3,429 ) 

Deductions for surrender charges (note 2d)

      (4 )      -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (33,745 )      (38,141 )      (56,105 )      (76,134 )      (7,872 )      (9,343 )      (2,673 )      (3,063 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (2,781 )      (3,272 )      (73 )      (602 )      (68 )      (116 )      -           -      

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      (490 )      (489 )      -           -           -           -           -           -      

Adjustments to maintain reserves

      (19 )      15       15       6       8       (14 )      5       (9 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (41,888 )      (94,587 )      (623,921 )      (1,452,890 )      (18,388 )      (504,319 )      (54,341 )      (2,381 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      98,616       (116,024 )      (698,530 )      (1,557,900 )      10,807       (504,894 )      (62,758 )      (13,770 ) 

Contract owners’ equity beginning of period

      951,485       1,067,509       3,953,737       5,511,637       208,665       713,559       141,848       155,618  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 1,050,101       951,485       3,255,207       3,953,737       219,472       208,665       79,090       141,848  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      42,927       47,065       216,185       291,203       14,430       48,141       10,596       10,766  

Units purchased

      4,170       4,134       3,063       11,326       681       558       13       276  

Units redeemed

      (6,629 )      (8,272 )      (38,262 )      (86,344 )      (2,066 )      (34,269 )      (4,401 )      (446 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      40,468       42,927       180,986       216,185       13,045       14,430       6,208       10,596  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     FVCA2P     FQB     FCS     FNRS2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 12,092       12,215       864,340       985,664       139,251       234,265       34,207       69,431  

Realized gain (loss) on investments

      (7,679 )      (5,098 )      (51,284 )      67,659       836,270       9,664,141       (160,950 )      (355,513 ) 

Change in unrealized gain (loss) on investments

      (33,120 )      (55,868 )      96,277       (1,139,269 )      (1,478,476 )      (14,401,641 )      2,032,472       (1,512,594 ) 

Reinvested capital gains

      -           1,024       -           -           2,642,744       5,099,951       -           212,716  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (28,707 )      (47,727 )      909,333       (85,946 )      2,139,789       596,716       1,905,729       (1,585,960 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      21,710       37,018       791,646       728,293       227,468       124,099       568,686       575,031  

Transfers between funds

      33,340       (5,823 )      (81,969 )      (1,251,466 )      (3,993,111 )      (22,411,101 )      610,002       (178,858 ) 

Surrenders (note 6)

      (17,080 )      (52,539 )      (1,276,326 )      (963,828 )      (1,542,907 )      (3,855,904 )      (815,429 )      (426,228 ) 

Death benefits (note 4)

      -           (8,410 )      (344,465 )      (311,833 )      (327,830 )      (377,056 )      (33,360 )      (24,380 ) 

Net policy repayments (loans) (note 5)

      (3,602 )      6,006       41,379       51,060       (27,576 )      190,929       145,619       44,823  

Deductions for surrender charges (note 2d)

      (35 )      -           (231 )      (237 )      -           -           (898 )      (646 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (21,657 )      (22,707 )      (781,792 )      (796,663 )      (444,027 )      (545,016 )      (313,806 )      (284,798 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (1,753 )      (2,050 )      (51,872 )      (56,887 )      (1,793 )      (2,013 )      (17,987 )      (19,580 ) 

MSP contracts

      -           -           (2,869 )      (3,510 )      -           -           (997 )      (1,836 ) 

SL contracts or LSFP contracts

      (409 )      (443 )      (5,233 )      (5,620 )      -           -           (5,021 )      (5,339 ) 

Adjustments to maintain reserves

      (2 )      (3 )      40       36       14,171       974       16       (13 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      10,512       (48,951 )      (1,711,692 )      (2,610,655 )      (6,095,605 )      (26,875,088 )      136,825       (321,824 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (18,195 )      (96,678 )      (802,359 )      (2,696,601 )      (3,955,816 )      (26,278,372 )      2,042,554       (1,907,784 ) 

Contract owners’ equity beginning of period

      695,612       792,290       25,290,762       27,987,363       34,056,039       60,334,411       6,117,397       8,025,181  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 677,417       695,612       24,488,403       25,290,762       30,100,223       34,056,039       8,159,951       6,117,397  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      40,403       43,124       1,164,659       1,283,800       1,229,565       2,176,373       390,067       405,538  

Units purchased

      3,551       2,279       51,273       51,886       49,359       6,280       52,776       53,678  

Units redeemed

      (2,884 )      (5,000 )      (128,395 )      (171,027 )      (271,487 )      (953,088 )      (53,121 )      (69,149 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      41,070       40,403       1,087,537       1,164,659       1,007,437       1,229,565       389,722       390,067  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     FEIS     FF10S     FF20S     FF30S  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 1,223,394       1,804,717       31,950       38,038       418,821       455,452       194,393       201,673  

Realized gain (loss) on investments

      2,334,674       2,980,977       28,707       73,170       584,496       328,768       324,829       310,788  

Change in unrealized gain (loss) on investments

      2,162,641       (13,017,860 )      (1,999 )      (116,011 )      (91,861 )      (1,032,078 )      (96,024 )      (700,905 ) 

Reinvested capital gains

      3,649,305       5,673,847       48,953       6,570       877,797       119,356       495,769       66,107  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      9,370,014       (2,558,319 )      107,611       1,767       1,789,253       (128,502 )      918,967       (122,337 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      2,607,407       2,768,204       50,878       42,257       1,916,767       2,424,707       2,794,468       1,267,498  

Transfers between funds

      (930,611 )      (1,821,129 )      53,126       116,816       4,097,899       4,069,008       209,861       2,387,781  

Surrenders (note 6)

      (4,057,397 )      (2,870,919 )      (27,625 )      (48,159 )      (582,195 )      (734,627 )      (330,926 )      (450,687 ) 

Death benefits (note 4)

      (288,027 )      (452,890 )      (15,769 )      (310,889 )      (1,053,528 )      (44,364 )      (30,288 )      (20,815 ) 

Net policy repayments (loans) (note 5)

      (330,076 )      539,684       (13,573 )      (19,212 )      168,296       45,903       (32,995 )      (15,328 ) 

Deductions for surrender charges (note 2d)

      (2,248 )      (1,564 )      (4 )      (503 )      (246 )      (857 )      (1,180 )      (2,617 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (2,213,344 )      (2,256,171 )      (59,667 )      (61,389 )      (665,223 )      (650,441 )      (332,867 )      (296,668 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (145,129 )      (156,849 )      (4,598 )      (4,806 )      (14,172 )      (22,620 )      (19,198 )      (19,360 ) 

MSP contracts

      (5,972 )      (6,841 )      (3,924 )      (3,956 )      (3,876 )      (4,102 )      (1,576 )      (1,633 ) 

SL contracts or LSFP contracts

      (17,134 )      (18,890 )      (450 )      (511 )      (5,650 )      (4,798 )      (1,168 )      (1,169 ) 

Adjustments to maintain reserves

      737       (194 )      (17 )      8       181       9       57       17  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (5,381,794 )      (4,277,559 )      (21,623 )      (290,344 )      3,858,253       5,077,818       2,254,188       2,847,019  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      3,988,220       (6,835,878 )      85,988       (288,577 )      5,647,506       4,949,316       3,173,155       2,724,682  

Contract owners’ equity beginning of period

      56,301,658       63,137,536       2,221,284       2,509,861       27,384,785       22,435,469       12,707,207       9,982,525  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 60,289,878       56,301,658       2,307,272       2,221,284       33,032,291       27,384,785       15,880,362       12,707,207  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      2,345,447       2,527,460       125,604       141,331       1,516,176       1,234,002       670,689       523,809  

Units purchased

      184,640       163,364       11,292       8,899       420,340       363,732       245,843       193,483  

Units redeemed

      (403,765 )      (345,377 )      (13,069 )      (24,626 )      (205,426 )      (81,558 )      (127,681 )      (46,603 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,126,322       2,345,447       123,827       125,604       1,731,090       1,516,176       788,851       670,689  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     FFINS     FGOS     FGS     FHIS  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 11,606       18,948       (86 )      (2,514 )      (70,579 )      72,335       672,461       878,992  

Realized gain (loss) on investments

      2,529       9,315       (10,388 )      1,000,287       2,610,095       4,135,585       (211,169 )      (64,469 ) 

Change in unrealized gain (loss) on investments

      9,956       (37,989 )      1,875       (905,602 )      (10,188,118 )      (909,306 )      1,266,607       (1,507,420 ) 

Reinvested capital gains

      10,223       1,706       5,913       51,369       8,191,795       2,753,757       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      34,314       (8,020 )      (2,686 )      143,540       543,193       6,052,371       1,727,899       (692,897 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      79       8       1,384       (4,220 )      4,097,522       3,766,330       366,082       228,307  

Transfers between funds

      (269,671 )      262,995       (76,935 )      (2,749,963 )      (806,936 )      (290,920 )      (267,096 )      1,993,788  

Surrenders (note 6)

      (15,906 )      (47,100 )      -           -           (3,142,937 )      (5,051,189 )      (646,973 )      (628,799 ) 

Death benefits (note 4)

      (5,331 )      (7,226 )      (1,191 )      (130,391 )      (423,104 )      (570,580 )      (13,860 )      (339,331 ) 

Net policy repayments (loans) (note 5)

      -           -           -           59,294       (186,588 )      163,841       30,074       64,190  

Deductions for surrender charges (note 2d)

      -           -           -           -           (1,636 )      (2,917 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (8,178 )      (9,843 )      (6,865 )      (24,699 )      (3,377,607 )      (3,325,228 )      (428,781 )      (389,909 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      -           -           -           (5 )      (195,612 )      (219,282 )      (22,174 )      (20,861 ) 

MSP contracts

      -           -           -           -           (5,840 )      (7,092 )      (1,647 )      (1,553 ) 

SL contracts or LSFP contracts

      -           -           -           -           (16,383 )      (17,984 )      (2,322 )      (2,051 ) 

Adjustments to maintain reserves

      (1 )      2       309       6,514       1,055       7,991       43       28  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (299,008 )      198,836       (83,298 )      (2,843,470 )      (4,058,066 )      (5,547,030 )      (986,654 )      903,809  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (264,694 )      190,816       (85,984 )      (2,699,930 )      (3,514,873 )      505,341       741,245       210,912  

Contract owners’ equity beginning of period

      1,230,126       1,039,310       437,298       3,137,228       89,520,714       89,015,373       12,742,577       12,531,665  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 965,432       1,230,126       351,314       437,298       86,005,841       89,520,714       13,483,822       12,742,577  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      104,625       87,841       20,793       176,408       3,760,319       4,030,458       656,054       617,230  

Units purchased

      -           22,186       75       230       334,362       307,264       44,241       459,283  

Units redeemed

      (25,746 )      (5,402 )      (4,294 )      (155,845 )      (447,707 )      (577,403 )      (93,273 )      (420,459 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      78,879       104,625       16,574       20,793       3,646,974       3,760,319       607,022       656,054  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     FIP     FIGBS     FMCS     FMMP  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 606,990       833,807       4,004,748       4,074,283       127,998       138,089       1,420       -      

Realized gain (loss) on investments

      1,887,634       2,422,243       (204,023 )      (523,374 )      (77,131 )      1,457,252       -           -      

Change in unrealized gain (loss) on investments

      3,029,372       (2,744,568 )      3,497,427       (5,318,505 )      1,999,382       (8,149,939 )      -           -      

Reinvested capital gains

      50,473       23,251       81,868       127,077       2,510,379       6,009,549       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      5,574,469       534,733       7,380,020       (1,640,519 )      4,560,628       (545,049 )      1,420       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      5,229       1,898       2,532,039       1,664,295       1,771,728       1,699,316       -           -      

Transfers between funds

      (238,990 )      13,964,305       10,783,694       22,909,778       (1,592,280 )      (4,857,132 )      9,556,817       -      

Surrenders (note 6)

      (844,463 )      (1,808,100 )      (2,315,119 )      (2,408,131 )      (4,778,727 )      (3,440,765 )      (191,000 )      -      

Death benefits (note 4)

      (241,755 )      (284,334 )      (401,534 )      (65,032 )      (129,612 )      (107,914 )      -           -      

Net policy repayments (loans) (note 5)

      -           -           (132,672 )      6,359       66,347       (132,977 )      -           -      

Deductions for surrender charges (note 2d)

      -           -           (456 )      (1,185 )      (1,346 )      (2,474 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (397,599 )      (365,699 )      (2,126,907 )      (1,906,105 )      (1,226,023 )      (1,226,525 )      (14,435 )      -      

Asset charges (note 3):

                 

FPVUL & VEL contracts

      -           -           (23,897 )      (25,756 )      (76,732 )      (92,075 )      -           -      

MSP contracts

      -           -           (3,726 )      (3,844 )      (4,253 )      (4,496 )      -           -      

SL contracts or LSFP contracts

      -           -           (8,076 )      (7,701 )      (11,293 )      (12,662 )      -           -      

Adjustments to maintain reserves

      331       1       854       (18 )      181       (57 )      98       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,717,247 )      11,508,071       8,304,200       20,162,660       (5,982,010 )      (8,177,761 )      9,351,480       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      3,857,222       12,042,804       15,684,220       18,522,141       (1,421,382 )      (8,722,810 )      9,352,900       -      

Contract owners’ equity beginning of period

      46,835,841       34,793,037       170,471,100       151,948,959       41,543,203       50,266,013       -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 50,693,063       46,835,841       186,155,320       170,471,100       40,121,821       41,543,203       9,352,900       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      2,841,994       2,135,022       10,467,562       9,237,349       977,992       1,164,190       -           -      

Units purchased

      -           856,530       918,336       1,586,606       63,305       42,622       955,677       -      

Units redeemed

      (86,378 )      (149,558 )      (437,687 )      (356,393 )      (197,740 )      (228,820 )      (20,542 )      -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,755,616       2,841,994       10,948,211       10,467,562       843,557       977,992       935,135       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     FOS     FVSS     FF05S     FF15S  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 210,115       233,301       34,110       37,283       3,773       2,746       97,252       168,602  

Realized gain (loss) on investments

      201,818       847,327       173,115       1,041,060       (2,136 )      193       (311,500 )      181,306  

Change in unrealized gain (loss) on investments

      (1,371,624 )      (1,453,059 )      77,116       (1,184,629 )      7,036       (5,727 )      265,254       (454,356 ) 

Reinvested capital gains

      27,212       18,961       -           4,120       1,970       361       291,446       54,176  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (932,479 )      (353,470 )      284,341       (102,166 )      10,643       (2,427 )      342,452       (50,272 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      660,243       461,694       129,077       123,236       19       2       213,200       330,847  

Transfers between funds

      (850,704 )      10,854,064       (187,512 )      (1,650,801 )      157,867       89,017       (2,830,504 )      1,828,265  

Surrenders (note 6)

      (889,871 )      (1,767,228 )      (105,854 )      (94,861 )      (4,990 )      (5,300 )      (235,445 )      (252,054 ) 

Death benefits (note 4)

      (58,295 )      (75,844 )      (1,245 )      (236,993 )      (871 )      (688 )      (8,302 )      (8,494 ) 

Net policy repayments (loans) (note 5)

      19,020       37,753       4,176       4,858       -           -           (4,735 )      (3,222 ) 

Deductions for surrender charges (note 2d)

      (694 )      (610 )      (14 )      (127 )      -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (694,255 )      (605,284 )      (130,752 )      (150,992 )      (2,017 )      (1,018 )      (141,053 )      (193,308 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (45,565 )      (41,140 )      (11,073 )      (13,482 )      -           -           (765 )      (909 ) 

MSP contracts

      (1,219 )      (1,113 )      (141 )      (153 )      -           -           -           -      

SL contracts or LSFP contracts

      (6,245 )      (5,502 )      (334 )      (438 )      -           -           -           -      

Adjustments to maintain reserves

      21       (13 )      21       (25 )      (10 )      (2 )      49       15  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,867,564 )      8,856,777       (303,651 )      (2,019,778 )      149,998       82,011       (3,007,555 )      1,701,140  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (2,800,043 )      8,503,307       (19,310 )      (2,121,944 )      160,641       79,584       (2,665,103 )      1,650,868  

Contract owners’ equity beginning of period

      18,130,581       9,627,274       3,457,479       5,579,423       171,219       91,635       10,782,045       9,131,177  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 15,330,538       18,130,581       3,438,169       3,457,479       331,860       171,219       8,116,942       10,782,045  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      882,090       527,024       133,932       210,258       13,584       7,230       785,176       660,580  

Units purchased

      44,018       814,756       8,559       7,155       12,175       6,904       43,597       179,516  

Units redeemed

      (147,604 )      (459,690 )      (20,765 )      (83,481 )      (605 )      (550 )      (269,106 )      (54,920 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      778,504       882,090       121,726       133,932       25,154       13,584       559,667       785,176  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     FF25S     FF40S     GVMCE     GVCSE  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 216,081       217,305       85,277       94,944       239,574       57,226       681       100  

Realized gain (loss) on investments

      27,906       467,557       26,275       439,019       (3,665,563 )      6,311,028       (4,145 )      (4,040 ) 

Change in unrealized gain (loss) on investments

      324,699       (833,914 )      199,275       (620,117 )      7,439,462       (14,080,635 )      11,915       (5,177 ) 

Reinvested capital gains

      408,452       73,306       262,373       43,025       12,988       3,193,109       1,951       8,843  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      977,138       (75,746 )      573,200       (43,129 )      4,026,461       (4,519,272 )      10,402       (274 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      205,584       311,257       455,474       181,138       45,973       61,258       -           -      

Transfers between funds

      3,589,241       3,768,518       1,164,414       1,381,857       (17,169,809 )      (16,082,002 )      503,737       23,527  

Surrenders (note 6)

      (507,574 )      (760,696 )      (240,260 )      (316,240 )      (1,523,422 )      (3,531,170 )      -           -      

Death benefits (note 4)

      (26,849 )      (36,000 )      (34,859 )      (8,416 )      (151,948 )      (92,645 )      -           -      

Net policy repayments (loans) (note 5)

      123,159       (155,447 )      (12,821 )      5,553       654,606       36,486       -           -      

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (276,676 )      (228,885 )      (157,394 )      (130,081 )      (366,718 )      (501,834 )      (5,478 )      (3,605 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (882 )      (1,033 )      (859 )      (858 )      -           -           (25 )      (22 ) 

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      94       (8 )      59       1       286       (89 )      (6 )      5  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      3,106,097       2,897,706       1,173,754       1,112,954       (18,511,032 )      (20,109,996 )      498,228       19,905  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      4,083,235       2,821,960       1,746,954       1,069,825       (14,484,571 )      (24,629,268 )      508,630       19,631  

Contract owners’ equity beginning of period

      13,753,120       10,931,160       6,716,605       5,646,780       38,868,918       63,498,186       59,353       39,722  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 17,836,355       13,753,120       8,463,559       6,716,605       24,384,347       38,868,918       567,983       59,353  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      974,642       769,831       429,474       358,910       1,165,986       1,722,307       4,569       2,986  

Units purchased

      304,917       285,431       142,190       99,377       27,786       2,346       31,237       2,503  

Units redeemed

      (86,100 )      (80,620 )      (63,811 )      (28,813 )      (547,578 )      (558,667 )      (467 )      (920 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,193,459       974,642       507,853       429,474       646,194       1,165,986       35,339       4,569  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     GVGOPS     GVGMNS     SBVSG     BNCAI  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ (3,505 )      (3,582 )      53       23       (24,218 )      (24,439 )      13,106       (20,487 ) 

Realized gain (loss) on investments

      (181,531 )      (165,353 )      (700 )      924       (428,485 )      (75,569 )      (61,629 )      359,343  

Change in unrealized gain (loss) on investments

      203,432       (60,394 )      1,593       (3,049 )      679,565       (650,497 )      20,485       (1,586,865 ) 

Reinvested capital gains

      8,984       119,074       -           577       458,852       250,052       397,350       783,787  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      27,380       (110,255 )      946       (1,525 )      685,714       (500,453 )      369,312       (464,222 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      124,341       160,356       1,354       1,285       795,320       878,039       119,274       159,303  

Transfers between funds

      (259,908 )      383,689       (8,295 )      (360 )      474,679       2,704,324       (2,219,684 )      (2,182,156 ) 

Surrenders (note 6)

      (30,057 )      (246,576 )      -           (8,390 )      (654,068 )      (670,397 )      (956,380 )      (126,277 ) 

Death benefits (note 4)

      -           (220 )      -           -           (75,471 )      (11,029 )      (6,507 )      (4,041 ) 

Net policy repayments (loans) (note 5)

      (1,107 )      246       (40 )      (64 )      (13,284 )      (30,247 )      680,569       19,322  

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (28,671 )      (29,060 )      (1,339 )      (1,603 )      (198,906 )      (185,716 )      (76,956 )      (94,525 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (96 )      (80 )      (114 )      (141 )      (1,700 )      (1,038 )      (45 )      (49 ) 

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      (8 )      11       7       2       71       (3 )      74       (13 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (195,506 )      268,366       (8,427 )      (9,271 )      326,641       2,683,933       (2,459,655 )      (2,228,436 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (168,126 )      158,111       (7,481 )      (10,796 )      1,012,355       2,183,480       (2,090,343 )      (2,692,658 ) 

Contract owners’ equity beginning of period

      1,422,670       1,264,559       26,382       37,178       11,222,935       9,039,455       7,628,457       10,321,115  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 1,254,544       1,422,670       18,901       26,382       12,235,290       11,222,935       5,538,114       7,628,457  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      98,136       82,502       2,301       3,054       614,965       472,936       219,509       281,384  

Units purchased

      14,382       38,878       115       107       151,038       198,155       27,844       5,338  

Units redeemed

      (27,017 )      (23,244 )      (836 )      (860 )      (131,285 )      (56,126 )      (96,103 )      (67,213 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      85,501       98,136       1,580       2,301       634,718       614,965       151,250       219,509  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     OVGR     OVGS     OVIG     OVGI  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 19,512       (19,003 )      635,094       891,815       98,417       48,964       328,782       282,515  

Realized gain (loss) on investments

      264,896       1,631,191       1,947,453       6,866,639       (240,036 )      (40,431 )      302,545       971,051  

Change in unrealized gain (loss) on investments

      (1,786,574 )      (3,585,060 )      (7,341,044 )      (9,612,017 )      (208,566 )      (311,357 )      (857,756 )      (4,973,461 ) 

Reinvested capital gains

      1,134,448       2,549,306       4,564,074       4,917,842       253,641       369,692       3,618,968       4,806,256  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (367,718 )      576,434       (194,423 )      3,064,279       (96,544 )      66,868       3,392,539       1,086,361  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      21,285       42,434       3,098,848       2,917,112       1,178,601       286,378       1,128,983       1,157,135  

Transfers between funds

      (967,738 )      (3,094,453 )      (1,287,259 )      (3,216,690 )      6,763,318       3,108,864       65,721       (493,672 ) 

Surrenders (note 6)

      (341,884 )      (907,707 )      (4,726,982 )      (2,122,796 )      (270,115 )      (155,866 )      (1,070,457 )      (1,177,100 ) 

Death benefits (note 4)

      (29,428 )      (27,737 )      (230,825 )      (188,356 )      (56,071 )      (555 )      (130,782 )      (248,436 ) 

Net policy repayments (loans) (note 5)

      213       (1,060 )      (381,272 )      (389,434 )      (11,040 )      10,851       (110,909 )      (26,854 ) 

Deductions for surrender charges (note 2d)

      -           -           (1,587 )      (2,711 )      -           -           (453 )      (2,573 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (261,498 )      (286,464 )      (1,716,029 )      (1,746,600 )      (291,382 )      (154,248 )      (1,311,913 )      (1,252,448 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (44 )      (180 )      (90,098 )      (106,800 )      (3,689 )      (856 )      (93,438 )      (99,934 ) 

MSP contracts

      -           -           (5,087 )      (5,943 )      -           -           (4,186 )      (4,225 ) 

SL contracts or LSFP contracts

      -           -           (11,776 )      (13,690 )      -           -           (7,328 )      (7,382 ) 

Adjustments to maintain reserves

      (533 )      938       296       10       45       5       16       1  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,579,627 )      (4,274,229 )      (5,351,771 )      (4,875,898 )      7,309,667       3,094,573       (1,534,746 )      (2,155,488 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (1,947,345 )      (3,697,795 )      (5,546,194 )      (1,811,619 )      7,213,123       3,161,441       1,857,793       (1,069,127 ) 

Contract owners’ equity beginning of period

      12,220,538       15,918,333       74,591,145       76,402,764       6,271,624       3,110,183       30,977,868       32,046,995  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 10,273,193       12,220,538       69,044,951       74,591,145       13,484,747       6,271,624       32,835,661       30,977,868  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      701,016       914,523       3,251,249       3,457,910       567,662       290,603       1,317,469       1,408,467  

Units purchased

      8,877       6,487       208,358       186,110       746,087       305,164       81,242       73,419  

Units redeemed

      (105,872 )      (219,994 )      (446,364 )      (392,771 )      (65,201 )      (28,105 )      (143,698 )      (164,417 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      604,021       701,016       3,013,243       3,251,249       1,248,548       567,662       1,255,013       1,317,469  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     OVSC     OVAG     OVSB     PMVAAA  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 34,134       58,791       (9,849 )      (11,928 )      857,814       1,300,440       522,092       759,773  

Realized gain (loss) on investments

      (534 )      434,129       617,682       1,423,445       (225,123 )      (421,949 )      (1,123,681 )      (1,140,261 ) 

Change in unrealized gain (loss) on investments

      820,876       (1,865,155 )      (1,948,657 )      (2,011,294 )      454,100       (1,400,706 )      3,049,279       (1,813,156 ) 

Reinvested capital gains

      253,053       970,386       1,878,904       2,382,946       -           -           -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,107,529       (401,849 )      538,080       1,783,169       1,086,791       (522,215 )      2,447,690       (2,193,644 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      640,941       754,062       1,042,473       1,118,544       272,933       726,030       383,190       235,225  

Transfers between funds

      (527,673 )      77,440       (540,255 )      (970,448 )      (370,342 )      821,764       (865,254 )      (3,364,278 ) 

Surrenders (note 6)

      (463,901 )      (726,597 )      (1,104,213 )      (1,831,233 )      (1,805,176 )      (2,835,868 )      (373,289 )      (759,216 ) 

Death benefits (note 4)

      (16,516 )      (8,295 )      (105,881 )      (151,064 )      (241 )      (4,589 )      (111,065 )      (161,580 ) 

Net policy repayments (loans) (note 5)

      14,026       (11,731 )      99,715       18,572       (291,488 )      (344,898 )      (3,473 )      (10,312 ) 

Deductions for surrender charges (note 2d)

      (570 )      (305 )      -           (77 )      (316 )      (718 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (244,857 )      (253,777 )      (1,146,610 )      (1,168,729 )      (192,235 )      (193,121 )      (239,560 )      (295,949 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (19,520 )      (21,529 )      (79,119 )      (89,114 )      (6,750 )      (7,027 )      (3,308 )      (3,250 ) 

MSP contracts

      (459 )      (539 )      (1,420 )      (1,561 )      (108 )      (80 )      -           -      

SL contracts or LSFP contracts

      (3,378 )      (3,402 )      (3,569 )      (3,899 )      (37,788 )      (47,605 )      -           -      

Adjustments to maintain reserves

      16       (4 )      1,959       5,102       6       (1 )      156       (41 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (621,891 )      (194,677 )      (1,836,920 )      (3,073,907 )      (2,431,505 )      (1,886,113 )      (1,212,603 )      (4,359,401 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      485,638       (596,526 )      (1,298,840 )      (1,290,738 )      (1,344,714 )      (2,408,328 )      1,235,087       (6,553,045 ) 

Contract owners’ equity beginning of period

      6,604,590       7,201,116       25,440,131       26,730,869       18,872,561       21,280,889       20,816,920       27,369,965  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 7,090,228       6,604,590       24,141,291       25,440,131       17,527,847       18,872,561       22,052,007       20,816,920  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      177,013       181,616       1,117,680       1,275,602       1,411,021       1,555,119       1,268,463       1,513,875  

Units purchased

      7,936       16,587       59,549       68,241       32,726       68,292       115,227       19,946  

Units redeemed

      (23,979 )      (21,190 )      (135,861 )      (226,163 )      (213,626 )      (212,390 )      (193,545 )      (265,358 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      160,970       177,013       1,041,368       1,117,680       1,230,121       1,411,021       1,190,145       1,268,463  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     PMVRSA     PMVFBA     PMVLGA     PMVLDA  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 1,665       1,350       16,567       20,463       43,598       49,413       567,263       1,663,091  

Realized gain (loss) on investments

      (7,714 )      (9,415 )      (55,055 )      (44,538 )      320,082       87,015       (766,389 )      (420,973 ) 

Change in unrealized gain (loss) on investments

      27,656       (7,630 )      119,503       (82,502 )      (187,530 )      (168,979 )      705,346       (1,114,082 ) 

Reinvested capital gains

      -           -           -           5,347       -           -           -           -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      21,607       (15,695 )      81,015       (101,230 )      176,150       (32,551 )      506,220       128,036  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      61,502       2,356       86,092       42,012       245,836       222,907       1,420,342       1,670,553  

Transfers between funds

      42,216       33,493       (409,656 )      707,917       (1,753,918 )      154,203       (10,596,345 )      (11,429,236 ) 

Surrenders (note 6)

      (1,625 )      (2,383 )      (144,733 )      (61,829 )      -           (82,062 )      (1,603,788 )      (3,467,899 ) 

Death benefits (note 4)

      -           -           (156,592 )      (46 )      -           -           (268,934 )      (205,183 ) 

Net policy repayments (loans) (note 5)

      (587 )      (3,199 )      (5,296 )      19,063       (37,982 )      (30,239 )      641,087       55,607  

Deductions for surrender charges (note 2d)

      -           -           (199 )      -           -           -           (323 )      (113 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (3,312 )      (1,833 )      (47,767 )      (44,431 )      (43,188 )      (42,742 )      (828,371 )      (949,731 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (432 )      (224 )      (2,177 )      (2,450 )      (29 )      (46 )      (17,701 )      (21,058 ) 

MSP contracts

      -           -           (31 )      (31 )      -           -           (1,204 )      (1,177 ) 

SL contracts or LSFP contracts

      -           -           (468 )      (366 )      -           -           (2,596 )      (2,757 ) 

Adjustments to maintain reserves

      2       (1 )      125       (213 )      286       (317 )      1,633       (2,064 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      97,764       28,209       (680,702 )      659,626       (1,588,995 )      221,704       (11,256,200 )      (14,353,058 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      119,371       12,514       (599,687 )      558,396       (1,412,845 )      189,153       (10,749,980 )      (14,225,022 ) 

Contract owners’ equity beginning of period

      49,651       37,137       1,934,119       1,375,723       2,725,551       2,536,398       50,361,877       64,586,899  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 169,022       49,651       1,334,432       1,934,119       1,312,706       2,725,551       39,611,897       50,361,877  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      8,994       4,998       160,948       106,364       183,456       167,933       3,359,878       4,315,631  

Units purchased

      18,747       5,140       26,430       63,998       58,738       26,689       240,679       166,239  

Units redeemed

      (1,153 )      (1,144 )      (78,719 )      (9,414 )      (154,417 )      (11,166 )      (988,442 )      (1,121,992 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      26,588       8,994       108,659       160,948       87,777       183,456       2,612,115       3,359,878  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     PMVRRA     PMVTRA     PIVEMI     PIHYB1  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 1,340,144       2,719,251       1,651,841       4,669,738       3,064       28,173       203,136       230,829  

Realized gain (loss) on investments

      (4,855,695 )      (3,429,599 )      (1,243,164 )      (2,325,675 )      (171,037 )      (143,169 )      (149,268 )      (333,262 ) 

Change in unrealized gain (loss) on investments

      7,131,930       (1,159,640 )      1,722,319       (1,948,588 )      195,028       (86,496 )      521,670       (250,895 ) 

Reinvested capital gains

      -           -           -           956,880       -           96,814       -           176,411  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      3,616,379       (1,869,988 )      2,130,996       1,352,355       27,055       (104,678 )      575,538       (176,917 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      2,357,518       3,700,983       5,917,355       4,703,784       3,873       15,359       318,900       41,701  

Transfers between funds

      (15,785,409 )      (23,406,868 )      (4,803,039 )      (79,070,397 )      (296,016 )      (5,755 )      105,069       (1,227,629 ) 

Surrenders (note 6)

      (2,009,833 )      (4,792,443 )      (11,312,075 )      (6,694,905 )      (69 )      (35,171 )      (100,993 )      (77,607 ) 

Death benefits (note 4)

      (765,747 )      (123,889 )      (440,284 )      (729,212 )      -           15       (38,364 )      (8,318 ) 

Net policy repayments (loans) (note 5)

      (22,077 )      277,260       3,561,909       (615,632 )      (5,616 )      (22,517 )      15,912       8,118  

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (847,680 )      (942,273 )      (1,664,351 )      (1,861,424 )      (9,310 )      (10,060 )      (84,693 )      (87,577 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (9,056 )      (8,046 )      (39,666 )      (37,354 )      (874 )      (939 )      (937 )      (854 ) 

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      (3,816 )      (314 )      8,618       (6,293 )      3       2       679       (297 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (17,086,100 )      (25,295,590 )      (8,771,533 )      (84,311,433 )      (308,009 )      (59,066 )      215,573       (1,352,463 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (13,469,721 )      (27,165,578 )      (6,640,537 )      (82,959,078 )      (280,954 )      (163,744 )      791,111       (1,529,380 ) 

Contract owners’ equity beginning of period

      68,846,366       96,011,944       85,963,454       168,922,532       660,266       824,010       3,941,198       5,470,578  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 55,376,645       68,846,366       79,322,917       85,963,454       379,312       660,266       4,732,309       3,941,198  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      3,850,039       5,207,734       4,440,358       8,771,801       120,357       127,281       154,355       204,952  

Units purchased

      280,354       252,011       734,217       446,018       761       17,101       19,141       7,192  

Units redeemed

      (1,182,443 )      (1,609,706 )      (1,182,590 )      (4,777,461 )      (55,814 )      (24,025 )      (11,030 )      (57,789 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,947,950       3,850,039       3,991,985       4,440,358       65,304       120,357       162,466       154,355  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     PVGIB     PVGOB      PVTIGB     PVTSCB  
     2016     2015     2016     2015      2016     2015     2016     2015  

Investment activity:

                  

Net investment income (loss)

    $ 15,566       18,519       -           -            29,513       13,129       8,647       4,792  

Realized gain (loss) on investments

      35,956       64,016       32       -            42,576       58,197       (62,163 )      (70,712 ) 

Change in unrealized gain (loss) on investments

      44,131       (163,319 )      8,380       -            (99,753 )      (73,704 )      200,135       (62,090 ) 

Reinvested capital gains

      27,489       -           -           -            -           -           91,160       88,346  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      123,142       (80,784 )      8,412       -            (27,664 )      (2,378 )      237,779       (39,664 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (notes 2a and 6)

      37,272       50,543       5,431       -            26,918       44,115       77,369       2,393  

Transfers between funds

      (82,316 )      19,698       1,149,494       -            (15,602 )      25,862       (117,147 )      160,158  

Surrenders (note 6)

      (22,332 )      (253,781 )      -           -            (90,158 )      (161,183 )      (2,148 )      (1,697 ) 

Death benefits (note 4)

      -           -           -           -            (3,737 )      (16,671 )      -           (11 ) 

Net policy repayments (loans) (note 5)

      7,717       173,980       6,736       -            7,113       20,191       (466 )      (403 ) 

Deductions for surrender charges (note 2d)

      (588 )      -           -           -            (15 )      (42 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (45,215 )      (48,644 )      (5,582 )      -            (35,105 )      (46,287 )      (28,814 )      (25,006 ) 

Asset charges (note 3):

                  

FPVUL & VEL contracts

      (3,190 )      (3,853 )      (410 )      -            (2,293 )      (3,074 )      (155 )      (126 ) 

MSP contracts

      (45 )      (47 )      (60 )      -            (17 )      (15 )      -           -      

SL contracts or LSFP contracts

      (512 )      (552 )      (48 )      -            (356 )      (429 )      -           -      

Adjustments to maintain reserves

      (7 )      (15 )      1       -            (11 )      (3 )      5       (6 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (109,216 )      (62,671 )      1,155,562       -            (113,263 )      (137,536 )      (71,356 )      135,302  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      13,926       (143,455 )      1,163,974       -            (140,927 )      (139,914 )      166,423       95,638  

Contract owners’ equity beginning of period

      939,191       1,082,646       -           -            971,980       1,111,894       832,325       736,687  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 953,117       939,191       1,163,974       -            831,053       971,980       998,748       832,325  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      41,318       44,044       -           -            45,227       51,810       61,145       51,730  

Units purchased

      1,769       3,811       115,922       -            2,614       2,826       5,797       11,210  

Units redeemed

      (6,631 )      (6,537 )      (1,181 )      -            (8,199 )      (9,409 )      (9,243 )      (1,795 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      36,456       41,318       114,741       -            39,642       45,227       57,699       61,145  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

     PVTVB     ACGI     ACEG     AVBVI  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 14,274       17,063       45,633       136,142       -           -           (3 )      10,552  

Realized gain (loss) on investments

      (53,253 )      58,525       (235,204 )      150,165       83,193       50,542       (167 )      66,450  

Change in unrealized gain (loss) on investments

      5,900       (393,229 )      694,361       (1,239,878 )      (172,967 )      (5,413 )      (93 )      (132,970 ) 

Reinvested capital gains

      50,757       233,250       476,281       772,632       102,736       5,791       174       31,138  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      17,678       (84,391 )      981,071       (180,939 )      12,962       50,920       (89 )      (24,830 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      47,909       68,766       (13,815 )      18,169       56,839       57,670       205       14,364  

Transfers between funds

      (1,317,801 )      (100,953 )      240,197       77,690       (144,095 )      208,169       (8,677 )      (519,757 ) 

Surrenders (note 6)

      (53,959 )      (87,793 )      (17,329 )      (409,181 )      (96,191 )      (55,420 )      -           (118,060 ) 

Death benefits (note 4)

      (1,951 )      (4,018 )      -           (22 )      (7,138 )      -           -           -      

Net policy repayments (loans) (note 5)

      6,921       17,635       (898 )      (655 )      19,350       10,079       -           118,060  

Deductions for surrender charges (note 2d)

      -           (113 )      -           -           (59 )      (159 )      -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (42,947 )      (52,536 )      (72,520 )      (69,578 )      (52,555 )      (52,674 )      (483 )      (4,563 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (3,389 )      (4,842 )      (36 )      (39 )      (4,377 )      (4,377 )      -           -      

MSP contracts

      (448 )      (604 )      -           -           (207 )      (248 )      -           -      

SL contracts or LSFP contracts

      (576 )      (752 )      -           -           (178 )      (168 )      -           -      

Adjustments to maintain reserves

      -           (5 )      18       17       4       -           (7 )      25  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,366,241 )      (165,215 )      135,617       (383,599 )      (228,607 )      162,872       (8,962 )      (509,931 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (1,348,563 )      (249,606 )      1,116,688       (564,538 )      (215,645 )      213,792       (9,051 )      (534,761 ) 

Contract owners’ equity beginning of period

      1,348,563       1,598,169       4,730,237       5,294,775       1,322,616       1,108,824       9,527       544,288  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ -           1,348,563       5,846,925       4,730,237       1,106,971       1,322,616       476       9,527  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      53,180       59,171       288,247       312,024       85,010       74,837       496       24,969  

Units purchased

      2,396       3,061       16,366       1,575       4,338       18,178       12       763  

Units redeemed

      (55,576 )      (9,052 )      (6,237 )      (25,352 )      (19,776 )      (8,005 )      (487 )      (25,236 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      -           53,180       298,376       288,247       69,572       85,010       21       496  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     AVHY1     AVIE     AVMCCI     AVSCE  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 563,575       757,679       547,970       578,894       (199 )      708       (557 )      (253 ) 

Realized gain (loss) on investments

      (262,311 )      (60,012 )      1,612,198       3,810,415       (51,522 )      (14,751 )      (42,933 )      (21,332 ) 

Change in unrealized gain (loss) on investments

      1,149,530       (1,152,971 )      (2,520,375 )      (5,901,229 )      60,083       (38,348 )      53,568       (43,040 ) 

Reinvested capital gains

      -           -           -           -           27,727       39,216       17,325       42,403  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,450,794       (455,304 )      (360,207 )      (1,511,920 )      36,089       (13,175 )      27,403       (22,222 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      334,329       280,857       1,690,071       2,025,128       23,618       31,930       -           -      

Transfers between funds

      (440,421 )      (581,516 )      (389,178 )      (4,796,861 )      (99,664 )      20,812       33,342       225,243  

Surrenders (note 6)

      (640,052 )      (703,125 )      (4,220,400 )      (6,568,474 )      (4,656 )      (56,141 )      -           -      

Death benefits (note 4)

      (48,057 )      (131,905 )      (103,221 )      (149,568 )      -           (4,680 )      -           (4 ) 

Net policy repayments (loans) (note 5)

      563       47,335       (71,559 )      46,727       (501 )      (4,520 )      (52 )      (1,995 ) 

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (139,884 )      (151,325 )      (581,953 )      (615,625 )      (11,651 )      (13,542 )      (1,677 )      (630 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (364 )      (482 )      (2,725 )      (3,105 )      (455 )      (412 )      -           -      

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      155       (132 )      168       (58 )      6       (7 )      5       (2 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (933,731 )      (1,240,293 )      (3,678,797 )      (10,061,836 )      (93,303 )      (26,560 )      31,618       222,612  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      517,063       (1,695,597 )      (4,039,004 )      (11,573,756 )      (57,214 )      (39,735 )      59,021       200,390  

Contract owners’ equity beginning of period

      13,801,155       15,496,752       47,081,685       58,655,441       402,728       442,463       200,390       -      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 14,318,218       13,801,155       43,042,681       47,081,685       345,514       402,728       259,411       200,390  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      1,054,103       1,143,753       2,038,231       2,475,931       21,154       22,264       19,997       -      

Units purchased

      31,617       36,625       262,658       278,070       2,034       4,587       3,329       20,260  

Units redeemed

      (100,332 )      (126,275 )      (424,991 )      (715,770 )      (7,204 )      (5,697 )      (169 )      (263 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      985,388       1,054,103       1,875,898       2,038,231       15,984       21,154       23,157       19,997  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     ROCMC     RVARS     TREI2     TRHS2  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 34,150       (18,834 )      536       5,292       523,471       869,104       (28,140 )      (38,827 ) 

Realized gain (loss) on investments

      (740,554 )      (124,506 )      9,750       28,794       3,502,292       6,969,013       2,792,366       4,087,794  

Change in unrealized gain (loss) on investments

      1,903,622       (1,541,321 )      (12,149 )      (21,158 )      (2,126,377 )      (14,033,326 )      (6,483,689 )      (2,725,705 ) 

Reinvested capital gains

      -           446,667       -           -           2,612,541       1,216,426       171,039       2,580,507  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,197,218       (1,237,994 )      (1,863 )      12,928       4,511,927       (4,978,783 )      (3,548,424 )      3,903,769  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      248,190       447,745       17,699       5,601       1,650,397       1,563,365       624,525       615,647  

Transfers between funds

      (1,658,524 )      (2,504,334 )      264,350       (416,266 )      (28,293,862 )      (14,809,993 )      (7,371,673 )      1,165,213  

Surrenders (note 6)

      (289,121 )      (854,055 )      (53,022 )      (20,753 )      (1,610,076 )      (3,158,696 )      (1,150,540 )      (1,259,110 ) 

Death benefits (note 4)

      (17,715 )      (66,320 )      -           -           (111,687 )      (270,039 )      (104,381 )      (143,796 ) 

Net policy repayments (loans) (note 5)

      578       9,147       (3,319 )      3,359       639,689       (26,872 )      (30,272 )      (226,256 ) 

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           (921 )      (411 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (122,527 )      (154,484 )      (33,952 )      (29,630 )      (440,840 )      (823,267 )      (704,093 )      (773,385 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (1,280 )      (1,438 )      (1,472 )      (2,846 )      (2,844 )      (3,659 )      (32,834 )      (42,291 ) 

MSP contracts

      -           -           -           -           -           -           (1,791 )      (1,962 ) 

SL contracts or LSFP contracts

      -           -           -           -           -           -           (7,401 )      (9,715 ) 

Adjustments to maintain reserves

      29       25       (4 )      (4 )      240       (32 )      74       37  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,840,370 )      (3,123,714 )      190,280       (460,539 )      (28,168,983 )      (17,529,193 )      (8,779,307 )      (676,029 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (643,152 )      (4,361,708 )      188,417       (447,611 )      (23,657,056 )      (22,507,976 )      (12,327,731 )      3,227,740  

Contract owners’ equity beginning of period

      6,917,448       11,279,156       342,230       789,841       51,431,936       73,939,912       34,363,964       31,136,224  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 6,274,296       6,917,448       530,647       342,230       27,774,880       51,431,936       22,036,233       34,363,964  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      261,835       372,394       32,120       75,501       2,107,227       2,807,870       999,696       1,018,380  

Units purchased

      23,874       16,575       35,260       3,117       95,241       67,441       27,573       82,203  

Units redeemed

      (86,628 )      (127,134 )      (17,334 )      (46,498 )      (1,243,027 )      (768,084 )      (308,244 )      (100,887 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      199,081       261,835       50,046       32,120       959,441       2,107,227       719,025       999,696  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     TRLT1     TRMCG2     TRNAG1     TRPSB1  
     2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                 

Net investment income (loss)

    $ 235,090       202,315       (53,393 )      (58,571 )      (64,057 )      (82,814 )      54,657       54,248  

Realized gain (loss) on investments

      (77,599 )      (101,809 )      (295,514 )      5,240,635       (2,084,600 )      2,310,271       (188,191 )      (125,093 ) 

Change in unrealized gain (loss) on investments

      114,377       (96,311 )      49,969       (6,026,438 )      631,470       (2,590,922 )      279,097       (216,742 ) 

Reinvested capital gains

      -           -           1,493,887       2,808,783       1,734,518       4,090,222       91,725       266,599  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      271,868       4,195       1,194,949       1,964,409       217,331       3,726,757       237,288       (20,988 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (notes 2a and 6)

      279,362       304,872       31,967       (28,237 )      2,815,837       2,396,113       374,173       138,534  

Transfers between funds

      (4,913,962 )      11,909,945       409,211       (11,583,147 )      (6,513,369 )      (2,388,278 )      19,824       708,184  

Surrenders (note 6)

      (3,711,993 )      (4,881,861 )      (72,582 )      (3,242,433 )      (2,667,924 )      (3,871,779 )      (344,557 )      (1,140,617 ) 

Death benefits (note 4)

      (16,811 )      (146,667 )      (20,402 )      (405,560 )      (349,349 )      (48,880 )      -           (3,117 ) 

Net policy repayments (loans) (note 5)

      (229,178 )      2,071       675,819       (21,086 )      383,960       (476,989 )      51,619       (40,644 ) 

Deductions for surrender charges (note 2d)

      -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

      (275,496 )      (300,711 )      (198,434 )      (224,267 )      (590,852 )      (619,854 )      (61,447 )      (49,041 ) 

Asset charges (note 3):

                 

FPVUL & VEL contracts

      (534 )      (613 )      -           -           (7,246 )      (9,692 )      (363 )      (1,048 ) 

MSP contracts

      -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

      -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

      1,287       (1,842 )      218       (67 )      216       18       58       (8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (8,867,325 )      6,885,194       825,797       (15,504,797 )      (6,928,727 )      (5,019,341 )      39,307       (387,757 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (8,595,457 )      6,889,389       2,020,746       (13,540,388 )      (6,711,396 )      (1,292,584 )      276,595       (408,745 ) 

Contract owners’ equity beginning of period

      24,014,768       17,125,379       20,838,600       34,378,988       41,821,955       43,114,539       3,704,524       4,113,269  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 15,419,311       24,014,768       22,859,346       20,838,600       35,110,559       41,821,955       3,981,119       3,704,524  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      2,318,939       1,654,482       442,133       770,625       1,528,987       1,705,856       231,861       255,954  

Units purchased

      62,380       1,242,581       36,748       5,669       211,304       235,566       32,030       51,965  

Units redeemed

      (909,160 )      (578,124 )      (20,329 )      (334,161 )      (469,777 )      (412,435 )      (29,573 )      (76,058 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,472,159       2,318,939       458,552       442,133       1,270,514       1,528,987       234,318       231,861  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

    TRBCGP     VWEM     VWHA     VVB  
    2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                

Net investment income (loss)

   $ (82,494 )      (62,903 )      30,500       62,574       64,794       (36,549 )      179,797       182,292  

Realized gain (loss) on investments

     1,509,207       1,409,080       (120,107 )      (579,295 )      (3,880,140 )      (2,353,188 )      59,478       253,999  

Change in unrealized gain (loss) on investments

     (881,856 )      1,993,768       58,637       (1,865,592 )      14,108,839       (7,885,482 )      267,508       (881,341 ) 

Reinvested capital gains

     -           -           39,636       718,177       -           -           344,830       394,520  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     544,857       3,339,945       8,666       (1,664,136 )      10,293,493       (10,275,219 )      851,613       (50,530 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     4,843,919       4,853,313       265,248       274,879       1,358,320       1,618,946       957       109  

Transfers between funds

     3,545,674       7,689,575       64,526       (3,671,528 )      (202,933 )      2,753,237       885,363       1,218,023  

Surrenders (note 6)

     (2,352,011 )      (1,002,682 )      (222,034 )      (553,918 )      (1,280,453 )      (1,799,591 )      (150,391 )      (306,301 ) 

Death benefits (note 4)

     (1,648 )      (77,499 )      (34,629 )      (36,336 )      (97,481 )      (107,971 )      (40,315 )      (48,965 ) 

Net policy repayments (loans) (note 5)

     (134,038 )      (75,625 )      43,666       109,060       (50,294 )      22,638       -           -      

Deductions for surrender charges (note 2d)

     -           -           (61 )      -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

     (690,535 )      (512,766 )      (303,572 )      (352,633 )      (627,769 )      (543,234 )      (67,994 )      (65,442 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (15,983 )      (13,972 )      (15,869 )      (20,592 )      (19,014 )      (18,846 )      -           -      

MSP contracts

     -           -           (337 )      (418 )      (150 )      (227 )      -           -      

SL contracts or LSFP contracts

     -           -           (2,041 )      (2,552 )      (1,071 )      (1,260 )      -           -      

Adjustments to maintain reserves

     252       (3 )      (24 )      211       312       (150 )      63       (18 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     5,195,630       10,860,341       (205,127 )      (4,253,827 )      (920,533 )      1,923,542       627,683       797,406  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     5,740,487       14,200,286       (196,461 )      (5,917,963 )      9,372,960       (8,351,677 )      1,479,296       746,876  

Contract owners’ equity beginning of period

     41,876,661       27,676,375       8,091,073       14,009,036       22,688,388       31,040,065       7,865,315       7,118,439  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 47,617,148       41,876,661       7,894,612       8,091,073       32,061,348       22,688,388       9,344,611       7,865,315  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     2,425,545       1,776,681       238,851       336,325       891,836       809,893       489,833       442,815  

Units purchased

     750,563       751,993       18,388       12,483       127,262       160,614       50,650       73,112  

Units redeemed

     (434,945 )      (103,129 )      (24,863 )      (109,957 )      (128,797 )      (78,671 )      (15,168 )      (26,094 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     2,741,163       2,425,545       232,376       238,851       890,301       891,836       525,315       489,833  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

    VVCG     VVDV     VVI     VVMCI  
    2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                

Net investment income (loss)

   $ 97,224       (13,263 )      338,089       350,675       104,996       55,479       308,108       143,902  

Realized gain (loss) on investments

     (21,164 )      43       379,235       708,830       27,395       193,527       812,689       814,562  

Change in unrealized gain (loss) on investments

     729,348       105,878       77,004       (2,447,870 )      (205,005 )      (836,825 )      (261,900 )      (2,777,348 ) 

Reinvested capital gains

     259,870       -           747,681       986,258       142,329       60,454       1,800,809       885,839  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     1,065,278       92,658       1,542,009       (402,107 )      69,715       (527,365 )      2,659,706       (933,045 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     741       (266 )      1,671       603       1,770       (80 )      4,959       (663 ) 

Transfers between funds

     961,080       10,448,462       (1,360,393 )      (1,241,874 )      (1,100,018 )      6,049,610       (1,710,909 )      12,889,324  

Surrenders (note 6)

     (186,428 )      (378,301 )      (222,347 )      (540,700 )      (135,878 )      (366,600 )      (453,591 )      (1,050,399 ) 

Death benefits (note 4)

     (37,129 )      (24,947 )      (75,548 )      (96,368 )      (38,051 )      (52,379 )      (126,229 )      (156,645 ) 

Net policy repayments (loans) (note 5)

     -           -           -           -           -           -           -           -      

Deductions for surrender charges (note 2d)

     -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

     (83,568 )      (45,613 )      (108,326 )      (119,324 )      (68,608 )      (69,707 )      (213,852 )      (206,954 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -           -           -           -           -           -           -           -      

MSP contracts

     -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

     -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

     65       (2 )      89       5       60       (11 )      169       7  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     654,761       9,999,333       (1,764,854 )      (1,997,658 )      (1,340,725 )      5,560,833       (2,499,453 )      11,474,670  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     1,720,039       10,091,991       (222,845 )      (2,399,765 )      (1,271,010 )      5,033,468       160,253       10,541,625  

Contract owners’ equity beginning of period

     10,091,991       -           14,000,476       16,400,241       9,330,551       4,297,083       26,993,273       16,451,648  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 11,812,030       10,091,991       13,777,631       14,000,476       8,059,541       9,330,551       27,153,526       26,993,273  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,016,660       -           942,963       1,075,270       867,678       395,718       1,540,845       923,730  

Units purchased

     88,265       1,062,717       -           -           1       516,149       -           696,051  

Units redeemed

     (29,178 )      (46,057 )      (119,808 )      (132,307 )      (130,477 )      (44,189 )      (143,002 )      (78,936 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,075,747       1,016,660       823,155       942,963       737,202       867,678       1,397,843       1,540,845  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

    VVREI     VVSTC     VVSCG     VVHGB  
    2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                

Net investment income (loss)

   $ 211,253       152,700       89,911       76,654       5,269       7,131       441,697       336,636  

Realized gain (loss) on investments

     164,883       233,365       (7,534 )      (37,140 )      (75,569 )      (22,409 )      (33,629 )      (157,341 ) 

Change in unrealized gain (loss) on investments

     (336,706 )      (600,317 )      54,939       5,979       290,804       (660,162 )      (5,787 )      (341,604 ) 

Reinvested capital gains

     611,456       325,445       -           886       347,644       513,177       58,226       71,030  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     650,886       111,193       137,316       46,379       568,148       (162,263 )      460,507       (91,279 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     2,312       (794 )      224       51       728       25       1,432       (248 ) 

Transfers between funds

     352,919       (833,552 )      519,703       684,863       78,511       249,914       2,604,603       5,728,339  

Surrenders (note 6)

     (153,766 )      (323,800 )      (92,583 )      (204,599 )      (77,195 )      (154,700 )      (379,111 )      (783,900 ) 

Death benefits (note 4)

     (51,011 )      (56,771 )      (28,046 )      (30,217 )      (21,407 )      (28,202 )      (98,561 )      (123,036 ) 

Net policy repayments (loans) (note 5)

     -           -           -           -           -           -           -           -      

Deductions for surrender charges (note 2d)

     -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

     (75,745 )      (74,293 )      (45,982 )      (40,935 )      (33,173 )      (34,770 )      (185,908 )      (162,995 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -           -           -           -           -           -           -           -      

MSP contracts

     -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

     -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

     75       9       20       8       13       (3 )      138       (23 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     74,784       (1,289,201 )      353,336       409,171       (52,523 )      32,264       1,942,593       4,658,137  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     725,670       (1,178,008 )      490,652       455,550       515,625       (129,999 )      2,403,100       4,566,858  

Contract owners’ equity beginning of period

     8,495,138       9,673,146       5,513,186       5,057,636       4,021,049       4,151,048       20,534,955       15,968,097  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 9,220,808       8,495,138       6,003,838       5,513,186       4,536,674       4,021,049       22,938,055       20,534,955  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     477,496       554,659       439,398       406,789       240,856       241,303       1,792,381       1,395,545  

Units purchased

     16,989       -           40,382       54,537       3,324       12,181       221,746       489,881  

Units redeemed

     (15,179 )      (77,163 )      (12,964 )      (21,928 )      (7,264 )      (12,628 )      (56,237 )      (93,045 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     479,306       477,496       466,816       439,398       236,916       240,856       1,957,890       1,792,381  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

    WRASP     WRGP     WRHIP     WRMCG  
    2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                

Net investment income (loss)

   $ 54,386       40,279       (15,006 )      (3,420 )      2,711,630       2,501,877       (10,906 )      (13,780 ) 

Realized gain (loss) on investments

     (2,956,905 )      62,495       (698,650 )      (2,557 )      (1,537,892 )      (832,503 )      (535,333 )      (5,105 ) 

Change in unrealized gain (loss) on investments

     2,491,470       (3,819,448 )      (1,125,365 )      (510,609 )      4,306,807       (4,694,091 )      500,716       (928,712 ) 

Reinvested capital gains

     -           2,345,337       1,888,577       525,750       -           435,234       333,815       490,678  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     (411,049 )      (1,371,337 )      49,556       9,164       5,480,545       (2,589,483 )      288,292       (456,919 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     595,814       709,755       411,664       491,738       780,145       981,737       297,479       481,958  

Transfers between funds

     (5,478,611 )      1,622,490       (2,863,914 )      15,897,294       (2,733,156 )      (4,750,807 )      (2,796,342 )      1,942,205  

Surrenders (note 6)

     (771,983 )      (689,917 )      (103,116 )      (604,826 )      (852,584 )      (699,809 )      (47,440 )      (71,446 ) 

Death benefits (note 4)

     (165,993 )      (233,338 )      (12,999 )      (18 )      (108,110 )      (2,759 )      (54,535 )      (13,285 ) 

Net policy repayments (loans) (note 5)

     (4,287 )      (14,864 )      (20,435 )      (9,388 )      (63,141 )      (105,199 )      3,578       6,652  

Deductions for surrender charges (note 2d)

     (2,387 )      (381 )      -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

     (470,553 )      (500,986 )      (195,300 )      (88,455 )      (444,562 )      (449,772 )      (105,642 )      (132,913 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (24,349 )      (33,884 )      (1,272 )      (1,863 )      (5,672 )      (6,898 )      (1,724 )      (2,264 ) 

MSP contracts

     (518 )      (624 )      -           -           -           -           -           -      

SL contracts or LSFP contracts

     (3,027 )      (3,851 )      -           -           -           -           -           -      

Adjustments to maintain reserves

     8       (3 )      55       17       168       (3 )      20       8  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (6,325,886 )      854,397       (2,785,317 )      15,684,499       (3,426,912 )      (5,033,510 )      (2,704,606 )      2,210,915  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (6,736,935 )      (516,940 )      (2,735,761 )      15,693,663       2,053,633       (7,622,993 )      (2,416,314 )      1,753,996  

Contract owners’ equity beginning of period

     14,359,260       14,876,200       19,112,081       3,418,418       36,199,055       43,822,048       6,616,270       4,862,274  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 7,622,325       14,359,260       16,376,320       19,112,081       38,252,688       36,199,055       4,199,956       6,616,270  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,052,576       996,762       726,824       139,568       3,168,839       3,581,446       497,206       343,498  

Units purchased

     67,318       248,020       23,093       633,251       182,183       144,542       35,402       188,243  

Units redeemed

     (547,211 )      (192,206 )      (134,156 )      (45,995 )      (465,940 )      (557,149 )      (234,634 )      (34,535 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     572,683       1,052,576       615,761       726,824       2,885,082       3,168,839       297,974       497,206  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

    WRRESP     WRSTP     SVDF     SVOF  
    2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                

Net investment income (loss)

   $ 75,410       83,227       (18,176 )      (23,249 )      (13,341 )      (19,554 )      100,038       (8,537 ) 

Realized gain (loss) on investments

     (367,986 )      236,892       (1,162,290 )      645,325       (321,740 )      929,488       (23,564 )      1,706,484  

Change in unrealized gain (loss) on investments

     (227,393 )      (870,992 )      690,860       (1,996,424 )      106,434       (3,499,131 )      (6,347 )      (2,911,383 ) 

Reinvested capital gains

     725,353       857,574       499,483       932,305       994,544       2,319,407       562,582       935,022  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     205,384       306,701       9,877       (442,043 )      765,897       (269,790 )      632,709       (278,414 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     691,070       946,173       1,392,819       1,466,721       964,234       1,018,582       2,383       17,401  

Transfers between funds

     1,225,472       (1,771,487 )      (1,578,510 )      (1,032,658 )      (3,345,233 )      957,625       (21,291 )      (3,185,090 ) 

Surrenders (note 6)

     (146,059 )      (358,538 )      (521,995 )      (921,060 )      (212,022 )      (569,089 )      -           (191,824 ) 

Death benefits (note 4)

     (47,521 )      (932 )      (87,587 )      (79,327 )      (207,150 )      (666 )      -           (1,651 ) 

Net policy repayments (loans) (note 5)

     (11,954 )      (16,890 )      (499,735 )      (595,179 )      (45,613 )      55,119       (1,771 )      -      

Deductions for surrender charges (note 2d)

     -           -           -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

     (142,580 )      (142,397 )      (321,673 )      (345,690 )      (176,876 )      (181,876 )      (77,596 )      (97,930 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (6,058 )      (7,148 )      (9,524 )      (11,751 )      (12,674 )      (12,014 )      -           (17 ) 

MSP contracts

     -           -           -           -           -           -           -           -      

SL contracts or LSFP contracts

     -           -           -           -           -           -           -           -      

Adjustments to maintain reserves

     2       12       70       (32 )      60       (8 )      59       11  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     1,562,372       (1,351,207 )      (1,626,135 )      (1,518,976 )      (3,035,274 )      1,267,673       (98,216 )      (3,459,100 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     1,767,756       (1,044,506 )      (1,616,258 )      (1,961,019 )      (2,269,377 )      997,883       534,493       (3,737,514 ) 

Contract owners’ equity beginning of period

     6,956,811       8,001,317       15,064,146       17,025,165       16,264,113       15,266,230       5,486,988       9,224,502  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 8,724,567       6,956,811       13,447,888       15,064,146       13,994,736       16,264,113       6,021,481       5,486,988  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     323,475       387,600       740,554       811,657       938,219       867,277       234,040       379,694  

Units purchased

     85,695       119,057       86,579       73,859       72,351       140,784       2,777       7,003  

Units redeemed

     (18,710 )      (183,182 )      (175,172 )      (144,962 )      (261,637 )      (69,842 )      (7,395 )      (152,657 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     390,460       323,475       651,961       740,554       748,933       938,219       229,422       234,040  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

    WFVSCG     MIGIC     FHISR     MVRISC  
    2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                

Net investment income (loss)

   $ (7,591 )      (9,794 )      -           28,322       -           10,244       -           73,528  

Realized gain (loss) on investments

     (654,920 )      379,829       -           738,759       -           23,462       -           373,021  

Change in unrealized gain (loss) on investments

     451,060       (1,417,695 )      -           (1,017,898 )      -           152,161       -           (248,986 ) 

Reinvested capital gains

     523,918       824,663       -           297,947       -           -           -           -      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     312,467       (222,997 )      -           47,130       -           185,867       -           197,563  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     213,643       404,723       -           32,802       -           109,650       -           217  

Transfers between funds

     (1,152,860 )      176,013       -           (3,469,871 )      -           (4,116,118 )      -           (3,009,796 ) 

Surrenders (note 6)

     (837,193 )      (261,670 )      -           (20,633 )      -           (104,063 )      -           (2,478 ) 

Death benefits (note 4)

     (15,416 )      (96,684 )      -           -           -           (46,591 )      -           (5,675 ) 

Net policy repayments (loans) (note 5)

     6,859       (37,501 )      -           (23,561 )      -           5,676       -           (764 ) 

Deductions for surrender charges (note 2d)

     (288 )      (49 )      -           -           -           -           -           -      

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

     (109,949 )      (131,120 )      -           (33,423 )      -           (64,465 )      -           (11,603 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     (4,726 )      (6,287 )      -           (3,487 )      -           (4,517 )      -           (50 ) 

MSP contracts

     (25 )      (29 )      -           (19 )      -           (144 )      -           -      

SL contracts or LSFP contracts

     (1,012 )      (1,143 )      -           (148 )      -           (436 )      -           -      

Adjustments to maintain reserves

     46       62       -           (10 )      -           1       -           -      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,900,921 )      46,315       -           (3,518,350 )      -           (4,221,007 )      -           (3,030,149 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (1,588,454 )      (176,682 )      -           (3,471,220 )      -           (4,035,140 )      -           (2,832,586 ) 

Contract owners’ equity beginning of period

     6,201,275       6,377,957       -           3,471,220       -           4,035,140       -           2,832,586  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 4,612,821       6,201,275       -           -           -           -           -           -      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     390,465       389,785       -           129,370       -           262,020       -           288,102  

Units purchased

     16,134       44,930       -           1,906       -           8,488       -           12,816  

Units redeemed

     (136,451 )      (44,250 )      -           (131,276 )      -           (270,508 )      -           (300,918 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     270,148       390,465       -           -           -           -           -           -      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

    FOSR     CAF     NVMIG3     AMFAS  
    2016     2015     2016     2015     2016     2015     2016     2015  

Investment activity:

                

Net investment income (loss)

   $ -           -           19,571       57,511       -           -           -           (563 ) 

Realized gain (loss) on investments

     -           2,938,980       3,341,232       970,194       -           -           -           (216,041 ) 

Change in unrealized gain (loss) on investments

     -           (1,887,078 )      (4,805,528 )      (2,302,463 )      -           -           -           (56,197 ) 

Reinvested capital gains

     -           -           1,404,949       2,060,769       -           -           -           260,397  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     -           1,051,902       (39,776 )      786,011       -           -           -           (12,404 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (notes 2a and 6)

     -           219,069       276,455       1,009,699       -           -           -           53,035  

Transfers between funds

     -           (12,128,561 )      (16,138,685 )      107,219       -           -           -           (1,593,065 ) 

Surrenders (note 6)

     -           (156,651 )      (444,878 )      (1,178,466 )      -           -           -           (71,960 ) 

Death benefits (note 4)

     -           (41,811 )      (43,429 )      (195,232 )      -           -           -           (10,200 ) 

Net policy repayments (loans) (note 5)

     -           (872 )      16,979       128,526       -           -           -           (11,060 ) 

Deductions for surrender charges (note 2d)

     -           (257 )      -           (9 )      -           -           -           (77 ) 

Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)

     -           (151,836 )      (275,533 )      (941,753 )      -           -           -           (35,943 ) 

Asset charges (note 3):

                

FPVUL & VEL contracts

     -           (14,102 )      (18,488 )      (65,942 )      -           -           -           (3,123 ) 

MSP contracts

     -           (246 )      (505 )      (1,854 )      -           -           -           (50 ) 

SL contracts or LSFP contracts

     -           (1,303 )      (669 )      (3,198 )      -           -           -           (203 ) 

Adjustments to maintain reserves

     -           253       8,986       (21 )      -           -           -           (13 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     -           (12,276,317 )      (16,619,767 )      (1,141,031 )      -           -           -           (1,672,659 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     -           (11,224,415 )      (16,659,543 )      (355,020 )      -           -           -           (1,685,063 ) 

Contract owners’ equity beginning of period

     -           11,224,415       16,659,543       17,014,563       -           -           -           1,685,063  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ -           -           -           16,659,543       -           -           -           -      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     -           677,999       1,029,042       1,099,344       -           -           -           76,374  

Units purchased

     -           15,479       43,072       85,331       -           6       -           9,390  

Units redeemed

     -           (693,478 )      (1,072,114 )      (155,633 )      -           (6 )      -           (85,764 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     -           -           -           1,029,042       -           -           -           -      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

See accompanying notes to financial statements.

NATIONWIDE VLI SEPARATE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS

December 31, 2016

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VLI Separate Account-4 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on December 3, 1997. The Account is registered as a unit investment trust under the Investment Company Act of 1940. The Account is an Investment Company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946, Financial Services – Investment Companies. The Company offers Flexible Premium, Modified Single Premium, Variable Executive Life and Survivorship Life Variable Life Insurance Policies through the Account. The primary distribution for contracts is through wholesalers and brokers.

(b) The Contracts

Only contracts with a front-end sales load and certain other fees have been offered for purchase. See note 2 for a discussion of policy charges and note 3 for asset charges.

With certain exceptions, contract owners may invest in the following:

AB FUNDS

VPS Dynamic Asset Allocation Portfolio - Class A (ALVDAA)

VPS Growth and Income Portfolio - Class A (ALVGIA)

VPS Growth and Income Portfolio - Class B (ALVGIB)*

VPS International Value Portfolio - Class A (ALVIVA)

VPS International Value Portfolio - Class B (ALVIVB)*

VPS Small/Mid Cap Value Portfolio - Class A (ALVSVA)

VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)*

AMERICAN CENTURY INVESTORS, INC.

VP Inflation Protection Fund - Class I (ACVIP1)

AMERICAN FUNDS GROUP (THE)

Asset Allocation Fund - Class 2 (AMVAA2)

Bond Fund - Class 2 (AMVBD2)

Global Small Capitalization Fund - Class 2 (AMVGS2)

Growth Fund - Class 2 (AMVGR2)

International Fund - Class 2 (AMVI2)

New World Fund - Class 2 (AMVNW2)

BLACKROCK FUNDS

Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund- Class I (BRVHYI)

Large Cap Core V.I. Fund - Class II (MLVLC2)

Global Allocation V.I. Fund - Class II (MLVGA2)

CALVERT GROUP

VP S&P 500 Index Portfolio (CVSPIP)

DAVIS FUNDS

Value Portfolio (DAVVL)

DELAWARE GROUP

VIP Emerging Markets Series: Service Class (DWVEMS)

VIP Small Cap Value Series: Service Class (DWVSVS)

DIMENSIONAL FUND ADVISORS INC.

VA Inflation-Protected Securities Portfolio (DFVIPS)

VA International Small Portfolio (DFVIS)

VA U.S. Targeted Value Portfolio (DFVUTV)

DREYFUS CORPORATION

Stock Index Fund, Inc. - Initial Shares (DSIF)

Stock Index Fund, Inc. - Service Shares (DSIFS)*

MidCap Stock Portfolio - Initial Shares (DVMCS)

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

Appreciation Portfolio - Initial Shares (DCAP)

Appreciation Portfolio - Service Shares (DCAPS)*

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

International Value Portfolio - Initial Shares (DVIV)

DEUTSCHE ASSET & WEALTH MANAGEMENT

Global Income Builder VIP - Class A (DSGIBA)

Small Cap Index VIP - Class A (BISCI)*

Variable Series II - DWS Small Mid Cap Value VIP - Class B (SVSSVB)

Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

EATON VANCE FUNDS

Floating-Rate Income Fund (ETVFR)

FIDELITY INVESTMENTS

VIP Freedom Fund 2015 Portfolio: Service Class 2 (FF15S2)*

VIP Contrafund(R) Portfolio - Service Class (FCS)

VIP Energy Portfolio - Service Class 2 (FNRS2)

VIP Equity-Income Portfolio - Service Class (FEIS)

VIP Equity-Income Portfolio - Service Class 2 (FEI2)*

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

VIP Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)*

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

VIP Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)*

VIP Freedom Income Fund Portfolio - Service Class (FFINS)

VIP Growth & Income Portfolio - Service Class (FGIS)*

VIP Growth Opportunities Portfolio - Service Class (FGOS)

VIP Growth Portfolio - Service Class (FGS)

VIP Growth Portfolio - Service Class 2 (FG2)*

VIP High Income Portfolio - Service Class (FHIS)

VIP Index 500 Portfolio - Initial Class (FIP)

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

VIP Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)*

VIP Mid Cap Portfolio - Service Class (FMCS)

VIP Mid Cap Portfolio - Service Class 2 (FMC2)*

VIP Money Market Portfolio - Initial Class (FMMP)

VIP Overseas Portfolio - Service Class (FOS)

VIP Value Strategies Portfolio - Service Class (FVSS)

VIP Fidelity VIP Freedom Fund 2005 Portfolio - Service Class (FF05S)

VIP Fidelity VIP Freedom Fund 2015 Portfolio - Service Class (FF15S)

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class (FF25S)

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class 2 (FF25S2)*

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class (FF40S)

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class 2 (FF40S2)*

FRANKLIN TEMPLETON DISTRIBUTORS, INC.

Franklin Income Securities Fund - Class 2 (FTVIS2)

Rising Dividends Securities Fund - Class 1 (FTVRDI)

Small Cap Value Securities Fund - Class 1 (FTVSVI)

Small Cap Value Securities Fund - Class 2 (FTVSV2)

Mutual Global Discovery Securities Fund - Class 2 (FTVMD2)

Templeton Developing Markets Securities Fund - Class 2 (FTVDM2)

Templeton Foreign Securities Fund - Class 1 (TIF)

Templeton Foreign Securities Fund - Class 2 (TIF2)

Templeton Global Bond Securities Fund - Class 2 (FTVGI2)

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

VIP Trust - Templeton Global Bond VIP Fund: Class 1 (FTVGB1)

INVESCO INVESTMENTS

Van Kampen V.I. Mid Cap Growth Fund - Series I Shares (IVKMG1)

Balanced-Risk Allocation Fund: Series I Shares (IVBRA1)

VI American Franchise Fund - Series II Shares (ACEG2)*

VI Growth and Income Fund - Series I Shares (ACGI)

VI Growth and Income Fund - Series II Shares (VKLGI2)*

VI American Value Fund: Series I Shares (MSVMV)*

VI American Franchise Fund - Series I Shares (ACEG)

VI Value Opportunities Fund - Series I Shares (AVBVI)

VI High Yield Fund - Series I Shares (AVHY1)

VI International Growth Fund - Series I Shares (AVIE)

VI Mid Cap Core Equity Fund: Series I Shares (AVMCCI)

VI Small Cap Equity Fund - Series I Shares (AVSCE)

J.P. MORGAN INVESTMENT MANAGEMENT INC.

Mid Cap Value Portfolio: Class 1 (JPMMV1)

Small Cap Core Portfolio 1 (JPSCE1)

Insurance Trust Core Bond Portfolio: Class 1 (OGBDP)*

Insurance Trust Intrepid Mid Cap Portfolio: Class 1 (OGDMP)*

Insurance Trust U.S. Equity Portfolio: Class 1 (OGDEP)*

JANUS FUNDS

Balanced Portfolio: Service Shares (JABS)

Enterprise Portfolio: Service Shares (JAMGS)

Flexible Bond Portfolio: Service Shares (JAFBS)

Forty Portfolio: Service Shares (JACAS)

Global Technology Portfolio: Service Shares (JAGTS)

Overseas Portfolio: Service Shares (JAIGS)

Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

LAZARD FUNDS

Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)

LORD ABBETT FUNDS

Lord Abbett Series Fund Inc. - Bond Debenture Portfolio: Class VC (LOVBD)

Lord Abbett Series Fund Inc. - Mid Cap Stock Portfolio: Class VC (LOVMCV)

Series Fund, Inc. - Total Return Portfolio - Class VC (LOVTRC)

Lord Abbett Series Fund Inc. - Short Duration Income Portfolio: Class VC (LOVSDC)

M FUNDS

M Large Cap Value Fund (MFBOV)*

M Capital Appreciation Fund (MFFCA)*

M International Equity Fund (MFBIE)*

M Large Cap Growth Fund (MFTCG)*

MASSACHUSETTS FINANCIAL SERVICES CO.

VIT II - MFS Blended Research Core Equity Portfolio- Service Class (MVBRES)

MFS Bond Portfolio - Service Class (MVBDS)*

Var Insurance Trust II - MFS Investors Growth Stock Portfolio: Initial Class (MV2IGI)

Var Insurance Trust II - MFS Research International Portfolio: Service Class (MV2RIS)

Variable Insurance Trust - MFS New Discovery Series - Intital Class (MNDIC)

New Discovery Series - Service Class (MNDSC)

Value Series - Initial Class (MVFIC)

Value Series - Service Class (MVFSC)

Variable Insurance Trust II - MFS International Value Portfolio - Service Class (MVIVSC)

MORGAN STANLEY

Core Plus Fixed Income Portfolio - Class I (MSVFI)

Emerging Markets Debt Portfolio - Class I (MSEM)

Emerging Markets Debt Portfolio - Class II (MSEMB)*

Global Real Estate Portfolio - Class II (VKVGR2)

Mid Cap Growth Portfolio - Class II (MSVMG2)*

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

Universal Institutional Funds, Inc. - Growth Portfolio - Class I (MSVEG)

U.S. Real Estate Portfolio - Class I (MSVRE)

NATIONWIDE FUNDS GROUP

NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

NVIT Investor Destinations Managed Growth Class I (IDPG)*

NVIT Cardinal Managed Growth and Income Class I (NCPGI)

NVIT Cardinal Managed Growth Class I (NCPG)

NVIT Bond Index Fund Class I (NVBX)

NVIT International Index Fund Class I (NVIX)

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

American Funds NVIT Bond Fund - Class II (GVABD2)

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

American Funds NVIT Growth Fund - Class II (GVAGR2)

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

Federated NVIT High Income Bond Fund - Class I (HIBF)

NVIT Emerging Markets Fund - Class I (GEM)

NVIT International Equity Fund - Class I (GIG)

Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II (NVIE6)

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)*

NVIT Cardinal Aggressive Fund - Class I (NVCRA1)

NVIT Cardinal Balanced Fund - Class I (NVCRB1)

NVIT Cardinal Capital Appreciation Fund - Class I (NVCCA1)

NVIT Cardinal Conservative Fund - Class I (NVCCN1)

NVIT Cardinal Moderate Fund - Class I (NVCMD1)

NVIT Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

NVIT Cardinal Moderately Conservative Fund - Class I (NVCMC1)

NVIT Core Bond Fund - Class I (NVCBD1)

NVIT Core Plus Bond Fund - Class I (NVLCP1)

NVIT Nationwide Fund - Class I (TRF)

NVIT Government Bond Fund - Class I (GBF)

NVIT International Index Fund - Class II (GVIX2)

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

NVIT Mid Cap Index Fund - Class I (MCIF)

NVIT Mid Cap Index Fund - Class II (MCIF2)*

NVIT Money Market Fund - Class I (SAM)

NVIT Money Market Fund - Class V (SAM5)

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

NVIT Multi-Manager International Value Fund - Class I (GVDIVI)

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

NVIT Multi-Manager Mid Cap Value Fund - Class I (NVMMV1)

NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

NVIT Multi-Manager Small Company Fund - Class I (SCF)

NVIT Multi-Sector Bond Fund - Class I (MSBF)

NVIT Short Term Bond Fund - Class I (NVSTB1)

NVIT Short Term Bond Fund - Class II (NVSTB2)

NVIT Large Cap Growth Fund - Class I (NVOLG1)

Templeton NVIT International Value Fund - Class III (NVTIV3)

Invesco NVIT Comstock Value Fund - Class I (EIF)

NVIT Real Estate Fund - Class I (NVRE1)

Loring Ward NVIT Capital Appreciation Fund - Class P (NVLCAP)

Loring Ward NVIT Moderate Fund - Class P (NVLMP)

NVIT Small Cap Index Fund Class II (NVSIX2)

NVIT S&P 500 Index Fund Class I (GVEX1)

NEUBERGER & BERMAN MANAGEMENT, INC.

Short Duration Bond Portfolio - I Class Shares (AMTB)

Guardian Portfolio - I Class Shares (AMGP)

International Portfolio - S Class Shares (AMINS)

Mid-Cap Growth Portfolio - I Class Shares (AMCG)

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class I (AMRI)

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class S (AMRS)*

Socially Responsive Portfolio - I Class Shares (AMSRS)

NORTHERN LIGHTS

TOPS Managed Risk Balanced ETF Portfolio - Class 3 (NOTB3)

TOPS Managed Risk Growth ETF Portfolio - Class 3 (NOTG3)

TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

AMERICAN CENTURY INVESTORS INC.

VP Capital Appreciation Fund - Class I (ACVCA)

VP Income & Growth Fund - Class I (ACVIG)

VP Inflation Protection Fund - Class II (ACVIP2)

VP International Fund - Class I (ACVI)

VP Mid Cap Value Fund - Class I (ACVMV1)

VP Mid Cap Value Fund - Class II (ACVMV2)*

VP Ultra(R) Fund - Class I (ACVU1)

VP Value Fund - Class I (ACVV)

VP Value Fund - Class II (ACVV2)*

FEDERATED INVESTORS

Managed Tail Risk Fund II: Primary Shares (FVCA2P)

Quality Bond Fund II - Primary Shares (FQB)

Quality Bond Fund II - Service Shares (FQBS)*

GOLDMAN SACHS ASSET MANAGEMENT GROUP

Mid Cap Value- Institutional Shares (GVMCE)

Goldman Sachs Structured Small Cap Equity Fund (GVCSE)

VIT Growth Opportunities Fund - Service Shares (GVGOPS)

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

LEGG MASON

ClearBridge Variable Small Cap Growth Portfolio - Class I (SBVSG)

LINCOLN FUNDS

Baron Growth Opportunities Fund Service Class (BNCAI)

OPPENHEIMER FUNDS

Oppenheimer Capital Appreciation Fund/VA - Service Class (OVCAFS)*

Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

Global Securities Fund/VA - Non-Service Shares (OVGS)

Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Service Shares (OVGSS)*

International Growth Fund/VA - Non-Service Shares (OVIG)

Main Street Fund(R)/VA - Non-Service Shares (OVGI)

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

PIMCO FUNDS

All Asset Portfolio - Administrative Class (PMVAAA)

CommodityRealReturn(R) Strategy Portfolio - Administrative Class (PMVRSA)

Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)

Long-Term U.S. Government Portfolio - Administrative Class (PMVLGA)

Low Duration Portfolio - Administrative Class (PMVLDA)

Real Return Portfolio - Administrative Class (PMVRRA)

Total Return Portfolio - Administrative Class (PMVTRA)

PIONEER FUNDS

Pioneer Emerging Markets VCT Portfolio - Class I Shares (PIVEMI)

Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class I (PIHYB1)

Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II (PIHYB2)*

PUTNAM INVESTMENTS

VT Growth & Income Fund: Class IB (PVGIB)

VT Growth Opportunities Fund: Class IB (PVGOB)

VT International Equity Fund: Class IB (PVTIGB)

VT Small Cap Value Fund: Class IB (PVTSCB)

ROYCE CAPITAL FUNDS

Micro-Cap Portfolio - Investment Class (ROCMC)

Small-Cap Portfolio - Investment Class (ROCSC)*

GUGGENHEIM INVESTMENTS

Variable Fund - Multi-Hedge Strategies (RVARS)

T. ROWE PRICE

Blue Chip Growth Portfolio - II (TRBCG2)*

Equity Income Portfolio - II (TREI2)

Health Sciences Portfolio - II (TRHS2)

Limited-Term Bond Portfolio (TRLT1)

Limited-Term Bond Portfolio - II (TRLT2)

Mid-Cap Growth Portfolio - II (TRMCG2)

New America Growth Portfolio (TRNAG1)

Personal Strategy Balanced Portfolio (TRPSB1)

Blue Chip Growth Portfolio (TRBCGP)

VAN ECK ASSOCIATES CORPORATION

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

VANGUARD GROUP OF INVESTMENT COMPANIES

Variable Insurance Fund - Balanced Portfolio (VVB)

Insurance Fund - Capital Growth Portfolio (VVCG)

Variable Insurance Fund - Diversified Value Portfolio (VVDV)

Variable Insurance Fund - International Portfolio (VVI)

Variable Insurance Fund - Mid-Cap Index Portfolio (VVMCI)

Variable Insurance Fund - REIT Index Portfolio (VVREI)

Variable Insurance Fund - Short-Term Investment-Grade Portfolio (VVSTC)

Variable Insurance Fund - Small Company Growth Portfolio (VVSCG)

Variable Insurance Fund - Total Bond Market Index Portfolio (VVHGB)

WADDELL & REED, INC.

Variable Insurance Portfolios - Asset Strategy (WRASP)

Variable Insurance Portfolios - Growth (WRGP)

Variable Insurance Portfolios - High Income (WRHIP)

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

Variable Insurance Portfolios - Science and Technology (WRSTP)

WELLS FARGO FUNDS

Wells Fargo Variable Trust - VT Discovery Fund: Class 2 (SVDF)

Advantage VT Opportunity Fund - Class 2 (SVOF)

Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)

 

  * At December 31, 2016, contract owners were not invested in this fund.

The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain policy and asset charges (see notes 2 and 3). 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 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.

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity if a prior period purchase payment is refunded to a contract owner due to a contract cancellation during the free look period, and/or if a gain is realized by the contract owner during the free look period.

The Company allocates purchase payments to sub-accounts and/or the fixed account as instructed by the contract owner. Shares of the sub-accounts are purchased at Net Asset Value, then converted into accumulation units. Certain transactions may be subject to conditions imposed by the underlying mutual funds, as well as those set forth in the contract.

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued at the closing Net Asset Value per share at December 31, 2016 of such funds. The cost of investments sold is determined on a first in - first out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed), and dividends and capital gain distributions are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code. The Company does not provide for income taxes within the Account. Taxes are generally 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 U.S. 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) Recently Issued Accounting Standards

There are no recently issued accounting standards applicable to the Account.

(g) Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued with the Securities and Exchange Commission, and no subsequent events have occurred requiring accrual or disclosure.

(h) Securities and Exchange Commission Regulations

On October 13, 2016, the Securities and Exchange Commission amended Regulation S-X, which will require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is currently evaluating the impact to the financial statements and disclosures.

(2) Policy Charges

(a) Deductions from Premium

For individual flexible premium and survivorship contracts, the Company deducts a minimum of 4.0% to a maximum of 8.5% of all premiums received to cover premium tax and sales expense. The Company may, at its sole discretion, reduce the sales loading portion of the premium load.

There are no deductions from premium on modified single premium contracts.

For the Corporate Series, the Company deducts a front-end sales load from each premium payment received to compensate us for our sales expenses and premium taxes, and certain actual expenses, including acquisition costs. The Company may reduce this charge where the size or nature of the group results in savings in sales, underwriting, or administrative costs. Variations due to differences in costs are determined in a manner not unfairly discriminatory to policy owners.

For Future Corporate Flexible Premium Variable Universal Life this charge is guaranteed not to exceed 12% from each premium payment received.

For Future Executive Flexible Premium Variable Universal Life this charge is guaranteed not to exceed 12% (5.5% starting in the sixth policy year) from each premium payment received.

For Next Generation Corporate Owned Flexible Premium Variable Universal Life this charge is guaranteed not to exceed 10% from each premium payment received.

For the periods ended December 31, 2016 and 2015, total front-end sales charge deductions were $11,076,473 and $11,857,145, respectively and were recognized as a reduction of purchase payments on the Statements of Changes in Contract Owners’ Equity.

(b) Cost of Insurance

A cost of insurance charge is assessed monthly against each contract by liquidating units. The amount of the charge varies widely and is based upon age, sex, rate class and net amount at risk (death benefit less total contract value).

(c) Administrative Charges

For The Best of America® Next Generation, ChoiceLifeSM and all flexible premium survivorship contracts, the Company currently deducts a minimum monthly administration charge (for ProtectionSM flexible premium contracts this is known as the “monthly expense charge”) of $5 per policy month to a maximum of $10 per policy month to recover policy maintenance, accounting, record keeping and other administrative expenses. These charges are assessed monthly against each contract by liquidating units. For The Best of America® Last Survivorship II and The Best of America® ChoiceLife Survivorship Life contracts, there is an additional administrative (per specified amount) charge assessed to reimburse us for sales, underwriting, distribution and issuance costs. This charge is deducted from the policy’s Cash Value. During the first ten years from the Policy Date, the current monthly charge is $0.04 per $1,000 of Specified Amount, subject to a minimum charge of $20 and a maximum charge of $80 per month. These rates represent the maximum guaranteed charge for all years. After the tenth year from the Policy Date, the current monthly charge is $0.02 per $1,000 of Specified Amount with a $10 minimum and $40 maximum charge.

For The Best of America® ChoiceLifeSM Survivorship II, Next GenerationSM Survivorship Life, The Best of America® Protection Survivorship Life and The Best of America® ChoiceLifeSM Protection contracts, the Company deducts a per $1,000 of specified amount charge for the first 3 policy years. This charge varies with the age of the insured and will not exceed $0.40 per $1,000 of Specified Amount. These charges are assessed monthly against each contract by liquidating units.

For modified single premium contracts, for all states other than New York, the Company currently deducts a minimum monthly administration charge of $10 per policy per month. The actual charge is determined by multiplying 0.30% on an annualized basis by the policy’s cash value. This charge may be reduced to 0.15% on an annualized basis for policy years 11 and later. In New York, this charge is assessed in all policy years, with a maximum charge of $7.50 per month. These charges are assessed monthly against each contract by liquidating units.

For ProtectionSM flexible premium contracts, the Company deducts a policy expense per $1,000 of specified amount charge for the first two policy years. This charge varies with the age of the insured and will not exceed $0.30 per $1,000 of specified amount. For last survivor contracts, the Company deducts a per $1,000 of specified amount charge for the first 3 policy years. This charge varies with the age of the insured and will not exceed $0.40 per $1,000 of specified amount. These charges are assessed monthly against each contract by liquidating units.

For the Corporate Series, the Company deducts a monthly administrative expense charge to recover policy maintenance, accounting, record keeping and other administrative expenses. These charges are assessed against each contract by liquidating units. Currently, this monthly charge $5 per policy in all policy years (guaranteed not to exceed $10 per policy). We also deduct a per $1,000 of specified amount charge to compensate us for sales, underwriting, distribution and issuance of the policy. This charge is assessed monthly against each contract by liquidating units. This charge varies depending on the total specified amount. For Future Corporate Flexible Premium Variable Universal Life, the Company deducts a per $1,000 of specified amount that will not exceed $0.40 per $1,000 of specified amount, unless the policy is issued in the state of New York with an application signed on or after January 2, 2010, where the maximum guaranteed charge is $0.085 of specified amount. For Next Generation Corporate Owned Flexible Premium Variable Universal Life and Future Executive Corporate Flexible Premium Variable Universal Life the Company deducts a per $1,000 of specified amount charge that will not exceed $0.40 per $1,000 of specified amount.

(d) Surrender Charges

Policy surrenders result in a redemption of the contract value from the Account and payment of the surrender proceeds to the contract owner or designee. The surrender proceeds consist of the contract value, less any outstanding policy loans, and less a surrender charge, if applicable. The amount of the charge is based upon a specified percentage of the initial surrender charge which varies by issue age, sex and rate class. For individual flexible premium, flexible premium survivorship and modified single premium and corporate contracts (such as Variable Executive Life), the charge is 100% of the initial surrender charge in the first year, and declines a specified amount in subsequent years to 0% of the initial surrender charge in the ninth year or later. The Company may waive the surrender charge for certain contracts in which the sales expenses normally associated with the distribution of a contract are not incurred. The charges are assessed against each contract by liquidating units.

For the Corporate Series, contracts do not currently assess surrender charges.

(3) Asset Charges

The Company deducts a charge related to the assumption of mortality and expense risk.

(a) Modified Single Premium Contracts (MSP)

For modified single premium contracts, the Company deducts a charge equal to an annualized rate of 0.70% of the cash surrender value of the sub-accounts. In policy years 1- 10, the Company also deducts a charge equal to the annualized rate of 0.50% of the cash surrender value of the sub-accounts to remiburse us for taxes imposed by federal, state and local governments. These charges are assessed monthly against each contract by liquidating units.

(b) Flexible Premium and Variable Executive Life Contracts (FPVUL and VEL)

For Best of America® The Next Generation and ChoiceLifeSM contracts, during the first fifteen policy years, the Company deducts a charge of $0.50 per $1,000 on the first $25,000 of cash value attributable to the variable account, $0.25 per $1,000 on $25,001 up to $250,000 of cash value attributable to the variable account and $0.08 per $1,000 over $250,000 of cash value attributable to the variable account. Beginning in policy year sixteen, the Company deducts a charge of $0.50 per $1,000 on the first $25,000 of cash value attributable to the variable account, and $0.08 per $1,000 over

$25,000 of cash value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units. For Choice Life ProtectionSM contracts and Best of America® ProtectionSM contracts, the Company deducts $0.66 per $1,000 of cash surrender value attributable to the variable account during the first through fifteenth years from the Policy Date. Thereafter, this charge is $0.25 per $1,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

(c) Survivorship Life Contracts (SL)

For The Best of America® Last Survivorship II and The Best of America® ChoiceLife Survivorship contracts, during the first ten policy years, the Company deducts a charge of $0.46 per $1,000 on the cash surrender value attributable to the variable account. After ten years from the Policy Date, the Company deducts $0.46 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account; $0.29 per $1,000 on $25,001 up to $99,999 of cash surrender value attributable to the variable account; and $0.17 per $1,000 on $100,000 or more of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For The Best of America® ChoiceLifeSM Survivorship II and Next GenerationSM Survivorship Life contracts, during the first fifteen policy years, the Company deducts a charge of $0.50 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account; $0.25 per $1,000 on $25,001 up to $250,000 of cash surrender value attributable to the variable account; and $0.08 per $1,000 over $250,000 of cash surrender value attributable to the variable account. After fifteen years from the Policy Date, the Company deducts $0.50 per $1,000 on the first $25,000 of cash surrender value attributable to the variable account and $0.08 per $1,000 over $25,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

For The Best of America® ProtectionSM Survivorship and ChoiceLife ProtectionSM Survivorship Life contracts, during the first fifteen policy years, the Company deducts a charge of $0.66 per $1,000 of cash surrender value attributable to the variable account. After fifteen years from the Policy Date, the Company deducts $0.25 per $1,000 of cash surrender value attributable to the variable account. This charge is assessed monthly against each contract by liquidating units.

(d) Corporate Contracts (LSFP)

For Future Corporate Flexible Premium variable Universal Life, the Company deducts a charge guaranteed not to exceed an annualized rate of 0.90% of the daily net assets of the Account for policies issued on or after January 1, 2009. This charge is guaranteed not to exceed an annualized rate of 0.75% of the daily net assets of the Account for policies issued prior to January 1, 2009. Currently, this rate is 0.25% during the first through fourth policy years, 0.20% during the fifth through fifteenth policy years, and 0.10% thereafter. This charge is assessed monthly against each contract by liquidating units.

For Future Executive Corporate Flexible Premium Variable Universal Life, the Company deducts a charge guaranteed not to exceed an annualized rate of 0.90% of the daily net assets of the Account. Currently, this rate is 0.25% during the first through fourth policy years, 0.20% during the fifth through fifteenth policy years, and 0.10% thereafter. This charge is assessed monthly against each contract by liquidating units.

For Next Generation Corporate Owned Flexible Premium Variable Universal Life, the Company deducts a charge guaranteed not to exceed an annualized rate of 1.25% of the daily net assets of the Account. Currently, this rate will not exceed 0.60%. This charge is assessed monthly against each contract by liquidating units.

The Company may reduce or eliminate certain charges where the size or nature of the group results in savings in sales, underwriting, administrative or other costs to the Company. These charges may be reduced in certain group sponsored arrangements or special exchange programs made available by the Company.

(4) Death Benefits

Death benefit proceeds result in a redemption of the contract value from the Account and payment of those proceeds, less any outstanding policy loans (and policy charges), to the legal beneficiary. In the event that the guaranteed death benefit exceeds the contract value on the date of death, the excess is paid by the Company’s general account.

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow 90% of a policy’s variable cash surrender value plus 100% of a policy’s fixed cash surrender value less applicable value of surrender charge. Interest is charged on the outstanding loan and is due and payable in advance on the policy anniversary. At the time the loan is granted, the amount of the loan is transferred from the Account to the Company’s general account as collateral for the outstanding loan. Collateral amounts in the general account are credited with the stated rate of interest in effect at the time the loan is made, subject to a guaranteed minimum rate. Interest credited is paid by the Company’s general account to the Account. Loan repayments result in a transfer of collateral including interest credited back to the Account.

(6) 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, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company.

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. These transfers are the result of the contract owner executing fund exchanges. Fund exchanges from the Account to the fixed account are included in surrenders, and fund exchanges from the fixed account to the Account are included in purchase payments received from contract owners, as applicable, on the accompanying Statements of Changes in Contract Owner’s Equity. Policy loan transactions (note 5), executed at the direction of the contract owner, also result in transfers between the Account and the fixed account of the Company, but are included in Net Policy Repayments (Loans). The fixed account assets are not reflected in the accompanying financial statements. For the periods ended December 31, 2016 and 2015, total transfers to the Account from the fixed account were $47,759,275 and $46,415,343, respectively, and total transfers from the Account to the fixed account were $83,480,348 and $92,646,180, respectively.

(7) Fair Value Measurement

FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs.

In accordance with FASB ASC 820, the Account categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

The Account categorizes financial assets recorded at fair value as follows:

 

  •  

Level 1 – Unadjusted quoted prices accessible in active markets and mutual funds where the value per share (unit) is determined and published and is the basis for current transactions for identical assets or liabilities at the measurement date.

 

  •  

Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means.

 

  •  

Level 3 – Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate about the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the method of valuation and the valuation inputs.

The Account recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between Level 1 and 2 as of December 31, 2016.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2016:

 

     Level 1      Level 2      Level 3      Total  

Separate Account Investments

    $ 4,732,604,741      $ -          $ -          $ 4,732,604,741  

The cost of purchases and proceeds from sales of Investments for the year ended December 31, 2016 are as follows:

 

     Purchase of
Investments		      Sales of
Investments		  

VPS Dynamic Asset Allocation Portfolio - Class A (ALVDAA)

    $ 8,859      $ 44,869  

VP Inflation Protection Fund - Class I (ACVIP1)

      15,788,261        2,203,470  

Asset Allocation Fund - Class 2 (AMVAA2)

      3,117,097        471,680  

Bond Fund - Class 2 (AMVBD2)

      1,474,024        761,610  

Global Small Capitalization Fund - Class 2 (AMVGS2)

      504,528        530,670  

Growth Fund - Class 2 (AMVGR2)

      4,631,885        4,401,096  

International Fund - Class 2 (AMVI2)

      2,679,607        1,470,656  

New World Fund - Class 2 (AMVNW2)

      380,769        1,668  

Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund- Class I (BRVHYI)

      2,469,897        1,552,848  

Large Cap Core V.I. Fund - Class II (MLVLC2)

      963,584        1,267,778  

Global Allocation V.I. Fund - Class II (MLVGA2)

      1,143,431        2,005,010  

VP S&P 500 Index Portfolio (CVSPIP)

      523,271        417,512  

Value Portfolio (DAVVL)

      2,139,456        840,412  

VIP Emerging Markets Series: Service Class (DWVEMS)

      1,406,311        593,475  

VIP Small Cap Value Series: Service Class (DWVSVS)

      5,809,351        3,133,258  

VA Inflation-Protected Securities Portfolio (DFVIPS)

      5,781,750        472,700  

VA International Small Portfolio (DFVIS)

      76,548        243,316  

VA U.S. Targeted Value Portfolio (DFVUTV)

      876,734        410,761  

Stock Index Fund, Inc. - Initial Shares (DSIF)

      69,471,547        50,074,869  

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

      1,271,505        1,025,297  

Global Income Builder VIP - Class A (DSGIBA)

      27,630        3,440  

Floating-Rate Income Fund (ETVFR)

      19,301,495        14,725,747  

Franklin Income Securities Fund - Class 2 (FTVIS2)

      1,339,526        1,215,532  

Rising Dividends Securities Fund - Class 1 (FTVRDI)

      3,817,991        3,199,554  

Small Cap Value Securities Fund - Class 1 (FTVSVI)

      2,179,634        1,081,734  

Small Cap Value Securities Fund - Class 2 (FTVSV2)

      5,064,526        4,099,241  

Mutual Global Discovery Securities Fund - Class 2 (FTVMD2)

      557,178        514,819  

Templeton Developing Markets Securities Fund - Class 2 (FTVDM2)

      380,327        462,718  

Templeton Foreign Securities Fund - Class 1 (TIF)

      37,272        92,149  

Templeton Foreign Securities Fund - Class 2 (TIF2)

      3,417,103        4,380,475  

Templeton Global Bond Securities Fund - Class 2 (FTVGI2)

      904,216        4,267,361  

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

      129,959        177,773  

VIP Trust - Templeton Global Bond VIP Fund: Class 1 (FTVGB1)

      6,337,336        5,606,209  

Van Kampen V.I. Mid Cap Growth Fund - Series I Shares (IVKMG1)

      515,663        1,822,399  

Balanced-Risk Allocation Fund: Series I Shares (IVBRA1)

      1,150,252        351,436  

Mid Cap Value Portfolio: Class 1 (JPMMV1)

      18,727,006        3,130,599  

Small Cap Core Portfolio 1 (JPSCE1)

      52,566        2,853  

Balanced Portfolio: Service Shares (JABS)

      6,637,413        4,413,951  

Enterprise Portfolio: Service Shares (JAMGS)

      5,244,809        369,628  

Flexible Bond Portfolio: Service Shares (JAFBS)

      5,656,916        4,172,577  

Forty Portfolio: Service Shares (JACAS)

      8,050,554        6,900,943  

Global Technology Portfolio: Service Shares (JAGTS)

      2,422,515        2,722,397  

Overseas Portfolio: Service Shares (JAIGS)

      3,643,085        2,742,729  

Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

      875,057        1,477,389  

Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)

      8,125,580        8,853,947  

Lord Abbett Series Fund Inc. - Bond Debenture Portfolio: Class VC (LOVBD)

      2,259,114        283,540  

Lord Abbett Series Fund Inc. - Mid Cap Stock Portfolio: Class VC (LOVMCV)

      18,795        11,089  

Series Fund, Inc. - Total Return Portfolio - Class VC (LOVTRC)

      6,726,509        2,034,740  

Lord Abbett Series Fund Inc. - Short Duration Income Portfolio: Class VC (LOVSDC)

      12,679,774        405,597  

VIT II - MFS Blended Research Core Equity Portfolio- Service Class (MVBRES)

      416,370        535,870  

Var Insurance Trust II - MFS Investors Growth Stock Portfolio: Initial Class (MV2IGI)

      504,582        422,340  

Var Insurance Trust II - MFS Research International Portfolio: Service Class (MV2RIS)

      94,446        270,198  

Variable Insurance Trust - MFS New Discovery Series - Intital Class (MNDIC)

      58,947        137,480  

New Discovery Series - Service Class (MNDSC)

      26,662        289,338  

Value Series - Initial Class (MVFIC)

      3,174,948        1,381,429  

Value Series - Service Class (MVFSC)

      34,310,013        7,536,212  

Variable Insurance Trust II - MFS International Value Portfolio - Service Class (MVIVSC)

      17,811,712        10,744,546  

Core Plus Fixed Income Portfolio - Class I (MSVFI)

      913,337        579,470  

Emerging Markets Debt Portfolio - Class I (MSEM)

      2,971,181        16,126,109  

Global Real Estate Portfolio - Class II (VKVGR2)

      1,171,221        1,693,144  

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

      1,905,950        4,559,243  

Universal Institutional Funds, Inc. - Growth Portfolio - Class I (MSVEG)

      704,204        230,500  

U.S. Real Estate Portfolio - Class I (MSVRE)

      4,413,784        7,521,800  

NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

      829        7  

NVIT Investor Destinations Managed Growth Class I (IDPG)

      56        45,226  

NVIT Cardinal Managed Growth and Income Class I (NCPGI)

      2,629        1,873  

NVIT Cardinal Managed Growth Class I (NCPG)

      29,457        27,358  

NVIT Bond Index Fund Class I (NVBX)

      9,065,747        5,305,378  

NVIT International Index Fund Class I (NVIX)

      11,265,409        5,541,610  

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

      5,364,799        2,983,677  

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

      2,107,847        1,534,367  

American Funds NVIT Bond Fund - Class II (GVABD2)

      603,978        737,314  

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

      1,360,132        1,147,526  

American Funds NVIT Growth Fund - Class II (GVAGR2)

      2,489,845        1,102,197  

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

      946,237        553,456  

Federated NVIT High Income Bond Fund - Class I (HIBF)

      5,459,131        4,969,393  

NVIT Emerging Markets Fund - Class I (GEM)

      2,140,723        1,973,990  

NVIT International Equity Fund - Class I (GIG)

      2,698,729        3,881,713  

Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II (NVIE6)

      3,624        9,141  

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

      994,460        1,222,092  

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

      41,796        58,378  

NVIT Cardinal Aggressive Fund - Class I (NVCRA1)

      1,991,582        1,590,738  

NVIT Cardinal Balanced Fund - Class I (NVCRB1)

      15,096,056        3,331,741  

NVIT Cardinal Capital Appreciation Fund - Class I (NVCCA1)

      2,733,022        2,120,437  

NVIT Cardinal Conservative Fund - Class I (NVCCN1)

      1,452,713        1,579,151  

NVIT Cardinal Moderate Fund - Class I (NVCMD1)

      1,086,222        834,512  

NVIT Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

      1,058,754        555,330  

NVIT Cardinal Moderately Conservative Fund - Class I (NVCMC1)

      1,411,435        1,942,537  

NVIT Core Bond Fund - Class I (NVCBD1)

      1,156,207        481,968  

NVIT Core Plus Bond Fund - Class I (NVLCP1)

      515,449        710,597  

NVIT Nationwide Fund - Class I (TRF)

      17,539,222        21,405,209  

NVIT Government Bond Fund - Class I (GBF)

      7,843,582        9,121,195  

NVIT International Index Fund - Class II (GVIX2)

      308,289        1,175,675  

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

      4,208,916        2,833,030  

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

      125,694        77,631  

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

      127,553        105,581  

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

      6,385,551        2,767,466  

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

      8,066,905        8,895,993  

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

      13,889,722        9,056,397  

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

      4,323,796        3,015,605  

NVIT Mid Cap Index Fund - Class I (MCIF)

      24,440,987        10,739,917  

NVIT Money Market Fund - Class I (SAM)

      17,305,226        18,619,148  

NVIT Money Market Fund - Class V (SAM5)

      115,872,625        135,280,543  

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

      755,722        1,305,204  

NVIT Multi-Manager International Value Fund - Class I (GVDIVI)

      403,633        479,969  

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

      3,654,130        1,730,792  

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

      4,021,054        2,525,320  

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

      6,947,174        4,759,912  

NVIT Multi-Manager Mid Cap Value Fund - Class I (NVMMV1)

      397,461        218,379  

NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)

      2,105,612        1,257,547  

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

      5,234,550        1,748,751  

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

      4,963,595        4,778,766  

NVIT Multi-Manager Small Company Fund - Class I (SCF)

      7,582,402        4,784,300  

NVIT Multi-Sector Bond Fund - Class I (MSBF)

      1,787,143        1,150,470  

NVIT Short Term Bond Fund - Class I (NVSTB1)

      35,842,829        18,513,067  

NVIT Short Term Bond Fund - Class II (NVSTB2)

      223,596        587,881  

NVIT Large Cap Growth Fund - Class I (NVOLG1)

      47,960,517        13,462,269  

Templeton NVIT International Value Fund - Class III (NVTIV3)

      86,834        195,515  

Invesco NVIT Comstock Value Fund - Class I (EIF)

      713,173        1,370,678  

NVIT Real Estate Fund - Class I (NVRE1)

      5,445,753        4,523,585  

Loring Ward NVIT Capital Appreciation Fund - Class P (NVLCAP)

      21,327        14,213  

Loring Ward NVIT Moderate Fund - Class P (NVLMP)

      2,981        1,829  

NVIT Small Cap Index Fund Class II (NVSIX2)

      681,261        77,789  

NVIT S&P 500 Index Fund Class I (GVEX1)

      2,453,890        925,117  

Short Duration Bond Portfolio - I Class Shares (AMTB)

      986,600        761,213  

Guardian Portfolio - I Class Shares (AMGP)

      294,433        104,865  

Mid-Cap Growth Portfolio - I Class Shares (AMCG)

      208,174        484,311  

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)

      159,256        166,080  

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

      175,240        131,802  

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class I (AMRI)

      914,533        597,063  

Socially Responsive Portfolio - I Class Shares (AMSRS)

      128,351        171,818  

TOPS Managed Risk Balanced ETF Portfolio - Class 3 (NOTB3)

      4,010        2,523  

TOPS Managed Risk Growth ETF Portfolio - Class 3 (NOTG3)

      32,167        1,992  

TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

      32,120        1,776  

VPS Growth and Income Portfolio - Class A (ALVGIA)

      5,052,122        3,837,048  

VPS International Value Portfolio - Class A (ALVIVA)

      1,478,113        633,198  

VPS Small/Mid Cap Value Portfolio - Class A (ALVSVA)

      4,732,415        4,939,110  

VP Capital Appreciation Fund - Class I (ACVCA)

      428,360        330,969  

VP Income & Growth Fund - Class I (ACVIG)

      1,058,531        1,676,854  

VP Inflation Protection Fund - Class II (ACVIP2)

      1,273,612        1,641,911  

VP International Fund - Class I (ACVI)

      2,373,375        203,203  

VP Mid Cap Value Fund - Class I (ACVMV1)

      8,100,484        4,896,296  

VP Ultra(R) Fund - Class I (ACVU1)

      95,030        272,801  

VP Value Fund - Class I (ACVV)

      11,691,068        11,480,122  

MidCap Stock Portfolio - Initial Shares (DVMCS)

      528,487        613,960  

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

      22,795,281        13,677,530  

Appreciation Portfolio - Initial Shares (DCAP)

      4,441,496        3,993,036  

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

      293,682        261,970  

International Value Portfolio - Initial Shares (DVIV)

      576,241        1,134,579  

Variable Series II - DWS Small Mid Cap Value VIP - Class B (SVSSVB)

      36,512        34,396  

Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

      10,498        59,118  

Managed Tail Risk Fund II: Primary Shares (FVCA2P)

      62,093        39,486  

Quality Bond Fund II - Primary Shares (FQB)

      1,591,690        2,439,083  

VIP Contrafund(R) Portfolio - Service Class (FCS)

      7,711,713        11,039,495  

VIP Energy Portfolio - Service Class 2 (FNRS2)

      1,515,436        1,344,420  

VIP Equity-Income Portfolio - Service Class (FEIS)

      8,462,651        8,972,485  

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

      314,527        255,231  

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

      10,049,330        4,894,640  

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

      5,072,399        2,128,107  

VIP Freedom Income Fund Portfolio - Service Class (FFINS)

      91,549        368,727  

VIP Growth Opportunities Portfolio - Service Class (FGOS)

      9,683        87,462  

VIP Growth Portfolio - Service Class (FGS)

      12,727,787        8,665,699  

VIP High Income Portfolio - Service Class (FHIS)

      2,245,240        2,559,477  

VIP Index 500 Portfolio - Initial Class (FIP)

      3,878,971        4,939,086  

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

      31,990,529        19,600,568  

VIP Mid Cap Portfolio - Service Class (FMCS)

      5,890,960        9,234,771  

VIP Money Market Portfolio - Initial Class (FMMP)

      11,844,074        2,491,273  

VIP Overseas Portfolio - Service Class (FOS)

      1,221,529        2,851,786  

VIP Value Strategies Portfolio - Service Class (FVSS)

      208,175        477,737  

VIP Fidelity VIP Freedom Fund 2005 Portfolio - Service Class (FF05S)

      200,633        44,884  

VIP Fidelity VIP Freedom Fund 2015 Portfolio - Service Class (FF15S)

      1,491,335        4,110,242  

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class (FF25S)

      6,835,035        3,104,498  

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class (FF40S)

      3,023,998        1,502,654  

Mid Cap Value- Institutional Shares (GVMCE)

      4,126,161        22,384,915  

Goldman Sachs Structured Small Cap Equity Fund (GVCSE)

      538,769        37,903  

VIT Growth Opportunities Fund - Service Shares (GVGOPS)

      824,305        1,014,325  

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

      742        9,123  

ClearBridge Variable Small Cap Growth Portfolio - Class I (SBVSG)

      3,503,366        2,742,163  

Baron Growth Opportunities Fund Service Class (BNCAI)

      1,930,781        3,980,054  

Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

      1,753,518        2,178,656  

Global Securities Fund/VA - Non-Service Shares (OVGS)

      10,159,670        10,312,568  

International Growth Fund/VA - Non-Service Shares (OVIG)

      8,819,237        1,157,557  

Main Street Fund(R)/VA - Non-Service Shares (OVGI)

      5,336,945        2,923,957  

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

      1,036,902        1,371,622  

Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

      2,157,807        2,127,629  

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

      1,069,842        2,643,540  

All Asset Portfolio - Administrative Class (PMVAAA)

      4,636,447        5,327,115  

CommodityRealReturn(R) Strategy Portfolio - Administrative Class (PMVRSA)

      171,040        71,613  

Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)

      808,983        1,473,242  

Long-Term U.S. Government Portfolio - Administrative Class (PMVLGA)

      1,087,667        2,633,350  

Low Duration Portfolio - Administrative Class (PMVLDA)

      11,361,812        22,052,380  

Real Return Portfolio - Administrative Class (PMVRRA)

      13,899,854        29,641,994  

Total Return Portfolio - Administrative Class (PMVTRA)

      23,895,612        31,023,922  

Pioneer Emerging Markets VCT Portfolio - Class I Shares (PIVEMI)

      1,050,642        1,355,592  

Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class I (PIHYB1)

      1,355,978        937,948  

VT Growth & Income Fund: Class IB (PVGIB)

      107,111        173,264  

VT Growth Opportunities Fund: Class IB (PVGOB)

      1,164,462        8,902  

VT International Equity Fund: Class IB (PVTIGB)

      115,162        198,900  

VT Small Cap Value Fund: Class IB (PVTSCB)

      326,464        298,018  

VT Voyager Fund: Class IB (obsolete) (PVTVB)

      151,348        1,452,560  

VI Growth and Income Fund - Series I Shares (ACGI)

      1,942,561        1,285,048  

VI American Franchise Fund - Series I Shares (ACEG)

      150,782        276,658  

VI Value Opportunities Fund - Series I Shares (AVBVI)

      576        9,360  

VI High Yield Fund - Series I Shares (AVHY1)

      3,094,287        3,464,598  

VI International Growth Fund - Series I Shares (AVIE)

      9,547,667        12,678,662  

VI Mid Cap Core Equity Fund: Series I Shares (AVMCCI)

      263,023        328,803  

VI Small Cap Equity Fund - Series I Shares (AVSCE)

      211,061        162,680  

Micro-Cap Portfolio - Investment Class (ROCMC)

      1,677,410        3,483,659  

Variable Fund - Multi-Hedge Strategies (RVARS)

      399,382        208,562  

Equity Income Portfolio - II (TREI2)

      8,235,204        33,268,414  

Health Sciences Portfolio - II (TRHS2)

      2,577,904        11,214,385  

Limited-Term Bond Portfolio (TRLT1)

      13,241,696        21,875,216  

Mid-Cap Growth Portfolio - II (TRMCG2)

      4,533,758        2,267,685  

New America Growth Portfolio (TRNAG1)

      10,496,803        15,755,283  

Personal Strategy Balanced Portfolio (TRPSB1)

      2,327,906        2,142,275  

Blue Chip Growth Portfolio (TRBCGP)

      16,893,247        11,780,362  

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

      747,347        882,316  

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

      9,203,685        10,059,735  

Variable Insurance Fund - Balanced Portfolio (VVB)

      1,801,743        649,497  

Insurance Fund - Capital Growth Portfolio (VVCG)

      2,313,586        1,301,797  

Variable Insurance Fund - Diversified Value Portfolio (VVDV)

      1,701,431        2,380,604  

Variable Insurance Fund - International Portfolio (VVI)

      486,759        1,580,218  

Variable Insurance Fund - Mid-Cap Index Portfolio (VVMCI)

      2,863,316        3,254,021  

Variable Insurance Fund - REIT Index Portfolio (VVREI)

      2,392,705        1,495,285  

Variable Insurance Fund - Short-Term Investment-Grade Portfolio (VVSTC)

      1,117,518        674,291  

Variable Insurance Fund - Small Company Growth Portfolio (VVSCG)

      805,937        505,560  

Variable Insurance Fund - Total Bond Market Index Portfolio (VVHGB)

      3,721,931        1,279,552  

Variable Insurance Portfolios - Asset Strategy (WRASP)

      1,109,264        7,380,771  

Variable Insurance Portfolios - Growth (WRGP)

      3,547,307        4,459,108  

Variable Insurance Portfolios - High Income (WRHIP)

      6,555,799        7,271,248  

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

      1,092,371        3,474,089  

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

      5,822,130        3,458,997  

Variable Insurance Portfolios - Science and Technology (WRSTP)

      3,583,453        4,728,352  

Wells Fargo Variable Trust - VT Discovery Fund: Class 2 (SVDF)

      3,058,906        5,113,036  

Advantage VT Opportunity Fund - Class 2 (SVOF)

      841,633        277,288  

Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)

      1,228,149        2,612,788  

American Century NVIT Growth Fund - Class I (Obsolete) (CAF)

      1,802,068        16,997,552  
  

 

 

     

 

 

  
   $ 1,155,195,606      $ 1,028,051,572  
  

 

 

     

 

 

  

(8) Financial Highlights

The following tabular presentation is a summary of units, unit fair values, contract owners’ equity outstanding and contract expense rates for variable life contracts as of December 31, 2016, and the investment income ratio and total return for each of the periods in the five year period ended December 31, 2016. Total return and investment income ratio for periods with no ending contract owners’ equity were considered to be irrelevant, and therefore are not presented.

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

VPS Dynamic Asset Allocation Portfolio - Class A (ALVDAA)

 

2016         0.00%       2,379         $ 12.32     $ 29,320       0.53%           3.59%  
2015         0.00%       5,447           11.90       64,806       0.87%           -1.09%  
2014         0.00%       3,808           12.03       45,805       0.26%           4.45%  
2013         0.00%       15,430           11.52       177,696       0.77%           12.31%  
2012         0.00%       7           10.25       72       0.15%           2.54% **** 

VP Inflation Protection Fund - Class I (ACVIP1)

 

2016     0.00%       to       0.25%       1,956,661       10.16       to       9.65       18,906,113       2.18%       4.71%       to       4.44%  
2015     0.00%       to       0.25%       592,890       9.71       to       9.24       5,480,549       2.52%       -2.28%       to       -2.52%  
2014     0.00%       to       0.25%       89,451       9.93       to       9.47       849,750       1.51%       3.58%       to       3.32%  
2013     0.20%       to       0.25%       43,953       9.18       to       9.17       403,043       1.16%       -8.40%       to       -8.44%  

Asset Allocation Fund - Class 2 (AMVAA2)

 

2016     0.00%       to       0.25%       511,756       16.20       to       15.83       8,143,235       1.78%       9.41%       to       9.14%  
2015     0.00%       to       0.25%       354,629       14.80       to       14.50       5,167,132       1.79%       1.40%       to       1.15%  
2014     0.00%       to       0.25%       219,500       14.60       to       14.34       3,163,145       1.29%       5.40%       to       5.13%  
2013     0.00%       to       0.25%       293,121       13.85       to       13.64       4,006,660       1.50%       23.69%       to       23.38%  
2012     0.00%       to       0.25%       250,210       11.20       to       11.05       2,771,221       2.21%       16.19%       to       15.90%  

Bond Fund - Class 2 (AMVBD2)

 

2016     0.00%       to       0.20%       5,580,079       12.98       to       12.75       71,783,173       1.68%       2.94%       to       2.74%  
2015     0.00%       to       0.25%       5,633,226       12.61       to       12.35       70,464,503       1.69%       0.27%       to       0.02%  
2014     0.00%       to       0.25%       5,686,802       12.58       to       12.35       71,011,198       6.95%       5.28%       to       5.02%  
2013     0.00%       to       0.25%       6,226       11.95       to       11.76       74,024       1.11%       -2.16%       to       -2.40%  
2012     0.00%       to       0.25%       19,064       12.21       to       12.05       232,400       1.94%       5.37%       to       5.11%  

Global Small Capitalization Fund - Class 2 (AMVGS2)

 

2016     0.00%       to       0.25%       103,367       12.77       to       12.49       1,294,587       0.25%       2.10%       to       1.84%  
2015     0.00%       to       0.25%       125,623       12.51       to       12.27       1,544,166       0.00%       0.27%       to       0.02%  
2014     0.00%       to       0.25%       204,209       12.48       to       12.26       2,511,188       0.12%       2.12%       to       1.87%  
2013     0.00%       to       0.25%       202,172       12.22       to       12.04       2,439,091       0.98%       28.28%       to       27.96%  
2012     0.00%       to       0.25%       176,306       9.53       to       9.41       1,663,017       1.28%       18.18%       to       17.88%  

Growth Fund - Class 2 (AMVGR2)

 

2016     0.00%       to       0.25%       1,038,111       17.38       to       16.99       17,654,348       0.78%       9.49%       to       9.21%  
2015     0.00%       to       0.25%       1,120,259       15.87       to       15.56       17,442,134       0.52%       6.86%       to       6.59%  
2014     0.00%       to       0.25%       1,698,415       14.85       to       14.59       24,825,384       0.80%       8.51%       to       8.24%  
2013     0.00%       to       0.25%       1,752,402       13.69       to       13.48       23,660,929       0.96%       30.10%       to       29.78%  
2012     0.20%       to       0.25%       1,723,465       10.42       to       10.39       17,928,302       0.83%       17.65%       to       17.60%  

International Fund - Class 2 (AMVI2)

 

2016     0.00%       to       0.25%       574,103       10.84       to       10.68       6,141,890       1.46%       3.53%       to       3.27%  
2015     0.00%       to       0.25%       506,463       10.47       to       10.35       5,243,130       1.60%       -4.53%       to       -4.76%  
2014     0.00%       to       0.25%       430,497       10.96       to       10.86       4,678,454       1.59%       -2.65%       to       -2.90%  
2013     0.00%       to       0.25%       312,711       11.26       to       11.19       3,499,457       1.63%       21.63%       to       21.33%  
2012     0.00%       to       0.25%       210,084       9.26       to       9.22       1,937,447       2.11%       17.91%       to       17.61%  

New World Fund - Class 2 (AMVNW2)

 

2016     0.00%       to       0.25%       36,783       10.40       to       10.39       382,165       1.16%       4.03%       to       3.86% **** 

Variable Series Funds, Inc. - BlackRock High Yield V.I. Fund- Class I (BRVHYI)

 

2016     0.00%       to       0.25%       468,168       10.59       to       10.53       4,940,997       5.47%       12.92%       to       12.64%  
2015     0.10%       to       0.25%       397,942       9.37       to       9.35       3,724,985       4.71%       -3.70%       to       -3.84%  
2014     0.25%           51,392       9.72           499,545       1.36%           -2.80% **** 

Large Cap Core V.I. Fund - Class II (MLVLC2)

 

2016     0.00%       to       0.25%       76,545       22.35       to       21.71       1,663,555       0.99%       10.41%       to       10.13%  
2015     0.00%       to       0.25%       97,677       20.24       to       19.71       1,927,425       0.60%       0.34%       to       0.09%  
2014     0.00%       to       0.25%       145,570       20.18       to       19.69       2,885,881       0.79%       12.19%       to       11.91%  
2013     0.00%       to       0.25%       154,703       17.98       to       17.60       2,736,351       0.97%       33.32%       to       32.99%  
2012     0.00%       to       0.25%       182,994       13.49       to       13.23       2,428,694       1.38%       12.59%       to       12.30%  

Global Allocation V.I. Fund - Class II (MLVGA2)

 

2016         0.00%       530,848           17.10       9,079,551       1.09%           3.96%  
2015         0.00%       588,721           16.45       9,686,094       0.95%           -0.87%  
2014         0.00%       665,128           16.60       11,039,090       2.12%           1.97%  
2013         0.00%       640,899           16.28       10,431,814       1.07%           14.55%  
2012         0.00%       680,130           14.21       9,664,120       1.57%           10.14%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

VP S&P 500 Index Portfolio (CVSPIP)

 

2016         0.25%       57,324           12.37       709,205       1.43%           11.30%  
2015         0.25%       49,793           11.12       553,494       0.07%           0.73%  
2014         0.10%       40,910           11.05       451,933       3.55%           10.47% **** 

Value Portfolio (DAVVL)

 

2016     0.00%       to       0.25%       243,210       15.08       to       14.74       3,623,452       1.51%       11.88%       to       11.60%  
2015     0.00%       to       0.25%       187,283       13.48       to       13.21       2,503,302       0.78%       1.60%       to       1.34%  
2014     0.00%       to       0.25%       219,468       13.27       to       13.03       2,888,623       0.94%       6.06%       to       5.79%  
2013     0.00%       to       0.25%       214,206       12.51       to       12.32       2,664,799       0.81%       33.43%       to       33.09%  
2012     0.00%       to       0.25%       298,582       9.38       to       9.25       2,782,221       1.78%       13.08%       to       12.80%  

VIP Emerging Markets Series: Service Class (DWVEMS)

 

2016     0.00%       to       0.25%       308,163       10.14       to       10.02       3,089,001       0.73%       13.68%       to       13.40%  
2015     0.20%       to       0.25%       231,836       8.85       to       8.84       2,049,470       0.53%       -14.94%       to       -14.99%  
2014     0.00%       to       0.25%       110,505       10.46       to       10.39       1,148,980       0.38%       -8.26%       to       -8.49%  
2013     0.00%       to       0.25%       37,049       11.41       to       11.36       420,861       0.19%       9.86%       to       9.58%  

VIP Small Cap Value Series: Service Class (DWVSVS)

 

2016     0.00%       to       0.25%       1,068,310       17.66       to       17.41       18,632,616       0.71%       31.08%       to       30.76%  
2015     0.00%       to       0.25%       980,158       13.47       to       13.31       13,060,799       0.50%       -6.46%       to       -6.70%  
2014     0.00%       to       0.25%       1,035,605       14.40       to       14.27       14,786,804       0.29%       5.62%       to       5.35%  
2013     0.00%       to       0.25%       804,104       13.63       to       13.54       10,896,188       0.55%       33.17%       to       32.84%  
2012     0.00%       to       0.25%       391,672       10.24       to       10.20       3,994,444       0.21%       13.63%       to       13.35%  

VA Inflation-Protected Securities Portfolio (DFVIPS)

 

2016     0.00%       to       0.25%       520,430       9.98       to       9.84       5,121,644       2.57%       -0.19%       to       -1.63% **** 

VA International Small Portfolio (DFVIS)

 

2016     0.20%       to       0.25%       85,815       10.22       to       10.22       877,242       2.28%       6.02%       to       5.97%  
2015     0.20%       to       0.25%       105,953       9.64       to       9.64       1,021,665       2.07%       -3.56       to       -3.60% **** 

VA U.S. Targeted Value Portfolio (DFVUTV)

 

2016     0.20%       to       0.25%       239,703       11.64       to       11.63       2,789,935       1.09%       27.24%       to       27.17%  
2015     0.20%       to       0.25%       215,294       9.15       to       9.15       1,969,559       1.32%       -8.51%       to       -8.54% **** 

Stock Index Fund, Inc. - Initial Shares (DSIF)

 

2016     0.00%       to       0.25%       19,688,978       31.44       to       21.64       478,455,050       2.03%       11.71%       to       11.43%  
2015     0.00%       to       0.25%       19,872,339       28.15       to       19.42       433,286,156       1.84%       1.11%       to       0.85%  
2014     0.00%       to       0.25%       19,703,250       27.84       to       19.25       428,953,663       1.78%       13.42%       to       13.14%  
2013     0.00%       to       0.25%       18,495,758       24.54       to       17.02       359,230,963       1.87%       32.03%       to       31.70%  
2012     0.00%       to       0.25%       18,671,915       18.59       to       12.92       275,529,192       2.05%       15.74%       to       15.45%  

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

 

2016     0.00%       to       0.25%       461,676       24.91       to       16.00       11,294,775       1.28%       10.37%       to       10.10%  
2015     0.00%       to       0.25%       503,710       22.57       to       14.53       11,176,410       1.06%       -3.19%       to       -3.44%  
2014     0.00%       to       0.25%       579,590       23.32       to       15.05       13,108,017       1.04%       13.45%       to       13.17%  
2013     0.00%       to       0.25%       609,225       20.55       to       13.30       12,228,151       1.23%       34.34%       to       34.01%  
2012     0.00%       to       0.25%       657,466       15.30       to       9.93       9,812,092       0.80%       11.97%       to       11.69%  

Global Income Builder VIP - Class A (DSGIBA)

 

2016         0.00%       2,350           10.41       24,457       0.00%           4.07% **** 

Floating-Rate Income Fund (ETVFR)

 

2016     0.00%       to       0.25%       5,996,803       12.06       to       11.89       71,736,301       3.48%       8.95%       to       8.67%  
2015     0.00%       to       0.25%       5,769,523       11.07       to       10.94       63,451,455       3.33%       -0.99%       to       -1.24%  
2014     0.00%       to       0.25%       6,022,601       11.18       to       11.08       66,999,384       3.22%       0.57%       to       0.32%  
2013     0.00%       to       0.25%       2,302,534       11.12       to       11.04       25,512,559       3.51%       3.85%       to       3.59%  
2012     0.10%       to       0.25%       1,438,087       10.69       to       10.66       15,367,260       3.38%       7.22%       to       7.06%  

Franklin Income Securities Fund - Class 2 (FTVIS2)

 

2016         0.00%       369,466           18.22       6,732,869       5.10%           14.02%  
2015         0.00%       377,928           15.98       6,040,094       4.68%           -7.05%  
2014         0.00%       390,265           17.20       6,710,629       4.91%           4.62%  
2013         0.00%       391,706           16.44       6,438,224       6.32%           13.94%  
2012         0.00%       397,235           14.43       5,730,247       6.26%           12.65%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Rising Dividends Securities Fund - Class 1 (FTVRDI)

 

2016         0.00%       517,880           32.12       16,634,002       1.58%           16.33%  
2015         0.00%       570,589           27.61       15,754,609       1.64%           -3.42%  
2014         0.00%       599,977           28.59       17,151,918       1.53%           9.01%  
2013         0.00%       706,879           26.23       18,538,455       1.74%           30.05%  
2012         0.00%       689,703           20.17       13,908,387       1.82%           12.18%  

Small Cap Value Securities Fund - Class 1 (FTVSVI)

 

2016         0.00%       245,509           44.29       10,874,493       1.03%           30.54%  
2015         0.00%       255,164           33.93       8,658,290       0.91%           -7.18%  
2014         0.00%       292,511           36.56       10,693,748       0.83%           0.88%  
2013         0.00%       314,978           36.24       11,414,310       1.50%           36.50%  
2012         0.00%       363,138           26.55       9,640,363       1.03%           18.75%  

Small Cap Value Securities Fund - Class 2 (FTVSV2)

 

2016     0.00%       to       0.25%       416,003       27.11       to       26.33       10,975,714       0.81%       30.19%       to       29.86%  
2015     0.00%       to       0.25%       436,021       20.83       to       20.28       8,856,820       0.65%       -7.39%       to       -7.62%  
2014     0.00%       to       0.25%       512,783       22.49       to       21.95       11,301,870       0.63%       0.57%       to       0.32%  
2013     0.00%       to       0.25%       465,556       22.36       to       21.88       10,229,704       1.33%       36.24%       to       35.90%  
2012     0.00%       to       0.25%       404,795       16.41       to       16.10       6,539,867       0.80%       18.39%       to       18.09%  

Mutual Global Discovery Securities Fund - Class 2 (FTVMD2)

 

2016     0.00%       to       0.25%       136,852       15.90       to       15.54       2,163,040       1.69%       12.18%       to       11.90%  
2015     0.00%       to       0.25%       147,343       14.17       to       13.89       2,077,541       3.80%       -3.65%       to       -3.89%  
2014     0.00%       to       0.25%       32,122       14.71       to       14.45       464,392       2.43%       5.71%       to       5.44%  
2013         0.25%       20,950           13.71       287,147       2.67%           27.30%  
2012         0.25%       13,771           10.77       148,276       1.98%           13.07%  

Templeton Developing Markets Securities Fund - Class 2 (FTVDM2)

 

2016         0.00%       271,041           8.90       2,413,106       0.80%           17.44%  
2015         0.00%       285,175           7.58       2,161,899       2.16%           -19.60%  
2014         0.00%       338,402           9.43       3,190,883       1.50%           -5.71% **** 

Templeton Foreign Securities Fund - Class 1 (TIF)

 

2016         0.00%       38,500           25.74       990,896       2.16%           7.49%  
2015         0.00%       42,432           23.94       1,016,000       3.58%           -6.31%  
2014         0.00%       48,081           25.56       1,228,764       2.07%           -10.89%  
2013         0.00%       53,511           28.68       1,534,588       2.56%           23.27%  
2012         0.00%       58,522           23.26       1,361,447       3.25%           18.60%  

Templeton Foreign Securities Fund - Class 2 (TIF2)

 

2016     0.00%       to       0.25%       1,063,433       23.54       to       22.71       24,424,763       1.95%       7.18%       to       6.91%  
2015     0.00%       to       0.25%       1,146,428       21.96       to       21.24       24,618,620       3.22%       -6.49%       to       -6.73%  
2014     0.00%       to       0.25%       1,087,231       23.49       to       22.77       25,006,807       1.97%       -11.13%       to       -11.35%  
2013     0.10%       to       0.25%       642,739       26.13       to       25.69       16,554,377       2.30%       22.85%       to       22.66%  
2012     0.10%       to       0.25%       628,537       21.27       to       20.94       13,199,367       3.00%       18.11%       to       17.94%  

Templeton Global Bond Securities Fund - Class 2 (FTVGI2)

 

2016     0.00%       to       0.25%       457,762       17.09       to       16.70       7,800,411       0.00%       2.94%       to       2.68%  
2015     0.00%       to       0.25%       662,999       16.60       to       16.26       10,987,604       7.60%       -4.30%       to       -4.54%  
2014     0.00%       to       0.25%       774,609       17.35       to       17.04       13,406,161       3.71%       1.83%       to       1.58%  
2013     0.00%       to       0.25%       2,511,603       17.04       to       16.77       42,440,610       4.74%       1.63%       to       1.38%  
2012     0.00%       to       0.25%       2,363,034       16.77       to       16.55       39,360,480       5.98%       15.07%       to       14.78%  

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

 

2016         0.00%       44,251           14.67       649,006       3.82%           13.18%  
2015         0.00%       51,295           12.96       664,708       2.92%           -6.21%  
2014         0.00%       53,635           13.82       741,071       2.78%           2.85%  
2013         0.00%       50,080           13.43       672,789       11.86%           23.77%  
2012         0.00%       35,375           10.85       383,969       2.65%           15.33%  

VIP Trust - Templeton Global Bond VIP Fund: Class 1 (FTVGB1)

 

2016     0.00%       to       0.25%       1,451,430       11.12       to       9.93       14,597,838       0.00%       3.21%       to       2.95%  
2015     0.00%       to       0.25%       1,372,392       10.78       to       9.65       13,399,403       7.61%       -4.10%       to       -4.34%  
2014     0.00%       to       0.25%       1,178,165       11.24       to       10.08       11,985,782       4.04%       2.12%       to       0.85% **** 

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Van Kampen V.I. Mid Cap Growth Fund - Series I Shares (IVKMG1)

 

2016     0.00%       to       0.25%       228,597       14.83       to       14.66       3,383,296       0.00%       0.76%       to       0.50%  
2015     0.00%       to       0.25%       345,418       14.72       to       14.59       5,068,137       0.00%       1.21%       to       0.95%  
2014     0.00%       to       0.25%       341,263       14.55       to       14.45       4,953,394       0.00%       8.04%       to       7.77%  
2013     0.00%       to       0.25%       321,052       13.47       to       13.41       4,317,352       0.41%       37.01%       to       36.67%  
2012     0.00%       to       0.25%       341,791       9.83       to       9.81       3,357,388       0.00%       -1.72%       to       -1.89% **** 

Balanced-Risk Allocation Fund: Series I Shares (IVBRA1)

 

2016         0.00%       134,610           11.04       1,486,483       0.47%           11.64%  
2015         0.00%       62,732           9.89       620,517       4.97%           -4.10%  
2014         0.00%       38,475           10.31       396,848       0.00%           3.14% **** 

Mid Cap Value Portfolio: Class 1 (JPMMV1)

 

2016     0.00%       to       0.25%       1,056,953       32.80       to       31.78       33,768,491       0.66%       14.69%       to       14.41%  
2015     0.00%       to       0.25%       573,578       28.60       to       27.77       16,060,386       0.94%       -2.66%       to       -2.90%  
2014     0.00%       to       0.25%       372,474       29.38       to       28.60       10,699,926       0.71%       15.11%       to       14.82%  
2013     0.00%       to       0.25%       258,597       25.52       to       24.91       6,466,290       0.96%       32.30%       to       31.97%  
2012     0.00%       to       0.25%       99,517       19.29       to       18.88       1,885,985       0.28%       20.38%       to       20.08%  

Small Cap Core Portfolio 1 (JPSCE1)

 

2016         0.25%       9,466           11.10       105,109       0.47%           19.91%  
2015         0.25%       4,684           9.26       43,373       0.00%           -7.40% **** 

Balanced Portfolio: Service Shares (JABS)

 

2016     0.00%       to       0.25%       1,000,252       28.86       to       27.84       28,132,139       1.98%       4.32%       to       4.06%  
2015     0.00%       to       0.25%       947,970       27.66       to       26.76       25,570,430       1.68%       0.41%       to       0.16%  
2014     0.00%       to       0.25%       933,751       27.55       to       26.71       25,164,067       1.54%       8.24%       to       7.97%  
2013     0.00%       to       0.25%       821,725       25.45       to       24.74       20,512,662       2.01%       19.80%       to       19.50%  
2012     0.00%       to       0.25%       703,225       21.24       to       20.70       14,705,391       2.66%       13.37%       to       13.09%  

Enterprise Portfolio: Service Shares (JAMGS)

 

2016     0.00%       to       0.25%       457,212       10.79       to       10.77       4,926,666       0.40%       7.90%       to       7.72% **** 

Flexible Bond Portfolio: Service Shares (JAFBS)

 

2016     0.00%       to       0.25%       1,347,630       10.32       to       10.26       13,834,191       2.43%       2.22%       to       1.97%  
2015     0.00%       to       0.25%       1,234,000       10.09       to       10.06       12,417,813       2.23%       -0.06%       to       -0.31%  
2014     0.20%       to       0.25%       435,927       10.09           4,399,676       1.29%           0.92% **** 

Forty Portfolio: Service Shares (JACAS)

 

2016     0.00%       to       0.25%       1,996,099       20.83       to       19.97       41,096,683       0.88%       1.94%       to       1.69%  
2015     0.00%       to       0.25%       2,232,703       20.43       to       19.63       45,096,682       1.25%       11.94%       to       11.66%  
2014     0.00%       to       0.25%       2,473,108       18.25       to       17.58       44,660,750       0.03%       8.47%       to       8.20%  
2013     0.00%       to       0.25%       2,806,731       16.83       to       16.25       46,697,005       0.59%       30.89%       to       30.56%  
2012     0.00%       to       0.25%       3,302,617       12.86       to       12.45       42,001,099       0.55%       23.86%       to       23.55%  

Global Technology Portfolio: Service Shares (JAGTS)

 

2016     0.00%       to       0.25%       1,367,724       11.03       to       10.57       14,991,999       0.09%       13.85%       to       13.57%  
2015     0.00%       to       0.25%       1,452,572       9.69       to       9.31       14,007,986       0.81%       4.65%       to       4.38%  
2014     0.00%       to       0.25%       1,666,220       9.26       to       8.92       15,350,042       0.00%       9.35%       to       9.07%  
2013     0.00%       to       0.25%       1,724,013       8.47       to       8.18       14,513,340       0.00%       35.39%       to       35.05%  
2012     0.00%       to       0.25%       1,913,179       6.25       to       6.06       11,896,992       0.00%       19.15%       to       18.85%  

Overseas Portfolio: Service Shares (JAIGS)

 

2016     0.00%       to       0.25%       1,506,768       13.02       to       12.48       19,431,410       5.11%       -6.71%       to       -6.94%  
2015     0.00%       to       0.25%       1,556,610       13.95       to       13.41       21,561,467       0.48%       -8.80%       to       -9.03%  
2014     0.00%       to       0.25%       1,927,784       15.30       to       14.74       29,256,435       5.77%       -12.10%       to       -12.32%  
2013     0.00%       to       0.25%       2,331,866       17.41       to       16.81       40,211,611       3.05%       14.28%       to       14.00%  
2012     0.00%       to       0.25%       2,835,962       15.23       to       14.75       42,805,297       0.69%       13.18%       to       12.90%  

Perkins Mid Cap Value Portfolio: Service Shares (JAMVS)

 

2016     0.00%       to       0.25%       82,367       17.60       to       17.31       1,432,096       0.82%       18.76%       to       18.47%  
2015     0.00%       to       0.25%       135,681       14.82       to       14.61       1,988,712       1.06%       -3.69%       to       -3.93%  
2014     0.00%       to       0.25%       128,064       15.39       to       15.21       1,952,405       3.38%       8.44%       to       8.17%  
2013     0.00%       to       0.25%       135,589       14.19       to       14.06       1,908,778       1.00%       25.81%       to       25.49%  
2012     0.00%       to       0.25%       189,721       11.28       to       11.21       2,127,531       0.89%       10.79%       to       10.51%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)

 

2016     0.00%       to       0.25%       3,028,245       10.38       to       10.21       31,006,169       1.04%       20.78%       to       20.48%  
2015     0.00%       to       0.25%       3,088,800       8.59       to       8.47       26,233,081       1.29%       -20.05%       to       -20.25%  
2014     0.00%       to       0.25%       2,531,668       10.75       to       10.62       26,936,682       1.81%       -4.64%       to       -4.87%  
2013     0.00%       to       0.25%       2,130,245       11.27       to       11.17       23,822,313       1.47%       -1.24%       to       -1.49%  
2012     0.00%       to       0.25%       1,981,197       11.41       to       11.34       22,485,704       1.71%       22.05%       to       21.75%  

Lord Abbett Series Fund Inc. - Bond Debenture Portfolio: Class VC (LOVBD)

 

2016     0.20%       to       0.25%       226,991       11.11       to       11.09       2,518,441       5.09%       11.91%       to       11.85%  
2015     0.20%       to       0.25%       30,871       9.93       to       9.92       306,229       8.70%       -1.73%       to       -1.78%  

Lord Abbett Series Fund Inc. - Mid Cap Stock Portfolio: Class VC (LOVMCV)

 

2016     0.00%       to       0.25%       5,533       21.96       to       21.33       118,289       0.51%       16.39%       to       16.10%  
2015     0.00%       to       0.25%       5,441       18.87       to       18.37       100,210       0.10%       -3.79%       to       -4.03%  
2014     0.00%       to       0.25%       57,274       19.61       to       19.15       1,101,297       0.34%       11.53%       to       11.25%  
2013     0.00%       to       0.25%       84,220       17.59       to       17.21       1,455,733       0.44%       30.32%       to       29.99%  
2012     0.00%       to       0.25%       83,197       13.49       to       13.24       1,106,163       0.77%       14.54%       to       14.26%  

Series Fund, Inc. - Total Return Portfolio - Class VC (LOVTRC)

 

2016     0.00%       to       0.25%       1,122,526       10.24       to       10.20       11,458,058       3.23%       4.26%       to       4.00%  
2015     0.00%       to       0.25%       696,348       9.82       to       9.81       6,830,955       6.21%       -1.76%       to       -1.93% **** 

Lord Abbett Series Fund Inc. - Short Duration Income Portfolio: Class VC (LOVSDC)

 

2016     0.20%       to       0.25%       1,181,419       10.14       to       10.14       11,980,773       4.09%       1.44%       to       1.40% **** 

VIT II - MFS Blended Research Core Equity Portfolio- Service Class (MVBRES)

 

2016     0.20%       to       0.25%       56,347       11.98       to       11.96       673,978       1.20%       7.96%       to       7.91%  
2015     0.20%       to       0.25%       74,067       11.09       to       11.08       821,115       2.15%       0.67%       to       0.62%  

Var Insurance Trust II - MFS Investors Growth Stock Portfolio: Initial Class (MV2IGI)

 

2016         0.00%       271,340           10.46       2,837,846       0.60%           6.08%  
2015         0.00%       297,791           9.86       2,936,113       0.50%           -1.40% **** 

Var Insurance Trust II - MFS Research International Portfolio: Service Class (MV2RIS)

 

2016     0.20%       to       0.25%       287,386           9.05       2,599,441       1.34%           -1.16%  
2015     0.00%       to       0.25%       310,021       9.17       to       9.15       2,837,301       1.83%       -8.31%       to       -8.49% **** 

Variable Insurance Trust - MFS New Discovery Series - Intital Class (MNDIC)

 

2016         0.00%       23,315           14.51       338,410       0.00%           9.05%  
2015         0.00%       30,567           13.31       406,846       0.00%           -1.89%  
2014         0.00%       39,384           13.57       534,273       0.00%           -7.26%  
2013         0.00%       54,531           14.63       797,640       0.00%           41.52%  
2012         0.00%       7,796           10.34       80,579       0.00%           3.36% **** 

New Discovery Series - Service Class (MNDSC)

 

2016     0.20%       to       0.25%       5,578       14.22       to       14.18       79,121       0.00%       8.58%       to       8.53%  
2015     0.00%       to       0.25%       27,229       13.19       to       13.07       356,357       0.00%       -2.15%       to       -2.39%  
2014     0.00%       to       0.25%       81,742       13.48       to       13.39       1,095,280       0.00%       -7.49%       to       -7.72%  
2013     0.00%       to       0.25%       148,553       14.57       to       14.51       2,155,892       0.00%       41.22%       to       40.86%  
2012     0.25%           65,112           10.30       670,683       0.00%           3.00% **** 

Value Series - Initial Class (MVFIC)

 

2016         0.00%       332,771           36.04       11,991,713       2.16%           14.09%  
2015         0.00%       313,122           31.59       9,890,222       2.29%           -0.74%  
2014         0.00%       314,764           31.82       10,015,870       1.51%           10.51%  
2013         0.00%       368,819           28.79       10,619,793       1.21%           35.89%  
2012         0.00%       394,370           21.19       8,356,622       1.70%           16.26%  

Value Series - Service Class (MVFSC)

 

2016     0.00%       to       0.25%       3,786,227       17.49       to       17.09       64,920,421       2.00%       13.78%       to       13.49%  
2015     0.00%       to       0.25%       2,395,774       15.38       to       15.06       36,194,371       2.12%       -0.93%       to       -1.18%  
2014     0.00%       to       0.25%       1,817,807       15.52       to       15.24       27,779,416       1.33%       10.20%       to       9.93%  
2013     0.00%       to       0.25%       2,108,924       14.08       to       13.86       29,309,020       1.02%       35.59%       to       35.26%  
2012     0.00%       to       0.25%       2,084,955       10.39       to       10.25       21,406,037       1.48%       15.88%       to       15.59%  

Variable Insurance Trust II - MFS International Value Portfolio - Service Class (MVIVSC)

 

2016     0.00%       to       0.25%       3,598,366       23.27       to       22.83       82,415,948       1.15%       3.84%       to       3.58%  
2015     0.00%       to       0.25%       3,393,304       22.41       to       22.04       74,992,713       1.81%       6.32%       to       6.05%  
2014     0.00%       to       0.25%       2,912,540       21.07       to       20.78       60,625,656       1.84%       1.13%       to       0.88%  
2013     0.00%       to       0.25%       2,760,169       20.84       to       20.60       56,931,951       1.39%       27.63%       to       27.31%  
2012     0.00%       to       0.25%       2,528,785       16.33       to       16.18       40,955,451       1.59%       15.93%       to       15.64%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Core Plus Fixed Income Portfolio - Class I (MSVFI)

 

2016         0.00%       118,983           16.83       2,002,670       2.08%           6.11%  
2015         0.00%       101,355           15.86       1,607,721       3.38%           -0.65%  
2014         0.00%       107,604           15.97       1,718,027       2.84%           7.85%  
2013         0.00%       119,123           14.80       1,763,427       3.52%           -0.32%  
2012         0.00%       159,977           14.85       2,375,733       4.54%           9.44%  

Emerging Markets Debt Portfolio - Class I (MSEM)

 

2016     0.00%       to       0.25%       507,033       36.45       to       35.05       21,693,860       6.88%       10.55%       to       10.28%  
2015     0.00%       to       0.25%       826,783       32.97       to       31.78       33,218,941       5.22%       -1.12%       to       -1.36%  
2014     0.00%       to       0.25%       955,142       33.35       to       32.22       38,169,060       5.48%       2.93%       to       2.67%  
2013     0.00%       to       0.25%       985,279       32.40       to       31.39       38,132,292       4.05%       -8.75%       to       -8.98%  
2012     0.00%       to       0.25%       977,094       35.50       to       34.48       41,041,916       2.86%       17.96%       to       17.67%  

Global Real Estate Portfolio - Class II (VKVGR2)

 

2016     0.00%       to       0.25%       422,599       11.76       to       11.49       4,870,267       1.40%       3.12%       to       2.86%  
2015     0.00%       to       0.25%       471,131       11.40       to       11.17       5,270,760       2.30%       -1.42%       to       -1.66%  
2014     0.00%       to       0.25%       421,696       11.57       to       11.36       4,797,159       0.69%       13.85%       to       13.57%  
2013     0.00%       to       0.25%       290,891       10.16       to       10.00       2,913,382       3.58%       2.63%       to       2.38%  
2012     0.00%       to       0.25%       242,254       9.90       to       9.77       2,370,646       0.54%       29.94%       to       29.62%  

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

 

2016     0.00%       to       0.25%       372,666       15.50       to       14.86       5,557,051       0.00%       -8.78%       to       -9.01%  
2015     0.00%       to       0.25%       561,751       16.99       to       16.34       9,220,353       0.00%       -5.90%       to       -6.13%  
2014     0.00%       to       0.25%       758,843       18.05       to       17.40       13,267,348       0.00%       1.97%       to       1.71%  
2013     0.00%       to       0.25%       785,039       17.71       to       17.11       13,482,809       0.37%       37.49%       to       37.14%  
2012     0.00%       to       0.25%       900,392       12.88       to       12.48       11,269,895       0.00%       8.69%       to       8.42%  

Universal Institutional Funds, Inc. - Growth Portfolio - Class I (MSVEG)

 

2016     0.00%       to       0.25%       81,298       20.08       to       19.62       1,601,538       0.00%       -1.64%       to       -1.88%  
2015     0.00%       to       0.25%       69,285       20.41       to       20.00       1,390,107       0.00%       12.24%       to       11.96%  
2014     0.00%       to       0.25%       71,574       18.19       to       17.86       1,280,698       0.00%       6.36%       to       6.09%  
2013     0.00%       to       0.25%       93,010       17.10       to       16.83       1,566,998       0.53%       48.07%       to       47.70%  
2012     0.00%       to       0.25%       135,128       11.55       to       11.40       1,540,514       0.00%       14.38%       to       14.09%  

U.S. Real Estate Portfolio - Class I (MSVRE)

 

2016     0.10%       to       0.25%       338,494       64.16       to       51.21       18,264,129       1.38%       6.71%       to       6.55%  
2015     0.10%       to       0.25%       402,965       60.13       to       48.07       20,329,045       1.35%       2.07%       to       1.92%  
2014     0.10%       to       0.25%       417,956       58.91       to       47.16       20,424,278       1.39%       29.59%       to       29.40%  
2013     0.10%       to       0.25%       453,779       45.46       to       36.45       16,994,730       1.13%       1.95%       to       1.80%  
2012     0.10%       to       0.25%       660,510       44.59       to       35.80       24,416,983       0.84%       15.72%       to       15.55%  

NVIT Investor Destinations Managed Growth and Income Class I (IDPGI)

 

2016         0.00%       77           10.47       806       12.37%           5.94%  
2014         0.00%       1           10.20       10       2.52%           1.96% **** 

NVIT Investor Destinations Managed Growth Class I (IDPG)

 

2015         0.00%       4,397           9.77       42,952       1.83%           -3.71%  

NVIT Cardinal Managed Growth and Income Class I (NCPGI)

 

2016         0.00%       78           10.31       804       0.88%           5.74%  

NVIT Cardinal Managed Growth Class I (NCPG)

 

2016         0.00%       4,715           10.23       48,251       3.18%           6.40%  
2015         0.00%       4,610           9.62       44,339       1.34%           -4.62%  
2014         0.00%       4,296           10.08       43,319       3.21%           0.84% **** 

NVIT Bond Index Fund Class I (NVBX)

 

2016     0.00%       to       0.25%       9,423,378       10.53       to       10.46       98,726,317       2.31%       2.26%       to       2.01%  
2015     0.00%       to       0.25%       9,294,873       10.29       to       10.25       95,391,912       2.32%       0.14%       to       -0.11%  
2014     0.00%       to       0.25%       5,645,631       10.28       to       10.26       57,954,008       3.92%       2.78%       to       2.61% **** 

NVIT International Index Fund Class I (NVIX)

 

2016     0.00%       to       0.25%       2,805,657       9.19       to       9.13       25,664,925       3.07%       0.92%       to       0.67%  
2015     0.00%       to       0.25%       2,225,659       9.11       to       9.07       20,212,790       3.36%       -0.96%       to       -1.21%  
2014     0.00%       to       0.25%       1,245,179       9.20       to       9.18       11,440,668       2.49%       -8.01%       to       -8.16% **** 

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

 

2016         0.00%       1,455,365           28.30       41,186,313       2.38%           20.44%  
2015         0.00%       1,546,350           23.50       36,335,010       2.39%           -4.28%  
2014         0.00%       1,667,165           24.55       40,923,361       2.00%           13.12%  
2013         0.00%       1,832,139           21.70       39,757,407       1.86%           31.90%  
2012         0.00%       1,980,422           16.45       32,582,111       0.98%           14.66%  

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

 

2016         0.00%       511,729           18.10       9,262,950       1.92%           9.00%  
2015         0.00%       519,808           16.61       8,632,339       1.42%           0.98%  
2014         0.00%       490,736           16.44       8,070,122       0.95%           4.99%  
2013         0.00%       487,528           15.66       7,636,273       1.31%           23.28%  
2012         0.00%       477,179           12.70       6,062,552       1.36%           15.72%  

American Funds NVIT Bond Fund - Class II (GVABD2)

 

2016         0.00%       101,604           13.52       1,373,217       2.37%           2.65%  
2015         0.00%       113,914           13.17       1,499,841       1.36%           -0.23%  
2014         0.00%       117,093           13.20       1,545,265       1.22%           4.98%  
2013         0.00%       122,305           12.57       1,537,507       1.67%           -2.57%  
2012         0.00%       158,000           12.90       2,038,705       2.20%           4.97%  

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

 

2016         0.00%       393,395           18.57       7,303,931       1.45%           0.19%  
2015         0.00%       426,191           18.53       7,898,072       0.69%           6.54%  
2014         0.00%       375,662           17.39       6,534,147       0.70%           1.84%  
2013         0.00%       394,540           17.08       6,738,800       0.39%           28.64%  
2012         0.00%       374,929           13.28       4,978,082       0.87%           22.09%  

American Funds NVIT Growth Fund - Class II (GVAGR2)

 

2016         0.00%       505,916           19.31       9,767,654       0.22%           9.06%  
2015         0.00%       539,000           17.70       9,541,628       0.71%           6.43%  
2014         0.00%       582,797           16.63       9,693,899       0.44%           8.07%  
2013         0.00%       660,438           15.39       10,165,319       0.32%           29.61%  
2012         0.00%       656,818           11.88       7,800,019       0.21%           17.40%  

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

 

2016         0.00%       195,828           16.74       3,277,768       1.12%           11.09%  
2015         0.00%       198,459           15.07       2,990,282       0.84%           1.09%  
2014         0.00%       223,749           14.91       3,335,091       0.79%           10.23%  
2013         0.00%       235,408           13.52       3,183,307       0.98%           32.97%  
2012         0.00%       247,986           10.17       2,521,961       1.05%           17.06%  

Federated NVIT High Income Bond Fund - Class I (HIBF)

 

2016     0.00%       to       0.25%       764,369       29.25       to       28.90       22,163,019       5.76%       14.16%       to       13.87%  
2015     0.00%       to       0.25%       792,106       25.62       to       25.38       20,149,457       5.47%       -2.61%       to       -2.85%  
2014     0.00%       to       0.25%       816,154       26.31       to       26.13       21,289,529       5.48%       2.55%       to       2.29%  
2013     0.00%       to       0.25%       679,469       25.66       to       25.54       17,286,424       6.14%       7.07%       to       6.80%  
2012     0.00%       to       0.25%       891,109       23.96       to       23.91       21,088,404       8.24%       14.56%       to       14.27%  

NVIT Emerging Markets Fund - Class I (GEM)

 

2016     0.00%       to       0.25%       533,999       23.17       to       22.25       12,233,957       0.82%       7.72%       to       7.45%  
2015     0.00%       to       0.25%       532,848       21.51       to       20.71       11,336,532       0.85%       -15.99%       to       -16.20%  
2014     0.00%       to       0.25%       557,428       25.61       to       24.71       14,127,165       1.22%       -5.51%       to       -5.74%  
2013     0.00%       to       0.25%       347,886       27.10       to       26.22       9,214,541       1.10%       0.75%       to       0.49%  
2012     0.00%       to       0.25%       443,026       26.90       to       26.09       11,673,052       0.50%       17.22%       to       16.92%  

NVIT International Equity Fund - Class I (GIG)

 

2016     0.00%       to       0.25%       1,036,347       16.20       to       15.55       16,611,416       2.14%       0.87%       to       0.62%  
2015     0.00%       to       0.25%       1,135,892       16.06       to       15.46       18,048,434       0.54%       -3.06%       to       -3.30%  
2014     0.00%       to       0.25%       960,722       16.57       to       15.99       15,746,265       3.56%       -0.45%       to       -0.70%  
2013     0.00%       to       0.25%       796,673       16.64       to       16.10       13,055,210       0.54%       17.83%       to       17.54%  
2012     0.00%       to       0.25%       758,056       14.12       to       13.70       10,581,543       0.87%       15.61%       to       15.32%  

Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II (NVIE6)

 

2016         0.00%       19,769           9.50       187,771       1.93%           0.63%  
2015         0.00%       20,759           9.44       195,933       0.25%           -3.22%  
2014         0.00%       25,389           9.75       247,606       3.79%           -0.72%  
2013         0.00%       27,530           9.82       270,431       0.53%           17.56%  
2012         0.00%       29,454           8.36       246,109       0.52%           15.23%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

 

2016         0.00%       970,413           16.32       15,835,198       0.80%           13.60%  
2015         0.00%       1,043,310           14.36       14,986,341       0.77%           -1.08%  
2014         0.00%       1,156,523           14.52       16,793,852       0.89%           6.60%  
2013         0.00%       1,264,376           13.62       17,223,307       1.05%           43.82%  
2012         0.00%       1,373,296           9.47       13,007,385       1.47%           16.94%  

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

 

2016         0.00%       13,923           18.26       254,278       0.79%           10.11%  
2015         0.00%       16,728           16.59       277,452       0.77%           -0.32%  
2014         0.00%       20,963           16.64       348,823       0.40%           10.60%  
2013         0.00%       63,496           15.04       955,287       1.00%           38.77%  
2012         0.00%       26,852           10.84       291,127       0.88%           11.50%  

NVIT Cardinal Aggressive Fund - Class I (NVCRA1)

 

2016     0.00%       to       0.25%       257,360       15.02       to       23.00       3,902,437       2.47%       8.33%       to       8.06%  
2015     0.00%       to       0.25%       257,344       13.87       to       21.28       3,598,068       2.63%       -1.58%       to       -1.82%  
2014     0.00%       to       0.25%       294,102       14.09       to       21.68       4,162,181       2.30%       4.48%       to       4.21%  
2013     0.00%       to       0.25%       261,976       13.49       to       20.80       3,541,688       1.43%       29.65%       to       29.32%  
2012     0.00%       to       0.25%       213,377       10.40       to       16.08       2,220,609       1.16%       16.22%       to       15.93%  

NVIT Cardinal Balanced Fund - Class I (NVCRB1)

 

2016     0.00%       to       0.25%       10,166,375       14.67       to       17.70       179,948,748       2.76%       6.28%       to       6.02%  
2015     0.00%       to       0.25%       10,232,948       13.80       to       16.69       170,635,089       2.73%       -1.05%       to       -1.30%  
2014     0.00%       to       0.25%       10,224,638       13.95       to       16.91       172,735,321       2.41%       4.46%       to       4.20%  
2013     0.00%       to       0.10%       10,209,139       13.35       to       16.34       165,624,736       1.74%       14.72%       to       14.60%  
2012     0.00%       to       0.10%       10,264,208       11.64       to       14.26       145,467,469       1.58%       11.24%       to       11.13%  

NVIT Cardinal Capital Appreciation Fund - Class I (NVCCA1)

 

2016     0.00%       to       0.25%       414,927       15.05       to       20.14       6,261,130       2.87%       7.32%       to       7.05%  
2015     0.00%       to       0.25%       413,648       14.02       to       18.81       5,863,151       2.92%       -1.15%       to       -1.39%  
2014     0.00%       to       0.25%       502,308       14.18       to       19.08       7,154,710       2.52%       4.70%       to       4.44%  
2013     0.00%       to       0.25%       505,936       13.55       to       18.27       6,867,707       1.76%       21.44%       to       21.14%  
2012     0.00%           417,509       11.15           4,657,198       1.55%       13.74%      

NVIT Cardinal Conservative Fund - Class I (NVCCN1)

 

2016     0.00%       to       0.25%       290,101       13.66       to       14.30       3,980,590       2.61%       4.81%       to       4.55%  
2015     0.00%       to       0.25%       315,786       13.03       to       13.68       4,132,995       1.93%       -0.65%       to       -0.90%  
2014     0.00%       to       0.25%       418,416       13.12       to       13.80       5,500,415       2.33%       3.42%       to       3.16%  
2013     0.00%       to       0.25%       357,466       12.69       to       13.38       4,544,807       1.92%       5.03%       to       4.77%  
2012     0.00%       to       0.25%       376,288       12.08       to       12.77       4,545,438       2.04%       7.58%       to       7.31%  

NVIT Cardinal Moderate Fund - Class I (NVCMD1)

 

2016     0.00%       to       0.25%       463,170       14.89       to       18.91       6,922,714       2.75%       6.82%       to       6.55%  
2015     0.00%       to       0.25%       490,108       13.94       to       17.74       6,859,396       2.86%       -0.98%       to       -1.22%  
2014     0.00%       to       0.25%       527,052       14.07       to       17.96       7,424,847       2.58%       4.66%       to       4.40%  
2013     0.00%       to       0.25%       465,232       13.45       to       17.21       6,256,218       1.68%       17.98%       to       17.68%  
2012     0.00%           489,603       11.40           5,580,088       1.47%       12.45%      

NVIT Cardinal Moderately Aggressive Fund - Class I (NVCMA1)

 

2016     0.00%       to       0.25%       448,324       14.99       to       21.19       6,816,853       2.72%       7.69%       to       7.42%  
2015     0.00%       to       0.25%       465,467       13.92       to       19.72       6,554,672       3.14%       -1.43%       to       -1.67%  
2014     0.00%       to       0.25%       500,786       14.12       to       20.06       7,122,373       2.54%       4.66%       to       4.40%  
2013     0.00%       to       0.25%       539,732       13.49       to       19.21       7,290,898       1.65%       24.35%       to       24.04%  
2012     0.00%       to       0.25%       475,266       10.85       to       15.49       5,157,615       1.27%       14.67%       to       14.38%  

NVIT Cardinal Moderately Conservative Fund - Class I (NVCMC1)

 

2016     0.00%       to       0.25%       300,175       14.41       to       16.56       4,358,449       2.66%       5.99%       to       5.73%  
2015     0.00%       to       0.25%       356,776       13.60       to       15.66       4,919,377       2.82%       -0.88%       to       -1.13%  
2014     0.00%       to       0.25%       274,907       13.72       to       15.84       3,837,479       2.59%       4.17%       to       3.91%  
2013     0.00%       to       0.25%       234,164       13.17       to       15.25       3,134,027       2.10%       11.33%       to       11.05%  
2012     0.00%       to       0.25%       168,356       11.83       to       13.73       2,023,329       1.97%       10.13%       to       9.86%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

NVIT Core Bond Fund - Class I (NVCBD1)

 

2016         0.00%       115,114           14.34       1,650,436       3.79%           5.35%  
2015         0.00%       71,807           13.61       977,281       2.55%           -0.72%  
2014         0.00%       72,271           13.71       990,731       3.25%           5.06%  
2013         0.00%       65,876           13.05       859,611       2.38%           -1.91%  
2012         0.00%       72,492           13.30       964,375       3.01%           7.75%  

NVIT Core Plus Bond Fund - Class I (NVLCP1)

 

2016         0.00%       145,090           15.32       2,222,841       2.98%           3.70%  
2015         0.00%       163,170           14.77       2,410,668       1.87%           -0.32%  
2014         0.00%       165,785           14.82       2,457,106       2.41%           5.09%  
2013         0.00%       68,382           14.10       964,406       2.14%           -1.77%  
2012         0.00%       88,003           14.36       1,263,519       3.10%           7.38%  

NVIT Nationwide Fund - Class I (TRF)

 

2016     0.00%       to       0.25%       5,801,396       26.42       to       20.66       131,664,747       1.45%       11.39%       to       11.11%  
2015     0.00%       to       0.25%       6,001,037       23.72       to       18.59       122,867,582       1.25%       0.94%       to       0.68%  
2014     0.00%       to       0.25%       5,535,091       23.50       to       18.47       113,397,553       1.18%       12.15%       to       11.87%  
2013     0.00%       to       0.25%       5,235,424       20.95       to       16.51       96,357,207       1.36%       31.10%       to       30.77%  
2012     0.00%       to       0.25%       5,630,708       15.98       to       12.62       79,096,053       1.42%       14.21%       to       13.93%  

NVIT Government Bond Fund - Class I (GBF)

 

2016     0.00%       to       0.25%       2,681,148       22.20       to       18.15       53,132,962       1.93%       0.74%       to       0.49%  
2015     0.00%       to       0.25%       2,796,778       22.03       to       18.06       55,120,112       1.66%       -0.11%       to       -0.36%  
2014     0.00%       to       0.25%       3,237,960       22.06       to       18.13       63,730,810       1.84%       4.57%       to       4.31%  
2013     0.00%       to       0.25%       4,678,416       21.09       to       17.38       88,111,568       1.58%       -4.06%       to       -4.29%  
2012     0.00%       to       0.25%       6,848,651       21.98       to       18.16       132,739,247       2.29%       3.06%       to       2.80%  

NVIT International Index Fund - Class II (GVIX2)

 

2016     0.00%       to       0.25%       247,534       9.33       to       9.10       2,308,841       2.46%       0.75%       to       0.50%  
2015     0.00%       to       0.25%       361,122       9.26       to       9.06       3,319,649       2.05%       -1.26%       to       -1.50%  
2014     0.00%       to       0.25%       368,560       9.38       to       9.20       3,430,319       2.77%       -6.12%       to       -6.36%  
2013     0.00%       to       0.25%       1,031,670       9.99       to       9.82       10,179,629       3.02%       21.36%       to       21.06%  
2012     0.00%       to       0.25%       941,904       8.23       to       8.11       7,665,578       2.39%       18.29%       to       17.99%  

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

 

2016     0.00%       to       0.25%       940,743       24.86       to       23.95       23,255,440       1.68%       9.47%       to       9.19%  
2015     0.00%       to       0.25%       969,751       22.71       to       21.93       21,912,397       1.39%       -1.00%       to       -1.25%  
2014     0.00%       to       0.25%       1,073,873       22.94       to       22.21       24,498,323       1.57%       4.99%       to       4.72%  
2013     0.00%       to       0.25%       1,274,214       21.85       to       21.21       27,694,970       1.70%       27.25%       to       26.93%  
2012     0.00%       to       0.25%       1,281,727       17.17       to       16.71       21,905,937       1.41%       15.90%       to       15.61%  

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

 

2016         0.00%       89,591           17.76       1,590,862       1.94%           6.30%  
2015         0.00%       90,670           16.70       1,514,570       1.45%           -0.17%  
2014         0.00%       117,578           16.73       1,967,463       1.72%           4.59%  
2013         0.00%       109,004           16.00       1,744,025       1.76%           13.42%  
2012         0.00%       101,106           14.11       1,426,210       2.24%           9.39%  

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

 

2016         0.00%       37,033           20.48       758,600       1.87%           7.74%  
2015         0.00%       38,096           19.01       724,321       1.65%           -0.53%  
2014         0.00%       34,838           19.11       665,918       2.15%           5.21%  
2013         0.00%       16,580           18.17       301,222       1.53%           19.49%  
2012         0.00%       23,052           15.20       350,481       1.85%           12.25%  

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

 

2016     0.00%       to       0.25%       799,851       17.55       to       16.91       13,812,389       2.24%       4.26%       to       4.00%  
2015     0.00%       to       0.25%       616,603       16.83       to       16.26       10,263,238       1.78%       0.26%       to       0.01%  
2014     0.00%       to       0.25%       658,975       16.79       to       16.25       10,974,987       1.88%       3.89%       to       3.63%  
2013     0.00%       to       0.25%       675,196       16.16       to       15.69       10,837,100       1.63%       4.83%       to       4.57%  
2012     0.00%       to       0.25%       755,925       15.42       to       15.00       11,569,034       1.71%       5.18%       to       4.91%  

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

 

2016     0.00%       to       0.25%       2,881,380       21.94       to       21.13       62,909,448       1.83%       7.14%       to       6.88%  
2015     0.00%       to       0.25%       3,138,153       20.47       to       19.77       63,960,082       1.61%       -0.33%       to       -0.58%  
2014     0.00%       to       0.25%       3,422,115       20.54       to       19.89       70,012,770       1.67%       5.18%       to       4.92%  
2013     0.00%       to       0.25%       3,736,779       19.53       to       18.96       72,702,876       1.61%       16.63%       to       16.34%  
2012     0.00%       to       0.25%       4,170,660       16.75       to       16.29       69,592,617       1.61%       10.81%       to       10.53%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

 

2016     0.00%       to       0.25%       3,657,818       23.81       to       22.94       86,550,055       1.78%       8.48%       to       8.21%  
2015     0.00%       to       0.25%       3,783,159       21.95       to       21.20       82,593,425       1.49%       -0.73%       to       -0.98%  
2014     0.00%       to       0.25%       3,927,295       22.11       to       21.41       86,486,411       1.74%       4.96%       to       4.69%  
2013     0.00%       to       0.25%       3,786,951       21.07       to       20.45       79,655,146       1.62%       22.38%       to       22.07%  
2012     0.00%       to       0.25%       4,264,890       17.21       to       16.75       73,291,785       1.63%       13.76%       to       13.48%  

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

 

2016     0.00%       to       0.25%       847,141       20.07       to       19.33       16,894,695       2.02%       5.70%       to       5.44%  
2015     0.00%       to       0.25%       822,967       18.98       to       18.33       15,576,328       1.68%       -0.03%       to       -0.28%  
2014     0.00%       to       0.25%       883,442       18.99       to       18.38       16,724,811       1.83%       4.74%       to       4.48%  
2013     0.00%       to       0.25%       929,870       18.13       to       17.60       16,808,751       1.67%       10.49%       to       10.22%  
2012     0.00%       to       0.25%       1,041,782       16.41       to       15.97       17,039,395       1.75%       8.04%       to       7.77%  

NVIT Mid Cap Index Fund - Class I (MCIF)

 

2016     0.00%       to       0.25%       2,420,022       57.09       to       38.14       107,613,758       1.29%       20.29%       to       19.99%  
2015     0.00%       to       0.25%       2,307,024       47.46       to       31.79       86,562,644       1.19%       -2.53%       to       -2.78%  
2014     0.00%       to       0.25%       2,088,515       48.69       to       32.69       80,705,813       1.08%       9.42%       to       9.15%  
2013     0.00%       to       0.25%       2,137,602       44.50       to       29.95       75,996,983       1.15%       33.05%       to       32.72%  
2012     0.00%       to       0.25%       2,141,754       33.45       to       22.57       57,446,510       1.07%       17.47%       to       17.18%  

NVIT Money Market Fund - Class I (SAM)

 

2016     0.00%       to       0.25%       3,214,145       14.29       to       11.79       45,893,151       0.01%       0.01%       to       -0.24%  
2015     0.00%       to       0.25%       3,306,864       14.29       to       11.82       47,207,095       0.00%       0.00%       to       -0.25%  
2014     0.00%       to       0.25%       4,000,593       14.29       to       11.85       56,025,296       0.00%       0.00%       to       -0.25%  
2013     0.00%       to       0.25%       4,607,576       14.29       to       11.88       64,524,668       0.00%       0.00%       to       -0.25%  
2012     0.00%       to       0.25%       6,108,577       14.29       to       11.91       85,967,265       0.00%       0.00%       to       -0.25%  

NVIT Money Market Fund - Class V (SAM5)

 

2016     0.00%       to       0.25%       13,128,527       11.73       to       11.33       149,888,173       0.03%       0.03%       to       -0.22%  
2015     0.00%       to       0.25%       14,808,532       11.73       to       11.35       169,295,370       0.00%       0.00%       to       -0.25%  
2014     0.00%       to       0.25%       14,550,861       11.73       to       11.38       166,552,415       0.00%       0.00%       to       -0.25%  
2013     0.00%       to       0.25%       19,129,974       11.73       to       11.41       219,396,554       0.00%       0.00%       to       -0.25%  
2012     0.00%       to       0.25%       18,461,412       11.73       to       11.44       212,099,838       0.00%       0.00%       to       -0.25%  

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

 

2016         0.00%       1,476,548           9.54       14,087,207       1.44%           -2.12%  
2015         0.00%       1,587,910           9.75       15,478,083       0.72%           -0.49%  
2014         0.00%       1,641,194           9.80       16,076,383       1.06%           -2.04% **** 

NVIT Multi-Manager International Value Fund - Class I (GVDIVI)

 

2016         0.00%       247,269           18.94       4,684,146       3.07%           5.23%  
2015         0.00%       258,691           18.00       4,657,160       1.19%           -5.12%  
2014         0.00%       281,697           18.97       5,344,914       2.81%           -9.46%  
2013         0.00%       32,529           20.96       681,722       2.34%           21.41%  
2012         0.00%       39,531           17.26       682,396       0.39%           17.29%  

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

 

2016     0.00%       to       0.25%       702,223       16.95       to       16.59       11,876,806       0.89%       2.19%       to       1.94%  
2015     0.00%       to       0.25%       699,376       16.59       to       16.27       11,590,235       0.47%       3.43%       to       3.18%  
2014     0.00%       to       0.25%       744,288       16.04       to       15.77       11,927,494       0.49%       10.44%       to       10.16%  
2013     0.00%       to       0.25%       817,723       14.52       to       14.32       11,866,467       0.75%       34.74%       to       34.40%  
2012     0.00%       to       0.25%       983,243       10.78       to       10.65       10,586,485       0.46%       16.35%       to       16.06%  

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

 

2016     0.00%       to       0.25%       990,502       17.16       to       19.35       18,396,747       1.87%       16.35%       to       16.06%  
2015     0.00%       to       0.25%       1,027,161       14.75       to       16.67       16,442,051       2.27%       -3.15%       to       -3.39%  
2014     0.00%       to       0.25%       509,471       15.23       to       17.26       7,832,611       1.26%       10.52%       to       10.24%  
2013     0.00%       to       0.25%       537,399       13.78       to       15.66       7,467,794       1.34%       35.44%       to       35.10%  
2012     0.00%       to       0.25%       650,008       10.17       to       11.59       6,714,538       1.34%       17.81%       to       17.52%  

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

 

2016     0.00%       to       0.25%       2,572,757       17.11       to       16.75       43,899,908       0.00%       6.47%       to       6.20%  
2015     0.00%       to       0.25%       2,738,949       16.07       to       15.77       43,932,455       0.00%       -0.18%       to       -0.43%  
2014     0.00%       to       0.25%       2,156,480       16.10       to       15.84       34,718,009       0.00%       4.04%       to       3.78%  
2013     0.00%       to       0.25%       2,367,293       15.48       to       15.26       36,643,379       0.00%       38.94%       to       38.60%  
2012     0.00%       to       0.25%       2,553,965       11.14       to       11.01       28,451,549       0.00%       14.90%       to       14.62%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

NVIT Multi-Manager Mid Cap Value Fund - Class I (NVMMV1)

 

2016     0.00%       to       0.25%       60,062       22.05       to       21.58       1,306,453       1.61%       17.72%       to       17.43%  
2015     0.00%       to       0.25%       57,439       18.73       to       18.38       1,063,100       1.44%       -2.75%       to       -2.99%  
2014     0.00%       to       0.25%       48,124       19.26       to       18.95       915,950       3.76%       17.15%       to       16.86%  
2013     0.20%       to       0.25%       8,378       16.26       to       16.21       136,063       1.92%       35.58%       to       35.51%  
2012     0.00%       to       0.25%       5,559       12.10       to       11.96       66,613       1.34%       16.65%       to       16.36%  

NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)

 

2016         0.00%       655,772           21.73       14,252,796       1.41%           17.59%  
2015         0.00%       682,469           18.48       12,613,881       1.13%           -2.89%  
2014         0.00%       798,637           19.03       15,199,545       1.43%           17.02%  
2013         0.00%       801,822           16.26       13,040,702       1.19%           35.68%  
2012         0.00%       861,247           11.99       10,323,947       1.13%           16.35%  

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

 

2016     0.00%       to       0.25%       614,860       29.79       to       28.50       18,116,126       0.00%       8.30%       to       8.04%  
2015     0.00%       to       0.25%       624,974       27.51       to       26.38       17,035,327       0.00%       0.76%       to       0.50%  
2014     0.00%       to       0.25%       552,233       27.30       to       26.25       14,983,770       0.00%       2.81%       to       2.55%  
2013     0.00%       to       0.25%       578,414       26.55       to       25.60       15,276,324       0.00%       44.29%       to       43.93%  
2012     0.00%       to       0.25%       679,744       18.40       to       17.79       12,421,533       0.00%       13.44%       to       13.15%  

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

 

2016     0.00%       to       0.25%       778,121       58.78       to       44.06       43,757,132       0.64%       25.93%       to       25.62%  
2015     0.00%       to       0.25%       862,131       46.68       to       35.07       38,537,015       0.75%       -6.02%       to       -6.26%  
2014     0.00%       to       0.25%       839,625       49.67       to       37.42       39,613,189       0.52%       7.02%       to       6.75%  
2013     0.00%       to       0.25%       982,222       46.41       to       35.05       42,786,445       0.83%       40.40%       to       40.05%  
2012     0.00%       to       0.25%       1,047,996       33.05       to       25.03       32,816,953       0.83%       20.44%       to       20.14%  

NVIT Multi-Manager Small Company Fund - Class I (SCF)

 

2016     0.00%       to       0.25%       1,059,980       51.49       to       34.07       46,370,729       0.33%       22.83%       to       22.53%  
2015     0.00%       to       0.25%       1,156,133       41.92       to       27.81       41,158,133       0.37%       -1.63%       to       -1.88%  
2014     0.00%       to       0.25%       1,262,236       42.61       to       28.34       45,885,752       0.16%       0.82%       to       0.56%  
2013     0.00%       to       0.25%       1,549,110       42.27       to       28.18       54,890,033       0.13%       40.91%       to       40.55%  
2012     0.00%       to       0.25%       1,779,583       30.00       to       20.05       44,668,472       0.15%       15.50%       to       15.21%  

NVIT Multi-Sector Bond Fund - Class I (MSBF)

 

2016     0.00%       to       0.25%       505,737       24.04       to       21.70       11,910,627       3.30%       8.65%       to       8.38%  
2015     0.00%       to       0.25%       494,615       22.13       to       20.02       10,732,453       2.08%       -2.89%       to       -3.13%  
2014     0.00%       to       0.25%       514,344       22.79       to       20.67       11,552,062       3.14%       3.88%       to       3.62%  
2013     0.00%       to       0.25%       538,896       21.94       to       19.94       11,694,812       3.31%       -1.12%       to       -1.37%  
2012     0.00%       to       0.25%       619,427       22.19       to       20.22       13,566,735       2.47%       12.25%       to       11.97%  

NVIT Short Term Bond Fund - Class I (NVSTB1)

 

2016     0.00%       to       0.25%       2,715,651       12.03       to       11.77       32,219,057       2.63%       2.75%       to       2.49%  
2015     0.00%       to       0.25%       1,302,410       11.71       to       11.48       14,970,825       1.59%       -0.08%       to       -0.33%  
2014     0.10%       to       0.25%       2,190,544       11.64       to       11.52       25,333,573       0.90%       0.67%       to       0.52%  
2013     0.00%       to       0.25%       3,094,731       11.63       to       11.46       35,644,261       1.51%       0.33%       to       0.08%  
2012     0.00%       to       0.25%       2,525,391       11.59       to       11.45       29,087,822       2.62%       3.83%       to       3.57%  

NVIT Short Term Bond Fund - Class II (NVSTB2)

 

2016         0.00%       103,139           11.75       1,212,293       1.48%           2.49%  
2015         0.00%       136,028           11.47       1,560,000       1.72%           -0.34%  
2014         0.00%       164,622           11.51       1,894,382       0.97%           0.49%  
2013         0.00%       163,595           11.45       1,873,312       0.98%           0.11%  
2012         0.00%       201,309           11.44       2,302,741       1.30%           3.52%  

NVIT Large Cap Growth Fund - Class I (NVOLG1)

 

2016     0.00%       to       0.25%       5,059,454       26.71       to       10.37       135,005,393       0.76%       3.63%       to       3.68% **** 
2015         0.00%       4,934,844           25.77       127,175,154       0.63%           5.09%  
2014         0.00%       5,400,878           24.52       132,440,260       0.71%           8.80%  
2013         0.00%       5,982,076           22.54       134,827,822       0.79%           36.70%  
2012         0.00%       6,636,497           16.49       109,418,189       0.70%           18.68%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Templeton NVIT International Value Fund - Class III (NVTIV3)

 

2016         0.00%       36,585           15.56       569,167       2.03%           1.12%  
2015         0.00%       45,612           15.39       701,775       2.37%           -3.90%  
2014         0.00%       28,263           16.01       452,505       3.75%           -8.15%  
2013         0.00%       29,863           17.43       520,525       1.87%           20.09%  
2012         0.00%       35,997           14.51       522,460       2.54%           19.56%  

Invesco NVIT Comstock Value Fund - Class I (EIF)

 

2016     0.00%       to       0.25%       449,740       25.97       to       20.94       11,423,040       2.70%       17.89%       to       17.59%  
2015     0.00%       to       0.25%       491,781       22.03       to       17.81       10,598,730       1.56%       -6.30%       to       -6.53%  
2014     0.00%       to       0.25%       536,954       23.51       to       19.05       12,375,894       1.76%       9.17%       to       8.90%  
2013     0.00%       to       0.25%       554,935       21.53       to       17.50       11,774,305       0.00%       35.64%       to       35.30%  
2012     0.00%       to       0.25%       534,227       15.87       to       12.93       8,376,774       1.18%       18.46%       to       18.17%  

NVIT Real Estate Fund - Class I (NVRE1)

 

2016     0.00%       to       0.25%       1,769,718       16.00       to       31.50       32,029,409       2.01%       7.35%       to       7.08%  
2015     0.00%       to       0.25%       1,934,105       14.91       to       29.42       32,169,726       2.62%       -5.36%       to       -5.59%  
2014     0.00%       to       0.25%       2,232,004       15.75       to       31.16       39,249,857       3.00%       28.88%       to       28.56%  
2013     0.00%       to       0.25%       2,274,473       12.22       to       24.24       30,746,745       1.49%       3.05%       to       2.79%  
2012     0.00%       to       0.25%       2,455,857       11.86       to       23.58       31,777,308       1.03%       15.79%       to       15.50%  

Loring Ward NVIT Capital Appreciation Fund - Class P (NVLCAP)

 

2016         0.00%       3,202           12.79       40,958       1.68%           11.54%  
2015         0.00%       2,467           11.47       28,291       2.43%           -3.00%  
2014         0.00%       2,183           11.82       25,809       2.05%           3.34%  
2013         0.00%       140           11.44       1,602       5.98%           14.41% **** 

Loring Ward NVIT Moderate Fund - Class P (NVLMP)

 

2016         0.00%       619           12.30       7,616       1.45%           8.96%  
2015         0.00%       530           11.29       5,984       5.79%           -1.70%  
2014         0.00%       191           11.49       2,194       1.50%           2.09%  

NVIT Small Cap Index Fund Class II (NVSIX2)

 

2016         0.00%       60,309           15.24       919,207       1.37%           20.87%  
2015         0.00%       23,027           12.61       290,369       1.27%           -4.88%  
2014         0.00%       18,330           13.26       243,002       1.19%           4.55%  
2013         0.00%       5,103           12.68       64,706       1.58%           26.80% **** 

NVIT S&P 500 Index Fund Class I (GVEX1)

 

2016         0.00%       333,583           15.16       5,056,016       2.31%           11.66%  
2015         0.00%       239,681           13.57       3,253,294       2.43%           1.16%  
2014         0.00%       121,451           13.42       1,629,554       3.36%           13.36%  
2013         0.00%       42,973           11.84       508,626       2.83%           18.36% **** 

Short Duration Bond Portfolio - I Class Shares (AMTB)

 

2016         0.00%       315,280           12.54       3,953,563       1.14%           1.22%  
2015         0.00%       300,528           12.39       3,723,185       1.46%           0.18%  
2014         0.00%       303,453           12.37       3,752,525       1.76%           0.61%  
2013         0.00%       290,095           12.29       3,565,590       2.16%           0.62%  
2012         0.00%       299,031           12.22       3,652,892       2.92%           4.61%  

Guardian Portfolio - I Class Shares (AMGP)

 

2016     0.00%       to       0.25%       28,238       37.00       to       23.96       676,706       0.58%       8.73%       to       8.46%  
2015     0.00%       to       0.25%       25,306       34.03       to       22.09       559,119       0.81%       -4.97%       to       -5.21%  
2014     0.00%       to       0.25%       43,652       35.81       to       23.31       1,074,537       0.42%       9.03%       to       8.76%  
2013     0.00%       to       0.25%       51,556       32.84       to       21.43       1,174,843       0.89%       38.81%       to       38.47%  
2012     0.00%       to       0.25%       49,333       23.66       to       15.48       810,864       0.19%       12.73%       to       12.44%  

Mid-Cap Growth Portfolio - I Class Shares (AMCG)

 

2016     0.00%       to       0.25%       88,094       41.22       to       21.32       1,878,424       0.00%       4.40%       to       4.14%  
2015     0.00%       to       0.25%       105,561       39.48       to       20.47       2,161,389       0.00%       1.28%       to       1.02%  
2014     0.00%       to       0.25%       133,206       38.99       to       20.26       2,873,717       0.00%       7.58%       to       7.31%  
2013     0.00%       to       0.25%       147,342       36.24       to       18.88       2,936,405       0.00%       32.61%       to       32.28%  
2012     0.00%       to       0.25%       203,445       27.33       to       14.27       3,073,903       0.00%       12.41%       to       12.13%  

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)

 

2016         0.00%       102,493           10.00       1,024,861       0.00%           4.16%  
2015         0.00%       108,814           9.60       1,044,595       0.00%           -4.00% **** 

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

 

2016     0.00%       to       0.25%       11,692       27.80       to       25.09       313,438       0.89%       27.37%       to       27.05%  
2015     0.00%       to       0.25%       10,845       21.82       to       19.75       232,327       0.77%       -11.80%       to       -12.02%  
2014     0.00%       to       0.25%       50,604       24.74       to       22.45       1,173,569       0.79%       9.85%       to       9.58%  
2013     0.00%       to       0.25%       49,246       22.53       to       20.49       1,043,828       0.91%       31.14%       to       30.81%  
2012     0.00%       to       0.25%       144,447       17.18       to       15.66       2,316,303       0.37%       16.60%       to       16.31%  

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class I (AMRI)

 

2016     0.00%       to       0.25%       301,368       19.09       to       18.58       5,601,936       0.67%       16.17%       to       15.88%  
2015     0.00%       to       0.25%       307,667       16.43       to       16.04       4,935,285       0.78%       -8.34%       to       -8.57%  
2014     0.00%       to       0.25%       307,696       17.92       to       17.54       5,398,169       1.03%       13.84%       to       13.55%  
2013     0.00%       to       0.25%       347,690       15.75       to       15.45       5,373,194       1.23%       37.05%       to       36.71%  
2012     0.00%       to       0.25%       380,913       11.49       to       11.30       4,307,792       0.61%       15.53%       to       15.24%  

Socially Responsive Portfolio - I Class Shares (AMSRS)

 

2016         0.00%       63,947           32.02       2,047,381       0.70%           9.86%  
2015         0.00%       68,268           29.14       1,989,523       0.51%           -0.46%  
2014         0.00%       85,955           29.28       2,516,640       0.35%           10.38%  
2013         0.00%       113,615           26.52       3,013,621       0.70%           37.60%  
2012         0.00%       122,284           19.28       2,357,202       0.22%           10.98%  

TOPS Managed Risk Balanced ETF Portfolio - Class 3 (NOTB3)

 

2016         0.00%       3,491           10.76       37,578       1.34%           6.02%  
2015         0.00%       3,395           10.15       34,469       1.29%           -4.54%  

TOPS Managed Risk Growth ETF Portfolio - Class 3 (NOTG3)

 

2016         0.00%       2,939           10.58       31,081       1.58%           5.51%  

TOPS Managed Risk Moderate Growth ETF Portfolio - Class 3 (NOTMG3)

 

2016         0.00%       4,003           10.87       43,524       1.90%           6.14%  
2015         0.00%       1,135           10.24       11,626       0.05%           -6.46%  
2014         0.00%       10           10.95       110       0.10%           2.75%  
2013         0.00%       320           10.66       3,411       0.83%           6.58% **** 

VPS Growth and Income Portfolio - Class A (ALVGIA)

 

2016     0.00%       to       0.25%       781,559       32.48       to       31.34       24,692,434       1.00%       11.30%       to       11.02%  
2015     0.00%       to       0.25%       794,184       29.19       to       28.23       22,576,076       1.45%       1.70%       to       1.45%  
2014     0.00%       to       0.25%       831,086       28.70       to       27.83       23,312,057       1.55%       9.54%       to       9.27%  
2013     0.00%       to       0.25%       575,885       26.20       to       25.47       14,819,195       1.26%       34.96%       to       34.63%  
2012     0.00%       to       0.25%       466,391       19.41       to       18.92       8,924,592       1.56%       17.52%       to       17.23%  

VPS International Value Portfolio - Class A (ALVIVA)

 

2016     0.00%       to       0.25%       1,068,396       8.62       to       8.39       9,032,273       1.39%       -0.50%       to       -0.75%  
2015     0.00%       to       0.25%       981,220       8.67       to       8.46       8,359,637       2.59%       2.59%       to       2.33%  
2014     0.00%       to       0.25%       1,020,175       8.45       to       8.27       8,490,269       3.43%       -6.21%       to       -6.45%  
2013     0.00%       to       0.25%       1,306,206       9.01       to       8.83       11,634,412       6.94%       23.00%       to       22.70%  
2012     0.00%       to       0.25%       1,136,094       7.32       to       7.20       8,221,153       1.40%       14.53%       to       14.25%  

VPS Small/Mid Cap Value Portfolio - Class A (ALVSVA)

 

2016     0.00%       to       0.25%       460,947       46.38       to       44.82       21,145,299       0.59%       25.09%       to       24.78%  
2015     0.00%       to       0.25%       496,940       37.07       to       35.92       18,216,191       0.79%       -5.49%       to       -5.72%  
2014     0.00%       to       0.25%       515,175       39.23       to       38.10       20,013,603       0.72%       9.20%       to       8.93%  
2013     0.00%       to       0.25%       413,328       35.92       to       34.98       14,715,273       0.63%       38.06%       to       37.71%  
2012     0.00%       to       0.25%       393,530       26.02       to       25.40       10,156,369       0.56%       18.75%       to       18.45%  

VP Capital Appreciation Fund - Class I (ACVCA)

 

2016     0.00%       to       0.25%       55,448       11.67       to       11.59       642,966       0.00%       3.23%       to       2.97%  
2015     0.00%       to       0.25%       51,411       11.30       to       11.25       578,782       0.00%       1.93%       to       1.68%  
2014     0.00%       to       0.25%       145,072       11.09       to       11.07       1,606,401       0.00%       10.86%       to       10.67% **** 

VP Income & Growth Fund - Class I (ACVIG)

 

2016     0.00%       to       0.25%       671,446       30.21       to       21.97       19,116,463       2.36%       13.48%       to       13.20%  
2015     0.00%       to       0.25%       724,329       26.63       to       19.40       18,198,664       2.08%       -5.62%       to       -5.86%  
2014     0.00%       to       0.25%       899,634       28.21       to       20.61       23,330,878       2.04%       12.50%       to       12.22%  
2013     0.00%       to       0.25%       900,940       25.08       to       18.37       21,067,403       2.22%       35.82%       to       35.48%  
2012     0.00%       to       0.25%       984,649       18.46       to       13.56       16,875,187       2.10%       14.74%       to       14.46%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

VP Inflation Protection Fund - Class II (ACVIP2)

 

2016         0.00%       573,519           16.25       9,320,785       1.82%           4.39%  
2015         0.00%       611,924           15.57       9,526,951       2.05%           -2.47%  
2014         0.00%       783,544           15.96       12,507,527       1.30%           3.30%  
2013         0.00%       880,216           15.45       13,601,857       1.80%           -8.48%  
2012         0.00%       2,163,527           16.88       36,530,087       2.45%           7.39%  

VP International Fund - Class I (ACVI)

 

2016     0.00%       to       0.25%       267,024       21.45       to       13.37       3,579,842       0.99%       -5.50%       to       -5.73%  
2015     0.00%       to       0.25%       103,448       22.70       to       14.19       1,476,332       0.36%       0.76%       to       0.51%  
2014     0.00%       to       0.25%       119,008       22.53       to       14.11       1,859,779       1.93%       -5.51%       to       -5.74%  
2013     0.00%       to       0.25%       242,842       23.84       to       14.97       3,853,608       1.66%       22.41%       to       22.10%  
2012     0.00%       to       0.25%       268,588       19.48       to       12.26       3,523,554       0.95%       21.16%       to       20.86%  

VP Mid Cap Value Fund - Class I (ACVMV1)

 

2016     0.00%       to       0.25%       573,834       33.06       to       32.11       18,828,526       1.70%       22.85%       to       22.55%  
2015     0.00%       to       0.25%       500,601       26.91       to       26.20       13,389,899       1.64%       -1.43%       to       -1.68%  
2014     0.00%       to       0.25%       492,846       27.30       to       26.65       13,379,525       1.17%       16.42%       to       16.13%  
2013     0.00%       to       0.25%       482,118       23.45       to       22.95       11,238,525       1.23%       30.11%       to       29.79%  
2012     0.00%       to       0.25%       397,347       18.02       to       17.68       7,119,230       2.06%       16.33%       to       16.04%  

VP Ultra(R) Fund - Class I (ACVU1)

 

2016         0.25%       25,536           22.55       575,807       0.36%           4.19%  
2015         0.25%       34,702           21.64       751,055       0.43%           6.01%  
2014     0.10%       to       0.25%       77,382       20.81       to       20.42       1,598,803       0.36%       9.88%       to       9.72%  
2013     0.10%       to       0.25%       74,672       18.94       to       18.61       1,405,659       0.52%       36.94%       to       36.73%  
2012     0.10%       to       0.25%       87,718       13.83       to       13.61       1,206,681       0.00%       13.81%       to       13.64%  

VP Value Fund - Class I (ACVV)

 

2016     0.00%       to       0.25%       721,213       41.93       to       34.68       25,652,949       1.81%       20.48%       to       20.18%  
2015     0.00%       to       0.25%       723,165       34.80       to       28.85       21,342,297       2.11%       -3.88%       to       -4.12%  
2014     0.00%       to       0.25%       813,491       36.21       to       30.10       25,658,246       1.56%       13.08%       to       12.80%  
2013     0.00%       to       0.25%       723,483       32.02       to       26.68       20,213,290       1.65%       31.73%       to       31.40%  
2012     0.00%       to       0.25%       640,587       24.31       to       20.31       13,676,677       1.93%       14.58%       to       14.29%  

MidCap Stock Portfolio - Initial Shares (DVMCS)

 

2016     0.00%       to       0.25%       70,707       37.82       to       36.49       2,583,205       1.08%       15.47%       to       15.18%  
2015     0.00%       to       0.25%       79,448       32.75       to       31.68       2,518,807       0.62%       -2.29%       to       -2.53%  
2014     0.00%       to       0.25%       104,891       33.52       to       32.50       3,435,635       0.81%       12.09%       to       11.81%  
2013     0.10%       to       0.25%       55,938       29.57       to       29.07       1,643,820       1.18%       34.86%       to       34.66%  
2012     0.10%       to       0.25%       56,449       21.92       to       21.59       1,231,526       0.48%       19.55%       to       19.38%  

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

 

2016     0.00%       to       0.25%       3,029,148       36.10       to       34.80       106,432,931       0.90%       25.73%       to       25.41%  
2015     0.00%       to       0.25%       3,013,709       28.71       to       27.75       84,362,335       0.73%       -2.33%       to       -2.57%  
2014     0.00%       to       0.25%       3,271,232       29.40       to       28.48       93,959,139       0.55%       5.12%       to       4.86%  
2013     0.00%       to       0.25%       2,964,896       27.96       to       27.16       81,233,215       0.95%       40.71%       to       40.36%  
2012     0.00%       to       0.25%       2,443,618       19.87       to       19.35       47,702,720       0.44%       15.74%       to       15.45%  

Appreciation Portfolio - Initial Shares (DCAP)

 

2016     0.00%       to       0.25%       680,407       29.81       to       19.86       18,964,648       1.63%       7.90%       to       7.63%  
2015     0.00%       to       0.25%       800,138       27.63       to       18.45       20,291,117       1.68%       -2.47%       to       -2.71%  
2014     0.00%       to       0.25%       1,135,867       28.33       to       18.97       27,937,998       1.81%       8.09%       to       7.82%  
2013     0.00%       to       0.25%       1,660,176       26.21       to       17.59       35,692,893       1.96%       21.10%       to       20.80%  
2012     0.00%       to       0.25%       1,960,552       21.64       to       14.56       35,125,710       3.70%       10.43%       to       10.15%  

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

 

2016         0.00%       40,468           25.95       1,050,101       0.00%           17.07%  
2015         0.00%       42,927           22.17       951,485       0.00%           -2.28%  
2014         0.00%       47,065           22.68       1,067,509       0.00%           1.59%  
2013         0.00%       61,048           22.33       1,362,930       0.00%           48.55%  
2012         0.00%       61,690           15.03       927,156       0.00%           20.56%  

International Value Portfolio - Initial Shares (DVIV)

 

2016     0.00%       to       0.25%       180,986       18.59       to       17.93       3,255,207       2.13%       -1.45%       to       -1.69%  
2015     0.00%       to       0.25%       216,185       18.86       to       18.24       3,953,737       2.30%       -2.72%       to       -2.96%  
2014     0.00%       to       0.25%       291,203       19.39       to       18.80       5,511,637       2.00%       -9.32%       to       -9.55%  
2013     0.00%       to       0.25%       546,235       21.38       to       20.78       11,390,676       2.00%       22.99%       to       22.69%  
2012     0.00%       to       0.25%       551,230       17.38       to       16.94       9,366,349       3.81%       12.67%       to       12.38%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Variable Series II - DWS Small Mid Cap Value VIP - Class B (SVSSVB)

 

2016     0.00%       to       0.25%       13,045       17.13       to       16.74       219,472       0.22%       16.47%       to       16.18%  
2015     0.00%       to       0.25%       14,430       14.71       to       14.41       208,665       0.00%       -2.21%       to       -2.46%  
2014     0.00%       to       0.25%       48,141       15.04       to       14.77       713,559       0.72%       5.09%       to       4.83%  
2013     0.00%       to       0.25%       124,095       14.31       to       14.09       1,767,021       0.53%       34.70%       to       34.36%  
2012     0.00%       to       0.25%       57,937       10.63       to       10.49       609,570       1.21%       13.38%       to       13.10%  

Variable Series II - DWS Large Cap Value VIP - Class B (SVSLVB)

 

2016     0.20%       to       0.25%       6,208       12.77       to       12.73       79,090       0.72%       -4.81%       to       -4.86%  
2015     0.20%       to       0.25%       10,596       13.41       to       13.38       141,848       1.10%       -7.35%       to       -7.40%  
2014     0.20%       to       0.25%       10,766       14.47       to       14.45       155,618       1.40%       10.14%       to       10.08%  
2013     0.20%       to       0.25%       11,249       13.14       to       13.12       147,688       1.66%       30.28%       to       30.21%  
2012     0.20%       to       0.25%       13,220       10.09       to       10.08       133,260       1.67%       9.22%       to       9.16%  

Managed Tail Risk Fund II: Primary Shares (FVCA2P)

 

2016         0.00%       41,070           16.49       677,417       1.76%           -4.20%  
2015         0.00%       40,403           17.22       695,612       1.64%           -6.29%  
2014         0.00%       43,124           18.37       792,290       1.71%           -0.97%  
2013         0.00%       43,232           18.55       802,033       0.96%           16.45%  
2012         0.00%       43,680           15.93       695,862       0.63%           10.17%  

Quality Bond Fund II - Primary Shares (FQB)

 

2016     0.00%       to       0.25%       1,087,537       22.91       to       21.92       24,488,403       3.57%       3.82%       to       3.57%  
2015     0.00%       to       0.25%       1,164,659       22.07       to       21.17       25,290,762       3.73%       -0.24%       to       -0.49%  
2014     0.00%       to       0.25%       1,283,800       22.12       to       21.27       27,987,363       3.86%       3.79%       to       3.53%  
2013     0.00%       to       0.25%       1,349,684       21.31       to       20.55       28,352,506       4.25%       1.03%       to       0.78%  
2012     0.00%       to       0.25%       1,455,486       21.09       to       20.39       30,285,783       4.22%       9.72%       to       9.45%  

VIP Contrafund(R)Portfolio - Service Class (FCS)

 

2016     0.00%       to       0.25%       1,007,437       44.51       to       29.37       30,100,223       0.69%       7.91%       to       7.64%  
2015     0.00%       to       0.25%       1,229,565       41.25       to       27.29       34,056,039       0.73%       0.56%       to       0.31%  
2014     0.00%       to       0.25%       2,176,373       41.02       to       27.20       60,334,411       0.79%       11.82%       to       11.54%  
2013     0.00%       to       0.25%       2,707,495       36.69       to       24.39       67,114,985       0.97%       31.14%       to       30.82%  
2012     0.00%       to       0.25%       3,000,033       27.97       to       18.64       56,871,526       1.22%       16.31%       to       16.02%  

VIP Energy Portfolio - Service Class 2 (FNRS2)

 

2016         0.00%       389,722           20.94       8,159,951       0.51%           33.51%  
2015         0.00%       390,067           15.68       6,117,397       0.97%           -20.75%  
2014         0.00%       405,538           19.79       8,025,181       0.71%           -12.76%  
2013         0.00%       422,224           22.68       9,578,003       0.68%           24.15%  
2012         0.00%       500,432           18.27       9,144,226       0.74%           4.73%  

VIP Equity-Income Portfolio - Service Class (FEIS)

 

2016     0.00%       to       0.25%       2,126,322       30.11       to       23.49       60,289,878       2.21%       17.90%       to       17.61%  
2015     0.00%       to       0.25%       2,345,447       25.54       to       19.97       56,301,658       3.02%       -4.09%       to       -4.33%  
2014     0.00%       to       0.25%       2,527,460       26.63       to       20.88       63,137,536       2.59%       8.65%       to       8.38%  
2013     0.00%       to       0.25%       3,053,344       24.51       to       19.26       69,302,459       2.39%       28.01%       to       27.69%  
2012     0.00%       to       0.25%       3,341,092       19.14       to       15.09       59,227,345       2.97%       17.19%       to       16.89%  

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

 

2016     0.00%       to       0.25%       123,827       18.69       to       18.16       2,307,272       1.47%       5.28%       to       5.02%  
2015     0.00%       to       0.25%       125,604       17.76       to       17.29       2,221,284       1.62%       -0.31%       to       -0.56%  
2014     0.00%       to       0.25%       141,331       17.81       to       17.39       2,509,861       1.52%       4.35%       to       4.09%  
2013     0.00%       to       0.25%       146,853       17.07       to       16.70       2,500,653       1.61%       13.39%       to       13.11%  
2012     0.00%       to       0.25%       149,435       15.05       to       14.77       2,245,200       1.75%       11.69%       to       11.41%  

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

 

2016     0.00%       to       0.25%       1,731,090       19.50       to       18.94       33,032,291       1.57%       6.04%       to       5.78%  
2015     0.00%       to       0.25%       1,516,176       18.39       to       17.91       27,384,785       1.92%       -0.37%       to       -0.62%  
2014     0.00%       to       0.25%       1,234,002       18.46       to       18.02       22,435,469       1.76%       4.66%       to       4.40%  
2013     0.00%       to       0.25%       1,085,182       17.64       to       17.26       18,902,163       2.00%       15.95%       to       15.67%  
2012     0.00%       to       0.25%       858,487       15.21       to       14.92       12,942,087       2.06%       13.19%       to       12.90%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

 

2016     0.00%       to       0.25%       788,851       20.45       to       19.86       15,880,362       1.52%       6.52%       to       6.25%  
2015     0.00%       to       0.25%       670,689       19.20       to       18.70       12,707,207       1.80%       -0.34%       to       -0.58%  
2014     0.00%       to       0.25%       523,809       19.27       to       18.81       9,982,525       1.60%       4.86%       to       4.60%  
2013     0.00%       to       0.25%       443,253       18.37       to       17.98       8,074,425       1.87%       21.50%       to       21.19%  
2012     0.00%       to       0.25%       376,771       15.12       to       14.83       5,662,257       1.99%       15.48%       to       15.19%  

VIP Freedom Income Fund Portfolio - Service Class (FFINS)

 

2016     0.20%       to       0.25%       78,879       12.24       to       12.21       965,432       1.37%       4.11%       to       4.06%  
2015     0.20%       to       0.25%       104,625       11.76       to       11.73       1,230,126       1.73%       -0.62%       to       -0.67%  
2014     0.20%       to       0.25%       87,841       11.83       to       11.81       1,039,310       1.27%       3.49%       to       3.43%  
2013     0.20%       to       0.25%       151,165       11.44       to       11.42       1,728,409       1.48%       5.17%       to       5.12%  
2012     0.20%       to       0.25%       151,926       10.87       to       10.86       1,651,835       1.44%       6.21%       to       6.15%  

VIP Growth Opportunities Portfolio - Service Class (FGOS)

 

2016     0.00%       to       0.25%       16,574       22.69       to       20.45       351,314       0.21%       0.25%       to       0.00%  
2015     0.00%       to       0.25%       20,793       22.63       to       20.45       437,298       0.01%       5.48%       to       5.22%  
2014     0.00%       to       0.25%       176,408       21.45       to       19.43       3,137,228       0.14%       12.10%       to       11.82%  
2013     0.00%       to       0.25%       143,931       19.14       to       17.38       2,307,620       0.22%       37.78%       to       37.43%  
2012     0.00%       to       0.25%       145,694       13.89       to       12.65       1,697,922       0.29%       19.46%       to       19.16%  

VIP Growth Portfolio - Service Class (FGS)

 

2016     0.00%       to       0.25%       3,646,974       30.12       to       17.04       86,005,841       0.00%       0.71%       to       0.46%  
2015     0.00%       to       0.25%       3,760,319       29.91       to       16.97       89,520,714       0.16%       7.05%       to       6.79%  
2014     0.00%       to       0.25%       4,030,458       27.94       to       15.89       89,015,373       0.10%       11.19%       to       10.91%  
2013     0.00%       to       0.25%       3,923,497       25.13       to       14.32       79,884,384       0.19%       36.20%       to       35.86%  
2012     0.00%       to       0.25%       4,158,645       18.45       to       10.54       62,818,069       0.49%       14.54%       to       14.26%  

VIP High Income Portfolio - Service Class (FHIS)

 

2016     0.00%       to       0.25%       607,022       20.34       to       24.96       13,483,822       5.26%       14.37%       to       14.09%  
2015     0.00%       to       0.25%       656,054       17.78       to       21.88       12,742,577       6.06%       -3.76%       to       -4.00%  
2014     0.00%       to       0.25%       617,230       18.48       to       22.79       12,531,665       5.59%       1.07%       to       0.82%  
2013     0.00%       to       0.25%       674,793       18.28       to       22.61       13,537,253       5.53%       5.87%       to       5.61%  
2012     0.00%       to       0.25%       826,148       17.27       to       21.41       15,701,047       5.66%       14.20%       to       13.91%  

VIP Index 500 Portfolio - Initial Class (FIP)

 

2016     0.20%       to       0.25%       2,755,616       18.41       to       18.32       50,693,063       1.45%       11.64%       to       11.58%  
2015     0.20%       to       0.25%       2,841,994       16.49       to       16.42       46,835,841       2.06%       1.13%       to       1.08%  
2014     0.20%       to       0.25%       2,135,022       16.30       to       16.25       34,793,037       1.59%       13.34%       to       13.29%  
2013     0.20%       to       0.25%       2,279,769       14.38       to       14.34       32,780,167       1.87%       31.98%       to       31.91%  
2012     0.20%       to       0.25%       2,582,139       10.90       to       10.87       28,133,397       2.18%       15.68%       to       15.63%  

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

 

2016     0.00%       to       0.25%       10,948,211       17.40       to       16.82       186,155,320       2.38%       4.63%       to       4.37%  
2015     0.00%       to       0.25%       10,467,562       16.63       to       16.11       170,471,100       2.56%       -0.71%       to       -0.95%  
2014     0.00%       to       0.25%       9,237,349       16.75       to       16.27       151,948,959       4.79%       5.75%       to       5.49%  
2013     0.00%       to       0.25%       2,366,422       15.84       to       15.42       36,825,540       2.51%       -1.89%       to       -2.13%  
2012     0.00%       to       0.25%       2,090,637       16.14       to       15.76       33,296,402       2.31%       5.77%       to       5.50%  

VIP Mid Cap Portfolio - Service Class (FMCS)

 

2016     0.00%       to       0.25%       843,557       48.14       to       46.52       40,121,821       0.40%       12.11%       to       11.83%  
2015     0.00%       to       0.25%       977,992       42.94       to       41.60       41,543,203       0.36%       -1.50%       to       -1.75%  
2014     0.00%       to       0.25%       1,164,190       43.59       to       42.34       50,266,013       0.16%       6.20%       to       5.93%  
2013     0.00%       to       0.25%       1,214,517       41.05       to       39.97       49,432,238       0.40%       36.06%       to       35.72%  
2012     0.00%       to       0.25%       1,383,310       30.17       to       29.45       41,391,524       0.50%       14.75%       to       14.46%  

VIP Money Market Portfolio - Initial Class (FMMP)

 

2016     0.20%       to       0.25%       935,135           10.00       9,352,900       0.06%           0.00% **** 

VIP Overseas Portfolio - Service Class (FOS)

 

2016     0.00%       to       0.25%       778,504       20.46       to       15.19       15,330,538       1.31%       -5.12%       to       -5.36%  
2015     0.00%       to       0.25%       882,090       21.56       to       16.05       18,130,581       1.45%       3.49%       to       3.23%  
2014     0.00%       to       0.25%       527,024       20.84       to       15.54       9,627,274       1.18%       -8.16%       to       -8.39%  
2013     0.00%       to       0.25%       587,917       22.69       to       16.97       11,686,468       1.01%       30.38%       to       30.05%  
2012     0.00%       to       0.25%       898,979       17.40       to       13.05       13,225,058       1.63%       20.54%       to       20.24%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

VIP Value Strategies Portfolio - Service Class (FVSS)

 

2016     0.00%       to       0.25%       121,726       28.27       to       27.25       3,438,169       1.04%       9.48%       to       9.21%  
2015     0.00%       to       0.25%       133,932       25.82       to       24.95       3,457,479       0.74%       -3.05%       to       -3.30%  
2014     0.00%       to       0.10%       210,258       26.63       to       26.30       5,579,423       0.96%       6.69%       to       6.59%  
2013     0.00%       to       0.25%       208,874       24.96       to       24.24       5,197,182       0.85%       30.44%       to       30.12%  
2012     0.00%       to       0.25%       214,480       19.14       to       18.63       4,094,123       0.49%       27.10%       to       26.78%  

VIP Fidelity VIP Freedom Fund 2005 Portfolio - Service Class (FF05S)

 

2016     0.20%       to       0.25%       25,154       13.20       to       13.16       331,860       1.68%       4.68%       to       4.63%  
2015     0.20%       to       0.25%       13,584       12.61       to       12.58       171,219       2.28%       -0.55%       to       -0.59%  
2014     0.20%       to       0.25%       7,230       12.68       to       12.65       91,635       2.81%       3.98%       to       3.92%  
2013     0.20%       to       0.25%       2,444       12.19       to       12.17       29,794       0.05%       9.38%       to       9.32%  

VIP Fidelity VIP Freedom Fund 2015 Portfolio - Service Class (FF15S)

 

2016     0.00%       to       0.25%       559,667       14.78       to       14.46       8,116,942       1.35%       5.81%       to       5.55%  
2015     0.00%       to       0.25%       785,176       13.97       to       13.70       10,782,045       1.88%       -0.44%       to       -0.68%  
2014     0.00%       to       0.25%       660,580       14.03       to       13.80       9,131,177       1.73%       4.63%       to       4.37%  
2013     0.00%       to       0.25%       560,735       13.41       to       13.22       7,423,685       2.10%       14.24%       to       13.96%  
2012     0.00%       to       0.25%       391,232       11.74       to       11.60       4,546,241       2.15%       12.13%       to       11.85%  

VIP Fidelity VIP Freedom Fund 2025 Portfolio - Service Class (FF25S)

 

2016     0.00%       to       0.25%       1,193,459       15.24       to       14.91       17,836,355       1.59%       6.11%       to       5.85%  
2015     0.00%       to       0.25%       974,642       14.36       to       14.09       13,753,120       1.84%       -0.36%       to       -0.61%  
2014     0.00%       to       0.25%       769,831       14.41       to       14.17       10,931,160       1.78%       4.98%       to       4.72%  
2013     0.00%       to       0.25%       585,943       13.73       to       13.53       7,940,480       1.91%       19.89%       to       19.59%  
2012     0.00%       to       0.25%       593,356       11.45       to       11.32       6,719,690       2.04%       14.97%       to       14.68%  

VIP Fidelity VIP Freedom Fund 2040 Portfolio - Service Class (FF40S)

 

2016     0.00%       to       0.25%       507,853       16.91       to       16.63       8,463,559       1.31%       6.75%       to       6.48%  
2015     0.00%       to       0.25%       429,474       15.84       to       15.62       6,716,605       1.63%       -0.35%       to       -0.60%  
2014     0.00%       to       0.25%       358,910       15.90       to       15.71       5,646,780       1.51%       4.83%       to       4.57%  
2013     0.00%       to       0.25%       324,799       15.16       to       15.02       4,884,677       1.68%       25.16%       to       24.85%  
2012     0.00%       to       0.25%       258,702       12.11       to       12.03       3,115,259       2.29%       16.88%       to       16.59%  

Mid Cap Value- Institutional Shares (GVMCE)

 

2016     0.20%       to       0.25%       646,194       37.97       to       37.70       24,384,347       0.95%       13.30%       to       13.25%  
2015     0.20%       to       0.25%       1,165,986       33.51       to       33.29       38,868,918       0.34%       -9.42%       to       -9.47%  
2014     0.10%       to       0.25%       1,722,307       37.46       to       36.77       63,498,186       1.01%       13.46%       to       13.29%  
2013     0.10%       to       0.25%       1,889,614       33.01       to       32.46       61,475,627       0.90%       32.76%       to       32.56%  
2012     0.10%       to       0.25%       1,843,696       24.87       to       24.48       45,244,297       1.16%       18.35%       to       18.17%  

Goldman Sachs Structured Small Cap Equity Fund (GVCSE)

 

2016     0.00%       to       0.25%       35,339       16.09       to       15.95       567,983       0.78%       23.20%       to       22.89%  
2015     0.00%       to       0.25%       4,569       13.06       to       12.98       59,353       0.39%       -2.13%       to       -2.37%  
2014     0.00%       to       0.25%       2,986       13.35       to       13.29       39,722       0.96%       6.93%       to       6.66%  

VIT Growth Opportunities Fund - Service Shares (GVGOPS)

 

2016     0.00%       to       0.25%       85,501       14.87       to       14.66       1,254,544       0.00%       1.42%       to       1.17%  
2015     0.00%       to       0.25%       98,136       14.66       to       14.49       1,422,670       0.00%       -5.20%       to       -5.44%  
2014     0.00%       to       0.25%       82,502       15.46       to       15.32       1,264,559       0.00%       11.10%       to       10.82%  
2013     0.00%       to       0.25%       44,812       13.92       to       13.83       619,638       0.00%       32.20%       to       31.87%  
2012     0.00%       to       0.25%       4,758       10.53       to       10.49       49,922       0.00%       19.43%       to       19.13%  

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

 

2016         0.00%       1,580           11.96       18,901       0.21%           4.34%  
2015         0.00%       2,301           11.47       26,382       0.07%           -5.82%  
2014         0.00%       3,054           12.17       37,178       0.03%           3.95%  
2013         0.00%       3,565           11.71       41,751       0.10%           13.57%  
2012         0.00%       92           10.31       949       0.00%           3.12% **** 

ClearBridge Variable Small Cap Growth Portfolio - Class I (SBVSG)

 

2016     0.00%       to       0.25%       634,718       19.67       to       19.22       12,235,290       0.00%       5.80%       to       5.54%  
2015     0.00%       to       0.25%       614,965       18.59       to       18.21       11,222,935       0.00%       -4.37%       to       -4.61%  
2014     0.00%       to       0.25%       472,936       19.44       to       19.09       9,039,455       0.00%       4.08%       to       3.82%  
2013     0.00%       to       0.25%       334,875       18.68       to       18.39       6,165,317       0.04%       47.05%       to       46.68%  
2012     0.00%       to       0.25%       168,989       12.70       to       12.54       2,120,145       0.55%       19.43%       to       19.13%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Baron Growth Opportunities Fund Service Class (BNCAI)

 

2016     0.00%       to       0.25%       151,250       37.84       to       36.51       5,538,114       0.42%       5.57%       to       5.31%  
2015     0.00%       to       0.25%       219,509       35.84       to       34.67       7,628,457       0.00%       -4.77%       to       -5.01%  
2014     0.00%       to       0.25%       281,384       37.64       to       36.49       10,321,115       0.19%       4.85%       to       4.59%  
2013     0.00%       to       0.25%       303,601       35.89       to       34.89       10,646,512       0.43%       40.06%       to       39.71%  
2012     0.00%       to       0.25%       404,574       25.63       to       24.97       10,140,811       1.08%       18.24%       to       17.95%  

Capital Appreciation Fund/VA - Non-Service Shares (OVGR)

 

2016     0.00%       to       0.25%       604,021       29.94       to       16.95       10,273,193       0.42%       -2.20%       to       -2.45%  
2015     0.00%       to       0.25%       701,016       30.62       to       17.37       12,220,538       0.09%       3.54%       to       3.28%  
2014     0.00%       to       0.25%       914,523       29.57       to       16.82       15,918,333       0.46%       15.41%       to       15.12%  
2013     0.00%       to       0.25%       1,162,020       25.62       to       14.61       17,494,571       0.96%       29.74%       to       29.42%  
2012     0.00%       to       0.25%       1,524,196       19.75       to       11.29       17,867,476       0.68%       14.12%       to       13.83%  

Global Securities Fund/VA - Non-Service Shares (OVGS)

 

2016     0.00%       to       0.25%       3,013,243       23.41       to       22.45       69,044,951       1.05%       0.08%       to       -0.17%  
2015     0.00%       to       0.25%       3,251,249       23.39       to       22.49       74,591,145       1.28%       3.94%       to       3.68%  
2014     0.00%       to       0.25%       3,457,910       22.50       to       21.69       76,402,764       1.18%       2.29%       to       2.04%  
2013     0.00%       to       0.25%       2,717,740       22.00       to       21.26       58,406,310       1.38%       27.31%       to       26.99%  
2012     0.00%       to       0.25%       2,734,473       17.28       to       16.74       46,222,872       2.20%       21.26%       to       20.96%  

International Growth Fund/VA - Non-Service Shares (OVIG)

 

2016     0.00%       to       0.25%       1,248,548       10.88       to       10.78       13,484,747       1.14%       -2.12%       to       -2.36%  
2015     0.00%       to       0.25%       567,662       11.11       to       11.04       6,271,624       1.20%       3.43%       to       3.17%  
2014     0.00%       to       0.25%       290,603       10.74       to       10.70       3,110,183       1.26%       -7.22%       to       -7.45%  
2013     0.00%       to       0.25%       51,327       11.58       to       11.56       593,525       0.00%       15.80%       to       15.60% **** 

Main Street Fund(R)/VA - Non-Service Shares (OVGI)

 

2016     0.00%       to       0.25%       1,255,013       26.98       to       22.78       32,835,661       1.10%       11.62%       to       11.34%  
2015     0.00%       to       0.25%       1,317,469       24.17       to       20.46       30,977,868       0.93%       3.33%       to       3.07%  
2014     0.00%       to       0.25%       1,408,467       23.39       to       19.85       32,046,995       0.83%       10.70%       to       10.43%  
2013     0.00%       to       0.25%       1,526,979       21.13       to       17.97       31,396,294       1.10%       31.77%       to       31.44%  
2012     0.00%       to       0.25%       1,674,156       16.04       to       13.67       26,173,622       0.95%       16.87%       to       16.58%  

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

 

2016         0.00%       160,970           44.05       7,090,228       0.52%           18.05%  
2015         0.00%       177,013           37.31       6,604,590       0.86%           -5.90%  
2014         0.00%       181,616           39.65       7,201,116       0.85%           11.93%  
2013         0.00%       188,218           35.42       6,667,259       0.96%           41.01%  
2012         0.00%       174,944           25.12       4,394,613       0.57%           17.99%  

Discovery Mid Cap Growth Fund/VA - Non-Service Shares (OVAG)

 

2016     0.00%       to       0.25%       1,041,368       26.74       to       14.40       24,141,291       0.00%       2.33%       to       2.08%  
2015     0.00%       to       0.25%       1,117,680       26.13       to       14.11       25,440,131       0.00%       6.61%       to       6.34%  
2014     0.00%       to       0.25%       1,275,602       24.51       to       13.27       26,730,869       0.00%       5.78%       to       5.52%  
2013     0.00%       to       0.25%       1,422,801       23.17       to       12.57       28,081,043       0.01%       35.98%       to       35.64%  
2012     0.00%       to       0.25%       1,587,180       17.04       to       9.27       23,239,276       0.00%       16.45%       to       16.16%  

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

 

2016         0.00%       1,230,121           14.25       17,527,847       4.88%           6.53%  
2015         0.00%       1,411,021           13.38       18,872,561       5.97%           -2.26%  
2014         0.00%       1,555,119           13.68       21,280,889       4.50%           2.84%  
2013         0.00%       977,067           13.31       13,001,496       2.82%           -0.13%  
2012         0.00%       140,055           13.32       1,866,129       6.52%           13.53%  

All Asset Portfolio - Administrative Class (PMVAAA)

 

2016     0.00%       to       0.25%       1,190,145       18.99       to       18.39       22,052,007       2.69%       12.93%       to       12.65%  
2015     0.00%       to       0.25%       1,268,463       16.81       to       16.33       20,816,920       3.21%       -8.99%       to       -9.21%  
2014     0.00%       to       0.25%       1,513,875       18.47       to       17.99       27,369,965       5.30%       0.47%       to       0.22%  
2013     0.00%       to       0.25%       1,466,038       18.39       to       17.95       26,438,388       4.71%       0.27%       to       0.02%  
2012     0.00%       to       0.25%       1,420,335       18.34       to       17.94       25,602,177       6.62%       14.95%       to       14.66%  

CommodityRealReturn(R)Strategy Portfolio - Administrative Class (PMVRSA)

 

2016         0.00%       26,588           6.36       169,022       1.17%           15.16%  
2015         0.00%       8,994           5.52       49,651       2.61%           -25.70%  
2014         0.00%       4,998           7.43       37,137       0.16%           -25.70% **** 

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)

 

2016     0.00%       to       0.25%       108,659       12.45       to       12.18       1,334,432       1.18%       3.01%       to       2.75%  
2015     0.00%       to       0.25%       160,948       12.08       to       11.85       1,934,119       1.51%       -7.08%       to       -7.31%  
2014     0.00%       to       0.25%       106,364       13.00       to       12.79       1,375,723       2.13%       0.40%       to       0.15%  
2013     0.00%       to       0.25%       231,139       12.95       to       12.77       2,986,586       1.83%       -6.47%       to       -6.71%  
2012     0.00%       to       0.25%       154,021       13.85       to       13.69       2,127,709       5.68%       5.50%       to       5.24%  

Long-Term U.S. Government Portfolio - Administrative Class (PMVLGA)

 

2016     0.00%       to       0.25%       87,777       15.17       to       14.92       1,312,706       2.00%       0.68%       to       0.43%  
2015     0.00%       to       0.25%       183,456       15.07       to       14.85       2,725,551       2.05%       -1.40%       to       -1.65%  
2014     0.20%       to       0.25%       167,933       15.14       to       15.10       2,536,398       2.26%       23.76%       to       23.70%  
2013     0.20%       to       0.25%       147,258       12.23       to       12.21       1,798,035       2.48%       -13.12%       to       -13.17%  
2012     0.20%       to       0.25%       29,236       14.08       to       14.06       411,188       2.14%       4.23%       to       4.18%  

Low Duration Portfolio - Administrative Class (PMVLDA)

 

2016     0.00%       to       0.25%       2,612,115       15.60       to       15.05       39,611,897       1.49%       1.41%       to       1.15%  
2015     0.00%       to       0.25%       3,359,878       15.39       to       14.88       50,361,877       3.20%       0.31%       to       0.06%  
2014     0.00%       to       0.25%       4,315,631       15.34       to       14.87       64,586,899       1.13%       0.85%       to       0.60%  
2013     0.00%       to       0.25%       4,244,504       15.21       to       14.79       63,117,103       1.42%       -0.13%       to       -0.38%  
2012     0.00%       to       0.25%       3,426,127       15.23       to       14.84       51,151,896       1.93%       5.86%       to       5.59%  

Real Return Portfolio - Administrative Class (PMVRRA)

 

2016     0.00%       to       0.25%       2,947,950       19.36       to       18.67       55,376,645       2.28%       5.19%       to       4.92%  
2015     0.00%       to       0.25%       3,850,039       18.40       to       17.80       68,846,366       3.66%       -2.70%       to       -2.95%  
2014     0.00%       to       0.25%       5,207,734       18.91       to       18.34       96,011,944       1.42%       3.09%       to       2.83%  
2013     0.00%       to       0.25%       5,409,910       18.35       to       17.83       96,923,936       1.64%       -9.22%       to       -9.44%  
2012     0.00%       to       0.25%       5,891,396       20.21       to       19.69       116,545,395       1.08%       8.75%       to       8.48%  

Total Return Portfolio - Administrative Class (PMVTRA)

 

2016     0.00%       to       0.25%       3,991,985       20.37       to       19.65       79,322,917       2.08%       2.69%       to       2.43%  
2015     0.00%       to       0.25%       4,440,358       19.84       to       19.19       85,963,454       4.31%       0.44%       to       0.18%  
2014     0.00%       to       0.25%       8,771,801       19.75       to       19.15       168,922,532       1.89%       4.27%       to       4.01%  
2013     0.00%       to       0.25%       22,671,205       18.94       to       18.41       421,168,048       2.20%       -1.96%       to       -2.20%  
2012     0.00%       to       0.25%       22,903,897       19.32       to       18.83       434,553,540       2.57%       9.60%       to       9.33%  

Pioneer Emerging Markets VCT Portfolio - Class I Shares (PIVEMI)

 

2016     0.00%       to       0.25%       65,304       5.86       to       5.72       379,312       0.51%       6.31%       to       6.05%  
2015     0.00%       to       0.25%       120,357       5.51       to       5.40       660,266       3.57%       -15.36%       to       -15.57%  
2014     0.00%       to       0.25%       127,281       6.51       to       6.39       824,010       0.61%       -12.56%       to       -12.77%  
2013     0.00%       to       0.25%       198,081       7.45       to       7.33       1,462,804       1.13%       -1.97%       to       -2.21%  
2012     0.00%       to       0.25%       209,227       7.59       to       7.50       1,577,304       0.49%       11.97%       to       11.69%  

Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class I (PIHYB1)

 

2016     0.00%       to       0.25%       162,466       29.96       to       28.90       4,732,309       4.91%       14.25%       to       13.96%  
2015     0.00%       to       0.25%       154,355       26.22       to       25.36       3,941,198       4.78%       -3.94%       to       -4.18%  
2014     0.00%       to       0.25%       204,952       27.30       to       26.47       5,470,578       4.72%       0.08%       to       -0.17%  
2013     0.00%       to       0.25%       238,255       27.27       to       26.51       6,364,135       5.22%       12.05%       to       11.77%  
2012     0.00%       to       0.25%       320,179       24.34       to       23.72       7,633,325       5.53%       16.05%       to       15.76%  

VT Growth & Income Fund: Class IB (PVGIB)

 

2016         0.00%       36,456           26.14       953,117       1.74%           15.02%  
2015         0.00%       41,318           22.73       939,191       1.81%           -7.53%  
2014         0.00%       44,044           24.58       1,082,646       1.18%           10.73%  
2013         0.00%       44,765           22.20       993,714       1.71%           35.68%  
2012         0.00%       46,906           16.36       767,445       1.65%           19.14%  

VT Growth Opportunities Fund: Class IB (PVGOB)

 

2016         0.00%       114,741           10.14       1,163,974       0.00%           1.44% **** 

VT International Equity Fund: Class IB (PVTIGB)

 

2016         0.00%       39,642           20.96       831,053       3.39%           -2.45%  
2015         0.00%       45,227           21.49       971,980       1.16%           0.14%  
2014         0.00%       51,810           21.46       1,111,894       0.87%           -6.78%  
2013         0.00%       49,608           23.02       1,142,034       1.43%           28.07%  
2012         0.00%       53,095           17.98       954,407       2.17%           21.92%  

VT Small Cap Value Fund: Class IB (PVTSCB)

 

2016     0.00%       to       0.25%       57,699       17.68       to       17.28       998,748       1.18%       27.49%       to       27.18%  
2015     0.00%       to       0.25%       61,145       13.87       to       13.58       832,325       0.82%       -4.24%       to       -4.48%  
2014     0.00%       to       0.25%       51,730       14.48       to       14.22       736,687       0.32%       3.43%       to       3.18%  
2013     0.20%       to       0.25%       720       13.83       to       13.78       9,931       0.78%       39.33%       to       39.26%  
2012     0.20%       to       0.25%       299       9.92       to       9.90       2,964       0.38%       17.25%       to       17.19%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

VT Voyager Fund: Class IB (obsolete) (PVTVB)

 

2015         0.00%       53,180           25.36       1,348,563       1.14%           -6.11%  
2014         0.00%       59,171           27.01       1,598,169       0.74%           9.72%  
2013         0.00%       80,179           24.62       1,973,714       0.75%           43.72%  
2012         0.00%       66,439           17.13       1,137,933       0.33%           14.23%  

VI Growth and Income Fund - Series I Shares (ACGI)

 

2016     0.00%       to       0.25%       298,376       19.91       to       19.58       5,846,925       1.13%       19.69%       to       19.40%  
2015     0.00%       to       0.25%       288,247       16.63       to       16.40       4,730,237       2.87%       -3.06%       to       -3.30%  
2014     0.00%       to       0.25%       312,024       17.16       to       16.96       5,294,775       1.85%       10.28%       to       10.00%  
2013     0.00%       to       0.25%       286,045       15.56       to       15.42       4,412,360       1.50%       34.08%       to       33.75%  
2012     0.00%       to       0.25%       306,238       11.61       to       11.53       3,531,500       1.77%       14.63%       to       14.35%  

VI American Franchise Fund - Series I Shares (ACEG)

 

2016         0.00%       69,572           15.91       1,106,971       0.00%           2.27%  
2015         0.00%       85,010           15.56       1,322,616       0.00%           5.01%  
2014         0.00%       74,837           14.82       1,108,824       0.04%           8.44%  
2013         0.00%       86,923           13.66       1,187,662       0.43%           40.14%  
2012         0.00%       82,490           9.75       804,283       0.00%           -2.50% **** 

VI Value Opportunities Fund - Series I Shares (AVBVI)

 

2016         0.25%       21           22.67       476       0.09%           18.04%  
2015         0.25%       496           19.21       9,527       2.85%           -10.63%  
2014     0.10%       to       0.25%       24,969       21.89       to       21.49       544,288       1.44%       6.51%       to       6.35%  
2013     0.10%       to       0.25%       25,874       20.55       to       20.21       529,924       1.18%       33.62%       to       33.42%  
2012     0.10%       to       0.25%       45,186       15.38       to       15.15       691,134       1.42%       17.59%       to       17.41%  

VI High Yield Fund - Series I Shares (AVHY1)

 

2016     0.00%       to       0.25%       985,388       14.73       to       14.49       14,318,218       4.22%       11.21%       to       10.94%  
2015     0.00%       to       0.25%       1,054,103       13.25       to       13.06       13,801,155       5.24%       -3.17%       to       -3.41%  
2014     0.00%       to       0.25%       1,143,753       13.68       to       13.52       15,496,752       4.12%       1.73%       to       1.47%  
2013     0.00%       to       0.25%       781,618       13.45       to       13.33       10,432,057       4.58%       7.01%       to       6.74%  
2012     0.00%       to       0.25%       791,083       12.57       to       12.49       9,888,749       5.34%       17.17%       to       16.88%  

VI International Growth Fund - Series I Shares (AVIE)

 

2016     0.00%       to       0.25%       1,875,898       23.57       to       22.84       43,042,681       1.41%       -0.45%       to       -0.70%  
2015     0.00%       to       0.25%       2,038,231       23.68       to       23.00       47,081,685       1.31%       -2.34%       to       -2.59%  
2014     0.00%       to       0.25%       2,475,931       24.25       to       23.61       58,655,441       1.60%       0.33%       to       0.08%  
2013     0.00%       to       0.25%       2,336,984       24.17       to       23.59       55,292,311       1.27%       19.01%       to       18.72%  
2012     0.00%       to       0.25%       2,122,930       20.31       to       19.87       42,304,002       1.49%       15.53%       to       15.24%  

VI Mid Cap Core Equity Fund: Series I Shares (AVMCCI)

 

2016     0.00%       to       0.25%       15,984       21.97       to       21.38       345,514       0.09%       13.43%       to       13.15%  
2015     0.00%       to       0.25%       21,154       19.36       to       18.89       402,728       0.34%       -4.03%       to       -4.27%  
2014     0.00%       to       0.25%       22,264       20.18       to       19.74       442,463       0.04%       4.43%       to       4.17%  
2013     0.00%       to       0.25%       71,330       19.32       to       18.95       1,353,655       0.71%       28.81%       to       28.49%  
2012     0.00%       to       0.25%       66,547       15.00       to       14.75       981,528       0.10%       10.96%       to       10.68%  

VI Small Cap Equity Fund - Series I Shares (AVSCE)

 

2016     0.20%       to       0.25%       23,157       11.22       to       11.20       259,411       0.00%       11.84%       to       11.79%  
2015     0.20%       to       0.25%       19,997       10.03       to       10.02       200,390       0.00%       -5.71%       to       -5.75%  

Micro-Cap Portfolio - Investment Class (ROCMC)

 

2016     0.00%       to       0.25%       199,081       32.53       to       31.38       6,274,296       0.72%       19.71%       to       19.41%  
2015     0.00%       to       0.25%       261,835       27.17       to       26.28       6,917,448       0.00%       -12.46%       to       -12.68%  
2014     0.00%       to       0.25%       372,394       31.04       to       30.09       11,279,156       0.00%       -3.58%       to       -3.82%  
2013     0.00%       to       0.25%       803,412       32.19       to       31.29       25,228,360       0.41%       20.99%       to       20.68%  
2012     0.00%       to       0.25%       1,529,776       26.60       to       25.93       39,796,745       0.00%       7.60%       to       7.34%  

Small-Cap Portfolio - Investment Class (ROCSC)

 

2012     0.20%       to       0.25%       184,649       12.89       to       12.85       2,378,673       0.10%       12.27%       to       12.22%  

Variable Fund - Multi-Hedge Strategies (RVARS)

 

2016         0.00%       50,046           10.60       530,647       0.11%           -0.48%  
2015         0.00%       32,120           10.65       342,230       0.72%           1.85%  
2014         0.00%       75,501           10.46       789,841       0.00%           4.66%  
2013         0.00%       16,822           10.00       168,146       0.00%           -0.04% **** 

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Equity Income Portfolio - II (TREI2)

 

2016     0.00%       to       0.25%       959,441       29.88       to       28.83       27,774,880       1.78%       18.85%       to       18.56%  
2015     0.00%       to       0.25%       2,107,227       25.14       to       24.32       51,431,936       1.54%       -7.11%       to       -7.34%  
2014     0.00%       to       0.25%       2,807,870       27.07       to       26.24       73,939,912       1.51%       7.10%       to       6.84%  
2013     0.00%       to       0.25%       2,898,250       25.27       to       24.57       71,406,961       1.33%       29.41%       to       29.08%  
2012     0.00%       to       0.25%       2,782,361       19.53       to       19.03       53,102,114       1.93%       16.92%       to       16.63%  

Health Sciences Portfolio - II (TRHS2)

 

2016     0.00%       to       0.25%       719,025       30.95       to       30.26       22,036,233       0.00%       -10.72%       to       -10.94%  
2015     0.00%       to       0.25%       999,696       34.66       to       33.97       34,363,964       0.00%       12.47%       to       12.19%  
2014     0.00%       to       0.25%       1,018,380       30.82       to       30.28       31,136,224       0.00%       31.22%       to       30.90%  
2013     0.00%       to       0.25%       898,513       23.48       to       23.13       20,956,747       0.00%       50.51%       to       50.14%  
2012     0.00%       to       0.25%       685,053       15.60       to       15.41       10,624,734       0.00%       31.00%       to       30.67%  

Limited-Term Bond Portfolio (TRLT1)

 

2016     0.00%       to       0.25%       1,472,159       10.63       to       10.47       15,419,311       1.36%       1.37%       to       1.11%  
2015     0.00%       to       0.25%       2,318,939       10.49       to       10.35       24,014,768       1.15%       0.30%       to       0.05%  
2014     0.00%       to       0.25%       1,654,482       10.45       to       10.35       17,125,379       1.25%       0.64%       to       0.39%  
2013     0.00%       to       0.25%       1,416,096       10.39       to       10.31       14,598,839       1.44%       0.13%       to       -0.12%  
2012     0.00%       to       0.25%       230,839       10.37       to       10.32       2,382,554       2.05%       2.47%       to       2.22%  

Mid-Cap Growth Portfolio - II (TRMCG2)

 

2016     0.20%       to       0.25%       458,552       50.20       to       49.84       22,859,346       0.00%       5.82%       to       5.77%  
2015     0.20%       to       0.25%       442,133       47.43       to       47.12       20,838,600       0.00%       6.06%       to       6.01%  
2014     0.10%       to       0.25%       770,625       45.28       to       44.45       34,378,988       0.00%       12.71%       to       12.54%  
2013     0.10%       to       0.25%       767,584       40.17       to       39.50       30,393,507       0.00%       36.26%       to       36.06%  
2012     0.10%       to       0.25%       815,148       29.48       to       29.03       23,729,275       0.00%       13.50%       to       13.33%  

New America Growth Portfolio (TRNAG1)

 

2016     0.00%       to       0.25%       1,270,514       28.39       to       27.51       35,110,559       0.04%       1.31%       to       1.06%  
2015     0.00%       to       0.25%       1,528,987       28.02       to       27.22       41,821,955       0.00%       8.60%       to       8.33%  
2014     0.00%       to       0.25%       1,705,856       25.80       to       25.13       43,114,539       0.00%       9.33%       to       9.06%  
2013     0.00%       to       0.25%       1,851,100       23.60       to       23.04       42,869,299       0.00%       38.01%       to       37.66%  
2012     0.00%       to       0.25%       2,050,836       17.10       to       16.74       34,439,125       0.56%       13.12%       to       12.84%  

Personal Strategy Balanced Portfolio (TRPSB1)

 

2016     0.00%       to       0.25%       234,318       17.39       to       16.96       3,981,119       1.71%       6.45%       to       6.19%  
2015     0.00%       to       0.25%       231,861       16.34       to       15.97       3,704,524       1.73%       -0.05%       to       -0.30%  
2014     0.00%       to       0.25%       255,954       16.34       to       16.02       4,113,269       1.68%       5.20%       to       4.94%  
2013     0.00%       to       0.25%       250,814       15.54       to       15.26       3,840,044       1.53%       17.93%       to       17.63%  
2012     0.00%       to       0.25%       306,888       13.17       to       12.97       3,988,841       1.90%       15.14%       to       14.86%  

Blue Chip Growth Portfolio (TRBCGP)

 

2016     0.00%       to       0.25%       2,741,163       17.51       to       17.32       47,617,148       0.00%       0.78%       to       0.53%  
2015     0.00%       to       0.25%       2,425,545       17.37       to       17.23       41,876,661       0.00%       11.05%       to       10.77%  
2014     0.00%       to       0.25%       1,776,681       15.64       to       15.56       27,676,375       0.00%       9.17%       to       8.89%  
2013     0.00%       to       0.25%       578,648       14.33       to       14.29       8,267,392       0.08%       41.15%       to       40.80%  
2012     0.20%       to       0.25%       7,887           10.15       80,031       0.14%           1.46% **** 

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

 

2016     0.00%       to       0.25%       232,376       31.71       to       38.74       7,894,612       0.45%       0.10%       to       -0.15%  
2015     0.00%       to       0.25%       238,851       31.68       to       38.79       8,091,073       0.58%       -13.99%       to       -14.21%  
2014     0.00%       to       0.25%       336,325       36.83       to       45.22       14,009,036       0.51%       -0.41%       to       -0.66%  
2013     0.00%       to       0.25%       354,185       36.98       to       45.52       14,745,182       1.64%       12.02%       to       11.74%  
2012     0.00%       to       0.25%       421,121       33.02       to       40.74       15,749,369       0.00%       29.81%       to       29.48%  

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

 

2016     0.00%       to       0.25%       890,301       32.39       to       37.44       32,061,348       0.38%       43.71%       to       43.35%  
2015     0.00%       to       0.25%       891,836       22.54       to       26.12       22,688,388       0.03%       -33.45%       to       -33.61%  
2014     0.00%       to       0.25%       809,893       33.87       to       39.34       31,040,065       0.10%       -19.10%       to       -19.30%  
2013     0.00%       to       0.25%       877,892       41.86       to       48.75       42,783,280       0.72%       10.53%       to       10.26%  
2012     0.00%       to       0.25%       956,384       37.87       to       44.21       42,827,287       0.60%       3.39%       to       3.13%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Variable Insurance Fund - Balanced Portfolio (VVB)

 

2016     0.20%       to       0.25%       525,315       17.80       to       17.72       9,344,611       2.34%       10.79%       to       10.74%  
2015     0.20%       to       0.25%       489,833       16.06       to       16.00       7,865,315       2.42%       -0.11%       to       -0.16%  
2014     0.20%       to       0.25%       442,815       16.08       to       16.03       7,118,439       2.09%       9.62%       to       9.57%  
2013     0.20%       to       0.25%       418,598       14.67       to       14.63       6,138,829       2.15%       19.64%       to       19.59%  
2012     0.20%       to       0.25%       371,867       12.26       to       12.23       4,558,352       2.42%       12.34%       to       12.28%  

Insurance Fund - Capital Growth Portfolio (VVCG)

 

2016     0.20%       to       0.25%       1,075,747       10.98       to       10.97       11,812,030       1.14%       10.62%       to       10.57%  
2015     0.20%       to       0.25%       1,016,660       9.93       to       9.92       10,091,991       0.00%       -0.73%       to       -0.76% **** 

Variable Insurance Fund - Diversified Value Portfolio (VVDV)

 

2016     0.20%       to       0.25%       823,155       16.75       to       16.67       13,777,631       2.74%       12.74%       to       12.68%  
2015     0.20%       to       0.25%       942,963       14.85       to       14.80       14,000,476       2.55%       -2.65%       to       -2.70%  
2014     0.20%       to       0.25%       1,075,270       15.26       to       15.21       16,400,241       2.20%       9.61%       to       9.56%  
2013     0.20%       to       0.25%       1,192,808       13.92       to       13.88       16,598,693       2.14%       29.14%       to       29.07%  
2012     0.20%       to       0.25%       1,259,787       10.78       to       10.75       13,576,102       0.80%       16.27%       to       16.21%  

Variable Insurance Fund - International Portfolio (VVI)

 

2016     0.20%       to       0.25%       737,202       10.94       to       10.89       8,059,541       1.45%       1.67%       to       1.62%  
2015     0.20%       to       0.25%       867,678       10.76       to       10.72       9,330,551       0.88%       -0.97%       to       -1.02%  
2014     0.20%       to       0.25%       395,718       10.86       to       10.83       4,297,083       1.47%       -6.24%       to       -6.29%  
2013     0.20%       to       0.25%       468,254       11.59       to       11.55       5,423,630       1.38%       23.01%       to       22.95%  
2012     0.20%       to       0.25%       471,330       9.42       to       9.40       4,438,353       2.10%       19.90%       to       19.84%  

Variable Insurance Fund - Mid-Cap Index Portfolio (VVMCI)

 

2016     0.20%       to       0.25%       1,397,843       19.44       to       19.35       27,153,526       1.37%       10.89%       to       10.84%  
2015     0.20%       to       0.25%       1,540,845       17.53       to       17.46       26,993,273       0.79%       -1.63%       to       -1.68%  
2014     0.20%       to       0.25%       923,730       17.82       to       17.76       16,451,648       0.93%       13.37%       to       13.31%  
2013     0.20%       to       0.25%       1,014,767       15.72       to       15.67       15,943,070       0.97%       34.66%       to       34.59%  
2012     0.20%       to       0.25%       802,681       11.67       to       11.64       9,365,695       1.08%       15.58%       to       15.53%  

Variable Insurance Fund - REIT Index Portfolio (VVREI)

 

2016     0.20%       to       0.25%       479,306       19.25       to       19.19       9,220,808       2.47%       8.14%       to       8.09%  
2015     0.20%       to       0.25%       477,496       17.80       to       17.75       8,495,138       1.86%       2.02%       to       1.97%  
2014     0.20%       to       0.25%       554,659       17.44       to       17.41       9,673,146       2.98%       29.85%       to       29.78%  
2013     0.20%       to       0.25%       519,163       13.43       to       13.41       6,973,233       1.23%       2.13%       to       2.08%  
2012     0.20%       to       0.25%       140,656       13.15       to       13.14       1,850,006       2.07%       17.22%       to       17.17%  

Variable Insurance Fund - Short-Term Investment-Grade Portfolio (VVSTC)

 

2016     0.20%       to       0.25%       466,816       12.87       to       12.81       6,003,838       1.79%       2.51%       to       2.46%  
2015     0.20%       to       0.25%       439,398       12.55       to       12.50       5,513,186       1.68%       0.92%       to       0.87%  
2014     0.20%       to       0.25%       406,789       12.44       to       12.40       5,057,636       1.51%       1.55%       to       1.50%  
2013     0.20%       to       0.25%       384,564       12.25       to       12.21       4,708,426       2.05%       0.87%       to       0.82%  
2012     0.20%       to       0.25%       491,102       12.14       to       12.11       5,961,111       2.42%       4.21%       to       4.16%  

Variable Insurance Fund - Small Company Growth Portfolio (VVSCG)

 

2016     0.20%       to       0.25%       236,916       19.15       to       19.11       4,536,674       0.33%       14.71%       to       14.65%  
2015     0.20%       to       0.25%       240,856       16.70       to       16.67       4,021,049       0.37%       -2.95%       to       -2.99%  
2014     0.20%       to       0.25%       241,303       17.21       to       17.18       4,151,048       0.29%       3.17%       to       3.12%  
2013     0.20%       to       0.25%       268,075       16.68       to       16.66       4,470,014       0.00%       46.25%       to       46.18%  

Variable Insurance Fund - Total Bond Market Index Portfolio (VVHGB)

 

2016     0.20%       to       0.25%       1,957,890       11.72       to       11.68       22,938,055       2.14%       2.27%       to       2.22%  
2015     0.20%       to       0.25%       1,792,381       11.46       to       11.43       20,534,955       1.88%       0.13%       to       0.08%  
2014     0.20%       to       0.25%       1,395,545       11.45       to       11.42       15,968,097       2.04%       5.68%       to       5.63%  
2013     0.20%       to       0.25%       754,096       10.83       to       10.81       8,165,242       2.50%       -2.48%       to       -2.53%  
2012     0.20%       to       0.25%       658,202       11.11       to       11.09       7,308,939       2.82%       3.82%       to       3.76%  

Variable Insurance Portfolios - Asset Strategy (WRASP)

 

2016     0.00%       to       0.25%       572,683       13.37       to       13.07       7,622,325       0.56%       -2.57%       to       -2.81%  
2015     0.00%       to       0.25%       1,052,576       13.72       to       13.44       14,359,260       0.33%       -8.35%       to       -8.57%  
2014     0.00%       to       0.25%       996,762       14.97       to       14.70       14,876,200       0.49%       -5.26%       to       -5.50%  
2013     0.00%       to       0.25%       1,017,541       15.81       to       15.56       16,046,069       1.28%       25.13%       to       24.82%  
2012     0.00%       to       0.25%       1,146,952       12.63       to       12.47       14,446,242       1.12%       19.18%       to       18.88%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Variable Insurance Portfolios - Growth (WRGP)

 

2016     0.00%       to       0.25%       615,761       26.94       to       26.17       16,376,320       0.03%       1.22%       to       0.97%  
2015     0.00%       to       0.25%       726,824       26.62       to       25.92       19,112,081       0.07%       7.17%       to       6.90%  
2014     0.00%       to       0.25%       139,568       24.84       to       24.24       3,418,418       0.46%       11.81%       to       11.53%  
2013     0.00%       to       0.25%       157,563       22.21       to       21.74       3,445,317       0.38%       36.46%       to       36.12%  
2012     0.00%       to       0.25%       129,681       16.28       to       15.97       2,083,511       0.06%       12.74%       to       12.46%  

Variable Insurance Portfolios - High Income (WRHIP)

 

2016     0.00%       to       0.25%       2,885,082       13.34       to       13.19       38,252,688       7.49%       16.19%       to       15.90%  
2015     0.00%       to       0.25%       3,168,839       11.49       to       11.38       36,199,055       6.24%       -6.50%       to       -6.74%  
2014     0.00%       to       0.25%       3,581,446       12.28       to       12.20       43,822,048       5.21%       1.90%       to       1.65%  
2013     0.00%       to       0.25%       1,882,396       12.06       to       12.01       22,619,242       4.84%       10.50%       to       10.22%  
2012     0.00%       to       0.25%       1,192,471       10.91       to       10.89       12,993,224       0.10%       9.10%       to       8.92% **** 

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

 

2016     0.00%       to       0.25%       297,974       14.23       to       14.07       4,199,956       0.00%       6.12%       to       5.85%  
2015     0.00%       to       0.25%       497,206       13.41       to       13.29       6,616,270       0.00%       -5.78%       to       -6.01%  
2014     0.00%       to       0.25%       343,498       14.24       to       14.14       4,862,274       0.00%       7.87%       to       7.60%  
2013     0.00%       to       0.25%       142,575       13.20       to       13.14       1,876,397       0.00%       29.94%       to       29.61%  
2012     0.00%       to       0.25%       54,403       10.16       to       10.14       551,956       0.00%       1.56%       to       1.39% **** 

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

 

2016     0.00%       to       0.25%       390,460       22.70       to       22.04       8,724,567       1.05%       4.26%       to       4.01%  
2015     0.00%       to       0.25%       323,475       21.77       to       21.20       6,956,811       1.17%       4.78%       to       4.52%  
2014     0.00%       to       0.25%       387,600       20.78       to       20.28       8,001,317       0.90%       30.17%       to       29.84%  
2013     0.00%       to       0.25%       263,504       15.96       to       15.62       4,179,060       1.00%       1.13%       to       0.88%  
2012     0.00%       to       0.25%       166,858       15.78       to       15.48       2,612,179       0.74%       17.72%       to       17.42%  

Variable Insurance Portfolios - Science and Technology (WRSTP)

 

2016     0.00%       to       0.25%       651,961       20.90       to       20.42       13,447,888       0.00%       1.54%       to       1.29%  
2015     0.00%       to       0.25%       740,554       20.58       to       20.16       15,064,146       0.00%       -2.88%       to       -3.12%  
2014     0.00%       to       0.25%       811,657       21.19       to       20.81       17,025,165       0.00%       2.91%       to       2.65%  
2013     0.00%       to       0.25%       800,093       20.59       to       20.27       16,320,668       0.00%       56.38%       to       55.99%  
2012     0.00%       to       0.25%       368,902       13.17       to       13.00       4,814,961       0.00%       27.83%       to       27.51%  

Wells Fargo Variable Trust - VT Discovery Fund: Class 2 (SVDF)

 

2016     0.00%       to       0.25%       748,933       18.84       to       18.41       13,994,736       0.00%       7.65%       to       7.38%  
2015     0.00%       to       0.25%       938,219       17.50       to       17.15       16,264,113       0.00%       -1.46%       to       -1.71%  
2014     0.00%       to       0.25%       867,277       17.76       to       17.44       15,266,230       0.00%       0.36%       to       0.10%  
2013     0.00%       to       0.25%       850,849       17.70       to       17.43       14,938,000       0.01%       43.80%       to       43.44%  
2012     0.00%       to       0.25%       782,606       12.31       to       12.15       9,571,163       0.00%       17.74%       to       17.44%  

Advantage VT Opportunity Fund - Class 2 (SVOF)

 

2016     0.00%       to       0.25%       229,422       27.31       to       26.19       6,021,481       2.02%       12.23%       to       11.95%  
2015     0.00%       to       0.25%       234,040       24.33       to       23.40       5,486,988       0.13%       -3.08%       to       -3.33%  
2014     0.00%       to       0.25%       379,694       25.10       to       24.20       9,224,502       0.06%       10.42%       to       10.15%  
2013     0.00%       to       0.25%       451,113       22.73       to       21.97       9,949,773       0.20%       30.68%       to       30.35%  
2012     0.00%       to       0.25%       483,311       17.40       to       16.86       8,189,839       0.09%       15.52%       to       15.23%  

Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)

 

2016     0.00%       to       0.25%       270,148       17.32       to       16.92       4,612,821       0.00%       7.75%       to       7.48%  
2015     0.00%       to       0.25%       390,465       16.07       to       15.74       6,201,275       0.00%       -2.88%       to       -3.12%  
2014     0.00%       to       0.25%       389,785       16.55       to       16.25       6,377,957       0.00%       -1.88%       to       -2.12%  
2013     0.00%       to       0.25%       431,204       16.86       to       16.60       7,209,362       0.00%       50.23%       to       49.85%  
2012     0.00%       to       0.25%       712,536       11.23       to       11.08       7,928,009       0.00%       7.87%       to       7.60%  

Global Securities Fund/VA - Class 3 (obsolete) (OVGS3)

 

2013         0.00%       967,069           20.71       20,025,316       1.37%           27.34%  
2012         0.00%       957,445           16.26       15,569,771       2.16%           21.23%  

Templeton Developing Markets Securities Fund - Class 3 (obsolete) (FTVDM3)

 

2013         0.00%       201,488           19.12       3,852,366       2.07%           -0.97%  
2012         0.00%       218,972           19.31       4,227,747       1.42%           13.16%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Templeton Foreign Securities Fund - Class 3 (obsolete) (TIF3)

 

2013         0.00%       395,070           18.24       7,204,705       2.46%           22.98%  
2012         0.00%       366,253           14.83       5,431,168       2.90%           18.30%  

Templeton Global Bond Securities Fund - Class 3 (obsolete) (FTVGI3)

 

2013         0.00%       535,931           20.70       11,094,041       4.83%           1.64%  
2012         0.00%       606,188           20.37       12,346,451       6.28%           15.06%  

Calvert VP SRI Equity Portfolio (obsolete) (CVSSE)

 

2013     0.10%       to       0.25%       11,383       25.56       to       25.12       288,064       0.08%       30.92%       to       30.72%  
2012     0.10%       to       0.25%       12,766       19.52       to       19.22       246,571       0.09%       15.83%       to       15.66%  

Investors Growth Stock Series - Initial Class (obsolete) (MIGIC)

 

2014         0.00%       129,370           26.83       3,471,220       0.52%           11.45%  
2013         0.00%       156,129           24.07       3,758,750       0.64%           30.29%  
2012         0.00%       172,283           18.48       3,183,370       0.46%           16.97%  

Mid Cap Growth Portfolio- Class 1 (obsolete) (OGGO)

 

2013     0.10%       to       0.25%       125,039       32.67       to       32.12       4,036,164       0.06%       43.16%       to       42.94%  
2012     0.10%       to       0.25%       139,414       22.82       to       22.47       3,145,832       0.00%       15.99%       to       15.82%  

Federated NVIT High Income Bond Fund - Class III (obsolete) (HIBF3)

 

2013         0.00%       588,722           18.20       10,716,292       6.72%           6.94%  
2012         0.00%       644,890           17.02       10,977,189       8.23%           14.71%  

VIP High Income Portfolio - Service Class R (obsolete) (FHISR)

 

2014         0.00%       262,020           15.40       4,035,140       5.61%           0.99%  
2013         0.00%       272,620           15.25       4,157,098       5.27%           5.92%  
2012         0.00%       338,588           14.40       4,874,361       5.95%           14.10%  

NVIT Emerging Markets Fund - Class III (obsolete) (GEM3)

 

2013         0.00%       452,954           19.48       8,824,216       1.14%           0.75%  
2012         0.00%       488,948           19.34       9,454,339       0.40%           17.24%  

NVIT International Equity Fund - Class III (obsolete) (GIG3)

 

2013         0.00%       430,241           9.96       4,283,590       0.51%           17.81%  
2012         0.00%       425,415           8.45       3,595,143       0.79%           15.58%  

Research International Series - Service Class (obsolete) (MVRISC)

 

2014     0.00%       to       0.25%       288,102       10.01       to       9.82       2,832,586       1.20%       -7.09%       to       -7.32%  
2013     0.00%       to       0.25%       423,329       10.78       to       10.60       4,491,538       1.76%       18.66%       to       18.37%  
2012     0.00%       to       0.25%       403,657       9.08       to       8.96       3,617,731       2.64%       16.41%       to       16.12%  

VIP Overseas Portfolio - Service Class R (obsolete) (FOSR)

 

2014         0.00%       677,999           16.56       11,224,415       1.22%           -8.18%  
2013         0.00%       711,787           18.03       12,833,053       1.29%           30.30%  
2012         0.00%       771,330           13.84       10,672,653       1.81%           20.67%  

NVIT International Index Fund - Class VI (obsolete) (GVIX6)

 

2013         0.00%       145,428           11.84       1,722,073       3.07%           21.27%  
2012         0.00%       101,703           9.76       993,072       2.68%           18.29%  

NVIT Multi-Manager International Growth Fund - Class III (obsolete) (NVMIG3)

 

2013         0.00%       1,431,105           12.17       17,411,691       1.26%           21.34%  
2012         0.00%       1,574,138           10.03       15,783,512       0.59%           15.78%  

NVIT Multi-Manager International Value Fund - Class III (obsolete) (GVDIV3)

 

2013         0.00%       437,468           12.78       5,588,742       2.28%           21.42%  
2012         0.00%       465,460           10.52       4,897,270       0.39%           17.24%  

American Century NVIT Growth Fund - Class I (obsolete) (CAF)

 

2015     0.00%       to       0.25%       1,029,042       16.53       to       15.63       16,659,543       0.35%       4.67%       to       4.41%  
2014     0.00%       to       0.25%       1,099,344       15.79       to       14.97       17,014,563       0.35%       11.33%       to       11.05%  
2013     0.00%       to       0.25%       1,193,249       14.18       to       13.48       16,588,174       0.68%       29.74%       to       29.42%  
2012     0.00%       to       0.25%       1,304,902       10.93       to       10.41       13,959,713       0.56%       14.02%       to       13.74%  

VP Vista(SM) Fund - Class I (obsolete) (ACVVS1)

 

2013     0.00%       to       0.25%       90,579       18.87       to       18.47       1,683,610       0.00%       30.17%       to       29.85%  
2012     0.00%       to       0.25%       124,668       14.50       to       14.22       1,784,625       0.00%       15.61%       to       15.33%  

    Contract
Expense Rate*		     Units     Unit
Fair Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total Return***  

Small-Cap Growth Portfolio - S Class Shares (obsolete) (AMFAS)

 

2014     0.00%       to       0.10%       76,374       22.15       to       21.88       1,685,063       0.00%       3.47%       to       3.37%  
2013     0.00%       to       0.25%       145,700       21.40       to       20.81       3,077,339       0.00%       45.83%       to       45.47%  
2012     0.00%       to       0.25%       115,055       14.68       to       14.30       1,668,533       0.00%       8.82%       to       8.55%  
2016     Contract owners’ equity:     $ 4,733,099,813        
2015     Contract owners’ equity:     $ 4,526,981,672        
2014     Contract owners’ equity:     $ 4,739,882,176        
2013     Contract owners’ equity:     $ 4,637,188,888        
2012     Contract owners’ equity:     $ 4,083,042,311        
* This represents the range of annual contract expense rates of the variable account at the period end indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.
** This represents the ratio of dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by monthly average net assets (excluding months where net assets are zero). The investment income ratio for subaccounts initially funded during the period presented has not been annualized. The ratios exclude those expenses that result in direct reductions to the contract owner accounts through reductions in unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.
*** This represents the range of minimum and maximum total returns for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit values for expenses assessed. The total returns do not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Total return is not annualized if the underlying mutual fund option is initially offered, funded, or both, during the period presented. Minimum and maximum ranges are not shown for underlying mutual fund options for which a single contract expense rate (product option) exists. In such cases, the total return presented is representative of all units issued and outstanding at period end.
**** Subaccounts denoted indicate the underlying mutual fund option was initially added and funded during the period presented. Prior period presentation, which indicated the date the underlying mutual fund was initially added and funded, has been updated to conform with current period presentation.

LOGO    KPMG LLP
  

Suite 500

191 West Nationwide Blvd.

Columbus, OH 43215-2568

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholder

Nationwide Life Insurance Company:

We have audited the accompanying consolidated balance sheets of Nationwide Life Insurance Company and subsidiaries (the Company) as of December 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2016. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying table of contents. These consolidated financial statements and financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated 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, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

/s/ KPMG LLP

Columbus, Ohio

February 28, 2017

KPMG LLP is a Delaware limited liability partnership, the U.S.

member firm of KPMG International Cooperative (“KPMG

International”), a Swiss entity.

 

1

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Operations

 

     Year ended December 31,  

(in millions)

    2016     2015     2014  

Revenues

       

Policy charges

    $ 2,361     $ 2,216     $ 2,065  

Premiums

      642       786       831  

Net investment income

      2,139       1,982       1,900  

Net realized investment (losses) gains, including other-than-temporary impairment losses

      (111 )      82       (1,078 ) 

Other revenues

      8       14       11  
  

 

 

    

 

 

    

 

 

  

Total revenues

    $ 5,039     $ 5,080     $ 3,729  
  

 

 

    

 

 

    

 

 

  

Benefits and expenses

       

Interest credited to policyholder account values

    $ 1,406     $ 1,078     $ 1,096  

Benefits and claims

      1,298       1,662       1,502  

Amortization of deferred policy acquisition costs

      433       68       207  

Other expenses, net of deferrals

      998       1,044       1,055  
  

 

 

    

 

 

    

 

 

  

Total benefits and expenses

    $ 4,135     $ 3,852     $ 3,860  
  

 

 

    

 

 

    

 

 

  

Income (loss) before federal income taxes and noncontrolling interests

    $ 904     $ 1,228     $ (131 ) 

Federal income tax expense (benefit)

      126       293       (147 ) 
  

 

 

    

 

 

    

 

 

  

Net income

    $ 778     $ 935     $ 16  

Loss attributable to noncontrolling interests, net of tax

      (91 )      (96 )      (94 ) 
  

 

 

    

 

 

    

 

 

  

Net income attributable to Nationwide Life Insurance Company

    $ 869     $ 1,031     $ 110  
  

 

 

    

 

 

    

 

 

  

See accompanying notes to consolidated financial statements.

 

2

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Comprehensive Income

 

     Year ended December 31,  

(in millions)

        2016         2015     2014  

Net income

    $ 778     $ 935     $ 16  
  

 

 

    

 

 

    

 

 

  

Other comprehensive income (loss), net of tax

       

Changes in:

       

Net unrealized gains (losses) on available-for-sale securities

    $ 237     $ (720 )    $ 435  

Other

      22       43       27  
  

 

 

    

 

 

    

 

 

  

Total other comprehensive income (loss), net of tax

    $ 259     $ (677 )    $ 462  
  

 

 

    

 

 

    

 

 

  

Total comprehensive income

    $ 1,037     $ 258     $ 478  

Comprehensive loss attributable to noncontrolling interests, net of tax

      (91 )      (96 )      (94 ) 
  

 

 

    

 

 

    

 

 

  

Total comprehensive income attributable to Nationwide Life Insurance Company

    $ 1,128     $ 354     $ 572  
  

 

 

    

 

 

    

 

 

  

See accompanying notes to consolidated financial statements.

 

3

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Balance Sheets

 

     December 31,  

(in millions, except for share and per share amounts)

    2016      2015  

Assets

      

Investments:

      

Fixed maturity securities, available-for-sale

    $ 43,690      $ 37,570  

Mortgage loans, net of allowance

      9,760        8,396  

Policy loans

      989        993  

Short-term investments

      1,944        766  

Other investments

      1,111        943  
  

 

 

     

 

 

  

Total investments

    $ 57,494      $ 48,668  

Cash and cash equivalents

      92        67  

Accrued investment income

      514        477  

Deferred policy acquisition costs

      5,432        5,200  

Goodwill

      200        200  

Other assets

      2,835        2,328  

Separate account assets

      89,071        87,238  
  

 

 

     

 

 

  

Total assets

    $ 155,638      $ 144,178  
  

 

 

     

 

 

  

Liabilities and equity

      

Liabilities

      

Future policy benefits and claims

    $ 52,911      $ 45,397  

Short-term debt

      300        400  

Long-term debt

      707        707  

Other liabilities

      3,104        2,042  

Separate account liabilities

      89,071        87,238  
  

 

 

     

 

 

  

Total liabilities

    $ 146,093      $ 135,784  
  

 

 

     

 

 

  

Shareholder’s equity

      

Common stock ($1 par value; authorized - 5,000,000 shares, issued and outstanding - 3,814,779 shares)

    $ 4      $ 4  

Additional paid-in capital

      1,718        1,718  

Retained earnings

      6,530        5,661  

Accumulated other comprehensive income

      626        367  
  

 

 

     

 

 

  

Total shareholder’s equity

    $ 8,878      $ 7,750  

Noncontrolling interests

      667        644  
  

 

 

     

 

 

  

Total equity

    $ 9,545      $ 8,394  
  

 

 

     

 

 

  

Total liabilities and equity

    $ 155,638      $ 144,178  
  

 

 

     

 

 

  

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 Equity

 

(in millions)

   Common
stock		     Additional
paid-in
capital		     Retained
earnings		     Accumulated
other
comprehensive
income		     Total
shareholder’s
equity		     Non-controlling
interest		     Total
equity		  

Balance as of December 31, 2013

   $ 4     $ 1,718     $ 4,520     $ 582     $ 6,824     $ 680     $ 7,504  

Comprehensive income (loss):

              

Net income (loss)

   $ —       $ —       $ 110     $ —       $ 110     $ (94 )    $ 16  

Other comprehensive income

     —         —         —         462       462       —         462  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

   $ —       $ —       $ 110     $ 462     $ 572     $ (94 )    $ 478  

Change in noncontrolling interest

     —         —         —         —         —         54       54  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2014

   $ 4     $ 1,718     $ 4,630     $ 1,044     $ 7,396     $ 640     $ 8,036  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive income (loss):

              

Net income (loss)

   $ —       $ —       $ 1,031     $ —       $ 1,031     $ (96 )    $ 935  

Other comprehensive (loss)

     —         —         —         (677 )      (677 )      —         (677 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

   $ —       $ —       $ 1,031     $ (677 )    $ 354     $ (96 )    $ 258  

Change in noncontrolling interest

     —         —         —         —         —         100       100  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2015

   $ 4     $ 1,718     $ 5,661     $ 367     $ 7,750     $ 644     $ 8,394  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive income (loss):

              

Net income (loss)

   $ —       $ —       $ 869     $ —       $ 869     $ (91 )    $ 778  

Other comprehensive income

     —         —         —         259       259       —         259  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

   $ —       $ —       $ 869     $ 259     $ 1,128     $ (91 )    $ 1,037  

Change in noncontrolling interest

     —         —         —         —         —         114       114  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2016

   $ 4     $ 1,718     $ 6,530     $ 626     $ 8,878     $ 667     $ 9,545  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

 

     Year ended December 31,  

(in millions)

    2016     2015     2014  

Cash flows from operating activities

       

Net income

    $ 778     $ 935     $ 16  

Adjustments to net income:

       

Net realized investment losses (gains), including other-than-temporary impairment losses

      111       (82 )      1,078  

Interest credited to policyholder account values

      1,406       1,078       1,096  

Capitalization of deferred policy acquisition costs

      (823 )      (870 )      (685 ) 

Amortization of deferred policy acquisition costs

      433       68       207  

Amortization and depreciation

      81       107       128  

Deferred tax expense (benefit)

      65       217       (152 ) 

Changes in:

       

Policy liabilities

      (680 )      (249 )      (421 ) 

Derivatives, net

      (247 )      (141 )      (181 ) 

Other, net

      (142 )      (280 )      (59 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

    $ 982     $ 783     $ 1,027  
  

 

 

    

 

 

    

 

 

  

Cash flows from investing activities

       

Proceeds from maturities of available-for-sale securities

    $ 3,007     $ 2,828     $ 2,798  

Proceeds from sales of available-for-sale securities

      852       466       647  

Purchases of available-for-sale securities

      (8,938 )      (7,106 )      (5,640 ) 

Proceeds from repayments and sales of mortgage loans

      792       1,027       920  

Issuances of mortgage loans

      (2,163 )      (2,155 )      (1,837 ) 

Net (purchases) sales of short-term investments

      (1,174 )      169       (524 ) 

Collateral received, net

      217       48       399  

Other, net

      (231 )      (136 )      (94 ) 
  

 

 

    

 

 

    

 

 

  

Net cash used in investing activities

    $ (7,638 )    $ (4,859 )    $ (3,331 ) 
  

 

 

    

 

 

    

 

 

  

Cash flows from financing activities

       

Net change in short-term debt

    $ (100 )    $ (260 )    $ 382  

Repayments of long-term debt

      —         (2 )      —    

Investment and universal life insurance product deposits

      10,894       8,224       6,037  

Investment and universal life insurance product withdrawals

      (4,132 )      (3,884 )      (4,095 ) 

Other, net

      19       (12 )      (4 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided by financing activities

    $ 6,681     $ 4,066     $ 2,320  
  

 

 

    

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

    $ 25     $ (10 )    $ 16  

Cash and cash equivalents at beginning of year

      67       77       61  
  

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of year

    $ 92     $ 67     $ 77  
  

 

 

    

 

 

    

 

 

  

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 December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(1) Nature of Operations

Nationwide Life Insurance Company (“NLIC,” or collectively with its subsidiaries, “the Company”) was incorporated in 1929 and is an Ohio domiciled stock life insurance company. The Company is a member of the Nationwide group of companies (“Nationwide”), which is comprised of Nationwide Mutual Insurance Company (“NMIC”) and all of its subsidiaries and affiliates.

All of the outstanding shares of NLIC’s common stock are owned by Nationwide Financial Services, Inc. (“NFS”), a holding company formed by Nationwide Corporation (“Nationwide Corp.”), a majority-owned subsidiary of NMIC.

The Company is a leading provider of long-term savings and retirement products in the United States of America (“U.S.”). The Company develops and sells a wide range of products and services, which include fixed and variable individual annuities, private and public sector group retirement plans, life insurance, investment advisory services and other investment products.

The Company sells its products through a diverse distribution network. Unaffiliated entities that sell the Company’s products to their own customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators and life insurance specialists. Representatives of affiliates who market products directly to a customer base include Nationwide Retirement Solutions, Inc. (“NRS”) and Nationwide Financial Network (“NFN”) producers, which includes the agency distribution force of the Company’s ultimate parent company, NMIC.

Wholly-owned subsidiaries of NLIC as of December 31, 2016 include Nationwide Life and Annuity Insurance Company (“NLAIC”), Nationwide Investment Services Corporation (“NISC”), Nationwide Investment Advisor (“NIA”) and Eagle Captive Reinsurance, LLC (“Eagle”). NLAIC primarily offers universal life insurance, variable universal life insurance, term life insurance, corporate-owned life insurance (“COLI”) and individual annuity contracts on a non-participating basis. NISC is a registered broker-dealer. NIA is a registered investment advisor.

As of December 31, 2016 and 2015, the Company did not have a significant concentration of financial instruments in a single investee, industry or geographic region. Also, the Company did not have a concentration of business transactions with a particular customer, lender, distribution source, market or geographic region in which a single event could cause a severe impact on the Company’s financial position after considering insurance risk that has been transferred to external reinsurers.

 

(2) Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling financial interest. The consolidated financial statements include wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany accounts and transactions have been eliminated.

Use of Estimates

The Company’s consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates include the balance and amortization of deferred policy acquisition costs (“DAC”), legal and regulatory reserves, certain investment and derivative valuations, future policy benefits and claims, goodwill, provision for income taxes and valuation of deferred tax assets. Actual results could differ significantly from those estimates.

 

7

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Revenues and Benefits

Investment and universal life insurance products. Investment products are long-duration contracts that do not subject the Company to significant risk arising from mortality (the incidence of death) or morbidity (the incidence of disability resulting from disease or physical impairment). These include variable and fixed deferred annuity contracts in the accumulation phase with individuals and groups, as well as certain annuities without life contingencies. Universal life insurance products include long-duration insurance contracts that do not have fixed or guaranteed terms. These include universal life insurance, variable universal life insurance, COLI, bank-owned life insurance (“BOLI”) and other interest-sensitive life insurance policies. Revenues for investment products and universal life insurance products consist of net investment income, surrender charges and other policy charges earned and assessed against policy account balances during the period. Policy charges are assessed on a daily or monthly basis and are recognized as revenue when assessed and earned. Assessments for services provided in future periods are recorded as unearned revenue and recognized as revenue over the periods benefited. Surrender charges are recognized as revenue upon surrender of a contract in accordance with contractual terms.

Traditional life insurance products. Traditional life insurance products include those products with fixed and guaranteed terms, primarily consisting of whole life insurance, term life insurance and certain annuities with life contingencies. Premiums for traditional life insurance products are generally recognized as revenue when due. For certain annuities with life contingencies, any excess of gross premium over the net premium is deferred and recognized with the amount of expected future benefits. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contract. This association is accomplished through the provision for future policy benefits and the deferral and amortization of policy acquisition costs.

Future Policy Benefits and Claims

Investment and universal life insurance products. The Company calculates its liability for future policy benefits and claims for investment products in the accumulation phase and for universal life insurance policies at the policy accrued account balance, which represents participants’ net deposits adjusted for investment performance, interest credited and applicable contract charges. Policy benefits and claims that are charged to expense include interest credited to policyholder accounts and benefits and claims incurred in the period in excess of related policyholder accounts.

The Company offers guarantees on variable and fixed indexed annuity products, which can include a return of no less than the total deposits made on the contract less any customer withdrawals, total deposits made on the contract less any customer withdrawals plus a minimum return, or the highest contract value on a specified anniversary date minus any customer withdrawals following the contract anniversary. These guarantees can also include benefits payable in the event of death, upon annuitization, upon periodic withdrawal or at specified dates during the accumulation period.

As part of its valuation procedures, the Company makes an assumption of the expected utilization of guarantee benefits by participants. Guarantees that include a benefit that is wholly life contingent or is expected to be exercised upon annuitization are accounted for as insurance liabilities that accumulate over time. Guarantees that are expected to be exercised using a net settlement option are accounted for as embedded derivatives, which are required to be separated and valued apart from the host variable annuity contracts.

Guaranteed minimum death benefits (“GMDB”) and certain guaranteed living withdrawal benefits (“GLWB”) on variable annuity and fixed annuity products, as well as no-lapse guarantees on universal life and variable universal life insurance products are accounted for as insurance liabilities. Liabilities for these guarantees are calculated by multiplying the current benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date, less the cumulative guaranteed benefit payments plus interest. The Company evaluates its experience and assumptions and adjusts the benefit ratio as appropriate. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes, with a related charge or credit to benefits and claims in the period of evaluation. Determination of the expected benefit payments and assessments are based on a range of scenarios and assumptions, including those related to market rates of return and volatility, contract surrenders and mortality experience. The accounting for these guarantees impacts estimated gross profits used to calculate the balance and amortization of DAC and other expenses.

 

8

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Certain GLWB that are expected to net settle on variable annuity products represent embedded derivatives which are held at fair value and include the present value of attributed fees. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of net realized investment gains and losses. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous, unobservable assumptions including, but not limited to, mortality, lapse rates, index volatility, benefit utilization and discounting. Benefit utilization includes a wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible) and efficiency of benefit utilization (the percent of the maximum permitted withdrawal that a policyholder takes). Discounting includes liquidity and non-performance risk (the risk that the liability will not be fulfilled) and affects the value at which the liability is transferred. The Company derives these inputs, which vary widely by product, attained age, policy duration, benefits in the money and the existence of surrender charges, from experience and industry data.

The Company offers certain indexed life insurance and annuity products for which the policyholders’ interest credits are based on market performance with caps and floors. The interest credits represent embedded derivatives within the insurance contract and therefore are required to be separated and valued apart from the host contracts. The embedded derivatives are held at fair value. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of interest credited. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous assumptions including, but not limited to, mortality, lapse rates and index volatility.

The assumptions used to calculate the fair value of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary.

Traditional life and other insurance products. The process of calculating reserve amounts for traditional life insurance products involves the use of a number of assumptions, including those related to persistency (the percentage of insurance policies remaining in-force from year to year), mortality, morbidity, interest rates and certain other expenses.

The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method, with weighted average interest rates of 6.6% and estimates of mortality, morbidity, investment yields and persistency that were used or being experienced at the time the policies were issued, with a provision for adverse deviation.

The liability for future policy benefits for certain annuities with life contingencies was calculated using the present value of future benefits and certain expenses, discounted using weighted average interest rates of 4.6% with a provision for adverse deviation.

The Company issues fixed and floating rate funding agreements to the Federal Home Loan Bank of Cincinnati (“FHLB”). The liability for such funding agreements is recorded in future policy benefits and claims. The amount of collateralized funding agreements outstanding with the FHLB as of December 31, 2016 and 2015 was $2.3 billion. In connection with an FHLB requirement for funding agreements, the Company held $47 million and $46 million of FHLB stock as of December 31, 2016 and 2015, respectively.

The Company offers certain short duration traditional insurance, consisting primarily of accident and health contracts. These short duration insurance contracts are subject to an internal modified coinsurance treaty where activity including premiums, investment income, losses paid and adjustments to reserves, dividends paid and expenses incurred are ceded from NLIC to NMIC. The Company’s reserve for short duration contracts was $72 million and $78 million as of December 31, 2016 and 2015, respectively.

Reinsurance Ceded

The Company cedes insurance to other companies in order to limit potential losses and to diversify its exposures. Such agreements do not relieve the original insurer from its primary obligation to the policyholder in the event the reinsurer is unable to meet the obligations it has assumed. 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 in the consolidated balance sheets on a gross basis, separately from the related future policy benefits and claims of the Company.

Under the terms of contracts held with certain unaffiliated reinsurers, specified assets have been placed in trusts as collateral for the recoveries. The trust assets are invested in investment grade securities, the fair value of which must at all times be greater than or equal to 100% of the reinsured reserves, as outlined in the underlying reinsurance contracts.

 

9

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Deferred Policy Acquisition Costs

The Company has deferred certain acquisition costs that are directly related to the successful acquisition of new and renewal insurance and investment contracts. The methods and assumptions used to amortize and assess recoverability of the DAC balance depend on the type of product.

Investment and universal life insurance products. For certain investment and universal life insurance products, DAC is amortized with interest over the lives of the policies in relation to the present value of estimated gross profits, which is determined primarily from projected interest margins, policy charges and net realized investment gains and losses, less policy benefits and other expenses. The DAC asset related to investment and universal life insurance products is adjusted to reflect the impact of unrealized gains and losses on available-for-sale securities, with the corresponding adjustment recorded in accumulated other comprehensive income (“AOCI”). This adjustment to DAC represents the change in amortization that would have been required as a charge or credit to earnings had such unrealized amounts been realized. DAC for investment and universal life insurance products is subject to recoverability testing in the year of policy issuance, and DAC for universal life insurance products is also subject to loss recognition testing at the end of each reporting period.

The assumptions used in the estimation of gross profits are based on the Company’s current best estimates of future events and are reviewed as part of an annual comprehensive study of assumptions. The most significant assumptions that are involved in the estimation of future gross profits include future net general and separate account investment performance, surrender/lapse rates, interest margins, renewal premiums and mortality. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. The Company uses a reversion to the mean process to determine the assumption for the future net separate account investment performance. This process assumes different performance levels over the next three years, such that the separate account mean return, measured from the anchor date to the end of the life of the product, equals the long-term assumption. The Company’s long-term assumptions for net separate account investment performance consist of assumed gross returns of 10.5% for equity funds and 5.0% for fixed funds.

Changes in assumptions can have a significant impact on the amount of DAC reported for investment and universal life insurance products and on their related amortization patterns. In the event actual experience differs from assumptions or future assumptions are revised, the Company will record an increase or decrease in DAC amortization expense, which could be significant.

Traditional life insurance products. DAC is amortized with interest over the premium-paying period of the related policies in proportion to premium revenue recognized. These assumptions are consistent with those used in the calculation of liabilities for future policy benefits at issuance. DAC is evaluated for recoverability in the year of policy issuance, and loss recognition testing is conducted each reporting period.

Refer to Note 5 for discussion regarding DAC amortization and related balances.

Investments

Available-for-sale securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses reported as a separate component of other comprehensive income, net of adjustments for DAC, future policy benefits and claims, policyholder dividend obligations and deferred federal income taxes. Realized gains and losses on sales of available-for-sale securities are recognized in income based on the specific identification method. Interest and dividend income is recognized when earned.

As of December 31, 2016 and 2015, 99% of fixed maturity securities were priced using externally sourced data. Independent pricing services are most often utilized (86% as of December 31, 2016 and 2015) to determine the fair value of securities for which market quotations or quotations on comparable securities are available. For these securities, the Company obtains the pricing services’ methodologies, pricing from additional sources, and classifies the investments accordingly in the fair value hierarchy.

A corporate pricing matrix is used in valuing certain corporate debt securities. The corporate pricing matrix was developed using publicly and privately available spreads for privately placed corporate securities with varying weighted average lives and credit quality ratings. The weighted average life and credit quality rating of a particular fixed maturity security to be priced using the corporate pricing matrix are important inputs into the model and are used to determine a corresponding spread that is added to the appropriate U.S. Treasury yield to create an estimated market yield for that security. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular security.

 

10

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Non-binding broker quotes are also utilized to determine the fair value of certain fixed maturity securities when deemed appropriate or when quotes are not available from independent pricing services or a corporate pricing matrix. These securities are classified with the lowest priority in the fair value hierarchy as only one broker quote is ordinarily obtained, the investment is not traded on an exchange, the pricing is not available to other entities and/or the transaction volume in the same or similar investments has decreased. Inputs used in the development of prices are not provided to the Company by the brokers, as the brokers often do not provide the necessary transparency into their quotes and methodologies. At least annually, the Company performs reviews and tests to ensure that quotes are a reasonable estimate of the investments’ fair value. Price movements of broker quotes are subject to validation and require approval from the Company’s management. Management uses its knowledge of the investment and current market conditions to determine if the price is indicative of the investment’s fair value.

When the collectability of contractual interest payments on fixed maturity securities is considered doubtful, such securities are placed in non-accrual status and any accrued interest is excluded from investment income. These securities are not restored to accrual status until the Company determines that future payment of principal and interest is probable.

The Company has entered into securities lending agreements with a custodial bank whereby eligible securities are loaned to third parties, primarily major brokerage firms. These transactions are used to generate additional income in the securities portfolio. The Company is entitled to receive from the borrower any payments of interest and dividends received on loaned securities during the loan term. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as collateral. Cash collateral is invested by the custodial bank in investment-grade securities, which are included in the total investments of the Company. Additionally, the Company may receive non-cash collateral, which would be recorded off-balance sheet. As of December 31, 2016 and December 31, 2015, the fair value of the securities received as collateral and recorded off balance sheet is $331 million and $167 million, respectively. The Company recognizes loaned securities in available-for-sale investments. A securities lending payable is recorded in other liabilities for the amount of cash collateral received. Net income received from securities lending activities is included in net investment income. As of December 31, 2016 and 2015, the fair value of loaned securities was $541 million and $389 million, respectively.

For investments in certain residential and commercial mortgage-backed securities, the Company recognizes income and amortizes discounts and premiums using the effective-yield method, based on prepayment assumptions and the estimated economic life of the securities. When actual prepayments differ significantly from estimated prepayments, the effective-yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income in the period the estimates are revised. All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments.

The Company periodically reviews its available-for-sale securities to determine if any decline in fair value to below amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time a security has been in an unrealized loss position, the severity of the unrealized loss, reasons for the decline in value and expectations for the amount and timing of a recovery in fair value.

In assessing corporate debt securities for other-than-temporary impairment (“OTTI”), the Company evaluates the ability of the issuer to meet its debt obligations, the value of the company or specific collateral securing the debt, the Company’s intent to sell the security and whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis. The Company evaluates U.S. government and agencies and obligations of states and political subdivisions securities for OTTI by examining similar characteristics.

Mortgage-backed securities are assessed for impairment using default estimates based on loan level data, where available. Where loan level data is not available, a proxy based on collateral characteristics is used. The impairment assessment considers loss severity as a function of multiple factors, including unpaid balance, interest rate, mortgage insurance ratios, assessed property value at origination, change in property value, loan-to-value (“LTV”) ratio at origination and prepayment speeds. Cash flows generated by the collateral are then utilized, along with consideration of the instrument’s position in the overall structure, to determine cash flows associated with the security.

Certain asset-backed securities are assessed for impairment using expected cash flows based on various inputs, including default estimates based on the underlying corporate securities, historical and forecasted loss severities or other market inputs when recovery estimates are not feasible. When the collateral is regional bank and insurance company trust preferred securities, default estimates used to estimate cash flows are based on U.S. Bank Rating service data and broker research.

 

11

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The Company evaluates its intent to sell on an individual security basis. OTTI losses on securities when the Company does not intend to sell the security and it is not more likely than not it will be required to sell the security prior to recovery of the security’s amortized cost basis are bifurcated, with the credit related portion of the impairment loss being recognized in earnings and the non-credit related portion of the impairment loss and any subsequent changes in the fair value of those debt securities being recognized in other comprehensive income, net of applicable taxes and other offsets. To estimate the credit related portion of an impairment loss recognized in earnings, the Company considers the present value of the cash flows. To the extent that the present value of cash flows generated by a debt security is less than the amortized cost, an OTTI is recognized through earnings.

It is possible that further declines in fair values of such investments, or changes in assumptions or estimates of anticipated recoveries and/or cash flows, may cause further OTTI, which could be significant.

The Company invests in fixed maturity securities that could qualify as VIEs, including corporate securities, mortgage-backed securities and asset-backed securities. The Company is not the primary beneficiary of these securities as the Company does not have the power to direct the activities that most significantly impact the entities’ performance. The Company’s potential loss is limited to the carrying values of these securities. There are no liquidity arrangements, guarantees or other commitments by third parties that affect the fair value of the Company’s interest in these assets.

Mortgage loans, net of allowance. The Company holds commercial mortgage loans that are collateralized by properties throughout the U.S. These mortgage loans are further segregated into the following classes based on the unique risk profiles of the underlying property types: office, industrial, retail, apartment and other. Mortgage loans held-for-investment are held at amortized cost less a valuation allowance.

As part of the underwriting process, specific guidelines are followed to ensure the initial quality of a new mortgage loan. Third-party appraisals are obtained to support loaned amounts, as the loans are usually collateral dependent.

The collectability and value of a mortgage loan are based on the ability of the borrower to repay and/or the value of the underlying collateral. The Company’s commercial mortgage loans are typically structured with balloon payment maturities, exposing the Company to risks associated with the borrowers’ ability to make the balloon payment or refinance the property.

Mortgage loans require a loan-specific reserve when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When management determines that a loan requires a loan-specific reserve, a provision for loss is established equal to the difference between the carrying value and either the fair value of the collateral less costs to sell or the present value of expected future cash flows, discounted at the loan’s market interest rate. Loan-specific reserve charges are recorded in net realized investment gains and losses. In the event a loan-specific reserve charge is reversed, the recovery is also recorded in net realized investment gains and losses.

In addition to the loan-specific reserves, the Company maintains a non-specific reserve based primarily on loan surveillance categories and property type classes, which reflects management’s best estimates of probable credit losses inherent in the portfolio of loans without specific reserves as of the balance sheet date. Management’s periodic evaluation of the adequacy of the non-specific reserve is based on past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect a borrower’s ability to repay, the estimated value of the underlying collateral, the composition of the loan portfolio, current economic conditions and other relevant factors. Non-specific reserve changes are recorded in net realized investment gains and losses.

Management evaluates the credit quality of individual commercial mortgage loans and the portfolio as a whole through a number of loan quality measurements, including but not limited to LTV and debt service coverage (“DSC”) ratios. The LTV ratio is calculated as a ratio of the amortized cost of a loan to the estimated value of the underlying collateral. DSC is the amount of cash flow generated by the underlying collateral of the mortgage loan available to meet periodic interest and principal payments of the loan. This process identifies commercial mortgage loans representing the lowest risk profile and lowest potential for loss and those representing the highest risk profile and highest potential for loss. These factors are updated and evaluated at least annually.

Interest income on performing mortgage loans is recognized over the life of the loan using the effective-yield method. Loans in default or in the process of foreclosure are placed on non-accrual status. Interest received on non-accrual status mortgage loans is included in net investment income in the period received. Loans are restored to accrual status when the principal and interest is current and it is determined the future principal and interest payments are probable or when the loan is modified. Loans are considered delinquent when contractual payments are 90 days past due.

 

12

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Policy loans. Policy loans, which are collateralized by the related insurance policy, are held at the outstanding principal balance and do not exceed the net cash surrender value of the policy. As such, no valuation allowance for policy loans is required.

Short-term investments. Short-term investments consist primarily of highly liquid mutual funds and government agency discount notes with maturities of twelve months or less at acquisition. The Company and various affiliates maintain 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 for the benefit of the Company are included in short-term investments on the consolidated balance sheets. The Company carries short-term investments at fair value.

Other investments. Other investments consist primarily of alternative investments in private equity funds, private debt funds, tax credit funds and real estate partnerships and funds accounted for under the equity method, as well as trading securities, equity securities and capital stock with the FHLB. The Company applies mark-to-market accounting to trading securities and recognizes changes in fair value in net realized investment gains and losses.

The Company holds alternative investments as described above and applies the equity method of accounting to these investments as it does not have a controlling financial interest. The Company recognizes the change in equity method investments in net investment income. The Company’s unfunded commitments related to these investments were $495 million and $315 million as of December 31, 2016 and 2015, respectively. The carrying value of these investments was $362 million and $199 million as of December 31, 2016 and 2015, respectively.

The Company has sold $1.5 billion and $1.4 billion in tax credit funds to unrelated third parties as of December 31, 2016 and 2015, respectively. The Company has guaranteed after-tax benefits to the third party investors through periods ending in 2032. These guarantees are in effect for periods of approximately 15 years each. The tax credit funds provide a stream of tax benefits to the investors that will generate a yield and return of capital. If the tax benefits are not sufficient to provide these cumulative after-tax yields, the Company must fund any shortfall. The maximum amount of undiscounted future payments that the Company could be required to pay the investors under the terms of the guarantees is $836 million, but the Company does not anticipate making any material payments related to the guarantees. The Company’s risks are mitigated in the following ways: (1) the Company has the right to buyout the equity related to the guarantee under certain circumstances, (2) the Company may replace underperforming properties to mitigate exposure to guarantee payments and (3) the Company oversees the asset management of the deals.

In the normal course of business, the Company has relationships with VIEs. If the Company determines that it has a variable interest and is the primary beneficiary, it consolidates the VIE. The Company is the primary beneficiary if the Company has the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and the obligation to absorb losses or receive benefits from the entity that could be potentially significant to the VIE. This determination is based on a review of the entity’s contract and other deal-related information, such as the entity’s equity investment at risk, decision-making abilities, obligations to absorb economic risks and right to receive economic rewards of the entity. These consolidated VIEs are primarily made up of the tax credit funds discussed above.

Net assets (controlling and noncontrolling interests) of all consolidated VIEs totaled $667 million and $644 million as of December 31, 2016 and 2015, respectively, and are included within the consolidated balance sheet primarily as other investments of $614 million, other assets of $77 million and other liabilities of $67 million as of December 31, 2016, and other investments of $585 million, other assets of $113 million and other liabilities of $67 million as of December 31, 2015. The Company’s general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs. The results of operations and financial positions of each VIE for which the Company is the primary beneficiary, as well as the corresponding noncontrolling interests, are recorded in the consolidated financial statements. Ownership interests held by unrelated third parties in the consolidated VIEs are presented as noncontrolling interests in the equity section of the consolidated financial statements. Losses attributable to noncontrolling interests are excluded from the net income attributable to the Company on the consolidated statements of operations.

The Company is not required and does not intend to provide financial or other support outside of contractual requirements to any VIE.

Derivative Instruments

The Company uses derivative instruments to manage exposures and mitigate risks primarily associated with interest rates, equity markets and foreign currency. These derivative instruments primarily include interest rate swaps, futures contracts and options. Certain features embedded in the Company’s indexed products and certain variable annuity contracts require derivative accounting. All derivative instruments are held at fair value and are reflected as other assets or liabilities in the consolidated balance sheets.

 

13

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The fair value of derivative instruments is determined using various valuation techniques relying predominantly on observable market inputs. These inputs include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. In cases where observable inputs are not available, the Company will utilize non-binding broker quotes to determine fair value, and these instruments are classified accordingly in the fair value hierarchy. Price movements of these broker quotes are subject to validation and require approval from the Company’s management. Management uses models to internally value the instruments for comparison to the values received through broker quotes.

For derivatives that are not designated for hedge accounting, the gain or loss on the derivative is recognized in net realized investment gains and losses.

For derivative instruments that are designated and qualify for cash flow hedge accounting, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income and reclassified into earnings in the same period or periods that the hedged transaction impacts earnings. The ineffective portion of the derivative’s change in value, if any, along with any of the derivative’s change in value that is excluded from the assessment of hedge effectiveness, are recorded in net realized investment gains and losses.

The Company’s derivative transaction counterparties are generally financial institutions. To reduce the credit risk associated with open contracts, the Company enters into master netting agreements, which permit the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. In addition, the Company attempts to reduce credit risk by obtaining collateral from counterparties. The determination of the need for and the levels of collateral vary based on an assessment of the credit risk of the counterparty. The Company accepts collateral in the forms of cash and marketable securities. Non-cash collateral received is recorded off-balance sheet.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In determining fair value, the Company uses various methods, including market, income and cost approaches.

The Company categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

The Company categorizes assets and liabilities held at fair value in the consolidated balance sheets as follows:

Level 1. Unadjusted quoted prices accessible in active markets for identical assets or liabilities at the measurement date and mutual funds, where the value per share (unit) is determined and published daily and is the basis for current transactions.

Level 2. Unadjusted quoted prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means. Primary inputs to this valuation technique may include comparative trades, bid/asks, interest rate movements, U.S. Treasury rates, London Interbank Offered Rate (“LIBOR”), prime rates, cash flows, maturity dates, call ability, estimated prepayments and/or underlying collateral values.

Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimates of the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the method of valuation and the valuation inputs.

The Company reviews its fair value hierarchy classifications for assets and liabilities quarterly. Changes in the observability of significant valuation inputs identified during these reviews may trigger reclassifications. Reclassifications are reported as transfers at the beginning of the period in which the change occurs.

Fair Value Option. The Company assesses the fair value option election for newly acquired assets or liabilities on a prospective basis. There are no material assets or liabilities for which the Company has elected the fair value option.

 

14

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid investments with original maturities of less than three months.

Goodwill

In connection with business acquisitions, the Company recognizes goodwill as the excess of the purchase price or fair value of consideration exchanged over the fair values of tangible assets acquired, liabilities assumed and separately identified intangible assets. Goodwill is not amortized, but is evaluated for impairment at the reporting unit level annually. Goodwill of a reporting unit is tested for impairment on an interim basis, in addition to the annual evaluation, if an event occurs or circumstances change which would more likely than not reduce the fair value of a reporting unit below its carrying amount. If a reporting unit’s fair value is less than its carrying value, the Company will calculate implied goodwill. Goodwill is impaired at the reporting unit level if its carrying value exceeds the implied value of its goodwill.

The process of evaluating goodwill for impairment requires several judgments and assumptions to be made to determine the fair value of the reporting units, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and earnings, and the selection of comparable companies used to develop market-based assumptions. The Company performed its 2016 annual impairment test and determined that no impairment was required. As of December 31, 2016 and 2015, there were no accumulated impairments.

Closed Block

In connection with the sponsored demutualization of Provident Mutual Life Insurance Company (“Provident”) prior to its acquisition by the Company, Provident established a closed block for the benefit of certain classes of individual participating policies that had a dividend scale payable in 2001. Assets were allocated to the closed block in an amount that produces cash flows which, together with anticipated revenues from closed block business, is reasonably expected to be sufficient to provide for (1) payment of policy benefits, specified expenses and taxes, and (2) the continuation of dividends throughout the life of the Provident policies included in the closed block based upon the dividend scales payable for 2001, if the experience underlying such dividend scales continues.

Assets allocated to the closed block benefit only the holders of the policies included in the closed block and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the closed block and other portions of the Company’s general account, any of its separate accounts, or any affiliate of the Company without the approval of the Pennsylvania Insurance Department and ODI. The closed block will remain in effect as long as any policy in the closed block is in force.

If, over time, the aggregate performance of the closed block assets and policies is better than was assumed in funding the closed block, dividends to policyholders will increase. If, over time, the aggregate performance of the closed block assets and policies is less favorable than was assumed in the funding, dividends to policyholders could be reduced. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from the Company’s assets outside of the closed block, which are general account assets.

The assets and liabilities allocated to the closed block are recorded in the Company’s consolidated financial statements on the same basis as other similar assets and liabilities. The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets at the date Provident was acquired by the Company represents the maximum future earnings from the assets and liabilities designated to the closed block that can be recognized in income, for the benefit of stockholders, over the period the policies in the closed block remain in force.

If actual cumulative earnings exceed expected cumulative earnings, the expected earnings are recognized in income. This is because the excess actual cumulative earnings over expected cumulative earnings, which represents undistributed accumulated earnings attributable to policyholders, is recorded as a policyholder dividend obligation. Therefore, the excess will be paid to closed block policyholders as an additional policyholder dividend expense in the future unless it is otherwise offset by future performance of the closed block that is less favorable than originally expected. If actual cumulative performance is less favorable than expected, actual earnings will be recognized in income.

The principal cash flow items that affect the amount of closed block assets and liabilities are premiums, net investment income, purchases and sales of investments, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are management and maintenance expenses, commissions and net investment income and realized gains and losses on investments held outside of the closed block that support the closed block business, all of which enter into the determination of total gross margins of closed block policies. See Note 10 for further disclosure.

 

15

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Separate Accounts

Separate account assets and liabilities represent contractholders’ funds that have been legally segregated into accounts with specific investment objectives. In the separate account, investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. Separate account assets are recorded at fair value, with the value of separate account liabilities set to equal the fair value of separate account assets. Separate account assets are primarily comprised of public, privately-registered and non-registered mutual funds, whose fair value is primarily based on the funds’ net asset value. Other separate account assets are recorded at fair value based on the methodology that is applicable to the underlying assets.

Federal Income Taxes

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss 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 due to a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce a deferred tax asset to the amount expected to be realized. Interest expense and any associated penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) are recorded as income tax expenses.

The Company provides for federal income taxes based on amounts the Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to change the provision for federal income taxes recorded in the consolidated financial statements, which could be significant.

Tax reserves are reviewed regularly and are adjusted as events occur that the Company believes impact its liability for additional taxes, such as the lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement with taxing authorities on the deductibility/nondeductibility of uncertain items, additional exposure based on current calculations, identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue. The Company believes its tax reserves reasonably provide for potential assessments that may result from IRS examinations and other tax-related matters for all open tax years.

The Company files with the NMIC consolidated federal income tax return. Prior to 2015, NLIC filed a separate consolidated federal income tax return with its subsidiaries.

Participating Business

Participating business, which refers to policies that participate in profits through policyholder dividends, represented approximately 3% of the Company’s life insurance in force in 2016 and 2015 (4% in 2014) and 33% of the number of life insurance policies in force in 2016 (35% in 2015 and 37% in 2014). The provision for policyholder dividends was based on the respective year’s dividend scales and has been included in future policy benefits and claims in the consolidated balance sheets.

Subsequent Events

The Company evaluated subsequent events through February 28, 2017, the date the consolidated financial statements were issued.

 

(3) Recently Issued Accounting Standards

Adopted Accounting Standards

On January 1, 2016, the Company adopted ASU 2015-07, which amends ASC 820, Fair Value Measurements. The amended guidance eliminates the requirement to categorize investments using net asset value as a practical expedient for fair value within the fair value hierarchy. The adoption of this guidance resulted in changes to disclosures only. Refer to Note 8 for the disclosure in accordance with the adopted guidance.

On January 1, 2016, the Company adopted ASU 2015-09, which amends ASC 944, Financial Services-Insurance. The amended guidance requires additional disclosures for short duration insurance contracts. The adoption of this guidance had no material impact on the Company’s consolidated financial statements. Refer to Note 2 for discussion on short duration insurance contracts.

 

16

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Pending Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The amended guidance develops a single standard to recognize revenue when the identified performance obligation is satisfied. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 by one year for all entities. The Company will adopt ASU 2014-09 for annual periods beginning January 1, 2018. The Company is currently in the process of determining the impact of adoption.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Liabilities. The amended guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The Company will adopt the ASU for annual periods beginning January 1, 2018. The Company is currently in the process of determining the impact of adoption.

In February 2016, the FASB issued ASU 2016-02, Leases Section A – Leases. The amended guidance introduces a new standard on leases that requires recognition of assets and liabilities arising from all leasing arrangements on the balance sheet. The Company will adopt the ASU for annual periods beginning January 1, 2019. The Company is currently in the process of determining the impact of adoption.

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The update clarifies that a change in the hedging derivative’s counterparty does not, in and of itself, trigger de-designation of a hedging relationship provided that all other hedge accounting criteria continue to be met. The Company will adopt the ASU for annual periods beginning January 1, 2017. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments. The update clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence as amended by the ASU. Consequently, the Company does not have to separately assess whether the event that triggers its ability to exercise the contingent option is itself indexed only to interest rates or credit risk. The Company will adopt the ASU for annual periods beginning January 1, 2017. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, Equity Method and Joint Ventures: Simplifying the Transition to the Equity method of Accounting. The update simplifies the equity method of accounting by eliminating the requirement to retrospectively apply the equity method to an investment that subsequently qualified for such accounting as a result of an increase in the level of ownership interest or degree of influence. Consequently, when an investment qualifies for equity method, the cost of acquiring the additional interest in the investee would be added to the current basis of the investor’s previously held interest, and the equity method would be applied subsequently from the date on which the investor obtains the ability to exercise significant influence over the investee. Unrealized holding gains or losses in accumulated other comprehensive income related to an available-for-sale security that becomes eligible for the equity method are to be recognized in earnings as of the date on which the investment qualifies for the equity method. The Company will adopt the ASU for annual periods beginning January 1, 2017. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. The guidance introduces a new approach for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The Company will adopt the ASU for annual periods beginning January 1, 2020. The Company is currently in the process of determining the impact of adoption.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The amended guidance clarifies how certain transactions should be classified in the statement of cash flows. The Company will adopt the ASU for annual periods beginning January 1, 2018. The Company is currently in the process of determining the impact of adoption.

 

17

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(4) Certain Long-Duration Contracts

Variable Annuity Contracts

The Company provides various forms of guarantees to benefit the related contractholders of variable annuity contracts issued through general and separate accounts. The primary guarantee types include GMDB and GLWB.

The GMDB, offered on variable annuity contracts, provides a specified minimum return upon death. Many of these death benefits are spousal, whereby a death benefit will be paid upon death of the first spouse. The survivor has the option to terminate the contract or continue it by having the death benefit paid into the contract and having a second death benefit paid upon the survivor’s death.

The GLWB, primarily offered in the Company’s Lifetime Income products, are living benefits that provide for enhanced retirement income security without the liquidity loss associated with annuitization. The withdrawal rates vary based on the age when withdrawals begin and are applied to a benefit base to determine the guaranteed lifetime income amount available to a contractholder. The benefit base is equal to the variable annuity premium at contract issuance and may increase as a result of a feature driven by minimum return and contract duration.

Other guarantee types the Company previously offered include guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum income benefits (“GMIB”). The GMAB is a living benefit that provides the contractholder with a guaranteed return of deposits, adjusted proportionately for withdrawals, after a specified time period (5, 7 or 10 years). The GMIB is a living benefit that provides the contractholder with a guaranteed annuitization stream of income. The separate account value subject to GMAB was $359 million and $496 million for the years ended December 31, 2016 and December 31, 2015, respectively. The separate account value subject to GMIB was $347 million and $380 million for the years ended December 31, 2016 and December 31, 2015, respectively. The net amount at risk, general account value, reserve balances and paid claims for GMAB and GMIB were immaterial for the years ended December 31, 2016 and 2015.

The following table summarizes information regarding variable annuity contracts with GMDB and GLWB invested in general and separate accounts, as of the dates indicated (a contract may contain multiple guarantees):

 

     December 31, 2016      December 31, 2015  

(in millions)

    General
account
value		      Separate
account
value		      Net
amount
at risk1		      Average
age2		      General
account
value		      Separate
account
value		      Net
amount
at risk1		      Average
age2		  

Contracts with GMDB:

                        

Return of net deposits

    $ 922      $ 27,459      $ 76        66      $ 885      $ 24,452      $ 208        66  

Minimum return or anniversary contract value

      1,813        31,380        555        71        1,817        31,511        1,133        70  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total contracts with GMDB

    $ 2,735      $ 58,839      $ 631        69      $ 2,702      $ 55,963      $ 1,341        68  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Contracts with GLWB:

                        

GLWB minimum return or anniversary contract value

    $ 149      $ 34,974      $ 166        67      $ 141      $ 32,187      $ 142        67  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

1 Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit).
2 Represents the weighted average attained age of contractholders at the respective date.

The following table summarizes the reserve balances for the primary guarantees on variable annuity contracts, as of the dates indicated:

 

     December 31,  

(in millions)

    2016      2015  

GMDB

    $ 170      $ 148  

GLWB

    $ 297      $ 180  

 

18

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

During 2016, the Company recognized an increase in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions for guarantees on variable annuity contracts, primarily related to the Company’s assumptions related to lapses, mortality, interest rates and market rates of return. For the year ended December 31, 2016, the updated assumptions resulted in an increase to life insurance benefits and claims of $62 million and lower amortization of DAC of $21 million.

During 2015, the Company recognized a net decrease in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions, primarily related to the Company’s assumptions of participant benefit utilization of the net settlement option within the GLWB. The Company updated its estimate to reduce expected utilization of the net settlement option. For the year ended December 31, 2015, the change in estimate resulted in net realized investment gains of $187 million, an increase to life insurance benefits and claims of $164 million and lower amortization of DAC of $28 million.

Paid claims for GMDB were $36 million and $20 million for the years ended December 31, 2016 and 2015, respectively. Paid claims for GLWB were immaterial for the years ended December 31, 2016 and 2015.

The following table summarizes the account balances of deferred variable annuity contracts with guarantees invested in separate accounts, as of the dates indicated:

 

     December 31,  

(in millions)

    2016      2015  

Mutual funds:

      

Bond

    $ 5,986      $ 5,371  

Domestic equity

      48,824        46,469  

International equity

      3,010        3,001  
  

 

 

     

 

 

  

Total mutual funds

    $ 57,820      $ 54,841  

Money market funds

      1,019        1,122  
  

 

 

     

 

 

  

Total1

    $ 58,839      $ 55,963  
  

 

 

     

 

 

  

 

1 Excludes $30.2 billion and $31.3 billion as of December 31, 2016 and 2015, respectively, of separate account assets not related to deferred variable annuity contracts with guarantees, primarily attributable to retirement plan, variable universal life and COLI products.

Fixed Annuity Contracts

The Company offers certain fixed indexed annuity products with GMDB and GLWB. As of December 31, 2016 and 2015, the general account value for contracts with GMDB was $5.2 billion and $2.7 billion, respectively, which includes $2.5 billion and $1.4 billion, respectively, of general account value relating to contracts that also have GLWB. The net amount at risk, reserve balance and paid claims for these guarantees were immaterial as of December 31, 2016 and 2015.

Universal and Variable Universal Life Insurance Contracts

The Company offers certain universal life and variable universal life insurance products with no-lapse guarantees. These no-lapse guarantees provide that a policy will not lapse so long as the policyholder makes minimum premium payments. The reserve balances on these guarantees were $710 million and $548 million as of December 31, 2016 and 2015, respectively. Paid claims on these guarantees were immaterial for the years ended December 31, 2016 and 2015.

The following table summarizes information regarding universal and variable universal life insurance contracts with no-lapse guarantees invested in general and separate accounts, as of the dates indicated:

 

(in millions)

    General
account
value		      Separate
account
value		      Adjusted
insurance
in force1		      Average
age2		  

December 31, 2016

    $ 2,991      $ 2,117      $ 55,053        51  

December 31, 2015

    $ 2,473      $ 2,053      $ 48,140        51  

 

1 The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value and reinsurance.
2 Represents the weighted average attained age of contractholders at the respective date.

 

19

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(5) Deferred Policy Acquisition Costs

The following table summarizes changes in the DAC balance, as of the dates indicated:

 

     December 31,  

(in millions)

    2016      2015      2014  

Balance at beginning of year

    $ 5,200      $ 4,063      $ 3,778  

Capitalization of DAC

      823        870        685  

Amortization of DAC, excluding unlocks

      (412 )       (326 )       (397 ) 

Amortization of DAC related to unlocks

      (21 )       258        190  

Adjustments to DAC related to unrealized gains and losses on available- for-sale securities

      (158 )       335        (193 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of year

    $ 5,432      $ 5,200      $ 4,063  
  

 

 

     

 

 

     

 

 

  

During 2016, the Company conducted its annual comprehensive review of model assumptions used to project DAC and other related balances, including valuation of business acquired (“VOBA”) and unearned revenue reserves. As part of this review, the Company recognized an increase in amortization for DAC of $21 million and a decrease in amortization for other related balances of $75 million. The updated assumptions were primarily related to a decrease in expected lapse rates and mortality performance. This was partially offset by updated assumptions for persistency, interest rates and market rates of return.

During 2015, the Company recognized a decrease in amortization for DAC of $258 million and decrease in amortization for other related balances of $21 million as a result of the annual comprehensive review of model assumptions and enhancements. The updated assumptions were primarily related to revisions made to the Company’s economic hedging strategies in conjunction with the change in estimate discussed in Note 4, as well as a decrease in the expected lapse rates for certain variable annuity products.

During 2014, the Company recognized a decrease in amortization for DAC of $190 million and decrease in amortization for other related balances of $15 million as a result of the annual comprehensive review of model assumptions and enhancements. The updated assumptions were primarily related to the actual performance of the block of business since the prior year review and the expectations for lapses, partially offset by an update to the Company’s long-term assumptions for separate account investment performance.

 

20

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(6) Investments

Available-for-Sale Securities

The following table summarizes the amortized cost, unrealized gains and losses and fair value of available-for-sale securities, as of the dates indicated:

 

(in millions)

    Amortized
cost		      Unrealized
gains		      Unrealized
losses		      Fair value  

December 31, 2016

            

Fixed maturity securities:

            

U.S. government and agencies

    $ 596      $ 49      $ —        $ 645  

Obligations of states, political subdivisions and foreign governments

      2,454        265        23        2,696  

Corporate public securities

      27,355        1,049        350        28,054  

Corporate private securities

      5,731        227        147        5,811  

Residential mortgage-backed securities

      3,161        126        39        3,248  

Commercial mortgage-backed securities

      1,260        23        4        1,279  

Asset-backed securities

      1,967        30        40        1,957  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities

    $ 42,524      $ 1,769      $ 603      $ 43,690  

Equity securities

      2        8        —          10  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total available-for-sale securities

    $ 42,526      $ 1,777      $ 603      $ 43,700  
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2015

            

Fixed maturity securities:

            

U.S. government and agencies

    $ 343      $ 59      $ —        $ 402  

Obligations of states, political subdivisions and foreign governments

      2,137        241        11        2,367  

Corporate public securities

      23,174        868        752        23,290  

Corporate private securities

      5,082        203        115        5,170  

Residential mortgage-backed securities

      3,036        152        42        3,146  

Commercial mortgage-backed securities

      1,539        37        11        1,565  

Asset-backed securities

      1,685        19        74        1,630  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities

    $ 36,996      $ 1,579      $ 1,005      $ 37,570  

Equity securities

      7        14        —          21  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total available-for-sale securities

    $ 37,003      $ 1,593      $ 1,005      $ 37,591  
  

 

 

     

 

 

     

 

 

     

 

 

  

The fair value of the Company’s available-for-sale securities may fluctuate significantly in response to changes in interest rates, investment quality ratings and credit spreads. The Company has the ability and intent to hold equity securities until anticipated recovery. The Company does not have the intent to sell, nor is it more likely than not that it will be required to sell, fixed maturity securities in an unrealized loss position.

 

21

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The following table summarizes the amortized cost and fair value of fixed maturity securities, by contractual maturity, as of December 31, 2016. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without early redemption penalties.

 

(in millions)

    Amortized
cost		      Fair
value		  

Fixed maturity securities:

      

Due in one year or less

    $ 1,122      $ 1,135  

Due after one year through five years

      11,637        12,127  

Due after five years through ten years

      11,677        11,727  

Due after ten years

      11,700        12,217  
  

 

 

     

 

 

  

Subtotal

    $ 36,136      $ 37,206  

Residential mortgage-backed securities

      3,161        3,248  

Commercial mortgage-backed securities

      1,260        1,279  

Asset-backed securities

      1,967        1,957  
  

 

 

     

 

 

  

Total fixed maturity securities

    $ 42,524      $ 43,690  
  

 

 

     

 

 

  

The following table summarizes the components of net unrealized gains and losses, as of the dates indicated:

 

     December 31,  

(in millions)

    2016      2015  

Net unrealized gains on available-for-sale securities, before adjustments and taxes1

    $ 1,174      $ 588  

Adjustment to DAC

      (191 )       (33 ) 

Adjustment to future policy benefits and claims

      (68 )       (16 ) 

Adjustment to policyholder dividend obligation

      (74 )       (67 ) 

Deferred federal income tax expense

      (288 )       (156 ) 
  

 

 

     

 

 

  

Net unrealized gains on available-for-sale securities

    $ 553      $ 316  
  

 

 

     

 

 

  

 

1 Includes net unrealized gains (losses) of $1 million and ($20) million as of December 31, 2016 and 2015, respectively, related to the non-credit portion of other-than-temporarily impaired securities.

The following table summarizes the change in net unrealized gains and losses reported in accumulated other comprehensive income, for the years ended:

 

     December 31,  

(in millions)

    2016      2015  

Balance at beginning of year

    $ 316      $ 1,036  

Unrealized gains and losses arising during the year:

      

Net unrealized gains (losses) on available-for-sale securities before adjustments

      499        (1,662 ) 

Non-credit impairments and subsequent changes in fair value of impaired debt securities

      21        (11 ) 

Net adjustment to DAC and other expense

      (158 )       339  

Net adjustment to future policy benefits and claims

      (52 )       143  

Net adjustment to policyholder dividend obligations

      (7 )       53  

Related federal income tax (expense) benefit

      (109 )       401  
  

 

 

     

 

 

  

Unrealized gains (losses) on available-for-sale securities

    $ 194      $ (737 ) 

Less: Reclassification adjustment for net losses realized on available-for-sale securities, net of tax benefit ($23 and $9 as of December 31, 2016 and 2015, respectively)

      (43 )       (17 ) 
  

 

 

     

 

 

  

Net unrealized gains (losses) on available-for-sale securities

    $ 237      $ (720 ) 
  

 

 

     

 

 

  

Balance at end of year

    $ 553      $ 316  
  

 

 

     

 

 

  

 

22

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The following table summarizes, by asset class, available-for-sale securities, in an unrealized loss position based on the amount of time each type of security has been in an unrealized loss position, as well as the related fair value, as of the dates indicated:

 

     Less than or equal to one year      More than one year      Total  

(in millions)

    Fair
value		      Unrealized
losses		      Fair
value		      Unrealized
losses		      Unrealized
losses1		  

December 31, 2016

               

Fixed maturity securities:

               

Corporate public securities

    $ 7,315      $ 255      $ 990      $ 95      $ 350  

Corporate private securities

      1,447        65        508        82        147  

Residential mortgage-backed securities

      303        6        397        33        39  

Asset-backed securities

      327        1        365        39        40  

Other

      716        21        94        6        27  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total 2

    $ 10,108      $ 348      $ 2,354      $ 255      $ 603  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2015

               

Fixed maturity securities:

               

Corporate public securities

    $ 8,170      $ 455      $ 975      $ 297      $ 752  

Corporate private securities

      1,642        56        418        59        115  

Residential mortgage-backed securities

      427        3        423        39        42  

Asset-backed securities

      654        7        756        67        74  

Other

      844        20        81        2        22  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total2

    $ 11,737      $ 541      $ 2,653      $ 464      $ 1,005  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

1 As of December 31, 2016 and 2015, there were $118 million and $448 million, respectively, of unrealized losses related to available-for-sale securities with a fair value to amortized cost ratio of less than 80%.
2 Represents 946 and 1,059 available-for-sale securities in an unrealized loss position as of December 31, 2016 and 2015, respectively.

The Company believes the unrealized losses on these available-for-sale securities represent temporary fluctuations in economic factors that are not indicative of OTTI.

Mortgage Loans, Net of Allowance

The following table summarizes the amortized cost of mortgage loans by method of evaluation for credit loss, and the related valuation allowances by type of credit loss, as of the dates indicated:

 

     December 31,  

(in millions)

    2016      2015  

Amortized cost:

      

Loans with non-specific reserves

    $ 9,775      $ 8,403  

Loans with specific reserves1

      17        19  
  

 

 

     

 

 

  

Total amortized cost

    $ 9,792      $ 8,422  
  

 

 

     

 

 

  

Valuation allowance:

      

Non-specific reserves

    $ 28      $ 23  

Specific reserves

      4        3  
  

 

 

     

 

 

  

Total valuation allowance2

    $ 32      $ 26  
  

 

 

     

 

 

  

Mortgage loans, net of allowance

    $ 9,760      $ 8,396  
  

 

 

     

 

 

  

 

1 Interest income recognized on mortgage loans with a specific reserve was immaterial for the years ended December 31, 2016, 2015 and 2014. The average recorded investment was $18 million, $14 million and $16 million for the years ended December 31, 2016, 2015 and 2014, respectively.
2 Changes in the valuation allowance are due to current period provisions and recoveries. These changes in the valuation allowance for the years ended December 31, 2016, 2015 and 2014 were immaterial.

 

23

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

As of December 31, 2016 and 2015, the Company’s mortgage loans classified as delinquent and/or in non-accrual status were immaterial in relation to the total mortgage loan portfolio. The Company had no mortgage loans 90 days or more past due and still accruing interest.

The following table summarizes the LTV ratio and DSC ratios of the mortgage loan portfolio, as of the dates indicated:

 

     LTV ratio      DSC ratio  

(in millions)

    Less than
90%		      90% or
greater		      Total1      Greater than
1.00		      Less than
1.00		      Total1  

December 31, 2016

                  

Apartment

    $ 3,503      $ 11      $ 3,514      $ 3,514      $ —        $ 3,514  

Industrial

      1,459        14        1,473        1,439        34        1,473  

Office

      1,570        3        1,573        1,539        34        1,573  

Retail

      2,850        30        2,880        2,866        14        2,880  

Other

      352        —          352        352        —          352  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total2

    $ 9,734      $ 58      $ 9,792      $ 9,710      $ 82      $ 9,792  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2015

                  

Apartment

    $ 2,791      $ —        $ 2,791      $ 2,791      $ —        $ 2,791  

Industrial

      1,221        25        1,246        1,193        53        1,246  

Office

      1,318        3        1,321        1,286        35        1,321  

Retail

      2,765        2        2,767        2,756        11        2,767  

Other

      297        —          297        297        —          297  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total3

    $ 8,392      $ 30      $ 8,422      $ 8,323      $ 99      $ 8,422  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

1 While these loan quality measurements contribute to management’s assessment of relative credit risk in the commercial mortgage loan portfolio for the dates indicated, based on underwriting criteria and ongoing assessment of the properties’ performance, management believes the amounts, net of valuation allowance, are collectible.
2 As of December 31, 2016, the weighted average DSC ratios for the respective LTV ratio ranges above were 2.05 and 1.26, with a total weighted average DSC ratio of 2.04. As of December 31, 2016, the weighted average LTV ratios for the respective DSC ratio ranges above were 58% and 74%, with a total weighted average LTV ratio of 59%.
3 As of December 31, 2015, the weighted average DSC ratios for the respective LTV ratio ranges above were 2.02 and 0.83, with a total weighted average DSC ratio of 2.02. As of December 31, 2015, the weighted average LTV ratios for the respective DSC ratio ranges above were 60% and 85%, with a total weighted average LTV ratio of 60%.

Available-For-Sale Securities on Deposit, Held in Trust and Pledged as Collateral

Available-for-sale securities with a carrying value of $10 million and $8 million were on deposit with various regulatory agencies as required by law as of December 31, 2016 and 2015, respectively. Additionally, available-for-sale securities with a carrying value of $260 million and $538 million were pledged as collateral to secure recoveries under reinsurance contracts and other funding agreements as of December 31, 2016 and 2015, respectively. These securities are primarily included in fixed maturity securities in the consolidated balance sheets.

 

24

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Net Investment Income

The following table summarizes net investment income, by investment type, for the years ended:

 

     December 31,  

(in millions)

    2016      2015      2014  

Fixed maturity securities, available-for-sale

    $ 1,781      $ 1,646      $ 1,575  

Mortgage loans

      407        390        362  

Alternative Investments

      (60 )       (56 )       (32 ) 

Policy loans

      52        51        51  

Other

      21        12        3  
  

 

 

     

 

 

     

 

 

  

Gross investment income

    $ 2,201      $ 2,043      $ 1,959  

Investment expenses

      62        61        59  
  

 

 

     

 

 

     

 

 

  

Net investment income

    $ 2,139      $ 1,982      $ 1,900  
  

 

 

     

 

 

     

 

 

  

Net Realized Investment Gains and Losses, Including Other-Than-Temporary Impairments

The following table summarizes net realized investment gains and losses, including other-than-temporary impairments, by source, for the years ended:

 

     December 31,  

(in millions)

    2016      2015      2014  

Realized gains on sales1

    $ 50      $ 15      $ 31  

Realized losses on sales1

      (90 )       (41 )       (19 ) 

Net realized derivative (losses) gains

      (42 )       120        (1,087 ) 

Valuation losses and other

      (3 )       (11 )       2  

OTTI losses2

      (26 )       (1 )       (5 ) 
  

 

 

     

 

 

     

 

 

  

Net realized investment (losses) gains

    $ (111 )     $ 82      $ (1,078 ) 
  

 

 

     

 

 

     

 

 

  

 

1 Proceeds from the sale of available-for-sale securities were $852 million, $466 million and $647 million during the years ended December 31, 2016, 2015 and 2014, respectively. Gross gains of $49 million, $11 million and $17 million and gross losses of $89 million, $36 million and $10 million were realized on sales of available-for-sale securities during the years ended December 31, 2016, 2015 and 2014, respectively.
2 OTTI on fixed maturity securities excludes $6 million, $2 million and $1 million of non-credit losses included in other comprehensive income for the years ended December 31, 2016, 2015 and 2014, respectively.

The following table summarizes the cumulative credit losses, for the years ended:

 

     December 31,  

(in millions)

    2016      2015      2014  

Cumulative credit losses at beginning of year1

    $ (224 )     $ (254 )     $ (272 ) 

New credit losses

      (22 )       (1 )       (2 ) 

Incremental credit losses

      —          —          (4 ) 

Losses related to securities included in the beginning balance sold or paid down during the period

      51        31        24  
  

 

 

     

 

 

     

 

 

  

Cumulative credit losses at end of year1

    $ (195 )     $ (224 )     $ (254 ) 
  

 

 

     

 

 

     

 

 

  

 

1 Cumulative credit losses are defined as amounts related to the Company’s credit portion of the OTTI losses on debt securities that the Company does not intend to sell and that it is not more likely than not the Company will be required to sell prior to recovery of the amortized cost basis.

 

25

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(7) Derivative Instruments

The Company is exposed to certain risks related to its ongoing business operations which are managed using derivative instruments.

Interest rate risk management. In the normal course of business, the Company enters into transactions that expose the Company to interest rate risk arising from mismatches between assets and liabilities. The Company uses interest rate swaps and futures to reduce or alter interest rate exposure.

Interest rate contracts are used by the Company in association with fixed and variable rate investments to achieve cash flow streams that support certain financial obligations of the Company and to produce desired investment returns. As such, interest rate contracts are generally used to convert fixed rate cash flow streams to variable rate cash flow streams or vice versa. In addition, prior to expiry in June 2015, the Company engaged in an interest rate swap program, which was structured to provide an offset against the negative impact of higher interest rates on the Company’s statutory surplus position and to mitigate the negative impact of lower interest rates on certain guarantees related to variable annuity contracts.

Equity market risk management. The Company issues a variety of insurance and annuity products that expose the Company to equity risks. To mitigate these risks, the Company enters into a variety of derivatives including equity index futures, options and total return swaps.

Other risk management. As part of its regular investing activities, the Company may purchase foreign currency denominated investments. These investments and the associated income expose the Company to volatility associated with movements in foreign exchange rates. As foreign exchange rates change, the increase or decrease in the cash flows of the derivative instrument are intended to mitigate the changes in the functional-currency equivalent cash flows of the hedged item. To mitigate this risk, the Company uses cross-currency swaps, which are included in other derivative contracts in the following tables.

Credit risk associated with derivatives transactions. The Company periodically evaluates the risks within the derivative portfolios due to credit exposure. When evaluating these risks, the Company considers several factors which include, but are not limited to, the counterparty credit risk associated with derivative receivables, the Company’s own credit as it relates to derivative payables, the collateral thresholds associated with each counterparty and changes in relevant market data in order to gain insight into the probability of default by the counterparty. The Company also considers the impact credit exposure could have on the effectiveness of the Company’s hedging relationships. As of December 31, 2016 and 2015, the impact of the exposure to credit risk on the fair value measurement of derivatives and the effectiveness of the Company’s hedging relationships was immaterial.

 

26

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The following table summarizes the fair value and related notional amounts of derivative instruments, as of the dates indicated:

 

     Derivative assets      Derivative liabilities  

(in millions)

    Fair value      Notional      Fair value      Notional  

December 31, 2016

            

Derivatives designated and qualifying as hedging instruments

    $ 128      $ 942      $ 11      $ 288  

Derivatives not designated as hedging instruments:

            

Interest rate contracts

    $ 75      $ 2,078      $ 110      $ 1,681  

Equity contracts

      633        9,562        —          —    

Total return swaps and other derivative contracts

      —          —          2        2  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total derivatives1

    $ 836      $ 12,582      $ 123      $ 1,971  
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2015

            

Derivatives designated and qualifying as hedging instruments

    $ 86      $ 725      $ 2      $ 89  

Derivatives not designated as hedging instruments:

            

Interest rate contracts

    $ 39      $ 875      $ 98      $ 1,059  

Equity contracts

      445        7,329        —          —    

Total return swaps and other derivative contracts

      —          77        6        2  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total derivatives1

    $ 570      $ 9,006      $ 106      $ 1,150  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 Fair value balance excludes accrued interest on derivative assets and liabilities of $10 million and $11 million, respectively, as of December 31, 2016 and 2015.

Of the $836 million and $570 million of fair value of total derivative assets at December 31, 2016 and 2015, $71 million and $48 million, respectively, are subject to master netting agreements. The Company received $660 million and $374 million of cash collateral and held $89 million and $99 million, respectively, of securities as off-balance sheet collateral, resulting in an immaterial uncollateralized position as of December 31, 2016 and 2015. Of the $123 million and $106 million of fair value of total derivative liabilities at December 31, 2016 and 2015, $71 million and $48 million are subject to master netting agreements, respectively. The Company posted $151 million and $92 million of cash collateral and pledged securities with a fair value of $54 million and $64 million, respectively, resulting in an immaterial uncollateralized position as of December 31, 2016 and 2015.

The following table summarizes gains and losses for derivative instruments recognized in net realized investment gains and losses in the consolidated statements of operations, for the years ended:

 

     December 31,  

(in millions)

    2016      2015      2014  

Derivatives not designated as hedging instruments:

         

Interest rate contracts

    $ 13      $ (141 )     $ 142  

Equity contracts

      (81 )       (257 )       (79 ) 

Total return swaps

      —          (44 )       (195 ) 

Other derivative contracts

      8        (6 )       4  

Net interest settlements

      (2 )       32        20  
  

 

 

     

 

 

     

 

 

  

Total derivative losses1

    $ (62 )     $ (416 )     $ (108 ) 

Change in embedded derivative liabilities and related fees2

      20        536        (979 ) 
  

 

 

     

 

 

     

 

 

  

Net realized derivative (losses) gains

    $ (42 )     $ 120      $ (1,087 ) 
  

 

 

     

 

 

     

 

 

  

 

1 Included in total derivative losses are economic hedging (losses) gains of $(2) million, $(402) million and $941 million related to the guaranteed benefit annuity programs for the years ended December 31, 2016, 2015 and 2014, respectively. Included in total derivative (losses) gains for the year ended December 31, 2015 and 2014 are economic hedging gains (losses) of $52 million and $(1.0) billion related to the program that protects against the negative impact of higher interest rates on the Company’s statutory surplus position through expiry.
2 The annual comprehensive review of model assumptions for the individual variable annuity business produced an immaterial impact for the year ended December 31, 2016. The annual review produced a favorable impact for the year ended December 31, 2015, attributable to the change in estimate discussed in Note 4. The annual review produced a favorable impact for the year ended December 31, 2014, primarily due to model enhancements and updated assumptions for discounting and benefit utilization, partially offset by mortality and lapse rates.

 

27

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(8) Fair Value Measurements

The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2016:

 

(in millions)

    Level 1      Level 2      Level 3      Total  

Assets

            

Investments:

            

Fixed maturity securities, available-for-sale:

            

U.S. government and agencies

    $ 642      $ 1      $ 2      $ 645  

Obligations of states, political subdivisions and foreign governments

      57        2,639        —          2,696  

Corporate public securities

      —          27,845        209        28,054  

Corporate private securities

      —          4,747        1,064        5,811  

Residential mortgage-backed securities

      1,385        1,857        6        3,248  

Commercial mortgage-backed securities

      —          1,279        —          1,279  

Asset-backed securities

      —          1,817        140        1,957  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities, available-for-sale, at fair value

    $ 2,084      $ 40,185      $ 1,421      $ 43,690  

Other investments at fair value

      1,050        957        1        2,008  
  

 

 

     

 

 

     

 

 

     

 

 

  

Investments at fair value

    $ 3,134      $ 41,142      $ 1,422      $ 45,698  
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative instruments - assets

      —          203        633        836  

Separate account assets1

      87,266        1,374        65        88,705  
  

 

 

     

 

 

     

 

 

     

 

 

  

Assets at fair value

    $ 90,400      $ 42,719      $ 2,120      $ 135,239  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities

            

Future policy benefits and claims

    $ —        $ —        $ 346      $ 346  

Derivative instruments - liabilities

      —          121        2        123  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities at fair value

    $ —        $ 121      $ 348      $ 469  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 Excludes $366 million as of December 31, 2016 of separate account assets that use net asset value (“NAV”) as a practical expedient to estimate fair value.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2016:

 

(in millions)

    Fixed
maturity
securities2		     Other
investments		     Derivative
assets3		     Separate
account
assets4		     Total assets
at fair value		     Liabilities at
fair value3		  

Balance as of December 31, 2015

    $ 1,228     $ 37     $ 445     $ 361     $ 2,071     $ 71  

Net gains (losses)

             

In operations1

      (12 )      8       92       (13 )      75       277  

In other comprehensive income

      39       (11 )      —         —         28       —    

Purchases

      147       —         115       —         262       —    

Sales

      (178 )      (33 )      (19 )      (283 )      (513 )      —    

Transfers into Level 3

      261       —         —         —         261       —    

Transfers out of Level 3

      (64 )      —         —         —         (64 )      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2016

    $ 1,421     $ 1     $ 633     $ 65     $ 2,120     $ 348  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1 Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized gains (losses) included in operations on assets and liabilities still held at the end of the year was $157 million for future policy benefits and claims, $145 million for derivative assets, $(4) million for derivative liabilities and $(2) million for other investments at fair value.
2 Non-binding broker quotes were utilized to determine a fair value of $1.0 billion of the total fixed maturity securities as of December 31, 2016.
3 Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities.
4 Certain prior period amounts related to separate account assets that use NAV as a practical expedient to estimate fair value has changed to conform with current period presentation as a result of new guidance.

 

28

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Transfers into and out of Level 3 during the year ended December 31, 2016 are primarily due to the change in observability of pricing inputs used for certain corporate public and private securities. There were no material transfers between Levels 1 and 2 during the year ended December 31, 2016.

Living Benefit Guarantees

The following table summarizes significant unobservable inputs used for fair value measurements for living benefits liabilities, included in future policy benefits and claims and classified as Level 3 as of December 31, 2016:

 

Unobservable Inputs

    Range

Mortality

    0.1% - 10%3

Lapse

    0% - 35%4

Wait period

    0 yrs - 30 yrs5

Efficiency of benefit utilization1

    60% - 100%6

Discount rate2

    See note 2 below

Index volatility

    15% - 25%

 

1 The unobservable input is not applicable to GMABs.
2 Incorporates the liquidity and non-performance risk adjustment. The liquidity spread takes into consideration market observables for spreads in illiquid assets. The non-performance risk adjustment reflects an additional spread over LIBOR determined by market observables for similarly rated public bonds.
3 Represents the mortality for the majority of business with living benefits, with policyholder issue ages ranging from 45 to 85.
4 Certain scenarios could drive dynamic lapses outside of the specified range. The range shown represents lapses for the vast majority of scenarios.
5 A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period.
6 A portion of the contractholders could withdraw more than the benefit guarantee allows. For these policies, the excess withdrawals are assumed to be temporary before reverting back to 100% utilization.

The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the living benefits liability:

Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability.

Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, benefit in-the-moneyness, tax status (i.e. qualified or non-qualified), interest rate levels, short-term equity market performance, partial withdrawal behavior and applicable surrender charges. All else being equal, policies that are in-the-money will have lower lapse rates than policies that are out-of-the-money, and policies that have a surrender charge present will have lower lapse rates than policies without a surrender charge.

The assumed wait period and the efficiency of utilization determine the timing and amount of living benefits withdrawals. These assumptions vary by the product type, age of the policyholder, policy size and policy duration. Many products have a bonus feature which enhances the guarantee on every policy anniversary for the first ten years so long as withdrawals have not commenced. All else being equal, policies commencing withdrawals at a time around the year ten bonus will have higher liability values than policies commencing withdrawals 20 years after issue or policies commencing withdrawals only one year after issue. In addition, policies that are assumed to withdraw the maximum permitted amount will have a higher liability value than a policy that is assumed to withdraw less than the maximum allowed amount.

A higher discount rate tends to decrease the value of the liability and a lower discount rate tends to increase the value of the liability.

Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability.

 

29

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Indexed Products

The following table summarizes significant unobservable inputs used for fair value measurements for indexed universal life and indexed annuity products classified as Level 3 as of December 31, 2016:

 

Unobservable Inputs

    Range

Mortality

    0% - 5%¹

Lapse

    0% - 10%

Index volatility

    15% - 25%2

 

1 Represents the mortality for the majority of business, with policyholder issue ages ranging from 0 to 80.
2 Certain managed volatility indices utilize a 5% index volatility.

The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the indexed products:

Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability.

Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, and applicable surrender charges. All else being equal, policies with a surrender charge present will have lower lapse rates than policies without a surrender charge.

Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability.

 

30

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2015:

 

(in millions)

    Level 1      Level 2      Level 3      Total  

Assets

            

Investments:

            

Fixed maturity securities, available-for-sale:

            

U.S. government and agencies

    $ 399      $ 1      $ 2      $ 402  

Obligations of states, political subdivisions and foreign governments

      63        2,304        —          2,367  

Corporate public securities

      —          23,142        148        23,290  

Corporate private securities

      —          4,226        944        5,170  

Residential mortgage-backed securities

      846        2,291        9        3,146  

Commercial mortgage-backed securities

      —          1,565        —          1,565  

Asset-backed securities

      —          1,505        125        1,630  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities, available-for-sale, at fair value

    $ 1,308      $ 35,034      $ 1,228      $ 37,570  

Other investments at fair value

      270        546        37        853  
  

 

 

     

 

 

     

 

 

     

 

 

  

Investments at fair value

    $ 1,578      $ 35,580      $ 1,265      $ 38,423  
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative instruments - assets

      —          125        445        570  

Separate account assets1

      83,466        1,323        361        85,150  
  

 

 

     

 

 

     

 

 

     

 

 

  

Assets at fair value

    $ 85,044      $ 37,028      $ 2,071      $ 124,143  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities

            

Future policy benefits and claims

    $ —        $ —        $ 65      $ 65  

Derivative instruments - liabilities

      —          100        6        106  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities at fair value

    $ —        $ 100      $ 71      $ 171  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 Excludes $2.1 billion of separate account assets that use NAV as a practical expedient to estimate fair value, which presentation has changed to conform with the current period presentation as a result of new guidance. This included an investment in a mutual fund that was not redeemed until the guarantee period expired in 2016 with a net asset value of $1.7 billion. The investment strategy of this fund was to build a portfolio where the assets were sufficient to achieve a target portfolio value by the end of the guarantee period.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2015:

 

(in millions)

    Fixed
maturity
securities2		     Other
investments		      Derivative
assets3		     Separate
account
assets4		      Total assets
at fair value		     Liabilities at
fair value3		  

Balance as of December 31, 2014

    $ 1,267     $ 36      $ 411     $ 354      $ 2,068     $ 264  

Net (losses) gains

               

In operations1

      (6 )      —          (46 )      7        (45 )      (313 ) 

In other comprehensive income

      (44 )      —          —         —          (44 )      —    

Purchases

      142       1        104       —          247       144  

Sales

      (162 )      —          (24 )      —          (186 )      (24 ) 

Transfers into Level 3

      201       —          —         —          201       —    

Transfers out of Level 3

      (170 )      —          —         —          (170 )      —    
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Balance as of December 31, 2015

    $ 1,228     $ 37      $ 445     $ 361      $ 2,071     $ 71  
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

1 Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized gains (losses) included in operations on assets and liabilities still held at the end of the year was $316 million for future policy benefits and claims, $(9) million for derivative assets, and $2 million for derivative liabilities.
2 Non-binding broker quotes were utilized to determine a fair value of $1.1 billion of total fixed maturity securities as of December 31, 2015.
3 Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities.
4 Certain prior period amounts related to separate account assets that use NAV as practical expedient to estimate fair value has changed to conform with the current period presentation as a result of new guidance.

 

31

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Transfers into and out of Level 3 during the year ended December 31, 2015 are primarily due to the change in observability of pricing inputs used for certain corporate private securities. There were no material transfers between Levels 1 and 2 during the year ended December 31, 2015.

Financial Instruments Not Carried at Fair Value

The following table summarizes the carrying value and fair value of the Company’s financial instruments not carried at fair value as of the dates indicated. The valuation techniques used to estimate these fair values are described below.

 

     December 31, 2016      December 31, 2015  

(in millions)

    Carrying
value		      Fair
value		      Level 2      Level 3      Carrying
value		      Fair
value		      Level 2      Level 3  

Assets

                        

Investments:

                        

Mortgage loans, net of allowance

    $ 9,760      $ 9,589      $ —        $ 9,589      $ 8,396      $ 8,462      $ —        $ 8,462  

Policy loans

    $ 989      $ 989      $ —        $ 989      $ 993      $ 993      $ —        $ 993  

Other investments

    $ 72      $ 72      $ —        $ 72      $ 71      $ 71      $ —        $ 71  

Liabilities

                        

Investment contracts

    $ 31,431      $ 29,736      $ —        $ 29,736      $ 27,301      $ 25,822      $ —        $ 25,822  

Short-term debt

    $ 300      $ 300      $ —        $ 300      $ 400      $ 400      $ —        $ 400  

Long-term debt

    $ 707      $ 927      $ 920      $ 7      $ 707      $ 941      $ 934      $ 7  

Mortgage loans, net of allowance. The fair values of mortgage loans are estimated using discounted cash flow analyses based on interest rates currently being offered for similar loans to borrowers with similar credit ratings.

Policy loans. The carrying amount reported in the consolidated balance sheets approximates fair value as policy loans are fully collateralized by the cash surrender value of underlying insurance policies.

Other investments. Other investments not held at fair value consist of FHLB stock. The carrying amount reported in the consolidated balance sheets approximates fair value due to ownership restrictions and lack of market.

Investment contracts. For investment contracts without defined maturities, fair value is the amount payable on demand, net of surrender charges. For investment contracts with known or determined maturities, fair value is estimated using discounted cash flow analysis. Interest rates used in this analysis are similar to currently offered contracts with maturities consistent with those remaining for the contracts being valued. The fair value of adjustable rate contracts approximates their carrying value.

Short-term debt. The carrying amount reported in the consolidated balance sheets approximates fair value due to the short-term nature of this debt instrument.

Long-term debt. The fair values for long-term debt are based on estimated market prices using observable inputs from similar debt instruments.

 

32

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(9) Goodwill

The following table summarizes changes in the carrying value of goodwill by segment for the years indicated:

 

(in millions)

    Retirement
Plans		      Individual
Products &
Solutions - Life
and NBSG		      Total  

Balance as of December 31, 20141

    $ 25      $ 175      $ 200  

Adjustments

      —          —          —    
  

 

 

     

 

 

     

 

 

  

Balance as of December 31, 20151

    $ 25      $ 175      $ 200  

Adjustments

      —          —          —    
  

 

 

     

 

 

     

 

 

  

Balance as of December 31, 20161

    $ 25      $ 175      $ 200  
  

 

 

     

 

 

     

 

 

  

 

1 The goodwill balances have not been previously impaired.

 

33

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(10) Closed Block

The amounts shown in the following tables for assets, liabilities, revenues and expenses of the closed block are those that enter into the determination of amounts that are to be paid to policyholders.

The following table summarizes financial information for the closed block, as of the dates indicated:

 

     December 31,  

(in millions)

    2016      2015  

Liabilities:

      

Future policyholder benefits

    $ 1,602      $ 1,637  

Policyholder funds and accumulated dividends

      138        138  

Policyholder dividends payable

      20        21  

Policyholder dividend obligation

      100        99  

Other policy obligations and liabilities

      38        35  
  

 

 

     

 

 

  

Total liabilities

    $ 1,898      $ 1,930  
  

 

 

     

 

 

  

Assets:

      

Available-for-sale securities

    $ 1,286      $ 1,316  

Mortgage loans, net of allowance

      223        235  

Policy loans

      138        146  

Other assets

      98        71  
  

 

 

     

 

 

  

Total assets

    $ 1,745      $ 1,768  
  

 

 

     

 

 

  

Excess of reported liabilities over assets

    $ 153      $ 162  
  

 

 

     

 

 

  

Portion of above representing other comprehensive income:

      

Increase (decrease) in unrealized gain on fixed maturity securities, available-for-sale

    $ 7      $ (53 ) 

Adjustment to policyholder dividend obligation

      (7 )       53  
  

 

 

     

 

 

  

Total of above representing other than comprehensive income

    $ —        $ —    
  

 

 

     

 

 

  

Maximum future earnings to be recognized from assets and liabilities

    $ 153      $ 162  
  

 

 

     

 

 

  

Other comprehensive income:

      

Available-for-sale securities:

      

Fair value

    $ 1,286      $ 1,316  

Amortized cost

      1,212        1,249  

Shadow policyholder dividend obligation

      (74 )       (67 ) 
  

 

 

     

 

 

  

Net unrealized appreciation

    $ —        $ —    
  

 

 

     

 

 

  

 

34

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The following table summarizes closed block operations for the years ended:

 

     December 31,  

(in millions)

    2016      2015      2014  

Revenues:

         

Premiums

    $ 56      $ 58      $ 61  

Net investment income

      84        87        93  

Realized investment (losses) gains

      (3 )       1        1  

Realized losses credited to policyholder benefit obligation

      (1 )       (5 )       (5 ) 
  

 

 

     

 

 

     

 

 

  

Total revenues

    $ 136      $ 141      $ 150  
  

 

 

     

 

 

     

 

 

  

Benefits and expenses:

         

Policy and contract benefits

    $ 125      $ 122      $ 124  

Change in future policyholder benefits and interest credited to policyholder accounts

      (36 )       (33 )       (34 ) 

Policyholder dividends

      40        40        43  

Change in policyholder dividend obligation

      (8 )       (4 )       (1 ) 

Other expenses

      1        1        2  
  

 

 

     

 

 

     

 

 

  

Total benefits and expenses

    $ 122      $ 126      $ 134  
  

 

 

     

 

 

     

 

 

  

Total revenues, net of benefits and expenses, before federal income tax expense

    $ 14      $ 15      $ 16  

Federal income tax expense

      5        5        6  
  

 

 

     

 

 

     

 

 

  

Revenues, net of benefits and expenses and federal income tax expense

    $ 9      $ 10      $ 10  
  

 

 

     

 

 

     

 

 

  

Maximum future earnings from assets and liabilities:

         

Beginning of period

    $ 162      $ 172      $ 182  

Change during period

      (9 )       (10 )       (10 ) 
  

 

 

     

 

 

     

 

 

  

End of period

    $ 153      $ 162      $ 172  
  

 

 

     

 

 

     

 

 

  

Cumulative closed block earnings from inception through December 31, 2016, 2015 and 2014 were higher than expected as determined in the actuarial calculation. Therefore, policyholder dividend obligations (excluding the adjustment for unrealized gains on available-for-sale securities) were $26 million, $32 million and $32 million as of December 31, 2016, 2015 and 2014, respectively.

 

35

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(11) Short-Term Debt

The Company classifies debt as short-term if the maturity date at inception is less than one year.

In December 2015, the Company renewed an agreement to increase its $600 million commercial paper program to $750 million. The Company had $300 million and $400 million outstanding under the agreement as of December 31, 2016 and 2015, respectively, with a weighted average interest rate of 0.72% and 0.45%, respectively.

In November 2015, the Company terminated its $400 million unsecured revolving promissory note and line of credit agreement with its parent company.

In March 2016, the Company renewed an agreement with the FHLB to extend its ability to borrow in order to provide financing for operations. This extension, which expires on March 24, 2017, allows the Company access to borrow up to $250 million, which would be collateralized by pledged securities. The Company had $6.1 billion and $6.7 billion in eligible collateral and no amounts outstanding under the agreement as of December 31, 2016 and 2015, respectively.

In April 2015, NMIC and the Company replaced their previous $600 million revolving credit facility with a new credit facility of $750 million, which expires on April 2, 2020. The Company had no amounts outstanding under this agreement as of December 31, 2016 and 2015.

The Company has entered into an agreement with its custodial bank to borrow against the cash collateral that is posted in connection with its securities lending program. The maximum amount available under the agreement is $350 million. The borrowing rate on this program is equal to one-month U.S. LIBOR. The Company had no amounts outstanding under this agreement as of December 31, 2016 and 2015.

The amount of interest paid on short-term debt was immaterial in 2016, 2015 and 2014.

 

(12) Long-Term Debt

The following table summarizes the carrying value of long-term debt, as of the dates indicated:

 

     December 31,  

(in millions)

    2016      2015  

8.15% surplus note, due June 26, 2032, payable to NFS

    $ 300      $ 300  

7.50% surplus note, due December 17, 2031, payable to NFS

      300        300  

6.75% surplus note, due December 23, 2033, payable to NFS

      100        100  

Other

      7        7  
  

 

 

     

 

 

  

Total long-term debt

    $ 707      $ 707  
  

 

 

     

 

 

  

The Company made interest payments to NFS on surplus notes totaling $54 million for the years ended December 31, 2016, 2015 and 2014. Payments of interest and principal under the notes require the prior approval of the ODI.

 

36

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(13) Federal Income Taxes

The following table summarizes the components of federal income tax expense (benefit) for the years ended:

 

     December 31,  

(in millions)

    2016      2015      2014  

Current tax expense

    $ 61      $ 76      $ 5  

Deferred tax expense (benefit)

      65        217        (152 ) 
  

 

 

     

 

 

     

 

 

  

Total tax expense (benefit)

    $ 126      $ 293      $ (147 ) 
  

 

 

     

 

 

     

 

 

  

The following table summarizes how the total federal income tax expense (benefit) differs from the amount computed by applying the U.S. federal income tax rate to net income for the years ended:

 

     December 31,  
     2016     2015     2014  

(in millions)

    Amount     %     Amount     %     Amount     %  

Rate reconciliation:

             

Computed (expected tax expense (benefit))

    $ 316       35 %    $ 430       35 %    $ (46 )      35 % 

Dividends received deduction

      (144 )      (16 )%      (118 )      (10 )%      (87 )      66 % 

Tax credits

      (81 )      (9 )%      (63 )      (5 )%      (53 )      41 % 

Noncontrolling interest

      32       4 %      33       3 %      33       (25 )% 

Other, net

      3       —   %      11       1 %      6       (5 )% 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 126       14 %    $ 293       24 %    $ (147 )      112 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The Company’s current federal income tax liability was $52 million and $61 million as of December 31, 2016 and 2015, respectively.

The Company made $7 million, $33 million and immaterial payments for the years ended December 31, 2016, 2015 and 2014, respectively.

During 2016 and 2015, the Company recorded a tax benefit of $6 million and $1 million, respectively. These changes in estimates were primarily driven by differences in the Company’s separate account dividends received deduction (“DRD”) between the previous year’s estimate and the amount reported on the previous year’s tax return.

As of December 31, 2016, the Company had $254 million in low-income-housing credit carryforwards, which expire between 2024 and 2036, $268 million in alternative minimum tax credit carryforwards, which have an unlimited carryforward and $77 million in foreign tax credit carryforwards, which expire between 2017 and 2025. The Company expects to fully utilize all carryforwards.

 

37

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The following table summarizes the tax effects of temporary differences that gave rise to significant components of the net deferred tax liability included in other liabilities in the consolidated balance sheets, as of the dates indicated:

 

     December 31,  

(in millions)

    2016      2015  

Deferred tax assets

      

Future policy benefits and claims

    $ 953      $ 825  

Tax credit carryforwards

      599        483  

Derivatives, including embedded derivatives

      21        120  

Other

      383        411  
  

 

 

     

 

 

  

Gross deferred tax assets

    $ 1,956      $ 1,839  

Valuation allowance

      (17 )       (17 ) 
  

 

 

     

 

 

  

Gross deferred tax assets, net of valuation allowance

    $ 1,939      $ 1,822  
  

 

 

     

 

 

  

Deferred tax liabilities

      

Deferred policy acquisition costs

    $ 1,577      $ 1,502  

Available-for-sale securities

      536        315  

Other

      278        249  
  

 

 

     

 

 

  

Gross deferred tax liabilities

    $ 2,391      $ 2,066  
  

 

 

     

 

 

  

Net deferred tax liability

    $ 452      $ 244  
  

 

 

     

 

 

  

In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion of the total gross deferred tax assets will not be realized. Based on the Company’s analysis, it is more likely than not that the results of future operations and the implementation of tax planning strategies will generate sufficient taxable income to enable the Company to realize the deferred tax assets for which the Company has not established valuation allowances.

The following table is a rollforward of the beginning and ending uncertain tax positions, including permanent and temporary differences, but excluding interest and penalties:

 

(in millions)

    2016      2015      2014  

Balance at beginning of period

    $ 36      $ 38      $ 36  

Additions for current year tax positions

      1        1        3  

Additions for prior year tax positions

      1        —          —    

Reductions for prior years tax positions

      (2 )       (3 )       (1 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of period

    $ 36      $ 36      $ 38  
  

 

 

     

 

 

     

 

 

  

The Company believes it is reasonably possible that the liability for unrecognized tax benefits could decrease $15 million within the next 12 months as a result of IRS exam settlement.

The Company files consolidated income tax returns in the U.S. federal jurisdiction and various state jurisdictions. NMIC and its eligible subsidiaries are no longer subject to U.S. federal, state or local income tax examinations by tax authorities through the 2010 tax year. NLIC and its eligible subsidiaries are no longer subject to examinations by tax authorities through the 2010 tax year. In 2015, the IRS commenced an examination of the Company’s U.S. income tax returns for the years 2011 and 2012. Any adjustments that may result from either IRS examination of tax returns or appeals settlement are not expected to have a material effect on the results of operations, cash flows or financial position of the Company.

 

38

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(14) Statutory Financial Information

Statutory Results

The Company’s life insurance subsidiaries prepare their statutory financial statements in conformity with the statutory accounting practices prescribed and permitted by insurance regulatory authorities, subject to any deviations prescribed or permitted by the applicable state departments of insurance.

Olentangy Reinsurance, LLC (“Olentangy”), a special purpose financial captive insurance company subsidiary of NLAIC domiciled in the State of Vermont, was granted a permitted practice from the State of Vermont that increased NLAIC’s valuation of this subsidiary by $56 million as of December 31, 2016 and 2015, which also allowed NLIC to admit additional deferred tax assets of $8 million as of December 31, 2016 and 2015.

Eagle applies a prescribed practice from the State of Ohio that allows an alternative reserve basis on assumed liabilities, net of third party reinsurance, with respect to specified GMDB and GLWB obligations provided under substantially all of the variable annuity contracts issued and to be issued by NLIC. This prescribed practice decreased NLIC’s valuation of this subsidiary by $97 million and $64 million as of December 31, 2016 and 2015, respectively, which also reduced NLIC’s admitted deferred tax assets by $15 million and $10 million as of December 31, 2016 and 2015, respectively.

Statutory accounting practices focus on insurer solvency and differ materially from GAAP primarily due to charging policy acquisition and other costs to expense as incurred, establishing future policy benefits and claims reserves based on different actuarial assumptions, excluding certain assets from statutory admitted assets and valuing investments and establishing deferred taxes on a different basis.

The following table summarizes the statutory net income (loss) and statutory capital and surplus for the Company’s primary life insurance subsidiaries for the years ended:

 

     December 31,  

(in millions)

    2016      2015      2014  

Statutory net income (loss)

         

NLIC

    $ 751      $ 167      $ 341  

NLAIC

    $ (227 )     $ (99 )     $ (122 ) 

Statutory capital and surplus

         

NLIC

    $ 5,208      $ 4,567      $ 4,408  

NLAIC

    $ 968      $ 735      $ 691  
  

 

 

     

 

 

     

 

 

  

Dividend Restrictions

The payment of dividends by NLIC is subject to restrictions set forth in the insurance laws and regulations of the State of Ohio, its domiciliary state. The State of Ohio insurance laws require Ohio-domiciled life insurance companies to notify the Ohio Superintendent of Insurance of all dividends prior to payment and must seek prior regulatory approval to pay a dividend or distribute cash or other property if the fair market value thereof, together with that of other dividends or distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory-basis policyholders’ surplus as of the prior December 31 or (2) the statutory-basis net income of the insurer as of the prior December 31. During the years ended December 31, 2016, 2015 and 2014 NLIC did not pay any dividends to NFS. As of January 1, 2017, NLIC has the ability to pay dividends to NFS totaling $751 million without obtaining prior approval.

The State of Ohio insurance laws also require insurers to seek prior regulatory approval for any dividend paid from other than earned surplus. Earned surplus is defined under the State of Ohio insurance laws as the amount equal to the Company’s unassigned funds as set forth in its most recent statutory financial statements, including net unrealized capital gains and losses or revaluation of assets. Additionally, following any dividend, an insurer’s policyholder surplus must be reasonable in relation to the insurer’s outstanding liabilities and adequate for its financial needs. The payment of dividends by the Company may also be subject to restrictions set forth in the insurance laws of the State of New York that limit the amount of statutory profits on the Company’s participating policies (measured before dividends to policyholders) available for the benefit of the Company and its stockholders.

The Company currently does not expect such regulatory requirements to impair the ability to pay operating expenses and dividends in the future.

 

39

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Regulatory Risk-Based Capital

The National Association of Insurance Commissioners’ (“NAIC”) Risk-Based Capital (“RBC”) model law requires every insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a company’s total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, liability risk, interest rate exposure and other factors. The State of Ohio imposes minimum RBC requirements that are developed by the NAIC. The formulas in the model for determining the amount of RBC 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 total adjusted capital to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, all of which require specified corrective action. NLIC, NLAIC, Olentangy and Eagle each exceeded the minimum RBC requirements for all periods presented.

 

(15) Related Party Transactions

The Company has entered into significant, recurring transactions and agreements with NMIC, other affiliates and subsidiaries as a part of its ongoing operations. These include annuity and life insurance contracts, agreements related to reinsurance, cost sharing, tax sharing, administrative services, marketing, intercompany loans, intercompany repurchases, cash management services, investment management and software licensing. In addition, employees of the Company participate in several benefit plans sponsored by NMIC, for which the Company has no legal obligations. Measures used to allocate expenses among companies include individual employee estimates of time spent, special cost studies, claims counts, policies in force, direct written premium, paid losses, pro rate share of employees or their salaries, the number of full-time employees, commission expense and other methods agreed to by the participating companies.

Effective January 1, 2015, the Company became party to a revised tax sharing agreement that reflects the new NMIC consolidated federal return group which includes its eligible life and non-life insurance company subsidiaries. The method of allocation among the companies is based upon separate return calculations with current benefit for tax losses and credits utilized in the consolidated return.

In addition, Nationwide Services Company, LLC (“NSC”), a subsidiary of NMIC, provides data processing, systems development, hardware and software support, telephone, mail and other services to the Company, based on specified rates for units of service consumed pursuant to the enterprise cost sharing agreement. For the years ended December 31, 2016, 2015 and 2014, the Company was allocated costs from NMIC and NSC totaling $277 million, $289 million and $275 million, respectively.

Under the enterprise cost sharing agreement, the Company has a cost sharing arrangement with NMIC to occupy office space. The Company made payments under the cost sharing agreement to NMIC of $19 million, $18 million and $16 million for the years ended December 31, 2016, 2015 and 2014, respectively.

The Company has issued group annuity and life insurance contracts and performs administrative services for various employee benefit plans sponsored by NMIC or its affiliates. Total account values of these contracts were $3.4 billion and $3.3 billion as of December 31, 2016 and 2015, respectively. Total revenues from these contracts were $127 million, $129 million and $131 million for the years ended December 31, 2016, 2015 and 2014, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees. Total interest credited to the account balances were $111 million, $106 million and $109 million for the years ended December 31, 2016, 2015 and 2014, respectively.

The Company may underwrite insurance policies for its agents, employees, officers and/or directors. The Company may offer discounts on certain products that are subject to applicable state insurance laws and approvals.

NLIC has a reinsurance agreement with NMIC whereby all of NLIC’s accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC on a modified coinsurance basis. Either party may terminate the agreement on January 1 of any year with prior notice. Under a modified coinsurance agreement, the ceding company retains invested assets, and investment earnings are paid to the reinsurer. Under the terms of NLIC’s agreements, the investment risk associated with changes in interest rates is borne by the reinsurer. The ceding of risk does not discharge the original insurer from its primary obligation to the policyholder. Revenues ceded to NMIC were $209 million for the years ended December 31, 2016 and 2015 and $208 million for the years ended 2014, while benefits, claims and expenses ceded during these years were $185 million, $207 million and $217 million, respectively.

 

40

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Funds of Nationwide Funds Group (“NFG”), a group of Nationwide businesses that develops, sells and services mutual funds, are offered to the Company’s customers as investment options in certain of the Company’s products. As of December 31, 2016 and 2015, customer allocations to NFG funds totaled $61.4 billion and $59.1 billion, respectively. For the years ended December 31, 2016, 2015 and 2014, NFG paid the Company $199 million, $196 million and $185 million, respectively, for the distribution and servicing of these funds.

Amounts on deposit with NCMC for the benefit of the Company were $899 million and $501 million as of December 31, 2016 and 2015, respectively.

Nationwide Bank has a line of credit agreement with NLIC that allows the Bank access to borrow up to $50 million from NLIC. The borrowing rate on the line of credit is equal to the daily Prime Rate. The Bank had no amounts outstanding under this agreement as of December 31, 2016, 2015 and 2014.

Certain annuity products are sold through affiliated companies, which are also subsidiaries of NFS. Total commissions and fees paid to these affiliates were $65 million, $63 million and $57 million for the years ended December 31, 2016, 2015 and 2014, respectively.

The Company provides financing to Nationwide Realty Investors, LTD, a subsidiary of NMIC. As of December 31, 2016, 2015 and 2014, the Company had notes receivable outstanding of $332 million, $238 million and $142 million, respectively.

The Company provides financing to Nationwide Advantage Mortgage Company (“NAMC”), a subsidiary of NMIC. As of December 31, 2016, 2015 and 2014, the Company had notes receivable outstanding of $11 million, $14 million and $18 million, respectively.

 

(16) Contingencies

Legal and Regulatory Matters

The Company is subject to legal and regulatory proceedings in the ordinary course of its business. These include proceedings specific to the Company and proceedings generally applicable to business practices in the industries in which the Company operates. The outcomes of these proceedings cannot be predicted due to their complexity, scope, and many uncertainties. Regulatory proceedings may also affect the outcome of one or more of the Company’s litigation matters. Furthermore, it is often not possible with any degree of certainty to determine the likely ultimate outcomes of the pending regulatory and legal proceedings or to provide reasonable ranges of potential losses. Some matters are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the claims for liability or damages. In some of the legal proceedings which are seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the legal proceedings, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory proceedings is not likely to have a material adverse effect on the Company’s consolidated financial position. Nonetheless, it is possible that such outcomes could materially affect the Company’s consolidated financial position or results of operations in a particular quarter or annual period given the large or indeterminate amounts sought in certain of these legal proceedings and the inherent unpredictability of litigation. The Company maintains Professional Liability Insurance and Director and Officer Liability insurance policies that may cover losses for certain legal and regulatory matters. The Company recognizes an asset for insurance recoveries, not to exceed cumulative accrued losses, when recovery under such policies is probable and reasonably estimable.

The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor (“DOL”), the IRS and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. With respect to all such scrutiny directed at the Company or its affiliates, the Company is cooperating with regulators. The Company will cooperate with its ultimate parent company, NMIC insofar as any inquiry, examination or investigation encompasses NMIC’s operations. In addition, recent regulatory activity, including activity by the DOL, may impact the Company’s business and operations, and certain estimates and assumptions used by the Company in determining the amounts presented in the financial statements and accompanying notes. Actual results could differ significantly from those estimates and assumptions.

 

41

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Indemnifications

In the normal course of business, the Company provides standard indemnifications to contractual counterparties. The types of indemnifications typically provided include breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated, and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.

 

(17) Reinsurance

The following table summarizes the effects of reinsurance on life, accident and health insurance in force and premiums for the years ended:

 

     December 31,  

(in millions)

    2016      2015      2014  

Premiums

         

Direct

    $ 1,011      $ 1,144      $ 1,178  

Assumed from other companies

      —          —          —    

Ceded to other companies

      (369 )       (358 )       (347 ) 
  

 

 

     

 

 

     

 

 

  

Net

    $ 642      $ 786      $ 831  
  

 

 

     

 

 

     

 

 

  

Life, accident and health insurance in force

         

Direct

    $ 275,404      $ 260,465      $ 241,936  

Assumed from other companies

      2        5        5  

Ceded to other companies

      (61,674 )       (60,976 )       (59,588 ) 
  

 

 

     

 

 

     

 

 

  

Net

    $ 213,732      $ 199,494      $ 182,353  
  

 

 

     

 

 

     

 

 

  

Amounts recoverable under reinsurance contracts totaled $683 million, $647 million and $704 million as of December 31, 2016, 2015 and 2014, respectively, and are included in other assets in the consolidated balance sheets.

(18) Segment Information

Management views the Company’s business primarily based on its underlying products and uses this basis to define its four reportable segments: Individual Products and Solutions-Annuity, Retirement Plans, Individual Products and Solutions-Life and NBSG and Corporate and Other.

The primary segment profitability measure that management uses is pre-tax operating earnings (loss), which is calculated by adjusting income before federal income taxes to exclude: (1) certain changes in variable annuity liabilities and net realized investment gains and losses, except for operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges); (2) the adjustment to amortization of DAC related to certain changes in variable annuity liabilities and net realized investment gains and losses; and (3) net losses attributable to noncontrolling interest.

Individual Products and Solutions-Annuity

The Individual Products & Solutions - Annuity segment consists of individual annuity products. Deferred annuity contracts provide the customer with tax-deferred accumulation of savings and flexible payout options including lump sum, systematic withdrawal or a stream of payments for life. In addition, deferred variable annuity contracts provide the customer with access to a wide range of investment options and asset protection features. Deferred fixed annuity contracts offered by the Company generate a return for the customer at a specified interest rate fixed for prescribed periods while deferred fixed indexed annuity contracts generate a return for the customer based o market performance with caps and floors. Immediate annuities differ from deferred annuities in that the initial premium is exchanged for a stream of income for a certain period and/or for the owner’s lifetime without future access to the original investment. The majority of assets and recent sales for the Individual Products & Solutions - Annuity segment consist of deferred variable and fixed annuities.

 

42

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

Retirement Plans

The Retirement Plans segment is comprised of the private and public sector retirement plans businesses. The private sector business primarily includes Internal Revenue Code (“IRC”) Section 401 qualified plans funded through fixed and variable group annuity contracts issued through NLIC. The public sector business primarily includes IRC Section 457 (b) and Section 401(a) governmental plans, both in the form of full-service arrangements that provide plan administration along with fixed and variable group annuities, as well as administration-only business. Across the public and private sector business Nationwide Investment Advisors managed account services are also available. The Retirement Plans segment also includes stable value wrap products and solutions.

Individual Products and Solutions-Life and NBSG

The Individual Products & Solutions - Life and NBSG segment consists of life insurance products, including individual variable universal life, COLI and BOLI products, traditional life insurance products, fixed universal life insurance products and indexed universal life insurance products. Life insurance products provide a death benefit and, for certain products, allow the customer to build cash value on a tax-advantaged basis.

Corporate and Other

The Corporate and Other segment includes certain non-operating changes in variable annuity liabilities and non-operating realized gains and losses, related amortization and other revenues and expenses not allocated to other segments. Additionally, this segment includes the funding agreements with the FHLB.

 

43

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

The following tables summarize the Company’s business segment operating results for the years ended:

 

(in millions)

    Individual
Products
and
Solutions-
Annuity		      Retirement
Plans		      Individual
Products
and
Solutions-
Life and
NBSG		      Corporate
and Other		     Total  

December 31, 2016

              

Revenues:

              

Policy charges

    $ 1,313        107        941        —       $ 2,361  

Premiums

      309        —          296        37       642  

Net investment income

      713        791        624        11       2,139  

Non-operating changes in variable annuity liabilities and net realized investment losses1

      —          —          —          (299 )      (299 ) 

Other revenues2

      —          —          —          14       14  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total revenues

    $ 2,335      $ 898      $ 1,861      $ (237 )    $ 4,857  

Benefits and expenses:

              

Interest credited to policyholder accounts3

    $ 424        531        260        30     $ 1,245  

Benefits and claims4

      487        —          758        32       1,277  

Amortization of DAC

      235        4        197        (3 )      433  

Other expenses, net of deferrals

      333        181        321        163       998  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total benefits and expenses

    $ 1,479      $ 716      $ 1,536      $ 222     $ 3,953  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income before federal income taxes and noncontrolling interests

    $ 856        182        325        (459 )    $ 904  
             

 

 

  

Less: certain non-operating changes in variable annuity liabilities and net realized investment gains (losses)1

      —          —          —          (299 )   

Less: adjustment to amortization of DAC and other related expenses related to non-operating items above

      —          —          —          6    

Less: net loss attributable to noncontrolling interest

      —          —          —          (91 )   
  

 

 

     

 

 

     

 

 

     

 

 

    

Pre-tax operating earnings (loss)

    $ 856      $ 182      $ 325      $ (75 )   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Assets as of year end

    $ 79,199      $ 32,239      $ 33,863      $ 10,337     $ 155,638  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges).
2 Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes).
3 Includes operating items (net realized gains and losses related to certain product hedges).
4 Excludes certain non-operating changes in variable annuity liabilities.

 

44

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(in millions)

    Individual
Products
and
Solutions-
Annuity		     Retirement
Plans		      Individual
Products
and
Solutions-
Life and
NBSG		     Corporate
and Other		     Total  

December 31, 2015

            

Revenues:

            

Policy charges

    $ 1,259     $ 111      $ 846     $ —       $ 2,216  

Premiums

      459       —          292       35       786  

Net investment income

      591       752        602       37       1,982  

Non-operating changes in variable annuity liabilities and net realized investment losses1

      —         —          —         (56 )      (56 ) 

Other revenues2

      (76 )      —          (7 )      7       (76 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

    $ 2,233     $ 863      $ 1,733     $ 23     $ 4,852  

Benefits and expenses:

            

Interest credited to policyholder accounts

    $ 328     $ 494      $ 236     $ 20     $ 1,078  

Benefits and claims3

      700       —          705       29       1,434  

Amortization of DAC

      13       7        115       (67 )      68  

Other expenses, net of deferrals

      334       163        371       176       1,044  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total benefits and expenses

    $ 1,375     $ 664      $ 1,427     $ 158     $ 3,624  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Income before federal income taxes and noncontrolling interests

    $ 858     $ 199      $ 306     $ (135 )    $ 1,228  

Less: certain non-operating changes in variable annuity liabilities and net realized investment gains1

      —         —          —         (56 )   

Less: adjustment to amortization of DAC and other related expenses related to non-operating items above

      —         —          —         74    

Less: net loss attributable to noncontrolling interest

      —         —          —         (96 )   
  

 

 

    

 

 

     

 

 

    

 

 

    

Pre-tax operating earnings (loss)

    $ 858     $ 199      $ 306     $ (57 )   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Assets as of year end

    $ 73,370     $ 30,524      $ 30,650     $ 9,634     $ 144,178  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges).
2 Includes operating items discussed above.
3 Excludes certain non-operating changes in variable annuity liabilities.

 

45

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to December 31, 2016, 2015 and 2014 Consolidated Financial Statements

 

 

 

(in millions)

    Individual
Products
and
Solutions-
Annuity		     Retirement
Plans		     Individual
Products
and
Solutions-
Life and
NBSG		      Corporate
and Other		     Total  

December 31, 2014

            

Revenues:

            

Policy charges

    $ 1,175     $ 107     $ 783      $ —       $ 2,065  

Premiums

      518       —         284        29       831  

Net investment income

      546       750       565        39       1,900  

Non-operating net realized investment gains, including of other-than-temporary impairment losses1

      —         —         —          (1,051 )      (1,051 ) 

Other revenues2

      (38 )      —         12        10       (16 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

    $ 2,201     $ 857     $ 1,644      $ (973 )    $ 3,729  

Benefits and expenses:

            

Interest credited to policyholder accounts

    $ 370     $ 482     $ 231      $ 13     $ 1,096  

Benefits and claims

      828       —         644        30       1,502  

Amortization of DAC

      120       (28 )      122        (7 )      207  

Other expenses, net of deferrals

      300       153       348        254       1,055  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total benefits and expenses

    $ 1,618     $ 607     $ 1,345      $ 290     $ 3,860  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income before federal income taxes and noncontrolling interests

    $ 583     $ 250     $ 299      $ (1,263 )    $ (131 ) 

Less: non-operating net realized investment gains, including other-than-temporary impairment losses1

      —         —         —          (1,051 )   

Less: adjustment to amortization of DAC and other related expenses related to net realized investment gains and losses

      —         —         —          11    

Less: net loss attributable to noncontrolling interest

      —         —         —          (94 )   
  

 

 

    

 

 

    

 

 

     

 

 

    

Pre-tax operating earnings (loss)

    $ 583     $ 250     $ 299      $ (129 )   
  

 

 

    

 

 

    

 

 

     

 

 

    

Assets as of year end

    $ 72,429     $ 30,744     $ 29,322      $ 11,029     $ 143,524  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges).
2 Includes operating items discussed above.

 

46

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 

 

Schedule I        Consolidated Summary of Investments – Other Than Investments in Related Parties

As of December 31, 2016 (in millions)

 

Column A

    Column B      Column C      Column D  

Type of investment

    Cost      Fair
value		      Amount at
which shown
in the
consolidated
balance sheet		  

Fixed maturity securities, available-for-sale:

         

Bonds:

         

U.S. government and agencies

    $ 596      $ 645      $ 645  

Obligations of states, political subdivisions and foreign governments

      2,454        2,696        2,696  

Public utilities

      4,396        4,508        4,508  

All other corporate, mortgage-backed and asset-backed securities

      35,078        35,841        35,841  
  

 

 

     

 

 

     

 

 

  

Total fixed maturity securities, available-for-sale

    $ 42,524      $ 43,690      $ 43,690  

Equity securities, available-for-sale:

         

Common stocks:

         

Industrial, miscellaneous and all other

    $ 2      $ 2      $ 2  

Nonredeemable preferred stocks

      —          8        8  
  

 

 

     

 

 

     

 

 

  

Total equity securities, available-for-sale

    $ 2      $ 10      $ 10  

Trading assets

      54        54        54  

Mortgage loans, net of allowance

      9,793           9,760 1 

Policy loans

      989           989  

Other investments

      1,047           1,047  

Short-term investments

      1,944           1,944  
  

 

 

        

 

 

  

Total investments

    $ 56,353         $ 57,494  
  

 

 

        

 

 

  

 

1 Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans (see Note 6 to the audited consolidated financial statements).

 

47

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 

 

 

Schedule III         Supplementary Insurance Information

As of December 31, 2016, 2015 and 2014 and for each of the years then ended (in millions)

 

Column A

    Column B     Column C      Column D     Column E      Column F  

Year: Segment

    Deferred policy
acquisition
costs		     Future policy benefits,
losses, claims and
loss expenses		      Unearned
premiums1		     Other policy
claims and
benefits payable1		      Premium
revenue		  

2016

             

IPS - Annuity

    $ 3,309     $ 18,007           $ 309  

Retirement Plans

      229       17,443             —    

IPS - Life and NBSG

      2,081       14,614             296  

Corporate and Other

      (187 )      2,847             37  
  

 

 

    

 

 

          

 

 

  

Total

    $ 5,432     $ 52,911           $ 642  
  

 

 

    

 

 

          

 

 

  

2015

             

IPS - Annuity

    $ 3,070     $ 15,160           $ 459  

Retirement Plans

      222       15,940             —    

IPS - Life and NBSG

      1,937       11,582             292  

Corporate and Other

      (29 )      2,715             35  
  

 

 

    

 

 

          

 

 

  

Total

    $ 5,200     $ 45,397           $ 786  
  

 

 

    

 

 

          

 

 

  

2014

             

IPS - Annuity

    $ 2,495     $ 12,619           $ 518  

Retirement Plans

      216       14,905             —    

IPS - Life and NBSG

      1,717       10,763             284  

Corporate and Other

      (365 )      2,443             29  
  

 

 

    

 

 

          

 

 

  

Total

    $ 4,063     $ 40,730           $ 831  
  

 

 

    

 

 

          

 

 

  

Column A

    Column G     Column H      Column I     Column J      Column K  

Year: Segment

    Net
investment
income2		     Benefits, claims,
losses and
settlement expenses		      Amortization
of deferred policy
acquisition costs		     Other
operating
expenses2		      Premiums
written		  

2016

             

IPS - Annuity

    $ 713     $ 1,074      $ 235       333     

Retirement Plans

      791       531        4       181     

IPS - Life and NBSG

      624       1,037        197       321     

Corporate and Other

      11       62        (3 )      163     
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 2,139     $ 2,704      $ 433     $ 998     
  

 

 

    

 

 

     

 

 

    

 

 

     

2015

             

IPS - Annuity

    $ 591     $ 1,257      $ 13     $ 334     

Retirement Plans

      752       494        7       163     

IPS - Life and NBSG

      602       941        115       371     

Corporate and Other

      37       48        (67 )      176     
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 1,982     $ 2,740      $ 68     $ 1,044     
  

 

 

    

 

 

     

 

 

    

 

 

     

2014

             

IPS - Annuity

    $ 546     $ 1,198      $ 120     $ 300     

Retirement Plans

      750       482        (28 )      153     

IPS - Life and NBSG

      565       875        122       348     

Corporate and Other

      39       43        (7 )      254     
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 1,900     $ 2,598      $ 207     $ 1,055     
  

 

 

    

 

 

     

 

 

    

 

 

     

 

1 Unearned premiums and other policy claims and benefits payable are included in Column C amounts.
2 Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates, and reported segment operating results would change if different methods were applied.

 

48

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 

 

 

Schedule IV         Reinsurance

As of December 31, 2016, 2015 and 2014 and for each of the years then ended (in millions)

 

Column A

    Column B      Column C     Column D      Column E  
     Gross
amount		      Ceded to
other
companies		     Assumed
from other
companies		      Net
amount		  

2016

           

Life, accident and health insurance in force

    $ 275,404      $ (61,674 )    $ 2      $ 213,732  

Premiums:

           

Life insurance1

    $ 698      $ (56 )    $ —        $ 642  

Accident and health insurance

      313        (313 )      —          —    
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 1,011      $ (369 )    $ —        $ 642  
  

 

 

     

 

 

    

 

 

     

 

 

  

2015

           

Life, accident and health insurance in force

    $ 260,465      $ (60,976 )    $ 5      $ 199,494  

Premiums:

           

Life insurance1

    $ 842      $ (56 )    $ —        $ 786  

Accident and health insurance

      302        (302 )      —          —    
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 1,144      $ (358 )    $ —        $ 786  
  

 

 

     

 

 

    

 

 

     

 

 

  

2014

           

Life, accident and health insurance in force

    $ 241,936      $ (59,588 )    $ 5      $ 182,353  

Premiums:

           

Life insurance1

    $ 888      $ (57 )    $ —        $ 831  

Accident and health insurance

      290        (290 )      —          —    
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 1,178      $ (347 )    $ —        $ 831  
  

 

 

     

 

 

    

 

 

     

 

 

  

 

1 Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products.

 

49

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 

 

 

Schedule V         Valuation and Qualifying Accounts

Years ended December 31, 2016, 2015 and 2014 (in millions)

 

Column A

    Column B      Column C      Column D     Column E  

Description

    Balance at
beginning
of period		      Charged to
costs and
expenses		     Charged to
other
accounts		      Deductions1     Balance at
end of
period		  

2016

             

Valuation allowances - mortgage loans

    $ 26      $ 8     $ —        $ (2 )    $ 32  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

2015

             

Valuation allowances - mortgage loans

    $ 26      $ 2     $ —        $ (2 )    $ 26  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

2014

             

Valuation allowances - mortgage loans

    $ 35      $ (8 )    $ —        $ (1 )    $ 26  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

1 Amounts generally represent payoffs, sales and recoveries.

 

50

PART C. OTHER INFORMATION
Item 26. Exhibits
(a) Resolution of the Depositor’s Board of Directors authorizing the establishment of the Registrant – Filed previously with initial registration statement (333-31725) on July 27, 1997, and hereby incorporated by reference.
(b) Not Applicable
(c) Underwriting or Distribution of contracts between the Depositor and Principal Underwriter – Filed previously with the registration statement (333-117998) on August 6, 2004, and hereby incorporated by reference.
(d) Contracts - Form of Contract – Filed previously with pre-effective amendment No. 1 of registration statement (333-169879) on January 26, 2011 as document "contract.htm" and hereby incorporated by reference.
(e) Applications - Form of the Contract Application – Filed previously with pre-effective amendment No. 1 of registration statement (333-169879) on January 26, 2011 as document "application.htm" and hereby incorporated by reference.
(f) Depositor’s Certificate of Incorporation and By-Laws.
(1) Amended Articles of Incorporation for Nationwide Life Insurance Company. Filed previously with initial registration statement (333-164119) on January 4, 2010 as document "exhibitf1.htm" and hereby incorporated by reference.
(2) Amended and Restated Code of Regulations of Nationwide Life Insurance Company. Filed previously with initial registration statement (333-164119) on January 4, 2010 as document "exhibitf2.htm" and hereby incorporated by reference.
(3) Articles of Merger of Nationwide Life Insurance Company of America with and into Nationwide Life Insurance Company, effective December 31, 2009. Filed previously with initial registration statement (333-164119) on January 4, 2010 as document "exhibitf3.htm" and hereby incorporated by reference.
(g) Form of Reinsurance Contracts -
(1) Automatic Self Administered YRT Reinsurance Agreement #196730 with Swiss Re Life & Health America, Inc. dated October 1, 2008, with registration statement (333-43671, as Exhibit (g)(2) and hereby incorporated by reference.
(2) Reinsurance Agreement with Hannover Life Reassurance Company of America dated October 1, 2008, previously filed on April 12, 2011 with registration statement (333-149295), as Exhibit (g)(5) and herby incorporated by reference.
(h) Fund Participation Agreements - The following Fund Participation Agreements were previously filed on July 17, 2007 with pre-effective amendment No. 1 of registration statement (333-140608) under Exhibit 26(h), and are hereby incorporated by reference.
(1) Fund Participation Agreement with AIM Variable Insurance Funds, AIM Advisors, Inc., and AIM Distributors dated January 6, 2003, under document "aimfpa99h1.htm"
(2) Amended and Restated Fund Participation and Shareholder Services Agreement with American Century Investment Services, Inc. dated September 15, 2004, as amended, under document "amcentfpa99h2.htm"
(3) Restated and Amended Fund Participation Agreement with The Dreyfus Corporation dated January 27, 2000, as amended, under document "dreyfusfpa99h3.htm"
(4) Fund Participation Agreement with Federated Insurance Series and Federated Securities Corp. dated April 1, 2006, as amended, under document "fedfpa99h4.htm"
(5) Fund Participation Agreement with Fidelity Variable Insurance Products Fund dated May 1, 1988, as amended, including Fidelity Variable Insurance Products Fund IV and Fidelity Variable Insurance Products Fund V, under document "fidifpa99h5.htm"
(6) Amended and Restated Fund Participation Agreement with Franklin Templeton Variable Insurance Products Trust and Franklin/Templeton Distributors, Inc. dated May 1, 2003; as amended, under document "frankfpa99h8.htm"

 

(7) Fund Participation Agreement, Service and Institutional Shares, with Janus Aspen Series, dated December 31, 1999, under document "janusfpa99h9a.htm"
(8) Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust) dated May 2, 2005, as amended, under document "nwfpa99h12a.htm"
(9) Fund Participation Agreement with Neuberger Berman Advisors Management Trust / Lehman Brothers Advisors Management Trust (formerly, Neuberger Berman Advisors Management Trust) dated January 1, 2006, under document "neuberfpa99h13.htm"
(10) Fund Participation Agreement with Oppenheimer Variable Account Funds and Oppenheimer Funds, Inc. dated April 13, 2007, under document "oppenfpa99h14.htm"
(11) Fund Participation Agreement with T. Rowe Price Equity Series, Inc., T. Rowe Price International Series, Inc., T. Rowe Price Fixed Income Series, Inc., and T. Rowe Price Investment Services, Inc. dated October 1, 2002, as amended, under document "trowefpa99h15.htm"
(12) Fund Participation Agreement with The Universal Institutional Funds, Inc., Morgan Stanley Distribution, Inc., and Morgan Stanley Investment Management, Inc. dated February 1, 2002, as amended, under document "univfpa99h16.htm"
The following Fund Participation Agreements were previously filed on September 27, 2007 with pre-effective amendment number 3 of registration statement (333-137202) under Exhibit 26(h), and are hereby incorporated by reference.
(13) Fund Participation Agreement (Amended and Restated) with Alliance Capital Management L.P. and Alliance-Bernstein Investment Research and Management, Inc. dated June 1, 2003, as document "alliancebernsteinfpa.htm".
(14) Fund Participation Agreement with American Funds Insurance Series and Capital Research and Management Company dated July 20, 2005, as document "americanfundsfpa.htm".
(15) Fund Participation Agreement with BlackRock (formerly FAM Distributors, Inc. and FAM Variable Series Funds, Inc.) dated April 13, 2004, as amended, as document "blackrockfpa.htm".
(16) Fund Participation Agreement with Davis Variable Account Fund and Davis Distributors, LLC dated August 7, 2007, as document "davisfpa.htm".
(17) Fund Participation Agreement with DWS Variable Series I and DWS Variable Series II (formerly Scudder Variable Series I, Scudder Variable Series II), Deutsche Investment Management Americas, Inc. and DWS Investments Distributors, Inc. (formerly DWS Scudder Distributors, Inc.) dated July 1, 2004, as document "dwsfpa.htm".
(18) Fund Participation with Legg Mason Partners Variable Portfolio I, Inc. (formerly Salomon Brothers Variable Series Funds Inc. and Salomon Brothers Asset Management Inc. dated September, 1999, as amended, as document "leggmasonfpa.htm".
(19) Fund Participation Agreement with Lincoln Variable Insurance Products Trust, Lincoln Financial Distributors, Inc., and Lincoln Investment Advisors Corporation dated June 5, 2007, as document "lincolnfpa.htm".
(20) Fund Participation Agreement with PIMCO Variable Insurance Trust and PIMCO Fund Distributors, LLC dated March 28, 2002, as amended, as document "pimcofpa.htm".
(21) Fund Participation Agreement with Pioneer Variable Contracts Trust, Pioneer Investment Management, Inc. and Pioneer Fund Distributor, Inc., dated September 27, 2002, as amended, as document "pioneerfpa.htm".
(22) Fund Participation Agreement with Putnam Variable Trust and Putnam Retail Management, L.P., dated February 1, 2002, as document "putnamfpa.htm".
(23) Fund Participation Agreement with Royce & Associates dated February 14, 2002, as amended, as document "roycefpa.htm".
(24) Fund Participation Agreement Van Eck Investment Trust, Van Eck Associates Corporation, Van Eck Securities Corporation dated September 1, 1989, as amended, as document "vaneckfpa.htm".
(25) Fund Participation Agreement with Waddell & Reed Services Company, Waddell & Reed, Inc., and W&R Target Funds, Inc. dated December 1, 2000, as amended, as document "waddellreedfpa.htm".

 

(26) Fund Participation Agreement with Wells Fargo Management, LLC, Stephens, Inc. dated November 15, 2004, as amended, as document "wellsfargofpa.htm".
(27) Fund Participation Agreement with Lord Abbett Series Fund, Inc. and Lord Abbett Distributor LLC dated December 31, 2002, as amended, as document "lordabbettfpa.htm".
The following Fund Participation Agreements were previously filed on April 12, 2010 with post-effective amendment number 43 of registration statement (333-43671) under Exhibit 26(h), and are hereby incorporated by reference.
(28) Fund Participation Agreement with Delaware Management Company and Delaware Distributors, L.P., as amended, February 5, 2008 under document "delawarefpa.htm"
(29) Fund Participation Agreement with Eaton Vance Variable Trust and Eaton Vance Distributors, Inc., dated March 24, 2011 under document "eatonvancefpa.htm"
(30) Fund Participation Agreement with Goldman Sachs Variable Insurance Trust, and Goldman Sachs & Co., dated December 22, 1998 under document "goldmansachs.htm"
(31) Fund Participation Agreement with Lazard Retirement Series, Inc. and Lazard Asset Management Securities LLC, dated April 13, 2009 under document "lazardfpa.htm"
The following Fund Participation Agreement was previously filed on April 30, 2008 with post-effective amendment number 42 of registration statement (333-59517) under Exhibit 26(h), and is hereby incorporated by reference.
(32) Fund Participation Agreement with J.P. Morgan Series Trust II, dated February 18, 2003, under document "jpmorganfpa.htm".
The following Fund Participation Agreement was previously filed on April 16, 2015, with Post-Effective Amendment No. 15 to the registration statement associated with 1933 Act File No. 333-149213 under Exhibit 24(b), and is hereby incorporated by reference.
(33) Participation Agreement Among MFS Variable Insurance Trust, MFS Variable Insurance Trust II, Nationwide Financial Services, Inc., and MFS Fund Distributors, Inc., dated May 2, 2011, under document "mfsfpa.htm".
(i) Administrative Contracts – The following Administrative Services Agreements were previously filed on July 17, 2007 with pre-effective amendment number 1 of registration statement (333-140608) under Exhibit (i), and are hereby incorporated by reference:
(1) Amended and Restated Fund Participation and Shareholder Services Agreement with American Century Investment Services, Inc. dated September 15, 2004, as amended, as document "amcentasa99i2.htm".
(2) Restated Administrative Services Agreement with The Dreyfus Corporation dated June 1, 2003, as amended, and 12b-1 letter agreement dated June 1, 2003, as amended, as document "dreyfusasa99i3.htm".
(3) Dealer Services Agreement with Federated Securities Corp., as amended October 26, 2006, as document "fedasa99i4a.htm".
(4)
(a) Administrative Service Agreement with Fidelity Investments Institutional Operations Company, Inc. dated April 1, 2002, as amended, as document "fidiiiasa99i5a.htm".
(b) Service Contract, with Fidelity Distributors Corporation dated April 1, 2002, as amended, as document "fidiiiasa99i5b.htm".
(5) Administrative Services Agreement with Franklin Templeton Services, LLC dated May 1, 2003, as amended, as document "frankasa99i6.htm".
(6) Distribution and Shareholder Services Agreement with Janus Distributors, Inc. dated December 31, 1999, as document "janusasa99i7.htm".
(7) Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust) dated May 2, 2005, as amended, as document "nwasa99i10.htm".

 

(8) Fund Participation Agreement with Neuberger Berman Advisers Management Trust / Lehman Brothers Advisers Management Trust (formerly, Neuberger Berman Advisers Management Trust) dated January 1, 2006, as document "neuberasa99i13.htm".
(9) Revenue Sharing Agreement with Oppenheimer Variable Account Funds dated April 17, 2007, as document "oppenasa99i12.htm".
(10) Administrative Services Letter Agreement with T. Rowe Price Associates, Inc. and T. Rowe Price International, Inc. dated October 1, 2002, as amended, as document "troweasa99i13.htm".
(11) Administrative Services Agreement with Morgan Stanley Distribution, Inc. (The Universal Institutional Funds, Inc.) dated May 5, 2005, as amended, as document "univasa99i14.htm".
The following Administrative Agreements were previously filed on July 17, 2007 with pre-effective amendment number 3 of registration statement (333-140608) under Exhibit (i), and are hereby incorporated by reference.
(12)
(a) Administrative Services Agreement with AIM Advisors, Inc. dated July 1, 2005, as amended, under document "aimasa99i1a.htm"
(b) Financial Support Agreement with AIM Variable Insurance Funds dated July 1, 2005, under document "aimasa99i1b.htm"
The following Administrative Agreements were previously filed on September 27, 2007 with pre-effective amendment number 3 of registration statement (333-137202) under Exhibit (i), and are hereby incorporated by reference.
(13) Administrative Services Agreement with Alliance Fund Distributors, Inc. dated June 3, 2003, under document "alliancebersteinasa.htm".
(14) Business Agreement with American Funds Distributors, Inc. and Capital Research and Management Company dated July 20, 2005, as document "americanfundasa.htm".
(15) Administrative Services Agreement with BlackRock (formerly FAM Distributors, Inc., and Merrill Lynch Variable Series Funds, Inc.) as amended April 13, 2004, under document "blackrockasa.htm".
(16) Administrative Services Agreement with Davis Distributors, LLC, dated August 7, 2007, under document "davisasa.htm".
(17) Administrative Services Agreement with Legg Mason Partners Variable Portfolios I, Inc. (formerly Salomon Brothers Asset Management Inc.) dated September 1999, as amended, as document "leggmasonasa.htm".
(18)
(a) Administrative Services Agreement with Lincoln Investment Advisors Corporation dated June 5, 2007, as document "lincolnasa.htm".
(b) Administrative Services Agreement between Nationwide Investment Services Corporation (general distributor) and Lincoln Financial Distributors, Inc. dated June 5, 2007, as document "lincolnasb.htm".
(19) Administrative Services Agreement with PIMCO Variable Insurance Trust, as amended, dated March 28, 2002, under document "pimcoasab.htm".
(20) Fund Participation Agreement with Pioneer Variable Contracts Trust, Pioneer Investment Management, Inc., and Pioneer Fund Distributor, Inc., as amended September 27, 2002, under document "pioneerfpa.htm".
(21) Administrative Services Agreement with Putnam Retail Management Limited Partnership, as amended August 1, 2006, under document "putnamasa.htm".
(22) Fund Participation Agreement with Royce & Associates, as amended February 14, 2002, under document "roycefpa.htm".
(23) Administrative Services Agreement with Van Eck Securities Corporation, as amended November 3, 1997, under document "vaneckasa.htm".
(24) Administrative Services Agreement with Waddell & Reed, Inc. dated, December 1, 2000, as amended under document "wadellreedasa.htm".

 

(25) Administrative Services Agreement with Wells Fargo Funds Management, LLC and Stephens, Inc., as amended November 15, 2004, under document "wellsfargoasa.htm".
(26) Fund Participation Agreement with DWS Variable Series II (formerly Scudder Variable Series I, Scudder Variable Series II, Scudder Distributors, Inc. and Deutsche Investment Management Americas, Inc.) dated July 1, 2004, as document "dwsfpa.htm".
(27) Administrative Services Agreement with Lord Abbett Series Fund, Inc., as amended December 31, 2002 as document "lordabbettasa.htm".
The following Administrative Agreements were previously filed on April 12, 2010 with post-effective amendment number 43 of registration statement (333-43671) under Exhibit (i), and are hereby incorporated by reference.
(28) Administrative Services Agreement with Delaware Distributors, L.P., as amended February 5, 2008, under document "delawareasa.htm".
(29) Administrative Services Agreement with Eaton Vance Variable Trust, dated March 24, 2011 under document "eatonvanceasa.htm".
(30) Administrative Services Agreement with Goldman, Sachs & Co. dated January 6, 1999, under document "goldmansachsasa.htm".
(31) Administrative Services Agreement with Lazard Retirement Series, Inc. dated April 13, 2009, under document "lazardasa.htm".
The following Fund Participation Agreement was previously filed on April 30, 2008 with post-effective amendment number 42 of registration statement (333-59517) under Exhibit 26(h), and is hereby incorporated by reference.
(32) Fund Participation Agreement with J.P. Morgan Series Trust II, dated February 18, 2003, under document "jpmorganfpa.htm".
The following Administrative Service Agreement was previously filed on April 16, 2015 with post-effective amendment number 15 of registration statement (333-149213) under Exhibit (26)(i), and is hereby incorporated by reference.
(33) Letter Agreement between MFS Fund Distributors, Inc. ("MFD") and Nationwide Financial Services, Inc., dated January 30, 2012, as document "mfsasa.htm".
(j) Not Applicable
(k) Opinion of Counsel – Filed previously with initial registration statement (333-169879) on October 12, 2010, as document "opinionofcounsel.htm" and hereby incorporated by reference.
(l) Not Applicable
(m) Not Applicable
(n) Consent of Independent Registered Public Accounting Firm – Attached hereto.
(o) Not Applicable
(p) Not Applicable
(q) Redeemability Exemption – Filed previously with initial registration statement (333-169879) on October 12, 2010, as document "exhibitq.htm." and hereby incorporated by reference.
(99) Power of Attorney – Attached hereto.

 

Item 27. Directors and Officers of the Depositor
The business address of the Directors and Officers of the Depositor is:
One Nationwide Plaza, Columbus, Ohio 43215
President and Chief Operating Officer and Director Kirt A. Walker
Executive Vice President-Chief Information Officer Michael C. Keller
Executive Vice President-Chief Human Resources Officer Gale V. King
Executive Vice President Mark A. Pizzi
Executive Vice President and Director Mark R. Thresher
Senior Vice President Harry H. Hallowell
Senior Vice President Sandra L. Rich
Senior Vice President and Treasurer David LaPaul
Senior Vice President-Chief Financial Officer and Director Timothy G. Frommeyer
Senior Vice President-Chief Information Officer, NF Systems Michael A. Richardson
Senior Vice President-Head of Taxation Pamela A. Biesecker
Senior Vice President-Individual Products & Solutions and Director Eric S. Henderson
Senior Vice President-Integrated Relationship Strategies Rondal L. Ransom
Senior Vice President-Investment Management Group Michael S. Spangler
Senior Vice President-Marketing Services Tiffanie Hiibner
Senior Vice President-Nationwide Financial Steven C. Power
Senior Vice President-Nationwide Financial Network Peter A. Golato
Senior Vice President-NF Distribution and Sales Tina S. Ambrozy
Senior Vice President-NF Legal Rae Ann Dankovic
Senior Vice President-NF Marketing Jennifer B. MacKenzie
Senior Vice President-NI Enterprise Brand Marketing Michael A. Boyd
Senior Vice President-Digital Marketing Ann S. Bair
Senior Vice President-NW Retirement Plans and Director John L. Carter
Senior Vice President-President, Nationwide Growth Solutions Terri L. Hill
Director Stephen S. Rasmussen
Item 28. Persons Controlled by or Under Common Control with the Depositor or Registrant.
Following is a list of entities directly or indirectly controlled by or under common control with the depositor or registrant. Ownership is indicated through indentation. Unless otherwise indicated, each subsidiary is either wholly-owned or majority-owned by the parent company immediately preceding it. (For example, Nationwide Fund Distributors, LLC is either wholly-owned or majority owned by NFS Distributors, Inc.) Separate accounts that have been established pursuant to board resolution but are not, and have never been, active are omitted.
Company Jurisdiction
of Domicile 		Brief Description of Business
Nationwide Financial Services, Inc. Delaware The company acts primarily as a holding company for companies within the Nationwide organization that offer or distribute life insurance, long-term savings and retirement products.
NFS Distributors, Inc. Delaware The company acts primarily as a holding company for Nationwide Financial Services, Inc. companies.
Nationwide Financial General Agency, Inc. Pennsylvania The company is a multi-state licensed insurance agency.
Nationwide Fund Distributors, LLC Delaware The company is a limited purpose broker-dealer.
Nationwide Fund Management, LLC Delaware The company provides administration, transfer and dividend disbursing agent services to various mutual fund entities.
Nationwide Retirement Solutions, Inc. Delaware The company markets and administers deferred compensation plans for public employees.
Nationwide Securities, LLC Delaware The company is a registered broker-dealer.
Nationwide Bank Federal This is a federally savings bank chartered by the Office of Thrift Supervision in the United States Department of Treasury to exercise deposit, lending, agency, custody and fiduciary powers and to engage in activities permissible for federal savings banks under the Home Owners’ Loan Act of 1933.

 

Company Jurisdiction
of Domicile 		Brief Description of Business
Nationwide Financial Services Capital Trust Delaware The trust’s sole purpose is to issue and sell certain securities representing individual beneficial interests in the assets of the trust
Nationwide Life Insurance Company2 Ohio A stock corporation. The corporation provides individual life insurance, group and health insurance, fixed and variable annuity products and other life insurance products.
Jefferson National Financial Corporation Delaware A stock corporation. The corporation is the holding company of Jefferson National Life Insurance Company, Jefferson National Life Insurance Company of New York, Jefferson National Securities Corporation, and JNF Advisors, Inc., offering annuity products and services.
Jefferson National Life Insurance Company Texas The company provides life, health and annuity products.
Jefferson National Life Insurance Company of New York New York The company provides variable annuity products.
Jefferson National Securities Corporation Delaware The company is a limited purpose broker-dealer and distributor of variable annuities for Jefferson National Life Insurance Company and Jefferson National Life Insurance Company of New York.
JNF Advisors, Inc. Delaware The company is an investment advisory firm but currently manages no assets.
MFS Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Multi-Flex Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-II2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-32,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-42,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-52,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-62,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-72,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-82,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-92,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-102,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-112,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-122,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-132,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-142,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Provident VA Separate Account 12,3 Pennsylvania A separate account issuing variable annuity contracts.
Nationwide VLI Separate Account2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-22,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-32,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-42,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-52,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-62,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-72,3 Ohio A separate account issuing variable life insurance policies.
Nationwide Provident VLI Separate Account 12,3 Pennsylvania A separate account issuing variable life insurance policies.

 

Company Jurisdiction
of Domicile 		Brief Description of Business
Nationwide Investment Services Corporation3 Oklahoma This is a limited purpose broker-dealer and distributor of variable annuities and variable life products for Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company. The company also provides educational services to retirement plan sponsors and its participants.
Nationwide Financial Assignment Company3 Ohio The company is an administrator of structured settlements.
Nationwide Investment Advisors, LLC3 Ohio The company provides investment advisory services.
Eagle Captive Reinsurance, LLC3 Ohio The company is engaged in the business of insurance
Nationwide Life and Annuity Insurance Company2,3 Ohio The company engages in underwriting life insurance and granting, purchasing and disposing of annuities.
Nationwide VA Separate Account-A2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-B2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-C2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-D2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Provident VA Separate Account A2,3 Delaware A separate account issuing variable annuity contracts.
Nationwide VL Separate Account-A2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-B2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-C2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-D2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-G2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide Provident VLI Separate Account A2,3 Delaware A separate account issuing variable life insurance policies.
Olentangy Reinsurance, LLC3 Vermont The company is a captive life reinsurance company.
Registered Investment Advisors Services, Inc.3 Texas The company is a technology company that facilitates third-party money management services for registered investment advisors
Nationwide Fund Advisors3,4 Delaware The trust acts as a registered investment advisor.
1 This subsidiary/entity is controlled by its immediate parent through contractual association.
2 This subsidiary/entity files separate financial statements.
3 Information for this subsidiary/entity is included in the consolidated financial statements of its immediate parent.
4 This subsidiary/entity is a business trust.
Item 29. 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 30. Principal Underwriter
Nationwide Investment Services Corporation ("NISC")
(a) NISC serves as principal underwriter and general distributor for the following separate investment accounts of Nationwide or its affiliates:
   
MFS Variable Account Nationwide VA Separate Account-C
Multi-Flex Variable Account Nationwide VA Separate Account-D
Nationwide Variable Account Nationwide VLI Separate Account
Nationwide Variable Account-II Nationwide VLI Separate Account-2
Nationwide Variable Account-3 Nationwide VLI Separate Account-3
Nationwide Variable Account-4 Nationwide VLI Separate Account-4
Nationwide Variable Account-5 Nationwide VLI Separate Account-5
Nationwide Variable Account-6 Nationwide VLI Separate Account-6
Nationwide Variable Account-7 Nationwide VLI Separate Account-7
Nationwide Variable Account-8 Nationwide VL Separate Account-A
Nationwide Variable Account-9 Nationwide VL Separate Account-C
Nationwide Variable Account-10 Nationwide VL Separate Account-D
Nationwide Variable Account-11 Nationwide VL Separate Account-G
Nationwide Variable Account-12 Nationwide Provident VA Separate Account 1
Nationwide Variable Account-13 Nationwide Provident VA Separate Account A
Nationwide Variable Account-14 Nationwide Provident VLI Separate Account 1
Nationwide VA Separate Account-A Nationwide Provident VLI Separate Account A
Nationwide VA Separate Account-B  
(b) Directors and Officers of NISC:
   
President Robert O. Cline
Vice President-Chief Compliance Officer James J. Rabenstine
Vice President-Tax Daniel P. Eppley
Vice President-Property Management & Accounting and Financial Operations Peter J. Rothermel
Associate Vice President-Nationwide Financial Services Distribution Compliance Valerie Hamilton
Associate Vice President and Secretary Kathy R. Richards
Associate Vice President and Treasurer Christopher Igodan, Jr.
Associate Vice President and Assistant Treasurer J. Morgan Elliott
Associate Vice President and Assistant Treasurer John A. Reese
Associate Vice President and Assistant Treasurer Sarah E. Zureich
Assistant Secretary Keith W. Hinze
Director John L. Carter
Director Eric S. Henderson
Director Tina Ambrozy
The business address of the Directors and Officers of NISC is:
One Nationwide Plaza, Columbus, Ohio 43215.
(c)
Name of Principal Underwriter   Net Underwriting
Discounts and
Commissions 		  Compensation on
Redemption or
Annuitization 		  Brokerage
Commissions 		  Compensation
Nationwide Investment Services Corporation
   N/A   N/A   N/A   N/A
Item 31. Location of Accounts and Records
Timothy G. Frommeyer
Nationwide Life Insurance Company
One Nationwide Plaza
Columbus, OH 43215

 

Item 32. Management Services
Not Applicable
Item 33. Fee Representation
Nationwide Life Insurance Company 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 Life Insurance Company.

 

SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements of Rule 485(b) under the Securities Act of 1933 for effectiveness of the Registration Statement and has caused this Registration Statement to be signed by the undersigned, duly authorized, in the City of Columbus, and State of Ohio, on April 13, 2017.
Nationwide VLI Separate Account-4
(Registrant)
Nationwide Life Insurance Company
(Depositor)
By: /s/ PAIGE L. RYAN
Paige L. Ryan
Attorney-in-Fact
As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated, on April 13, 2017.
KIRT A. WALKER  
Kirt A. Walker, President and Chief Operating Officer, and Director  
MARK R. THRESHER  
Mark R. Thresher, Executive Vice President and Director  
TIMOTHY G. FROMMEYER  
Timothy G. Frommeyer, Senior Vice President-Chief Financial Officer and Director  
ERIC S. HENDERSON  
Eric S. Henderson, Senior Vice President - Individual Products & Solutions and Director  
JOHN L. CARTER  
John L. Carter, Senior Vice President – Nationwide Retirement Plans and Director  
STEPHEN S. RASMUSSEN  
Stephen S. Rasmussen, Director  
  By /s/ PAIGE L. RYAN
  Paige L. Ryan
Attorney-in-Fact

 

EX-99.(N) 2 d499031dex99n.htm CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Consent of Independent Registered Public Accounting Firm
Consent of Independent Registered Public Accounting Firm
The Board of Directors and Shareholder
Nationwide Life Insurance Company:
We consent to the use of our report on Nationwide VLI Separate Account-4, dated March 21, 2017, included herein. We also consent to the reference to our firm under the heading "Independent Registered Public Accounting Firm" in the Statement of Additional Information on Form N-6 (File No. 333-169879).
/s/ KPMG LLP
Columbus, Ohio
April 10, 2017

 

Consent of Independent Registered Public Accounting Firm
The Board of Directors and Shareholder
Nationwide Life Insurance Company:
We consent to the use of our report on the consolidated financial statements and financial statement schedules of Nationwide Life Insurance Company and subsidiaries, dated February 28, 2017, included herein. We also consent to the reference to our firm under the heading "Independent Registered Public Accounting Firm" in the Statement of Additional Information on Form N-6.
/s/ KPMG LLP
Columbus, Ohio
April 10, 2017

 

EX-99.(99) 3 d499031dex9999.htm POWER OF ATTORNEY Power of Attorney
POWER OF ATTORNEY
Each of the undersigned as directors and/or officers of NATIONWIDE LIFE INSURANCE COMPANY and NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY, both Ohio corporations, which have filed or will file with the U.S. Securities and Exchange Commission under the provisions of the Securities Act of 1933, as amended; the Investment Company Act of 1940, as amended; and, if applicable, the Securities Exchange Act of 1934, various registration statements and amendments thereto for the registration of current, as well as any future, separate accounts established by said corporations for the purpose of registering under said Act(s) immediate or deferred variable annuity contracts, fixed interest rate options subject to a market value adjustment, group flexible fund retirement annuity contracts and variable life insurance policies in connection with the separate accounts and contracts listed below:
Variable Annuities and Variable Life Insurance Policies
Separate Account (1940 Act File No.)   1933 Act File Nos.
MFS Variable Account (811-2662)   002-73432
Multi-Flex Variable Account (811-3338)   033-23905, 002-75174
Nationwide Variable Account (811-2716)   002-58043, 333-80481, 033-60239, 333-176908
Nationwide Variable Account-II (811-3330)   002-75059, 033-67636, 033-60063, 333-103093, 333-103094, 333-103095, 333-104513, 333-104511, 333-104512, 333-104510, 333-151990, 333-105992, 333-147273, 333-140621, 333-144053, 333-147198, 333-160635, 333-164886, 333-168818, 333-177934, 333-177581, 333-177582, 333-177316, 333-177319, 333-177439, 333-177441, 333-177729, 333-177731, 333-173349, 333-177938, 333-182494
Nationwide Variable Account-3 (811-5405)   033-18422, 033-24434
Nationwide Variable Account-4 (811-5701)   033-25734, 033-26454, 333-62692, 333-135650, 333-140812, 333-201820
Nationwide Variable Account-5 (811-8142)   033-71440
Nationwide Variable Account-6 (811-8684)   033-82370, 333-21909
Nationwide Variable Account-7 (811-8666)   033-82190, 033-82174, 033-89560
Nationwide Variable Account-8 (811-7357)   033-62637, 033-62659
Nationwide Variable Account-9 (811-08241)   333-28995, 333-52579, 333-56073, 333-53023, 333-79327, 333-69014, 333-75360
Nationwide Variable Account-10 (811-09407)   333-81701
Nationwide Variable Account-11 (811-10591)   333-74904, 333-74908
Nationwide Variable Account-12 (811-21099)   333-88612, 333-108894, 333-178057, 333-178059
Nationwide Variable Account-13 (811-21139)   333-91890
Nationwide Variable Account-14 (811-21205)   333-104339
Nationwide VA Separate Account-A (811-5606)   033-85164, 033-22940
Nationwide VA Separate Account-B (811-06399)   033-86408, 033-93482, 333-11415
Nationwide VA Separate Account-C (811-7908)   033-66496, 333-44485
Nationwide VA Separate Account-D (811-10139)   333-45976
Nationwide VLI Separate Account (811-4399)   033-00145, 033-44290, 033-35698
Nationwide VLI Separate Account-2 (811-5311)   033-16999, 033-62795, 033-42180, 033-35783, 033-63179, 333-27133
Nationwide VLI Separate Account-3 (811-6140)   033-44789, 033-44296
Nationwide VLI Separate Account-4 (811-08301)   333-31725, 333-43671, 333-52617, 333-94037, 333-52615, 333-53728, 333-69160, 333-83010, 333-137202, 333-153343, 333-169879
Nationwide VLI Separate Account-5 (811-10143)   333-46338, 333-46412, 333-66572, 333-121881, 333-125481, 333-125482
Nationwide VLI Separate Account-6 (811-21398)   333-106908
Nationwide VLI Separate Account-7 (811-21610)   333-117998, 333-121879, 333-146649, 333-140606, 333-149295, 333-156020, 333-182893, 333-182887
Nationwide VL Separate Account-A (811-6137)   033-44792, 033-44300, 033-35775, 333-27123, 333-22677

 

Variable Annuities and Variable Life Insurance Policies
Separate Account (1940 Act File No.)   1933 Act File Nos.
Nationwide VL Separate Account-B (811-07819)   333-12333
Nationwide VL Separate Account-C (811-8351)   333-43639, 333-36869
Nationwide VL Separate Account-D (811-08891)   333-59517
Nationwide VL Separate Account-G (811-21697)   333-121878, 333-140608, 333-146073, 333-146650, 333-149213, 333-155153, 333-182897, 333-182896, Nationwide® Variable Universal Life Accumulator (1933 Act No. TBD), Nationwide® Variable Universal Life Protector (1933 Act No. TBD), Nationwide Marathon® Variable Universal Life Accumulator (1933 Act No. TBD), Nationwide Marathon® Variable Universal Life Protector (1933 Act No. TBD)
Nationwide Provident VA Separate Account 1 (811-7708)   333-164127; 333-164125; 333-164126; 333-164124
Nationwide Provident VLI Separate Account 1 (811-4460)   333-164180; 333-164117; 333-164178; 333-164179; 333-164119; 333-164120; 333-164115; 333-164118; 333-164116
Nationwide Provident VA Separate Account A (811-6484)   333-164131; 333-164130; 333-164132; 333-164129; 333-164128
Nationwide Provident VLI Separate Account A (811-8722)   333-164188; 333-164123; 333-164185; 333-164122; 333-164121
    
General Account Products
Insurance Company   1933 Act File Nos.
Nationwide Life Insurance Company   333-133163, 333-196863, 333-149613, 333-155368, 333-160418, 333-200329, 333-203062
Nationwide Life and Annuity Insurance Company   333-47640
hereby constitute and appoint Stephen S. Rasmussen, Kirt A. Walker, John L. Carter, Eric S. Henderson, Jamie Ruff Casto, Paige L. Ryan, Stephen M. Jackson, and Jeanny V. Simaitis, and each of them with power to act without the others, as his/her attorney, with full power of substitution for and in his/her name, place and stead, in any and all capacities, to approve, and sign such Registration Statements, and any and all amendments thereto, with power to affix the corporate seal of said corporation thereto and to attest said seal and to file the same, with all exhibits thereto and other documents in connection therewith, with the U.S. Securities and Exchange Commission, hereby granting unto said attorneys, and each of them, full power and authority to do and perform all and every act and thing requisite to all intents and purposes as he/she might or could do in person, hereby ratifying and confirming that which said attorneys, or any of them, may lawfully do or cause to be done by virtue hereof. This instrument may be executed in one or more counterparts.
IN WITNESS WHEREOF, the undersigned have herewith set their names as of this 8th day of August, 2016.
/s/ Timothy G. Frommeyer   /s/ Eric S. Henderson
TIMOTHY G. FROMMEYER, Director   ERIC S. HENDERSON, Director
/s/ Stephen S. Rasmussen   /s/ Mark R. Thresher
STEPHEN S. RASMUSSEN, Director   MARK R. THRESHER, Director
/s/ Kirt A. Walker   /s/ John L.Carter
KIRT A. WALKER, Director   JOHN L. CARTER, Director

 

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