NATIONWIDE

VL SEPARATE

ACCOUNT-C

Annual Report

to

Contract Owners

December 31, 2010

NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY

HOME OFFICE: COLUMBUS, OHIO

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life and Annuity Insurance

Company and Contract Owners of Nationwide VL Separate Account-C:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide VL Separate Account-C (comprised of the sub-accounts listed in note 1(b) (collectively, “the Accounts”)) as of December 31, 2010, and the related statements of operations for the year then ended, the statements of changes in contract owners’ equity for each of the years in the two-year period then ended, and the financial highlights for each of the years 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 audits 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, 2010, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2010, the results of their operations for the year then ended, the changes in contract owners’ equity for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/    KPMG LLP

Columbus, Ohio

March 9, 2011

2

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2010

Assets:
Investments at fair value:
Large Cap Core V.I. Fund - Class II (MLVLC2)
19 shares (cost $404)	$	440
Variable Series, Inc. - Social Equity Portfolio (CVSSE)
370 shares (cost $6,732)		7,152
Credit Suisse Trust- International Equity Flex III Portfolio (CSIEF3)
54,801 shares (cost $316,319)		360,043
U.S. Equity Flex I Portfolio (WSCP)
21,321 shares (cost $209,986)		303,829
Insurance Trust - Insurance Trust Diversified Mid Cap Growth Portfolio 1 (OGGO)
60,028 shares (cost $652,105)		1,015,076
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)
1,775 shares (cost $50,926)		52,209
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)
6,125 shares (cost $181,252)		215,840
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)
291,335 shares (cost $1,487,731)		1,648,959
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)
53,435 shares (cost $2,357,947)		2,994,515
Series Fund - Mid Cap Value Portfolio - Class VC (LOVMCV)
2,210 shares (cost $33,469)		36,594
Research International Series - Service Class (MVRISC)
7,554 shares (cost $85,116)		93,291
Value Series - Service Class (MVFSC)
6,480 shares (cost $74,334)		83,133
Variable Insurance Trust II - International Value Portfolio - Service Class (MVIVSC)
130,268 shares (cost $1,866,997)		2,010,039
Emerging Markets Debt Portfolio - Class I (MSEM)
3,706 shares (cost $27,115)		30,166
Mid Cap Growth Portfolio - Class I (MSVMG)
5,706 shares (cost $40,081)		69,159
U.S. Real Estate Portfolio - Class I (MSVRE)
66,276 shares (cost $606,438)		855,629
Federated NVIT High Income Bond Fund - Class I (HIBF)
250,634 shares (cost $1,488,402)		1,716,842
Gartmore NVIT Emerging Markets Fund - Class I (GEM)
87,819 shares (cost $1,483,278)		1,158,335
Gartmore NVIT International Equity Fund - Class I (GIG)
6,700 shares (cost $41,913)		60,236
Gartmore NVIT Worldwide Leaders Fund - Class I (GEF)
14,185 shares (cost $125,623)		160,002
NVIT Fund - Class I (TRF)
21,808 shares (cost $172,924)		198,667
NVIT Government Bond Fund - Class I (GBF)
355,764 shares (cost $4,197,500)		4,087,730
NVIT Growth Fund - Class I (CAF)
2,528 shares (cost $24,748)		35,247
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)
491 shares (cost $4,137)		4,556
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)
544 shares (cost $5,182)		5,542
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)
48,515 shares (cost $438,345)		512,314
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
3,972 shares (cost $38,872)		41,305

(Continued)

3

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2010

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
547 shares (cost $5,536)	5,702
NVIT Mid Cap Index Fund - Class I (MCIF)
326,345 shares (cost $4,656,973)	6,024,326
NVIT Money Market Fund - Class I (SAM)
327,739 shares (cost $327,739)	327,739
NVIT Money Market Fund - Class V (SAM5)
52,435,731 shares (cost $52,435,731)	52,435,731
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
15,642 shares (cost $138,558)	150,319
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
5,317 shares (cost $46,826)	47,743
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
2,199 shares (cost $15,893)	23,395
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)
15,891 shares (cost $219,178)	245,198
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)
349,099 shares (cost $3,085,255)	3,648,081
NVIT Multi-Manager Small Company Fund - Class I (SCF)
129,551 shares (cost $1,634,904)	2,339,696
NVIT Multi-Sector Bond Fund - Class I (MSBF)
79,826 shares (cost $666,647)	684,908
Van Kampen NVIT Comstock Value Fund - Class I (EIF)
5,629 shares (cost $40,907)	57,020
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)
8,404 shares (cost $93,546)	94,127
V.I. Basic Value Fund - Series I (AVBVI)
1,546 shares (cost $9,170)	9,865
V.I. Capital Development Fund - Series I (AVCDI)
292 shares (cost $2,677)	3,918
V.I. International Growth Fund - Series I (AVIE)
1,615 shares (cost $42,904)	46,340
VPS Growth and Income Portfolio - Class A (ALVGIA)
1,743 shares (cost $22,873)	29,954
VPS International Value Portfolio - Class A (ALVIVA)
64,974 shares (cost $888,983)	968,108
VP Balanced Fund - Class I (ACVB)
41,257 shares (cost $230,689)	259,921
VP Capital Appreciation Fund - Class I (ACVCA)
31,829 shares (cost $321,933)	450,060
VP Income & Growth Fund - Class I (ACVIG)
75,848 shares (cost $403,291)	458,877
VP International Fund - Class I (ACVI)
151,990 shares (cost $1,415,539)	1,301,034
VP Ultra(R) Fund - Class I (ACVU1)
3,927 shares (cost $33,464)	36,836
VP Value Fund - Class I (ACVV)
151,233 shares (cost $671,649)	886,228
VP Vista(SM) Fund - Class I (ACVVS1)
3,028 shares (cost $38,985)	49,471
MidCap Stock Portfolio - Initial Shares (DVMCS)
1,379 shares (cost $14,422)	18,165
Small Cap Stock Index Portfolio - Service Shares (DVSCS)
490,793 shares (cost $5,003,459)	5,987,673
Stock Index Fund, Inc. - Initial Shares (DSIF)
993,178 shares (cost $28,710,281)	29,467,579
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
908 shares (cost $23,528)	27,150

(Continued)

4

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2010

Appreciation Portfolio - Initial Shares (DCAP)
12,359 shares (cost $364,629)	437,996
Growth and Income Portfolio - Initial Shares (DGI)
7,914 shares (cost $131,445)	156,381
International Value Portfolio - Initial Shares (DVIV)
79,030 shares (cost $856,965)	885,929
Quality Bond Fund II - Primary Shares (FQB)
43,428 shares (cost $473,493)	501,590
Equity-Income Portfolio - Initial Class (FEIP)
2,176 shares (cost $33,428)	41,393
High Income Portfolio - Initial Class (FHIP)
8,358 shares (cost $42,391)	46,556
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)
309,200 shares (cost $4,124,130)	4,495,774
VIP Fund - Contrafund Portfolio - Initial Class (FCP)
6,122 shares (cost $121,734)	146,183
VIP Fund - Contrafund Portfolio - Service Class (FCS)
107,001 shares (cost $1,791,608)	2,547,693
VIP Fund - Equity-Income Portfolio - Service Class (FEIS)
21,958 shares (cost $320,532)	416,330
VIP Fund - Growth Opportunities Portfolio - Initial Class (FGOP)
835 shares (cost $11,692)	14,970
VIP Fund - Growth Opportunities Portfolio - Service Class (FGOS)
53,739 shares (cost $867,848)	961,385
VIP Fund - Growth Portfolio - Initial Class (FGP)
1,349 shares (cost $48,707)	50,043
VIP Fund - Growth Portfolio - Service Class (FGS)
20,330 shares (cost $626,370)	752,024
VIP Fund - High Income Portfolio - Service Class (FHIS)
292,295 shares (cost $1,696,348)	1,619,312
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)
3,061 shares (cost $40,196)	38,972
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)
37,061 shares (cost $898,451)	1,205,229
VIP Fund - Overseas Portfolio - Initial Class (FOP)
1,810 shares (cost $26,878)	30,349
VIP Fund - Overseas Portfolio - Service Class (FOS)
15,302 shares (cost $230,606)	255,536
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)
1,957 shares (cost $12,000)	19,005
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)
37,194 shares (cost $482,916)	604,406
Templeton Foreign Securities Fund - Class 2 (TIF2)
10,767 shares (cost $141,613)	153,861
Goldman Sachs VIT - Goldman Sachs Mid Cap Value Fund - Institutional Shares (GVMCE)
160,411 shares (cost $1,681,675)	2,261,790
Lincoln VIP Trust - Baron Growth Opportunities Funds - Service Class (BNCAI)
9,186 shares (cost $165,057)	278,060
Growth Portfolio - I Class Shares (AMTG)
11,520 shares (cost $137,871)	214,381
Guardian Portfolio - I Class Shares (AMGP)
3,896 shares (cost $53,519)	73,796
Mid-Cap Growth Portfolio - I Class Shares (AMCG)
6,140 shares (cost $147,151)	168,365
Partners Portfolio - I Class Shares (AMTP)
35,530 shares (cost $298,870)	400,419
Small-Cap Growth Portfolio - S Class Shares (AMFAS)
652 shares (cost $5,667)	7,992

(Continued)

5

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2010

Balanced Fund/VA - Non-Service Shares (OVMS)
28,110 shares (cost $318,543)		322,422
Capital Appreciation Fund/VA - Non-Service Shares (OVGR)
50,032 shares (cost $1,717,821)		2,018,778
Core Bond Fund/VA - Non-Service Shares (OVB)
36,258 shares (cost $300,170)		280,272
Global Securities Fund/VA - Non-Service Shares (OVGS)
57,564 shares (cost $1,300,216)		1,744,184
Main Street Fund(R)/VA - Non-Service Shares (OVGI)
5,891 shares (cost $109,356)		123,011
MidCap Fund/VA - Non-Service Shares (OVAG)
7,031 shares (cost $251,281)		327,296
All Asset Portfolio - Administrative Class (PMVAAA)
4,125 shares (cost $45,621)		45,297
Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)
38,002 shares (cost $454,388)		433,224
Low Duration Portfolio - Administrative Class (PMVLDA)
130,562 shares (cost $1,348,825)		1,363,063
Real Return Portfolio - Administrative Class (PMVRRA)
366,632 shares (cost $4,514,634)		4,817,548
Total Return Portfolio - Administrative Class (PMVTRA)
1,377,635 shares (cost $15,268,727)		15,264,201
Variable Contracts Trust - High Yield VCT Portfolio - Class I Shares (PIHYB1)
2,743 shares (cost $26,317)		29,187
Micro-Cap Portfolio - Investment Class (ROCMC)
240,087 shares (cost $1,978,721)		2,924,256
Equity Income Portfolio - II (TREI2)
124,749 shares (cost $2,051,885)		2,480,019
Mid-Cap Growth Portfolio - II (TRMCG2)
48,430 shares (cost $856,141)		1,167,162
New America Growth Portfolio (TRNAG1)
26,871 shares (cost $410,966)		600,825
Worldwide Insurance Trust - Worldwide Bond Fund - Initial Class (VWBF)
29,957 shares (cost $333,055)		360,387
Worldwide Insurance Trust - Worldwide Emerging Markets Fund - Initial Class (VWEM)
223,674 shares (cost $2,628,682)		3,162,753
Worldwide Insurance Trust - Worldwide Hard Assets Fund - Initial Class (VWHA)
47,583 shares (cost $1,515,506)		1,792,434
Ivy Fund Variable Insurance Portfolios, Inc. - Growth (WRGP)
347 shares (cost $2,818)		3,606
Ivy Fund Variable Insurance Portfolios, Inc. - Real Estate Securities (WRRESP)
979 shares (cost $3,619)		6,343
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)
1,346 shares (cost $20,003)		28,646
Advantage Funds Variable Trust - VT Opportunity Fund (SVOF)
8,245 shares (cost $114,800)		151,877
Total Investments	$	182,074,525
Account Receivable		123,820
Accounts Payable - All Asset Portfolio - Administrative Class (PMVAAA)		(12,230	)
	$	182,186,115
Contract Owners’ Equity:
Accumulation units		182,186,115
Total Contract Owners’ Equity (note 8)	$	182,186,115

See accompanying notes to financial statements.

6

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2010

Investment Activity:	Total			MLVLC2			CVSSE			CSIEF3			WSCP			OGGO			JABS			JACAS
Reinvested dividends	$	2,139,310			4			4			326			431			-			4,268			501
Asset charges (note 3)		(420,882	)		(1	)		(26	)		(849	)		(797	)		(2,683	)		(252	)		(527	)
Net investment income (loss)		1,718,428			3			(22	)		(523	)		(366	)		(2,683	)		4,016			(26	)
Realized gain (loss) on investments		(5,302,366	)		138			3,074			(8,337	)		(66,051	)		(29,625	)		(11,276	)		14,502
Change in unrealized gain (loss) on investments		20,299,570			(55	)		(1,784	)		38,484			97,370			281,255			(4,735	)		(1,694	)
Net gain (loss) on investments		14,997,204			83			1,290			30,147			31,319			251,630			(16,011	)		12,808
Reinvested capital gains		808,512			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	17,524,144			86			1,268			29,624			30,953			248,947			(11,995	)		12,782
Investment Activity:	JAGTS			JAIGS			LZREMS			LOVMCV			MVRISC			MVFSC			MVIVSC			MSEM
Reinvested dividends	$	-			14,369			-			136			1,161			1,020			20,539			1,222
Asset charges (note 3)		(2,488	)		(7,064	)		(1,008	)		(252	)		(213	)		(194	)		(4,490	)		(76	)
Net investment income (loss)		(2,488	)		7,305			(1,008	)		(116	)		948			826			16,049			1,146
Realized gain (loss) on investments		439,415			182,590			383,767			43,716			(566	)		58			190			1,760
Change in unrealized gain (loss) on investments		(104,930	)		459,273			-			(23,595	)		8,180			7,331			163,751			(337	)
Net gain (loss) on investments		334,485			641,863			383,767			20,121			7,614			7,389			163,941			1,423
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	331,997			649,168			382,759			20,005			8,562			8,215			179,990			2,569

(Continued)

7

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2010

Investment Activity:	MSVMG			MSVRE			HIBF			GEM			GVGU1			GIG			GEF			TRF
Reinvested dividends	$	-			16,187			141,431			638			152			553			1,513			1,897
Asset charges (note 3)		(182	)		(2,426	)		(4,100	)		(2,592	)		(14	)		(165	)		(377	)		(468	)
Net investment income (loss)		(182	)		13,761			137,331			(1,954	)		138			388			1,136			1,429
Realized gain (loss) on investments		17,466			168,259			(8,309	)		(11,498	)		2,337			10,624			(15,458	)		(3,173	)
Change in unrealized gain (loss) on investments		3,861			117,847			69,901			172,343			(2,967	)		(3,056	)		32,333			27,337
Net gain (loss) on investments		21,327			286,106			61,592			160,845			(630	)		7,568			16,875			24,164
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	21,145			299,867			198,923			158,891			(492	)		7,956			18,011			25,593
Investment Activity:	GVGF1			GBF			CAF			GVGH1			GVIX2			GVIDA			GVIDC			GVIDM
Reinvested dividends	$	137			126,379			207			211			84,632			84			127			10,867
Asset charges (note 3)		(30	)		(10,832	)		(84	)		(62	)		(8,784	)		(12	)		(14	)		(1,366	)
Net investment income (loss)		107			115,547			123			149			75,848			72			113			9,501
Realized gain (loss) on investments		5,893			21,032			3,566			9,757			(1,135,726	)		1,289			(2	)		5,368
Change in unrealized gain (loss) on investments		(4,912	)		(96,681	)		2,763			(8,957	)		1,701,181			(535	)		187			38,037
Net gain (loss) on investments		981			(75,649	)		6,329			800			565,455			754			185			43,405
Reinvested capital gains		-			153,539			-			-			-			-			15			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,088			193,437			6,452			949			641,303			826			313			52,906

(Continued)

8

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2010

Investment Activity:	GVDMA			GVDMC			GVUS1			MCIF			SAM			SAM5			NVMLG1			NVMLV1
Reinvested dividends	$	917			131			12			66,105			-			68			70			254
Asset charges (note 3)		(123	)		(16	)		(7	)		(10,691	)		(827	)		(133,501	)		(239	)		(92	)
Net investment income (loss)		794			115			5			55,414			(827	)		(133,433	)		(169	)		162
Realized gain (loss) on investments		12,244			775			2,683			(319,541	)		-			-			(2,004	)		444
Change in unrealized gain (loss) on investments		(6,244	)		(387	)		(2,218	)		1,475,951			-			-			11,761			917
Net gain (loss) on investments		6,000			388			465			1,156,410			-			-			9,757			1,361
Reinvested capital gains		-			-			-			6,016			-			-			5,190			1,621
Net increase (decrease) in contract owners’ equity resulting from operations	$	6,794			503			470			1,217,840			(827	)		(133,433	)		14,778			3,144
Investment Activity:	NVMMG1			SCGF			SCVF			SCF			MSBF			GGTC			GVUG1			EIF
Reinvested dividends	$	-			-			18,630			6,205			43,518			-			-			824
Asset charges (note 3)		(51	)		(550	)		(7,932	)		(5,510	)		(1,791	)		(62	)		(11	)		(138	)
Net investment income (loss)		(51	)		(550	)		10,698			695			41,727			(62	)		(11	)		686
Realized gain (loss) on investments		1,357			(11,080	)		(273,562	)		7,034			22,027			29,313			3,706			2,788
Change in unrealized gain (loss) on investments		3,838			64,399			1,036,974			486,754			10,272			(26,478	)		(2,827	)		5,221
Net gain (loss) on investments		5,195			53,319			763,412			493,788			32,299			2,835			879			8,009
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	5,144			52,769			774,110			494,483			74,026			2,773			868			8,695

(Continued)

9

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2010

Investment Activity:	AMTB			AVBVI			AVCDI			AVIE			ALVGIA			ALVIVA			ACVB			ACVCA
Reinvested dividends	$	4,995			59			-			786			-			67,020			4,690			-
Asset charges (note 3)		(239	)		(773	)		(9	)		(86	)		(70	)		(8,628	)		(618	)		(959	)
Net investment income (loss)		4,756			(714	)		(9	)		700			(70	)		58,392			4,072			(959	)
Realized gain (loss) on investments		(514	)		136,660			(88	)		2,011			695			(1,872,276	)		(1,038	)		4,824
Change in unrealized gain (loss) on investments		454			(31,810	)		759			2,414			2,951			1,479,710			23,804			102,698
Net gain (loss) on investments		(60	)		104,850			671			4,425			3,646			(392,566	)		22,766			107,522
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	4,696			104,136			662			5,125			3,576			(334,174	)		26,838			106,563
Investment Activity:	ACVIG			ACVI			ACVU1			ACVV			ACVVS1			DVMCS			DVSCS			DSIF
Reinvested dividends	$	6,445			35,175			754			19,611			-			116			30,349			378,272
Asset charges (note 3)		(1,067	)		(3,515	)		(316	)		(2,254	)		(106	)		(49	)		(10,448	)		(42,477	)
Net investment income (loss)		5,378			31,660			438			17,357			(106	)		67			19,901			335,795
Realized gain (loss) on investments		(16,192	)		(152,833	)		29,672			(14,247	)		(1,085	)		3,092			(1,341,289	)		(1,948,576	)
Change in unrealized gain (loss) on investments		71,222			288,789			(16,410	)		110,683			11,043			(265	)		2,535,774			4,398,821
Net gain (loss) on investments		55,030			135,956			13,262			96,436			9,958			2,827			1,194,485			2,450,245
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	60,408			167,616			13,700			113,793			9,852			2,894			1,214,386			2,786,040

(Continued)

10

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2010

Investment Activity:	DSRG			DCAP			DGI			DVIV			FQB			FEIP			FHIP			FAMP
Reinvested dividends	$	310			7,699			1,704			17,046			21,515			699			3,464			72,175
Asset charges (note 3)		(79	)		(950	)		(350	)		(2,283	)		(1,189	)		(91	)		(109	)		(10,431	)
Net investment income (loss)		231			6,749			1,354			14,763			20,326			608			3,355			61,744
Realized gain (loss) on investments		4,698			(8,212	)		(1,295	)		(212,658	)		12,690			(287	)		(91	)		(55,317	)
Change in unrealized gain (loss) on investments		(276	)		60,735			24,328			232,907			2,232			5,237			2,548			530,828
Net gain (loss) on investments		4,422			52,523			23,033			20,249			14,922			4,950			2,457			475,511
Reinvested capital gains		-			-			-			-			-			-			-			21,811
Net increase (decrease) in contract owners’ equity resulting from operations	$	4,653			59,272			24,387			35,012			35,248			5,558			5,812			559,066
Investment Activity:	FCP			FCS			FEIS			FGOP			FGOS			FGP			FGS			FHIS
Reinvested dividends	$	1,653			25,575			8,878			28			825			124			1,225			123,087
Asset charges (note 3)		(327	)		(5,958	)		(1,147	)		(29	)		(2,135	)		(114	)		(1,894	)		(1,444	)
Net investment income (loss)		1,326			19,617			7,731			(1	)		(1,310	)		10			(669	)		121,643
Realized gain (loss) on investments		(1,489	)		162,527			81,693			(122	)		6,790			(10,833	)		(60,624	)		18,601
Change in unrealized gain (loss) on investments		21,891			187,908			(17,525	)		3,066			182,531			19,067			220,986			(85,915	)
Net gain (loss) on investments		20,402			350,435			64,168			2,944			189,321			8,234			160,362			(67,314	)
Reinvested capital gains		61			1,061			-			-			-			144			2,438			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	21,789			371,113			71,899			2,943			188,011			8,388			162,131			54,329

(Continued)

11

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2010

Investment Activity:	FIGBS			FMCS			FOP			FOS			FVSS			FTVSV2			TIF2			GVMCE
Reinvested dividends	$	2,573			2,930			392			4,073			83			2,490			2,947			14,027
Asset charges (note 3)		(126	)		(2,380	)		(70	)		(877	)		(42	)		(922	)		(417	)		(5,395	)
Net investment income (loss)		2,447			550			322			3,196			41			1,568			2,530			8,632
Realized gain (loss) on investments		3,804			1,149			(1,245	)		77,521			1,569			47,534			13,912			(92,328	)
Change in unrealized gain (loss) on investments		(3,746	)		243,150			4,885			(39,777	)		2,385			53,131			970			576,724
Net gain (loss) on investments		58			244,299			3,640			37,744			3,954			100,665			14,882			484,396
Reinvested capital gains		811			3,223			53			599			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,316			248,072			4,015			41,539			3,995			102,233			17,412			493,028
Investment Activity:	BNCAI			AMTG			AMGP			AMCG			AMTP			AMFAS			OVMS			OVGR
Reinvested dividends	$	-			-			258			-			2,548			-			4,210			4,269
Asset charges (note 3)		(874	)		(457	)		(193	)		(2,772	)		(1,192	)		(16	)		(764	)		(5,141	)
Net investment income (loss)		(874	)		(457	)		65			(2,772	)		1,356			(16	)		3,446			(872	)
Realized gain (loss) on investments		69,867			(1,206	)		18,679			(218,795	)		63,074			118			(11,486	)		(90,085	)
Change in unrealized gain (loss) on investments		10,727			52,820			(2,632	)		(30,840	)		4,823			1,220			44,729			265,218
Net gain (loss) on investments		80,594			51,614			16,047			(249,635	)		67,897			1,338			33,243			175,133
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	79,720			51,157			16,112			(252,407	)		69,253			1,322			36,689			174,261

(Continued)

12

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2010

Investment Activity:	OVB			OVGS			OVGI			OVAG			PMVAAA			PMVFBA			PMVLDA			PMVRRA
Reinvested dividends	$	5,043			31,857			1,249			-			40,921			1,581			17,039			67,638
Asset charges (note 3)		(698	)		(4,505	)		(288	)		(702	)		(1,790	)		(221	)		(2,655	)		(11,745	)
Net investment income (loss)		4,345			27,352			961			(702	)		39,131			1,360			14,384			55,893
Realized gain (loss) on investments		(8,903	)		(258,812	)		(3,850	)		(11,165	)		165,770			(19	)		31,566			72,361
Change in unrealized gain (loss) on investments		33,849			482,267			20,213			83,998			(4,037	)		(21,164	)		8,383			183,426
Net gain (loss) on investments		24,946			223,455			16,363			72,833			161,733			(21,183	)		39,949			255,787
Reinvested capital gains		-			-			-			-			-			3,449			2,989			42,779
Net increase (decrease) in contract owners’ equity resulting from operations	$	29,291			250,807			17,324			72,131			200,864			(16,374	)		57,322			354,459
Investment Activity:	PMVTRA			PIHYB1			ROCMC			TREI2			TRMCG2			TRNAG1			VWBF			VWEM
Reinvested dividends	$	403,287			1,554			47,701			39,015			-			1,074			17,670			19,139
Asset charges (note 3)		(36,133	)		(70	)		(5,761	)		(5,789	)		(3,160	)		(1,508	)		(1,045	)		(6,704	)
Net investment income (loss)		367,154			1,484			41,940			33,226			(3,160	)		(434	)		16,625			12,435
Realized gain (loss) on investments		691,519			3,290			(160,014	)		(162,741	)		(29,074	)		103,425			(4,481	)		135,017
Change in unrealized gain (loss) on investments		(272,054	)		290			765,800			441,641			261,144			(4,332	)		8,058			364,718
Net gain (loss) on investments		419,465			3,580			605,786			278,900			232,070			99,093			3,577			499,735
Reinvested capital gains		487,996			-			-			-			62,365			12,352			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,274,615			5,064			647,726			312,126			291,275			111,011			20,202			512,170

(Continued)

13

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2010

Investment Activity:	VWHA			WRGP			WRRESP			SVDF			SVOF
Reinvested dividends	$	791			21			98			-			2,823
Asset charges (note 3)		(1,376	)		(8	)		(14	)		(57	)		(902	)
Net investment income (loss)		(585	)		13			84			(57	)		1,921
Realized gain (loss) on investments		34,149			243			158			232			(48,970	)
Change in unrealized gain (loss) on investments		243,233			258			1,203			7,370			115,205
Net gain (loss) on investments		277,382			501			1,361			7,602			66,235
Reinvested capital gains		-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	276,797			514			1,445			7,545			68,156

See accompanying notes to financial statements.

14

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	Total						MLVLC2						CVSSE						CSIEF3
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	1,718,428			2,228,467			3			(15	)		(22	)		15			(523	)		(66	)
Realized gain (loss) on investments		(5,302,366	)		(24,016,545	)		138			(13,011	)		3,074			(2,053	)		(8,337	)		-
Change in unrealized gain (loss) on investments		20,299,570			46,697,670			(55	)		10,873			(1,784	)		5,853			38,484			5,240
Reinvested capital gains		808,512			2,874,302			-			-			-			583			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		17,524,144			27,783,894			86			(2,153	)		1,268			4,398			29,624			5,174
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		935,548			1,702,445			-			2			-			132			157			-
Transfers between funds		-			-			462			(21,973	)		2,013			3,830			(138,605	)		481,678
Surrenders (notes 6)		(11,485,735	)		(12,628,568	)		(535	)		(220	)		(8,016	)		(5,280	)		(1,070	)		-
Death Benefits (note 4)		(534,288	)		(498,711	)		-			-			-			-			(6,066	)		-
Net policy repayments (loans) (note 4)		(282,868	)		-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(3,415,692	)		(3,495,526	)		(14	)		(110	)		(297	)		(282	)		(10,876	)		-
Adjustments to maintain reserves		102,345			(25,264	)		(7	)		5			8			8			22			5
Net equity transactions		(14,680,690	)		(14,945,624	)		(94	)		(22,296	)		(6,292	)		(1,592	)		(156,438	)		481,683
Net change in contract owners’ equity		2,843,454			12,838,270			(8	)		(24,449	)		(5,024	)		2,806			(126,814	)		486,857
Contract owners’ equity beginning of period		179,342,661			166,504,391			447			24,896			12,184			9,378			486,857			-
Contract owners’ equity end of period	$	182,186,115			179,342,661			439			447			7,160			12,184			360,043			486,857
CHANGES IN UNITS:
Beginning units		14,543,050			16,007,715			42			2,858			844			870			48,168			-
Units purchased		1,788,681			1,768,927			44			1			77			417			2,395			48,168
Units redeemed		(3,324,196	)		(3,233,592	)		(48	)		(2,817	)		(497	)		(443	)		(18,744	)		-
Ending units		13,007,535			14,543,050			38			42			424			844			31,819			48,168

(Continued)

15

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	WSCP						OGGO						JABS						JACAS
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	(366	)		4,566			(2,683	)		(3,006	)		4,016			2,801			(26	)		(2,116	)
Realized gain (loss) on investments		(66,051	)		(74,651	)		(29,625	)		(282,594	)		(11,276	)		10,009			14,502			109,176
Change in unrealized gain (loss) on investments		97,370			188,972			281,255			731,524			(4,735	)		4,176			(1,694	)		38,846
Reinvested capital gains		-			-			-			-			-			3,338			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		30,953			118,887			248,947			445,924			(11,995	)		20,324			12,782			145,906
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		39			110			-			-			-			17			597			(4,853	)
Transfers between funds		(308,554	)		30,234			(502,165	)		(126,806	)		11,165			78,468			28,383			(11,554	)
Surrenders (notes 6)		(5,872	)		-			(115,837	)		-			(42,161	)		(53,666	)		(20,740	)		(11,000	)
Death Benefits (note 4)		(140	)		-			-			-			-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(14,412	)		(23,884	)		(11,735	)		(15,378	)		(3,622	)		(3,284	)		(7,044	)		(12,322	)
Adjustments to maintain reserves		(6	)		1			6,224			19			13			28			18			3
Net equity transactions		(328,945	)		6,461			(623,513	)		(142,165	)		(34,605	)		21,563			1,214			(39,726	)
Net change in contract owners’ equity		(297,992	)		125,348			(374,566	)		303,759			(46,600	)		41,887			13,996			106,180
Contract owners’ equity beginning of period		601,785			476,437			1,389,635			1,085,876			98,822			56,935			201,837			95,657
Contract owners’ equity end of period	$	303,793			601,785			1,015,069			1,389,635			52,222			98,822			215,833			201,837
CHANGES IN UNITS:
Beginning units		75,682			74,511			82,943			92,476			5,886			4,248			19,750			13,634
Units purchased		-			4,870			206			49			-			5,228			2,761			369
Units redeemed		(42,219	)		(3,699	)		(34,803	)		(9,582	)		(3,002	)		(3,590	)		(2,627	)		5,747
Ending units		33,463			75,682			48,346			82,943			2,884			5,886			19,884			19,750

(Continued)

16

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	JAGTS						JAIGS						LZREMS					LOVMCV
	2010			2009			2010			2009			2010			2009		2010			2009
Investment activity:
Net investment income (loss)	$	(2,488	)		(2,254	)		7,305			3,195			(1,008	)		-		(116	)		198
Realized gain (loss) on investments		439,415			(91,631	)		182,590			139,480			383,767			-		43,716			(5,274	)
Change in unrealized gain (loss) on investments		(104,930	)		441,935			459,273			969,257			-			-		(23,595	)		45,153
Reinvested capital gains		-			-			-			54,968			-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		331,997			348,050			649,168			1,166,900			382,759			-		20,005			40,077
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		(18,051	)		3,328			901			75,650			-			-		-			163
Transfers between funds		(344,457	)		1,138,645			(477,536	)		466,651			(378,941	)		-		(47,139	)		95,082
Surrenders (notes 6)		(85,287	)		(71,951	)		(60,523	)		(11,011	)		-			-		(38,623	)		(56,771	)
Death Benefits (note 4)		-			(661	)		-			-			-			-		-			-
Net policy repayments (loans) (note 4)		-			-			(59,142	)		-			-			-		-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(12,197	)		(11,386	)		(49,222	)		(42,425	)		(3,821	)		-		(2,884	)		(2,435	)
Adjustments to maintain reserves		19,815			7			99			1			3			-		7			4
Net equity transactions		(440,177	)		1,057,982			(645,423	)		488,866			(382,759	)		-		(88,639	)		36,043
Net change in contract owners’ equity		(108,180	)		1,406,032			3,745			1,655,766			-			-		(68,634	)		76,120
Contract owners’ equity beginning of period		1,776,942			370,910			2,990,780			1,335,014			-			-		105,227			29,107
Contract owners’ equity end of period	$	1,668,762			1,776,942			2,994,525			2,990,780			-			-		36,593			105,227
CHANGES IN UNITS:
Beginning units		394,308			128,813			192,694			153,642			-			-		10,880			3,801
Units purchased		2,505			287,104			1,527			43,509			-			-		91			14,264
Units redeemed		(98,387	)		(21,609	)		(39,507	)		(4,457	)		-			-		(7,947	)		(7,185	)
Ending units		298,426			394,308			154,714			192,694			-			-		3,024			10,880

(Continued)

17

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	MVRISC						MVFSC						MVIVSC						MSEM
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	948			5,068			826			(38	)		16,049			(330	)		1,146			1,664
Realized gain (loss) on investments		(566	)		(50,213	)		58			(7	)		190			(221	)		1,760			(30,061	)
Change in unrealized gain (loss) on investments		8,180			160,392			7,331			1,468			163,751			(20,709	)		(337	)		33,329
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		8,562			115,247			8,215			1,423			179,990			(21,260	)		2,569			4,932
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			-			(45,944	)		-			-			(49	)
Transfers between funds		-			(371,484	)		-			77,000			500,376			1,590,045			12,718			(99,421	)
Surrenders (notes 6)		-			-			-			-			(170,058	)		-			(7,518	)		(1,760	)
Death Benefits (note 4)		-			-			-			-			-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(3,335	)		(15,177	)		(3,029	)		(481	)		(17,779	)		(1,407	)		(1,203	)		(1,076	)
Adjustments to maintain reserves		7			2			8			(1	)		46,947			(4	)		3			-
Net equity transactions		(3,328	)		(386,659	)		(3,021	)		76,518			313,542			1,588,634			4,000			(102,306	)
Net change in contract owners’ equity		5,234			(271,412	)		5,194			77,941			493,532			1,567,374			6,569			(97,374	)
Contract owners’ equity beginning of period		88,055			359,467			77,941			-			1,567,374			-			23,594			120,968
Contract owners’ equity end of period	$	93,289			88,055			83,135			77,941			2,060,906			1,567,374			30,163			23,594
CHANGES IN UNITS:
Beginning units		11,163			59,353			9,681			-			119,114			-			1,001			6,666
Units purchased		-			-			-			9,743			26,613			119,220			510			124
Units redeemed		(431	)		(48,190	)		(373	)		(62	)		(1,387	)		(106	)		(342	)		(5,789	)
Ending units		10,732			11,163			9,308			9,681			144,340			119,114			1,169			1,001

(Continued)

18

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	MSVMG						MSVRE						HIBF						GEM
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	(182	)		(250	)		13,761			19,103			137,331			177,499			(1,954	)		8,239
Realized gain (loss) on investments		17,466			(102,437	)		168,259			(344,626	)		(8,309	)		(351,998	)		(11,498	)		(50,751	)
Change in unrealized gain (loss) on investments		3,861			153,546			117,847			549,058			69,901			944,789			172,343			436,186
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		21,145			50,859			299,867			223,535			198,923			770,290			158,891			393,674
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		83			6			27,752			36,866			61,967			168,770			-			198,157
Transfers between funds		(16,631	)		(114,073	)		(691,389	)		595,729			41,679			(22,565	)		15,793			(195,963	)
Surrenders (notes 6)		(8,296	)		(2,640	)		(9,265	)		(237,997	)		(77,820	)		(999,049	)		(814	)		(1,760	)
Death Benefits (note 4)		-			(335	)		(13,417	)		(38	)		-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			(39,452	)		-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(1,574	)		(1,495	)		(47,074	)		(39,438	)		(28,622	)		(48,636	)		(21,941	)		(28,352	)
Adjustments to maintain reserves		(84	)		-			101			4			(6	)		20			10			(50	)
Net equity transactions		(26,502	)		(118,537	)		(733,292	)		355,126			(42,254	)		(901,460	)		(6,952	)		(27,968	)
Net change in contract owners’ equity		(5,357	)		(67,678	)		(433,425	)		578,661			156,669			(131,170	)		151,939			365,706
Contract owners’ equity beginning of period		74,428			142,106			1,289,066			710,405			1,560,165			1,691,335			1,006,393			640,687
Contract owners’ equity end of period	$	69,071			74,428			855,641			1,289,066			1,716,834			1,560,165			1,158,332			1,006,393
CHANGES IN UNITS:
Beginning units		7,909			23,748			57,931			40,876			94,725			149,549			40,474			41,975
Units purchased		411			554			1,965			34,781			5,831			12,601			728			674
Units redeemed		(2,759	)		(16,393	)		(30,234	)		(17,726	)		(8,206	)		(67,425	)		(1,003	)		(2,175	)
Ending units		5,561			7,909			29,662			57,931			92,350			94,725			40,199			40,474

(Continued)

19

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	GVGU1						GIG						GEF						TRF
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	138			226			388			1,024			1,136			1,358			1,429			4,678
Realized gain (loss) on investments		2,337			(55,444	)		10,624			(128,981	)		(15,458	)		(202,788	)		(3,173	)		(473,524	)
Change in unrealized gain (loss) on investments		(2,967	)		5,543			(3,056	)		146,729			32,333			238,213			27,337			533,947
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(492	)		(49,675	)		7,956			18,772			18,011			36,783			25,593			65,101
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			6,528			131			(299	)		329			(315	)		10,550			14,744
Transfers between funds		(15,661	)		53,409			(22,400	)		(141,159	)		(31,012	)		(81,503	)		(30,855	)		(450,062	)
Surrenders (notes 6)		-			(3,960	)		(3,195	)		(5,500	)		(1,070	)		-			(1,339	)		(220	)
Death Benefits (note 4)		-			-			-			(357	)		(7,547	)		(358	)		(127	)		(264	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(202	)		(2,503	)		(1,387	)		(1,891	)		(8,079	)		(9,423	)		(4,087	)		(8,514	)
Adjustments to maintain reserves		(4	)		29			(145	)		8			(27	)		10			(7	)		11
Net equity transactions		(15,867	)		53,503			(26,996	)		(149,198	)		(47,406	)		(91,589	)		(25,865	)		(444,305	)
Net change in contract owners’ equity		(16,359	)		3,828			(19,040	)		(130,426	)		(29,395	)		(54,806	)		(272	)		(379,204	)
Contract owners’ equity beginning of period		16,359			12,531			79,132			209,558			189,353			244,159			198,934			578,138
Contract owners’ equity end of period	$	-			16,359			60,092			79,132			159,958			189,353			198,662			198,934
CHANGES IN UNITS:
Beginning units		933			770			6,777			23,223			14,555			23,402			19,379			70,839
Units purchased		189			846			297			454			152			13			1,874			1,792
Units redeemed		(1,122	)		(683	)		(2,520	)		(16,900	)		(3,648	)		(8,860	)		(4,152	)		(53,252	)
Ending units		-			933			4,554			6,777			11,059			14,555			17,101			19,379

(Continued)

20

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	GVGF1						GBF						CAF						GVGH1
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	107			263			115,547			122,435			123			178			149			104
Realized gain (loss) on investments		5,893			(12,657	)		21,032			97,834			3,566			(35,378	)		9,757			(17,983	)
Change in unrealized gain (loss) on investments		(4,912	)		22,015			(96,681	)		(200,504	)		2,763			50,075			(8,957	)		31,206
Reinvested capital gains		-			-			153,539			62,048			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		1,088			9,621			193,437			81,813			6,452			14,875			949			13,327
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			704			418,068			246,431			11			(49	)		-			(1,523	)
Transfers between funds		(33,796	)		3,302			(336,311	)		(209,011	)		(5,960	)		(56,134	)		(92,515	)		(45,578	)
Surrenders (notes 6)		-			(5,720	)		(151,169	)		(815,543	)		(805	)		(220	)		-			(12,760	)
Death Benefits (note 4)		-			-			(43,388	)		(980	)		(79	)		(112	)		-			(143	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(440	)		(1,033	)		(217,932	)		(249,474	)		(1,155	)		(1,402	)		(750	)		(2,945	)
Adjustments to maintain reserves		(3	)		5			(57	)		44			(7	)		5			(4	)		11
Net equity transactions		(34,239	)		(2,742	)		(330,789	)		(1,028,533	)		(7,995	)		(57,912	)		(93,269	)		(62,938	)
Net change in contract owners’ equity		(33,151	)		6,879			(137,352	)		(946,720	)		(1,543	)		(43,037	)		(92,320	)		(49,611	)
Contract owners’ equity beginning of period		33,151			26,272			4,225,082			5,171,802			36,781			79,818			92,320			141,931
Contract owners’ equity end of period	$	-			33,151			4,087,730			4,225,082			35,238			36,781			-			92,320
CHANGES IN UNITS:
Beginning units		2,433			2,534			233,432			292,686			5,417			15,651			6,814			12,452
Units purchased		378			470			22,783			14,682			138			63			-			9
Units redeemed		(2,811	)		(571	)		(40,127	)		(73,936	)		(1,192	)		(10,297	)		(6,814	)		(5,647	)
Ending units		-			2,433			216,088			233,432			4,363			5,417			-			6,814

(Continued)

21

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	GVIX2						GVIDA						GVIDC						GVIDM
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	75,848			95,791			72			28			113			69			9,501			8,042
Realized gain (loss) on investments		(1,135,726	)		(295,916	)		1,289			(735	)		(2	)		(225	)		5,368			(120,979	)
Change in unrealized gain (loss) on investments		1,701,181			1,248,997			(535	)		1,669			187			506			38,037			217,573
Reinvested capital gains		-			-			-			167			15			23			-			16,337
Net increase (decrease) in contract owners’ equity resulting from operations		641,303			1,048,872			826			1,129			313			373			52,906			120,973
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		496			217			-			10			-			-			590			(1,149	)
Transfers between funds		(5,174,800	)		(139,033	)		3,718			1,097			1,016			(87	)		(92,787	)		146,310
Surrenders (notes 6)		1			(1,816	)		(3,217	)		(880	)		-			-			(56,894	)		(24,419	)
Death Benefits (note 4)		(29,460	)		-			-			-			-			-			(21,115	)		(6,421	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(35,571	)		(28,204	)		(158	)		(96	)		(245	)		(199	)		(34,520	)		(31,394	)
Adjustments to maintain reserves		(402	)		11			(4	)		19			2			7			38			(3,866	)
Net equity transactions		(5,239,736	)		(168,825	)		339			150			773			(279	)		(204,688	)		79,061
Net change in contract owners’ equity		(4,598,433	)		880,047			1,165			1,279			1,086			94			(151,782	)		200,034
Contract owners’ equity beginning of period		4,598,433			3,718,386			3,389			2,110			4,456			4,362			664,249			464,215
Contract owners’ equity end of period	$	-			4,598,433			4,554			3,389			5,542			4,456			512,467			664,249
CHANGES IN UNITS:
Beginning units		623,586			647,080			257			203			338			360			49,707			41,282
Units purchased		57,703			7,691			272			141			78			-			-			23,506
Units redeemed		(681,289	)		(31,185	)		(227	)		(87	)		(18	)		(22	)		(15,045	)		(15,081	)
Ending units		-			623,586			302			257			398			338			34,662			49,707

(Continued)

22

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	GVDMA						GVDMC						GVUS1						MCIF
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	794			802			115			78			5			25			55,414			33,446
Realized gain (loss) on investments		12,244			(56,223	)		775			(501	)		2,683			(3,628	)		(319,541	)		(570,947	)
Change in unrealized gain (loss) on investments		(6,244	)		58,639			(387	)		1,144			(2,218	)		5,779			1,475,951			1,900,123
Reinvested capital gains		-			1,395			-			72			-			-			6,016			134,152
Net increase (decrease) in contract owners’ equity resulting from operations		6,794			4,613			503			793			470			2,176			1,217,840			1,496,774
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			9			-			-			-			-			4,710			10,027
Transfers between funds		37,825			(63,361	)		4,454			1,483			(7,786	)		932			(47,769	)		(205,156	)
Surrenders (notes 6)		(39,982	)		(14,300	)		(3,990	)		(1,320	)		-			(220	)		(20,292	)		(149,320	)
Death Benefits (note 4)		-			-			-			-			-			-			(34,646	)		-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(1,420	)		(1,597	)		(207	)		(164	)		(119	)		(232	)		(42,806	)		(35,499	)
Adjustments to maintain reserves		6			8			(3	)		14			-			5			(233	)		22
Net equity transactions		(3,571	)		(79,241	)		254			13			(7,905	)		485			(141,036	)		(379,926	)
Net change in contract owners’ equity		3,223			(74,628	)		757			806			(7,435	)		2,661			1,076,804			1,116,848
Contract owners’ equity beginning of period		38,083			112,711			4,947			4,141			7,435			4,774			4,947,537			3,830,689
Contract owners’ equity end of period	$	41,306			38,083			5,704			4,947			-			7,435			6,024,341			4,947,537
CHANGES IN UNITS:
Beginning units		2,835			10,411			368			352			629			539			320,194			337,412
Units purchased		2,670			2			315			134			144			134			-			7,370
Units redeemed		(2,773	)		(7,578	)		(291	)		(118	)		(773	)		(44	)		(9,482	)		(24,588	)
Ending units		2,732			2,835			392			368			-			629			310,712			320,194

(Continued)

23

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	SAM						SAM5						NVMLG1					NVMLV1
	2010			2009			2010			2009			2010			2009		2010			2009
Investment activity:
Net investment income (loss)	$	(827	)		(700	)		(133,433	)		(106,565	)		(169	)		-		162			-
Realized gain (loss) on investments		-			-			-			-			(2,004	)		-		444			-
Change in unrealized gain (loss) on investments		-			-			-			-			11,761			-		917			-
Reinvested capital gains		-			-			-			-			5,190			-		1,621			-
Net increase (decrease) in contract owners’ equity resulting from operations		(827	)		(700	)		(133,433	)		(106,565	)		14,778			-		3,144			-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			17,409			79,224			53			-		-			-
Transfers between funds		-			1,853			(1,911,656	)		3,640,511			165,476			-		69,196			-
Surrenders (notes 6)		-			-			(1,731,860	)		(4,899,292	)		(27,930	)		-		(23,278	)		-
Death Benefits (note 4)		-			-			(52,467	)		(367,411	)		-			-		-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-		-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(5,669	)		(6,042	)		(802,660	)		(799,110	)		(2,080	)		-		(1,332	)		-
Adjustments to maintain reserves		(1	)		(1,852	)		(175	)		62,702			(52	)		-		6			-
Net equity transactions		(5,670	)		(6,041	)		(4,481,409	)		(2,283,376	)		135,467			-		44,592			-
Net change in contract owners’ equity		(6,497	)		(6,741	)		(4,614,842	)		(2,389,941	)		150,245			-		47,736			-
Contract owners’ equity beginning of period		334,231			340,972			57,050,435			59,440,376			-			-		-			-
Contract owners’ equity end of period	$	327,734			334,231			52,435,593			57,050,435			150,245			-		47,736			-
CHANGES IN UNITS:
Beginning units		24,495			24,937			4,949,229			5,146,690			-			-		-			-
Units purchased		-			-			87,027			434,696			19,056			-		7,472			-
Units redeemed		(416	)		(442	)		(475,520	)		(632,157	)		(3,203	)		-		(2,925	)		-
Ending units		24,079			24,495			4,560,736			4,949,229			15,853			-		4,547			-

(Continued)

24

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	NVMMG1						SCGF						SCVF						SCF
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	(51	)		(37	)		(550	)		(556	)		10,698			6,415			695			405
Realized gain (loss) on investments		1,357			1,237			(11,080	)		(90,033	)		(273,562	)		(1,157,085	)		7,034			(1,426,170	)
Change in unrealized gain (loss) on investments		3,838			3,664			64,399			138,143			1,036,974			1,624,947			486,754			2,004,256
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		5,144			4,864			52,769			47,554			774,110			474,277			494,483			578,491
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		657			1,028			39			1,133			107			3,147			4,166			12,800
Transfers between funds		(1,640	)		14,697			(6,320	)		(71,571	)		(181,465	)		70,468			37,667			(202,495	)
Surrenders (notes 6)		-			-			(20,497	)		(14,431	)		(40,868	)		(32,034	)		(228,776	)		(569,383	)
Death Benefits (note 4)		(114	)		-			-			(231	)		(1,711	)		-			(16,498	)		(9,181	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(688	)		(557	)		(6,395	)		(6,205	)		(112,069	)		(126,518	)		(93,718	)		(95,833	)
Adjustments to maintain reserves		(1	)		1			(37	)		4			327			(1	)		(283	)		(11,214	)
Net equity transactions		(1,786	)		15,169			(33,210	)		(91,301	)		(335,679	)		(84,938	)		(297,442	)		(875,306	)
Net change in contract owners’ equity		3,358			20,033			19,559			(43,747	)		438,431			389,339			197,041			(296,815	)
Contract owners’ equity beginning of period		20,033			-			225,600			269,347			3,209,642			2,820,303			2,142,964			2,439,779
Contract owners’ equity end of period	$	23,391			20,033			245,159			225,600			3,648,073			3,209,642			2,340,005			2,142,964
CHANGES IN UNITS:
Beginning units		2,520			-			17,800			27,020			163,056			180,386			111,836			171,083
Units purchased		253			3,347			141			145			408			1,756			7,194			1,227
Units redeemed		(447	)		(827	)		(2,483	)		(9,365	)		(16,713	)		(19,086	)		(21,334	)		(60,474	)
Ending units		2,326			2,520			15,458			17,800			146,751			163,056			97,696			111,836

(Continued)

25

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	MSBF						GGTC						GVUG1						EIF
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	41,727			63,547			(62	)		(283	)		(11	)		(27	)		686			514
Realized gain (loss) on investments		22,027			(99,122	)		29,313			(155,752	)		3,706			(3,617	)		2,788			(24,157	)
Change in unrealized gain (loss) on investments		10,272			170,594			(26,478	)		199,787			(2,827	)		7,382			5,221			37,505
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		74,026			135,019			2,773			43,752			868			3,738			8,695			13,862
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		(42	)		251			-			(426	)		-			-			152			(93	)
Transfers between funds		11,077			52,487			(112,736	)		(105,522	)		(12,591	)		(45,908	)		2,607			(13,124	)
Surrenders (notes 6)		(172,088	)		(9,858	)		-			-			(1	)		(220	)		(4,023	)		(1,540	)
Death Benefits (note 4)		-			(8,734	)		-			(440	)		-			-			(2,943	)		(39	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(35,750	)		(30,407	)		(418	)		(1,415	)		(193	)		(559	)		(3,261	)		(2,738	)
Adjustments to maintain reserves		(242	)		(8,623	)		-			(2	)		(4	)		12			-			6
Net equity transactions		(197,045	)		(4,884	)		(113,154	)		(107,805	)		(12,789	)		(46,675	)		(7,468	)		(17,528	)
Net change in contract owners’ equity		(123,019	)		130,135			(110,381	)		(64,053	)		(11,921	)		(42,937	)		1,227			(3,666	)
Contract owners’ equity beginning of period		807,934			677,799			110,381			174,434			11,921			54,858			55,788			59,454
Contract owners’ equity end of period	$	684,915			807,934			-			110,381			-			11,921			57,015			55,788
CHANGES IN UNITS:
Beginning units		50,310			52,365			33,965			81,631			855			4,939			5,260			7,188
Units purchased		219			1,945			862			-			223			48			323			-
Units redeemed		(11,866	)		(4,000	)		(34,827	)		(47,666	)		(1,078	)		(4,132	)		(928	)		(1,928	)
Ending units		38,663			50,310			-			33,965			-			855			4,655			5,260

(Continued)

26

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	AMTB						AVBVI						AVCDI						AVIE
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	4,756			6,841			(714	)		12,939			(9	)		(5	)		700			363
Realized gain (loss) on investments		(514	)		(6,138	)		136,660			(828	)		(88	)		(757	)		2,011			(731	)
Change in unrealized gain (loss) on investments		454			10,629			(31,810	)		34,709			759			1,560			2,414			2,842
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		4,696			11,332			104,136			46,820			662			798			5,125			2,474
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			13			-			-			(59	)		-
Transfers between funds		(976	)		(6,498	)		(1,059,409	)		921,706			1,046			173			18,802			23,480
Surrenders (notes 6)		-			-			(537	)		(220	)		-			-			(5,520	)		-
Death Benefits (note 4)		-			-			-			-			-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(4,261	)		(4,643	)		(3,784	)		(2,576	)		(147	)		(90	)		(1,682	)		(332	)
Adjustments to maintain reserves		1			9			7			20			(1	)		(5	)		6			9
Net equity transactions		(5,236	)		(11,132	)		(1,063,723	)		918,943			898			78			11,547			23,157
Net change in contract owners’ equity		(540	)		200			(959,587	)		965,763			1,560			876			16,672			25,631
Contract owners’ equity beginning of period		94,668			94,468			969,459			3,696			2,350			1,474			29,671			4,040
Contract owners’ equity end of period	$	94,128			94,668			9,872			969,459			3,910			2,350			46,343			29,671
CHANGES IN UNITS:
Beginning units		7,568			8,537			77,826			438			146			130			1,802			331
Units purchased		-			-			123			77,634			68			23			1,123			1,495
Units redeemed		(403	)		(969	)		(77,209	)		(246	)		(9	)		(7	)		(425	)		(24	)
Ending units		7,165			7,568			740			77,826			205			146			2,500			1,802

(Continued)

27

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	ALVGIA						ALVIVA						ACVB						ACVCA
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	(70	)		966			58,392			52,706			4,072			12,328			(959	)		2,321
Realized gain (loss) on investments		695			(24,104	)		(1,872,276	)		(2,799,847	)		(1,038	)		(20,618	)		4,824			(10,747	)
Change in unrealized gain (loss) on investments		2,951			25,445			1,479,710			4,645,879			23,804			38,218			102,698			116,616
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		3,576			2,307			(334,174	)		1,898,738			26,838			29,928			106,563			108,190
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		66			(147	)		86,563			119,231			-			-			-			-
Transfers between funds		2,478			(28,319	)		(4,227,780	)		(2,340,958	)		(124	)		7,205			(17,864	)		(21,163	)
Surrenders (notes 6)		(535	)		(220	)		-			(11,048	)		-			-			-			-
Death Benefits (note 4)		-			-			(29,330	)		-			-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(2,127	)		(2,161	)		(45,136	)		(65,938	)		(10,940	)		(10,708	)		(16,872	)		(16,383	)
Adjustments to maintain reserves		(2	)		11			(891	)		8			10			9			40			1
Net equity transactions		(120	)		(30,836	)		(4,216,574	)		(2,298,705	)		(11,054	)		(3,494	)		(34,696	)		(37,545	)
Net change in contract owners’ equity		3,456			(28,529	)		(4,550,748	)		(399,967	)		15,784			26,434			71,867			70,645
Contract owners’ equity beginning of period		26,488			55,017			5,519,244			5,919,211			244,137			217,703			378,193			307,548
Contract owners’ equity end of period	$	29,944			26,488			968,496			5,519,244			259,921			244,137			450,060			378,193
CHANGES IN UNITS:
Beginning units		1,964			4,917			734,796			1,059,468			19,328			19,854			21,242			23,619
Units purchased		196			56			80,852			19,746			-			438			-			-
Units redeemed		(192	)		(3,009	)		(691,871	)		(344,418	)		(849	)		(964	)		(1,940	)		(2,377	)
Ending units		1,968			1,964			123,777			734,796			18,479			19,328			19,302			21,242

(Continued)

28

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	ACVIG						ACVI						ACVU1						ACVV
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	5,378			17,304			31,660			28,359			438			219			17,357			47,849
Realized gain (loss) on investments		(16,192	)		(111,911	)		(152,833	)		(214,243	)		29,672			(69,987	)		(14,247	)		(222,337	)
Change in unrealized gain (loss) on investments		71,222			147,360			288,789			589,951			(16,410	)		118,929			110,683			361,947
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		60,408			52,753			167,616			404,067			13,700			49,161			113,793			187,459
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		1,134			4,615			2,408			632			-			52			290			2,352
Transfers between funds		(19,420	)		(1,752	)		(343,289	)		(137,511	)		(89,206	)		(43,779	)		(901	)		288,995
Surrenders (notes 6)		(7,235	)		(81,482	)		(11,192	)		(202,462	)		(25,588	)		(80,531	)		(115,089	)		(71,672	)
Death Benefits (note 4)		(1,396	)		-			(8,275	)		(559	)		-			-			(6,808	)		-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(8,840	)		(8,661	)		(46,596	)		(48,004	)		(3,903	)		(4,520	)		(31,144	)		(28,716	)
Adjustments to maintain reserves		9			19			(27	)		28			7			16			(665	)		5
Net equity transactions		(35,748	)		(87,261	)		(406,971	)		(387,876	)		(118,690	)		(128,762	)		(154,317	)		190,964
Net change in contract owners’ equity		24,660			(34,508	)		(239,355	)		16,191			(104,990	)		(79,601	)		(40,524	)		378,423
Contract owners’ equity beginning of period		434,219			468,727			1,540,281			1,524,090			141,827			221,428			926,065			547,642
Contract owners’ equity end of period	$	458,879			434,219			1,300,926			1,540,281			36,837			141,827			885,541			926,065
CHANGES IN UNITS:
Beginning units		37,991			48,311			119,188			157,362			13,825			28,954			57,418			40,598
Units purchased		208			518			2,714			87			517			240			356			35,859
Units redeemed		(2,938	)		(10,838	)		(32,824	)		(38,261	)		(11,241	)		(15,369	)		(9,245	)		(19,039	)
Ending units		35,261			37,991			89,078			119,188			3,101			13,825			48,529			57,418

(Continued)

29

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	ACVVS1						DVMCS						DVSCS						DSIF
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	(106	)		(78	)		67			439			19,901			90,485			335,795			293,887
Realized gain (loss) on investments		(1,085	)		(9,797	)		3,092			9,204			(1,341,289	)		(802,452	)		(1,948,576	)		(2,240,109	)
Change in unrealized gain (loss) on investments		11,043			17,235			(265	)		4,055			2,535,774			1,028,026			4,398,821			4,761,978
Reinvested capital gains		-			-			-			-			-			669,244			-			1,001,574
Net increase (decrease) in contract owners’ equity resulting from operations		9,852			7,360			2,894			13,698			1,214,386			985,303			2,786,040			3,817,330
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			66			-			(1	)		4,293			(376	)		142,933			287,785
Transfers between funds		8,871			1,274			(39,456	)		(8,711	)		(34,061	)		24,517			11,421,092			(1,863,454	)
Surrenders (notes 6)		(2,133	)		(1,320	)		(805	)		(220	)		(3,357	)		(15,766	)		(1,874,213	)		(590,643	)
Death Benefits (note 4)		-			-			-			-			(33,822	)		(1,522	)		(73,850	)		(7,991	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			(143,746	)		-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(1,793	)		(1,397	)		(798	)		(593	)		(39,668	)		(31,625	)		(321,755	)		(306,675	)
Adjustments to maintain reserves		8			14			-			21			(353	)		(1,479	)		(2,360	)		(7,467	)
Net equity transactions		4,953			(1,363	)		(41,059	)		(9,504	)		(106,968	)		(26,251	)		9,148,101			(2,488,445	)
Net change in contract owners’ equity		14,805			5,997			(38,165	)		4,194			1,107,418			959,052			11,934,141			1,328,885
Contract owners’ equity beginning of period		34,673			28,676			56,330			52,136			4,880,283			3,921,231			17,533,868			16,204,983
Contract owners’ equity end of period	$	49,478			34,673			18,165			56,330			5,987,701			4,880,283			29,468,009			17,533,868
CHANGES IN UNITS:
Beginning units		3,192			3,225			3,955			4,948			365,217			366,200			1,631,128			1,888,098
Units purchased		811			182			425			48			-			27,570			1,034,248			85,609
Units redeemed		(317	)		(215	)		(3,374	)		(1,041	)		(8,388	)		(28,553	)		(210,326	)		(342,579	)
Ending units		3,686			3,192			1,006			3,955			356,829			365,217			2,455,050			1,631,128

(Continued)

30

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	DSRG						DCAP						DGI						DVIV
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	231			817			6,749			8,653			1,354			1,338			14,763			37,789
Realized gain (loss) on investments		4,698			(15,498	)		(8,212	)		(284,767	)		(1,295	)		(18,165	)		(212,658	)		(257,158	)
Change in unrealized gain (loss) on investments		(276	)		32,812			60,735			309,269			24,328			45,660			232,907			486,381
Reinvested capital gains		-			-			-			28,264			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		4,653			18,131			59,272			61,419			24,387			28,833			35,012			267,012
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		5			(471	)		730			1,486			-			-			(57	)		(2,504	)
Transfers between funds		2,786			(20,481	)		76,746			137,578			1,309			3,659			58,989			(143,959	)
Surrenders (notes 6)		(13,564	)		(31,680	)		(38,390	)		(512,334	)		-			-			(175,179	)		(2,665	)
Death Benefits (note 4)		-			(114	)		-			-			-			-			-			(7,878	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(728	)		(1,139	)		(11,134	)		(12,791	)		(6,167	)		(5,575	)		(38,954	)		(39,428	)
Adjustments to maintain reserves		4			5			15			1			17			(3	)		1,121			(9,054	)
Net equity transactions		(11,497	)		(53,880	)		27,967			(386,060	)		(4,841	)		(1,919	)		(154,080	)		(205,488	)
Net change in contract owners’ equity		(6,844	)		(35,749	)		87,239			(324,641	)		19,546			26,914			(119,068	)		61,524
Contract owners’ equity beginning of period		33,990			69,739			350,753			675,394			136,834			109,920			1,006,260			944,736
Contract owners’ equity end of period	$	27,146			33,990			437,992			350,753			156,380			136,834			887,192			1,006,260
CHANGES IN UNITS:
Beginning units		3,436			9,406			27,287			64,235			14,547			15,012			56,561			69,377
Units purchased		237			11			5,802			13,337			142			269			3,526			-
Units redeemed		(1,277	)		(5,981	)		(3,459	)		(50,285	)		(637	)		(734	)		(12,226	)		(12,816	)
Ending units		2,396			3,436			29,630			27,287			14,052			14,547			47,861			56,561

(Continued)

31

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	SVSHEB					FQB						FEIP						FHIP
	2010		2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	-		5,473			20,326			33,502			608			531			3,355			2,308
Realized gain (loss) on investments		-		(93,486	)		12,690			(198,795	)		(287	)		(7,213	)		(91	)		(1,827	)
Change in unrealized gain (loss) on investments		-		117,780			2,232			78,554			5,237			14,558			2,548			9,266
Reinvested capital gains		-		-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		-		29,767			35,248			(86,739	)		5,558			7,876			5,812			9,747
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-		-			1,582			1,788			-			-			-			-
Transfers between funds		-		(13,348	)		159,191			225,851			6,916			(551	)		9,217			5,907
Surrenders (notes 6)		-		(146,009	)		(100,761	)		(222,602	)		-			-			-			-
Death Benefits (note 4)		-		-			(2,490	)		-			-			-			-			-
Net policy repayments (loans) (note 4)		-		-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		-		(3,594	)		(14,813	)		(37,227	)		(1,584	)		(1,103	)		(1,904	)		(1,225	)
Adjustments to maintain reserves		-		(2	)		(8	)		25			8			3			-			5
Net equity transactions		-		(162,953	)		42,701			(32,165	)		5,340			(1,651	)		7,313			4,687
Net change in contract owners’ equity		-		(133,186	)		77,949			(118,904	)		10,898			6,225			13,125			14,434
Contract owners’ equity beginning of period		-		133,186			423,633			542,537			30,499			24,274			33,436			19,002
Contract owners’ equity end of period	$	-		-			501,582			423,633			41,397			30,499			46,561			33,436
CHANGES IN UNITS:
Beginning units		-		22,579			25,113			38,637			2,785			2,879			2,115			1,726
Units purchased		-		37			8,915			2,209			648			-			593			481
Units redeemed		-		(22,616	)		(6,556	)		(15,733	)		(142	)		(94	)		(114	)		(92	)
Ending units		-		-			27,472			25,113			3,291			2,785			2,594			2,115

(Continued)

32

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	FAMP						FCP						FCS						FEIS
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	61,744			74,116			1,326			1,092			19,617			23,885			7,731			9,412
Realized gain (loss) on investments		(55,317	)		(401,956	)		(1,489	)		(12,988	)		162,527			(1,763,406	)		81,693			(918,085	)
Change in unrealized gain (loss) on investments		530,828			1,293,422			21,891			43,074			187,908			2,379,087			(17,525	)		1,056,295
Reinvested capital gains		21,811			5,847			61			27			1,061			636			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		559,066			971,429			21,789			31,205			371,113			640,202			71,899			147,622
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			-			104,109			223,119			1,045			4,844
Transfers between funds		202,406			(295,666	)		18,442			1,914			(147,043	)		(490,496	)		30,015			(498,429	)
Surrenders (notes 6)		-			-			-			-			(4,541	)		(470,873	)		(134,581	)		(362,715	)
Death Benefits (note 4)		-			-			-			-			(24,831	)		(1,894	)		(2,241	)		(1,589	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(151,387	)		(176,903	)		(5,718	)		(4,190	)		(63,563	)		(71,910	)		(10,019	)		(13,032	)
Adjustments to maintain reserves		258			5			19			4			(207	)		22			(141	)		2
Net equity transactions		51,277			(472,564	)		12,743			(2,272	)		(136,076	)		(812,032	)		(115,922	)		(870,919	)
Net change in contract owners’ equity		610,343			498,865			34,532			28,933			235,037			(171,830	)		(44,023	)		(723,297	)
Contract owners’ equity beginning of period		3,885,433			3,386,568			111,660			82,727			2,312,339			2,484,169			460,187			1,183,484
Contract owners’ equity end of period	$	4,495,776			3,885,433			146,192			111,660			2,547,376			2,312,339			416,164			460,187
CHANGES IN UNITS:
Beginning units		302,181			339,211			7,816			7,839			128,999			187,543			37,804			126,104
Units purchased		16,102			-			1,327			341			9,579			11,114			2,739			710
Units redeemed		(11,517	)		(37,030	)		(391	)		(364	)		(16,921	)		(69,658	)		(10,763	)		(89,010	)
Ending units		306,766			302,181			8,752			7,816			121,657			128,999			29,780			37,804

(Continued)

33

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	FGOP						FGOS						FGP						FGS
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	(1	)		16			(1,310	)		960			10			137			(669	)		172
Realized gain (loss) on investments		(122	)		(3,596	)		6,790			(16,723	)		(10,833	)		(2,992	)		(60,624	)		(357,641	)
Change in unrealized gain (loss) on investments		3,066			6,307			182,531			289,174			19,067			19,826			220,986			574,030
Reinvested capital gains		-			-			-			-			144			58			2,438			668
Net increase (decrease) in contract owners’ equity resulting from operations		2,943			2,727			188,011			273,411			8,388			17,029			162,131			217,229
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			6,849			(3	)		-			-			210			(2,520	)
Transfers between funds		4,119			(1,269	)		24,389			8,456			9,328			(423	)		(95,623	)		(260,481	)
Surrenders (notes 6)		-			-			(45,590	)		(6,795	)		(572	)		-			(55,391	)		(109,001	)
Death Benefits (note 4)		-			-			(9,155	)		(38	)		-			-			(3,431	)		-
Net policy repayments (loans) (note 4)		-			-			-			-			(40,528	)		-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(504	)		(330	)		(49,558	)		(48,065	)		(3,203	)		(2,826	)		(26,735	)		(38,972	)
Adjustments to maintain reserves		9			-			64			6			5			-			39			5
Net equity transactions		3,624			(1,599	)		(73,001	)		(46,439	)		(34,970	)		(3,249	)		(180,931	)		(410,969	)
Net change in contract owners’ equity		6,567			1,128			115,010			226,972			(26,582	)		13,780			(18,800	)		(193,740	)
Contract owners’ equity beginning of period		8,406			7,278			846,346			619,374			76,627			62,847			770,824			964,564
Contract owners’ equity end of period	$	14,973			8,406			961,356			846,346			50,045			76,627			752,024			770,824
CHANGES IN UNITS:
Beginning units		959			1,208			104,534			111,197			9,771			10,255			70,622			112,965
Units purchased		479			-			3,541			1,828			1,195			-			4			30
Units redeemed		(54	)		(249	)		(11,809	)		(8,491	)		(5,814	)		(484	)		(14,929	)		(42,373	)
Ending units		1,384			959			96,266			104,534			5,152			9,771			55,697			70,622

(Continued)

34

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	FHIS						FIGBS						FMCS						FOP
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	121,643			18,059			2,447			4,905			550			2,528			322			384
Realized gain (loss) on investments		18,601			(26,223	)		3,804			(1,259	)		1,149			(61,125	)		(1,245	)		(3,837	)
Change in unrealized gain (loss) on investments		(85,915	)		63,110			(3,746	)		5,136			243,150			305,526			4,885			8,471
Reinvested capital gains		-			-			811			215			3,223			3,775			53			55
Net increase (decrease) in contract owners’ equity resulting from operations		54,329			54,946			3,316			8,997			248,072			250,704			4,015			5,073
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		(1,856	)		4,253			-			97			54,627			70,450			-			-
Transfers between funds		1,386,634			85,370			22,521			(2,263	)		146,194			97,644			4,823			580
Surrenders (notes 6)		(47,015	)		(142,715	)		(35,461	)		(22,451	)		(57,359	)		(19,287	)		-			-
Death Benefits (note 4)		(14,889	)		(176	)		-			-			-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(18,819	)		(3,295	)		(1,519	)		(1,662	)		(23,927	)		(20,288	)		(1,219	)		(847	)
Adjustments to maintain reserves		2,252			7			2			4			11			21			7			(3	)
Net equity transactions		1,306,307			(56,556	)		(14,457	)		(26,275	)		119,546			128,540			3,611			(270	)
Net change in contract owners’ equity		1,360,636			(1,610	)		(11,141	)		(17,278	)		367,618			379,244			7,626			4,803
Contract owners’ equity beginning of period		260,927			262,537			50,114			67,392			837,616			458,372			22,722			17,919
Contract owners’ equity end of period	$	1,621,563			260,927			38,973			50,114			1,205,234			837,616			30,348			22,722
CHANGES IN UNITS:
Beginning units		22,244			32,098			4,113			6,382			63,431			48,480			1,927			1,918
Units purchased		105,811			6,375			1,704			8			12,963			24,981			459			96
Units redeemed		(6,263	)		(16,229	)		(2,839	)		(2,277	)		(5,301	)		(10,030	)		(105	)		(87	)
Ending units		121,792			22,244			2,978			4,113			71,093			63,431			2,281			1,927

(Continued)

35

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	FOS						FVSS						FTVSV2						TIF2
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	3,196			7,146			41			29			1,568			4,996			2,530			3,344
Realized gain (loss) on investments		77,521			(556,891	)		1,569			(3,946	)		47,534			1,638			13,912			(31,553	)
Change in unrealized gain (loss) on investments		(39,777	)		591,983			2,385			9,978			53,131			60,442			970			58,753
Reinvested capital gains		599			1,716			-			-			-			15,965			-			4,451
Net increase (decrease) in contract owners’ equity resulting from operations		41,539			43,954			3,995			6,061			102,233			83,041			17,412			34,995
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		822			10,715			-			114			25,052			31,550			22			1,821
Transfers between funds		(78,915	)		(178,022	)		3,664			1,376			124,925			(48,405	)		121,077			11,595
Surrenders (notes 6)		(81,294	)		(432,838	)		(1,616	)		(1,980	)		(6,386	)		(2,640	)		(90,657	)		(29,260	)
Death Benefits (note 4)		(92	)		(313	)		-			-			-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(12,288	)		(14,544	)		(658	)		(413	)		(7,490	)		(6,811	)		(7,638	)		(4,593	)
Adjustments to maintain reserves		51			4			1			8			12			2			10			26
Net equity transactions		(171,716	)		(614,998	)		1,391			(895	)		136,113			(26,304	)		22,814			(20,411	)
Net change in contract owners’ equity		(130,177	)		(571,044	)		5,386			5,166			238,346			56,737			40,226			14,584
Contract owners’ equity beginning of period		385,721			956,765			13,621			8,455			366,063			309,326			113,633			99,049
Contract owners’ equity end of period	$	255,544			385,721			19,007			13,621			604,409			366,063			153,859			113,633
CHANGES IN UNITS:
Beginning units		30,399			95,102			1,063			1,036			32,968			35,891			6,168			7,350
Units purchased		69			1,100			453			257			10,665			3,617			6,621			950
Units redeemed		(12,599	)		(65,803	)		(340	)		(230	)		(1,074	)		(6,540	)		(5,066	)		(2,132	)
Ending units		17,869			30,399			1,176			1,063			42,559			32,968			7,723			6,168

(Continued)

36

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	GVMCE						BNCAI						AMTG						AMGP
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	8,632			31,225			(874	)		(1,492	)		(457	)		(382	)		65			732
Realized gain (loss) on investments		(92,328	)		(683,910	)		69,867			(638,099	)		(1,206	)		(60,464	)		18,679			(76,125	)
Change in unrealized gain (loss) on investments		576,724			1,243,366			10,727			842,573			52,820			95,714			(2,632	)		109,080
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		493,028			590,681			79,720			202,982			51,157			34,868			16,112			33,687
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		8			(1,640	)		35			(1,662	)		-			-			375			414
Transfers between funds		(10,322	)		(314,338	)		(185,131	)		(636,636	)		884			(18,044	)		(47,354	)		(120,154	)
Surrenders (notes 6)		(410,008	)		(41,422	)		(12,803	)		(42,471	)		-			-			(805	)		(220	)
Death Benefits (note 4)		-			(6,905	)		-			(1,783	)		-			-			-			(380	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(40,846	)		(39,348	)		(8,461	)		(12,102	)		(8,019	)		(7,248	)		(1,869	)		(2,270	)
Adjustments to maintain reserves		(2,243	)		(4,068	)		24			15			13			6			1			2
Net equity transactions		(463,411	)		(407,721	)		(206,336	)		(694,639	)		(7,122	)		(25,286	)		(49,652	)		(122,608	)
Net change in contract owners’ equity		29,617			182,960			(126,616	)		(491,657	)		44,035			9,582			(33,540	)		(88,921	)
Contract owners’ equity beginning of period		2,232,331			2,049,371			404,683			896,340			170,340			160,758			107,326			196,247
Contract owners’ equity end of period	$	2,261,948			2,232,331			278,067			404,683			214,375			170,340			73,786			107,326
CHANGES IN UNITS:
Beginning units		125,459			152,977			25,002			76,410			18,553			22,768			8,551			20,227
Units purchased		4,532			3,044			108			83			77			-			302			66
Units redeemed		(28,038	)		(30,562	)		(11,483	)		(51,491	)		(807	)		(4,215	)		(3,901	)		(11,742	)
Ending units		101,953			125,459			13,627			25,002			17,823			18,553			4,952			8,551

(Continued)

37

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	AMCG						AMTP						AMFAS						OVMS
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	(2,772	)		(792	)		1,356			9,872			(16	)		(13	)		3,446			(694	)
Realized gain (loss) on investments		(218,795	)		(238,469	)		63,074			26,933			118			(7,372	)		(11,486	)		(70,720	)
Change in unrealized gain (loss) on investments		(30,840	)		314,550			4,823			148,588			1,220			7,785			44,729			122,680
Reinvested capital gains		-			-			-			49,597			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(252,407	)		75,289			69,253			234,990			1,322			400			36,689			51,266
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		395			(77	)		158			265			-			-			-			-
Transfers between funds		209,328			(82,506	)		(146,501	)		(144,587	)		1,986			(7,674	)		(707	)		12,615
Surrenders (notes 6)		(18,166	)		(195,549	)		(23,165	)		(104,721	)		-			-			-			-
Death Benefits (note 4)		(7,948	)		(466	)		(3,533	)		(338	)		-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(20,342	)		(10,503	)		(12,587	)		(12,383	)		(403	)		(430	)		(13,513	)		(13,144	)
Adjustments to maintain reserves		109			(5	)		37			(1	)		12			8			23			(2	)
Net equity transactions		163,376			(289,106	)		(185,591	)		(261,765	)		1,595			(8,096	)		(14,197	)		(531	)
Net change in contract owners’ equity		(89,031	)		(213,817	)		(116,338	)		(26,775	)		2,917			(7,696	)		22,492			50,735
Contract owners’ equity beginning of period		257,382			471,199			516,764			543,539			5,080			12,776			299,932			249,197
Contract owners’ equity end of period	$	168,351			257,382			400,426			516,764			7,997			5,080			322,424			299,932
CHANGES IN UNITS:
Beginning units		17,388			41,787			41,218			67,495			454			1,398			29,268			29,567
Units purchased		-			37			721			529			180			14			-			1,185
Units redeemed		(8,556	)		(24,436	)		(14,257	)		(26,806	)		(35	)		(958	)		(1,334	)		(1,484	)
Ending units		8,832			17,388			27,682			41,218			599			454			27,934			29,268

(Continued)

38

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	OVGR						OVB						OVGS						OVGI
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	(872	)		2,960			4,345			(619	)		27,352			39,126			961			1,485
Realized gain (loss) on investments		(90,085	)		(309,786	)		(8,903	)		(92,433	)		(258,812	)		(399,083	)		(3,850	)		(9,861	)
Change in unrealized gain (loss) on investments		265,218			1,237,846			33,849			119,872			482,267			926,459			20,213			36,861
Reinvested capital gains		-			-			-			-			-			41,718			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		174,261			931,020			29,291			26,820			250,807			608,220			17,324			28,485
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		891			861			-			-			-			-			-			131
Transfers between funds		(427,779	)		(792,878	)		(1,941	)		(5,347	)		(379,141	)		(188,349	)		8,521			6,381
Surrenders (notes 6)		(183,820	)		(37,191	)		-			-			(295,342	)		-			(10,332	)		(8,800	)
Death Benefits (note 4)		(2,707	)		(1,041	)		-			-			-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(46,248	)		(61,944	)		(12,387	)		(11,771	)		(21,179	)		(25,067	)		(2,566	)		(2,231	)
Adjustments to maintain reserves		4,610			21			-			2			(4,274	)		12			-			2
Net equity transactions		(655,053	)		(892,172	)		(14,328	)		(17,116	)		(699,936	)		(213,404	)		(4,377	)		(4,517	)
Net change in contract owners’ equity		(480,792	)		38,848			14,963			9,704			(449,129	)		394,816			12,947			23,968
Contract owners’ equity beginning of period		2,499,287			2,460,439			265,307			255,603			2,193,310			1,798,494			110,059			86,091
Contract owners’ equity end of period	$	2,018,495			2,499,287			280,270			265,307			1,744,181			2,193,310			123,006			110,059
CHANGES IN UNITS:
Beginning units		186,596			264,810			27,417			28,881			167,720			191,747			11,200			11,211
Units purchased		929			549			-			-			1,138			334			777			1,267
Units redeemed		(49,450	)		(78,763	)		(1,356	)		(1,464	)		(53,556	)		(24,361	)		(1,169	)		(1,278	)
Ending units		138,075			186,596			26,061			27,417			115,302			167,720			10,808			11,200

(Continued)

39

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	OVAG						PMVAAA						PMVFBA					PMVLDA
	2010			2009			2010			2009			2010			2009		2010			2009
Investment activity:
Net investment income (loss)	$	(702	)		(646	)		39,131			2,530			1,360			-		14,384			28,961
Realized gain (loss) on investments		(11,165	)		(191,761	)		165,770			15			(19	)		-		31,566			(25,386	)
Change in unrealized gain (loss) on investments		83,998			259,479			(4,037	)		6,063			(21,164	)		-		8,383			54,633
Reinvested capital gains		-			-			-			-			3,449			-		2,989			59,169
Net increase (decrease) in contract owners’ equity resulting from operations		72,131			67,072			200,864			8,608			(16,374	)		-		57,322			117,377
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		1,001			1,680			12,343			5,792			-			-		384			1,724
Transfers between funds		19,071			(11,333	)		(162,255	)		11,158			450,000			-		103,629			(44,255	)
Surrenders (notes 6)		(15,978	)		(113,344	)		(36,021	)		(16,500	)		-			-		(83,752	)		(29,791	)
Death Benefits (note 4)		(7,699	)		(157	)		-			-			-			-		-			(4,507	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-		-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(12,213	)		(10,850	)		(8,446	)		(822	)		(402	)		-		(35,068	)		(20,812	)
Adjustments to maintain reserves		68			10			(12,224	)		10			(25	)		-		20			(38	)
Net equity transactions		(15,750	)		(133,994	)		(206,603	)		(362	)		449,573			-		(14,787	)		(97,679	)
Net change in contract owners’ equity		56,381			(66,922	)		(5,739	)		8,246			433,199			-		42,535			19,698
Contract owners’ equity beginning of period		270,957			337,879			38,806			30,560			-			-		1,320,376			1,300,678
Contract owners’ equity end of period	$	327,338			270,957			33,067			38,806			433,199			-		1,362,911			1,320,376
CHANGES IN UNITS:
Beginning units		28,425			46,886			2,845			2,717			-			-		99,496			110,787
Units purchased		1,847			252			39			1,530			36,090			-		6,930			21,237
Units redeemed		(3,264	)		(18,713	)		(735	)		(1,402	)		(33	)		-		(8,641	)		(32,528	)
Ending units		27,008			28,425			2,149			2,845			36,057			-		97,785			99,496

(Continued)

40

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	PMVRRA						PMVTRA						PIHYB1						ROCMC
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	55,893			98,897			367,154			681,783			1,484			18,357			41,940			(4,286	)
Realized gain (loss) on investments		72,361			74,139			691,519			245,346			3,290			74,145			(160,014	)		(777,521	)
Change in unrealized gain (loss) on investments		183,426			263,964			(272,054	)		371,211			290			7,542			765,800			1,565,510
Reinvested capital gains		42,779			185,597			487,996			428,756			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		354,459			622,597			1,274,615			1,727,096			5,064			100,044			647,726			783,703
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		17,098			28,060			6,081			10,408			-			450			27,079			29,360
Transfers between funds		(5,816	)		1,062,198			1,561,199			2,157,068			18,112			(83,391	)		479,489			(314,644	)
Surrenders (notes 6)		(102,428	)		(45,100	)		(3,043,370	)		(67,764	)		(13,365	)		(4,400	)		(196,697	)		(1,582	)
Death Benefits (note 4)		-			-			(59,664	)		(30,969	)		-			-			-			(7,312	)
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(72,210	)		(60,690	)		(166,159	)		(139,542	)		(1,013	)		(1,728	)		(63,331	)		(57,368	)
Adjustments to maintain reserves		656			(603	)		15			(1,814	)		-			12			(354	)		(11,908	)
Net equity transactions		(162,700	)		983,865			(1,701,898	)		1,927,387			3,734			(89,057	)		246,186			(363,454	)
Net change in contract owners’ equity		191,759			1,606,462			(427,283	)		3,654,483			8,798			10,987			893,912			420,249
Contract owners’ equity beginning of period		4,625,585			3,019,123			15,689,317			12,034,834			20,384			9,397			2,030,531			1,610,282
Contract owners’ equity end of period	$	4,817,344			4,625,585			15,262,034			15,689,317			29,182			20,384			2,924,443			2,030,531
CHANGES IN UNITS:
Beginning units		306,080			235,840			1,012,959			884,252			1,149			848			95,550			119,458
Units purchased		12,076			100,481			65,806			179,000			947			716			19,607			1,978
Units redeemed		(22,565	)		(30,241	)		(165,789	)		(50,293	)		(699	)		(415	)		(9,003	)		(25,886	)
Ending units		295,591			306,080			912,976			1,012,959			1,397			1,149			106,154			95,550

(Continued)

41

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	TREI2						TRMCG2						TRNAG1						VWBF
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	33,226			31,292			(3,160	)		(2,870	)		(434	)		(2,313	)		16,625			18,317
Realized gain (loss) on investments		(162,741	)		(945,526	)		(29,074	)		(375,621	)		103,425			(531,219	)		(4,481	)		(10,293	)
Change in unrealized gain (loss) on investments		441,641			1,369,475			261,144			806,503			(4,332	)		933,131			8,058			17,153
Reinvested capital gains		-			-			62,365			1,405			12,352			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		312,126			455,241			291,275			429,417			111,011			399,599			20,202			25,177
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		61			(2,224	)		13			(1,746	)		335			1,495			-			-
Transfers between funds		381,537			(523,558	)		(65,510	)		(109,971	)		(113,902	)		(871,249	)		(138,223	)		(620	)
Surrenders (notes 6)		(308,529	)		(129,855	)		(302,063	)		(11,228	)		(68,656	)		(35,836	)		-			-
Death Benefits (note 4)		-			(7,094	)		-			(11,995	)		-			(6,687	)		-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(45,330	)		(49,780	)		(62,103	)		(54,525	)		(18,851	)		(23,264	)		(18,968	)		(24,152	)
Adjustments to maintain reserves		(6,363	)		(7,721	)		(937	)		(16,316	)		(247	)		(5,577	)		4			12
Net equity transactions		21,376			(720,232	)		(430,600	)		(205,781	)		(201,321	)		(941,118	)		(157,187	)		(24,760	)
Net change in contract owners’ equity		333,502			(264,991	)		(139,325	)		223,636			(90,310	)		(541,519	)		(136,985	)		417
Contract owners’ equity beginning of period		2,146,599			2,411,590			1,306,901			1,083,265			691,209			1,232,728			497,367			496,950
Contract owners’ equity end of period	$	2,480,101			2,146,599			1,167,576			1,306,901			600,899			691,209			360,382			497,367
CHANGES IN UNITS:
Beginning units		148,663			208,667			63,884			76,782			54,891			146,246			27,754			29,316
Units purchased		22,700			66			-			112			-			422			-			-
Units redeemed		(21,296	)		(60,070	)		(19,106	)		(13,010	)		(14,909	)		(91,777	)		(8,770	)		(1,562	)
Ending units		150,067			148,663			44,778			63,884			39,982			54,891			18,984			27,754

(Continued)

42

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	VWEM						VWHA						WRGP						WRRESP
	2010			2009			2010			2009			2010			2009			2010			2009
Investment activity:
Net investment income (loss)	$	12,435			(1,886	)		(585	)		228			13			5			84			81
Realized gain (loss) on investments		135,017			(597,170	)		34,149			(315,246	)		243			(328	)		158			(5,452	)
Change in unrealized gain (loss) on investments		364,718			1,643,736			243,233			406,050			258			913			1,203			5,367
Reinvested capital gains		-			100,108			-			2,300			-			74			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		512,170			1,144,788			276,797			93,332			514			664			1,445			(4	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		(18,444	)		(3,566	)		(27,960	)		(9,562	)		-			-			-			(819	)
Transfers between funds		(251,388	)		1,172,897			1,421,161			(236,966	)		971			1,715			815			(1,950	)
Surrenders (notes 6)		(175,186	)		(134,459	)		(60,290	)		(10,560	)		(535	)		(440	)		-			-
Death Benefits (note 4)		(12,409	)		(634	)		-			(587	)		-			-			-			-
Net policy repayments (loans) (note 4)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(55,120	)		(39,965	)		(9,254	)		(5,983	)		(140	)		(99	)		(241	)		(210	)
Adjustments to maintain reserves		19,609			78			32,570			23			7			3			4			2
Net equity transactions		(492,938	)		994,351			1,356,227			(263,635	)		303			1,179			578			(2,977	)
Net change in contract owners’ equity		19,232			2,139,139			1,633,024			(170,303	)		817			1,843			2,023			(2,981	)
Contract owners’ equity beginning of period		3,163,036			1,023,897			191,962			362,265			2,793			950			4,321			7,302
Contract owners’ equity end of period	$	3,182,268			3,163,036			1,824,986			191,962			3,610			2,793			6,344			4,321
CHANGES IN UNITS:
Beginning units		125,304			86,252			5,862			17,384			225			97			440			917
Units purchased		2,123			47,861			39,108			116			83			177			85			-
Units redeemed		(27,788	)		(8,809	)		(1,739	)		(11,638	)		(49	)		(49	)		(21	)		(477	)
Ending units		99,639			125,304			43,231			5,862			259			225			504			440

(Continued)

43

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	SVDF						SVOF						WIEP					WVCP
	2010			2009			2010			2009			2010		2009			2010		2009
Investment activity:
Net investment income (loss)	$	(57	)		(35	)		1,921			(1,434	)		-		17,210			-		6,198
Realized gain (loss) on investments		232			(1,454	)		(48,970	)		(177,399	)		-		(47,382	)		-		(160,325	)
Change in unrealized gain (loss) on investments		7,370			6,497			115,205			422,051			-		64,609			-		226,890
Reinvested capital gains		-			-			-			-			-		-			-		-
Net increase (decrease) in contract owners’ equity resulting from operations		7,545			5,008			68,156			243,218			-		34,437			-		72,763
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			4			-		15			-		-
Transfers between funds		6,067			(980	)		(360,861	)		(291,649	)		-		(166,314	)		-		(371,100	)
Surrenders (notes 6)		-			-			(6,155	)		(5,280	)		-		(383	)		-		-
Death Benefits (note 4)		-			-			-			-			-		-			-		-
Net policy repayments (loans) (note 4)		-			-			-			-			-		-			-		-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(978	)		(661	)		(4,478	)		(13,637	)		-		(9,400	)		-		(8,012	)
Adjustments to maintain reserves		11			2			11			9			-		11			-		2
Net equity transactions		5,100			(1,639	)		(371,483	)		(310,553	)		-		(176,071	)		-		(379,110	)
Net change in contract owners’ equity		12,645			3,369			(303,327	)		(67,335	)		-		(141,634	)		-		(306,347	)
Contract owners’ equity beginning of period		16,007			12,638			455,207			522,542			-		141,634			-		306,347
Contract owners’ equity end of period	$	28,652			16,007			151,880			455,207			-		-			-		-
CHANGES IN UNITS:
Beginning units		886			979			36,207			61,250			-		15,749			-		47,447
Units purchased		336			-			1,090			1			-		611			-		1,741
Units redeemed		(49	)		(93	)		(27,511	)		(25,044	)		-		(16,360	)		-		(49,188	)
Ending units		1,173			886			9,786			36,207			-		-			-		-

(Continued)

44

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2010 and 2009

	BF					SGRF					WGIP
	2010		2009			2010		2009			2010		2009
Investment activity:
Net investment income (loss)	$	-		1,593			-		(31	)		-		1,060
Realized gain (loss) on investments		-		(77,331	)		-		(45,220	)		-		(29,636	)
Change in unrealized gain (loss) on investments		-		71,349			-		41,271			-		36,806
Reinvested capital gains		-		-			-		-			-		-
Net increase (decrease) in contract owners’ equity resulting from operations		-		(4,389	)		-		(3,980	)		-		8,230
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-		36,228			-		-			-		(2,805	)
Transfers between funds		-		(170,792	)		-		(53,434	)		-		(53,023	)
Surrenders (notes 6)		-		-			-		-			-		(4,182	)
Death Benefits (note 4)		-		-			-		-			-		(77	)
Net policy repayments (loans) (note 4)		-		-			-		-			-		-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		-		(39,306	)		-		(494	)		-		(478	)
Adjustments to maintain reserves		-		12			-		5			-		2,790
Net equity transactions		-		(173,858	)		-		(53,923	)		-		(57,775	)
Net change in contract owners’ equity		-		(178,247	)		-		(57,903	)		-		(49,545	)
Contract owners’ equity beginning of period		-		178,247			-		57,903			-		49,545
Contract owners’ equity end of period	$	-		-			-		-			-		-
CHANGES IN UNITS:
Beginning units		-		18,652			-		7,172			-		4,864
Units purchased		-		6,115			-		-			-		-
Units redeemed		-		(24,767	)		-		(7,172	)		-		(4,864	)
Ending units		-		-			-		-			-		-

See accompanying notes to financial statements.

45

NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS December 31, 2010

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VL Separate Account-C (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life and Annuity 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 Company offers Corporate Flexible Premium Variable Life Insurance Policies through the Account. The primary distribution for the contracts is through wholesalers and brokers.

(b) The Contracts

Only contracts with a front-end sales charge and certain other fees are 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:

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)*

BLACKROCK FUNDS

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

CALVERT FUNDS

Variable Series, Inc.-Social Equity Portfolio (CVSSE)

CREDIT SUISSE ASSET MANAGEMENT

Credit Suisse Trust- International Equity Flex III Portfolio (CSIEF3)

U.S. Equity Flex I Portfolio (WSCP)

DAVIS FUNDS

Variable Account Fund, Inc.-Value Portfolio (DAVVL)*

FIDELITY INVESTMENTS

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

J.P. MORGAN INVESTMENT MANAGEMENT INC.

Insurance Trust-Insurance Trust Diversified Mid Cap Growth Portfolio 1 (OGGO)

Insurance Trust-Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)*

JANUS FUNDS

Janus Aspen Series-Balanced Portfolio-Service Shares (JABS)

Janus Aspen Series-Forty Portfolio-Service Shares (JACAS)

Janus Aspen Series-Global Technology Portfolio-Service Shares (JAGTS)

Janus Aspen Series-Overseas Portfolio-Service Shares (JAIGS)

Janus Aspen Series-Perkins Mid Cap Value Portfolio-Service Shares (JAMVS)*

LAZARD FUNDS

Retirement Emerging Markets Equity Portfolio-Service Shares (LZREMS)*

LORD ABBETT FUNDS

Series Fund-Mid Cap Value Portfolio-Class VC (LOVMCV)

MASSACHUSETTS FINANCIAL SERVICES CO.

Research International Series-Service Class (MVRISC)

Value Series-Service Class (MVFSC)

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

MORGAN STANLEY

Emerging Markets Debt Portfolio-Class I (MSEM)

Mid Cap Growth Portfolio-Class I (MSVMG)

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

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

NATIONWIDE FUNDS GROUP

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

Gartmore NVIT Emerging Markets Fund-Class I (GEM)

Gartmore NVIT International Equity Fund-Class I (GIG)

Gartmore NVIT Worldwide Leaders Fund-Class I (GEF)

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 Fund-Class I (TRF)

NVIT Government Bond Fund-Class I (GBF)

NVIT Growth Fund-Class I (CAF)

NVIT International Index Fund-Class II (GVIX2)*

NVIT Investor Destinations Aggressive Fund-Class II (GVIDA)

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 Money Market Fund-Class I (SAM)

NVIT Money Market Fund-Class V (SAM5)

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 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)*

(Continued)

46

NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS December 31, 2010

Van Kampen NVIT Comstock Value Fund-Class I (EIF)

Van Kampen NVIT Real Estate Fund-Class I (NVRE1)*

NEUBERGER & BERMAN MANAGEMENT, INC.

Advisers Management Trust-Short Duration Bond Portfolio-I Class Shares (AMTB)

PIMCO FUNDS

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

PORTFOLIOS OF THE AIM VARIABLE INSURANCE FUNDS

V.I. Basic Value Fund-Series I (AVBVI)

V.I. Capital Development Fund-Series I (AVCDI)

V.I. High Yield Fund-Series I (AVHY1)*

V.I. International Growth Fund-Series I (AVIE)

V.I. Mid Cap Core Equity Fund-Series I (AVMCCI)*

PORTFOLIOS OF THE ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

VPS Growth and Income Portfolio-Class A (ALVGIA)

VPS International Value Portfolio-Class A (ALVIVA)

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

PORTFOLIOS OF THE AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

VP Balanced Fund-Class I (ACVB)

VP Capital Appreciation Fund-Class I (ACVCA)

VP Income & Growth Fund-Class I (ACVIG)

VP International Fund-Class I (ACVI)

VP Mid Cap Value Fund-Class I (ACVMV1)*

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

VP Value Fund-Class I (ACVV)

VP Vista(SM) Fund-Class I (ACVVS1)

PORTFOLIOS OF THE DREYFUS INVESTMENT PORTFOLIOS

MidCap Stock Portfolio-Initial Shares (DVMCS)

Small Cap Stock Index Portfolio-Service Shares (DVSCS)

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

The Dreyfus Socially Responsible Growth Fund, Inc.-Initial Shares (DSRG)

PORTFOLIOS OF THE DREYFUS VARIABLE INVESTMENT FUND

Appreciation Portfolio-Initial Shares (DCAP)

Growth and Income Portfolio-Initial Shares (DGI)

International Value Portfolio-Initial Shares (DVIV)

PORTFOLIOS OF THE DWS INVESTMENTS VARIABLE INSURANCE TRUST

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

Variable Series II-Strategic Value VIP-Class B (SVSHEB)*

PORTFOLIOS OF THE FEDERATED INSURANCE SERIES

Quality Bond Fund II-Primary Shares (FQB)

PORTFOLIOS OF THE FIDELITY(R) VARIABLE INSURANCE PRODUCTS

Equity-Income Portfolio-Initial Class (FEIP)

High Income Portfolio-Initial Class (FHIP)

VIP Fund-Asset Manager Portfolio-Initial Class (FAMP)

VIP Fund-Contrafund Portfolio-Initial Class (FCP)

VIP Fund-Contrafund Portfolio-Service Class (FCS)

VIP Fund-Equity-Income Portfolio-Service Class (FEIS)

VIP Fund-Freedom Fund 2020 Portfolio-Service Class (FF20S)*

VIP Fund-Freedom Fund 2030 Portfolio-Service Class (FF30S)*

VIP Fund-Growth Opportunities Portfolio-Initial Class (FGOP)

VIP Fund-Growth Opportunities Portfolio-Service Class (FGOS)

VIP Fund-Growth Portfolio-Initial Class (FGP)

VIP Fund-Growth Portfolio-Service Class (FGS)

VIP Fund-High Income Portfolio-Service Class (FHIS)

VIP Fund-Investment Grade Bond Portfolio-Service Class (FIGBS)

VIP Fund-Mid Cap Portfolio-Service Class (FMCS)

VIP Fund-Overseas Portfolio-Initial Class (FOP)

VIP Fund-Overseas Portfolio-Service Class (FOS)

VIP Fund-Value Strategies Portfolio-Service Class (FVSS)

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

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

PORTFOLIOS OF THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Franklin Small Cap Value Securities Fund-Class 2 (FTVSV2)

Templeton Foreign Securities Fund-Class 2 (TIF2)

Templeton Global Bond Securities Fund-Class 2 (FTVGI2)*

PORTFOLIOS OF THE GOLDMAN SACHS VARIABLE INSURANCE TRUST

Goldman Sachs VIT-Goldman Sachs Mid Cap Value Fund-Institutional Shares (GVMCE)

PORTFOLIOS OF THE LEGG MASON PARTNERS VARIABLE EQUITY TRUST

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

PORTFOLIOS OF THE LINCOLN VARIABLE INSURANCE PRODUCTS TRUST

Lincoln VIP Trust-Baron Growth Opportunities Funds-Service Class (BNCAI)

PORTFOLIOS OF THE NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST

Growth Portfolio-I Class Shares (AMTG)

Guardian Portfolio-I Class Shares (AMGP)

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

Partners Portfolio-I Class Shares (AMTP)

Regency Portfolio-I Class Shares (AMRI)*

Small-Cap Growth Portfolio-S Class Shares (AMFAS)

PORTFOLIOS OF THE OPPENHEIMER VARIABLE ACCOUNT FUNDS

Balanced Fund/VA-Non-Service Shares (OVMS)

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

Core Bond Fund/VA-Non-Service Shares (OVB)

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

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

MidCap Fund/VA-Non-Service Shares (OVAG)

(Continued)

47

NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS December 31, 2010

PORTFOLIOS OF THE PIMCO VARIABLE INSURANCE TRUST

All Asset Portfolio-Administrative Class (PMVAAA)

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

Low Duration Portfolio-Administrative Class (PMVLDA)

Real Return Portfolio-Administrative Class (PMVRRA)

Total Return Portfolio-Administrative Class (PMVTRA)

PORTFOLIOS OF THE PIONEER VARIABLE CONTRACTS TRUST

Variable Contracts Trust-Emerging Markets VCT Portfolio-Class I Shares (PIVEMI)*

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

PORTFOLIOS OF THE PUTNAM VARIABLE TRUST

Putnam VT Small Cap Value Fund-IB Shares (PVTSCB)*

PORTFOLIOS OF THE VAN KAMPEN-THE UNIVERSAL INSTITUTIONAL FUNDS, INC.

Global Real Estate Portfolio-Class II (VKVGR2)*

PORTFOLIOS OF THE VAN KAMPEN LIFE INVESTMENT TRUST

Growth and Income Portfolio-Class I (ACGI)*

ROYCE CAPITAL FUNDS

Micro-Cap Portfolio-Investment Class (ROCMC)

T. ROWE PRICE

Equity Income Portfolio-II (TREI2)

Limited-Term Bond Portfolio (TRLT1)*

Mid-Cap Growth Portfolio-II (TRMCG2)

New America Growth Portfolio (TRNAG1)

Personal Strategy Balanced Portfolio (TRPSB1)*

VAN ECK ASSOCIATES CORPORATION

Worldwide Insurance Trust-Worldwide Bond Fund-Initial Class (VWBF)

Worldwide Insurance Trust-Worldwide Emerging Markets Fund-Initial Class (VWEM)

Worldwide Insurance Trust-Worldwide Hard Assets Fund-Initial Class (VWHA)

WADDELL & REED, INC.

Ivy Fund Variable Insurance Portfolios, Inc.-Asset Strategy (WRASP)*

Ivy Fund Variable Insurance Portfolios, Inc.-Growth (WRGP)

Ivy Fund Variable Insurance Portfolios, Inc.-Real Estate Securities (WRRESP)

Ivy Fund Variable Insurance Portfolios, Inc.-Science and Technology (WRSTP)*

WELLS FARGO FUNDS

Advantage Funds Variable Trust-VT Discovery Fund (SVDF)

Advantage Funds Variable Trust-VT Opportunity Fund (SVOF)

Advantage Funds Variable Trust-VT Small Cap Growth Fund (WFVSCG)*

* At December 31, 2010, 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 or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

Some of the underlying mutual funds have been established by investment advisers which manage publicly traded mutual funds having similar names and investment objectives. While some of the underlying mutual funds may be similar to, and may in fact be modeled after, publicly traded mutual funds, the underlying mutual funds are not otherwise directly related to any publicly traded mutual fund. Consequently, the investment performance of publicly traded mutual funds and any corresponding underlying mutual funds may differ substantially.

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, 2010 of such funds, which represents fair value. 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

In September 2006, the FASB issued FASB ASC 820, Fair Value Measurements and Disclosures (SFAS No. 157, Fair Value Measurements). FASB ASC 820 provides enhanced guidance for using fair value to measure assets and liabilities and requires new disclosures about fair value measurements and also provides guidance regarding the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on earnings. For assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to initial recognition, the reporting entity shall disclose information that enables financial statement users to assess the inputs used to develop those measurements. FASB ASC 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances.

FASB ASC 820 was effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, with early adoption permitted. The Account adopted FASB ASC 820 effective January 1, 2008. The adoption of FASB ASC 820 did not have a material impact on the Account’s financial position or results of operations.

(Continued)

48

NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTSDecember 31, 2010

In September 2009 the FASB issued ASU 2009-12, which amends FASB ASC 820, Fair Value Measurements and Disclosures. This guidance applies to reporting entities that hold an investment that is required or permitted to be measured or disclosed at fair value on a recurring or nonrecurring basis if the investment does not have a readily determinable fair value and the investee has attributes of an investment company. For these investments, this update allows, as a practical expedient, the use of net asset value (NAV) as the basis to estimate fair value as long as it is not probable, as of the measurement date that the investment will be sold and NAV is not the value that will be used in the sale. The NAVs must be calculated consistent with the American Institute of Certified Public Accountants Audit and Accounting Guide, Investment Companies, which generally requires these investments to be measured at fair value. Additionally, the guidance provided updated disclosures for investments within its scope and noted that if the investor can redeem the investment with the investee on the measurement date at NAV, the investment should likely be classified as Level 2 in the fair value hierarchy. Investments that cannot be redeemed with the investee at NAV would generally be classified as Level 3 in the fair value hierarchy. If the investment is not redeemable with the investee on the measurement date, but will be at a future date, the length of time until the investment is redeemable should be considered in determining classification as Level 2 or 3. This guidance is effective for interim and annual periods ending after December 15, 2009 with early adoption permitted. The Account adopted this guidance effective the period ending December 31, 2009. The adoption of this guidance did not have a material impact on the financial statements of the Account.

In January 2010, the FASB issued ASU 2010-06, which amends FASB ASC 820, Fair Value Measurement and Disclosures. This guidance requires new disclosures and provides amendments to clarify existing disclosures. The new requirements include disclosing transfers in and out of Levels 1 and 2 fair value measurements, the reasons for the transfers, and further disaggregating activity in level 3 fair value measurements. The clarification of existing disclosure guidance includes further disaggregation of fair value measurement disclosures for each class of assets and liabilities and providing disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2009, except for the new disclosures regarding the activity in Level 3 measurements, which shall be effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2010, except for the new disclosure regarding the activity in Level 3 measurements, which the Company will adopt for the fiscal period beginning January 1, 2011.

(g) Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued with the SEC.

(2) Policy Charges

(a) Deductions from Premium

The Company deducts a charge to cover the payment of premium taxes and some sale expenses not to exceed the following percentages of each premium received:

• For policies with applications signed on or after January 3, 2006, 8.5% (reduced to 5.5% at the beginning of the eighth policy year, then 3.5% at the beginning of the eleventh policy year).

• For policies issued on and after September 9, 2002 with applications signed before January 3, 2006, 9.0% (reduced to 5.5% at the beginning of the eighth policy year, then 3.5% at the beginning of the eleventh policy year).

• For policies issued prior to September 9, 2002, 9.0% (reduced to 3.5% at the beginning of the eighth policy year).

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 the periods ended December 31, 2010 and 2009, total front-end sales charge deductions were $45,560 and $67,209, respectively and were recognized as a reduction of purchase payments on the Statement 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

The Company deducts a monthly administrative expense charge to recover policy maintenance, accounting, record keeping and other administrative expenses. This expense is assessed against each contract by liquidating units. Currently, this charge is $5.00 per month in all policy years (not to exceed $10.00 per month).

(3) Asset Charges

The Company deducts a charge related to the assumption of mortality and expense risk.

For corporate flexible premium contracts, the Company deducts a charge guaranteed not to exceed an annualized rate of 0.75% of the policy’s cash value.

On a current basis, this charge varies based on when the policy was issued and reduces based on how long the policy has been in force for most issues:

• For policies with applications signed on or after January 3, 2006:

Charge for policy years 1-4	Charge for policy years 5-15	Charge for policy years 16+
0.25% of daily net assets	0.20% of daily net assets	0.10% of daily net assets

• For policies with applications signed before January 3, 2006:

Charge for policy years 1-4	Charge for policy years 5-20	Charge for policy years 21+
0.40% of daily net assets	0.25% of daily net assets	0.10% of daily net assets

A reduced fee tier rate for corporate flexible premium contracts may apply as either 0.10%, 0.20% or 0.25% for all policy years. These charges are assessed through a reduction in the unit value. 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.

(Continued)

49

NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS December 31, 2010

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow 90% of a policy’s non-loaned sub-account cash value. Interest is charged on the outstanding loan and is due and payable in advance on the policy anniversary, or when the loan is repaid or a new loan is effective. The interest rate is guaranteed not to exceed 3.75%. 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. 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 Change in Contract Owners’ 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 (Loans) Repayments. The fixed account assets are not reflected in the accompanying financial statements. For the periods ended December 31, 2010 and 2009, total transfers into the Account from the fixed account were $771 and $0, respectively, and total transfers from the Account to the fixed account were $5,073,622 and $0, respectively.

(7) Fair Value Measurement

FASB ASC 820 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 for identical assets at the measurement date. The assets utilizing Level 1 valuations represent investments in publicly-traded registered mutual funds with quoted market prices.

• Level 2 – Unadjusted quoted prices for similar assets 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. The assets utilizing Level 2 valuations represent investments in privately-traded registered mutual funds only offered through insurance products. These funds have no unfunded commitments or restrictions and the Account always has the ability to redeem its interest in the funds with the investee at NAV daily. The investment objectives of these mutual funds are described by the fund name in note 1(b) and in more detail in the applicable product prospectus.

• Level 3 – Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. The Account invests only in funds with fair value measurements in the first two levels of the fair value hierarchy.

The Account recognizes significant transfers between fair value hierarchy levels at the reporting period end. There were no significant transfers between Level 1 and 2 as of December 31, 2010.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2010:

	Level 1		Level 2		Level 3		Total
Separate Account Investments		0	$	182,074,525		0	$	182,074,525

The Account did not have any assets or liabilities reported at fair value on a nonrecurring basis required to be disclosed under FASB ASC 820.

The cost of purchases and proceeds from sales of Investments for the year ended December 31,2010 are as follows:

	Purchases of Investments		Sales of Investments
Large Cap Core V.I. Fund - Class II (MLVLC2)	$	491	$	629
Variable Series, Inc. - Social Equity Portfolio (CVSSE)		11,310		14,384
Credit Suisse Trust- International Equity Flex III Portfolio (CSIEF3)		194,848		186,511
U.S. Equity Flex I Portfolio (WSCP)		409,909		343,858
Insurance Trust - Insurance Trust Diversified Mid Cap Growth Portfolio 1 (OGGO)		759,450		729,825
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)		554,418		543,142
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)		37,795		52,297
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)		1,426,226		1,865,641
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)		556,172		738,762
Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)		2,975,945		3,359,712
Series Fund - Mid Cap Value Portfolio - Class VC (LOVMCV)		92,074		135,790
Research International Series - Service Class (MVRISC)		4,105		3,539
Value Series - Service Class (MVFSC)		3,160		3,218
Variable Insurance Trust II - International Value Portfolio - Service Class (MVIVSC)		248,726		248,916
Emerging Markets Debt Portfolio - Class I (MSEM)		7,135		8,895
Mid Cap Growth Portfolio - Class I (MSVMG)		20,837		38,303
U.S. Real Estate Portfolio - Class I (MSVRE)		636,278		804,537
Federated NVIT High Income Bond Fund - Class I (HIBF)		199,549		191,240
Gartmore NVIT Emerging Markets Fund - Class I (GEM)		42,403		30,905
Gartmore NVIT Global Utilities Fund - Class I (GVGU1)		17,011		19,348
Gartmore NVIT International Equity Fund - Class I (GIG)		25,874		36,498
Gartmore NVIT Worldwide Leaders Fund - Class I (GEF)		72,308		56,850
NVIT Fund - Class I (TRF)		52,401		49,228
NVIT Global Financial Services Fund - Class I (GVGF1)		33,639		39,532
NVIT Government Bond Fund - Class I (GBF)		1,024,993		1,046,025

(Continued)

50

NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS December 31, 2010

NVIT Growth Fund - Class I (CAF)		7,901		11,467
NVIT Health Sciences Fund - Class I (GVGH1)		84,993		94,750
NVIT International Index Fund - Class II (GVIX2)		9,907,366		8,771,640
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)		2,814		4,103
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)		771		769
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)		309,311		314,679
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)		30,591		42,835
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)		4,143		4,918
NVIT Leaders Fund - Class I (GVUS1)		6,883		9,566
NVIT Mid Cap Index Fund - Class I (MCIF)		1,789,049		1,469,508
NVIT Money Market Fund - Class I (SAM)		6,506		6,506
NVIT Money Market Fund - Class V (SAM5)		15,325,648		15,325,648
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)		76,836		74,832
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)		30,530		30,974
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)		4,382		5,739
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)		52,724		41,644
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)		891,538		617,976
NVIT Multi-Manager Small Company Fund - Class I (SCF)		703,208		710,242
NVIT Multi-Sector Bond Fund - Class I (MSBF)		465,610		487,637
NVIT Technology & Communications Fund - Class I (GGTC)		87,007		116,320
NVIT U.S. Growth Leaders Fund - Class I (GVUG1)		12,093		15,799
Van Kampen NVIT Comstock Value Fund - Class I (EIF)		14,672		17,460
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)		6,757		6,243
V.I. Basic Value Fund - Series I (AVBVI)		932,660		1,069,320
V.I. Capital Development Fund - Series I (AVCDI)		332		244
V.I. International Growth Fund - Series I (AVIE)		21,874		23,885
VPS Growth and Income Portfolio - Class A (ALVGIA)		3,117		3,812
VPS International Value Portfolio - Class A (ALVIVA)		7,677,608		5,805,332
VP Balanced Fund - Class I (ACVB)		16,353		15,315
VP Capital Appreciation Fund - Class I (ACVCA)		43,593		48,417
VP Income & Growth Fund - Class I (ACVIG)		96,847		80,655
VP International Fund - Class I (ACVI)		629,807		476,974
VP Ultra(R) Fund - Class I (ACVU1)		144,301		173,973
VP Value Fund - Class I (ACVV)		244,292		230,045
VP Vista(SM) Fund - Class I (ACVVS1)		5,749		4,664
MidCap Stock Portfolio - Initial Shares (DVMCS)		46,630		49,722
Small Cap Stock Index Portfolio - Service Shares (DVSCS)		2,879,561		1,538,272
Stock Index Fund, Inc. - Initial Shares (DSIF)		7,026,731		5,078,155
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)		21,698		26,396
Appreciation Portfolio - Initial Shares (DCAP)		65,174		56,962
Growth and Income Portfolio - Initial Shares (DGI)		10,735		9,440
International Value Portfolio - Initial Shares (DVIV)		534,748		322,090
Variable Series II - Strategic Value VIP - Class B (SVSHEB)		5		5
Quality Bond Fund II - Primary Shares (FQB)		140,934		153,624
Equity-Income Portfolio - Initial Class (FEIP)		2,048		1,761
High Income Portfolio - Initial Class (FHIP)		2,903		2,812
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)		480,233		424,916
VIP Fund - Contrafund Portfolio - Initial Class (FCP)		12,610		11,121
VIP Fund - Contrafund Portfolio - Service Class (FCS)		361,037		523,564
VIP Fund - Equity-Income Portfolio - Service Class (FEIS)		187,200		268,893
VIP Fund - Growth Opportunities Portfolio - Initial Class (FGOP)		676		554
VIP Fund - Growth Opportunities Portfolio - Service Class (FGOS)		99,847		106,637
VIP Fund - Growth Portfolio - Initial Class (FGP)		54,916		44,083
VIP Fund - Growth Portfolio - Service Class (FGS)		299,042		238,418
VIP Fund - High Income Portfolio - Service Class (FHIS)		86,157		104,758
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)		45,805		49,609
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)		115,048		116,197
VIP Fund - Overseas Portfolio - Initial Class (FOP)		5,244		3,999
VIP Fund - Overseas Portfolio - Service Class (FOS)		215,965		293,486
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)		2,824		4,393
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)		115,926		163,460
Templeton Foreign Securities Fund - Class 2 (TIF2)		101,136		115,048
Goldman Sachs VIT - Goldman Sachs Mid Cap Value Fund - Institutional Shares (GVMCE)		1,036,810		944,482
Lincoln VIP Trust - Baron Growth Opportunities Funds - Service Class (BNCAI)		170,358		240,225
Growth Portfolio - I Class Shares (AMTG)		12,430		11,224
Guardian Portfolio - I Class Shares (AMGP)		45,923		64,602
Mid-Cap Growth Portfolio - I Class Shares (AMCG)		4,223,191		4,004,396
Partners Portfolio - I Class Shares (AMTP)		179,707		242,781
Small-Cap Growth Portfolio - S Class Shares (AMFAS)		541		659
Balanced Fund/VA - Non-Service Shares (OVMS)		32,662		21,176
Capital Appreciation Fund/VA - Non-Service Shares (OVGR)		845,189		755,104
Core Bond Fund/VA - Non-Service Shares (OVB)		27,502		18,599
Global Securities Fund/VA - Non-Service Shares (OVGS)		1,179,586		920,774
Main Street Fund(R)/VA - Non-Service Shares (OVGI)		22,308		18,458
MidCap Fund/VA - Non-Service Shares (OVAG)		66,247		55,082
All Asset Portfolio - Administrative Class (PMVAAA)		2,681,214		2,846,984
Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)		640		621
Low Duration Portfolio - Administrative Class (PMVLDA)		603,652		635,218
Real Return Portfolio - Administrative Class (PMVRRA)		875,950		948,311
Total Return Portfolio - Administrative Class (PMVTRA)		10,000,871		10,692,390
Variable Contracts Trust - High Yield VCT Portfolio - Class I Shares (PIHYB1)		11,754		15,044
Micro-Cap Portfolio - Investment Class (ROCMC)		725,498		565,484
Equity Income Portfolio - II (TREI2)		902,220		739,479
Mid-Cap Growth Portfolio - II (TRMCG2)		767,284		738,210
New America Growth Portfolio (TRNAG1)		178,696		282,121
Worldwide Insurance Trust - Worldwide Bond Fund - Initial Class (VWBF)		162,706		158,225
Worldwide Insurance Trust - Worldwide Emerging Markets Fund - Initial Class (VWEM)		1,939,541		2,074,558
Worldwide Insurance Trust - Worldwide Hard Assets Fund - Initial Class (VWHA)		81,442		115,591
Ivy Fund Variable Insurance Portfolios, Inc. - Growth (WRGP)		665		908
Ivy Fund Variable Insurance Portfolios, Inc. - Real Estate Securities (WRRESP)		313		471
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)		1,002		1,234
Advantage Funds Variable Trust - VT Opportunity Fund (SVOF)		436,512		387,542
Total	$	89,172,170	$	83,869,804

(8) Financial Highlights

The following tabular presentation is a summary of units, unit fair values and contract owners’ equity outstanding for variable life contracts as of the end of the periods indicated, and the contract expense rate, investment income ratio and total return for each of the periods in the five year period ended December 31, 2010.

(Continued)

51

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
Large Cap Core V.I. Fund - Class II (MLVLC2)
2010		0.25	%		38	$	11.557561	$	439		0.75	%		8.71	%
2009		0.25	%		42		10.631422		447		0.07	%		22.05	%
2008		0.25	%		2,858		8.710851		24,896		0.17	%		-38.99	%
Variable Series, Inc. - Social Equity Portfolio (CVSSE)
2010		0.25	%		424		16.885673		7,160		0.04	%		16.97	%
2009		0.25	%		844		14.435757		12,184		0.39	%		33.92	%
2008		0.25	%		870		10.779017		9,378		0.00	%		-35.95	%
2007		0.25	%		516		16.829986		8,684		0.00	%		9.71	%
2006		0.25	%		454		15.339931		6,964		0.00	%		9.78	%
Credit Suisse Trust - International Equity Flex III Portfolio (CSIEF3)
2010		0.25	%		31,819		11.315359		360,043		0.10	%		11.95	%
2009		0.25	%		48,168		10.107469		486,857		0.00	%		1.07	%	12/11/2009
U.S. Equity Flex I Portfolio (WSCP)
2010		0.25	%		33,463		9.078469		303,793		0.13	%		14.17	%
2009		0.25	%		75,682		7.951497		601,785		1.14	%		24.36	%
2008		0.25	%		74,511		6.394190		476,437		0.10	%		-34.76	%
2007		0.25	%		49,268		9.801214		482,886		0.00	%		-1.08	%
2006		0.25	%		53,708		9.908462		532,164		0.00	%		4.51	%
Insurance Trust - Insurance Trust Diversified Mid Cap Growth Portfolio 1  (OGGO)
2010		0.25	%		48,346		20.995929		1,015,069		0.00	%		25.32	%
2009		0.25	%		82,943		16.754091		1,389,635		0.00	%		42.68	%
2008		0.25	%		92,476		11.742244		1,085,876		0.00	%		-43.93	%
2007		0.25	%		79,618		20.940470		1,667,238		0.00	%		16.94	%
2006		0.25	%		69,548		17.906342		1,245,350		0.00	%		11.11	%
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)
2010		0.20	%		5		18.182894		91		3.94	%		7.90	%
2010		0.25	%		2,879		18.107344		52,131		3.94	%		7.85	%
2009		0.25	%		5,883		16.789471		98,772		3.76	%		25.27	%
2009		0.40	%		3		16.606015		50		3.76	%		25.08	%
2008		0.25	%		4,246		13.402810		56,908		2.72	%		-16.27	%
2008		0.40	%		2		13.276251		27		2.72	%		-16.39	%
2007		0.25	%		32,006		16.007046		512,322		2.28	%		10.01	%
2007		0.40	%		56		15.879713		889		2.28	%		9.84	%
2006		0.25	%		32,938		14.550491		479,264		2.05	%		10.14	%
2006		0.40	%		206		14.456527		2,978		2.05	%		9.98	%
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)
2010		0.20	%		13		10.914078		142		0.24	%		6.27	%
2010		0.25	%		19,871		10.854583		215,691		0.24	%		6.21	%
2009		0.25	%		19,748		10.219612		201,817		0.00	%		45.65	%
2009		0.40	%		2		10.068481		20		0.00	%		45.43	%
2008		0.25	%		13,570		7.016534		95,214		0.02	%		-44.45	%
2008		0.40	%		64		6.923153		443		0.02	%		-44.53	%
2007		0.25	%		26,310		12.630653		332,312		0.11	%		36.29	%
2007		0.40	%		792		12.481327		9,885		0.11	%		36.09	%
2006		0.25	%		27,884		9.267372		258,411		0.15	%		8.84	%
2006		0.40	%		2,040		9.171618		18,710		0.15	%		8.68	%
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)
2010		0.25	%		298,426		5.591880		1,668,762		0.00	%		24.09	%
2009		0.25	%		394,308		4.506481		1,776,942		0.00	%		56.51	%
2008		0.25	%		128,813		2.879447		370,910		0.08	%		-44.11	%
2007		0.25	%		111,074		5.152101		572,264		0.33	%		21.39	%
2006		0.25	%		140,322		4.244167		595,550		0.00	%		7.56	%

(Continued)

52

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)
2010		0.25	%		154,714	$	19.355227	$	2,994,525		0.51	%		24.70	%
2009		0.25	%		192,694		15.520876		2,990,780		0.40	%		78.62	%
2008		0.25	%		153,642		8.689119		1,335,014		2.69	%		-52.35	%
2007		0.25	%		165,920		18.234395		3,025,451		0.45	%		27.70	%
2006		0.25	%		147,862		14.279422		2,111,384		1.91	%		46.26	%
2006		0.40	%		2,976		14.131910		42,057		1.91	%		46.05	%
Series Fund - Mid Cap Value Portfolio - Class VC (LOVMCV)
2010		0.25	%		3,024		12.100786		36,593		0.14	%		25.12	%
2009		0.25	%		10,880		9.671569		105,227		0.45	%		26.30	%
2008		0.25	%		3,801		7.657684		29,107		1.63	%		-39.51	%
2007		0.25	%		2,898		12.658811		36,685		0.44	%		0.33	%
Research International Series - Service Class (MVRISC)
2010		0.25	%		10,732		8.692628		93,289		1.37	%		10.20	%
2009		0.25	%		11,163		7.888076		88,055		1.90	%		30.24	%
2008		0.25	%		59,353		6.056428		359,467		0.00	%		-42.67	%
Value Series - Service Class (MVFSC)
2010		0.25	%		9,308		8.931612		83,135		1.32	%		10.94	%
2009		0.25	%		9,681		8.050967		77,941		0.00	%		22.15	%
Variable Insurance Trust II - International Value Portfolio - Service Class  (MVIVSC)
2010		0.25	%		144,340		14.278137		2,060,906		1.16	%		8.51	%
2009		0.25	%		119,114		13.158607		1,567,374		0.00	%		31.59	%	5/1/2009
Emerging Markets Debt Portfolio - Class I (MSEM)
2010		0.25	%		1,169		25.802224		30,163		4.11	%		9.47	%
2009		0.25	%		1,001		23.569995		23,594		4.70	%		29.88	%
2008		0.25	%		6,666		18.146989		120,968		5.75	%		-15.19	%
2007		0.25	%		16,418		21.396908		351,294		4.89	%		6.26	%
2006		0.25	%		6,038		20.135510		121,578		8.16	%		10.53	%
Mid Cap Growth Portfolio - Class I (MSVMG)
2010		0.25	%		5,561		12.420541		69,071		0.00	%		31.98	%
2009		0.25	%		7,909		9.410608		74,428		0.00	%		57.27	%
2008		0.25	%		23,748		5.983894		142,106		0.72	%		-46.90	%
2007		0.25	%		32,696		11.268795		368,445		0.00	%		22.36	%
2006		0.25	%		35,840		9.209696		330,076		0.00	%		9.00	%
U.S. Real Estate Portfolio - Class I (MSVRE)
2010		0.25	%		29,662		28.846381		855,641		1.69	%		29.64	%
2009		0.25	%		57,931		22.251750		1,289,066		2.74	%		28.03	%
2008		0.25	%		40,876		17.379512		710,405		2.29	%		-38.05	%
2007		0.25	%		79,286		28.053652		2,224,262		1.08	%		-17.28	%
2007		0.40	%		264		29.190018		7,706		1.08	%		-17.40	%
2006		0.25	%		123,528		33.913546		4,189,273		1.04	%		37.70	%
2006		0.40	%		678		35.340571		23,961		1.04	%		37.50	%
Federated NVIT High Income Bond Fund - Class I (HIBF)
2010		0.25	%		92,350		18.590518		1,716,834		8.65	%		12.87	%
2009		0.25	%		94,725		16.470462		1,560,165		8.91	%		45.63	%
2008		0.25	%		149,549		11.309571		1,691,335		9.29	%		-28.17	%
2007		0.25	%		129,054		15.744706		2,031,917		7.52	%		2.88	%
2007		0.40	%		454		15.518038		7,045		7.52	%		2.72	%
2006		0.25	%		112,142		15.304625		1,716,291		7.79	%		10.33	%
2006		0.40	%		2,620		15.107048		39,580		7.79	%		10.16	%
Gartmore NVIT Emerging Markets Fund - Class I (GEM)
2010		0.25	%		40,199		28.814934		1,158,332		0.06	%		15.88	%
2009		0.25	%		40,474		24.865174		1,006,393		1.30	%		62.91	%
2008		0.25	%		41,975		15.263531		640,687		1.23	%		-57.87	%
2007		0.25	%		39,428		36.226972		1,428,357		0.75	%		45.21	%
2006		0.25	%		13,852		24.947405		345,571		0.34	%		36.38	%

(Continued)

53

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
Gartmore NVIT Global Utilities Fund - Class I (GVGU1)
2009		0.25	%		933	$	17.534069	$	16,359		0.32	%		7.74	%
2008		0.25	%		770		16.274553		12,531		3.98	%		-33.11	%
2007		0.25	%		88		24.329252		2,141		2.57	%		20.13	%
2006		0.25	%		250		20.252066		5,063		0.07	%		37.22	%
Gartmore NVIT International Equity Fund - Class I (GIG)
2010		0.25	%		4,554		13.195400		60,092		0.85	%		13.01	%
2009		0.25	%		6,777		11.676578		79,132		1.04	%		29.40	%
2008		0.25	%		23,223		9.023725		209,558		1.28	%		-46.19	%
2007		0.25	%		29,472		16.769826		494,240		0.40	%		26.83	%
2006		0.25	%		30,994		13.222655		409,823		1.13	%		32.63	%
Gartmore NVIT Worldwide Leaders Fund - Class I (GEF)
2010		0.25	%		11,059		14.464062		159,958		1.00	%		11.18	%
2009		0.25	%		14,555		13.009466		189,353		0.93	%		24.69	%
2008		0.25	%		23,402		10.433265		244,159		0.71	%		-44.48	%
2007		0.25	%		32,612		18.791981		612,844		0.35	%		19.60	%
2006		0.25	%		26,456		15.712604		415,693		0.84	%		25.57	%
NVIT Fund - Class I (TRF)
2010		0.25	%		17,101		11.617005		198,662		1.02	%		13.17	%
2009		0.25	%		19,379		10.265438		198,934		1.59	%		25.78	%
2008		0.25	%		70,839		8.161290		578,138		1.47	%		-41.70	%
2007		0.25	%		57,392		13.998938		803,427		0.96	%		7.91	%
2006		0.25	%		46,336		12.972828		601,109		0.90	%		13.34	%
NVIT Global Financial Services Fund - Class I (GVGF1)
2009		0.25	%		2,433		13.625762		33,151		1.18	%		31.42	%
2008		0.25	%		2,534		10.367711		26,272		1.61	%		-46.41	%
2007		0.25	%		57,414		19.345657		1,110,712		3.27	%		-1.30	%
2006		0.25	%		62,280		19.600661		1,220,729		1.89	%		20.02	%
NVIT Government Bond Fund - Class I (GBF)
2010		0.20	%		76		15.904251		1,209		2.92	%		4.57	%
2010		0.25	%		216,012		18.918030		4,086,521		2.92	%		4.52	%
2009		0.25	%		233,386		18.099905		4,224,264		3.21	%		2.43	%
2009		0.40	%		46		17.785926		818		3.21	%		2.28	%
2008		0.25	%		292,623		17.670196		5,170,706		4.39	%		7.45	%
2008		0.40	%		63		17.389732		1,096		4.39	%		7.29	%
2007		0.25	%		234,938		16.445029		3,863,562		4.04	%		6.89	%
2007		0.40	%		1,020		16.208282		16,532		4.04	%		6.73	%
2006		0.10	%		207,598		14.788907		3,070,148		4.02	%		3.24	%
2006		0.25	%		391,450		15.385133		6,022,510		4.02	%		3.08	%
2006		0.40	%		1,058		15.186518		16,067		4.02	%		2.93	%
NVIT Growth Fund - Class I (CAF)
2010		0.25	%		4,363		8.076493		35,238		0.62	%		18.95	%
2009		0.25	%		5,417		6.789878		36,781		0.56	%		33.14	%
2008		0.25	%		15,651		5.099866		79,818		0.24	%		-38.86	%
2007		0.25	%		46,608		8.341169		388,765		0.17	%		19.24	%
2006		0.25	%		39,802		6.995039		278,417		0.05	%		5.90	%
NVIT Health Sciences Fund - Class I (GVGH1)
2009		0.25	%		6,814		13.548576		92,320		0.34	%		18.87	%
2008		0.25	%		12,452		11.398285		141,931		0.06	%		-25.40	%
2007		0.25	%		1,180		15.279611		18,030		0.06	%		12.88	%
2006		0.25	%		1,020		13.536569		13,807		0.00	%		2.45	%
NVIT International Index Fund - Class II (GVIX2)
2009		0.20	%		623,586		7.374176		4,598,433		2.64	%		28.33	%
2008		0.20	%		646,607		5.746412		3,715,670		1.83	%		-43.22	%
2008		0.25	%		473		5.741605		2,716		1.83	%		-43.25	%
2007		0.20	%		839,308		10.120857		8,494,516		1.21	%		1.21	%	5/1/2007
2007		0.25	%		7,682		10.117465		77,722		1.21	%		1.17	%	5/1/2007
2007		0.40	%		112		10.107323		1,132		1.21	%		1.07	%	5/1/2007

(Continued)

54

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)
2010		0.25	%		302	$	15.079089	$	4,554		1.77	%		14.34	%
2009		0.25	%		257		13.187693		3,389		1.22	%		26.89	%
2008		0.25	%		203		10.393146		2,110		2.12	%		-37.00	%
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)
2010		0.25	%		398		13.925202		5,542		2.32	%		5.63	%
2009		0.25	%		338		13.183237		4,456		1.92	%		8.81	%
2008		0.25	%		360		12.115615		4,362		3.04	%		-6.26	%
2007		0.25	%		8,302		12.924331		107,298		7.71	%		5.12	%
2006		0.25	%		80		12.295233		984		0.89	%		5.90	%
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)
2010		0.20	%		17		14.850857		252		1.99	%		10.69	%
2010		0.25	%		34,645		14.784666		512,215		1.99	%		10.64	%
2009		0.25	%		49,703		13.363298		664,196		1.59	%		18.84	%
2009		0.40	%		4		13.205276		53		1.59	%		18.66	%
2008		0.25	%		41,282		11.244982		464,215		2.57	%		-23.39	%
2007		0.25	%		64,496		14.677673		946,651		2.55	%		5.39	%
2007		0.40	%		90		14.547724		1,309		2.55	%		5.24	%
2006		0.25	%		73,596		13.926464		1,024,932		2.59	%		11.08	%
2006		0.40	%		166		13.823999		2,295		2.59	%		10.91	%
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
2010		0.25	%		2,732		15.119471		41,306		1.97	%		12.55	%
2009		0.25	%		2,835		13.433301		38,083		1.57	%		24.08	%
2008		0.25	%		10,411		10.826159		112,711		2.64	%		-31.56	%
2007		0.25	%		7,122		15.818947		112,663		3.09	%		5.88	%
2006		0.25	%		68		14.939913		1,016		1.39	%		14.26	%
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
2010		0.25	%		392		14.551412		5,704		2.25	%		8.25	%
2009		0.25	%		368		13.443003		4,947		1.89	%		14.28	%
2008		0.25	%		352		11.763719		4,141		3.24	%		-15.26	%
2007		0.25	%		156		13.881453		2,166		3.45	%		5.59	%
2006		0.25	%		76		13.146115		999		2.21	%		8.15	%
NVIT Leaders Fund - Class I (GVUS1)
2009		0.25	%		629		11.820920		7,435		0.66	%		33.45	%
2008		0.25	%		539		8.857680		4,774		0.81	%		-50.03	%
NVIT Mid Cap Index Fund - Class I (MCIF)
2010		0.20	%		308,257		19.342901		5,962,585		1.25	%		25.95	%
2010		0.25	%		2,455		25.155173		61,756		1.25	%		25.89	%
2009		0.20	%		313,690		15.357744		4,817,571		0.97	%		36.48	%
2009		0.25	%		6,504		19.982487		129,966		0.97	%		36.41	%
2008		0.20	%		327,416		11.252548		3,684,264		1.24	%		-36.59	%
2008		0.25	%		9,996		14.648394		146,425		1.24	%		-36.62	%
2007		0.20	%		383,938		17.745558		6,813,194		1.57	%		7.34	%
2007		0.25	%		27,830		23.112486		643,220		1.57	%		7.29	%
2007		0.40	%		88		22.779636		2,005		1.57	%		7.13	%
2006		0.20	%		18,880		16.531559		312,116		0.92	%		9.67	%
2006		0.25	%		29,578		21.542146		637,174		0.92	%		9.62	%
2006		0.40	%		204		21.263963		4,338		0.92	%		9.45	%
NVIT Money Market Fund - Class I (SAM)
2010		0.25	%		24,079		13.610786		327,734		0.00	%		-0.25	%
2009		0.25	%		24,495		13.644862		334,231		0.04	%		-0.21	%
2008		0.25	%		24,937		13.673319		340,972		2.06	%		1.80	%
2007		0.25	%		30,416		13.431742		408,540		4.64	%		4.53	%
2006		0.25	%		48,288		12.849738		620,488		4.36	%		4.27	%

(Continued)

55

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
NVIT Money Market Fund - Class V (SAM5)
2010		0.20	%		408,271	$	11.540261	$	4,711,554		0.00	%		-0.20	%
2010		0.25	%		4,152,465		11.492942		47,724,039		0.00	%		-0.25	%
2009		0.20	%		642,094		11.563359		7,424,763		0.05	%		-0.14	%
2009		0.25	%		4,307,135		11.521736		49,625,672		0.05	%		-0.19	%
2008		0.20	%		753,266		11.579888		8,722,736		2.01	%		1.94	%
2008		0.25	%		4,393,398		11.543990		50,717,343		2.01	%		1.89	%
2008		0.40	%		26		11.436879		297		2.01	%		1.73	%
2007		0.25	%		3,235,276		11.330392		36,656,945		4.66	%		4.60	%
2007		0.40	%		9,400		11.242166		105,676		4.66	%		4.44	%
2006		0.10	%		1,484,064		10.900267		16,176,694		4.50	%		4.51	%
2006		0.25	%		4,504,854		10.831867		48,795,979		4.50	%		4.35	%
2006		0.40	%		10,554		10.763797		113,601		4.50	%		4.20	%
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
2010		0.25	%		15,853		9.477375		150,245		0.05	%		15.22	%
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
2010		0.25	%		4,547		10.498264		47,736		0.48	%		4.98	%	4/30/2010
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
2010		0.25	%		2,326		10.056395		23,391		0.00	%		26.50	%
2009		0.25	%		2,520		7.949631		20,033		0.00	%		26.80	%
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)
2010		0.25	%		15,458		15.859701		245,159		0.00	%		25.13	%
2009		0.25	%		17,800		12.674135		225,600		0.00	%		27.14	%
2008		0.25	%		27,020		9.968426		269,347		0.00	%		-46.55	%
2007		0.25	%		46,678		18.651020		870,592		0.00	%		9.47	%
2007		0.40	%		116		18.410147		2,136		0.00	%		9.31	%
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)
2010		0.25	%		146,751		24.858931		3,648,073		0.59	%		26.29	%
2009		0.25	%		163,056		19.684295		3,209,642		0.49	%		25.90	%
2008		0.25	%		180,386		15.634824		2,820,303		1.09	%		-32.32	%
2007		0.25	%		225,632		23.101501		5,212,438		1.13	%		-7.13	%
2007		0.40	%		236		22.768858		5,373		1.13	%		-7.27	%
2006		0.25	%		250,234		24.874426		6,224,427		0.44	%		17.00	%
2006		0.40	%		318		24.553275		7,808		0.44	%		16.83	%
NVIT Multi-Manager Small Company Fund - Class I (SCF)
2010		0.20	%		23		18.040808		415		0.29	%		25.07	%
2010		0.25	%		97,673		23.953296		2,339,590		0.29	%		25.01	%
2009		0.25	%		111,831		19.161684		2,142,870		0.27	%		34.37	%
2009		0.40	%		5		18.829123		94		0.27	%		34.16	%
2008		0.25	%		171,052		14.260832		2,439,344		0.82	%		-38.34	%
2008		0.40	%		31		14.034369		435		0.82	%		-38.44	%
2007		0.25	%		289,916		23.129248		6,705,539		0.09	%		1.88	%
2007		0.40	%		1,382		22.796223		31,504		0.09	%		1.72	%
2006		0.25	%		307,966		22.703339		6,991,856		0.10	%		11.76	%
2006		0.40	%		4,416		22.410227		98,964		0.10	%		11.59	%
NVIT Multi-Sector Bond Fund - Class I (MSBF)
2010		0.25	%		38,663		17.714993		684,915		6.05	%		10.31	%
2009		0.25	%		50,310		16.059107		807,934		9.85	%		24.07	%
2008		0.25	%		52,365		12.943737		677,799		5.75	%		-17.50	%
2007		0.25	%		142,194		15.688937		2,230,873		3.89	%		4.36	%
2006		0.10	%		5,968		15.247568		90,997		4.16	%		4.73	%
2006		0.25	%		157,560		15.033200		2,368,631		4.16	%		4.58	%
NVIT Technology & Communications Fund - Class I (GGTC)
2009		0.25	%		33,965		3.249860		110,381		0.00	%		52.09	%
2008		0.25	%		81,631		2.136859		174,434		0.00	%		-48.70	%
2007		0.25	%		88,224		4.165338		367,483		0.00	%		19.79	%
2006		0.25	%		1,047,120		3.477132		3,640,974		0.00	%		10.89	%

(Continued)

56

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
NVIT U.S. Growth Leaders Fund - Class I (GVUG1)
2009		0.25	%		855	$	13.942266	$	11,921		0.00	%		25.52	%
2008		0.25	%		4,939		11.107192		54,858		0.00	%		-41.44	%
2007		0.25	%		4,052		18.966559		76,852		0.00	%		22.18	%
2006		0.25	%		2,848		15.523663		44,211		0.41	%		-0.54	%
Van Kampen NVIT Comstock Value Fund - Class I (EIF)
2010		0.25	%		4,655		12.248218		57,015		1.51	%		15.48	%
2009		0.25	%		5,260		10.606083		55,788		1.19	%		28.23	%
2008		0.25	%		7,188		8.271285		59,454		2.02	%		-37.15	%
2007		0.25	%		29,682		13.159897		390,612		2.07	%		-2.46	%
2006		0.25	%		5,640		13.492091		76,095		1.70	%		15.62	%
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares  (AMTB)
2010		0.25	%		7,165		13.137264		94,128		5.22	%		5.02	%
2009		0.25	%		7,568		12.509050		94,668		7.33	%		13.04	%
2008		0.25	%		8,537		11.065682		94,468		4.36	%		-13.64	%
V.I. Basic Value Fund - Series I (AVBVI)
2010		0.20	%		4		13.394748		54		0.02	%		7.14	%
2010		0.25	%		736		13.339087		9,818		0.02	%		7.08	%
2009		0.25	%		77,825		12.456759		969,447		4.38	%		47.63	%
2009		0.40	%		1		12.320545		12		4.38	%		47.41	%
2008		0.25	%		438		8.437654		3,696		1.73	%		-51.89	%
2007		0.25	%		128		17.537474		2,245		0.15	%		1.29	%
2007		0.40	%		6		17.397964		104		0.15	%		1.14	%
2006		0.25	%		1,056		17.314284		18,284		0.50	%		12.92	%
2006		0.40	%		92		17.202471		1,583		0.50	%		12.75	%
V.I. Capital Development Fund - Series I (AVCDI)
2010		0.25	%		205		19.072022		3,910		0.00	%		18.48	%
2009		0.25	%		146		16.097055		2,350		0.00	%		42.02	%
2008		0.25	%		130		11.334726		1,474		0.00	%		-47.16	%
V.I. International Growth Fund - Series I (AVIE)
2010		0.25	%		2,500		18.537223		46,343		2.29	%		12.58	%
2009		0.25	%		1,802		16.465672		29,671		4.30	%		34.90	%
2008		0.25	%		331		12.205427		4,040		0.50	%		-40.53	%
2007		0.25	%		364		20.523294		7,470		0.94	%		14.43	%
VPS Growth and Income Portfolio - Class A (ALVGIA)
2010		0.20	%		13		15.278240		199		0.00	%		12.87	%
2010		0.25	%		1,955		15.214771		29,745		0.00	%		12.81	%
2009		0.25	%		1,961		13.487083		26,448		3.19	%		20.52	%
2009		0.40	%		3		13.339666		40		3.19	%		20.34	%
2008		0.25	%		4,857		11.190516		54,352		5.73	%		-40.75	%
2008		0.40	%		60		11.084829		665		5.73	%		-40.84	%
2007		0.25	%		3,674		18.887703		69,393		1.09	%		4.85	%
2007		0.40	%		200		18.737498		3,747		1.09	%		4.70	%
2006		0.20	%		38,296		18.052215		691,328		0.80	%		17.05	%
2006		0.25	%		15,212		18.013258		274,018		0.80	%		16.99	%
2006		0.40	%		900		17.896979		16,107		0.80	%		16.82	%
VPS International Value Portfolio - Class A (ALVIVA)
2010		0.25	%		123,777		7.824523		968,496		1.62	%		4.33	%
2009		0.20	%		616,550		7.513480		4,632,436		1.10	%		34.41	%
2009		0.25	%		118,246		7.499685		886,808		1.10	%		34.34	%
2008		0.20	%		642,526		5.589904		3,591,659		1.10	%		-53.28	%
2008		0.25	%		416,942		5.582435		2,327,552		1.10	%		-53.30	%
2007		0.20	%		708,552		11.964050		8,477,152		0.23	%		5.63	%
2007		0.25	%		283,142		11.954073		3,384,700		0.23	%		5.57	%
2007		0.40	%		322		11.924192		3,840		0.23	%		5.42	%
2006		0.25	%		39,832		11.322832		451,011		0.00	%		13.23	%	5/1/2006

(Continued)

57

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*		Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**		Total Return***		Inception Date****
VP Balanced Fund - Class I (ACVB)
2010		0.25%		18,479	$	14.065755	$	259,921		1.90%		11.36%
2009		0.25%		19,328		12.631253		244,137		5.71%		15.19%
2008		0.25%		19,854		10.965207		217,703		0.00%		-20.53%
VP Capital Appreciation Fund - Class I (ACVCA)
2010		0.25%		19,302		23.316749		450,060		0.00%		30.96%
2009		0.25%		21,242		17.804024		378,193		0.92%		36.73%
2008		0.25%		23,619		13.021193		307,548		0.00%		-46.32%
2007		0.25%		92,114		24.256151		2,234,331		0.00%		45.44%
2006		0.25%		100,414		16.678077		1,674,712		0.00%		16.93%
VP Income & Growth Fund - Class I (ACVIG)
2010		0.25%		35,261		13.013791		458,879		1.52%		13.86%
2009		0.25%		37,991		11.429510		434,219		4.80%		17.80%
2008		0.25%		48,311		9.702293		468,727		2.24%		-34.75%
2007		0.25%		125,202		14.869331		1,861,670		1.36%		-0.32%
2006		0.10%		400,054		13.528072		5,411,959		1.75%		16.97%
2006		0.25%		367,398		14.916778		5,480,394		1.75%		16.80%
VP International Fund - Class I (ACVI)
2010		0.25%		89,078		14.604343		1,300,926		2.52%		13.01%
2009		0.25%		119,188		12.923118		1,540,281		2.22%		33.43%
2008		0.25%		157,354		9.685258		1,524,014		0.88%		-44.96%
2008		0.40%		8		9.531494		76		0.88%		-45.04%
2007		0.25%		230,188		17.597111		4,050,644		0.59%		17.76%
2007		0.40%		112		17.343787		1,943		0.59%		17.58%
2006		0.10%		95,056		15.094317		1,434,805		2.00%		24.90%
2006		0.25%		235,638		14.943177		3,521,180		2.00%		24.71%
2006		0.40%		976		14.750278		14,396		2.00%		24.53%
VP Ultra(R) Fund - Class I (ACVU1)
2010		0.20%		4		11.930621		48		0.61%		15.85%
2010		0.25%		3,097		11.879037		36,789		0.61%		15.79%
2009		0.25%		13,824		10.258719		141,817		0.37%		34.14%
2009		0.40%		1		10.141367		10		0.37%		33.94%
2008		0.25%		28,954		7.647567		221,428		0.00%		-41.63%
2007		0.25%		25,856		13.101110		338,742		0.00%		20.71%
2007		0.40%		10		12.990210		130		0.00%		20.53%
2006		0.25%		44,246		10.853176		480,210		0.00%		-3.52%
2006		0.40%		674		10.777532		7,264		0.00%		-3.66%
VP Value Fund - Class I (ACVV)
2010		0.25%		48,529		18.247676		885,541		2.20%		13.14%
2009		0.25%		57,418		16.128480		926,065		5.97%		19.56%
2008		0.25%		40,598		13.489390		547,642		3.61%		-26.96%
2007		0.25%		103,354		18.468246		1,908,767		1.56%		-5.38%
2006		0.25%		107,824		19.517566		2,104,462		2.56%		18.36%
2006		0.40%		1,596		18.608964		29,700		2.56%		15.06%
VP Vista(SM) Fund - Class I (ACVVS1)
2010		0.25%		3,686		13.423172		49,478		0.00%		23.57%
2009		0.25%		3,192		10.862560		34,673		0.00%		22.16%
2008		0.25%		3,225		8.891784		28,676		0.00%		-48.75%
2007		0.25%		64		17.350253		1,110		0.00%		39.42%
MidCap Stock Portfolio - Initial Shares (DVMCS)
2010		0.25%		1,006		18.056676		18,165		0.55%		26.78%
2009		0.25%		3,955		14.242624		56,330		2.13%		35.17%
2008		0.25%		4,948		10.536775		52,136		0.00%		-40.57%

(Continued)

58

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
Small Cap Stock Index Portfolio - Service Shares (DVSCS)
2010		0.20	%		355,326	$	16.780615	$	5,962,589		0.59	%		25.58	%
2010		0.25	%		1,503		16.708035		25,112		0.59	%		25.51	%
2009		0.20	%		363,020		13.363002		4,851,037		2.36	%		24.78	%
2009		0.25	%		2,197		13.311853		29,246		2.36	%		24.71	%
2008		0.20	%		349,825		10.709488		3,746,447		0.80	%		-31.05	%
2008		0.25	%		16,375		10.673834		174,784		0.80	%		-31.09	%
2007		0.20	%		439,296		15.532546		6,823,385		0.27	%		-0.85	%
2007		0.25	%		23,004		15.488598		356,300		0.27	%		-0.90	%
2007		0.40	%		48		15.357469		737		0.27	%		-1.05	%
2006		0.20	%		443,170		15.666332		6,942,848		0.36	%		14.18	%
2006		0.25	%		19,726		15.629868		308,315		0.36	%		14.13	%
2006		0.40	%		76		15.520951		1,180		0.36	%		13.96	%
Stock Index Fund, Inc. - Initial Shares (DSIF)
2010		0.10	%		38,692		11.524660		445,912		1.95	%		14.72	%
2010		0.20	%		1,913,959		11.704974		22,402,840		1.95	%		14.61	%
2010		0.25	%		502,399		13.175298		6,619,257		1.95	%		14.55	%
2009		0.10	%		41,573		10.045645		417,628		2.08	%		26.21	%
2009		0.20	%		905,049		10.213014		9,243,278		2.08	%		26.08	%
2009		0.25	%		684,501		11.501671		7,872,905		2.08	%		26.02	%
2009		0.40	%		5		11.302075		57		2.08	%		25.83	%
2008		0.10	%		44,546		7.959597		354,568		2.02	%		-37.20	%
2008		0.20	%		950,253		8.100298		7,697,332		2.02	%		-37.27	%
2008		0.25	%		893,251		9.126944		8,152,652		2.02	%		-37.30	%
2008		0.40	%		48		8.982024		431		2.02	%		-37.39	%
2007		0.10	%		46,372		12.675284		587,778		1.68	%		5.15	%
2007		0.20	%		1,615,390		12.912279		20,858,366		1.68	%		5.04	%
2007		0.25	%		1,021,830		14.556103		14,873,863		1.68	%		4.99	%
2007		0.40	%		1,278		14.346541		18,335		1.68	%		4.83	%
2006		0.10	%		630,234		12.054530		7,597,175		1.69	%		15.38	%
2006		0.20	%		1,589,080		12.292280		19,533,416		1.69	%		15.27	%
2006		0.25	%		1,353,284		13.864135		18,762,112		1.69	%		15.21	%
2006		0.40	%		6,436		13.685152		88,078		1.69	%		15.04	%
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
2010		0.25	%		2,396		11.329549		27,146		1.02	%		14.53	%
2009		0.25	%		3,436		9.892320		33,990		1.63	%		33.42	%
2008		0.25	%		9,406		7.414344		69,739		0.71	%		-34.59	%
2007		0.25	%		9,990		11.334861		113,235		0.19	%		7.51	%
2006		0.25	%		9,986		10.542600		105,278		0.08	%		8.93	%
Appreciation Portfolio - Initial Shares (DCAP)
2010		0.20	%		59		12.732094		751		2.05	%		15.09	%
2010		0.25	%		29,571		14.786142		437,241		2.05	%		15.03	%
2009		0.25	%		27,278		12.854271		350,639		2.28	%		22.25	%
2009		0.40	%		9		12.631233		114		2.28	%		22.07	%
2008		0.25	%		64,205		10.514504		675,084		2.20	%		-29.73	%
2008		0.40	%		30		10.347582		310		2.20	%		-29.83	%
2007		0.25	%		83,176		14.962371		1,244,510		1.10	%		6.86	%
2007		0.40	%		460		14.746966		6,784		1.10	%		6.70	%
2006		0.25	%		76,748		14.001376		1,074,578		1.54	%		16.19	%
2006		0.40	%		1,920		13.820624		26,536		1.54	%		16.01	%
Growth and Income Portfolio - Initial Shares (DGI)
2010		0.25	%		14,052		11.128665		156,380		1.23	%		18.31	%
2009		0.25	%		14,547		9.406322		136,834		1.38	%		28.46	%
2008		0.25	%		15,012		7.322121		109,920		0.51	%		-40.56	%

(Continued)

59

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
International Value Portfolio - Initial Shares (DVIV)
2010		0.25	%		47,861	$	18.536839	$	887,192		1.88	%		4.19	%
2009		0.25	%		56,561		17.790702		1,006,260		4.31	%		30.65	%
2008		0.25	%		69,377		13.617429		944,736		3.05	%		-37.48	%
2007		0.25	%		100,470		21.780049		2,188,242		2.01	%		3.89	%
2006		0.20	%		182,762		21.009394		3,839,719		1.36	%		22.35	%
2006		0.25	%		111,584		20.964071		2,339,255		1.36	%		22.29	%
2006		0.40	%		194		11.246076		2,182		0.00	%		12.46	%	5/1/2006
Variable Series II -Strategic Value VIP -Class B (SVSHEB)
2008		0.25	%		22,579		5.898673		133,186		2.81	%		-46.29	%
2007		0.25	%		22,588		10.983369		248,092		1.03	%		-2.43	%
2006		0.25	%		22,418		11.257266		252,365		0.00	%		12.57	%	5/1/2006
Quality Bond Fund II -Primary Shares (FQB)
2010		0.25	%		27,472		18.257953		501,582		4.56	%		8.23	%
2009		0.25	%		25,113		16.869071		423,633		1.73	%		20.13	%
2008		0.25	%		38,637		14.041907		542,537		4.99	%		-7.52	%
2007		0.25	%		36,422		15.183610		553,017		4.69	%		5.12	%
2006		0.25	%		37,252		14.444216		538,076		3.94	%		3.89	%
2006		0.40	%		124		14.279265		1,771		3.94	%		3.74	%
Equity-Income Portfolio -Initial Class (FEIP)
2010		0.25	%		3,291		12.578769		41,397		1.95	%		14.86	%
2009		0.25	%		2,785		10.951232		30,499		2.44	%		29.88	%
2008		0.25	%		2,879		8.431569		24,274		2.34	%		-42.80	%
High Income Portfolio -Initial Class (FHIP)
2010		0.25	%		2,594		17.949315		46,561		8.03	%		13.54	%
2009		0.25	%		2,115		15.808925		33,436		8.93	%		43.60	%
2008		0.25	%		1,726		11.009158		19,002		9.57	%		-25.17	%
VIP Fund -Asset Manager Portfolio -Initial Class (FAMP)
2010		0.25	%		306,766		14.655393		4,495,776		1.74	%		13.98	%
2009		0.25	%		302,181		12.857966		3,885,433		2.33	%		28.79	%
2008		0.25	%		339,211		9.983663		3,386,568		2.64	%		-28.90	%
2007		0.25	%		352,600		14.040973		4,950,847		6.14	%		15.21	%
2006		0.25	%		335,238		12.186874		4,085,503		4.38	%		7.05	%
VIP Fund - Contrafund Portfolio -Initial Class (FCP)
2010		0.25	%		8,752		16.703813		146,192		1.28	%		16.92	%
2009		0.25	%		7,816		14.286022		111,660		1.45	%		35.37	%
2008		0.25	%		7,839		10.553240		82,727		1.06	%		-42.66	%
VIP Fund - Contrafund Portfolio -Service Class (FCS)
2010		0.20	%		19		17.619725		335		1.08	%		16.87	%
2010		0.25	%		121,638		20.939519		2,547,041		1.08	%		16.82	%
2009		0.25	%		128,992		17.925263		2,312,216		1.20	%		35.33	%
2009		0.40	%		7		17.614183		123		1.20	%		35.12	%
2008		0.25	%		187,452		13.245967		2,482,983		0.83	%		-42.76	%
2008		0.40	%		91		13.035628		1,186		0.83	%		-42.84	%
2007		0.25	%		338,604		23.139773		7,835,220		0.74	%		17.21	%
2007		0.40	%		1,726		22.806621		39,364		0.74	%		17.04	%
2006		0.20	%		130,694		16.578552		2,166,717		1.19	%		11.37	%
2006		0.25	%		472,174		19.741674		9,321,505		1.19	%		11.31	%
2006		0.40	%		3,622		19.486792		70,581		1.19	%		11.15	%

(Continued)

60

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’ equity		Investment Income Ratio**			Total Return***			Inception Date****
VIP Fund - Equity-Income Portfolio - Service Class (FEIS)
2010		0.25	%		29,780	$	13.974628	$	416,164		1.98	%		14.80	%
2009		0.25	%		37,804		12.172977		460,187		1.56	%		29.71	%
2008		0.25	%		126,104		9.384986		1,183,484		2.16	%		-42.85	%
2007		0.25	%		172,396		16.420855		2,830,890		0.77	%		1.16	%
2007		0.40	%		362		16.184435		5,859		0.77	%		1.01	%
2006		0.10	%		18,982		16.213431		307,763		3.18	%		19.96	%
2006		0.20	%		434,404		14.646026		6,362,292		3.18	%		19.84	%
2006		0.25	%		115,616		16.232055		1,876,685		3.18	%		19.78	%
2006		0.40	%		752		16.022504		12,049		3.18	%		19.60	%
VIP Fund - Growth Opportunities Portfolio - Initial Class (FGOP)
2010		0.25	%		1,384		10.818560		14,973		0.25	%		23.43	%
2009		0.25	%		959		8.765173		8,406		0.48	%		45.49	%
2008		0.25	%		1,208		6.024737		7,278		0.35	%		-55.13	%
VIP Fund - Growth Opportunities Portfolio - Service Class (FGOS)
2010		0.25	%		96,266		9.986456		961,356		0.10	%		23.34	%
2009		0.25	%		104,534		8.096367		846,346		0.39	%		45.36	%
2008		0.25	%		111,197		5.570057		619,374		0.34	%		-55.17	%
2007		0.25	%		117,700		12.425418		1,462,472		0.00	%		22.73	%
2006		0.25	%		138,014		10.123840		1,397,232		0.60	%		5.04	%
VIP Fund - Growth Portfolio - Initial Class (FGP)
2010		0.25	%		5,152		9.713714		50,045		0.27	%		23.86	%
2009		0.25	%		9,771		7.842315		76,627		0.46	%		27.97	%
2008		0.25	%		10,255		6.128418		62,847		1.06	%		-47.30	%
2007		0.25	%		6,204		11.628670		72,144		0.81	%		26.65	%
2006		0.25	%		6,314		9.182046		57,975		0.55	%		6.58	%
VIP Fund - Growth Portfolio - Service Class (FGS)
2010		0.20	%		79		10.234229		809		0.16	%		23.81	%
2010		0.25	%		55,618		13.506697		751,215		0.16	%		23.75	%
2009		0.25	%		70,607		10.914824		770,663		0.27	%		27.83	%
2009		0.40	%		15		10.725399		161		0.27	%		27.64	%
2008		0.25	%		112,901		8.538686		964,026		0.22	%		-47.37	%
2008		0.40	%		64		8.403086		538		0.22	%		-47.44	%
2007		0.25	%		1,137,072		16.222520		18,446,173		0.33	%		26.55	%
2007		0.40	%		184		15.988944		2,942		0.33	%		26.36	%
2006		0.10	%		975,936		9.843867		9,606,984		0.28	%		6.63	%
2006		0.25	%		667,544		12.818891		8,557,174		0.28	%		6.47	%
2006		0.40	%		564		12.653389		7,137		0.28	%		6.31	%
VIP Fund - High Income Portfolio - Service Class (FHIS)
2010		0.25	%		121,792		13.314203		1,621,563		20.72	%		13.50	%
2009		0.25	%		22,244		11.730220		260,927		12.21	%		43.41	%
2008		0.25	%		32,098		8.179245		262,537		8.70	%		-25.25	%
2007		0.25	%		145,638		10.942182		1,593,598		7.62	%		2.40	%
2006		0.25	%		161,676		10.685864		1,727,648		7.36	%		10.90	%
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)
2010		0.25	%		2,978		13.087122		38,973		5.27	%		7.41	%
2009		0.25	%		4,113		12.184238		50,114		8.40	%		15.38	%
2008		0.25	%		6,382		10.559688		67,392		3.49	%		-3.59	%
2007		0.25	%		4,884		10.952518		53,492		4.13	%		3.95	%
2006		0.25	%		5,542		10.536365		58,393		0.00	%		4.04	%
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)
2010		0.25	%		71,093		16.952922		1,205,234		0.31	%		28.38	%
2009		0.25	%		63,431		13.205147		837,616		0.62	%		39.67	%
2008		0.25	%		48,480		9.454867		458,372		0.29	%		-39.66	%
2007		0.25	%		117,550		15.669099		1,841,903		0.70	%		15.20	%
2006		0.25	%		90,122		13.602006		1,225,840		0.00	%		12.31	%
2006		0.40	%		6		13.568197		81		0.00	%		12.14	%

(Continued)

61

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’  equity		Investment Income Ratio**			Total Return***			Inception Date****
VIP Fund - Overseas Portfolio - Initial Class (FOP)
2010		0.25	%		2,281	$	13.304487	$	30,348		1.43	%		12.83	%
2009		0.25	%		1,927		11.791429		22,722		2.33	%		26.21	%
2008		0.25	%		1,918		9.342405		17,919		2.68	%		-43.95	%
VIP Fund - Overseas Portfolio - Service Class (FOS)
2010		0.20	%		39		14.127649		551		1.18	%		12.77	%
2010		0.25	%		17,830		14.301363		254,993		1.18	%		12.71	%
2009		0.25	%		30,392		12.688674		385,634		1.64	%		26.12	%
2009		0.40	%		7		12.468464		87		1.64	%		25.93	%
2008		0.25	%		95,011		10.060565		955,864		1.99	%		-44.00	%
2008		0.40	%		91		9.900810		901		1.99	%		-44.09	%
2007		0.25	%		268,890		17.966865		4,831,110		3.95	%		16.91	%
2007		0.40	%		2,418		17.708202		42,818		3.95	%		16.74	%
2006		0.20	%		446,452		15.150740		6,764,078		0.57	%		17.71	%
2006		0.25	%		262,300		15.367797		4,030,973		0.57	%		17.65	%
2006		0.40	%		4,436		15.169405		67,291		0.57	%		17.48	%
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)
2010		0.25	%		1,176		16.162748		19,007		0.51	%		26.14	%
2009		0.25	%		1,063		12.813506		13,621		0.51	%		57.00	%
2008		0.25	%		1,036		8.161269		8,455		1.27	%		-51.30	%
2007		0.25	%		66		16.757189		1,106		0.96	%		5.33	%
2006		0.25	%		1,430		15.908520		22,749		0.72	%		15.91	%
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)
2010		0.25	%		42,559		14.201682		604,409		0.67	%		27.90	%
2009		0.25	%		32,968		11.103596		366,063		1.83	%		28.83	%
2008		0.25	%		35,891		8.618488		309,326		0.63	%		-33.18	%
2007		0.25	%		19,156		12.898779		247,089		0.61	%		-2.62	%
2006		0.25	%		10,222		13.246445		135,405		0.00	%		16.69	%
Templeton Foreign Securities Fund - Class 2 (TIF2)
2010		0.20	%		29		20.004971		580		1.84	%		8.19	%
2010		0.25	%		7,694		19.921879		153,279		1.84	%		8.14	%
2009		0.25	%		6,164		18.423035		113,560		3.48	%		36.70	%
2009		0.40	%		4		18.221708		73		3.48	%		36.50	%
2008		0.25	%		7,294		13.476974		98,301		2.49	%		-40.53	%
2008		0.40	%		56		13.349706		748		2.49	%		-40.62	%
2007		0.25	%		25,366		22.660573		574,808		3.29	%		15.17	%
2007		0.40	%		326		22.480343		7,329		3.29	%		14.99	%
2006		0.25	%		156,638		19.676237		3,082,046		1.06	%		21.14	%
2006		0.40	%		1,080		19.549201		21,113		1.06	%		20.96	%
Goldman Sachs VIT - Goldman Sachs Mid Cap Value Fund - Institutional Shares  (GVMCE)
2010		0.25	%		101,953		22.186180		2,261,948		0.65	%		24.69	%
2009		0.25	%		125,459		17.793307		2,232,331		1.79	%		32.82	%
2008		0.25	%		152,977		13.396598		2,049,371		1.05	%		-37.21	%
2007		0.25	%		169,352		21.334874		3,613,104		0.78	%		2.94	%
2006		0.25	%		174,678		20.724643		3,620,139		1.05	%		15.87	%
Lincoln VIP Trust - Baron Growth Opportunities Funds - Service Class  (BNCAI)
2010		0.20	%		14		20.490617		287		0.00	%		26.13	%
2010		0.25	%		13,613		20.405470		277,780		0.00	%		26.07	%
2009		0.25	%		24,993		16.186105		404,539		0.00	%		37.98	%
2009		0.40	%		9		16.009192		144		0.00	%		37.77	%
2008		0.25	%		76,333		11.730770		895,445		0.00	%		-39.29	%
2008		0.40	%		77		11.619973		895		0.00	%		-39.38	%
2007		0.25	%		106,480		19.321952		2,057,401		0.00	%		3.16	%
2007		0.40	%		288		19.168269		5,520		0.00	%		3.01	%
2006		0.25	%		36,880		18.729880		690,758		0.00	%		15.23	%

(Continued)

62

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’  equity		Investment Income Ratio**			Total Return***			Inception Date****
Growth Portfolio - I Class Shares (AMTG)
2010		0.25	%		17,823	$	12.028020	$	214,375		0.00	%		31.01	%
2009		0.25	%		18,553		9.181242		170,340		0.00	%		30.03	%
2008		0.25	%		22,768		7.060685		160,758		0.00	%		-43.82	%
Guardian Portfolio - I Class Shares (AMGP)
2010		0.25	%		4,952		14.900336		73,786		0.34	%		18.72	%
2009		0.25	%		8,551		12.551274		107,326		0.76	%		29.36	%
2008		0.25	%		20,227		9.702253		196,247		0.56	%		-37.40	%
2007		0.25	%		24,678		15.499279		382,491		0.19	%		7.12	%
2006		0.10	%		82,428		14.953594		1,232,595		0.60	%		13.26	%
2006		0.25	%		87,020		14.469329		1,259,121		0.60	%		13.09	%
Mid-Cap Growth Portfolio - I Class Shares (AMCG)
2010		0.25	%		8,832		19.061513		168,351		0.00	%		28.77	%
2009		0.25	%		17,388		14.802282		257,382		0.00	%		31.27	%
2008		0.25	%		41,787		11.276213		471,199		0.00	%		-43.51	%
2007		0.25	%		83,106		19.961533		1,658,923		0.00	%		22.22	%
2006		0.25	%		76,228		16.332395		1,244,986		0.00	%		14.41	%
Partners Portfolio - I Class Shares (AMTP)
2010		0.25	%		27,682		14.465228		400,426		0.54	%		15.38	%
2009		0.25	%		41,218		12.537337		516,764		2.17	%		55.68	%
2008		0.25	%		67,495		8.053019		543,539		0.53	%		-52.51	%
2007		0.25	%		94,644		16.957944		1,604,968		0.63	%		9.06	%
2006		0.25	%		112,472		15.548936		1,748,820		0.75	%		11.96	%
Small-Cap Growth Portfolio - S Class Shares (AMFAS)
2010		0.25	%		599		13.351308		7,997		0.00	%		19.31	%
2009		0.25	%		454		11.190284		5,080		0.00	%		22.45	%
2008		0.25	%		1,396		9.138805		12,758		0.00	%		-39.62	%
2008		0.40	%		2		9.052482		18		0.00	%		-39.72	%
2007		0.25	%		1,552		15.136586		23,492		0.00	%		0.26	%
2007		0.40	%		84		15.016171		1,261		0.00	%		0.11	%
2006		0.25	%		314		15.096902		4,740		0.00	%		4.99	%
2006		0.40	%		6		14.999423		90		0.00	%		4.83	%
Balanced Fund/VA - Non-Service Shares (OVMS)
2010		0.25	%		27,934		11.542336		322,424		1.38	%		12.63	%
2009		0.25	%		29,268		10.247784		299,932		0.00	%		21.59	%
2008		0.25	%		29,567		8.428205		249,197		3.70	%		-43.61	%
2007		0.25	%		63,874		14.946978		954,723		2.50	%		3.53	%
2006		0.25	%		69,630		14.437838		1,005,307		2.13	%		10.87	%
Capital Appreciation Fund/VA - Non-Service Shares (OVGR)
2010		0.25	%		138,075		14.618833		2,018,495		0.21	%		9.14	%
2009		0.25	%		186,596		13.394109		2,499,287		0.37	%		44.16	%
2008		0.25	%		264,810		9.291336		2,460,439		0.15	%		-45.65	%
2007		0.25	%		256,650		17.096620		4,387,848		0.20	%		13.86	%
2006		0.10	%		260,376		13.316078		3,467,187		0.37	%		7.84	%
2006		0.25	%		395,606		15.015124		5,940,073		0.37	%		7.68	%
Core Bond Fund/VA - Non-Service Shares (OVB)
2010		0.25	%		26,061		10.754380		280,270		1.81	%		11.14	%
2009		0.25	%		27,417		9.676718		265,307		0.00	%		9.34	%
2008		0.25	%		28,881		8.850218		255,603		6.02	%		-39.20	%
2007		0.25	%		72,602		14.556650		1,056,842		5.03	%		4.13	%
2006		0.25	%		79,144		13.979406		1,106,386		5.21	%		5.02	%
Global Securities Fund/VA - Non-Service Shares (OVGS)
2010		0.25	%		115,302		15.127070		1,744,181		1.76	%		15.68	%
2009		0.25	%		167,720		13.077210		2,193,310		2.37	%		39.42	%
2008		0.25	%		191,747		9.379518		1,798,494		1.42	%		-40.34	%
2007		0.25	%		155,098		15.720950		2,438,288		0.85	%		6.05	%
2006		0.25	%		167,220		14.823774		2,478,831		1.03	%		17.40	%

(Continued)

63

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’  equity		Investment Income Ratio**			Total Return***			Inception Date****
Main Street Fund(R)/VA - Non-Service Shares (OVGI)
2010		0.25	%		10,808	$	11.381017	$	123,006		1.10	%		15.82	%
2009		0.25	%		11,200		9.826673		110,059		1.76	%		27.97	%
2008		0.25	%		11,211		7.679167		86,091		2.39	%		-38.62	%
2007		0.25	%		12,692		12.511530		158,796		0.97	%		4.16	%
2006		0.25	%		12,890		12.011636		154,830		1.06	%		14.74	%
MidCap Fund/VA - Non-Service Shares (OVAG)
2010		0.25	%		27,008		12.120053		327,338		0.00	%		27.15	%
2009		0.25	%		28,425		9.532345		270,957		0.00	%		32.28	%
2008		0.25	%		46,886		7.206392		337,879		0.00	%		-49.19	%
2007		0.25	%		50,576		14.184053		717,373		0.00	%		6.07	%
2006		0.10	%		282,340		12.637642		3,568,112		0.00	%		2.85	%
2006		0.25	%		235,826		13.372932		3,153,685		0.00	%		2.70	%
All Asset Portfolio - Administrative Class (PMVAAA)
2010		0.25	%		2,149		15.387057		33,067		6.15	%		12.81	%
2009		0.25	%		2,845		13.639951		38,806		6.80	%		21.27	%
2008		0.25	%		2,717		11.247576		30,560		1.31	%		-16.05	%
2007		0.25	%		240,382		13.398414		3,220,738		7.61	%		8.06	%
2006		0.25	%		238,184		12.399544		2,953,373		6.84	%		4.40	%
Foreign Bond Portfolio (Unhedged) - Administrative Class (PMVFBA)
2010		0.25	%		36,057		12.014282		433,199		0.43	%		9.21	%
Low Duration Portfolio - Administrative Class (PMVLDA)
2010		0.20	%		47		13.996078		658		1.56	%		5.08	%
2010		0.25	%		97,738		13.937807		1,362,253		1.56	%		5.03	%
2009		0.25	%		99,489		13.270656		1,320,284		3.19	%		13.03	%
2009		0.40	%		7		13.125160		92		3.19	%		12.86	%
2008		0.25	%		110,775		11.740354		1,300,538		4.25	%		-0.70	%
2008		0.40	%		12		11.629122		140		4.25	%		-0.85	%
2007		0.25	%		123,908		11.823104		1,464,977		4.70	%		7.10	%
2007		0.40	%		130		11.728722		1,525		4.70	%		6.94	%
2006		0.25	%		232,794		11.038824		2,569,772		4.01	%		3.70	%
2006		0.40	%		170		10.967285		1,864		4.01	%		3.55	%
Real Return Portfolio - Administrative Class (PMVRRA)
2010		0.25	%		295,591		16.297330		4,817,344		1.44	%		7.84	%
2009		0.25	%		306,080		15.112339		4,625,585		2.99	%		18.05	%
2008		0.25	%		235,840		12.801575		3,019,123		3.76	%		-7.26	%
2007		0.25	%		373,918		13.803269		5,161,291		4.66	%		10.37	%
2006		0.25	%		385,224		12.506613		4,817,847		4.26	%		0.49	%
Total Return Portfolio - Administrative Class (PMVTRA)
2010		0.20	%		681,770		16.734465		11,409,056		2.42	%		7.90	%
2010		0.25	%		231,206		16.664698		3,852,978		2.42	%		7.84	%
2009		0.20	%		638,498		15.509642		9,902,875		5.13	%		13.80	%
2009		0.25	%		374,451		15.452727		5,786,289		5.13	%		13.74	%
2009		0.40	%		10		15.283042		153		5.13	%		13.57	%
2008		0.20	%		503,145		13.628820		6,857,273		4.49	%		4.54	%
2008		0.25	%		381,025		13.585613		5,176,458		4.49	%		4.49	%
2008		0.40	%		82		13.456667		1,103		4.49	%		4.33	%
2007		0.20	%		476,190		13.037033		6,208,105		4.68	%		8.52	%
2007		0.25	%		357,356		13.002214		4,646,419		4.68	%		8.47	%
2007		0.40	%		2,020		12.898203		26,054		4.68	%		8.31	%
2006		0.20	%		511,288		12.013005		6,142,105		4.46	%		3.64	%
2006		0.25	%		615,140		11.986960		7,373,659		4.46	%		3.59	%
2006		0.40	%		4,340		11.909077		51,685		4.46	%		3.43	%

(Continued)

64

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’  equity		Investment Income Ratio**			Total Return***			Inception Date****
Variable Contracts Trust - High Yield VCT Portfolio - Class I Shares  (PIHYB1)
2010		0.25	%		1,397	$	20.889289	$	29,182		5.71	%		17.75	%
2009		0.25	%		1,149		17.740695		20,384		16.90	%		60.09	%
2008		0.25	%		848		11.081635		9,397		6.35	%		-35.59	%
2007		0.25	%		10,584		17.203983		182,087		5.32	%		5.65	%
2006		0.25	%		11,150		16.283186		181,558		5.90	%		8.23	%
Micro-Cap Portfolio - Investment Class (ROCMC)
2010		0.20	%		49		27.663928		1,356		2.08	%		29.70	%
2010		0.25	%		106,105		27.549005		2,923,087		2.08	%		29.64	%
2009		0.25	%		95,536		21.251012		2,030,237		0.00	%		57.65	%
2009		0.40	%		14		21.018795		294		0.00	%		57.41	%
2008		0.25	%		119,381		13.479984		1,609,254		2.26	%		-43.41	%
2008		0.40	%		77		13.352691		1,028		2.26	%		-43.50	%
2007		0.25	%		188,620		23.821182		4,493,151		1.14	%		3.72	%
2007		0.40	%		850		23.631757		20,087		1.14	%		3.56	%
2006		0.20	%		56,170		23.017122		1,292,872		0.19	%		20.83	%
2006		0.25	%		188,708		22.967474		4,334,146		0.19	%		20.77	%
2006		0.40	%		2,174		22.819241		49,609		0.19	%		20.59	%
Equity Income Portfolio - II (TREI2)
2010		0.20	%		15		16.595545		249		1.71	%		14.51	%
2010		0.25	%		150,052		16.526617		2,479,852		1.71	%		14.46	%
2009		0.25	%		148,660		14.439362		2,146,556		1.72	%		24.94	%
2009		0.40	%		3		14.281536		43		1.72	%		24.75	%
2008		0.25	%		208,609		11.557153		2,410,926		2.05	%		-36.42	%
2008		0.40	%		58		11.447985		664		2.05	%		-36.52	%
2007		0.25	%		299,808		18.178518		5,450,065		1.44	%		2.77	%
2007		0.40	%		234		18.033915		4,220		1.44	%		2.62	%
2006		0.20	%		52,696		17.726578		934,120		1.34	%		18.41	%
2006		0.25	%		291,730		17.688346		5,160,221		1.34	%		18.35	%
2006		0.40	%		950		17.574134		16,695		1.34	%		18.18	%
Mid-Cap Growth Portfolio - II (TRMCG2)
2010		0.25	%		44,778		26.074777		1,167,576		0.00	%		27.46	%
2009		0.25	%		63,884		20.457409		1,306,901		0.00	%		45.00	%
2008		0.25	%		76,782		14.108326		1,083,265		0.00	%		-40.09	%
2007		0.25	%		131,028		23.547392		3,085,368		0.00	%		16.93	%
2007		0.40	%		66		23.360091		1,542		0.00	%		16.75	%
2006		0.25	%		142,804		20.137940		2,875,778		0.00	%		6.12	%
2006		0.40	%		566		20.007898		11,324		0.00	%		5.96	%
New America Growth Portfolio (TRNAG1)
2010		0.25	%		39,982		15.029245		600,899		0.18	%		19.35	%
2009		0.25	%		54,891		12.592384		691,209		0.00	%		49.39	%
2008		0.25	%		146,246		8.429140		1,232,728		0.00	%		-38.40	%
2007		0.25	%		183,150		13.682900		2,506,023		0.00	%		13.49	%
2007		0.40	%		216		13.607980		2,939		0.00	%		13.32	%
2006		0.25	%		35,424		12.056017		427,072		0.05	%		7.06	%
Worldwide Insurance Trust - Worldwide Bond Fund - Initial Class (VWBF)
2010		0.25	%		18,984		18.983449		360,382		4.20	%		5.93	%
2009		0.25	%		27,754		17.920563		497,367		3.88	%		5.72	%
2008		0.25	%		29,316		16.951478		496,950		0.00	%		3.35	%
Worldwide Insurance Trust - Worldwide Emerging Markets Fund - Initial Class  (VWEM)
2010		0.25	%		99,639		31.937979		3,182,268		0.71	%		26.52	%
2009		0.25	%		125,304		25.242895		3,163,036		0.14	%		112.64	%
2008		0.25	%		86,252		11.870996		1,023,897		0.00	%		-64.87	%
2007		0.25	%		103,264		33.789017		3,489,189		0.47	%		37.27	%
2006		0.25	%		79,400		24.615135		1,954,442		0.56	%		39.14	%

(Continued)

65

NATIONWIDE VL SEPARATE ACCOUNT - C NOTES TO FINANCIAL STATEMENTS December 31, 2010

	Contract Expense Rate*			Units		Unit Fair Value		Contract owners’  equity		Investment Income Ratio**			Total Return***			Inception Date****
Worldwide Insurance Trust - Worldwide Hard Assets Fund - Initial Class  (VWHA)
2010		0.25	%		43,231	$	42.214751	$	1,824,986		0.14	%		28.91	%
2009		0.25	%		5,862		32.746823		191,962		0.37	%		57.14	%
2008		0.25	%		17,384		20.838997		362,265		0.08	%		-46.26	%
2007		0.25	%		17,132		38.776915		664,326		0.02	%		44.99	%
2006		0.25	%		269,944		26.744182		7,219,431		0.02	%		24.18	%
Ivy Fund Variable Insurance Portfolios, Inc. - Growth (WRGP)
2010		0.25	%		259		13.938364		3,610		0.62	%		12.30	%
2009		0.25	%		225		12.411842		2,793		0.00	%		26.76	%
2008		0.25	%		97		9.791882		950		0.00	%		-36.43	%
Ivy Fund Variable Insurance Portfolios, Inc. - Real Estate Securities  (WRRESP)
2010		0.25	%		504		12.587772		6,344		1.80	%		28.19	%
2009		0.25	%		440		9.819846		4,321		2.06	%		23.31	%
2008		0.25	%		917		7.963301		7,302		0.71	%		-36.20	%
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)
2010		0.25	%		1,173		24.425922		28,652		0.00	%		35.20	%
2009		0.25	%		886		18.066031		16,007		0.00	%		39.95	%
2008		0.25	%		979		12.908594		12,638		0.00	%		-44.50	%
2007		0.25	%		1,284		23.256824		29,862		0.00	%		22.02	%
2006		0.25	%		1,400		19.060374		26,685		0.00	%		14.36	%
Advantage Funds Variable Trust - VT Opportunity Fund (SVOF)
2010		0.25	%		9,786		15.520123		151,880		0.78	%		23.45	%
2009		0.25	%		36,207		12.572347		455,207		0.00	%		47.37	%
2008		0.25	%		61,250		8.531293		522,542		1.86	%		-40.25	%
2007		0.25	%		80,446		14.277593		1,148,575		0.58	%		6.37	%
2006		0.25	%		89,218		13.423088		1,197,581		0.00	%		11.94	%
International Equity Flex I Portfolio (obsolete) (WIEP)
2008		0.25	%		15,749		8.993222		141,634		2.89	%		-41.18	%
2007		0.25	%		4,246		15.289838		64,921		1.13	%		16.30	%
2006		0.25	%		4,214		13.146533		55,399		1.15	%		18.36	%
International Equity Flex II Portfolio (obsolete) (WVCP)
2008		0.25	%		47,447		6.456612		306,347		2.39	%		-46.89	%
2007		0.25	%		26,758		12.155952		325,269		0.00	%		-4.20	%
2006		0.25	%		28,502		12.688555		361,649		0.00	%		12.92	%
J.P. Morgan NVIT Balanced Fund - Class I (obsolete) (BF)
2008		0.25	%		18,652		9.556437		178,247		2.05	%		-25.73	%
2007		0.25	%		122,702		12.867713		1,578,894		2.03	%		4.36	%
2006		0.25	%		293,764		12.329824		3,622,058		1.57	%		11.97	%
NVIT Mid Cap Growth Fund - Class I (obsolete) (SGRF)
2008		0.25	%		7,172		8.073523		57,903		0.00	%		-46.25	%
2007		0.25	%		32,438		15.019468		487,202		0.00	%		8.74	%
2006		0.25	%		29,982		13.812141		414,116		0.00	%		9.63	%
U.S. Equity Flex II Portfolio (obsolete) (WGIP)
2008		0.25	%		4,864		10.186075		49,545		3.11	%		-36.35	%
2007		0.25	%		4,712		16.002005		75,401		1.21	%		1.53	%
2006		0.25	%		10,300		15.760746		162,336		0.91	%		19.05	%
2010		Contract owners equity:								$	182,186,115
2009		Contract owners equity:								$	179,342,661
2008		Contract owners equity:								$	166,504,391
2007		Contract owners equity:								$	269,101,390
2006		Contract owners equity:								$	341,357,796

* This represents the contract expense rate of the variable account for the period 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 owners’ 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 average net assets. The ratios exclude those expenses, such as policy and asset charges, that result in direct reductions to the contract holder accounts through redemption of units. 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 total return for the period. The total return does 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.

**** This represents the date the underlying mutual fund option was initially added and funded.

66