NATIONWIDE

VL SEPARATE

ACCOUNT-C

Annual Report

to

Contract Owners

December 31, 2011

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 Subsidiary 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, 2011, and the related statements of operations for the period then ended, the statements of changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the 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, 2011, 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, 2011, the results of their operations for the period then ended, the changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Columbus, Ohio

March 13, 2012

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Assets:
Investments at fair value:
Global Small Capitalization Fund - Class 2 (AMVGS2)
	353 shares (cost $6,016)	$	6,007
Growth Fund - Class 2 (AMVGR2)
	26,678 shares (cost $1,509,520)		1,378,739
International Fund - Class 2 (AMVI2)
	12,813 shares (cost $214,523)		194,246
Large Cap Core V.I. Fund - Class II (MLVLC2)
	27 shares (cost $635)		614
Calvert VP SRI Equity Portfolio (CVSSE)
	309 shares (cost $5,792)		5,896
Stock Index Fund, Inc. - Initial Shares (DSIF)
	510,268 shares (cost $15,229,213)		15,042,693
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
	586 shares (cost $16,291)		17,525
Insurance Trust - Insurance Trust Diversified Mid Cap Growth Portfolio 1 (OGGO)
	39,813 shares (cost $428,665)		631,825
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)
	4,979 shares (cost $144,133)		138,115
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)
	4,653 shares (cost $153,076)		152,207
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)
	36,729 shares (cost $213,444)		189,890
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)
	51,679 shares (cost $2,274,732)		1,933,825
Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)
	47,204 shares (cost $1,042,108)		883,189
Series Fund - Mid Cap Value Portfolio - Class VC (LOVMCV)
	2,190 shares (cost $33,392)		34,734
Research International Series - Service Class (MVRISC)
	6,989 shares (cost $77,751)		75,412
Value Series - Service Class (MVFSC)
	8,596 shares (cost $98,692)		107,799
Variable Insurance Trust II - International Value Portfolio - Service Class (MVIVSC)
	174,593 shares (cost $2,558,700)		2,617,144
Emerging Markets Debt Portfolio - Class I (MSEM)
	69,224 shares (cost $574,561)		575,248
Mid Cap Growth Portfolio - Class I (MSVMG)
	8,387 shares (cost $92,258)		94,100
U.S. Real Estate Portfolio - Class I (MSVRE)
	89,164 shares (cost $966,471)		1,209,952
Federated NVIT High Income Bond Fund - Class I (HIBF)
	204,053 shares (cost $1,284,501)		1,334,504
NVIT Emerging Markets Fund - Class I (GEM)
	86,863 shares (cost $1,461,503)		882,529
NVIT International Equity Fund - Class I (GIG)
	10,331 shares (cost $86,899)		82,651
NVIT Fund - Class I (TRF)
	31,291 shares (cost $258,023)		283,186
NVIT Government Bond Fund - Class I (GBF)
	417,362 shares (cost $4,913,598)		4,979,130
American Century NVIT Growth Fund - Class I (CAF)
	1,928 shares (cost $22,019)		26,530
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)
	295 shares (cost $2,586)		2,582

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)
	582 shares (cost $5,580)	5,941
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)
	3,297 shares (cost $34,851)	34,055
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
	7,072 shares (cost $71,626)	70,504
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
	623 shares (cost $6,353)	6,470
NVIT Mid Cap Index Fund - Class I (MCIF)
	303,614 shares (cost $4,670,652)	5,328,421
NVIT Money Market Fund - Class I (SAM)
	321,206 shares (cost $321,206)	321,206
NVIT Money Market Fund - Class V (SAM5)
	59,356,423 shares (cost $59,356,423)	59,356,423
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
	15,567 shares (cost $139,423)	145,241
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
	5,985 shares (cost $51,602)	48,236
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
	639 shares (cost $6,362)	6,514
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)
	15,184 shares (cost $241,153)	232,763
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)
	27,041 shares (cost $242,107)	267,162
NVIT Multi-Manager Small Company Fund - Class I (SCF)
	100,904 shares (cost $1,383,989)	1,712,339
NVIT Multi-Sector Bond Fund - Class I (MSBF)
	5,004 shares (cost $43,759)	43,387
Van Kampen NVIT Comstock Value Fund - Class I (EIF)
	1,872 shares (cost $17,278)	18,273
VPS Growth and Income Portfolio - Class A (ALVGIA)
	2,399 shares (cost $36,650)	43,307
VPS International Value Portfolio - Class A (ALVIVA)
	59,718 shares (cost $798,843)	686,755
VP Balanced Fund - Class I (ACVB)
	40,111 shares (cost $223,655)	261,125
VP Capital Appreciation Fund - Class I (ACVCA)
	30,098 shares (cost $309,132)	397,901
VP Income & Growth Fund - Class I (ACVIG)
	72,844 shares (cost $379,039)	447,263
VP International Fund - Class I (ACVI)
	131,816 shares (cost $1,173,252)	979,392
VP Mid Cap Value Fund - Class I (ACVMV1)
	20,518 shares (cost $272,506)	276,988
VP Ultra(R) Fund - Class I (ACVU1)
	3,961 shares (cost $35,960)	37,548
VP Value Fund - Class I (ACVV)
	125,826 shares (cost $569,682)	729,791
VP Vista(SM) Fund - Class I (ACVVS1)
	2,896 shares (cost $35,930)	43,585
MidCap Stock Portfolio - Initial Shares (DVMCS)
	1,402 shares (cost $15,248)	18,448
Small Cap Stock Index Portfolio - Service Shares (DVSCS)
	432,990 shares (cost $4,351,127)	5,269,487
Appreciation Portfolio - Initial Shares (DCAP)
	13,493 shares (cost $406,575)	512,730
Growth and Income Portfolio - Initial Shares (DGI)
	7,635 shares (cost $126,002)	144,759

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

International Value Portfolio - Initial Shares (DVIV)
	35,433 shares (cost $356,871)	317,480
Quality Bond Fund II - Primary Shares (FQB)
	24,187 shares (cost $273,895)	271,140
Equity-Income Portfolio - Initial Class (FEIP)
	2,294 shares (cost $35,446)	42,878
High Income Portfolio - Initial Class (FHIP)
	9,407 shares (cost $48,060)	50,701
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)
	246,015 shares (cost $3,082,748)	3,395,004
VIP Fund - Contrafund Portfolio - Initial Class (FCP)
	6,548 shares (cost $132,196)	150,738
VIP Fund - Contrafund Portfolio - Service Class (FCS)
	83,747 shares (cost $2,080,745)	1,922,004
VIP Fund - Equity-Income Portfolio - Service Class (FEIS)
	18,628 shares (cost $303,800)	347,040
VIP Fund - Growth Opportunities Portfolio - Initial Class (FGOP)
	860 shares (cost $12,173)	15,744
VIP Fund - Growth Opportunities Portfolio - Service Class (FGOS)
	64,959 shares (cost $1,107,169)	1,186,798
VIP Fund - Growth Portfolio - Initial Class (FGP)
	1,352 shares (cost $48,683)	49,880
VIP Fund - Growth Portfolio - Service Class (FGS)
	17,177 shares (cost $500,271)	632,294
VIP Fund - High Income Portfolio - Service Class (FHIS)
	15,010 shares (cost $84,246)	80,453
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)
	3,354 shares (cost $44,249)	43,136
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)
	46,224 shares (cost $1,216,330)	1,337,267
VIP Fund - Overseas Portfolio - Initial Class (FOP)
	1,785 shares (cost $25,490)	24,330
VIP Fund - Overseas Portfolio - Service Class (FOS)
	10,283 shares (cost $160,913)	139,639
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)
	2,108 shares (cost $13,994)	18,465
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)
	225,955 shares (cost $3,715,368)	3,509,082
Templeton Foreign Securities Fund - Class 2 (TIF2)
	12,676 shares (cost $169,318)	159,205
Templeton Global Bond Securities Fund - Class 2 (FTVGI2)
	33,641 shares (cost $632,122)	610,588
Goldman Sachs VIT - Goldman Sachs Mid Cap Value Fund - Institutional Shares (GVMCE)
	106,575 shares (cost $1,151,742)	1,395,068
Lincoln VIP Trust - Baron Growth Opportunities Funds - Service Class (BNCAI)
	6,690 shares (cost $152,205)	210,669
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)
	8,408 shares (cost $92,555)	90,727
Growth Portfolio - I Class Shares (AMTG)
	10,844 shares (cost $127,324)	201,381
Guardian Portfolio - I Class Shares (AMGP)
	4,354 shares (cost $67,216)	79,631
Mid-Cap Growth Portfolio - I Class Shares (AMCG)
	1,258 shares (cost $31,044)	34,646
Partners Portfolio - I Class Shares (AMTP)
	31,106 shares (cost $266,474)	310,750
Small-Cap Growth Portfolio - S Class Shares (AMFAS)
	341 shares (cost $3,605)	4,141

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Balanced Fund/VA - Non-Service Shares (OVMS)
	27,543 shares (cost $304,379)		311,240
Capital Appreciation Fund/VA - Non-Service Shares (OVGR)
	16,596 shares (cost $498,343)		659,689
Core Bond Fund/VA - Non-Service Shares (OVB)
	37,065 shares (cost $293,750)		292,074
Global Securities Fund/VA - Non-Service Shares (OVGS)
	51,153 shares (cost $1,118,135)		1,404,655
Main Street Fund(R)/VA - Non-Service Shares (OVGI)
	5,786 shares (cost $106,503)		119,827
Mid-Cap Growth Fund/VA - Non-Service Shares (OVAG)
	2,736 shares (cost $102,394)		128,754
All Asset Portfolio - Administrative Class (PMVAAA)
	305,928 shares (cost $3,218,515)		3,190,829
Low Duration Portfolio - Administrative Class (PMVLDA)
	128,840 shares (cost $1,339,910)		1,337,361
Real Return Portfolio - Administrative Class (PMVRRA)
	373,790 shares (cost $4,754,975)		5,214,374
Total Return Portfolio - Administrative Class (PMVTRA)
	2,626,945 shares (cost $29,399,365)		28,948,937
Variable Contracts Trust - High Yield VCT Portfolio - Class I Shares (PIHYB1)
	3,174 shares (cost $31,122)		31,487
Growth and Income Portfolio - Class I (ACGI)
	27,873 shares (cost $486,519)		495,311
V.I. Basic Value Fund - Series I (AVBVI)
	896 shares (cost $5,429)		5,485
V.I. Capital Development Fund - Series I (AVCDI)
	277 shares (cost $2,548)		3,444
V.I. International Growth Fund - Series I (AVIE)
	3,467 shares (cost $93,659)		91,428
Micro-Cap Portfolio - Investment Class (ROCMC)
	177,123 shares (cost $2,068,943)		1,843,845
Equity Income Portfolio - II (TREI2)
	68,393 shares (cost $1,204,780)		1,324,778
Mid-Cap Growth Portfolio - II (TRMCG2)
	10,019 shares (cost $241,615)		208,595
New America Growth Portfolio (TRNAG1)
	11,596 shares (cost $236,759)		234,930
VIP Trust - Global Bond Fund: Initial Class (VWBF)
	31,889 shares (cost $353,574)		373,419
VIP Trust - Emerging Markets Fund: Initial Class (VWEM)
	114,209 shares (cost $1,590,918)		1,187,773
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)
	20,974 shares (cost $709,507)		644,946
Ivy Fund Variable Insurance Portfolios, Inc. - Growth (WRGP)
	289 shares (cost $2,520)		2,940
Ivy Fund Variable Insurance Portfolios, Inc. - Real Estate Securities (WRRESP)
	2,929 shares (cost $16,428)		19,788
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)
	1,379 shares (cost $21,168)		29,469
Advantage VT Opportunity Fund - Class 2 (SVOF)
	3,046 shares (cost $39,297)		52,935
Total Investments		$	175,115,478
Other Accounts Payable			(2,400	)
Accounts Payable-NVIT International Index Fund - Class II (GVIX2)			(970	)
		$	175,112,108

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Contract Owners’ Equity:
Accumulation units		175,112,108
Total Contract Owners’ Equity (note 8)	$	175,112,108

See accompanying notes to financial statements.

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	Total			AMVGS2			AMVGR2			AMVI2			MLVLC2			CVSSE			DSIF			DSRG
Reinvested dividends	$	2,137,088			1			7,680			3,253			1,545			-			427,410			153
Asset charges (note 3)		(424,603	)		(2	)		(1,806	)		(76	)		(1,670	)		(16	)		(56,063	)		(44	)
Net investment income (loss)		1,712,485			(1	)		5,874			3,177			(125	)		(16	)		371,347			109
Realized gain (loss) on investments		5,158,382			-			(15,541	)		(339	)		(363,309	)		277			(282,671	)		2,643
Change in unrealized gain (loss) on investments		(11,506,115	)		(9	)		(130,781	)		(20,277	)		(56	)		(317	)		(943,818	)		(2,388	)
Net gain (loss) on investments		(6,347,733	)		(9	)		(146,322	)		(20,616	)		(363,365	)		(40	)		(1,226,489	)		255
Reinvested capital gains		1,027,172			-			-			-			-			-			205,511			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(3,608,076	)		(10	)		(140,448	)		(17,439	)		(363,490	)		(56	)		(649,631	)		364
Investment Activity:	OGGO			JABS			JACAS			JAGTS			JAIGS			LZREMS			LOVMCV			MVRISC
Reinvested dividends	$	-			2,605			504			-			9,919			19,013			77			1,537
Asset charges (note 3)		(2,196	)		(230	)		(463	)		(1,693	)		(6,386	)		(1,555	)		(85	)		(222	)
Net investment income (loss)		(2,196	)		2,375			41			(1,693	)		3,533			17,458			(8	)		1,315
Realized gain (loss) on investments		127,405			1,380			27,684			209,115			(13,931	)		(5,842	)		903			(975	)
Change in unrealized gain (loss) on investments		(159,810	)		(7,302	)		(35,457	)		(184,782	)		(977,474	)		(158,919	)		(1,783	)		(10,514	)
Net gain (loss) on investments		(32,405	)		(5,922	)		(7,773	)		24,333			(991,405	)		(164,761	)		(880	)		(11,489	)
Reinvested capital gains		-			4,343			-			-			26,090			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(34,601	)		796			(7,732	)		22,640			(961,782	)		(147,303	)		(888	)		(10,174	)

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	MVFSC			MVIVSC			MSEM			MSVMG			MSVRE			HIBF			GEM			GIG
Reinvested dividends	$	1,045			21,832			1,081			173			9,861			119,087			7,351			1,035
Asset charges (note 3)		(220	)		(5,362	)		(309	)		(152	)		(2,663	)		(3,483	)		(2,612	)		(172	)
Net investment income (loss)		825			16,470			772			21			7,198			115,604			4,739			863
Realized gain (loss) on investments		419			10,303			3,535			23,259			51,964			121,377			(9,406	)		12,549
Change in unrealized gain (loss) on investments		309			(84,598	)		(2,363	)		(27,235	)		(5,710	)		(178,436	)		(254,031	)		(22,571	)
Net gain (loss) on investments		728			(74,295	)		1,172			(3,976	)		46,254			(57,059	)		(263,437	)		(10,022	)
Reinvested capital gains		332			-			337			22			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,885			(57,825	)		2,281			(3,933	)		53,452			58,545			(258,698	)		(9,159	)
Investment Activity:	TRF			GBF			CAF			GVIX2			GVIDA			GVIDC			GVIDM			GVDMA
Reinvested dividends	$	2,641			141,809			157			-			58			140			7,449			1,100
Asset charges (note 3)		(473	)		(11,451	)		(65	)		(1	)		(8	)		(14	)		(725	)		(136	)
Net investment income (loss)		2,168			130,358			92			(1	)		50			126			6,724			964
Realized gain (loss) on investments		(461	)		11,500			5,849			(64	)		358			4			81,016			257
Change in unrealized gain (loss) on investments		(580	)		175,302			(5,988	)		-			(423	)		2			(74,765	)		(3,555	)
Net gain (loss) on investments		(1,041	)		186,802			(139	)		(64	)		(65	)		6			6,251			(3,298	)
Reinvested capital gains		-			14,521			-			-			-			21			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,127			331,681			(47	)		(65	)		(15	)		153			12,975			(2,334	)

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	GVDMC			MCIF			SAM			SAM5			NVMLG1			NVMLV1			NVMMG1			SCGF
Reinvested dividends	$	139			46,497			-			36			11			552			-			-
Asset charges (note 3)		(15	)		(11,985	)		(809	)		(135,166	)		(374	)		(119	)		(51	)		(1,335	)
Net investment income (loss)		124			34,512			(809	)		(135,130	)		(363	)		433			(51	)		(1,335	)
Realized gain (loss) on investments		57			397,342			-			-			1,718			(616	)		6,518			125,601
Change in unrealized gain (loss) on investments		(49	)		(709,585	)		-			-			(5,943	)		(4,283	)		(7,350	)		(34,409	)
Net gain (loss) on investments		8			(312,243	)		-			-			(4,225	)		(4,899	)		(832	)		91,192
Reinvested capital gains		-			96,280			-			-			-			1,725			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	132			(181,451	)		(809	)		(135,130	)		(4,588	)		(2,741	)		(883	)		89,857
Investment Activity:	SCVF			SCF			MSBF			EIF			ALVGIA			ALVIVA			ACVB			ACVCA
Reinvested dividends	$	1,269			12,203			17,215			319			419			33,454			4,982			-
Asset charges (note 3)		(1,006	)		(5,676	)		(1,330	)		(68	)		(92	)		(1,914	)		(651	)		(1,093	)
Net investment income (loss)		263			6,527			15,885			251			327			31,540			4,331			(1,093	)
Realized gain (loss) on investments		575,052			222,080			33,308			16,711			1,588			(6,981	)		397			11,653
Change in unrealized gain (loss) on investments		(537,771	)		(376,442	)		(18,633	)		(15,118	)		(423	)		(191,213	)		8,239			(39,358	)
Net gain (loss) on investments		37,281			(154,362	)		14,675			1,593			1,165			(198,194	)		8,636			(27,705	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	37,544			(147,835	)		30,560			1,844			1,492			(166,654	)		12,967			(28,798	)

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	ACVIG			ACVI			ACVMV1			ACVU1			ACVV			ACVVS1			DVMCS			DVSCS
Reinvested dividends	$	6,996			17,244			1,134			-			15,993			-			91			37,858
Asset charges (note 3)		(1,120	)		(2,925	)		(114	)		(86	)		(1,960	)		(115	)		(44	)		(11,919	)
Net investment income (loss)		5,876			14,319			1,020			(86	)		14,033			(115	)		47			25,939
Realized gain (loss) on investments		(12,795	)		(72,444	)		43			2,106			44,093			(668	)		476			21,221
Change in unrealized gain (loss) on investments		12,637			(79,355	)		4,482			(1,785	)		(54,469	)		(2,830	)		(543	)		(65,854	)
Net gain (loss) on investments		(158	)		(151,799	)		4,525			321			(10,376	)		(3,498	)		(67	)		(44,633	)
Reinvested capital gains		-			-			-			-			-			-			-			15,143
Net increase (decrease) in contract owners’ equity resulting from operations	$	5,718			(137,480	)		5,545			235			3,657			(3,613	)		(20	)		(3,551	)
Investment Activity:	DCAP			DGI			DVIV			FQB			FEIP			FHIP			FAMP			FCP
Reinvested dividends	$	7,612			1,929			17,009			24,902			1,112			3,501			70,242			1,613
Asset charges (note 3)		(1,181	)		(380	)		(1,872	)		(1,024	)		(103	)		(120	)		(9,228	)		(368	)
Net investment income (loss)		6,431			1,549			15,137			23,878			1,009			3,381			61,014			1,245
Realized gain (loss) on investments		851			(96	)		(77,660	)		18,559			(151	)		(72	)		(97,811	)		255
Change in unrealized gain (loss) on investments		32,788			(6,179	)		(68,355	)		(30,852	)		(533	)		(1,524	)		(59,387	)		(5,907	)
Net gain (loss) on investments		33,639			(6,275	)		(146,015	)		(12,293	)		(684	)		(1,596	)		(157,198	)		(5,652	)
Reinvested capital gains		-			-			-			-			-			-			17,065			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	40,070			(4,726	)		(130,878	)		11,585			325			1,785			(79,119	)		(4,407	)

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	FCS			FEIS			FGOP			FGOS			FGP			FGS			FHIS			FIGBS
Reinvested dividends	$	18,655			8,647			26			592			194			1,747			5,881			1,358
Asset charges (note 3)		(6,761	)		(891	)		(38	)		(2,879	)		(124	)		(1,786	)		(575	)		(96	)
Net investment income (loss)		11,894			7,756			(12	)		(2,287	)		70			(39	)		5,306			1,262
Realized gain (loss) on investments		563,162			51,992			4			23,333			(145	)		(9,924	)		(47,578	)		148
Change in unrealized gain (loss) on investments		(914,826	)		(52,558	)		293			(13,909	)		(140	)		6,369			73,244			111
Net gain (loss) on investments		(351,664	)		(566	)		297			9,424			(285	)		(3,555	)		25,666			259
Reinvested capital gains		-			-			-			-			176			2,461			-			1,025
Net increase (decrease) in contract owners’ equity resulting from operations	$	(339,770	)		7,190			285			7,137			(39	)		(1,133	)		30,972			2,546
Investment Activity:	FMCS			FOP			FOS			FVSS			FTVSV2			TIF2			FTVGI2			GVMCE
Reinvested dividends	$	2,213			404			2,138			184			28,964			2,602			-			11,566
Asset charges (note 3)		(2,866	)		(69	)		(511	)		(46	)		(9,548	)		(406	)		(243	)		(5,038	)
Net investment income (loss)		(653	)		335			1,627			138			19,416			2,196			(243	)		6,528
Realized gain (loss) on investments		30,282			(515	)		14,889			655			46,401			920			(128	)		215,991
Change in unrealized gain (loss) on investments		(185,841	)		(4,631	)		(46,204	)		(2,535	)		(327,776	)		(22,361	)		(21,533	)		(336,789	)
Net gain (loss) on investments		(155,559	)		(5,146	)		(31,315	)		(1,880	)		(281,375	)		(21,441	)		(21,661	)		(120,798	)
Reinvested capital gains		2,535			54			449			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(153,677	)		(4,757	)		(29,239	)		(1,742	)		(261,959	)		(19,245	)		(21,904	)		(114,270	)

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	BNCAI			AMTB			AMTG			AMGP			AMCG			AMTP			AMFAS			OVMS
Reinvested dividends	$	-			3,730			-			387			-			-			-			7,263
Asset charges (note 3)		(593	)		(233	)		(529	)		(187	)		(184	)		(877	)		(14	)		(804	)
Net investment income (loss)		(593	)		3,497			(529	)		200			(184	)		(877	)		(14	)		6,459
Realized gain (loss) on investments		63,927			(1,050	)		1,926			4,768			26,547			20,685			2,219			(7,634	)
Change in unrealized gain (loss) on investments		(54,539	)		(2,410	)		(2,453	)		(7,863	)		(17,612	)		(57,272	)		(1,789	)		2,982
Net gain (loss) on investments		9,388			(3,460	)		(527	)		(3,095	)		8,935			(36,587	)		430			(4,652	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	8,795			37			(1,056	)		(2,895	)		8,751			(37,464	)		416			1,807
Investment Activity:	OVGR			OVB			OVGS			OVGI			OVAG			PMVAAA			PMVFBA			PMVLDA
Reinvested dividends	$	7,114			16,511			22,051			1,010			-			94,402			2,110			22,994
Asset charges (note 3)		(3,025	)		(724	)		(4,297	)		(299	)		(571	)		(1,788	)		(280	)		(3,415	)
Net investment income (loss)		4,089			15,787			17,754			711			(571	)		92,614			1,830			19,579
Realized gain (loss) on investments		202,412			(11,868	)		1,618			(677	)		72,734			171			(17,748	)		8,294
Change in unrealized gain (loss) on investments		(139,611	)		18,222			(157,449	)		(331	)		(49,655	)		(27,362	)		21,164			(16,786	)
Net gain (loss) on investments		62,801			6,354			(155,831	)		(1,008	)		23,079			(27,191	)		3,416			(8,492	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	66,890			22,141			(138,077	)		(297	)		22,508			65,423			5,246			11,087

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	PMVRRA			PMVTRA			PIHYB1			ACGI			AVBVI			AVCDI			AVIE			ROCMC
Reinvested dividends	$	100,084			500,926			1,590			-			45			-			1,020			49,545
Asset charges (note 3)		(12,101	)		(39,287	)		(74	)		(198	)		(17	)		(9	)		(178	)		(7,251	)
Net investment income (loss)		87,983			461,639			1,516			(198	)		28			(9	)		842			42,294
Realized gain (loss) on investments		117,579			182,859			667			167			768			110			(1,022	)		863,866
Change in unrealized gain (loss) on investments		156,485			(445,902	)		(2,505	)		8,792			(638	)		(345	)		(5,668	)		(1,170,632	)
Net gain (loss) on investments		274,064			(263,043	)		(1,838	)		8,959			130			(235	)		(6,690	)		(306,766	)
Reinvested capital gains		150,651			415,552			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	512,698			614,148			(322	)		8,761			158			(244	)		(5,848	)		(264,472	)
Investment Activity:	TREI2			TRMCG2			TRNAG1			VWBF			VWEM			VWHA			WRGP			WRRESP
Reinvested dividends	$	30,077			-			531			28,684			16,326			20,879			12			48
Asset charges (note 3)		(5,541	)		(2,541	)		(1,202	)		(931	)		(6,566	)		(2,759	)		(8	)		(20	)
Net investment income (loss)		24,536			(2,541	)		(671	)		27,753			9,760			18,120			4			28
Realized gain (loss) on investments		199,363			313,431			177,610			92			439,583			270,504			338			292
Change in unrealized gain (loss) on investments		(308,136	)		(344,041	)		(191,688	)		(7,488	)		(937,216	)		(341,490	)		(368	)		636
Net gain (loss) on investments		(108,773	)		(30,610	)		(14,078	)		(7,396	)		(497,633	)		(70,986	)		(30	)		928
Reinvested capital gains		-			24,614			18,481			7,313			-			22,357			114			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(84,237	)		(8,537	)		3,732			27,670			(487,873	)		(30,509	)		88			956

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	SVDF			SVOF			CSIEF3			GEF			WSCP
Reinvested dividends	$	-			77			9,738			426			1,489
Asset charges (note 3)		(72	)		(200	)		(638	)		(133	)		(584	)
Net investment income (loss)		(72	)		(123	)		9,100			293			905
Realized gain (loss) on investments		275			27,718			(14,605	)		35,094			78,289
Change in unrealized gain (loss) on investments		(342	)		(23,439	)		(43,725	)		(34,379	)		(93,843	)
Net gain (loss) on investments		(67	)		4,279			(58,330	)		715			(15,554	)
Reinvested capital gains		-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(139	)		4,156			(49,230	)		1,008			(14,649	)

See accompanying notes to financial statements.

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	Total						AMVGS2					AMVGR2					AMVI2
	2011			2010			2011			2010		2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	1,712,485			1,718,428			(1	)		-		5,874			-		3,177			-
Realized gain (loss) on investments		5,158,382			(5,302,366	)		-			-		(15,541	)		-		(339	)		-
Change in unrealized gain (loss) on investments		(11,506,115	)		20,299,570			(9	)		-		(130,781	)		-		(20,277	)		-
Reinvested capital gains		1,027,172			808,512			-			-		-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(3,608,076	)		17,524,144			(10	)		-		(140,448	)		-		(17,439	)		-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		2,072,874			935,548			-			-		-			-		-			-
Transfers between funds		-			-			6,033			-		1,527,897			-		212,329			-
Surrenders (note 6)		(2,738,285	)		(11,485,735	)		-			-		-			-		-			-
Death Benefits (note 4)		-			(534,288	)		-			-		-			-		-			-
Net policy repayments (loans) (note 5)		(657	)		(282,868	)		-			-		-			-		-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(2,800,390	)		(3,415,692	)		(21	)		-		(8,709	)		-		(644	)		-
Adjustments to maintain reserves		527			102,345			7			-		(4	)		-		(1	)		-
Net equity transactions		(3,465,931	)		(14,680,690	)		6,019			-		1,519,184			-		211,684			-
Net change in contract owners’ equity		(7,074,007	)		2,843,454			6,009			-		1,378,736			-		194,245			-
Contract owners’ equity beginning of period		182,186,115			179,342,661			-			-		-			-		-			-
Contract owners’ equity end of period	$	175,112,108			182,186,115			6,009			-		1,378,736			-		194,245			-
CHANGES IN UNITS:
Beginning units		13,007,535			14,543,050			-			-		-			-		-			-
Units purchased		3,067,042			1,788,681			670			-		142,005			-		24,857			-
Units redeemed		(3,423,334	)		(3,324,196	)		(2	)		-		(3,380	)		-		(84	)		-
Ending units		12,651,243			13,007,535			668			-		138,625			-		24,773			-

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	MLVLC2						CVSSE						DSIF						DSRG
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(125	)		3			(16	)		(22	)		371,347			335,795			109			231
Realized gain (loss) on investments		(363,309	)		138			277			3,074			(282,671	)		(1,948,576	)		2,643			4,698
Change in unrealized gain (loss) on investments		(56	)		(55	)		(317	)		(1,784	)		(943,818	)		4,398,821			(2,388	)		(276	)
Reinvested capital gains		-			-			-			-			205,511			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(363,490	)		86			(56	)		1,268			(649,631	)		2,786,040			364			4,653
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			-			118,570			142,933			-			5
Transfers between funds		371,437			462			(1,013	)		2,013			(13,410,099	)		11,421,092			(9,426	)		2,786
Surrenders (note 6)		-			(535	)		-			(8,016	)		(155,429	)		(1,874,213	)		-			(13,564	)
Death Benefits (note 4)		-			-			-			-			-			(73,850	)		-			-
Net policy repayments (loans) (note 5)		-			-			-			-			(233	)		(143,746	)		-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(7,768	)		(14	)		(187	)		(297	)		(328,483	)		(321,755	)		(557	)		(728	)
Adjustments to maintain reserves		(5	)		(7	)		(5	)		8			(15	)		(2,360	)		-			4
Net equity transactions		363,664			(94	)		(1,205	)		(6,292	)		(13,775,689	)		9,148,101			(9,983	)		(11,497	)
Net change in contract owners’ equity		174			(8	)		(1,261	)		(5,024	)		(14,425,320	)		11,934,141			(9,619	)		(6,844	)
Contract owners’ equity beginning of period		439			447			7,160			12,184			29,468,009			17,533,868			27,146			33,990
Contract owners’ equity end of period	$	613			439			5,899			7,160			15,042,689			29,468,009			17,527			27,146
CHANGES IN UNITS:
Beginning units		38			42			424			844			2,455,050			1,631,128			2,396			3,436
Units purchased		708			44			-			77			150,259			1,034,248			25			237
Units redeemed		(694	)		(48	)		(69	)		(497	)		(1,395,009	)		(210,326	)		(884	)		(1,277	)
Ending units		52			38			355			424			1,210,300			2,455,050			1,537			2,396

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	OGGO						JABS						JACAS						JAGTS
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(2,196	)		(2,683	)		2,375			4,016			41			(26	)		(1,693	)		(2,488	)
Realized gain (loss) on investments		127,405			(29,625	)		1,380			(11,276	)		27,684			14,502			209,115			439,415
Change in unrealized gain (loss) on investments		(159,810	)		281,255			(7,302	)		(4,735	)		(35,457	)		(1,694	)		(184,782	)		(104,930	)
Reinvested capital gains		-			-			4,343			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(34,601	)		248,947			796			(11,995	)		(7,732	)		12,782			22,640			331,997
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			33,993			-			22,444			597			-			(18,051	)
Transfers between funds		(248,412	)		(502,165	)		54,348			11,165			(72,410	)		28,383			(1,491,629	)		(344,457	)
Surrenders (note 6)		(90,482	)		(115,837	)		(12	)		(42,161	)		(6	)		(20,740	)		-			(85,287	)
Death Benefits (note 4)		-			-			-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(9,754	)		(11,735	)		(3,217	)		(3,622	)		(5,929	)		(7,044	)		(10,457	)		(12,197	)
Adjustments to maintain reserves		7			6,224			(16	)		13			10			18			622			19,815
Net equity transactions		(348,641	)		(623,513	)		85,096			(34,605	)		(55,891	)		1,214			(1,501,464	)		(440,177	)
Net change in contract owners’ equity		(383,242	)		(374,566	)		85,892			(46,600	)		(63,623	)		13,996			(1,478,824	)		(108,180	)
Contract owners’ equity beginning of period		1,015,069			1,389,635			52,222			98,822			215,833			201,837			1,668,762			1,776,942
Contract owners’ equity end of period	$	631,827			1,015,069			138,114			52,222			152,210			215,833			189,938			1,668,762
CHANGES IN UNITS:
Beginning units		48,346			82,943			2,884			5,886			19,884			19,750			298,426			394,308
Units purchased		70			206			4,836			-			2,536			2,761			810			2,505
Units redeemed		(16,271	)		(34,803	)		(176	)		(3,002	)		(7,314	)		(2,627	)		(261,957	)		(98,387	)
Ending units		32,145			48,346			7,544			2,884			15,106			19,884			37,279			298,426

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	JAIGS						LZREMS						LOVMCV						MVRISC
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	3,533			7,305			17,458			(1,008	)		(8	)		(116	)		1,315			948
Realized gain (loss) on investments		(13,931	)		182,590			(5,842	)		383,767			903			43,716			(975	)		(566	)
Change in unrealized gain (loss) on investments		(977,474	)		459,273			(158,919	)		-			(1,783	)		(23,595	)		(10,514	)		8,180
Reinvested capital gains		26,090			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(961,782	)		649,168			(147,303	)		382,759			(888	)		20,005			(10,174	)		8,562
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		14,389			901			90,071			-			-			-			-			-
Transfers between funds		(65,612	)		(477,536	)		953,752			(378,941	)		12			(47,139	)		(3,864	)		-
Surrenders (note 6)		-			(60,523	)		-			-			-			(38,623	)		-			-
Death Benefits (note 4)		-			-			-			-			-			-			-			-
Net policy repayments (loans) (note 5)		(582	)		(59,142	)		-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(47,092	)		(49,222	)		(13,329	)		(3,821	)		(984	)		(2,884	)		(3,843	)		(3,335	)
Adjustments to maintain reserves		(29	)		99			(8	)		3			3			7			2			7
Net equity transactions		(98,926	)		(645,423	)		1,030,486			(382,759	)		(969	)		(88,639	)		(7,705	)		(3,328	)
Net change in contract owners’ equity		(1,060,708	)		3,745			883,183			-			(1,857	)		(68,634	)		(17,879	)		5,234
Contract owners’ equity beginning of period		2,994,525			2,990,780			-			-			36,593			105,227			93,289			88,055
Contract owners’ equity end of period	$	1,933,817			2,994,525			883,183			-			34,736			36,593			75,410			93,289
CHANGES IN UNITS:
Beginning units		154,714			192,694			-			-			3,024			10,880			10,732			11,163
Units purchased		1,487			1,527			97,607			-			41			91			-			-
Units redeemed		(8,170	)		(39,507	)		(2,797	)		-			(67	)		(7,947	)		(954	)		(431	)
Ending units		148,031			154,714			94,810			-			2,998			3,024			9,778			10,732

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	MVFSC						MVIVSC						MSEM						MSVMG
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	825			826			16,470			16,049			772			1,146			21			(182	)
Realized gain (loss) on investments		419			58			10,303			190			3,535			1,760			23,259			17,466
Change in unrealized gain (loss) on investments		309			7,331			(84,598	)		163,751			(2,363	)		(337	)		(27,235	)		3,861
Reinvested capital gains		332			-			-			-			337			-			22			-
Net increase (decrease) in contract owners’ equity resulting from operations		1,885			8,215			(57,825	)		179,990			2,281			2,569			(3,933	)		21,145
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			(45,944	)		-			-			-			83
Transfers between funds		26,496			-			644,183			500,376			547,537			12,718			30,769			(16,631	)
Surrenders (note 6)		-			-			(6,880	)		(170,058	)		-			(7,518	)		-			(8,296	)
Death Benefits (note 4)		-			-			-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(3,713	)		(3,029	)		(25,383	)		(17,779	)		(4,735	)		(1,203	)		(1,791	)		(1,574	)
Adjustments to maintain reserves		(6	)		8			2,139			46,947			12			3			(21	)		(84	)
Net equity transactions		22,777			(3,021	)		614,059			313,542			542,814			4,000			28,957			(26,502	)
Net change in contract owners’ equity		24,662			5,194			556,234			493,532			545,095			6,569			25,024			(5,357	)
Contract owners’ equity beginning of period		83,135			77,941			2,060,906			1,567,374			30,163			23,594			69,071			74,428
Contract owners’ equity end of period	$	107,797			83,135			2,617,140			2,060,906			575,258			30,163			94,095			69,071
CHANGES IN UNITS:
Beginning units		9,308			9,681			144,340			119,114			1,169			1,001			5,561			7,909
Units purchased		3,262			-			53,783			26,613			21,585			510			2,757			411
Units redeemed		(414	)		(373	)		(11,044	)		(1,387	)		(1,872	)		(342	)		(141	)		(2,759	)
Ending units		12,156			9,308			187,079			144,340			20,882			1,169			8,177			5,561

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	MSVRE						HIBF						GEM						GIG
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	7,198			13,761			115,604			137,331			4,739			(1,954	)		863			388
Realized gain (loss) on investments		51,964			168,259			121,377			(8,309	)		(9,406	)		(11,498	)		12,549			10,624
Change in unrealized gain (loss) on investments		(5,710	)		117,847			(178,436	)		69,901			(254,031	)		172,343			(22,571	)		(3,056	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		53,452			299,867			58,545			198,923			(258,698	)		158,891			(9,159	)		7,956
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		52,939			27,752			68,132			61,967			-			-			-			131
Transfers between funds		279,259			(691,389	)		(486,916	)		41,679			6,683			15,793			33,410			(22,400	)
Surrenders (note 6)		-			(9,265	)		-			(77,820	)		-			(814	)		-			(3,195	)
Death Benefits (note 4)		-			(13,417	)		-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			8			(39,452	)		-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(31,330	)		(47,074	)		(22,097	)		(28,622	)		(23,796	)		(21,941	)		(1,694	)		(1,387	)
Adjustments to maintain reserves		5			101			(3	)		(6	)		7			10			5			(145	)
Net equity transactions		300,873			(733,292	)		(440,876	)		(42,254	)		(17,106	)		(6,952	)		31,721			(26,996	)
Net change in contract owners’ equity		354,325			(433,425	)		(382,331	)		156,669			(275,804	)		151,939			22,562			(19,040	)
Contract owners’ equity beginning of period		855,641			1,289,066			1,716,834			1,560,165			1,158,332			1,006,393			60,092			79,132
Contract owners’ equity end of period	$	1,209,966			855,641			1,334,503			1,716,834			882,528			1,158,332			82,654			60,092
CHANGES IN UNITS:
Beginning units		29,662			57,931			92,350			94,725			40,199			40,474			4,554			6,777
Units purchased		11,365			1,965			3,643			5,831			289			728			4,908			297
Units redeemed		(958	)		(30,234	)		(26,472	)		(8,206	)		(934	)		(1,003	)		(2,503	)		(2,520	)
Ending units		40,069			29,662			69,521			92,350			39,554			40,199			6,959			4,554

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	TRF						GBF						CAF						GVIX2
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	2,168			1,429			130,358			115,547			92			123			(1	)		75,848
Realized gain (loss) on investments		(461	)		(3,173	)		11,500			21,032			5,849			3,566			(64	)		(1,135,726	)
Change in unrealized gain (loss) on investments		(580	)		27,337			175,302			(96,681	)		(5,988	)		2,763			-			1,701,181
Reinvested capital gains		-			-			14,521			153,539			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		1,127			25,593			331,681			193,437			(47	)		6,452			(65	)		641,303
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		17,570			10,550			498,372			418,068			-			11			-			496
Transfers between funds		69,785			(30,855	)		186,429			(336,311	)		(7,587	)		(5,960	)		1,032			(5,174,800	)
Surrenders (note 6)		-			(1,339	)		(55	)		(151,169	)		-			(805	)		-			1
Death Benefits (note 4)		-			(127	)		-			(43,388	)		-			(79	)		-			(29,460	)
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(3,963	)		(4,087	)		(125,034	)		(217,932	)		(1,072	)		(1,155	)		(4	)		(35,571	)
Adjustments to maintain reserves		7			(7	)		7			(57	)		(2	)		(7	)		7			(402	)
Net equity transactions		83,399			(25,865	)		559,719			(330,789	)		(8,661	)		(7,995	)		1,035			(5,239,736	)
Net change in contract owners’ equity		84,526			(272	)		891,400			(137,352	)		(8,708	)		(1,543	)		970			(4,598,433	)
Contract owners’ equity beginning of period		198,662			198,934			4,087,730			4,225,082			35,238			36,781			-			4,598,433
Contract owners’ equity end of period	$	283,188			198,662			4,979,130			4,087,730			26,530			35,238			970			-
CHANGES IN UNITS:
Beginning units		17,101			19,379			216,088			233,432			4,363			5,417			-			623,586
Units purchased		7,490			1,874			38,869			22,783			41			138			142			57,703
Units redeemed		(441	)		(4,152	)		2,614			(40,127	)		(1,088	)		(1,192	)		(1	)		(681,289	)
Ending units		24,150			17,101			257,571			216,088			3,316			4,363			141			-

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	GVIDA						GVIDC						GVIDM						GVDMA
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	50			72			126			113			6,724			9,501			964			794
Realized gain (loss) on investments		358			1,289			4			(2	)		81,016			5,368			257			12,244
Change in unrealized gain (loss) on investments		(423	)		(535	)		2			187			(74,765	)		38,037			(3,555	)		(6,244	)
Reinvested capital gains		-			-			21			15			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(15	)		826			153			313			12,975			52,906			(2,334	)		6,794
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			-			-			590			-			-
Transfers between funds		(1,839	)		3,718			510			1,016			(423,299	)		(92,787	)		32,925			37,825
Surrenders (note 6)		-			(3,217	)		-			-			(54,551	)		(56,894	)		-			(39,982	)
Death Benefits (note 4)		-			-			-			-			-			(21,115	)		-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(120	)		(158	)		(262	)		(245	)		(13,543	)		(34,520	)		(1,392	)		(1,420	)
Adjustments to maintain reserves		7			(4	)		5			2			8			38			(6	)		6
Net equity transactions		(1,952	)		339			253			773			(491,385	)		(204,688	)		31,527			(3,571	)
Net change in contract owners’ equity		(1,967	)		1,165			406			1,086			(478,410	)		(151,782	)		29,193			3,223
Contract owners’ equity beginning of period		4,554			3,389			5,542			4,456			512,467			664,249			41,306			38,083
Contract owners’ equity end of period	$	2,587			4,554			5,948			5,542			34,057			512,467			70,499			41,306
CHANGES IN UNITS:
Beginning units		302			257			398			338			34,662			49,707			2,732			2,835
Units purchased		2			272			37			78			553			-			2,136			2,670
Units redeemed		(125	)		(227	)		(19	)		(18	)		(32,905	)		(15,045	)		(92	)		(2,773	)
Ending units		179			302			416			398			2,310			34,662			4,776			2,732

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	GVDMC						MCIF						SAM						SAM5
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	124			115			34,512			55,414			(809	)		(827	)		(135,130	)		(133,433	)
Realized gain (loss) on investments		57			775			397,342			(319,541	)		-			-			-			-
Change in unrealized gain (loss) on investments		(49	)		(387	)		(709,585	)		1,475,951			-			-			-			-
Reinvested capital gains		-			-			96,280			6,016			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		132			503			(181,451	)		1,217,840			(809	)		(827	)		(135,130	)		(133,433	)
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			4,710			-			-			1,236			17,409
Transfers between funds		840			4,454			(464,898	)		(47,769	)		-			-			8,766,391			(1,911,656	)
Surrenders (note 6)		-			(3,990	)		-			(20,292	)		-			-			(1,011,641	)		(1,731,860	)
Death Benefits (note 4)		-			-			-			(34,646	)		-			-			-			(52,467	)
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(204	)		(207	)		(49,549	)		(42,806	)		(5,724	)		(5,669	)		(699,740	)		(802,660	)
Adjustments to maintain reserves		2			(3	)		(38	)		(233	)		1			(1	)		(357	)		(175	)
Net equity transactions		638			254			(514,485	)		(141,036	)		(5,723	)		(5,670	)		7,055,889			(4,481,409	)
Net change in contract owners’ equity		770			757			(695,936	)		1,076,804			(6,532	)		(6,497	)		6,920,759			(4,614,842	)
Contract owners’ equity beginning of period		5,704			4,947			6,024,341			4,947,537			327,734			334,231			52,435,593			57,050,435
Contract owners’ equity end of period	$	6,474			5,704			5,328,405			6,024,341			321,202			327,734			59,356,352			52,435,593
CHANGES IN UNITS:
Beginning units		392			368			310,712			320,194			24,079			24,495			4,560,736			4,949,229
Units purchased		59			315			3,759			-			-			-			971,652			87,027
Units redeemed		(14	)		(291	)		(31,948	)		(9,482	)		(421	)		(416	)		(359,268	)		(475,520	)
Ending units		437			392			282,523			310,712			23,658			24,079			5,173,120			4,560,736

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	NVMLG1						NVMLV1						NVMMG1						SCGF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(363	)		(169	)		433			162			(51	)		(51	)		(1,335	)		(550	)
Realized gain (loss) on investments		1,718			(2,004	)		(616	)		444			6,518			1,357			125,601			(11,080	)
Change in unrealized gain (loss) on investments		(5,943	)		11,761			(4,283	)		917			(7,350	)		3,838			(34,409	)		64,399
Reinvested capital gains		-			5,190			1,725			1,621			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(4,588	)		14,778			(2,741	)		3,144			(883	)		5,144			89,857			52,769
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			53			-			-			37			657			-			39
Transfers between funds		3,194			165,476			5,042			69,196			(15,385	)		(1,640	)		(91,818	)		(6,320	)
Surrenders (note 6)		-			(27,930	)		-			(23,278	)		-			-			-			(20,497	)
Death Benefits (note 4)		-			-			-			-			-			(114	)		-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(3,604	)		(2,080	)		(1,800	)		(1,332	)		(648	)		(688	)		(10,426	)		(6,395	)
Adjustments to maintain reserves		(8	)		(52	)		(4	)		6			2			(1	)		(9	)		(37	)
Net equity transactions		(418	)		135,467			3,238			44,592			(15,994	)		(1,786	)		(102,253	)		(33,210	)
Net change in contract owners’ equity		(5,006	)		150,245			497			47,736			(16,877	)		3,358			(12,396	)		19,559
Contract owners’ equity beginning of period		150,245			-			47,736			-			23,391			20,033			245,159			225,600
Contract owners’ equity end of period	$	145,239			150,245			48,233			47,736			6,514			23,391			232,763			245,159
CHANGES IN UNITS:
Beginning units		15,853			-			4,547			-			2,326			2,520			15,458			17,800
Units purchased		345			19,056			518			7,472			31			253			39			141
Units redeemed		(375	)		(3,203	)		(174	)		(2,925	)		(1,679	)		(447	)		(688	)		(2,483	)
Ending units		15,823			15,853			4,891			4,547			678			2,326			14,809			15,458

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	SCVF						SCF						MSBF						EIF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	263			10,698			6,527			695			15,885			41,727			251			686
Realized gain (loss) on investments		575,052			(273,562	)		222,080			7,034			33,308			22,027			16,711			2,788
Change in unrealized gain (loss) on investments		(537,771	)		1,036,974			(376,442	)		486,754			(18,633	)		10,272			(15,118	)		5,221
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		37,544			774,110			(147,835	)		494,483			30,560			74,026			1,844			8,695
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			107			1,410			4,166			-			(42	)		-			152
Transfers between funds		(3,405,523	)		(181,465	)		(256,737	)		37,667			(487,032	)		11,077			(39,191	)		2,607
Surrenders (note 6)		-			(40,868	)		(169,459	)		(228,776	)		(167,940	)		(172,088	)		-			(4,023	)
Death Benefits (note 4)		-			(1,711	)		-			(16,498	)		-			-			-			(2,943	)
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(12,938	)		(112,069	)		(55,052	)		(93,718	)		(17,110	)		(35,750	)		(1,398	)		(3,261	)
Adjustments to maintain reserves		(3	)		327			(9	)		(283	)		(10	)		(242	)		-			-
Net equity transactions		(3,418,464	)		(335,679	)		(479,847	)		(297,442	)		(672,092	)		(197,045	)		(40,589	)		(7,468	)
Net change in contract owners’ equity		(3,380,920	)		438,431			(627,682	)		197,041			(641,532	)		(123,019	)		(38,745	)		1,227
Contract owners’ equity beginning of period		3,648,073			3,209,642			2,340,005			2,142,964			684,915			807,934			57,015			55,788
Contract owners’ equity end of period	$	267,153			3,648,073			1,712,323			2,340,005			43,383			684,915			18,270			57,015
CHANGES IN UNITS:
Beginning units		146,751			163,056			97,696			111,836			38,663			50,310			4,655			5,260
Units purchased		-			408			4,230			7,194			-			219			103			323
Units redeemed		(135,402	)		(16,713	)		(26,023	)		(21,334	)		(36,337	)		(11,866	)		(3,227	)		(928	)
Ending units		11,349			146,751			75,903			97,696			2,326			38,663			1,531			4,655

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	ALVGIA						ALVIVA						ACVB						ACVCA
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	327			(70	)		31,540			58,392			4,331			4,072			(1,093	)		(959	)
Realized gain (loss) on investments		1,588			695			(6,981	)		(1,872,276	)		397			(1,038	)		11,653			4,824
Change in unrealized gain (loss) on investments		(423	)		2,951			(191,213	)		1,479,710			8,239			23,804			(39,358	)		102,698
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		1,492			3,576			(166,654	)		(334,174	)		12,967			26,838			(28,798	)		106,563
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		8,992			66			128,685			86,563			-			-			-			-
Transfers between funds		4,845			2,478			(228,726	)		(4,227,780	)		(54	)		(124	)		(3,621	)		(17,864	)
Surrenders (note 6)		(11	)		(535	)		-			-			(1	)		-			-			-
Death Benefits (note 4)		-			-			-			(29,330	)		-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(1,963	)		(2,127	)		(15,054	)		(45,136	)		(11,710	)		(10,940	)		(19,724	)		(16,872	)
Adjustments to maintain reserves		13			(2	)		9			(891	)		4			10			(21	)		40
Net equity transactions		11,876			(120	)		(115,086	)		(4,216,574	)		(11,761	)		(11,054	)		(23,366	)		(34,696	)
Net change in contract owners’ equity		13,368			3,456			(281,740	)		(4,550,748	)		1,206			15,784			(52,164	)		71,867
Contract owners’ equity beginning of period		29,944			26,488			968,496			5,519,244			259,921			244,137			450,060			378,193
Contract owners’ equity end of period	$	43,312			29,944			686,756			968,496			261,127			259,921			397,896			450,060
CHANGES IN UNITS:
Beginning units		1,968			1,964			123,777			734,796			18,479			19,328			19,302			21,242
Units purchased		840			196			15,663			80,852			-			-			-			-
Units redeemed		(124	)		(192	)		(30,661	)		(691,871	)		(810	)		(849	)		(1,004	)		(1,940	)
Ending units		2,684			1,968			108,779			123,777			17,669			18,479			18,298			19,302

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	ACVIG						ACVI						ACVMV1					ACVU1
	2011			2010			2011			2010			2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	5,876			5,378			14,319			31,660			1,020			-		(86	)		438
Realized gain (loss) on investments		(12,795	)		(16,192	)		(72,444	)		(152,833	)		43			-		2,106			29,672
Change in unrealized gain (loss) on investments		12,637			71,222			(79,355	)		288,789			4,482			-		(1,785	)		(16,410	)
Reinvested capital gains		-			-			-			-			-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		5,718			60,408			(137,480	)		167,616			5,545			-		235			13,700
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		2,726			1,134			4,833			2,408			-			-		6,562			-
Transfers between funds		(11,776	)		(19,420	)		(150,771	)		(343,289	)		273,165			-		(4,758	)		(89,206	)
Surrenders (note 6)		-			(7,235	)		(42	)		(11,192	)		-			-		(3	)		(25,588	)
Death Benefits (note 4)		-			(1,396	)		-			(8,275	)		-			-		-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-		-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(8,285	)		(8,840	)		(38,056	)		(46,596	)		(1,722	)		-		(1,321	)		(3,903	)
Adjustments to maintain reserves		(5	)		9			(17	)		(27	)		4			-		(6	)		7
Net equity transactions		(17,340	)		(35,748	)		(184,053	)		(406,971	)		271,447			-		474			(118,690	)
Net change in contract owners’ equity		(11,622	)		24,660			(321,533	)		(239,355	)		276,992			-		709			(104,990	)
Contract owners’ equity beginning of period		458,879			434,219			1,300,926			1,540,281			-			-		36,837			141,827
Contract owners’ equity end of period	$	447,257			458,879			979,393			1,300,926			276,992			-		37,546			36,837
CHANGES IN UNITS:
Beginning units		35,261			37,991			89,078			119,188			-			-		3,101			13,825
Units purchased		239			208			370			2,714			28,599			-		605			517
Units redeemed		(2,086	)		(2,938	)		(13,015	)		(32,824	)		(2,290	)		-		(571	)		(11,241	)
Ending units		33,414			35,261			76,433			89,078			26,309			-		3,135			3,101

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	ACVV						ACVVS1						DVMCS						DVSCS
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	14,033			17,357			(115	)		(106	)		47			67			25,939			19,901
Realized gain (loss) on investments		44,093			(14,247	)		(668	)		(1,085	)		476			3,092			21,221			(1,341,289	)
Change in unrealized gain (loss) on investments		(54,469	)		110,683			(2,830	)		11,043			(543	)		(265	)		(65,854	)		2,535,774
Reinvested capital gains		-			-			-			-			-			-			15,143			-
Net increase (decrease) in contract owners’ equity resulting from operations		3,657			113,793			(3,613	)		9,852			(20	)		2,894			(3,551	)		1,214,386
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			290			-			-			-			-			-			4,293
Transfers between funds		(112,244	)		(901	)		(205	)		8,871			1,108			(39,456	)		(665,521	)		(34,061	)
Surrenders (note 6)		(22,495	)		(115,089	)		-			(2,133	)		-			(805	)		(900	)		(3,357	)
Death Benefits (note 4)		-			(6,808	)		-			-			-			-			-			(33,822	)
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(24,642	)		(31,144	)		(2,072	)		(1,793	)		(801	)		(798	)		(48,221	)		(39,668	)
Adjustments to maintain reserves		(23	)		(665	)		(5	)		8			(8	)		-			(23	)		(353	)
Net equity transactions		(159,404	)		(154,317	)		(2,282	)		4,953			299			(41,059	)		(714,665	)		(106,968	)
Net change in contract owners’ equity		(155,747	)		(40,524	)		(5,895	)		14,805			279			(38,165	)		(718,216	)		1,107,418
Contract owners’ equity beginning of period		885,541			926,065			49,478			34,673			18,165			56,330			5,987,701			4,880,283
Contract owners’ equity end of period	$	729,794			885,541			43,583			49,478			18,444			18,165			5,269,485			5,987,701
CHANGES IN UNITS:
Beginning units		48,529			57,418			3,686			3,192			1,006			3,955			356,829			365,217
Units purchased		134			356			97			811			59			425			11,173			-
Units redeemed		(8,972	)		(9,245	)		(249	)		(317	)		(45	)		(3,374	)		(55,107	)		(8,388	)
Ending units		39,691			48,529			3,534			3,686			1,020			1,006			312,895			356,829

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	DCAP						DGI						DVIV						FQB
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	6,431			6,749			1,549			1,354			15,137			14,763			23,878			20,326
Realized gain (loss) on investments		851			(8,212	)		(96	)		(1,295	)		(77,660	)		(212,658	)		18,559			12,690
Change in unrealized gain (loss) on investments		32,788			60,735			(6,179	)		24,328			(68,355	)		232,907			(30,852	)		2,232
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		40,070			59,272			(4,726	)		24,387			(130,878	)		35,012			11,585			35,248
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		12,588			730			-			-			-			(57	)		89			1,582
Transfers between funds		34,330			76,746			(41	)		1,309			(304,856	)		58,989			(229,846	)		159,191
Surrenders (note 6)		(40	)		(38,390	)		-			-			(109,980	)		(175,179	)		-			(100,761	)
Death Benefits (note 4)		-			-			-			-			-			-			-			(2,490	)
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(12,214	)		(11,134	)		(6,851	)		(6,167	)		(24,035	)		(38,954	)		(12,279	)		(14,813	)
Adjustments to maintain reserves		6			15			(4	)		17			36			1,121			12			(8	)
Net equity transactions		34,670			27,967			(6,896	)		(4,841	)		(438,835	)		(154,080	)		(242,024	)		42,701
Net change in contract owners’ equity		74,740			87,239			(11,622	)		19,546			(569,713	)		(119,068	)		(230,439	)		77,949
Contract owners’ equity beginning of period		437,992			350,753			156,380			136,834			887,192			1,006,260			501,582			423,633
Contract owners’ equity end of period	$	512,732			437,992			144,758			156,380			317,479			887,192			271,143			501,582
CHANGES IN UNITS:
Beginning units		29,630			27,287			14,052			14,547			47,861			56,561			27,472			25,113
Units purchased		3,084			5,802			-			142			2,579			3,526			67			8,915
Units redeemed		(794	)		(3,459	)		(637	)		(637	)		(29,378	)		(12,226	)		(12,982	)		(6,556	)
Ending units		31,920			29,630			13,415			14,052			21,062			47,861			14,557			27,472

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	FEIP						FHIP						FAMP						FCP
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	1,009			608			3,381			3,355			61,014			61,744			1,245			1,326
Realized gain (loss) on investments		(151	)		(287	)		(72	)		(91	)		(97,811	)		(55,317	)		255			(1,489	)
Change in unrealized gain (loss) on investments		(533	)		5,237			(1,524	)		2,548			(59,387	)		530,828			(5,907	)		21,891
Reinvested capital gains		-			-			-			-			17,065			21,811			-			61
Net increase (decrease) in contract owners’ equity resulting from operations		325			5,558			1,785			5,812			(79,119	)		559,066			(4,407	)		21,789
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			-			-			-			-			-
Transfers between funds		3,007			6,916			4,516			9,217			(969,141	)		202,406			15,594			18,442
Surrenders (note 6)		-			-			-			-			(1	)		-			-			-
Death Benefits (note 4)		-			-			-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(1,846	)		(1,584	)		(2,157	)		(1,904	)		(52,511	)		(151,387	)		(6,609	)		(5,718	)
Adjustments to maintain reserves		(10	)		8			(4	)		-			-			258			(34	)		19
Net equity transactions		1,151			5,340			2,355			7,313			(1,021,653	)		51,277			8,951			12,743
Net change in contract owners’ equity		1,476			10,898			4,140			13,125			(1,100,772	)		610,343			4,544			34,532
Contract owners’ equity beginning of period		41,397			30,499			46,561			33,436			4,495,776			3,885,433			146,192			111,660
Contract owners’ equity end of period	$	42,873			41,397			50,701			46,561			3,395,004			4,495,776			150,736			146,192
CHANGES IN UNITS:
Beginning units		3,291			2,785			2,594			2,115			306,766			302,181			8,752			7,816
Units purchased		238			648			245			593			-			16,102			922			1,327
Units redeemed		(145	)		(142	)		(117	)		(114	)		(68,429	)		(11,517	)		(393	)		(391	)
Ending units		3,384			3,291			2,722			2,594			238,337			306,766			9,281			8,752

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	FCS						FEIS						FGOP						FGOS
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	11,894			19,617			7,756			7,731			(12	)		(1	)		(2,287	)		(1,310	)
Realized gain (loss) on investments		563,162			162,527			51,992			81,693			4			(122	)		23,333			6,790
Change in unrealized gain (loss) on investments		(914,826	)		187,908			(52,558	)		(17,525	)		293			3,066			(13,909	)		182,531
Reinvested capital gains		-			1,061			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(339,770	)		371,113			7,190			71,899			285			2,943			7,137			188,011
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		213,972			104,109			22,191			1,045			-			-			4,397			6,849
Transfers between funds		(447,568	)		(147,043	)		(91,034	)		30,015			1,175			4,119			250,963			24,389
Surrenders (note 6)		(17	)		(4,541	)		-			(134,581	)		-			-			-			(45,590	)
Death Benefits (note 4)		-			(24,831	)		-			(2,241	)		-			-			-			(9,155	)
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(51,958	)		(63,563	)		(7,468	)		(10,019	)		(686	)		(504	)		(37,044	)		(49,558	)
Adjustments to maintain reserves		(36	)		(207	)		3			(141	)		(5	)		9			(8	)		64
Net equity transactions		(285,607	)		(136,076	)		(76,308	)		(115,922	)		484			3,624			218,308			(73,001	)
Net change in contract owners’ equity		(625,377	)		235,037			(69,118	)		(44,023	)		769			6,567			225,445			115,010
Contract owners’ equity beginning of period		2,547,376			2,312,339			416,164			460,187			14,973			8,406			961,356			846,346
Contract owners’ equity end of period	$	1,921,999			2,547,376			347,046			416,164			15,742			14,973			1,186,801			961,356
CHANGES IN UNITS:
Beginning units		121,657			128,999			29,780			37,804			1,384			959			96,266			104,534
Units purchased		9,785			9,579			1,681			2,739			103			479			23,883			3,541
Units redeemed		(29,347	)		(16,921	)		(6,777	)		(10,763	)		(61	)		(54	)		(3,553	)		(11,809	)
Ending units		102,095			121,657			24,684			29,780			1,426			1,384			116,596			96,266

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	FGP						FGS						FHIS						FIGBS
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	70			10			(39	)		(669	)		5,306			121,643			1,262			2,447
Realized gain (loss) on investments		(145	)		(10,833	)		(9,924	)		(60,624	)		(47,578	)		18,601			148			3,804
Change in unrealized gain (loss) on investments		(140	)		19,067			6,369			220,986			73,244			(85,915	)		111			(3,746	)
Reinvested capital gains		176			144			2,461			2,438			-			-			1,025			811
Net increase (decrease) in contract owners’ equity resulting from operations		(39	)		8,388			(1,133	)		162,131			30,972			54,329			2,546			3,316
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			6,931			210			-			(1,856	)		-			-
Transfers between funds		3,646			9,328			(75,021	)		(95,623	)		(1,562,082	)		1,386,634			2,806			22,521
Surrenders (note 6)		-			(572	)		(28,322	)		(55,391	)		-			(47,015	)		-			(35,461	)
Death Benefits (note 4)		-			-			-			(3,431	)		-			(14,889	)		-			-
Net policy repayments (loans) (note 5)		150			(40,528	)		-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(3,918	)		(3,203	)		(22,185	)		(26,735	)		(10,110	)		(18,819	)		(1,188	)		(1,519	)
Adjustments to maintain reserves		(8	)		5			4			39			111			2,252			(3	)		2
Net equity transactions		(130	)		(34,970	)		(118,593	)		(180,931	)		(1,572,081	)		1,306,307			1,615			(14,457	)
Net change in contract owners’ equity		(169	)		(26,582	)		(119,726	)		(18,800	)		(1,541,109	)		1,360,636			4,161			(11,141	)
Contract owners’ equity beginning of period		50,045			76,627			752,024			770,824			1,621,563			260,927			38,973			50,114
Contract owners’ equity end of period	$	49,876			50,045			632,298			752,024			80,454			1,621,563			43,134			38,973
CHANGES IN UNITS:
Beginning units		5,152			9,771			55,697			70,622			121,792			22,244			2,978			4,113
Units purchased		564			1,195			647			4			1			105,811			192			1,704
Units redeemed		(579	)		(5,814	)		(9,408	)		(14,929	)		(115,964	)		(6,263	)		(88	)		(2,839	)
Ending units		5,137			5,152			46,936			55,697			5,829			121,792			3,082			2,978

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	FMCS						FOP						FOS						FVSS
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(653	)		550			335			322			1,627			3,196			138			41
Realized gain (loss) on investments		30,282			1,149			(515	)		(1,245	)		14,889			77,521			655			1,569
Change in unrealized gain (loss) on investments		(185,841	)		243,150			(4,631	)		4,885			(46,204	)		(39,777	)		(2,535	)		2,385
Reinvested capital gains		2,535			3,223			54			53			449			599			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(153,677	)		248,072			(4,757	)		4,015			(29,239	)		41,539			(1,742	)		3,995
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		110,982			54,627			-			-			22,481			822			-			-
Transfers between funds		202,722			146,194			(20	)		4,823			(101,840	)		(78,915	)		2,012			3,664
Surrenders (note 6)		-			(57,359	)		-			-			(26	)		(81,294	)		-			(1,616	)
Death Benefits (note 4)		-			-			-			-			-			(92	)		-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(27,988	)		(23,927	)		(1,249	)		(1,219	)		(7,283	)		(12,288	)		(809	)		(658	)
Adjustments to maintain reserves		(13	)		11			7			7			1			51			(10	)		1
Net equity transactions		285,703			119,546			(1,262	)		3,611			(86,667	)		(171,716	)		1,193			1,391
Net change in contract owners’ equity		132,026			367,618			(6,019	)		7,626			(115,906	)		(130,177	)		(549	)		5,386
Contract owners’ equity beginning of period		1,205,234			837,616			30,348			22,722			255,544			385,721			19,007			13,621
Contract owners’ equity end of period	$	1,337,260			1,205,234			24,329			30,348			139,638			255,544			18,458			19,007
CHANGES IN UNITS:
Beginning units		71,093			63,431			2,281			1,927			17,869			30,399			1,176			1,063
Units purchased		26,739			12,963			-			459			1,989			69			131			453
Units redeemed		(9,368	)		(5,301	)		(68	)		(105	)		(8,031	)		(12,599	)		(51	)		(340	)
Ending units		88,464			71,093			2,213			2,281			11,827			17,869			1,256			1,176

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	FTVSV2						TIF2						FTVGI2					GVMCE
	2011			2010			2011			2010			2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	19,416			1,568			2,196			2,530			(243	)		-		6,528			8,632
Realized gain (loss) on investments		46,401			47,534			920			13,912			(128	)		-		215,991			(92,328	)
Change in unrealized gain (loss) on investments		(327,776	)		53,131			(22,361	)		970			(21,533	)		-		(336,789	)		576,724
Reinvested capital gains		-			-			-			-			-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(261,959	)		102,233			(19,245	)		17,412			(21,904	)		-		(114,270	)		493,028
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		55,898			25,052			377			22			-			-		-			8
Transfers between funds		3,150,403			124,925			30,874			121,077			636,108			-		(533,657	)		(10,322	)
Surrenders (note 6)		-			(6,386	)		(27	)		(90,657	)		-			-		(188,209	)		(410,008	)
Death Benefits (note 4)		-			-			-			-			-			-		-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-		-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(39,653	)		(7,490	)		(6,639	)		(7,638	)		(3,615	)		-		(30,739	)		(40,846	)
Adjustments to maintain reserves		(18	)		12			-			10			(6	)		-		2			(2,243	)
Net equity transactions		3,166,630			136,113			24,585			22,814			632,487			-		(752,603	)		(463,411	)
Net change in contract owners’ equity		2,904,671			238,346			5,340			40,226			610,583			-		(866,873	)		29,617
Contract owners’ equity beginning of period		604,409			366,063			153,859			113,633			-			-		2,261,948			2,232,331
Contract owners’ equity end of period	$	3,509,080			604,409			159,199			153,859			610,583			-		1,395,075			2,261,948
CHANGES IN UNITS:
Beginning units		42,559			32,968			7,723			6,168			-			-		101,953			125,459
Units purchased		234,502			10,665			1,574			6,621			42,600			-		-			4,532
Units redeemed		(19,730	)		(1,074	)		(333	)		(5,066	)		(246	)		-		(34,623	)		(28,038	)
Ending units		257,331			42,559			8,964			7,723			42,354			-		67,330			101,953

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	BNCAI						AMTB						AMTG						AMGP
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(593	)		(874	)		3,497			4,756			(529	)		(457	)		200			65
Realized gain (loss) on investments		63,927			69,867			(1,050	)		(514	)		1,926			(1,206	)		4,768			18,679
Change in unrealized gain (loss) on investments		(54,539	)		10,727			(2,410	)		454			(2,453	)		52,820			(7,863	)		(2,632	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		8,795			79,720			37			4,696			(1,056	)		51,157			(2,895	)		16,112
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		34,367			35			-			-			-			-			74			375
Transfers between funds		(105,314	)		(185,131	)		769			(976	)		(2,435	)		884			10,790			(47,354	)
Surrenders (note 6)		(23	)		(12,803	)		-			-			-			-			(1	)		(805	)
Death Benefits (note 4)		-			-			-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(5,218	)		(8,461	)		(4,207	)		(4,261	)		(9,509	)		(8,019	)		(2,133	)		(1,869	)
Adjustments to maintain reserves		(9	)		24			(5	)		1			10			13			12			1
Net equity transactions		(76,197	)		(206,336	)		(3,443	)		(5,236	)		(11,934	)		(7,122	)		8,742			(49,652	)
Net change in contract owners’ equity		(67,402	)		(126,616	)		(3,406	)		(540	)		(12,990	)		44,035			5,847			(33,540	)
Contract owners’ equity beginning of period		278,067			404,683			94,128			94,668			214,375			170,340			73,786			107,326
Contract owners’ equity end of period	$	210,665			278,067			90,722			94,128			201,385			214,375			79,633			73,786
CHANGES IN UNITS:
Beginning units		13,627			25,002			7,165			7,568			17,823			18,553			4,952			8,551
Units purchased		1,568			108			57			-			1			77			710			302
Units redeemed		(5,246	)		(11,483	)		(319	)		(403	)		(1,003	)		(807	)		(142	)		(3,901	)
Ending units		9,949			13,627			6,903			7,165			16,821			17,823			5,520			4,952

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	AMCG						AMTP						AMFAS						OVMS
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(184	)		(2,772	)		(877	)		1,356			(14	)		(16	)		6,459			3,446
Realized gain (loss) on investments		26,547			(218,795	)		20,685			63,074			2,219			118			(7,634	)		(11,486	)
Change in unrealized gain (loss) on investments		(17,612	)		(30,840	)		(57,272	)		4,823			(1,789	)		1,220			2,982			44,729
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		8,751			(252,407	)		(37,464	)		69,253			416			1,322			1,807			36,689
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			395			-			158			-			-			-			-
Transfers between funds		(139,248	)		209,328			(44,746	)		(146,501	)		(3,928	)		1,986			1,488			(707	)
Surrenders (note 6)		-			(18,166	)		-			(23,165	)		-			-			-			-
Death Benefits (note 4)		-			(7,948	)		-			(3,533	)		-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(3,202	)		(20,342	)		(7,458	)		(12,587	)		(337	)		(403	)		(14,476	)		(13,513	)
Adjustments to maintain reserves		3			109			(3	)		37			(10	)		12			(6	)		23
Net equity transactions		(142,447	)		163,376			(52,207	)		(185,591	)		(4,275	)		1,595			(12,994	)		(14,197	)
Net change in contract owners’ equity		(133,696	)		(89,031	)		(89,671	)		(116,338	)		(3,859	)		2,917			(11,187	)		22,492
Contract owners’ equity beginning of period		168,351			257,382			400,426			516,764			7,997			5,080			322,424			299,932
Contract owners’ equity end of period	$	34,655			168,351			310,755			400,426			4,138			7,997			311,237			322,424
CHANGES IN UNITS:
Beginning units		8,832			17,388			27,682			41,218			599			454			27,934			29,268
Units purchased		42			-			187			721			24			180			137			-
Units redeemed		(7,060	)		(8,556	)		(3,573	)		(14,257	)		(309	)		(35	)		(1,232	)		(1,334	)
Ending units		1,814			8,832			24,296			27,682			314			599			26,839			27,934

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	OVGR						OVB						OVGS						OVGI
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	4,089			(872	)		15,787			4,345			17,754			27,352			711			961
Realized gain (loss) on investments		202,412			(90,085	)		(11,868	)		(8,903	)		1,618			(258,812	)		(677	)		(3,850	)
Change in unrealized gain (loss) on investments		(139,611	)		265,218			18,222			33,849			(157,449	)		482,267			(331	)		20,213
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		66,890			174,261			22,141			29,291			(138,077	)		250,807			(297	)		17,324
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		118			891			-			-			-			-			-			-
Transfers between funds		(1,352,106	)		(427,779	)		2,689			(1,941	)		(175,204	)		(379,141	)		(148	)		8,521
Surrenders (note 6)		(35,359	)		(183,820	)		-			-			(5,098	)		(295,342	)		-			(10,332	)
Death Benefits (note 4)		-			(2,707	)		-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(38,328	)		(46,248	)		(13,027	)		(12,387	)		(21,146	)		(21,179	)		(2,740	)		(2,566	)
Adjustments to maintain reserves		(16	)		4,610			6			-			(5	)		(4,274	)		-			-
Net equity transactions		(1,425,691	)		(655,053	)		(10,332	)		(14,328	)		(201,453	)		(699,936	)		(2,888	)		(4,377	)
Net change in contract owners’ equity		(1,358,801	)		(480,792	)		11,809			14,963			(339,530	)		(449,129	)		(3,185	)		12,947
Contract owners’ equity beginning of period		2,018,495			2,499,287			280,270			265,307			1,744,181			2,193,310			123,006			110,059
Contract owners’ equity end of period	$	659,694			2,018,495			292,079			280,270			1,404,651			1,744,181			119,821			123,006
CHANGES IN UNITS:
Beginning units		138,075			186,596			26,061			27,417			115,302			167,720			10,808			11,200
Units purchased		289			929			248			-			2,897			1,138			98			777
Units redeemed		(92,599	)		(49,450	)		(1,161	)		(1,356	)		(16,696	)		(53,556	)		(350	)		(1,169	)
Ending units		45,765			138,075			25,148			26,061			101,503			115,302			10,556			10,808

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	OVAG						PMVAAA						PMVFBA						PMVLDA
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(571	)		(702	)		92,614			39,131			1,830			1,360			19,579			14,384
Realized gain (loss) on investments		72,734			(11,165	)		171			165,770			(17,748	)		(19	)		8,294			31,566
Change in unrealized gain (loss) on investments		(49,655	)		83,998			(27,362	)		(4,037	)		21,164			(21,164	)		(16,786	)		8,383
Reinvested capital gains		-			-			-			-			-			3,449			-			2,989
Net increase (decrease) in contract owners’ equity resulting from operations		22,508			72,131			65,423			200,864			5,246			(16,374	)		11,087			57,322
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		146			1,001			-			12,343			-			-			52,510			384
Transfers between funds		(213,893	)		19,071			3,100,063			(162,255	)		(437,456	)		450,000			(51,006	)		103,629
Surrenders (note 6)		-			(15,978	)		-			(36,021	)		-			-			(33	)		(83,752	)
Death Benefits (note 4)		-			(7,699	)		-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(7,351	)		(12,213	)		(7,144	)		(8,446	)		(1,015	)		(402	)		(38,240	)		(35,068	)
Adjustments to maintain reserves		2			68			(583	)		(12,224	)		26			(25	)		(3	)		20
Net equity transactions		(221,096	)		(15,750	)		3,092,336			(206,603	)		(438,445	)		449,573			(36,772	)		(14,787	)
Net change in contract owners’ equity		(198,588	)		56,381			3,157,759			(5,739	)		(433,199	)		433,199			(25,685	)		42,535
Contract owners’ equity beginning of period		327,338			270,957			33,067			38,806			433,199			-			1,362,911			1,320,376
Contract owners’ equity end of period	$	128,750			327,338			3,190,826			33,067			-			433,199			1,337,226			1,362,911
CHANGES IN UNITS:
Beginning units		27,008			28,425			2,149			2,845			36,057			-			97,785			99,496
Units purchased		156			1,847			202,211			39			-			36,090			3,803			6,930
Units redeemed		(16,630	)		(3,264	)		(457	)		(735	)		(36,057	)		(33	)		(6,461	)		(8,641	)
Ending units		10,534			27,008			203,903			2,149			-			36,057			95,127			97,785

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PMVRRA						PMVTRA						PIHYB1						ACGI
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	87,983			55,893			461,639			367,154			1,516			1,484			(198	)		-
Realized gain (loss) on investments		117,579			72,361			182,859			691,519			667			3,290			167			-
Change in unrealized gain (loss) on investments		156,485			183,426			(445,902	)		(272,054	)		(2,505	)		290			8,792			-
Reinvested capital gains		150,651			42,779			415,552			487,996			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		512,698			354,459			614,148			1,274,615			(322	)		5,064			8,761			-
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		15,246			17,098			163,295			6,081			-			-			-			-
Transfers between funds		(54,245	)		(5,816	)		13,182,818			1,561,199			3,747			18,112			489,489			-
Surrenders (note 6)		-			(102,428	)		(79,187	)		(3,043,370	)		-			(13,365	)		-			-
Death Benefits (note 4)		-			-			-			(59,664	)		-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(76,880	)		(72,210	)		(196,188	)		(166,159	)		(1,122	)		(1,013	)		(2,939	)		-
Adjustments to maintain reserves		185			656			(2,258	)		15			8			-			(4	)		-
Net equity transactions		(115,694	)		(162,700	)		13,068,480			(1,701,898	)		2,633			3,734			486,546			-
Net change in contract owners’ equity		397,004			191,759			13,682,628			(427,283	)		2,311			8,798			495,307			-
Contract owners’ equity beginning of period		4,817,344			4,625,585			15,262,034			15,689,317			29,182			20,384			-			-
Contract owners’ equity end of period	$	5,214,348			4,817,344			28,944,662			15,262,034			31,493			29,182			495,307			-
CHANGES IN UNITS:
Beginning units		295,591			306,080			912,976			1,012,959			1,397			1,149			-			-
Units purchased		19,930			12,076			788,393			65,806			193			947			49,425			-
Units redeemed		(28,287	)		(22,565	)		(26,076	)		(165,789	)		(53	)		(699	)		(296	)		-
Ending units		287,234			295,591			1,675,293			912,976			1,537			1,397			49,129			-

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	AVBVI						AVCDI						AVIE						ROCMC
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	28			(714	)		(9	)		(9	)		842			700			42,294			41,940
Realized gain (loss) on investments		768			136,660			110			(88	)		(1,022	)		2,011			863,866			(160,014	)
Change in unrealized gain (loss) on investments		(638	)		(31,810	)		(345	)		759			(5,668	)		2,414			(1,170,632	)		765,800
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		158			104,136			(244	)		662			(5,848	)		5,125			(264,472	)		647,726
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		—			—			—			—			—			(59	)		282,733			27,079
Transfers between funds		(4,141	)		(1,059,409	)		(64	)		1,046			65,699			18,802			(880,689	)		479,489
Surrenders (note 6)		—			(537	)		(1	)		—			(12,600	)		(5,520	)		(163,371	)		(196,697	)
Death Benefits (note 4)		—			—			—			—			—			—			—			—
Net policy repayments (loans) (note 5)		—			—			—			—			—			—			—			—
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(396	)		(3,784	)		(167	)		(147	)		(2,164	)		(1,682	)		(54,814	)		(63,331	)
Adjustments to maintain reserves		(10	)		7			10			(1	)		1			6			2			(354	)
Net equity transactions		(4,547	)		(1,063,723	)		(222	)		898			50,936			11,547			(816,139	)		246,186
Net change in contract owners’ equity		(4,389	)		(959,587	)		(466	)		1,560			45,088			16,672			(1,080,611	)		893,912
Contract owners’ equity beginning of period		9,872			969,459			3,910			2,350			46,343			29,671			2,924,443			2,030,531
Contract owners’ equity end of period	$	5,483			9,872			3,444			3,910			91,431			46,343			1,843,832			2,924,443
CHANGES IN UNITS:
Beginning units		740			77,826			205			146			2,500			1,802			106,154			95,550
Units purchased		13			123			—			68			4,250			1,123			11,148			19,607
Units redeemed		(328	)		(77,209	)		(10	)		(9	)		(1,448	)		(425	)		(41,015	)		(9,003	)
Ending units		425			740			195			205			5,302			2,500			76,287			106,154

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	TREI2						TRMCG2						TRNAG1						VWBF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	24,536			33,226			(2,541	)		(3,160	)		(671	)		(434	)		27,753			16,625
Realized gain (loss) on investments		199,363			(162,741	)		313,431			(29,074	)		177,610			103,425			92			(4,481	)
Change in unrealized gain (loss) on investments		(308,136	)		441,641			(344,041	)		261,144			(191,688	)		(4,332	)		(7,488	)		8,058
Reinvested capital gains		-			-			24,614			62,365			18,481			12,352			7,313			-
Net increase (decrease) in contract owners’ equity resulting from operations		(84,237	)		312,126			(8,537	)		291,275			3,732			111,011			27,670			20,202
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		362			61			3,806			13			-			335			-			-
Transfers between funds		(940,845	)		381,537			(665,610	)		(65,510	)		(275,001	)		(113,902	)		2,122			(138,223	)
Surrenders (note 6)		(97,503	)		(308,529	)		(255,060	)		(302,063	)		(83,520	)		(68,656	)		-			-
Death Benefits (note 4)		-			-			-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(33,106	)		(45,330	)		(33,588	)		(62,103	)		(11,175	)		(18,851	)		(16,763	)		(18,968	)
Adjustments to maintain reserves		10			(6,363	)		14			(937	)		(6	)		(247	)		17			4
Net equity transactions		(1,071,082	)		21,376			(950,438	)		(430,600	)		(369,702	)		(201,321	)		(14,624	)		(157,187	)
Net change in contract owners’ equity		(1,155,319	)		333,502			(958,975	)		(139,325	)		(365,970	)		(90,310	)		13,046			(136,985	)
Contract owners’ equity beginning of period		2,480,101			2,146,599			1,167,576			1,306,901			600,899			691,209			360,382			497,367
Contract owners’ equity end of period	$	1,324,782			2,480,101			208,601			1,167,576			234,929			600,899			373,428			360,382
CHANGES IN UNITS:
Beginning units		150,067			148,663			44,778			63,884			39,982			54,891			18,984			27,754
Units purchased		74			22,700			718			-			-			-			91			-
Units redeemed		(68,953	)		(21,296	)		(37,352	)		(19,106	)		(24,142	)		(14,909	)		(839	)		(8,770	)
Ending units		81,188			150,067			8,144			44,778			15,840			39,982			18,236			18,984

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	VWEM						VWHA						WRGP						WRRESP
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	9,760			12,435			18,120			(585	)		4			13			28			84
Realized gain (loss) on investments		439,583			135,017			270,504			34,149			338			243			292			158
Change in unrealized gain (loss) on investments		(937,216	)		364,718			(341,490	)		243,233			(368	)		258			636			1,203
Reinvested capital gains		-			-			22,357			-			114			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(487,873	)		512,170			(30,509	)		276,797			88			514			956			1,445
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			(18,444	)		-			(27,960	)		-			-			-			-
Transfers between funds		(1,457,347	)		(251,388	)		(1,130,259	)		1,421,161			(622	)		971			12,815			815
Surrenders (note 6)		-			(175,186	)		-			(60,290	)		-			(535	)		-			-
Death Benefits (note 4)		-			(12,409	)		-			-			-			-			-			-
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(49,141	)		(55,120	)		(20,075	)		(9,254	)		(136	)		(140	)		(326	)		(241	)
Adjustments to maintain reserves		(67	)		19,609			926			32,570			(1	)		7			2			4
Net equity transactions		(1,506,555	)		(492,938	)		(1,149,408	)		1,356,227			(759	)		303			12,491			578
Net change in contract owners’ equity		(1,994,428	)		19,232			(1,179,917	)		1,633,024			(671	)		817			13,447			2,023
Contract owners’ equity beginning of period		3,182,268			3,163,036			1,824,986			191,962			3,610			2,793			6,344			4,321
Contract owners’ equity end of period	$	1,187,840			3,182,268			645,069			1,824,986			2,939			3,610			19,791			6,344
CHANGES IN UNITS:
Beginning units		99,639			125,304			43,231			5,862			259			225			504			440
Units purchased		303			2,123			11,907			39,108			13			83			1,022			85
Units redeemed		(49,735	)		(27,788	)		(36,803	)		(1,739	)		(65	)		(49	)		(25	)		(21	)
Ending units		50,207			99,639			18,335			43,231			207			259			1,501			504

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	SVDF						SVOF						CSIEF3						GEF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(72	)		(57	)		(123	)		1,921			9,100			(523	)		293			1,136
Realized gain (loss) on investments		275			232			27,718			(48,970	)		(14,605	)		(8,337	)		35,094			(15,458	)
Change in unrealized gain (loss) on investments		(342	)		7,370			(23,439	)		115,205			(43,725	)		38,484			(34,379	)		32,333
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(139	)		7,545			4,156			68,156			(49,230	)		29,624			1,008			18,011
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-			-			-			-			(3	)		157			-			329
Transfers between funds		2,260			6,067			(100,510	)		(360,861	)		(305,513	)		(138,605	)		(158,622	)		(31,012	)
Surrenders (note 6)		-			-			-			(6,155	)		-			(1,070	)		-			(1,070	)
Death Benefits (note 4)		-			-			-			-			-			(6,066	)		-			(7,547	)
Net policy repayments (loans) (note 5)		-			-			-			-			-			-			-			-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(1,292	)		(978	)		(2,587	)		(4,478	)		(5,299	)		(10,876	)		(2,350	)		(8,079	)
Adjustments to maintain reserves		(21	)		11			(4	)		11			2			22			6			(27	)
Net equity transactions		947			5,100			(103,101	)		(371,483	)		(310,813	)		(156,438	)		(160,966	)		(47,406	)
Net change in contract owners’ equity		808			12,645			(98,945	)		(303,327	)		(360,043	)		(126,814	)		(159,958	)		(29,395	)
Contract owners’ equity beginning of period		28,652			16,007			151,880			455,207			360,043			486,857			159,958			189,353
Contract owners’ equity end of period	$	29,460			28,652			52,935			151,880			-			360,043			-			159,958
CHANGES IN UNITS:
Beginning units		1,173			886			9,786			36,207			31,819			48,168			11,059			14,555
Units purchased		83			336			234			1,090			-			2,395			3			152
Units redeemed		(52	)		(49	)		(6,401	)		(27,511	)		(31,819	)		(18,744	)		(11,062	)		(3,648	)
Ending units		1,204			1,173			3,619			9,786			-			31,819			-			11,059

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	WSCP						GVGU1					GVGF1					GVGH1
	2011			2010			2011		2010			2011		2010			2011		2010
Investment activity:
Net investment income (loss)	$	905			(366	)		-		138			-		107			-		149
Realized gain (loss) on investments		78,289			(66,051	)		-		2,337			-		5,893			-		9,757
Change in unrealized gain (loss) on investments		(93,843	)		97,370			-		(2,967	)		-		(4,912	)		-		(8,957	)
Reinvested capital gains		-			-			-		-			-		-			-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(14,649	)		30,953			-		(492	)		-		1,088			-		949
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		(647	)		39			-		-			-		-			-		-
Transfers between funds		(277,892	)		(308,554	)		-		(15,661	)		-		(33,796	)		-		(92,515	)
Surrenders (note 6)		-			(5,872	)		-		-			-		-			-		-
Death Benefits (note 4)		-			(140	)		-		-			-		-			-		-
Net policy repayments (loans) (note 5)		-			-			-		-			-		-			-		-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		(10,650	)		(14,412	)		-		(202	)		-		(440	)		-		(750	)
Adjustments to maintain reserves		45			(6	)		-		(4	)		-		(3	)		-		(4	)
Net equity transactions		(289,144	)		(328,945	)		-		(15,867	)		-		(34,239	)		-		(93,269	)
Net change in contract owners’ equity		(303,793	)		(297,992	)		-		(16,359	)		-		(33,151	)		-		(92,320	)
Contract owners’ equity beginning of period		303,793			601,785			-		16,359			-		33,151			-		92,320
Contract owners’ equity end of period	$	-			303,793			-		-			-		-			-		-
CHANGES IN UNITS:
Beginning units		33,463			75,682			-		933			-		2,433			-		6,814
Units purchased		-			-			-		189			-		378			-		-
Units redeemed		(33,463	)		(42,219	)		-		(1,122	)		-		(2,811	)		-		(6,814	)
Ending units		-			33,463			-		-			-		-			-		-

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	GVUS1					GGTC					GVUG1
	2011		2010			2011		2010			2011		2010
Investment activity:
Net investment income (loss)	$	-		5			-		(62	)		-		(11	)
Realized gain (loss) on investments		-		2,683			-		29,313			-		3,706
Change in unrealized gain (loss) on investments		-		(2,218	)		-		(26,478	)		-		(2,827	)
Reinvested capital gains		-		-			-		-			-		-
Net increase (decrease) in contract owners’ equity resulting from operations		-		470			-		2,773			-		868
Equity transactions:
Purchase payments received from contract owners (notes 2a and 6)		-		-			-		-			-		-
Transfers between funds		-		(7,786	)		-		(112,736	)		-		(12,591	)
Surrenders (note 6)		-		-			-		-			-		(1	)
Death Benefits (note 4)		-		-			-		-			-		-
Net policy repayments (loans) (note 5)		-		-			-		-			-		-
Redemptions to pay cost of insurance charges and administration charges (note 2b and 2c)		-		(119	)		-		(418	)		-		(193	)
Adjustments to maintain reserves		-		-			-		-			-		(4	)
Net equity transactions		-		(7,905	)		-		(113,154	)		-		(12,789	)
Net change in contract owners’ equity		-		(7,435	)		-		(110,381	)		-		(11,921	)
Contract owners’ equity beginning of period		-		7,435			-		110,381			-		11,921
Contract owners’ equity end of period	$	-		-			-		-			-		-
CHANGES IN UNITS:
Beginning units		-		629			-		33,965			-		855
Units purchased		-		144			-		862			-		223
Units redeemed		-		(773	)		-		(34,827	)		-		(1,078	)
Ending units		-		-			-		-			-		-

See accompanying notes to financial statements.

NATIONWIDE VL SEPARATE ACCOUNT-C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

(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)

International Fund - Class 2 (AMVI2)

BLACKROCK FUNDS

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

CALVERT FUNDS

Calvert VP SRI Equity Portfolio (CVSSE)

DAVIS FUNDS

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

DELAWARE GROUP FUNDS

Small Cap Value Series - Service Class (DWVSVS)*

DREYFUS CORPORATION FUNDS

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

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

EATON VANCE FUNDS

Floating-Rate Income Fund (ETVFR)*

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)

Global Real Estate Portfolio - Class II (VKVGR2)*

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)

NVIT Emerging Markets Fund - Class I (GEM)

NVIT International Equity Fund - Class I (GIG)

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)

American Century 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)

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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)*

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

NVIT Real Estate Fund - Class I (NVRE1)*

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)

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 - Large Cap Value VIP - Class B (SVSLVB)*

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)*

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

PORTFOLIOS OF THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

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

Mutual Discovery Global Securities Fund - Class 2 (FTVMD2)*

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)

VIT - Goldman Sachs VIT Growth Opportunities Fund - Service Shares (GVGOPS)*

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

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

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)

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

PORTFOLIOS OF THE PIMCO VARIABLE INSURANCE TRUST

All Asset Portfolio - Administrative Class (PMVAAA)

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

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

Low Duration Portfolio - Administrative Class (PMVLDA)

Real Return Portfolio - Administrative Class (PMVRRA)

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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 LIFE INVESTMENT TRUST

Growth and Income Portfolio - Class I (ACGI)

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)*

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

VIP Trust - Global Bond Fund: Initial Class (VWBF)

VIP Trust - Emerging Markets Fund: Initial Class (VWEM)

VIP Trust - Global 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 VT Opportunity Fund - Class 2 (SVOF)

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

*At December 31, 2011, 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, 2011 of such funds. The cost of investments sold is determined on a first in - first out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed), and dividends and capital gain distributions are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code. The Company does not provide for income taxes within the Account. Taxes are generally the responsibility of the contract owner upon termination or withdrawal.

(e) Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. generally accepted accounting principles may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(f) Recently Issued Accounting Standards

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)

NATIONWIDE VL SEPARATE ACCOUNT-C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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 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 Account adopted this guidance effective January 1, 2010, except for the new activity in Level 3 measurements, which the Account adopted for the fiscal period beginning January 1, 2011.

In May 2011, the FASB issued ASU 2011-04, which amends existing guidance in Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures. The guidance in this ASU clarifies existing fair value measurement guidance and expands disclosures primarily related to Level 3 fair value measurements. The ASU will require reporting entities to disclose quantitative information about the unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. The Account will adopt this guidance prospectively for the annual period beginning January 1, 2012. The adoption of this guidance will result in increased disclosures and will have an immaterial impact on the Account’s financial statements.

(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, 2011and 2010, total front-end sales charge deductions were $80,476 and $45,560, 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.

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

(4) Death Benefits

Death benefit proceeds result in a redemption of the contract value from the Account and payment of those proceeds, less any outstanding policy loans (and policy charges), to the legal beneficiary. In the event that the guaranteed death benefit exceeds the contract value on the date of death, the excess is paid by the Company’s general account.

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow 90% of a policy’s 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, 2011 and 2010, total transfers into the Account from the fixed account were $7,893 and $771, respectively, and total transfers from the Account to the fixed account were $482,856 and $5,073,622, 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 and mutual funds where the value per share (unit) is determined and published and is the basis for current transactions for identical assets or liabilities at the measurement date.

• Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means.

• Level 3 – Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate about the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the method of valuation and the valuation inputs.

The Account recognizes 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, 2011.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2011:

	Level 1	Level 2	Level 3	Total
Separate Account Investments	$175,115,478	$0	$0	$175,115,478

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 31,2011 are as follows:

	Purchases of Investments		Sales of Investments
AMVGS2 ( Global Small Capitalization Fund - Class 2 )	$	6,029	$	13
AMVGR2 ( Growth Fund - Class 2 )		1,675,792		150,731
AMVI2 ( International Fund - Class 2 )		218,239		3,377
MLVLC2 ( Large Cap Core V.I. Fund - Class II )		3,034,515		2,670,976
CVSSE ( Calvert VP SRI Equity Portfolio )		358		1,575
DSIF ( Stock Index Fund, Inc. - Initial Shares )		10,745,532		23,943,929
DSRG ( The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares )		2,141		12,020
OGGO ( Insurance Trust - Insurance Trust Diversified Mid Cap Growth Portfolio 1 )		44,375		395,220
JABS ( Janus Aspen Series - Balanced Portfolio - Service Shares )		131,648		39,821
JACAS ( Janus Aspen Series - Forty Portfolio - Service Shares )		57,905		113,764
JAGTS ( Janus Aspen Series - Global Technology Portfolio - Service Shares )		241,384		1,724,785
JAIGS ( Janus Aspen Series - Overseas Portfolio - Service Shares )		101,803		171,087
LZREMS ( Retirement Emerging Markets Equity Portfolio - Service Shares )		1,114,468		66,518
LOVMCV ( Series Fund - Mid Cap Value Portfolio - Class VC )		4,544		5,524
MVRISC ( Research International Series - Service Class )		1,537		7,928
MVFSC ( Value Series - Service Class )		27,872		3,933
MVIVSC ( Variable Insurance Trust II - International Value Portfolio - Service Class )		928,461		247,061
MSEM ( Emerging Markets Debt Portfolio - Class I )		597,779		53,869
MSVMG ( Mid Cap Growth Portfolio - Class I )		73,087		44,170
MSVRE ( U.S. Real Estate Portfolio - Class I )		452,459		144,390
HIBF ( Federated NVIT High Income Bond Fund - Class I )		218,355		543,634
GEM ( NVIT Emerging Markets Fund - Class I )		14,805		27,174
GIG ( NVIT International Equity Fund - Class I )		66,342		33,905
TRF ( NVIT Fund - Class I )		120,082		34,522
GBF ( NVIT Government Bond Fund - Class I )		1,760,026		1,055,429
CAF ( American Century NVIT Growth Fund - Class I )		8,267		16,845
GVIX2 ( NVIT International Index Fund - Class II )		1,032		968

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

GVIDA ( NVIT Investor Destinations Aggressive Fund - Class II )			182		2,091
GVIDC ( NVIT Investor Destinations Conservative Fund - Class II )			707		313
GVIDM ( NVIT Investor Destinations Moderate Fund - Class II )			125,679		610,190
GVDMA ( NVIT Investor Destinations Moderately Aggressive Fund - Class II )			34,871		2,374
GVDMC ( NVIT Investor Destinations Moderately Conservative Fund - Class II )			1,490		730
MCIF ( NVIT Mid Cap Index Fund - Class I )			1,957,250		2,340,912
SAM ( NVIT Money Market Fund - Class I )			-		6,533
SAM5 ( NVIT Money Market Fund - Class V )			31,958,139		25,037,447
NVMLG1 ( NVIT Multi - Manager Large Cap Growth Fund - Class I )			21,556		22,408
NVMLV1 ( NVIT Multi - Manager Large Cap Value Fund - Class I )			12,995		7,603
NVMMG1 ( NVIT Multi - Manager Mid Cap Growth Fund - Class I )			3,974		20,024
SCGF ( NVIT Multi - Manager Small Cap Growth Fund - Class I )			1,109,227		1,212,853
SCVF ( NVIT Multi - Manager Small Cap Value Fund - Class I )			12,305		3,430,505
SCF ( NVIT Multi - Manager Small Company Fund - Class I )			431,444		904,440
MSBF ( NVIT Multi - Sector Bond Fund - Class I )			66,188		722,383
EIF ( Van Kampen NVIT Comstock Value Fund - Class I )			4,776		45,116
ALVGIA ( VPS Growth and Income Portfolio - Class A )			18,301		6,112
ALVIVA ( VPS International Value Portfolio - Class A )			236,852		320,011
ACVB ( VP Balanced Fund - Class I )			6,671		14,102
ACVCA ( VP Capital Appreciation Fund - Class I )			14,517		38,971
ACVIG ( VP Income & Growth Fund - Class I )			145,448		156,904
ACVI ( VP International Fund - Class I )			95,520		265,362
ACVMV1 ( VP Mid Cap Value Fund - Class I )			297,322		24,859
ACVU1 ( VP Ultra(R) Fund - Class I )			12,701		12,310
ACVV ( VP Value Fund - Class I )			52,311		198,370
ACVVS1 ( VP Vista(SM) Fund - Class I )			4,171		6,558
DVMCS ( MidCap Stock Portfolio - Initial Shares )			2,405		2,056
DVSCS ( Small Cap Stock Index Portfolio - Service Shares )			1,868,246		2,541,799
DCAP ( Appreciation Portfolio - Initial Shares )			90,568		49,474
DGI ( Growth and Income Portfolio - Initial Shares )			5,768		11,115
DVIV ( International Value Portfolio - Initial Shares )			92,904		515,338
FQB ( Quality Bond Fund II - Primary Shares )			69,146		287,303
FEIP ( Equity - Income Portfolio - Initial Class )			5,319		3,150
FHIP ( High Income Portfolio - Initial Class )			8,015		2,274
FAMP ( VIP Fund - Asset Manager Portfolio - Initial Class )			835,954		1,779,525
FCP ( VIP Fund - Contrafund Portfolio - Initial Class )			20,817		10,611
FCS ( VIP Fund - Contrafund Portfolio - Service Class )			3,482,331		3,756,356
FEIS ( VIP Fund - Equity - Income Portfolio - Service Class )			63,106		131,830
FGOP ( VIP Fund - Growth Opportunities Portfolio - Initial Class )			1,693		1,216
FGOS ( VIP Fund - Growth Opportunities Portfolio - Service Class )			332,407		116,419
FGP ( VIP Fund - Growth Portfolio - Initial Class )			5,331		5,210
FGS ( VIP Fund - Growth Portfolio - Service Class )			93,487		209,661
FHIS ( VIP Fund - High Income Portfolio - Service Class )			274,637		1,839,162
FIGBS ( VIP Fund - Investment Grade Bond Portfolio - Service Class )			9,498		5,592
FMCS ( VIP Fund - Mid Cap Portfolio - Service Class )			544,821		257,224
FOP ( VIP Fund - Overseas Portfolio - Initial Class )			2,549		3,422
FOS ( VIP Fund - Overseas Portfolio - Service Class )			85,541		170,124
FVSS ( VIP Fund - Value Strategies Portfolio - Service Class )			2,612		1,272
FTVSV2 ( Franklin Small Cap Value Securities Fund - Class 2 )			4,361,949		1,175,899
TIF2 ( Templeton Foreign Securities Fund - Class 2 )			52,429		25,644
FTVGI2 ( Templeton Global Bond Securities Fund - Class 2 )			638,530		6,280
GVMCE ( Goldman Sachs VIT - Goldman Sachs Mid Cap Value Fund - Institutional Shares )			128,490		874,414
BNCAI ( Lincoln VIP Trust - Baron Growth Opportunities Funds - Service Class )			57,172		133,951
AMTB ( Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares )			8,130		8,071
AMTG ( Growth Portfolio - I Class Shares )			5,601		18,073
AMGP ( Guardian Portfolio - I Class Shares )			21,889		12,960
AMCG ( Mid - Cap Growth Portfolio - I Class Shares )			5,858		148,512
AMTP ( Partners Portfolio - I Class Shares )			8,006		61,088
AMFAS ( Small - Cap Growth Portfolio - S Class Shares )			862		5,142
OVMS ( Balanced Fund/VA - Non - Service Shares )			12,892		19,421
OVGR ( Capital Appreciation Fund/VA - Non - Service Shares )			40,110		1,462,000
OVB ( Core Bond Fund/VA - Non - Service Shares )			32,560		27,111
OVGS ( Global Securities Fund/VA - Non - Service Shares )			122,059		305,758
OVGI ( Main Street Fund(R)/VA - Non - Service Shares )			3,525		5,702
OVAG ( Mid - Cap Growth Fund/VA - Non - Service Shares )			29,960		251,582
PMVAAA ( All Asset Portfolio - Administrative Class )			3,197,328		24,605
PMVFBA ( Foreign Bond Portfolio (Unhedged) - Administrative Class )			2,110		438,750
PMVLDA ( Low Duration Portfolio - Administrative Class )			95,696		112,905
PMVRRA ( Real Return Portfolio - Administrative Class )			1,022,263		899,501
PMVTRA ( Total Return Portfolio - Administrative Class )			20,714,470		6,766,691
PIHYB1 ( Variable Contracts Trust - High Yield VCT Portfolio - Class I Shares )			7,341		3,202
ACGI ( Growth and Income Portfolio - Class I )			507,556		21,204
AVBVI ( V.I. Basic Value Fund - Series I )			1,132		5,642
AVCDI ( V.I. Capital Development Fund - Series I )			241		481
AVIE ( V.I. International Growth Fund - Series I )			123,372		71,595
ROCMC ( Micro - Cap Portfolio - Investment Class )			1,541,628		2,315,272
TREI2 ( Equity Income Portfolio - II )			112,867		1,159,335
TRMCG2 ( Mid - Cap Growth Portfolio - II )			159,675		1,087,633
TRNAG1 ( New America Growth Portfolio )			112,678		464,495
VWBF ( VIP Trust - Global Bond Fund: Initial Class )			52,456		32,029
VWEM ( VIP Trust - Emerging Markets Fund: Initial Class )			4,499,513		5,976,860
VWHA ( VIP Trust - Global Hard Assets Fund: Initial Class )			772,486		1,848,990
WRGP ( Ivy Fund Variable Insurance Portfolios, Inc. - Growth )			545		1,181
WRRESP ( Ivy Fund Variable Insurance Portfolios, Inc. - Real Estate Securities )			13,160		643
SVDF ( Advantage Funds Variable Trust - VT Discovery Fund )			3,936		3,047
SVOF ( Advantage VT Opportunity Fund - Class 2 )			5,338		108,560
CSIEF3 ( Credit Suisse Trust - International Equity Flex III Portfolio(obsolete) )			309,495		611,208
GEF ( Gartmore NVIT Worldwide Leaders Fund - Class I )			967		161,684
WSCP ( U.S. Equity Flex I Portfolio(obsolete) )			243,312		531,586
	Total	$	105,200,176	$	105,811,489

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT-C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

(8) Financial Highlights

The following tabular presentation is a summary of units, unit fair values, contract owners’ equity outstanding and contract expense rates for variable life contracts as of December 31, 2011, and the investment income ratio and total return for each of the periods in the five year period ended December 31, 2011. Total return and investment income ratio for periods with no ending contract owners’ equity were considered to be irrelevant, and therefore are not presented.

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Global Small Capitalization Fund - Class 2 (AMVGS2)
2011	0.25%		668	$	8.995318	$	6,009		0.02%		-19.35%
Growth Fund - Class 2 (AMVGR2)
2011	0.25%		138,625		9.945799		1,378,736		0.66%		-4.52%
International Fund - Class 2 (AMVI2)
2011	0.20%		15,072		7.842030		118,195		1.62%		-21.58%		5/2/2011
2011	0.25%		9,701		7.839419		76,050		1.62%		-21.61%		5/2/2011
Large Cap Core V.I. Fund - Class II (MLVLC2)
2011	0.25%		52		11.782911		613		0.25%		1.95%
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%
Calvert VP SRI Equity Portfolio (CVSSE)
2011	0.25%		355		16.617281		5,899		0.00%		-1.59%
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%
Stock Index Fund, Inc. - Initial Shares (DSIF)
2011	0.10%		35,823		11.729321		420,179		1.62%		1.78%
2011	0.20%		741,013		11.900956		8,818,763		1.62%		1.67%
2011	0.25%		433,464		13.389225		5,803,747		1.62%		1.62%
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%
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
2011	0.25%		1,537		11.403159		17,527		0.84%		0.65%
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%
Insurance Trust - Insurance Trust Diversified Mid Cap Growth Portfolio 1 (OGGO)
2011	0.25%		32,145		19.655518		631,827		0.00%		-6.38%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)
2011	0.20%		85	$	18.392478	$	1,563		2.77%		1.15%
2011	0.25%		7,459		18.306924		136,551		2.77%		1.10%
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%
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)
2011	0.20%		43		10.136220		436		0.27%		-7.13%
2011	0.25%		15,063		10.075943		151,774		0.27%		-7.17%
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%
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)
2011	0.25%		37,279		5.095046		189,938		0.00%		-8.88%
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%
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)
2011	0.25%		148,031		13.063595		1,933,817		0.38%		-32.51%
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%
Retirement Emerging Markets Equity Portfolio - Service Shares (LZREMS)
2011	0.20%		36,453		9.320058		339,744		2.69%		-18.16%
2011	0.25%		58,357		9.312320		543,439		2.69%		-18.20%
Series Fund - Mid Cap Value Portfolio - Class VC (LOVMCV)
2011	0.25%		2,998		11.586400		34,736		0.22%		-4.25%
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)
2011	0.25%		9,778		7.712183		75,410		1.71%		-11.28%
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)
2011	0.25%		12,156		8.867804		107,797		1.17%		-0.71%
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)
2011	0.25%		187,079		13.989490		2,617,140		0.98%		-2.02%
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

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Emerging Markets Debt Portfolio - Class I (MSEM)
2011	0.25%		20,882	$	27.548050	$	575,258		0.67%		6.77%
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%
Mid Cap Growth Portfolio - Class I (MSVMG)
2011	0.25%		8,177		11.507335		94,095		0.28%		-7.35%
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%
U.S. Real Estate Portfolio - Class I (MSVRE)
2011	0.20%		9,222		29.258108		269,818		0.88%		5.71%
2011	0.25%		30,847		30.477778		940,148		0.88%		5.66%
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%
Federated NVIT High Income Bond Fund - Class I (HIBF)
2011	0.20%		12,948		18.949115		245,353		8.33%		3.61%
2011	0.25%		56,573		19.252108		1,089,150		8.33%		3.56%
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%
NVIT Emerging Markets Fund - Class I (GEM)
2011	0.25%		39,554		22.311980		882,528		0.69%		-22.57%
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%
NVIT International Equity Fund - Class I (GIG)
2011	0.25%		6,959		11.877298		82,654		1.44%		-9.99%
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%
NVIT Fund - Class I (TRF)
2011	0.20%		9,622		11.842189		113,946		1.31%		0.33%
2011	0.25%		14,528		11.649334		169,242		1.31%		0.28%
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%
NVIT Government Bond Fund - Class I (GBF)
2011	0.20%		72,792		17.024059		1,239,215		2.99%		7.04%
2011	0.25%		184,779		20.239936		3,739,915		2.99%		6.99%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
American Century NVIT Growth Fund - Class I (CAF)
2011	0.25%		3,316	$	8.000719	$	26,530		0.59%		-0.94%
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%
NVIT International Index Fund - Class II (GVIX2)
2011	0.25%		141		6.876547		970		0.00%		-12.94%
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
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)
2011	0.25%		179		14.450227		2,587		1.83%		-4.17%
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)
2011	0.25%		416		14.297532		5,948		2.41%		2.67%
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%
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)
2011	0.20%		49		14.815234		726		2.72%		-0.24%
2011	0.25%		2,261		14.741846		33,331		2.72%		-0.29%
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%
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
2011	0.25%		4,776		14.761085		70,499		2.00%		-2.37%
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%
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
2011	0.25%		437		14.814478		6,474		2.32%		1.81%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
NVIT Mid Cap Index Fund - Class I (MCIF)
2011	0.20%		280,177	$	18.813235	$	5,271,036		0.77%		-2.74%
2011	0.25%		2,346		24.454135		57,369		0.77%		-2.79%
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%
NVIT Money Market Fund - Class I (SAM)
2011	0.25%		23,658		13.576905		321,202		0.00%		-0.25%
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%
NVIT Money Market Fund - Class V (SAM5)
2011	0.20%		950,693		11.517285		10,949,402		0.00%		-0.20%
2011	0.25%		4,222,427		11.464248		48,406,950		0.00%		-0.25%
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%
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
2011	0.25%		15,823		9.179010		145,239		0.01%		-3.15%
2010	0.25%		15,853		9.477375		150,245		0.05%		15.22%
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
2011	0.25%		4,891		9.861595		48,233		1.14%		-6.06%
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)
2011	0.25%		678		9.607082		6,514		0.00%		-4.47%
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)
2011	0.25%		14,809		15.717643		232,763		0.00%		-0.90%
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)
2011	0.25%		11,349		23.539764		267,153		0.23%		-5.31%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
NVIT Multi-Manager Small Company Fund - Class I (SCF)
2011	0.20%		83	$	17.004023	$	1,411		0.54%		-5.75%
2011	0.25%		75,820		22.565446		1,710,912		0.54%		-5.79%
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%
NVIT Multi-Sector Bond Fund - Class I (MSBF)
2011	0.25%		2,326		18.651135		43,383		3.46%		5.28%
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%
Van Kampen NVIT Comstock Value Fund - Class I (EIF)
2011	0.25%		1,531		11.933646		18,270		1.19%		-2.57%
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%
VPS Growth and Income Portfolio - Class A (ALVGIA)
2011	0.20%		51		16.210964		827		1.11%		6.10%
2011	0.25%		2,633		16.135567		42,485		1.11%		6.05%
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%
VPS International Value Portfolio - Class A (ALVIVA)
2011	0.20%		65,987		6.320359		417,062		3.99%		-19.41%
2011	0.25%		42,792		6.302451		269,694		3.99%		-19.45%
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%
VP Balanced Fund - Class I (ACVB)
2011	0.25%		17,669		14.778814		261,127		1.90%		5.07%
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)
2011	0.25%		18,298		21.745340		397,896		0.00%		-6.74%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
VP Income & Growth Fund - Class I (ACVIG)
2011	0.25%		33,414	$	13.385322	$	447,257		1.53%		2.85%
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%
VP International Fund - Class I (ACVI)
2011	0.25%		76,433		12.813741		979,393		1.44%		-12.26%
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%
VP Mid Cap Value Fund - Class I (ACVMV1)
2011	0.25%		26,309		10.528412		276,992		0.40%		-0.94%
VP Ultra(R) Fund - Class I (ACVU1)
2011	0.20%		23		12.033779		277		0.00%		0.86%
2011	0.25%		3,112		11.975768		37,269		0.00%		0.81%
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%
VP Value Fund - Class I (ACVV)
2011	0.25%		39,691		18.386879		729,794		2.02%		0.76%
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%
VP Vista(SM) Fund - Class I (ACVVS1)
2011	0.25%		3,534		12.332624		43,583		0.00%		-8.12%
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)
2011	0.25%		1,020		18.082797		18,444		0.49%		0.14%
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%
Small Cap Stock Index Portfolio - Service Shares (DVSCS)
2011	0.20%		311,524		16.841422		5,246,507		0.63%		0.36%
2011	0.25%		1,371		16.760220		22,978		0.63%		0.31%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Appreciation Portfolio - Initial Shares (DCAP)
2011		0.20%		221	$	13.851795	$	3,061		1.59%		8.79%
2011		0.25%		31,699		16.078450		509,671		1.59%		8.74%
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%
Growth and Income Portfolio - Initial Shares (DGI)
2011		0.25%		13,415		10.790773		144,758		1.25%		-3.04%
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%
International Value Portfolio - Initial Shares (DVIV)
2011		0.25%		21,062		15.073543		317,479		2.32%		-18.68%
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%
Quality Bond Fund II - Primary Shares (FQB)
2011		0.25%		14,557		18.626322		271,143		6.00%		2.02%
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%
Equity-Income Portfolio - Initial Class (FEIP)
2011		0.25%		3,384		12.669334		42,873		2.66%		0.72%
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)
2011		0.25%		2,722		18.626329		50,701		7.24%		3.77%
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)
2011		0.25%		238,337		14.244553		3,395,004		1.88%		-2.80%
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%
VIP Fund - Contrafund Portfolio - Initial Class (FCP)
2011		0.25%		9,281		16.241386		150,736		1.08%		-2.77%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
VIP Fund - Contrafund Portfolio - Service Class (FCS)
2011		0.20%		47,973	$	17.120921	$	821,342		0.67%		-2.83%
2011		0.25%		54,122		20.336584		1,100,657		0.67%		-2.88%
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%
VIP Fund - Equity-Income Portfolio - Service Class (FEIS)
2011		0.25%		24,684		14.059555		347,046		2.38%		0.61%
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%
VIP Fund - Growth Opportunities Portfolio - Initial Class (FGOP)
2011		0.25%		1,426		11.039438		15,742		0.17%		2.04%
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)
2011		0.25%		116,596		10.178749		1,186,801		0.05%		1.93%
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%
VIP Fund - Growth Portfolio - Initial Class (FGP)
2011		0.25%		5,137		9.709124		49,876		0.38%		-0.05%
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%
VIP Fund - Growth Portfolio - Service Class (FGS)
2011		0.20%		296		10.228245		3,028		0.24%		-0.06%
2011		0.25%		46,640		13.492068		629,270		0.24%		-0.11%
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%
VIP Fund - High Income Portfolio - Service Class (FHIS)
2011		0.25%		5,829		13.802358		80,454		2.08%		3.67%
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%
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)
2011		0.25%		3,082		13.995522		43,134		3.53%		6.94%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)
2011		0.20%		31,565	$	15.148830	$	478,173		0.18%		-10.89%
2011		0.25%		56,899		15.098460		859,087		0.18%		-10.94%
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%
VIP Fund - Overseas Portfolio - Initial Class (FOP)
2011		0.25%		2,213		10.993482		24,329		1.44%		-17.37%
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)
2011		0.20%		125		11.670540		1,459		1.02%		-17.39%
2011		0.25%		11,702		11.808142		138,179		1.02%		-17.43%
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%
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)
2011		0.25%		1,256		14.695999		18,458		0.96%		-9.07%
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%
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)
2011		0.20%		15,806		13.679206		216,214		0.77%		-3.95%
2011		0.25%		241,525		13.633645		3,292,866		0.77%		-4.00%
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%
Templeton Foreign Securities Fund - Class 2 (TIF2)
2011		0.20%		90		17.842000		1,606		1.57%		-10.81%
2011		0.25%		8,874		17.759014		157,593		1.57%		-10.86%
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%
Templeton Global Bond Securities Fund - Class 2 (FTVGI2)
2011		0.25%		42,354		14.416178		610,583		0.00%		-1.12%
Goldman Sachs VIT - Goldman Sachs Mid Cap Value Fund - Institutional Shares  (GVMCE)
2011		0.25%		67,330		20.719959		1,395,075		0.57%		-6.61%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Lincoln VIP Trust - Baron Growth Opportunities Funds - Service Class (BNCAI)
2011		0.20%		80	$	21.272621	$	1,702		0.00%		3.82%
2011		0.25%		9,869		21.173648		208,963		0.00%		3.76%
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%
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares  (AMTB)
2011		0.25%		6,903		13.142399		90,722		3.98%		0.04%
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%
Growth Portfolio - I Class Shares (AMTG)
2011		0.25%		16,821		11.972262		201,385		0.00%		-0.46%
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)
2011		0.25%		5,520		14.426236		79,633		0.51%		-3.18%
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%
Mid-Cap Growth Portfolio - I Class Shares (AMCG)
2011		0.25%		1,814		19.104154		34,655		0.00%		0.22%
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%
Partners Portfolio - I Class Shares (AMTP)
2011		0.25%		24,296		12.790357		310,755		0.00%		-11.58%
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%
Small-Cap Growth Portfolio - S Class Shares (AMFAS)
2011		0.25%		314		13.176815		4,138		0.00%		-1.31%
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%
Balanced Fund/VA - Non-Service Shares (OVMS)
2011		0.25%		26,839		11.596444		311,237		2.24%		0.47%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Capital Appreciation Fund/VA - Non-Service Shares (OVGR)
2011		0.25%		45,765	$	14.414807	$	659,694		0.56%		-1.40%
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%
Core Bond Fund/VA - Non-Service Shares (OVB)
2011		0.25%		25,148		11.614406		292,079		5.68%		8.00%
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%
Global Securities Fund/VA - Non-Service Shares (OVGS)
2011		0.25%		101,503		13.838516		1,404,651		1.27%		-8.52%
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%
Main Street Fund(R)/VA - Non-Service Shares (OVGI)
2011		0.25%		10,556		11.351026		119,821		0.83%		-0.26%
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%
Mid-Cap Growth Fund/VA - Non-Service Shares (OVAG)
2011		0.25%		10,534		12.222308		128,750		0.00%		0.84%
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%
All Asset Portfolio - Administrative Class (PMVAAA)
2011		0.25%		203,903		15.648744		3,190,826		12.33%		1.70%
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%
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)
2011		0.20%		172		14.122982		2,429		1.68%		0.91%
2011		0.25%		94,955		14.057158		1,334,797		1.68%		0.86%
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%
Real Return Portfolio - Administrative Class (PMVRRA)
2011		0.25%		287,234		18.153657		5,214,348		2.05%		11.39%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Total Return Portfolio - Administrative Class (PMVTRA)
2011		0.20%		1,141,251	$	17.303112	$	19,747,194		2.63%		3.40%
2011		0.25%		534,042		17.222369		9,197,468		2.63%		3.35%
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%
Variable Contracts Trust - High Yield VCT Portfolio - Class I Shares  (PIHYB1)
2011		0.25%		1,537		20.490135		31,493		5.28%		-1.91%
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%
Growth and Income Portfolio - Class I (ACGI)
2011		0.25%		49,129		10.081770		495,307		0.00%		-2.25%
V.I. Basic Value Fund - Series I (AVBVI)
2011		0.25%		425		12.900080		5,483		0.62%		-3.29%
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%
V.I. Capital Development Fund - Series I (AVCDI)
2011		0.25%		195		17.662531		3,444		0.00%		-7.39%
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)
2011		0.25%		5,302		17.244564		91,431		1.51%		-6.97%
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%
Micro-Cap Portfolio - Investment Class (ROCMC)
2011		0.20%		9,938		24.267837		241,174		1.70%		-12.28%
2011		0.25%		66,349		24.154962		1,602,658		1.70%		-12.32%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Equity Income Portfolio - II (TREI2)
2011		0.20%		73	$	16.393623	$	1,197		1.37%		-1.22%
2011		0.25%		81,115		16.317395		1,323,585		1.37%		-1.27%
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%
Mid-Cap Growth Portfolio - II (TRMCG2)
2011		0.25%		8,144		25.614079		208,601		0.00%		-1.77%
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%
New America Growth Portfolio (TRNAG1)
2011		0.25%		15,840		14.831357		234,929		0.11%		-1.32%
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%
VIP Trust - Global Bond Fund: Initial Class (VWBF)
2011		0.25%		18,236		20.477523		373,428		7.67%		7.87%
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%
VIP Trust - Emerging Markets Fund: Initial Class (VWEM)
2011		0.25%		50,207		23.658853		1,187,840		0.62%		-25.92%
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%
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)
2011		0.25%		18,335		35.182382		645,069		1.78%		-16.66%
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%
Ivy Fund Variable Insurance Portfolios, Inc. - Growth (WRGP)
2011		0.25%		207		14.198847		2,939		0.37%		1.87%
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)
2011		0.25%		1,501		13.185267		19,791		0.57%		4.75%
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)
2011		0.25%		1,204		24.468093		29,460		0.00%		0.17%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Advantage VT Opportunity Fund - Class 2 (SVOF)
2011		0.25%		3,619	$	14.626997	$	52,935		0.09%		-5.75%
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%
Credit Suisse Trust- International Equity Flex III Portfolio(obsolete) (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
Gartmore NVIT Global Utilities Fund - Class I(obsolete) (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%
Gartmore NVIT Worldwide Leaders Fund - Class I (obsolete) (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%
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%
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%
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%
NVIT Global Financial Services Fund - Class I(obsolete) (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%
NVIT Health Sciences Fund - Class I(obsolete) (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%
NVIT Leaders Fund - Class I(obsolete) (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 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%
NVIT Technology & Communications Fund - Class I(obsolete) (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%
NVIT U.S. Growth Leaders Fund - Class I(obsolete) (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%
U.S. Equity Flex I Portfolio(obsolete) (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%
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%

(Continued)

NATIONWIDE VL SEPARATE ACCOUNT - C

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Variable Series II - Strategic Value VIP - Class B(obsolete) (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%
2011		Contract owners equity:							$	175,112,108
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

*	This represents the annual contract expense rate of the variable account at the period end indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract 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 monthly average net assets (excluding months where net assets are zero). The investment income ratio for subaccounts initially funded during the period presented has not been annualized. The ratios exclude those expenses that result in direct reductions to the contractholder accounts through reductions in unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.
***	This represents the total return for the period. The total returns do not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Total return is not annualized if the underlying mutual fund option is initially offered, funded, or both, during the period presented.
****	This represents the date the underlying mutual fund option was initially added and funded.