-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F04XNHveEJTWsCN4yOmZ4S3D1LOA109XUt1vgFakkx8XgksOaWCK43Z9X083ZhHu JgDGJLmeWj/w/Jl7Kx9akw== 0001193125-05-046242.txt : 20050310 0001193125-05-046242.hdr.sgml : 20050310 20050310120137 ACCESSION NUMBER: 0001193125-05-046242 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20041231 FILED AS OF DATE: 20050310 DATE AS OF CHANGE: 20050310 EFFECTIVENESS DATE: 20050310 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE LIFE & ANNUITY VA SEPARATE ACCOUNT C CENTRAL INDEX KEY: 0000909833 IRS NUMBER: 311000740 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07908 FILM NUMBER: 05671311 BUSINESS ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 614-249-7111 MAIL ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 FORMER COMPANY: FORMER CONFORMED NAME: FINANCIAL HORIZONS VA SEPARATE ACCOUNT 3 DATE OF NAME CHANGE: 19930728 N-30D 1 dn30d.txt NATIONWIDE VA SEPARATE ACCOUNT C (811-7908) [LOGO OF NATIONWIDE/(R)/] Nationwide/(R)/ VA Separate Account-C Annual Report to Contract Owners December 31, 2004 NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY HOME OFFICE: COLUMBUS, OHIO FHL-474-12/04 NATIONWIDE VA SEPARATE ACCOUNT-C STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY December 31, 2004 Assets: Investments at fair value: Fidelity/(R)/ VIP - Equity-Income Portfolio - Initial Class (FidVIPEI) 2,819,135 shares (cost $66,611,259) ................................................ $ 71,521,452 Fidelity/(R)/ VIP - Overseas Portfolio - Initial Class (FidVIPOv) 657,962 shares (cost $13,297,816) ................................................... 11,527,492 Gartmore GVIT Money Market Fund - Class I (GVITMyMkt) 7,979,390 shares (cost $7,979,390) .................................................. 7,979,390 Gartmore GVIT Nationwide/(R)/ Fund - Class I (GVITNWFund) 3,685,283 shares (cost $45,231,490) ................................................. 41,017,194 One Group/(R)/ IT Balanced Portfolio (OGBal) 9,994,278 shares (cost $150,700,267) ................................................ 149,714,284 One Group/(R)/ IT Bond Portfolio (OGBond) 9,932,273 shares (cost $109,149,823) ................................................ 113,724,526 One Group/(R)/ IT Diversified Equity Portfolio (OGDivEq) 6,573,122 shares (cost $96,573,703) ................................................. 99,122,683 One Group/(R)/ IT Diversified Mid Cap Portfolio (OGDivMidCap) 2,273,401 shares (cost $34,069,970) ................................................. 40,239,205 One Group/(R)/ IT Equity Index Portfolio (OGEqIndx) 10,549,725 shares (cost $111,163,798) ............................................... 111,932,587 One Group/(R)/ IT Government Bond Portfolio (OGGvtBd) 13,582,030 shares (cost $147,535,230) ............................................... 157,959,005 One Group/(R)/ IT Large Cap Growth Portfolio (OGLgCapGr) 10,542,541 shares (cost $225,230,444) ............................................... 140,848,351 One Group/(R)/ IT Mid Cap Growth Portfolio (OGMidCapGr) 8,630,954 shares (cost $155,919,402) ................................................ 152,508,954 One Group/(R)/ IT Mid Cap Value Portfolio (OGMidCapV) 4,484,125 shares (cost $53,605,785) ................................................. 70,938,850 --------------- Total investments ................................................................. 1,169,033,973 Accounts receivable .......................................................................... 51,920 --------------- Total assets ...................................................................... 1,169,085,893 Accounts payable ............................................................................. - --------------- Contract owners' equity (note 4) ............................................................. $ 1,169,085,893 ===============
See accompanying notes to financial statements. 2 NATIONWIDE VA SEPARATE ACCOUNT-C STATEMENTS OF OPERATIONS Year Ended December 31, 2004
Investment activity: Total FidVIPEI FidVIPOv GVITMyMkt --------------- --------------- --------------- --------------- Reinvested dividends ...................... $ 22,650,179 1,229,192 140,879 78,294 Mortality and expense risk charges (note 2) (15,710,218) (980,040) (152,988) (133,128) --------------- --------------- --------------- --------------- Net investment income (loss) ............ 6,939,961 249,152 (12,109) (54,834) --------------- --------------- --------------- --------------- Proceeds from mutual fund shares sold ..... 199,796,451 17,143,233 2,747,895 13,028,032 Cost of mutual fund shares sold ........... (222,600,519) (17,318,495) (3,454,025) (13,028,032) --------------- --------------- --------------- --------------- Realized gain (loss) on investments ..... (22,804,068) (175,262) (706,130) - Change in unrealized gain (loss) on investments .......................... 93,197,867 6,551,219 2,008,185 - --------------- --------------- --------------- --------------- Net gain (loss) on investments .......... 70,393,799 6,375,957 1,302,055 - --------------- --------------- --------------- --------------- Reinvested capital gains .................. 293,640 293,640 - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................. $ 77,627,400 6,918,749 1,289,946 (54,834) =============== =============== =============== =============== Investment activity: GVITNWFund OGBal OGBond OGDivEq --------------- --------------- --------------- --------------- Reinvested dividends ...................... 541,142 3,604,746 5,977,619 724,164 Mortality and expense risk charges (note 2) (573,845) (2,050,583) (1,514,030) (1,288,733) --------------- --------------- --------------- --------------- Net investment income (loss) ............ (32,703) 1,554,163 4,463,589 (564,569) --------------- --------------- --------------- --------------- Proceeds from mutual fund shares sold ..... 10,961,374 24,806,667 8,465,266 9,358,756 Cost of mutual fund shares sold ........... (19,533,991) (24,718,552) (7,561,241) (11,473,693) --------------- --------------- --------------- --------------- Realized gain (loss) on investments ..... (8,572,617) 88,115 904,025 (2,114,937) Change in unrealized gain (loss) on investments .......................... 11,853,944 4,656,105 (2,277,145) 7,941,976 --------------- --------------- --------------- --------------- Net gain (loss) on investments .......... 3,281,327 4,744,220 (1,373,120) 5,827,039 --------------- --------------- --------------- --------------- Reinvested capital gains .................. - - - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................. 3,248,624 6,298,383 3,090,469 5,262,470 =============== =============== =============== =============== Investment activity: OGDivMidCap OGEqIndx OGGvtBd OGLgCapGr --------------- --------------- --------------- --------------- Reinvested dividends ...................... $ 78,993 1,221,965 8,314,583 368,734 Mortality and expense risk charges (note 2) (507,002) (1,453,776) (2,194,145) (1,936,389) --------------- --------------- --------------- --------------- Net investment income (loss) ............ (428,009) (231,811) 6,120,438 (1,567,655) --------------- --------------- --------------- --------------- Proceeds from mutual fund shares sold ..... 5,112,140 18,073,925 26,313,348 27,299,606 Cost of mutual fund shares sold ........... (5,326,158) (22,037,256) (24,104,181) (41,603,891) --------------- --------------- --------------- --------------- Realized gain (loss) on investments ..... (214,018) (3,963,331) 2,209,167 (14,304,285) Change in unrealized gain (loss) on investments .......................... 5,330,523 13,464,823 (3,014,487) 23,295,698 --------------- --------------- --------------- --------------- Net gain (loss) on investments .......... 5,116,505 9,501,492 (805,320) 8,991,413 --------------- --------------- --------------- --------------- Reinvested capital gains .................... - - - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................. $ 4,688,496 9,269,681 5,315,118 7,423,758 =============== =============== =============== =============== Investment activity: OGMidCapGr OGMidCapV --------------- --------------- Reinvested dividends ...................... - 369,868 Mortality and expense risk charges (note 2) (2,019,292) (906,267) --------------- --------------- Net investment income (loss) ............ (2,019,292) (536,399) --------------- --------------- Proceeds from mutual fund shares sold ..... 25,638,464 10,847,745 Cost of mutual fund shares sold ........... (24,435,303) (8,005,701) --------------- --------------- Realized gain (loss) on investments ..... 1,203,161 2,842,044 Change in unrealized gain (loss) on investments .......................... 16,739,660 6,647,366 --------------- --------------- Net gain (loss) on investments .......... 17,942,821 9,489,410 --------------- --------------- Reinvested capital gains .................. - - --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................. 15,923,529 8,953,011 =============== ===============
See accompanying notes to financial statements. 3 NATIONWIDE VA SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY Years Ended December 31, 2004 and 2003
Total FidVIPEI ---------------------------------- ---------------------------------- Investment activity: 2004 2003 2004 2003 --------------- --------------- --------------- --------------- Net investment income (loss) .............. $ 6,939,961 6,724,800 249,152 414,651 Realized gain (loss) on investments ....... (22,804,068) (19,764,131) (175,262) (2,159,592) Change in unrealized gain (loss) on investments .......................... 93,197,867 203,021,151 6,551,219 20,134,448 Reinvested capital gains .................. 293,640 - 293,640 - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 77,627,400 189,981,820 6,918,749 18,389,507 --------------- --------------- --------------- --------------- Equity transactions: Purchase payments received from contract owners (note 3) ................ 53,072,357 159,797,606 1,537,724 587,466 Transfers between funds ................... - - 1,297,276 1,552 Redemptions (note 3) ...................... (197,795,436) (136,950,175) (18,133,228) (10,569,652) Annuity benefits .......................... (51,608) (40,043) (18,558) (14,685) Contingent deferred sales charges (note 2) ................................ (2,016,963) (1,727,828) (75,428) (74,974) Adjustments to maintain reserves .......... 52,000 (3,501) 4,172 752 --------------- --------------- --------------- --------------- Net equity transactions ................. (146,739,650) 21,076,059 (15,388,042) (10,069,541) --------------- --------------- --------------- --------------- Net change in contract owners' equity ....... (69,112,250) 211,057,879 (8,469,293) 8,319,966 Contract owners' equity beginning of period ................................. 1,238,198,143 1,027,140,264 79,988,623 71,668,657 --------------- --------------- --------------- --------------- Contract owners' equity end of period ....... $ 1,169,085,893 1,238,198,143 71,519,330 79,988,623 =============== =============== =============== =============== CHANGES IN UNITS: Beginning units ........................... 81,261,925 77,631,286 3,383,761 3,900,487 --------------- --------------- --------------- --------------- Units purchased ........................... 8,536,235 19,664,883 167,596 139,922 Units redeemed ............................ (17,185,964) (16,034,244) (803,686) (656,648) --------------- --------------- --------------- --------------- Ending units .............................. 72,612,196 81,261,925 2,747,671 3,383,761 =============== =============== =============== =============== FidVIPOv GVITMyMkt ---------------------------------- ---------------------------------- Investment activity: 2004 2003 2004 2003 --------------- --------------- --------------- --------------- Net investment income (loss) .............. (12,109) (44,853) (54,834) (106,969) Realized gain (loss) on investments ....... (706,130) (1,372,888) - - Change in unrealized gain (loss) on investments .......................... 2,008,185 5,155,775 - - Reinvested capital gains .................. - - - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 1,289,946 3,738,034 (54,834) (106,969) --------------- --------------- --------------- --------------- Equity transactions: Purchase payments received from contract owners (note 3) ................ 251,861 85,506 1,004,335 836,304 Transfers between funds ................... 404,751 (40,223) 2,805,013 (296,316) Redemptions (note 3) ...................... (2,698,296) (1,793,347) (7,485,692) (10,265,110) Annuity benefits .......................... (9,805) (6,828) - - Contingent deferred sales charges (note 2) ................................ (10,944) (14,171) (68,413) (100,128) Adjustments to maintain reserves .......... 1,607 629 315 (24,234) --------------- --------------- --------------- --------------- Net equity transactions ................. (2,060,826) (1,768,434) (3,744,442) (9,849,484) --------------- --------------- --------------- --------------- Net change in contract owners' equity ....... (770,880) 1,969,600 (3,799,276) (9,956,453) Contract owners' equity beginning of period ................................. 12,298,928 10,329,328 11,778,988 21,735,441 --------------- --------------- --------------- --------------- Contract owners' equity end of period ....... 11,528,048 12,298,928 7,979,712 11,778,988 =============== =============== =============== =============== CHANGES IN UNITS: Beginning units ........................... 884,944 1,052,589 905,729 1,659,910 --------------- --------------- --------------- --------------- Units purchased ........................... 90,795 59,291 933,958 782,366 Units redeemed ............................ (236,892) (226,936) (1,223,020) (1,536,547) --------------- --------------- --------------- --------------- Ending units .............................. 738,847 884,944 616,667 905,729 =============== =============== =============== ===============
(Continued) 4 NATIONWIDE VA SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2004 and 2003
GVITNWFund OGBal ---------------------------------- ---------------------------------- Investment activity: 2004 2003 2004 2003 --------------- --------------- --------------- --------------- Net investment income (loss) .............. $ (32,703) (330,575) 1,554,163 2,350,801 Realized gain (loss) on investments ....... (8,572,617) (6,735,701) 88,115 (855,802) Change in unrealized gain (loss) on investments .......................... 11,853,944 17,240,522 4,656,105 20,287,478 Reinvested capital gains .................. - - - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 3,248,624 10,174,246 6,298,383 21,782,477 --------------- --------------- --------------- --------------- Equity transactions: Purchase payments received from contract owners (note 3) ................ 807,024 797,716 5,419,472 9,469,317 Transfers between funds ................... (649,289) (172,486) 5,954,326 6,891,890 Redemptions (note 3) ...................... (10,208,950) (5,917,548) (30,109,657) (17,831,769) Annuity benefits .......................... (11,807) (9,279) - - Contingent deferred sales charges (note 2) ................................ (53,141) (45,439) (259,218) (201,302) Adjustments to maintain reserves .......... 3,139 1,491 6,225 3,617 --------------- --------------- --------------- --------------- Net equity transactions ................. (10,113,024) (5,345,545) (18,988,852) (1,668,247) --------------- --------------- --------------- --------------- Net change in contract owners' equity ....... (6,864,400) 4,828,701 (12,690,469) 20,114,230 Contract owners' equity beginning of period ................................. 47,883,873 43,055,172 162,414,848 142,300,618 --------------- --------------- --------------- --------------- Contract owners' equity end of period ....... $ 41,019,473 47,883,873 149,724,379 162,414,848 =============== =============== =============== =============== CHANGES IN UNITS: Beginning units ........................... 2,352,114 2,662,106 8,573,075 8,688,908 --------------- --------------- --------------- --------------- Units purchased ........................... 78,291 129,161 796,781 1,219,828 Units redeemed ............................ (571,202) (439,153) (1,796,634) (1,335,661) --------------- --------------- --------------- --------------- Ending units .............................. 1,859,203 2,352,114 7,573,222 8,573,075 =============== =============== =============== =============== OGBond OGDivEq ---------------------------------- ---------------------------------- Investment activity: 2004 2003 2004 2003 --------------- --------------- --------------- --------------- Net investment income (loss) .............. 4,463,589 4,004,654 (564,569) (586,917) Realized gain (loss) on investments ....... 904,025 327,613 (2,114,937) (262,001) Change in unrealized gain (loss) on investments .......................... (2,277,145) (1,893,527) 7,941,976 19,578,193 Reinvested capital gains .................. - - - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 3,090,469 2,438,740 5,262,470 18,729,275 --------------- --------------- --------------- --------------- Equity transactions: Purchase payments received from contract owners (note 3) ................ 8,261,005 33,346,911 5,836,423 20,045,000 Transfers between funds ................... 4,941,555 (2,321,735) (1,039,621) 3,198,475 Redemptions (note 3) ...................... (13,440,851) (9,913,685) (11,217,266) (7,047,131) Annuity benefits .......................... - - - - Contingent deferred sales charges (note 2) ................................ (203,998) (164,808) (187,193) (123,222) Adjustments to maintain reserves .......... 3,988 (5,442) 3,976 (2,530) --------------- --------------- --------------- --------------- Net equity transactions ................. (438,301) 20,941,241 (6,603,681) 16,070,592 --------------- --------------- --------------- --------------- Net change in contract owners' equity ....... 2,652,168 23,379,981 (1,341,211) 34,799,867 Contract owners' equity beginning of period ................................. 111,076,394 87,696,413 100,468,880 65,669,013 --------------- --------------- --------------- --------------- Contract owners' equity end of period ....... 113,728,562 111,076,394 99,127,669 100,468,880 =============== =============== =============== =============== CHANGES IN UNITS: Beginning units ........................... 8,356,471 6,763,970 12,202,863 9,913,935 --------------- --------------- --------------- --------------- Units purchased ........................... 1,271,423 3,180,791 952,103 3,706,833 Units redeemed ............................ (1,303,319) (1,588,290) (1,759,404) (1,417,905) --------------- --------------- --------------- --------------- Ending units .............................. 8,324,575 8,356,471 11,395,562 12,202,863 =============== =============== =============== ===============
(Continued) 5 NATIONWIDE VA SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2004 and 2003
OGDivMidCap OGEqIndx ---------------------------------- ---------------------------------- Investment activity: 2004 2003 2004 2003 --------------- --------------- --------------- --------------- Net investment income (loss) .............. $ (428,009) (364,973) (231,811) (245,239) Realized gain (loss) on investments ....... (214,018) (245,306) (3,963,331) (2,043,889) Change in unrealized gain (loss) on investments .......................... 5,330,523 9,109,820 13,464,823 24,964,831 Reinvested capital gains .................. - - - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 4,688,496 8,499,541 9,269,681 22,675,703 --------------- --------------- --------------- --------------- Equity transactions: Purchase payments received from contract owners (note 3) ................ 1,807,638 5,587,881 5,235,803 15,428,520 Transfers between funds ................... (850,494) 536,935 (891,456) 3,553,050 Redemptions (note 3) ...................... (4,602,335) (2,800,856) (14,182,719) (9,065,563) Annuity benefits .......................... - - (10,256) (8,054) Contingent deferred sales charges (note 2) ................................ (79,901) (50,084) (203,175) (165,893) Adjustments to maintain reserves .......... 1,654 3,379 5,908 (551) --------------- --------------- --------------- --------------- Net equity transactions ................. (3,723,438) 3,277,255 (10,045,895) 9,741,509 --------------- --------------- --------------- --------------- Net change in contract owners' equity ....... 965,058 11,776,796 (776,214) 32,417,212 Contract owners' equity beginning of period ................................. 39,275,652 27,498,856 112,714,950 80,297,738 --------------- --------------- --------------- --------------- Contract owners' equity end of period ....... $ 40,240,710 39,275,652 111,938,736 112,714,950 =============== =============== =============== =============== CHANGES IN UNITS: Beginning units ........................... 3,092,031 2,787,156 11,508,551 10,354,233 --------------- --------------- --------------- --------------- Units purchased ........................... 242,420 759,212 1,573,771 3,109,212 Units redeemed ............................ (529,223) (454,337) (2,587,739) (1,954,894) --------------- --------------- --------------- --------------- Ending units .............................. 2,805,228 3,092,031 10,494,583 11,508,551 =============== =============== =============== =============== OGGvtBd OGLgCapGr ---------------------------------- ---------------------------------- Investment activity: 2004 2003 2004 2003 --------------- --------------- --------------- --------------- Net investment income (loss) .............. 6,120,438 5,628,631 (1,567,655) (1,717,300) Realized gain (loss) on investments ....... 2,209,167 1,327,825 (14,304,285) (7,234,866) Change in unrealized gain (loss) on investments .......................... (3,014,487) (4,951,216) 23,295,698 41,791,478 Reinvested capital gains .................. - - - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 5,315,118 2,005,240 7,423,758 32,839,312 --------------- --------------- --------------- --------------- Equity transactions: Purchase payments received from contract owners (note 3) ................ 9,508,771 38,195,394 4,595,188 10,105,689 Transfers between funds ................... (1,390,843) (12,839,574) (3,661,667) (96,338) Redemptions (note 3) ...................... (27,048,209) (24,773,223) (25,707,727) (16,273,733) Annuity benefits .......................... (1,182) (1,197) - - Contingent deferred sales charges (note 2) ................................ (304,283) (315,987) (211,849) (182,264) Adjustments to maintain reserves .......... 5,713 (5,955) 5,843 5,228 --------------- --------------- --------------- --------------- Net equity transactions ................. (19,230,033) 259,458 (24,980,212) (6,441,418) --------------- --------------- --------------- --------------- Net change in contract owners' equity ....... (13,914,915) 2,264,698 (17,556,454) 26,397,894 Contract owners' equity beginning of period ................................. 171,879,169 169,614,471 158,412,129 132,014,235 --------------- --------------- --------------- --------------- Contract owners' equity end of period ....... 157,964,254 171,879,169 140,855,675 158,412,129 =============== =============== =============== =============== CHANGES IN UNITS: Beginning units ........................... 10,206,873 10,193,980 9,113,925 9,560,962 --------------- --------------- --------------- --------------- Units purchased ........................... 1,268,946 3,197,606 427,738 1,119,738 Units redeemed ............................ (2,393,210) (3,184,713) (1,871,704) (1,566,775) --------------- --------------- --------------- --------------- Ending units .............................. 9,082,609 10,206,873 7,669,959 9,113,925 =============== =============== =============== ===============
(Continued) 6 NATIONWIDE VA SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2004 and 2003
OGMidCapGr OGMidCapV ---------------------------------- ---------------------------------- Investment activity: 2004 2003 2004 2003 --------------- --------------- --------------- --------------- Net investment income (loss) .............. $ (2,019,292) (1,848,843) (536,399) (428,268) Realized gain (loss) on investments ....... 1,203,161 (646,160) 2,842,044 136,636 Change in unrealized gain (loss) on investments .......................... 16,739,660 35,031,208 6,647,366 16,572,141 Reinvested capital gains .................. - - - - --------------- --------------- --------------- --------------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 15,923,529 32,536,205 8,953,011 16,280,509 --------------- --------------- --------------- --------------- Equity transactions: Purchase payments received from contract owners (note 3) ................ 5,068,744 13,203,522 3,738,369 12,108,380 Transfers between funds ................... (2,775,300) 570,420 (4,144,251) 1,014,350 Redemptions (note 3) ...................... (25,210,866) (15,942,115) (7,749,640) (4,756,443) Annuity benefits .......................... - - - - Contingent deferred sales charges (note 2) ................................ (229,890) (204,741) (129,530) (84,815) Adjustments to maintain reserves .......... 6,361 (1,450) 3,099 21,565 --------------- --------------- --------------- --------------- Net equity transactions ................. (23,140,951) (2,374,364) (8,281,953) 8,303,037 --------------- --------------- --------------- --------------- Net change in contract owners' equity ....... (7,217,422) 30,161,841 671,058 24,583,546 Contract owners' equity beginning of period ................................. 159,734,209 129,572,368 70,271,500 45,687,954 --------------- --------------- --------------- --------------- Contract owners' equity end of period ....... $ 152,516,787 159,734,209 70,942,558 70,271,500 =============== =============== =============== =============== CHANGES IN UNITS: Beginning units ........................... 5,980,485 6,088,122 4,701,103 4,004,928 --------------- --------------- --------------- --------------- Units purchased ........................... 322,961 906,669 409,452 1,354,254 Units redeemed ............................ (1,166,271) (1,014,306) (943,660) (658,079) --------------- --------------- --------------- --------------- Ending units .............................. 5,137,175 5,980,485 4,166,895 4,701,103 =============== =============== =============== ===============
See accompanying notes to financial statements. 7 ================================================================================ NATIONWIDE VA SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS December 31, 2004 and 2003 (1) Background and Summary of Significant Accounting Policies (a) Organization and Nature of Operations Nationwide VA 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 July 24, 1991. The Account is registered as a unit investment trust under the Investment Company Act of 1940. The Company offers tax qualified and non-tax qualified Individual Deferred Variable Annuity Contracts through the Account. The primary distribution for the contracts is through banks and other financial institutions. (b) The Contracts Only contracts without a front-end sales charge, but with a contingent deferred sales charge and certain other fees, are offered for purchase. See note 2 for a discussion of contract expenses. With certain exceptions, contract owners in either the accumulation or the payout phase may invest in any of the following funds: Portfolios of the Fidelity/(R)/ Variable Insurance Products Fund (Fidelity/(R)/ VIP); Fidelity/(R)/ VIP - Equity-Income Portfolio - Initial Class (FidVIPEI) Fidelity/(R)/ VIP - Overseas Portfolio - Initial Class (FidVIPOv) Portfolios of the Gartmore GVIT (Gartmore is an affiliate of the Company); Gartmore GVIT Money Market Fund - Class I (GVITMyMkt) Gartmore GVIT Nationwide/(R)/ Fund - Class I (GVITNWFund) (formerly Gartmore GVIT Total Return Fund - Class I) Funds of The One Group/(R)/ Investment Trust (One Group/(R)/ IT); One Group/(R)/ IT Balanced Portfolio (OGBal) One Group/(R)/ IT Bond Portfolio (OGBond) One Group/(R)/ IT Diversified Equity Portfolio (OGDivEq) One Group/(R)/ IT Diversified Mid Cap Portfolio (OGDivMidCap) One Group/(R)/ IT Equity Index Portfolio (OGEqIndx) One Group/(R)/ IT Government Bond Portfolio (OGGvtBd) One Group/(R)/ IT Large Cap Growth Portfolio (OGLgCapGr) One Group/(R)/ IT Mid Cap Growth Portfolio (OGMidCapGr) One Group/(R)/ IT Mid Cap Value Portfolio (OGMidCapV) At December 31, 2004, contract owners were invested in all of the above funds. The contract owners' equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see note 2). The accompanying financial statements include only contract owners' purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company. A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans. (Continued) 8 NATIONWIDE VA SEPARATE ACCOUNT-C (NOTES TO FINANCIAL STATEMENTS, Continued) 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. (c) Security Valuation, Transactions and Related Investment Income Investments in underlying mutual funds are valued based on the closing net asset value per share at December 31, 2004 of such funds, which value their investment securities at fair value. The cost of investments sold is determined on the specific identification basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividends (which include 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 Internal Revenue Code. The Company does not provide for income taxes within the Account. Taxes are the responsibility of the contract owner upon termination or withdrawal. (e) Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with 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) Calculation of Annuity Reserves Annuity reserves are computed for contracts in the variable payout stage according to industry standard mortality tables. The assumed investment return is 3.5% unless the annuitant elects otherwise, in which case the rate may vary from 3.5% to 7%, as regulated by the laws of the respective states. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Account by the Company to cover greater longevity of annuitants than expected. Conversely, if reserves exceed amounts required, transfers may be made to the Company. (2) Expenses The Company does not deduct a sales charge from purchase payments received from the contract owners. However, if any part of the contract value of such contracts is surrendered, the Company will, with certain exceptions, deduct from a contract owners' contract value a contingent deferred sales charge not to exceed 7% of the purchase payments surrendered. This charge declines 1% per year to 0% after the purchase payment has been held in the contract for 7 years. No sales charges are deducted on redemptions used to purchase units in the fixed investment options of the Company. The Company deducts a mortality and expense risk charge, and an administration charge assessed through the daily unit value calculation equal to an annualized rate of 1.25% and 0.05%, respectively. No charges are deducted from the initial funding by the Depositor, or from earnings thereon. (Continued) 9 NATIONWIDE VA SEPARATE ACCOUNT-C (NOTES TO FINANCIAL STATEMENTS, Continued) (3) Related Party Transactions The Company performs various services on behalf of the Mutual Fund Companies in which the Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, preparation, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company. 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. The fixed account assets are not reflected in the accompanying financial statements. In addition, the Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Account at the direction of the contract owner. For the years ended December 31, 2004 and 2003, total transfers to the Account from the fixed account were $26,980,010 and $111,762,375, respectively, and total transfers from the Account to the fixed account were $10,066,091 and $23,833,351, respectively. Transfers from the Account to the fixed account are included in redemptions, and transfers to the Account from the fixed account are included in purchase payments received from contract owners, as applicable, on the accompanying Statements of Changes in Contract Owners' Equity. For guaranteed minimum death benefits, the Company contributed $440,305 and $1,002,276 to the Account in the form of additional premium to contract owner accounts for the years ended December 31, 2004 and 2003, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death, when applicable. (Continued) 10 NATIONWIDE VA SEPARATE ACCOUNT-C (NOTES TO FINANCIAL STATEMENTS, Continued) (4) Financial Highlights The following is a summary of units, unit fair values and contract owners' equity outstanding for variable annuity contracts as of December 31 for the year indicated, and the contract expense rate, investment income ratio and total return for each period in the five-year period ended December 31, 2004.
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** --------- --------- ------------ --------------- ---------- ---------- Fidelity/(R)/ VIP - Equity-Income Portfolio - Initial Class 2004 .................... 1.30% 2,747,671 $ 25.961264 $ 71,333,012 1.62% 10.08% 2003 .................... 1.30% 3,383,761 23.583981 79,802,555 1.79% 28.64% 2002 .................... 1.30% 3,900,487 18.333686 71,510,304 1.88% -18.03% 2001 .................... 1.30% 4,811,251 22.370000 107,607,203 1.77% -6.20% 2000 .................... 1.30% 5,350,442 23.843779 127,574,757 1.65% 7.02% Fidelity/(R)/ VIP - Overseas Portfolio - Initial Class 2004 .................... 1.30% 738,847 15.446324 11,412,470 1.18% 12.16% 2003 .................... 1.30% 884,944 13.771841 12,187,308 0.81% 41.51% 2002 .................... 1.30% 1,052,589 9.732257 10,244,067 0.86% -21.32% 2001 .................... 1.30% 1,255,812 12.369011 15,533,152 5.48% -22.20% 2000 .................... 1.30% 1,416,870 15.898290 22,525,810 1.55% -20.16% Gartmore GVIT Money Market Fund - Class I 2004 .................... 1.30% 616,667 12.940067 7,979,712 0.79% -0.50% 2003 .................... 1.30% 905,729 13.004981 11,778,988 0.62% -0.68% 2002 .................... 1.30% 1,659,910 13.094349 21,735,441 1.13% -0.10% 2001 .................... 1.30% 2,150,857 13.108020 28,193,477 3.64% 2.25% 2000 .................... 1.30% 1,409,975 12.819682 18,075,431 4.96% 4.66% Gartmore GVIT Nationwide/(R)/ Fund - Class I 2004 .................... 1.30% 1,859,203 21.990636 40,885,056 1.22% 8.32% 2003 .................... 1.30% 2,352,114 20.300659 47,749,464 0.54% 25.86% 2002 .................... 1.30% 2,662,106 16.129988 42,939,738 0.83% -18.43% 2001 .................... 1.30% 3,269,537 19.774203 64,652,488 0.73% -12.97% 2000 .................... 1.30% 3,689,323 22.721959 83,828,646 0.64% -3.39% One Group/(R)/ IT Balanced Portfolio 2004 .................... 1.30% 7,573,222 19.770235 149,724,379 2.31% 4.36% 2003 .................... 1.30% 8,573,075 18.944760 162,414,848 2.82% 15.68% 2002 .................... 1.30% 8,688,908 16.377273 142,300,618 0.01% -12.83% 2001 .................... 1.30% 9,913,836 18.788301 186,264,135 2.53% -4.83% 2000 .................... 1.30% 10,316,643 19.741918 203,670,320 2.97% 0.34% One Group/(R)/ IT Bond Portfolio 2004 .................... 1.30% 8,324,575 13.661786 113,728,562 5.32% 2.78% 2003 .................... 1.30% 8,356,471 13.292261 111,076,394 5.34% 2.52% 2002 .................... 1.30% 6,763,970 12.965228 87,696,413 0.02% 8.56% 2001 .................... 1.30% 5,487,493 11.942953 65,536,871 7.11% 7.53% 2000 .................... 1.30% 3,393,492 11.106864 37,691,054 6.93% 10.75% One Group/(R)/ IT Diversified Equity Portfolio 2004 .................... 1.30% 11,395,562 8.698796 99,127,669 0.73% 5.65% 2003 .................... 1.30% 12,202,863 8.233222 100,468,880 0.58% 24.30% 2002 .................... 1.30% 9,913,935 6.623910 65,669,013 0.00% -24.77% 2001 .................... 1.30% 7,618,158 8.804552 67,074,468 0.51% -11.78% 2000 .................... 1.30% 4,257,854 9.980762 42,496,627 0.47% -5.60% One Group/(R)/ IT Diversified Mid Cap Portfolio 2004 .................... 1.30% 2,805,228 14.344898 40,240,710 0.20% 12.93% 2003 .................... 1.30% 3,092,031 12.702218 39,275,652 0.18% 28.74% 2002 .................... 1.30% 2,787,156 9.866278 27,498,856 0.00% -18.88% 2001 .................... 1.30% 2,590,038 12.161916 31,499,825 0.25% -5.29% 2000 .................... 1.30% 1,704,013 12.840593 21,880,537 0.39% 17.90% One Group/(R)/ IT Equity Index Portfolio 2004 .................... 1.30% 10,494,583 10.655119 111,821,031 1.09% 8.91% 2003 .................... 1.30% 11,508,551 9.783845 112,597,879 1.02% 26.32% 2002 .................... 1.30% 10,354,233 7.745389 80,197,562 0.00% -23.49% 2001 .................... 1.30% 9,575,988 10.123309 96,940,686 0.88% -13.48% 2000 .................... 1.30% 7,735,534 11.701041 90,513,800 1.13% -10.65%
(Continued) 11 NATIONWIDE VA SEPARATE ACCOUNT-C (NOTES TO FINANCIAL STATEMENTS, Continued)
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** --------- --------- ------------ --------------- ---------- ---------- One Group/(R)/ IT Government Bond Portfolio 2004 .................... 1.30% 9,082,609 $ 17.391404 $ 157,959,322 5.04% 3.28% 2003 .................... 1.30% 10,206,873 16.838970 171,873,228 4.63% 1.21% 2002 .................... 1.30% 10,193,980 16.637997 169,607,409 0.01% 10.80% 2001 .................... 1.30% 8,667,671 15.016436 130,157,527 6.01% 5.65% 2000 .................... 1.30% 6,585,647 14.213181 93,602,993 6.08% 10.55% One Group/(R)/ IT Large Cap Growth Portfolio 2004 .................... 1.30% 7,669,959 18.364593 140,855,675 0.25% 5.66% 2003 .................... 1.30% 9,113,925 17.381329 158,412,129 0.10% 25.88% 2002 .................... 1.30% 9,560,962 13.807631 132,014,235 0.00% -29.41% 2001 .................... 1.30% 10,953,265 19.560223 214,248,306 0.00% -21.32% 2000 .................... 1.30% 11,461,570 24.860865 284,944,544 0.00% -23.95% One Group/(R)/ IT Mid Cap Growth Portfolio 2004 .................... 1.30% 5,137,175 29.688844 152,516,787 0.00% 11.16% 2003 .................... 1.30% 5,980,485 26.709240 159,734,209 0.00% 25.50% 2002 .................... 1.30% 6,088,122 21.282814 129,572,368 0.00% -21.17% 2001 .................... 1.30% 6,588,288 26.998285 177,872,477 0.00% -11.82% 2000 .................... 1.30% 6,308,189 30.617485 193,140,882 0.00% 4.42% One Group/(R)/ IT Mid Cap Value Portfolio 2004 .................... 1.30% 4,166,895 17.025281 70,942,558 0.52% 13.90% 2003 .................... 1.30% 4,701,103 14.947875 70,271,500 0.52% 31.03% 2002 .................... 1.30% 4,004,928 11.407934 45,687,954 0.00% -13.98% 2001 .................... 1.30% 3,589,252 13.262635 47,602,939 0.69% 3.43% 2000 .................... 1.30% 2,554,744 12.823112 32,759,768 1.07% 26.26% --------------- 2004 Reserves for annuity contracts in payout phase: ................ 558,950 --------------- 2004 Contract owners' equity ........................................ $ 1,169,085,893 =============== 2003 Reserves for annuity contracts in payout phase: ................ 555,109 --------------- 2003 Contract owners' equity ........................................ $ 1,238,198,143 =============== 2002 Reserves for annuity contracts in payout phase: ................ 466,286 --------------- 2002 Contract owners' equity ........................................ $ 1,027,140,264 =============== 2001 Reserves for annuity contracts in payout phase: ................ 628,875 =============== 2001 Contract owners' equity ........................................ $ 1,233,812,429 =============== 2000 Reserves for annuity contracts in payout phase: ................ 735,497 --------------- 2000 Contract owners' equity ........................................ $ 1,253,440,666 ===============
* This represents the annual contract expense rate of the variable account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units. ** This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions to the contractholder accounts either through reductions in unit values or redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. *** This represents the total return for the period indicated and includes a deduction only for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. 12 Report of Independent Registered Public Accounting Firm The Board of Directors of Nationwide Life and Annuity Insurance Company and Contract Owners of Nationwide VA Separate Account-C: We have audited the accompanying statement of assets, liabilities and contract owners' equity of Nationwide VA Separate Account-C (comprised of the sub-accounts listed in note 1(b)) (collectively, "the Account") as of December 31, 2004, and the related statements of operations and changes in contract owners' equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2004, 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 Account as of December 31, 2004, and the results of its operations, changes in contract owners' equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles. KPMG LLP Columbus, Ohio March 4, 2005 13 NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY PRSRT STD HOME OFFICE: ONE NATIONWIDE PLAZA . COLUMBUS, OHIO 43215-2220 U.S. POSTAGE PAID NATIONWIDE Nationwide/(R)/ is a registered federal service mark of Nationwide Mutual Insurance Company -----END PRIVACY-ENHANCED MESSAGE-----