NATIONWIDE

VA SEPARATE

ACCOUNT-C

Annual Report

to

Contract Owners

December 31, 2017

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 VA Separate Account-C:

Opinion on the Financial Statements

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 the Appendix, (collectively, “the Accounts”)), as of December 31, 2017, and the related statements of operations for the year or period then ended indicated in the Appendix, the statements of changes in contract owners’ equity for each of the years or periods in the two-year period then ended indicated in the Appendix, and the related notes (collectively, the “financial statements”) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Accounts as of December 31, 2017, the results of their operations for the year or period then ended, the changes in contract owners’ equity for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2017, by correspondence with the transfer agents of the underlying mutual funds or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have not been able to determine the specific year that we began serving as the auditor of one or more Nationwide Life Insurance Company and subsidiaries separate account investment companies, however we are aware that we have served as the auditor of one or more Nationwide Life Insurance Company and subsidiaries separate account investment companies since at least 1981.

Columbus, Ohio

March 16, 2018

Appendix

We have audited the following sub-accounts’ Statements of Operations and Statements of Changes in Contract Owners’ Equity for the periods indicated.

Sub-account	Financial Statement	Period
Nationwide Funds Group NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
	Statement of Operations	Year ended December 31, 2017
	Statements of Changes in Contract Owners’ Equity	January 14, 2016 to December 31, 2016 and the year ended December 31, 2017

We have audited the following sub-accounts’ Statements of Operations for the year ended December 31, 2017 and Statements of Changes in Contract Owners’ Equity for each of the years in the two-year period ended December 31, 2017.

FIDELITY INVESTMENTS

  Equity-Income Portfolio - Initial Class (FEIP)

  VIP Overseas Portfolio - Initial Class (FOP)

J.P. MORGAN INVESTMENT MANAGEMENT INC.

  Mid Cap Value Portfolio: Class 1 (JPMMV1)

  Insurance Trust Core Bond Portfolio: Class 1 (OGBDP)

  Insurance Trust U.S. Equity Portfolio: Class 1 (OGDEP)

NATIONWIDE FUNDS GROUP

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

  NVIT Cardinal Balanced Fund - Class II (NVCRB2)

  NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)

  NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)

  NVIT Nationwide Fund - Class I (TRF)

  NVIT Money Market Fund - Class I (SAM)

  NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)

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

  NVIT S&P 500 Index Fund Class II (GVEX2)

NATIONWIDE VA SEPARATE ACCOUNT-C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2017

Assets:
Investments at fair value:
Equity-Income Portfolio - Initial Class (FEIP)
538,428 shares (cost $11,132,869)	$	12,863,052
VIP Overseas Portfolio - Initial Class (FOP)
101,899 shares (cost $1,691,271)		2,330,437
Mid Cap Value Portfolio: Class 1 (JPMMV1)
335,303 shares (cost $3,672,899)		3,966,639
Insurance Trust Core Bond Portfolio: Class 1 (OGBDP)
2,425,179 shares (cost $26,635,806)		26,531,462
Insurance Trust U.S. Equity Portfolio: Class 1 (OGDEP)
597,277 shares (cost $11,212,956)		19,369,695
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II (NVIE6)
30,557 shares (cost $322,909)		357,828
NVIT Cardinal Balanced Fund - Class II (NVCRB2)
71,771 shares (cost $810,518)		813,163
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)
77,470 shares (cost $854,831)		852,943
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)
73,420 shares (cost $709,899)		720,251
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
6,837 shares (cost $74,249)		74,384
NVIT Nationwide Fund - Class I (TRF)
548,179 shares (cost $7,468,623)		10,475,697
NVIT Money Market Fund - Class I (SAM)
36,766,363 shares (cost $36,766,363)		36,766,363
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)
64,709 shares (cost $703,754)		764,859
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)
34,874 shares (cost $390,303)		395,824
NVIT S&P 500 Index Fund Class II (GVEX2)
55,421 shares (cost $891,193)		967,645
Total Investments	$	117,250,242
Other Accounts Receivable		49
Accounts Receivable - Equity-Income Portfolio - Initial Class (FEIP)		1,301
Accounts Receivable - VIP Overseas Portfolio - Initial Class (FOP)		683
Accounts Receivable - Insurance Trust Core Bond Portfolio: Class 1 (OGBDP)		114
Accounts Receivable - NVIT Nationwide Fund - Class I (TRF)		885
Accounts Receivable - NVIT Money Market Fund - Class I (SAM)		631
	$	117,253,905
Contract Owners’ Equity:
Accumulation units		116,624,129
Contracts in payout (annuitization) period (note 1f)		629,776
Total Contract Owners’ Equity (note 5)	$	117,253,905

See accompanying notes to financial statements.

NATIONWIDE VA SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2017

Investment Activity:	Total			FEIP			FOP			JPMMV1			OGBDP			OGDEP			NVIE6			NVCRB2
Reinvested dividends	$	1,509,818			212,304			30,820			31,107			744,582			172,913			5,075			14,730
Mortality and expense risk charges (note 2)		(1,570,790	)		(167,524	)		(28,475	)		(47,353	)		(375,115	)		(253,579	)		(2,923	)		(6,713	)
Net investment income (loss)		(60,972	)		44,780			2,345			(16,246	)		369,467			(80,666	)		2,152			8,017
Realized gain (loss) on investments		4,950,463			(89,075	)		(3,654	)		189,098			262,923			2,050,415			3,157			1,398
Change in unrealized gain (loss) on investments		3,298,654			1,166,178			535,793			79,600			17,701			1,497,418			35,489			5,263
Net gain (loss) on investments		8,249,117			1,077,103			532,139			268,698			280,624			3,547,833			38,646			6,661
Reinvested capital gains		806,466			263,322			2,012			173,480			-			194,335			-			36,708
Net increase (decrease) in contract owners’ equity resulting from operations	$	8,994,611			1,385,205			536,496			425,932			650,091			3,661,502			40,798			51,386
Investment Activity:	NVCCA2			NVCMA2			NVCMC2			TRF			SAM			NVMMG2			NVMMV2			GVEX2
Reinvested dividends	$	12,170			9,403			1,171			100,944			157,125			-			4,025			13,449
Mortality and expense risk charges (note 2)		(5,132	)		(4,505	)		(546	)		(131,466	)		(476,356	)		(5,823	)		(3,237	)		(6,929	)
Net investment income (loss)		7,038			4,898			625			(30,522	)		(319,231	)		(5,823	)		788			6,520
Realized gain (loss) on investments		(3,977	)		820			38			732,866			-			1,717			2,173			3,941
Change in unrealized gain (loss) on investments		18,471			10,424			133			1,042,552			-			64,324			5,654			70,032
Net gain (loss) on investments		14,494			11,244			171			1,775,418			-			66,041			7,827			73,973
Reinvested capital gains		29,360			36,136			2,474			-			-			34,195			18,638			15,806
Net increase (decrease) in contract owners’ equity resulting from operations	$	50,892			52,278			3,270			1,744,896			(319,231	)		94,413			27,253			96,299

NATIONWIDE VA SEPARATE ACCOUNT-C

STATEMENT OF OPERATIONS

Year Ended December 31, 2017

Investment Activity:	OGDMP
Reinvested dividends	$	-
Mortality and expense risk charges (note 2)		(55,114	)
Net investment income (loss)		(55,114	)
Realized gain (loss) on investments		1,798,623
Change in unrealized gain (loss) on investments		(1,250,378	)
Net gain (loss) on investments		548,245
Reinvested capital gains		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	493,131

See accompanying notes to financial statements.

NATIONWIDE VA SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2017 and 2016

	Total						FEIP						FOP						JPMMV1
	2017			2016			2017			2016			2017			2016			2017			2016
Investment activity:
Net investment income (loss)	$	(60,972	)		(13,655	)		44,780			118,989			2,345			1,383			(16,246	)		(13,140	)
Realized gain (loss) on investments		4,950,463			1,779,777			(89,075	)		(305,326	)		(3,654	)		(34,113	)		189,098			220,016
Change in unrealized gain (loss) on investments		3,298,654			1,099,171			1,166,178			1,253,109			535,793			(119,427	)		79,600			3,227
Reinvested capital gains		806,466			2,785,398			263,322			778,868			2,012			3,535			173,480			157,252
Net increase (decrease) in contract owners’ equity resulting from operations		8,994,611			5,650,691			1,385,205			1,845,640			536,496			(148,622	)		425,932			367,355
Equity transactions:
Purchase payments received from contract owners (note 3)		1,187,018			651,415			41,896			30,000			25,203			2,633			18,726			54,660
Transfers between funds		-			-			(299,258	)		36,225			(83,947	)		(115,510	)		912,069			(22,031	)
Redemptions (note 3)		(16,256,769	)		(13,990,934	)		(1,091,079	)		(1,192,305	)		(148,969	)		(179,396	)		(431,560	)		(440,619	)
Annuity benefits		(101,216	)		(93,609	)		(42,892	)		(37,313	)		(10,325	)		(10,216	)		-			-
Contingent deferred sales charges (note 2)		(3,563	)		(1,850	)		-			-			-			-			(3	)		-
Adjustments to maintain reserves		34,317			27,971			10,631			8,630			7,113			4,239			(7	)		(22	)
Net equity transactions		(15,140,213	)		(13,407,007	)		(1,380,702	)		(1,154,763	)		(210,925	)		(298,250	)		499,225			(408,012	)
Net change in contract owners’ equity		(6,145,602	)		(7,756,316	)		4,503			690,877			325,571			(446,872	)		925,157			(40,657	)
Contract owners’ equity beginning of period		123,399,507			131,155,823			12,859,850			12,168,973			2,005,549			2,452,421			3,041,477			3,082,134
Contract owners’ equity end of period	$	117,253,905			123,399,507			12,864,353			12,859,850			2,331,120			2,005,549			3,966,634			3,041,477
CHANGES IN UNITS:
Beginning units		6,346,414			7,064,173			273,654			301,425			93,998			107,860			98,631			113,151
Units purchased		1,467,069			158,664			1,826			2,937			1,404			253			37,597			2,528
Units redeemed		(1,652,505	)		(876,423	)		(29,626	)		(30,708	)		(10,462	)		(14,115	)		(21,674	)		(17,048	)
Ending units		6,160,978			6,346,414			245,854			273,654			84,940			93,998			114,554			98,631

NATIONWIDE VA SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2017 and 2016

	OGBDP						OGDEP						NVIE6						NVCRB2
	2017			2016			2017			2016			2017			2016			2017			2016
Investment activity:
Net investment income (loss)	$	369,467			459,176			(80,666	)		(58,210	)		2,152			81			8,017			2,794
Realized gain (loss) on investments		262,923			277,503			2,050,415			840,690			3,157			(56	)		1,398			(1,078	)
Change in unrealized gain (loss) on investments		17,701			(414,747	)		1,497,418			251,012			35,489			198			5,263			(1,501	)
Reinvested capital gains		-			-			194,335			654,480			-			-			36,708			5,982
Net increase (decrease) in contract owners’ equity resulting from operations		650,091			321,932			3,661,502			1,687,972			40,798			223			51,386			6,197
Equity transactions:
Purchase payments received from contract owners (note 3)		58,190			65,914			21,830			59,427			301			19,036			113			-
Transfers between funds		(971,947	)		(274,458	)		(1,381,393	)		17,107			313,059			28,356			641,809			144,194
Redemptions (note 3)		(3,522,153	)		(3,249,380	)		(2,228,760	)		(1,766,125	)		(7,371	)		(42,212	)		(43,959	)		(17,908	)
Annuity benefits		(9,148	)		(9,504	)		(2,901	)		(2,518	)		-			-			-			-
Contingent deferred sales charges (note 2)		(1,092	)		(813	)		(762	)		(295	)		(3	)		-			-			(7	)
Adjustments to maintain reserves		1,273			1,067			1,136			728			(8	)		(15	)		(15	)		(10	)
Net equity transactions		(4,444,877	)		(3,467,174	)		(3,590,850	)		(1,691,676	)		305,978			5,165			597,948			126,269
Net change in contract owners’ equity		(3,794,786	)		(3,145,242	)		70,652			(3,704	)		346,776			5,388			649,334			132,466
Contract owners’ equity beginning of period		30,326,362			33,471,604			19,299,113			19,302,817			11,043			5,655			163,819			31,353
Contract owners’ equity end of period	$	26,531,576			30,326,362			19,369,765			19,299,113			357,819			11,043			813,153			163,819
CHANGES IN UNITS:
Beginning units		1,559,708			1,735,026			995,293			1,090,073			1,263			642			16,433			3,293
Units purchased		39,558			21,647			35,910			17,849			33,965			5,803			62,385			14,939
Units redeemed		(264,538	)		(196,965	)		(204,011	)		(112,629	)		(2,624	)		(5,182	)		(5,065	)		(1,799	)
Ending units		1,334,728			1,559,708			827,192			995,293			32,604			1,263			73,753			16,433

NATIONWIDE VA SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2017 and 2016

	NVCCA2						NVCMA2						NVCMC2						TRF
	2017			2016			2017			2016			2017			2016			2017			2016
Investment activity:
Net investment income (loss)	$	7,038			1,834			4,898			20			625			129			(30,522	)		9,245
Realized gain (loss) on investments		(3,977	)		(1,373	)		820			(1	)		38			7			732,866			520,478
Change in unrealized gain (loss) on investments		18,471			(3,214	)		10,424			(51	)		133			2			1,042,552			362,843
Reinvested capital gains		29,360			10,110			36,136			119			2,474			344			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		50,892			7,357			52,278			87			3,270			482			1,744,896			892,566
Equity transactions:
Purchase payments received from contract owners (note 3)		-			-			-			-			-			-			58,980			51,462
Transfers between funds		700,093			7,913			685,449			-			81,340			8,301			(36,613	)		(65,088	)
Redemptions (note 3)		(26,790	)		(5,385	)		(18,946	)		-			(18,816	)		(187	)		(1,045,495	)		(1,215,560	)
Annuity benefits		-			-			-			-			-			-			(19,333	)		(16,819	)
Contingent deferred sales charges (note 2)		-			-			-			-			-			-			(1	)		(39	)
Adjustments to maintain reserves		(4	)		(3	)		(5	)		(1	)		(6	)		-			9,596			6,941
Net equity transactions		673,299			2,525			666,498			(1	)		62,518			8,114			(1,032,866	)		(1,239,103	)
Net change in contract owners’ equity		724,191			9,882			718,776			86			65,788			8,596			712,030			(346,537	)
Contract owners’ equity beginning of period		128,754			118,872			1,470			1,384			8,596			-			9,764,552			10,111,089
Contract owners’ equity end of period	$	852,945			128,754			720,246			1,470			74,384			8,596			10,476,582			9,764,552
CHANGES IN UNITS:
Beginning units		12,910			12,626			148			148			859			-			244,928			278,925
Units purchased		64,385			831			63,877			-			7,799			878			3,544			1,720
Units redeemed		(2,474	)		(547	)		(1,789	)		-			(1,805	)		(19	)		(27,554	)		(35,717	)
Ending units		74,821			12,910			62,236			148			6,853			859			220,918			244,928

NATIONWIDE VA SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2017 and 2016

	SAM						NVMMG2						NVMMV2						GVEX2
	2017			2016			2017			2016			2017			2016			2017			2016
Investment activity:
Net investment income (loss)	$	(319,231	)		(473,050	)		(5,823	)		(145	)		788			144			6,520			938
Realized gain (loss) on investments		-			-			1,717			(50	)		2,173			(22	)		3,941			(36	)
Change in unrealized gain (loss) on investments		-			-			64,324			(642	)		5,654			975			70,032			9,510
Reinvested capital gains		-			705			34,195			1,415			18,638			725			15,806			2,239
Net increase (decrease) in contract owners’ equity resulting from operations		(319,231	)		(472,345	)		94,413			578			27,253			1,822			96,299			12,651
Equity transactions:
Purchase payments received from contract owners (note 3)		960,088			333,437			7,898			-			-			-			-			-
Transfers between funds		8,862,481			49,577			671,132			1,148			347,022			19,063			715,679			45,112
Redemptions (note 3)		(6,916,597	)		(4,877,866	)		(21,013	)		-			(6,991	)		-			(3,383	)		-
Annuity benefits		(15,997	)		(15,871	)		-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(1,402	)		(552	)		(3	)		-			-			-			-			-
Adjustments to maintain reserves		10,142			6,050			(10	)		(9	)		(2	)		-			(1	)		(6	)
Net equity transactions		2,898,715			(4,505,225	)		658,004			1,139			340,029			19,063			712,295			45,106
Net change in contract owners’ equity		2,579,484			(4,977,570	)		752,417			1,717			367,282			20,885			808,594			57,757
Contract owners’ equity beginning of period		34,187,510			39,165,080			12,440			10,723			28,550			7,665			159,051			101,294
Contract owners’ equity end of period	$	36,766,994			34,187,510			764,857			12,440			395,832			28,550			967,645			159,051
CHANGES IN UNITS:
Beginning units		2,683,139			3,034,555			1,290			1,163			2,609			813			14,872			10,415
Units purchased		951,531			72,134			65,862			127			34,475			1,796			62,508			4,473
Units redeemed		(722,969	)		(423,550	)		(4,138	)		-			(4,892	)		-			(1,762	)		(16	)
Ending units		2,911,701			2,683,139			63,014			1,290			32,192			2,609			75,618			14,872

NATIONWIDE VA SEPARATE ACCOUNT-C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2017 and 2016

	OGDMP
	2017			2016
Investment activity:
Net investment income (loss)	$	(55,114	)		(63,843	)
Realized gain (loss) on investments		1,798,623			263,138
Change in unrealized gain (loss) on investments		(1,250,378	)		(242,123	)
Reinvested capital gains		-			1,169,624
Net increase (decrease) in contract owners’ equity resulting from operations		493,131			1,126,796
Equity transactions:
Purchase payments received from contract owners (note 3)		(6,207	)		34,846
Transfers between funds		(11,156,975	)		120,091
Redemptions (note 3)		(724,887	)		(1,003,991	)
Annuity benefits		(620	)		(1,368	)
Contingent deferred sales charges (note 2)		(297	)		(144	)
Adjustments to maintain reserves		(5,516	)		382
Net equity transactions		(11,894,502	)		(850,184	)
Net change in contract owners’ equity		(11,401,371	)		276,612
Contract owners’ equity beginning of period		11,401,371			11,124,759
Contract owners’ equity end of period	$	-			11,401,371
CHANGES IN UNITS:
Beginning units		346,679			374,058
Units purchased		443			10,749
Units redeemed		(347,122	)		(38,128	)
Ending units		-			346,679

See accompanying notes to financial statements.

NATIONWIDE VA SEPARATE ACCOUNT-C

NOTES TO FINANCIAL STATEMENTS

December 31, 2017

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VA Separate Account-C (the Separate 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 Separate Account is registered as a unit investment trust under the Investment Company Act of 1940. The Separate Account is an Investment Company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946, Financial Services - Investment Companies.

(b) The Contracts

The Separate Account offers variable annuity insurance benefits intended to serve the long-term saving needs of investors. Contract features are described in the applicable prospectus.

With certain exceptions, contract owners in either the accumulation or the payout phase may invest in any of the following funds:

FIDELITY INVESTMENTS

Equity-Income Portfolio - Initial Class (FEIP)

VIP Overseas Portfolio - Initial Class (FOP)

J.P. MORGAN INVESTMENT MANAGEMENT INC.

Mid Cap Value Portfolio: Class 1 (JPMMV1)

Insurance Trust Core Bond Portfolio: Class 1 (OGBDP)

Insurance Trust U.S. Equity Portfolio: Class 1 (OGDEP)

NATIONWIDE FUNDS GROUP

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

NVIT Cardinal Balanced Fund - Class II (NVCRB2)

NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)

NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)

NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)

NVIT Nationwide Fund - Class I (TRF)

NVIT Money Market Fund - Class I (SAM)

NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)

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

NVIT S&P 500 Index Fund Class II (GVEX2)

* At December 31, 2017, 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 contract expenses (see note 2). The accompanying financial statements include only contract owners’ purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company.

A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

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

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 subaccount and/or the fixed account as instructed by the contract owner. Shares of the subaccount 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, 2017 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 Separate 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 Separate Account. Taxes are generally the responsibility of the contract owner upon termination or withdrawal.

NATIONWIDE VA SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS 

(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

At each financial reporting date, the separate account financial statement includes an aggregate amount of net assets allocated to future contract benefits for the contracts in the payout (annuitization) period. The payout (annuitization) period begins when amounts accumulated under the contract (the contract value) are applied according to payment method selected by the contract owner.

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 Separate 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.

(g) Recently Issued Accounting Standards

There are no recently issued accounting standards applicable to the Separate Account.

(h) Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued with the Securities and Exchange Commission, and no subsequent events have occurred requiring accrual or disclosure.

(i) Securities and Exchange Commission Regulations

On October 13, 2016, the Securities and Exchange Commission amended Regulation S-X, which requires standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X was August 1, 2017. Management has incorporated the changes necessary to the financial statements and disclosures.

(2) Expenses

The Separate Account assesses charges associated with the contract. These charges are either assessed as a direct reduction in unit values or through a redemption of units from the subaccounts contained within the Separate Account. The assessment of charges varies based on the contract and any additional riders or benefits elected. The additional riders or benefits and related charges specific to each contract are described in detail in the applicable prospectus. The maximum variable account charge for contracts offered through the Separate Account is 1.30%.

Contract Charges
Recurring Variable Account Charges - assessed through a reduction in unit values	Equal, on an annualized basis, to 1.30% of the daily value of the allocations to the underlying fund options
Contingent Deferred Sales Charge - assessed on the amount of purchase payment surrendered	0.00% - 7.00%
Maximum Contingent Deferred Sales Charge Period	7 years

(3) Related Party Transactions

The Company performs various services on behalf of the mutual fund companies in which the Separate 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 Separate 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 Separate Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Separate Account at the direction of the contract owner. For the years ended December 31, 2017 and 2016, total transfers to the Separate Account from the fixed account were $31,420 and $96,387, respectively, and total transfers from the Separate Account to the fixed account were $2,175,059 and $2,062,733, respectively. Transfers from the Separate Account to the fixed account are included in redemptions, and transfers to the Separate 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 $56,282 and $1,160 to the Separate Account in the form of additional premium to contract owner accounts for the years ended December 31, 2017 and 2016, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death.

NATIONWIDE VA SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS 

(4) Fair Value Measurement

FASB ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Separate Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Separate Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs.

In accordance with FASB ASC 820, the Separate 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 Separate 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 Separate Account recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between Level 1 and 2 as of December 31, 2017.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2017:

	Level 1		Level 2		Level 3		Total
Separate Account Investments	$	117,250,242	$	-	$	-	$	117,250,242

The cost of purchases and proceeds from sales of Investments for the year ended December 31, 2017 are as follows:

	Purchase of Investments		Sales of Investments
Equity-Income Portfolio - Initial Class (FEIP)	$	562,689	$	1,626,287
VIP Overseas Portfolio - Initial Class (FOP)		79,071		280,941
Mid Cap Value Portfolio: Class 1 (JPMMV1)		1,230,644		574,195
Insurance Trust Core Bond Portfolio: Class 1 (OGBDP)		883,767		4,957,977
Insurance Trust U.S. Equity Portfolio: Class 1 (OGDEP)		664,318		4,140,695
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II (NVIE6)		338,171		30,044
NVIT Cardinal Balanced Fund - Class II (NVCRB2)		676,601		33,924
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)		741,117		31,428
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)		730,844		23,306
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)		66,358		741
NVIT Nationwide Fund - Class I (TRF)		198,062		1,253,818
NVIT Money Market Fund - Class I (SAM)		9,492,621		6,905,776
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)		737,034		50,662
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)		418,583		59,136
NVIT S&P 500 Index Fund Class II (GVEX2)		761,883		27,274
Insurance Trust Intrepid Mid Cap Portfolio: Class 1 (obsolete) (OGDMP)		873		11,950,054
	$	17,582,636	$	31,946,258

(5) Financial Highlights

The following tabular presentation is a summary of units, unit fair values, Contract Owners’ Equity outstanding and contract expense rates for variable annuity contracts as of December 31, 2017, and the investment income ratio and total return for each of the periods in the five year period ended December 31, 2017. Total return and investment income ratio for periods with no ending Contract Owners’ Equity were considered to be irrelevant, and therefore are not presented. Contract Owners’ Equity presented below may not agree to the Contract Owners’ Equity presented in the Statements of Changes due to reserves for annuity contracts in payout.

NATIONWIDE VA SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS 

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
Equity-Income Portfolio - Initial Class (FEIP)
2017		1.30%		245,854	$	51.37	$	12,629,254		1.65%		11.43%
2016		1.30%		273,654		46.10		12,615,255		2.28%		16.49%
2015		1.30%		301,425		39.57		11,928,691		3.10%		-5.21%
2014		1.30%		330,381		41.75		13,793,675		3.23%		7.30%
2013		1.30%		299,638		38.91		11,658,494		2.44%		26.48%
VIP Overseas Portfolio - Initial Class (FOP)
2017		1.30%		84,940		26.56		2,256,421		1.41%		28.60%
2016		1.30%		93,998		20.66		1,941,762		1.36%		-6.29%
2015		1.30%		107,860		22.04		2,377,766		1.34%		2.28%
2014		1.30%		115,758		21.55		2,495,054		1.33%		-9.27%
2013		1.30%		121,662		23.76		2,890,311		1.22%		28.74%
Mid Cap Value Portfolio: Class 1 (JPMMV1)
2017		1.30%		114,554		34.63		3,966,634		0.86%		12.29%
2016		1.30%		98,631		30.84		3,041,477		0.87%		13.21%
2015		1.30%		113,151		27.24		3,082,134		1.01%		-3.92%
2014		1.30%		121,914		28.35		3,456,347		0.72%		13.61%
2013		1.30%		86,097		24.95		2,148,484		1.08%		30.58%
Insurance Trust Core Bond Portfolio: Class 1 (OGBDP)
2017		1.30%		1,334,728		19.84		26,476,615		2.59%		2.23%
2016		1.30%		1,559,708		19.40		30,264,792		2.71%		0.79%
2015		1.30%		1,735,026		19.25		33,402,318		3.64%		-0.20%
2014		1.30%		1,976,820		19.29		38,131,712		3.87%		3.55%
2013		1.30%		2,297,496		18.63		42,796,436		4.63%		-2.75%
Insurance Trust U.S. Equity Portfolio: Class 1 (OGDEP)
2017		1.30%		827,192		23.38		19,341,984		0.89%		20.74%
2016		1.30%		995,293		19.37		19,274,245		0.99%		9.50%
2015		1.30%		1,090,073		17.69		19,278,257		1.14%		-0.45%
2014		1.30%		1,276,247		17.76		22,672,147		0.90%		12.42%
2013		1.30%		1,287,846		15.80		20,350,433		1.30%		34.45%
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II (NVIE6)
2017		1.30%		32,604		10.98		357,819		2.26%		25.43%
2016		1.30%		1,263		8.75		11,043		2.07%		-0.67%
2015		1.30%		642		8.81		5,655		0.30%		-11.91%	****
NVIT Cardinal Balanced Fund - Class II (NVCRB2)
2017		1.30%		73,753		11.03		813,153		2.85%		10.60%
2016		1.30%		16,433		9.97		163,819		4.42%		4.73%
2015		1.30%		3,293		9.52		31,353		3.68%		-4.82%	****
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)
2017		1.30%		74,821		11.40		852,945		3.05%		14.30%
2016		1.30%		12,910		9.97		128,754		2.76%		5.93%
2015		1.30%		12,626		9.41		118,872		3.10%		-5.85%	****
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)
2017		1.30%		62,236		11.57		720,246		2.66%		16.54%
2016		1.30%		148		9.93		1,470		2.65%		6.20%
2015		1.30%		148		9.35		1,384		0.94%		-6.49%	****
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
2017		1.30%		6,853		10.85		74,384		2.81%		8.46%
2016		1.30%		859		10.01		8,596		2.93%		4.62%
NVIT Nationwide Fund - Class I (TRF)
2017		1.30%		220,918		46.86		10,352,649		1.00%		18.96%
2016		1.30%		244,928		39.39		9,648,366		1.39%		9.94%
2015		1.30%		278,925		35.83		9,993,728		1.20%		-0.38%
2014		1.30%		289,402		35.96		10,408,332		1.47%		10.69%
2013		1.30%		166,971		32.49		5,425,128		1.26%		29.40%

NATIONWIDE VA SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS 

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***
NVIT Money Market Fund - Class I (SAM)
2017		1.30%		2,911,701	$	12.59	$	36,653,691		0.43%		-0.88%
2016		1.30%		2,683,139		12.70		34,076,530		0.01%		-1.29%
2015		1.30%		3,034,555		12.87		39,042,831		0.00%		-1.30%
2014		1.30%		3,913,202		13.04		51,010,680		0.00%		-1.30%
2013		1.30%		537,472		13.21		7,098,529		0.00%		-1.30%
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)
2017		1.30%		63,014		12.14		764,857		0.00%		25.87%
2016		1.30%		1,290		9.64		12,440		0.00%		4.68%
2015		1.30%		1,163		9.21		10,723		0.00%		-7.88%	****
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)
2017		1.30%		32,192		12.30		395,832		1.62%		12.36%
2016		1.30%		2,609		10.94		28,550		2.45%		16.07%
2015		1.30%		813		9.43		7,665		1.22%		-5.72%	****
NVIT S&P 500 Index Fund Class II (GVEX2)
2017		1.30%		75,618		12.80		967,645		2.47%		19.65%
2016		1.30%		14,872		10.69		159,051		2.06%		9.95%
2015		1.30%		10,415		9.73		101,294		3.75%		-2.73%	****
Insurance Trust Intrepid Mid Cap Portfolio: Class 1 (obsolete) (OGDMP)
2016		1.30%		346,679		32.85		11,386,694		0.72%		10.58%
2015		1.30%		374,058		29.70		11,110,479		0.66%		-7.10%
2014		1.30%		436,300		31.97		13,948,939		0.62%		14.36%
2013		1.30%		476,115		27.96		13,310,921		1.10%		38.76%
Mid Cap Growth Portfolio- Class 1 (obsolete) (OGGO)
2013		1.30%		490,178		60.40		29,604,366		0.06%		41.44%
Insurance Trust Equity Index Portfolio: Class 1 (obsolete) (OGEI)
2013		1.30%		1,308,732		16.89		22,105,122		1.96%		30.10%
Intrepid Growth Portfolio- Class 1 (obsolete) (OGLG)
2013		1.30%		724,004		30.44		22,035,844		1.08%		32.72%
2017		Reserves for annuity contracts in payout phase:							$	629,776
2017		Contract Owners’ Equity:							$	117,253,905
2016		Reserves for annuity contracts in payout phase:							$	636,663
2016		Contract Owners’ Equity:							$	123,399,507
2015		Reserves for annuity contracts in payout phase:							$	662,673
2015		Contract Owners’ Equity:							$	131,155,823
2014		Reserves for annuity contracts in payout phase:							$	753,289
2014		Contract Owners’ Equity:							$	156,670,175
2013		Reserves for annuity contracts in payout phase:							$	784,876
2013		Contract owners equity:							$	180,208,944

* 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 owner accounts through the redemption of units.

** This represents the ratio of dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by monthly average net assets (excluding months where net assets are zero). The investment income ratio for subaccounts initially funded during the period presented has not been annualized. The ratios exclude those expenses that result in direct reductions to the contract owner accounts through reductions in unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.

*** This represents the 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 was initially added and funded.

**** Subaccounts denoted indicate the underlying mutual fund option was initially added and funded during the period presented. Prior period presentation, which indicated the date the underlying mutual fund was initially added and funded, has been updated to conform with current period presentation.