N-30D 1 d518439dn30d.htm VA SEP ACCT C_811-07908 VA Sep Acct C_811-07908

NATIONWIDE

VA SEPARATE

ACCOUNT-C

Annual Report

to

Contract Owners

December 31, 2017

 

LOGO

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.